Employee

Motivation
Learning Objectives

 Explain the role of motivation in the workplace

 Describe four needs theories of motivation and what

motivates individuals

 Describe three process theories of motivation, why

individuals behave in a certain way and how
motivated is aroused and maintained
Employee Motivation
&
The Organization
What is Motivation?

“The set of forces that cause

people to behave in a certain
way”
(Steers & Porter, 1991)
Benefits to the Organization

 Increased performance

 Increased focus on organizational objectives

 Increased job satisfaction

 Reduced cost of industrial conflict and absenteeism

Benefits to the Manager

 Greater understanding of what motivates individuals

 Identify ways to motivate employees

 Nurture highly motivated and effective teams

 Develop an empowered and responsible workforce

Motivation Theories

 Content theories concentrate on what motivates

individuals

 Process theories concentrate on why individuals

behave in a certain way and how motivation is
aroused and maintained
Motivation Theories
 Needs or Content Theories
 Hierarchy of Needs
 Existence-Relatedness-Growth (ERG) Theory
 Two Factor Theory
 Achievement, Power, & Affiliation

 Process Theories
 Equity
 Expectancy
 Goal Setting
Needs Theories of
Motivation
Hierarchy of Needs

 Research developed by Maslow based on the

Hawthorne Studies

 Hierarchy of Needs based on the order by which they

must be met

 Hierarchy changes once a need has been met for a

period of time and the motivational force of the need
transferred
Maslow’s Hierarchy of Needs

Self
Actualization

Esteem

Affiliation

Security

Physiological
Source: Maslow
Primary & Secondary Needs
 Primary
 Psychological
 Security

 Secondary
 Affiliation
 Esteem
 Self-Actualization
Maslow’s Hierarchy of Needs
 Psychological
 Primitive Biological Needs
 Food
 Drink
 Reproduction
 Work Example: An environment conducive to work

 Security
 The need for psychological and physical safety
 Non-threatening environment
 Work Examples: Job continuity, pension plan
Maslow’s Hierarchy of Needs
 Affiliation
 The need to feel attached to a particular individual or group
 Work Examples: Friends at work, teamwork, social
interaction at work
 Esteem
 The need to feel valued and respected by self
 The need to feel valued and respected by another or a
group
 Work Examples: Job Title, A Sense of Accomplishment
Maslow’s Hierarchy of Needs

 Self Actualization

 Highest level of growth

 The need to satisfy an individual’s potential

 Work Examples: A challenging work environment,

participating in work decisions, opportunities for
further learning
Existence-Relatedness-Growth
(ERG)

 ERG Theory is an extension of Maslow’s Hierarchy

of Needs Theory

 ERG Theory was proposed by Alderfer (1969)

Existence-Relatedness-Growth
(ERG)

 Existence: Needs correspond to Maslow’s

Physiological and Security Needs

 Relatedness: Needs are similar to Maslow’s Social

and Esteem Needs

 Growth: Needs refer to Maslow’s Self Actualization

Needs
Existence-Relatedness-Growth
(ERG)

 Alderfer proposed that individuals sometimes attempt to

satisfy more than one need at a time

 To illustrate an employee may not be satisfying a Growth

need but may in turn attempt to satisfy an Existence need

 Fulfillment Progression & Frustration-Regression

Hypotheses
Existence-Relatedness-Growth
(ERG)

Fulfillment Progression Hypothesis

When that need is satisfied the individual is no longer motivated
by that need category and moves on to a higher level need

Frustration-Regression Hypothesis
If that need is consistently not met the individual regresses to a
lower level need that has already been met to a sufficient degree
Two Factor Theory

 Proposed by Hertzberg (1964)

 Hertzberg labeled the factors that lead to satisfaction

at work as motivators

 Hertzberg labeled the factors that lead to

dissatisfaction at work as hygiene factors
Hertzberg’s Theory of Motivation

Hygiene Factors Motivators

Company Policy & Administration Achievement
Supervision Recognition
Working Conditions Work Itself
Salary Responsibility
Relationships with Peers Advancement
Personal Life Growth
Relationships with Subordinates
Status
Security

Source: Adapted from Hertzberg (1966)

Two Factor Theory

 Hertzberg (1964) argued that efforts directed at

improving hygiene factors will not increase employee
motivation

 Implications for the organization is that efforts should

be directed at maximizing motivators while providing
adequate hygiene factors
McGregor’s Theory X and Y

 McGregor’s Theory X and Y styles of management

based on how managers perceive employees and how
employees approach and value work
McGregor’s Theory X

 The average human being has an inherent dislike of work and

will avoid it if he can

 Because of the human characteristic dislike of work, most people

must be coerced, controlled, directed, threatened with
punishment, to get them to put forth adequate effort towards the
achievement of organizational objectives
McGregor’s Theory X

 The average human being prefers to be directed,

wishes to avoid responsibility, has relatively little
ambition, wants security above all
Theory X Managers

 Closely supervise and control employees

 Break tasks down into simple, repetitive and easily learnt

operations

 Establish detailed work routines and procedures

 Enforce routines and procedures firmly but fairly

McGregor’s Theory Y

 The expenditure of physical and mental effort is as

natural as rest or play

 External control and the threat of punishment are not

the only means of bringing about effort towards
organizational objectives

 People will exercise self-direction and self-control in

the service of objectives to which they are committed
McGregor’s Theory Y

 Commitment to objectives is a function of the rewards

associated with their achievement

 The human being learns, under proper conditions, not only to

accept but to seek responsibility

 The capacity to exercise a relatively high degree of

imagination, ingenuity and creatively in the organizational
problems is widely, not narrowly, distributed in the population
McGregor’s Theory Y

 Under the condition of modern industrial life, the

intellectual potentialities of the average human being
are only partially utilized
Theory Y Managers

 Role to make each employee feel important and

useful

 Keep employees informed and listen to their concerns

 Allow employees exercise some self-direction and

control over routine tasks
McClelland’s Achievement -
Motivation Theory

 Theory firmly grounded within organizational setting

 Concentrates on patterns of work and how employees operate
within the work environment

 Three needs identified

 Need for Achievement
 Need for Power
 Need for Affiliation
Need For Achievement -
Motivators

 Challenging and achievable goals

 Work on goals which they helped to create

 Receive timely and accurate feedback on their

performance on these goals
Need for Achievement -
Sources
Work Ethic

Pursuit of Excellence

Status Aspiration

Competitiveness

Acquisitiveness

Mastery

Source: Cassidy & Lynn (1989)

Need for Achievement

 Work Ethic
 Based on the belief that performance is important in itself

 Pursuit of Excellence
 The desire to perform to the best of one’s ability
Need for Achievement

 Status Aspiration
 Motivation to climb the social or organizational ladder and
dominate others

 Competitiveness
 Desire to compete and overcome others
Need for Achievement

 Acquisitiveness
 The desire to acquire wealth

 Mastery
 The desire to compete with set standards
Need For Power - Motivators

 Desire to influence and direct the behavior of other

individuals

 Obtain positions whereby they can influence and

affect legitimately the behavior of others

 Obtain recognition on influencing others

Need For Affiliation - Motivators

 Creation of strong personal links with other

individuals

 Seek out positions whereby they extended the

opportunity to interact with others

 Obtain approval from others

Process Theories
of
Motivation
Equity Theory

 Individuals are motivated when they feel that they are

treated fairly in comparison to other individuals in the
same context

 Every individual is continuously evaluating their own

situation and it is these evaluations that drive their
motivation
Equity Theory - Evaluative
Processes

 Comparison between their work inputs and their

work outcomes

 Comparison between other individuals work inputs

and others work outcomes

 An analysis of these two comparisons

Source: Based on Adams, (1963)

Equity Theory - Key Terms

Inputs

Outcomes

Comparison of Others

Perceived Equity

Perceived Inequity
Inputs

 What an employee perceives they contribute which

deserves a return

 Examples of inputs
 Time
 Skills
 Effort
 Loyalty
Outcomes

 What an employee receives for doing their job

 Examples include
 Money
 Bonuses
 Respect
 Responsibility
 Job Satisfaction
 Status
Comparison of Others

 Other individuals or employees with which the

individual compares themselves with

 Example
 Individuals who perform the same job
Perceived Equity

 This occurs when an individual perceives that

they are being treated fairly when compared to
their comparison of others
Perceived Inequity

 This occurs when an individual perceives that they are

not being treated fairly when compared to their
comparison of others

 Two main types

 Negative Inequity

 Positive Inequity
Perceived Inequity

Negative Inequity
This occurs when individuals feel that unfair treatment affects
them in a negative way (e g, less wages or benefits)

Positive Inequity
This occurs when individuals feel that unfair treatment affects
them in a positive way (e g, more wages or benefits)
Equity Theory
 When individuals perceive that they are being treated fairly
they will try to maintain the status quo
 However when individuals perceive that they are being treated
unfairly they will
 Change their level of input
 Change the outcomes
 Change other individual’s inputs or outcomes
 Change their perception of other individual’s inputs or outcomes
 Changing their comparison others
 Leave the work situation in which they perceive they are being unfairly
treated
Equity Theory

 Change their level of input

 Once inequitable treatment is perceived by an employee
they may choose to alter their level of input to their job

 This can prove very difficult for an organization to

discover when accurate performance measures are not
present
Equity Theory
 Change the outcomes
 Once inequitable return for effort is perceived by an
employee they may try to influence their managers to
increase the outcomes or return for their effort

 This can prove very challenging for an organization

especially when inequity is perceived by a critical mass of
staff and may also highlight greater problems within the
organization
Equity Theory

 Change other individual’s inputs or outcomes

 In this case perceived inequality may lead

employees to try to influence the level of input (e
g , decrease level of work input) or the outcome of
other’s work

 Such activity can lead to difficult industrial

relations issues
Equity Theory
 Change their perception of other individual’s inputs or
outcomes

 As perception is at the heart of equity theory an individual

may choose to change their perception to redress their
perceived inequity

 Though this may not change the real inequity the individual
may feel more secure or motivated in perceiving an
equitable state than continuing to perceive or operate within
an inequitable position
Equity Theory

 Leave the work situation in which they perceive that they

are being unfairly treated
 The employee may ultimately remove themselves from the work
situation in which they perceive they are unfairly treated

 This may occur in a physical sense (e g , resignation) or in a

psychological sense (e g , the individual may remain in the job
but withdraw themselves psychologically from the workforce)
Expectancy Theory

 A Rational Theory of Motivation mainly associated

with Vroom (1964) and Porter & Lawlor (1968)

 Two Fundamental Assumptions

 Motivated performance is the result of conscious choice

 Individuals will do what they believe will provide them

the greatest return
Expectancy Theory

 Motivation will depend on an employee’s expectations about

their ability to perform tasks to receive desired rewards

 Emphasizes matching subordinate’s skills and abilities to job

demands

 Incentives contingent upon performance

 Outcomes must be valued by the employee and the

organization
Expectancy Theory

 Leaders can motivate followers when they understand the

process or factors that followers use to determine whether
certain behaviors will lead to valued outcomes

 Three Factors
1. Effort-to-Performance Expectancy
2. Performance-to-Outcome Expectancy
3. Valence
Expectancy Theory

Environment

+
Outcome
Motivation Effort Performance
(Valence)

+
Ability
Expectancy Theory - Three Factors

 Effort-to-Performance Expectancy
 An individual’s perception of the probability that effort
will lead to performance

 Performance-to-Outcome Expectancy
 An individual’s perception of the probability that
performance will lead to certain outcomes
Expectancy Theory - Three Factors

 Valence
 The attractiveness or unattractiveness of a particular
outcome
Porter & Lawlor’s Expectancy
Model
Comparison Process

Perceived Abilities
Value of Intrinsic
&
Reward Reward
Traits

Job
Effort Performance
Satisfaction

Perceived
Effort & Role Extrinsic
Reward Perception Reward
Probability

Source: Porter & Lawlor,

Porter & Lawlor’s Expectancy
Model

 Perceived Value of the Reward

 Before effort or commitment is given employees engage
in a ‘what is in it for me’ thought process
Porter & Lawlor’s Expectancy
Model

 Perceived Effort & Reward Probability

 Employees will seek to ascertain if they can obtain the
reward
 High effort/reward probability will ensure that the
employee will approach the task with confidence of
obtaining the reward
 Low effort/reward probability will mean that the
employee will approach the task with low confience in
obtaining the reward
Porter & Lawlor’s Expectancy
Model

 Perceived Effort & Reward Probability

 Effort/Reward probability is a function of the employee’s
faith in their own ability and the likelihood that rewards
will be administered by the organization
Porter & Lawlor’s Expectancy
Model

 Effort
 Is the perceived value of the reward and the perceived
effort/reward probability high enough to justify effort?

 Abilities, Traits & Role Perception

 To translate effort into performance the employee must
possess the necessary abilities, traits and role perception
Porter & Lawlor’s Expectancy
Model

 Intrinsic & Extrinsic Rewards

 Performance is less likely to be repeated if the employee does not

receive the rewards they expected or has not received these in the
past

 Job Satisfaction

 Reward levels experienced relate directly to level of job

satisfaction held by the employee
Goal Setting Theory

Goals are motivating when they are:

 Specific

 Challenging but attainable

 Measurable

 Flexible when required

 Accepted by the employee

Components of Goal-Setting Theory

 Goal Difficulty
 The extent to which a goal is challenging and requires effort

 Difficult but realistic

 Goal Specificity
 The clarity of a goal

 Specific
Components of Goal-Setting Theory

 Goal Acceptance

 The extent to which a person accepts goal as their

own

 Goal Commitment

 The extent to which a person is personally

interested in achieving a goal
Components of Goal-Setting
Theory

Goal Goal Organizational Intrinsic

Difficulty Acceptance Support Rewards

Goal-Directed Satisfactio
Performance
Effort n

Goal Goal Individual Extrinsic

Specificity Commitmen Abilities and Rewards
t Traits
Goal Setting Theory

 A goal refers to something an individual is

consciously attempting to attain

 Goals are the primary determinants of motivation

 When set properly they generate commitment

Goal Setting Theory

Goals are de-motivating when they are:

 Non-specific and ambiguous

 Either impossible or to easy to achieve

 Not reviewed or measured

 Inflexible in times of change

 Imposed without consultation

Summary
 Motivation is the set of forces that cause individuals to behave
in a certain way
 An understanding of the forces that cause individuals to
behave in a certain way offers considerable benefits to the
employee, manager and the organization as a whole
 Content theories Hierarchy of Needs concentrate on what
motivates individuals
 Existence-Relatedness-Growth (ERG) Theory
 Two Factor Theory
 Achievement, Power, & Affiliation
Summary

 Process theories concentrate on why individuals

behave in a certain way and how motivation is
aroused and maintained
 Equity

 Expectancy

 Goal Setting