Chapter 4

CHAPTER FOUR
MOTIVATION
4.1 What is Motivation?
 Motivation is state of mind, desire, energy or
interest that translates into action.
 Motivation is inner drive that directs a person’s
behavior toward goals.
 Motivation is the processes that account for an
individual’s intensity, direction and persistence of
effort toward attaining a goal.
Key Elements
Intensity: how hard a person tries
Concerned with how hard a person tries. This is the
element most of us focus on when we talk about
motivation.
• Direction: toward beneficial goal to the
organization
• Persistence: how long a person tries
 Is a measure of how long a person can maintain
his/her effort.
4.2. Early Theories of Motivation
1. Hierarchy of Needs Theory
• Abraham Maslow's hierarchy of needs
Self-actualization Needs
(self-development, realization)
Esteem Needs
(self-esteem, recognition, status)
Social Needs
(sense of belonging, love)
Safety Needs
(Security, Protection)
Physiological Needs
(Hunger, Thirst, Shelter)
Assumptions on Hierarchy of Needs
 Once a need is satisfied, its role declines

 Needs are complex, with multiple needs acting
simultaneously
 Lower level needs must be satisfied before higher
level needs are activated
 Lower level needs are predominantly satisfied externally (by such
things as pay, union contracts, and tenure).
 Higher level need are satisfied internally (within the
person)
 N.B: Need hierarchy as a theory continues to receive
little empirical support
2. McGregor’s: Theory X and Theory Y
 Under Theory X, the four assumptions held by

managers are:
– Employees inherently dislike work and, whenever
possible, will attempt to avoid it.
– Since employees dislike work, they must be
coerced, controlled, or threatened with
punishment to achieve goals.
– Employees will avoid responsibilities and seek
formal direction whenever possible.
– Most workers place security above all other factors
associated with work and will display little ambition.
Cont…
• Under Theory Y, the four assumptions held by

managers are:
– Employees can view work as being as natural as rest or
play.
– People will exercise self-direction and self-control if
they are committed to the objectives.
– The average person can learn to accept, even seek,
responsibility.
– The ability to make innovative decisions is widely
dispersed throughout the population and is not necessarily
the sole province of those in management positions.
Motivational Implications if you accept
McGregor's Analysis
• Theory X assumes that lower-order needs dominate
individuals.
• Theory Y assumes that higher-order needs dominate
individuals.
• He belief that Theory Y assumptions were more valid than
Theory X.
• To maximize an employee's job motivation he proposed such
ideas as;
– Participative decision making
– Responsible and challenging jobs and
– Good group relations
• However there is no evidence to confirm that either set of
assumptions is valid.
3. Two-Factor Theory
• Sometimes also called motivation-hygiene theory
• It was proposed by psychologist Frederick Herzberg
• Hygiene factors such as company policy and
administration, supervision, and salary that, when
adequate in a job, placate workers.
– When these factors are adequate, people will not be
dissatisfied.
• Motivators such as promotional opportunities,
opportunities for personal growth, recognition,
responsibility, and achievement.
– These are the characteristics that people find motivating
and intrinsically rewarding.
 View of Satisfaction and
Dissatisfaction
4.3 Contemporary Theories
of Motivation
1. Alderfer’s ERG Theory
 A three-level hierarchical need theory of motivation that
allows for movement up and down the hierarchy.
 Existence Needs -concerned with providing our basic
material existence requirements
 Physiological and safety needs of Maslow’s hierarchy
 Relatedness Needs - the desire we have for maintaining
important interpersonal relationships
 Match with Maslow's social need and the external
component of Maslow's esteem classification
 Growth Needs - an intrinsic desire for personal development
 Include the intrinsic component from Maslow's esteem
category and the characteristics included under self-
actualization.
ERG Theory Vs Maslow’s Hierarchy of
Needs
• In contrast to the hierarchy of needs theory,
the ERG theory demonstrates that ;
– More than one need may be operative at the

same time, and
– Frustration in attempting to satisfy a higher- level

need can result in regression to a lower-level
need.
2. McClelland's Theory of Needs
 The theory focuses on three needs:
achievement, power, and affiliation.
1. Need for Achievement - the desire to do
something better or more efficiently, to
solve problems, or to master complex
tasks.
– High need for achievement people:
• Prefer individual responsibilities
• Prefer challenging goals
• Prefer performance feedback
Cont…
2. Need for Power - the desire to control others, to
influence their behavior, or to be responsible for
others.
– High need for power people:
• Seek influence over others
• Like attention
• Like recognition
Cont…
3. Need for Affiliation - the desire to establish and maintain

friendly and warm relations with others.
– High need for affiliation people:
• Are drawn to interpersonal relationships

• Seek opportunities for communication
• Class Activities
• How high achievers can be motivated?
• Why high achievers cannot necessarily be good
managers?
3. Goal-Setting Theory
• A motivational technique that uses specific, challenging and
acceptable goals and provides feedback to enhance
performance.
• Specific and difficult goals lead to higher performance
than “do your best” goals.
– Direct behavior, increase effort and persistence.
• Factors influence the goals - performance relationship;
– Feedback
– Goal commitment
– Self-efficacy - ability to produce a desired amount of a
desired effect
– Task difficulty
Managerial Implications
Goal Setting Theory:
• Participate employee in goal settings
• Set specific and challenging goals
• Provide ongoing feedback so that individuals
can compare their performance with the goal.
4. Reinforcement Theory
• Reading assignment
5. Equity Theory
• Individuals compare their job inputs and
outcomes with those of others and then
respond to eliminate any inequities.
• Are my outcomes (eg., rewards or pay) fair when
compared to others’ outcomes? Comparisons
that employee can use;
– Self inside
– Self outside
– Other inside
– Other outside
Cont…
– People judge the fairness of their work
outcomes in relation to others.
– Perceived inequity occurs when there is an
unfavorable social comparison of work
outcomes.
– When perceived inequity occurs, people will be
motivated to remove the discomfort.
Model of Equity Theory
Choices of Employees Perceived
Inequity
A.Change their Inputs- (e.g., don't exert as much effort)
B.Change their Outcomes- (e.g., individuals paid on a piece-rate
basis can increase their pay by producing a higher quantity of
units of lower quality)
C.Distort Perceptions of Self- (e.g., "I used to think I worked at
a moderate pace but now I realize that I work a lot harder than
everyone else.")
D.Distort Perceptions of Others- (e.g., "Mike's job isn't as
desirable as I previously thought it was.")
E.Choose a different Referent- (e.g., "I may not make as much
as my brother-in- law, but I'm doing a lot better than my Dad did
when he was my age.")
F.Leave the Field- (e.g., " quit the job)
5. Expectancy Theory
• Expectancy theory says that an employee will
be motivated to exert a high level of effort
when he or she believes that:
– when his effort will lead to a good performance
appraisal;
– then good performance appraisal will lead to
organizational rewards such as a bonus, a
salary increase, or a promotion; and
– that the rewards will satisfy the employee's
personal goals.
Model of Expectancy Theory
Expectancy Theory focuses on three
Relationships
• Effort-performance relationship - the probability
perceived by the individual that exerting a given amount
of effort will lead to performance.
• Performance-reward relationship - the degree to
which the individual believes that performing at a
particular level will lead to the attainment of a desired
outcome.
• Rewards-personal goals relationship - the degree to
which organizational rewards satisfy an individual's
personal goals or needs and the attractiveness of those
potential rewards for the individual.
Managerial Implications
• The key to expectancy theory is the
understanding of an individual's goals and
the linkage between ;
– effort and performance,
– between performance and rewards, and,
finally,
– between the rewards and individual goal
satisfaction.
4.4 Implications of Motivation Theories for Managers
For motivating employees in organizations;

 Recognize Individual Differences
• Recognize employees have different needs
• Spend the time necessary to understand what’s important to
each employee
 Use Goals and Feedback
• Set hard, specific goals
• Give feedback on how well they are faring in pursuit of those
goals
 Allow Employees to participate in Decisions that affect
them
• Increases employee productivity, commitment to work goals,
motivation, and job satisfaction
Cont…
– Link Rewards to Performance

• Rewards should be contingent on performance
• Importantly, employees must perceive a clear link-age
– Check the system for Equity
• Rewards should be perceived as equating with the inputs
they bring to the job
• Experience, skills, abilities, effort, and other obvious
inputs should explain differences in performance and,
hence, pay, job assignments, and other obvious rewards.

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CHAPTER FOUR

• Abraham Maslow's hierarchy of needs

 Once a need is satisfied, its role declines

 Under Theory X, the four assumptions held by

• Under Theory Y, the four assumptions held by

– More than one need may be operative at the

– Frustration in attempting to satisfy a higher- level

• Seek influence over others

3. Need for Affiliation - the desire to establish and maintain

• Are drawn to interpersonal relationships

For motivating employees in organizations;

– Link Rewards to Performance

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