Mba 711 - Chapter 4

CHAPTER FOUR
MOTIVATION CONCEPTS AND

THEIR APPLICATIONS
1
MOTIVATION CONCEPTS AND THEIR APPLICATIONS
Meaning of Motivation
 Motivation is the set of processes that move a person toward
a goal. Thus, motivated behaviors are voluntary choices
controlled by the individual employee.
 The supervisor (motivator) wants to influence the factors
that motivate employees to higher levels of productivity.
 Motivation is to inspire people to work, individually or in
groups in the ways such as to produce best results. It is the
will to act.
 It is the willingness to exert high levels of effort towards
organizational goals, conditioned by the efforts and ability to
satisfy some individual need.
 Motivation is getting somebody to do something because they
want to do it.
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Meaning of Motivation
 It was once assumed that motivation had to be injected from
outside, but it is now understood that everyone is motivated by
several differing forces.
 Factors that affect work motivation include individual
differences, job characteristics, and organizational practices.
 Individual differences are the personal needs, values, and attitudes,
interests and abilities that people bring to their jobs.
 Job characteristics are the aspects of the position that determine its
limitations and challenges.
 Organizational practices are the rules, human resources policies,
managerial practices, and rewards systems of an organization.
 Supervisors must consider how these factors interact to affect
employee job performance.
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Characteristics of Motivation
 Motivation is a psychological phenomenon. It is the inner desire of an
individual to accomplish something more.
 Motivation is a continuous process. Since need is a continuous
phenomenon if one need is satisfied the other need emerges and so does
individual propels to work and thus the continuous chain is created.
 Motivation is caused due to anticipated perceived value from an action.
Perceived value is the probability or the expectancy. Therefore
motivation=valance (value) × expectancy.
 There are unsatisfied needs. A person remains disturbed till they are
satisfied. This disturbance or tension causes disequilibria in human
behaviour. More the motivation level, the higher will be efforts to get over
the tension and in the process job accomplishment would take place.
 Individual is motivated by positive motivation. It refers to incentives
offered by the organization to achieve efficiency.
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Importance of Motivation
 High level of performance: Highly motivated workers would be regular
for work, and have a sense of belonging for the organization. Quality of
product will be improved, wastage will be minimum and there will be
increase in productivity, and performance level will be high.
 Low employee turn over and absenteeism. Employee turnover and
absenteeism is caused due to low level of motivation on the part of
managers.
 Acceptance of organization change. Management must continuously
scan the external and the internal environment. There has been a great
impact of social change and technology evolution on the motivation level
of employees.
 Organizational image: Employees are the mirrors of any organization.
Managers must lay down high performance standards coupled with high
monetary and nonmonetary rewards.
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Theories of Motivation
 Two primary approaches to motivation are content and process.
Content Theories
 The content approach emphasizes what motivates employees,
focuses on the assumption that individuals are motivated by the
desire to fulfill inner needs.
Maslow's Hierarchy of Needs
 It identifies five levels of needs, which are best seen as a
hierarchy with the most basic need emerging first and the most
sophisticated need last.
 People move up the hierarchy one level at a time. gratified needs
lose their strength and the next level of needs is activated. As
basic or lower-level needs are satisfied, higher-level needs
become operative.
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Content Theories
 A satisfied need is not a motivator. The most powerful employee need is
the one that has not been satisfied.
 Level I - Physiological needs are the most basic human needs. They
include food, water, shelter and comfort.
 The organization helps to satisfy employees' physiological needs by
a paycheck.
 Level II - Safety needs are the desires for security and stability, to feel
safe from harm.
 The organization helps to satisfy employees' safety needs by
benefits.
 Level III - Social needs are the desires for affiliation. They include
friendship and belonging.
 The organization helps to satisfy employees' social needs through sports
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teams, parties, and celebrations..
Content Theories
 Level IV - Esteem needs are the desires for self-respect and respect
or recognition from others.
 The organization helps to satisfy employees' esteem needs by
matching the skills and abilities of the employee to the job.
 Level V - Self-actualization needs are the desires for self-fulfillment
and the realization of the individual's full potential.
 The supervisor can help fulfill self-actualization needs by
assigning tasks that challenge employees' minds while drawing on
their aptitude and training.
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Content Theories
Alderfer's ERG
 Identified three categories of needs.
 Existence needs are the desires for material and physical well being.
 These needs are satisfied with food, water, air, shelter, working conditions,
pay, and fringe benefits.
 Relatedness needs are the desires to establish and maintain interpersonal
relationships.
 These needs are satisfied with relationships with family, friends, supervisors,
subordinates, and co-workers.
 Growth needs are the desires to be creative, to make useful and productive
contributions and to have opportunities for personal development.
 The major conclusions of this theory are:
 In an individual, more than one need may be operative at the same time.
 If a higher need goes unsatisfied then the desire to satisfy a lower need
intensifies.
 It also contains the frustration-regression dimension.
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Content Theories
McClelland's Learned Needs
 Achievement: motivated people thrive on pursuing and attaining
goals. High-need achievers possess these characteristics:
1. High-need achievers have a strong desire to assume personal
responsibility for performing a task or finding a solution to a problem
2. High-need achievers tend to set moderately difficult goals and take
calculated risks.
3. High-need achievers have a strong desire for performance feedback.
 Power: motivated individuals see almost every situation as an
opportunity to seize control or dominate others. characteristics:
1. A desire to influence and direct somebody else.
2. A desire to exercise control over others.
3. A concern for maintaining leader-follower relations.
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Content Theories
McClelland's Learned Needs
 Affiliation motivated people are usually friendly and like to socialize
with others. characteristics:
1. They have a strong desire for approval and reassurance from others.
2. They have a tendency to conform to the wishes and norms of others when
they are pressured by people whose friendships they value.
3. They have a sincere interest in the feelings of others
Herzberg's Two-Factor Theory
 Describes needs in terms of satisfaction and dissatisfaction.
 Satisfaction comes from motivators that are intrinsic or job content, such as:
 achievement
 recognition
 advancement
 responsibility
 the work itself
 growth possibilities
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DIRECTING FUNCTION
Content Theories
 Dissatisfaction occurs when the following hygiene factors,
extrinsic or job context, maintenance factors are not present on
the job and include:
 pay
 status
 job security
 working conditions
 company policy
 peer relations
 supervision
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DIRECTING FUNCTION
Content Theories
Dissatisfaction Job Normal
context/Hygie condition/no
ne factors motivation
Absence Presence
Normal condition/ No Motivation

Job content
dissatisfaction
factors
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DIRECTING FUNCTION
Content Theories
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DIRECTING FUNCTION
Content Theories
Theory X and Theory Y of Douglas McGregor :
 Under the assumptions of theory X :
 Employees inherently do not like work and whenever possible, will
attempt to avoid it.
 Because employees dislike work, they have to be forced, coerced or
threatened with punishment to achieve goals.
 Employees avoid responsibilities and do not work till formal directions
are issued.
 Most workers place a greater importance on security over all other factors
and display little ambition.
 under the assumptions of theory Y:
 Physical and mental effort at work is as natural as rest or play.
 People do exercise self-control and self-direction and if they are
committed to those goals.
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DIRECTING FUNCTION
Content Theories
Theory X and Theory Y of Douglas McGregor
Theory Z
 Theory Z companies have the following characteristics:
• Career paths wander around the firm across functions and hierarchies.
People in Theory Z firms possess great understanding of the total firm.
• Decisions include a component of “suitability” and “corporate fit.”
Organizational life is a life of interdependence. Each person relies on
others in the firm.
• Decisions result from a participative process.
• Extensive energy is expended to develop the interpersonal skills
necessary for effective group decision making.
• People deal with people in the organization rather than one position to
another.
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Content Theories
Theory X and Theory Y of Douglas McGregor
Theory Z
 People in Theory Z firms operate as clans. Individual performance is not as
important as group and team performance.
 Long-term employment and job security
 Collective responsibility
 Implicit, informal control with explicit, formalized measures
 Collective decision-making
 Slow evaluation and promotion
 Moderately specialized careers
 Concern for a total person, including their family
 Theory Z firms understand the innate desire of people for variation in life.
 Work assignments create variety by allowing people to work in different
departments and perform different tasks.
 Theory Z firms understand the paradox of gaining more by not working for
profit alone. Rather, they work to see employees share in the wealth. The result
is higher returns for longer periods of time. 17
Process Theories
 The process approach emphasizes how and why people choose certain behaviors
in order to meet their personal goals.
 Process theories focus on external influences or behaviors that people choose to
meet their needs.
Vroom's Expectancy Model
 The theory argues that the strength of a tendency to act in a specific way depends
on the strength of an expectation that the act will be followed by a given
outcome and on the attractiveness of that outcome to the individual.
 Expectancy theory says that an employee can be motivated to perform better
when there is a belief that the better performance will lead to good performance
appraisal and that this shall result into realization of personal goal in form of some
reward.
 Vroom’s Expectancy Theory states that behavior is a result of:
 the importance of a reward,
 the extent that the behavior will result in the reward, and
 the likelihood that the reward will materialize.
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Process Theories
 Vroom uses the terms valence, instrumentality and expectancy to
describe his theory. Many people refer to his theory as the VIE Theory.
Motivation = Valence x Expectancy.
 The theory focuses on three things:
 Efforts and performance relationship (expectancy).
 Performance and reward relationship (instrumentality).
 Rewards and personal goal relationship (valence).
 Expectancy is the belief that efforts are linked to performance.
 Expectancy is the probability that a particular action will lead to the
outcome.
 Expectancy is different from instrumentality in that it relates efforts to
the first-level outcomes whereas instrumentality relates first and second
level-outcomes to each other..
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DIRECTING FUNCTION
Process Theories
 Instrumentality is a person’s perception about the extent to which
performance at a certain level will result in the attainment of outcomes.
 Instrumentality is, in short, the belief that performance is related to
first rewards.
 Valence is the importance placed upon the reward. It refers to how
desirable each of the out comes available from a job or organization is to
a person.
 Valence refers to the attractiveness of a reward - how important the
reward is to someone.
 It also refers to the level of satisfaction that an individual expects
from a reward rather than the actual value derived.
 It means the strength of an individual’s preference to a particular
outcome.
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DIRECTING FUNCTION
Process Theories
Instrument
Expectancy
alities
2nd level
Motivation outcome
First level outcomes
s
Outcome1 a
Outcome 1 Outcome1b
Outcome2a
Outcome 2
Outcome 2b 21
Process Theories
Fishbein’s Theory of Reasoned Action
 Fishbein modified Vroom’s model to allow for the expectations of others
as one factor influencing individual motivation.
 The model allows for a quantification of this by summing the beliefs
times the value of each outcome. This first quantitative result represents
the individuals weighted difference toward the behavior.
 The model then includes an evaluation by the individual as to what
various referent people, or groups of people, feel toward the individual
performing the behavior.
 Role expectations, role conflicts and role ambiguity play a significant
part in this model. Each individual has a sense of his or her intent to
comply with what the referents desire.
 This may range from an absolute intent to comply with an absolute intent
to rebel and not perform the behavior regardless of the outcome (hence
the old adage of "cutting off your nose to spite your face").
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Process Theories
Fishbein’s Theory of Reasoned Action
 The second quantitative value is derived by summing all of the
referent values times the motivation to comply. The summed
value yields a measure of the pressure to perform the behavior, or
what we call peer pressure.
 The third quantitative measure is a product of multiplying the
first two. The value derived is a relative weighted value of the
importance of the behavior to the individual and the impact of
referent pressure to comply.
 The concern with the model is that no two people will weight a
behavior the same or allocate a similar value to the beliefs of the
referent group. This results in each individual having to self-
report their quantitative scores.
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DIRECTING FUNCTION
Process Theories
Porter-Lawler’s theory of motivation
 Porter and Lawler suggest that employee effort is jointly determined by
two key factors:
 the value placed on certain outcomes by the individual, and
 the degree to which the person believes that his effort will lead to the
attainment of these rewards.
 Porter and Lawler use satisfaction in their model. Satisfaction raises several
interesting thoughts regarding managers’ motivation of employees.
 We define “satisfaction” as needs being met. Think about it, if needs are
met, what is the purpose of behavior?
 I recall many times that employees, reporting to me, were in states of great
happiness or satisfaction (rarely caused by me, unfortunately) and they did
not work during these states of euphoria. Rather, they shared thoughts,
expressions and engaged in bonding-type behavior.
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DIRECTING FUNCTION
Process Theories
 dissatisfaction causes behavior to achieve equilibrium, the issue is
what type of dissatisfaction do you want to create in your
employees and to what degree?
 Too much dissatisfaction causes employees to give up and quit.
 Transformational leaders establish dissatisfaction with the status
quo of the firm.
 Transformational leaders describe an institutional-state to which
employees should aspire.
 Thus, employee performance behavior focuses on reaching the
new organizational goal.
25
DIRECTING FUNCTION
Process Theories
26
Process Theories
Equity Theory
 Equity is the perception of fairness involved in rewards given. A fair or
equitable situation is one in which people with similar inputs experience
similar outcomes.
 Employees will compare their rewards with the rewards received by
others for their efforts. If employees perceive that an inequity exists, they
are likely to withhold some of their contributions, either consciously or
unconsciously, to bring a situation into better balance.
 While equity theory was originally concerned with differences in pay, it
may be applied to other forms of tangible and intangible rewards in the
workplace.
 That is, if any input is not balanced with some fair output, the motivation
process will be difficult. Supervisors must manage the perception of
fairness in the mind of each employee.
 If subordinates think they are not being treated fairly, it is difficult to
motivate them. 27
DIRECTING FUNCTION
Process Theories
Equity Theory
28
DIRECTING FUNCTION
Process Theories
Equity Theory
29
Process Theories
Reinforcement Theory
 The reinforcement theory, based on E. L. Thorndike’s law of effect,
simply looks at the relationship between behavior and its consequences.
 Positive reinforcement rewards desirable behavior. Positive
reinforcement, such as a pay raise or promotion, is provided as a reward
for positive behavior with the intention of increasing the probability that
the desired behavior will be repeated.
 Negative reinforcement occurs when a person engages in behavior to
avoid unpleasant consequences or to escape from existing unpleasant
consequences.
 Punishment is an attempt to discourage a target behavior by the
application of negative outcomes whenever it is possible. Punishment
(threats, docking pay, suspension) is an attempt to decrease the likelihood
of a behavior recurring by applying negative consequences.
30
Process Theories
 The reinforcement theory has the following implications for
management:
 Learning what is acceptable to the organization influences
motivated behavior.
 Managers who are trying to motivate their employees should be
sure to tell individuals what they are doing wrong and be careful
not to reward all individuals at the same time.
 Managers must tell individuals what they can do to receive positive
reinforcement.
 Managers must be sure to administer the reinforcement as closely
as possible to the occurrence of the behavior.
 Managers must recognize that failure to reward can also modify
behavior. Employees who believe that they deserve a reward and do
not receive it will often become disenchanted with both their
manager and company. 31
DIRECTING FUNCTION
Process Theories
32
Process Theories
Hackman’s Job Design Theory
 Five core job dimensions create three critical psychological states that, in turn,
lead to a number of beneficial personal and work outcomes.
The five job dimensions are:
 Skill variety: the degree to which a job requires a variety of different activities
that involve the use of a number of different skills and talents.
 Task identity: the degree to which the job requires completion of a whole and
identifiable piece of work -that is, doing a job from beginning to end with a visible
outcome.
 Task significance: the degree to which the job has a substantial impact on the
lives or work of other people, whether in the immediate organization or in the
external environment.
 Autonomy: the degree to which the job provides substantial freedom,
independence, and discretion to the individual in scheduling the work and in
determining the procedures to be used in carrying it out.
 Feedback: the knowledge of how well the results match the expectation.
Information necessary for correction should also occur in feedback. 33
DIRECTING FUNCTION
Process Theories
The psychological states as shown in the model are:
 Experienced meaningfulness: The person must experience the work as
generally important, valuable, and worthwhile.
 Experienced responsibility: The individual must feel personally responsible and
accountable for the results of the work he performs.
 Knowledge of results: The individual must have an understanding, on a fairly
regular basis, of how effectively he is performing the job.
When changing jobs, consider:
 Combining tasks to increase the breadth and totality of the job.
 Opening, or broadening, channels for feedback of work quality and
acceptability to others inside and outside of the firm.
 Establishing client relationships.
 Giving more control of the work to the employee.
34
DIRECTING FUNCTION
Process Theories
Skill variety
Task identity
Task significance Experienced meaningfulness of the work high internal work motivation
35
Process Theories
Jeremy Bentham’s “The Carrot and the Stick Approach” :
 Bentham’s view was that all people are self-interested and are motivated by the
desire to avoid pain and find pleasure. Any worker will work only if the reward is
big enough, or the punishment sufficiently unpleasant.
 This view - the ‘carrot and stick’ approach - was built into the philosophies of the
age and is still to be found, especially in the older, more traditional sectors of
industry.
 The various leading theories of motivation and motivators seldom make reference
to the carrot and the stick. This metaphor relates, of course, to the use of rewards
and penalties in order to induce desired behavior.
 It comes from the old story that to make a donkey move, one must put a carrot in
front of him or dab him with a stick from behind.
 The trouble with the money ‘carrot’ approach is that too often everyone gets a
carrot, regardless of performance through such practices as salary increase and
promotion by seniority, automatic ‘merit’ increases, and executive bonuses not
based on individual manager performance
 The ‘stick’, in the form of fear–fear of loss of job, loss of income, reduction of
bonus, demotion, or some other penalty–has been and continues to be a strong 36
motivator. Yet it is admittedly not the best kind.
Thank you!!
37

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CHAPTER FOUR

MOTIVATION CONCEPTS AND

Normal condition/ No Motivation

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