TPM-10

Motivation
Outline
 Motivation and various Motivation Theories

− Maslow’s “Hierarchy of Needs”

− McGregor’s “Theory X & Theory Y Employees”
− McClellad’s “Three Needs”
− Herzberg’s “Two Factors”
− Locke & Latham’s “Goal Setting”
− Skinner’s “Reinforcement”
− Adams’ “Equity”
− Vroom’s “Expectancy”
 Putting all Theories together

Readings
 Robbins & Coulter: Chapter 16

 Class Notes 1

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Motivation
Motivation. The process by which a person’s efforts are energized, directed, and
sustained toward attaining a Goal

“Hierarchy of Needs” (1943) by Maslow

A human has physiological, safety, social, esteem, and self-actualization
needs which form a sort of hierarchy

Self-
Actualisation Self-fulfillment, growth, learning
Internal: Self-respect, accomplishment, autonomy
Esteem
External: Attention, appreciation, status, recognition

Social Love, affection, approval, friends, association

Safety Security, stability, freedom from physical & emotional harm

Physiological Need for air, water, food, housing, clothing

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“Theory X & Theory Y” (1960) by McGregor
Managers hold either of the following two perceptions on their
employees:
• Theory X employees are incapable, responsibility avoiding, and
work avoiding, whenever possible. They need heightened
supervision, external rewards, and penalties
• Theory Y employees are motivated, willing to work without
supervision and are achievers. They need to be consulted,
delegated, and supported

“Three Needs Theory” (1961) by McClelland

Three acquired (not innate) needs - Achievement, Power, and Affiliation
- are major motives in work
• Need for Achievement (nAch) The drive to succeed and excel in relation to a set of
standards
• Need for Power (nPow) The need to make others behave in a way that they would not have
behaved otherwise
• Need for Affiliation (nAff) The desire for friendly and close interpersonal relationships

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“Two Factors Theory” (1968) by Herzberg
In a work place, separate set of HYGIENE and MOTIVATION factors affect
employees’ Satisfaction and Motivation
• HYGIENE factors: Status, job security, salary, fringe benefits, work conditions, etc
• MOTIVATION factors: Intrinsic to work, rooted in responsibility, challenge, self-
actualization, professional growth, recognition, achievement, etc

• No Job Dissatisfaction • No Job Dissatisfaction

GOOD

⁞ PIA ⁞ Corporate Jobs

• No Motivation • Motivation
HYGIENE
FACTORS

• Dissatisfaction with Job • Dissatisfaction with Job

BAD

⁞ Seth’s Job ⁞ Young Doctors

• No Motivation • Motivation
BAD GOOD
MOTIVATION FACTORS

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Comparison of McGregor, Hertzberg, Maslow & 5

McClelland

McGregor Herzberg Maslow McClelland

Theory Y Motivators Self-Actualisation Achievement
• Motivated • Recognition
• High Achievers • Work Itself Esteem Power
• Self-driven • Responsibility
• Advancement
Social Needs Affiliation
Theory X Hygienic Factors
• Unmotivated • Interpersonal
• Low Achievers Relations
• Carrot & Stick- • Coy/Admin Policy Security
driven • Supervision Affiliation?
• Salary Physiological
• Working Condition Needs

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“Goal-setting Theory” (1960) by Locke & Latham … 1/2
The proposition that specific Goals increase performance and that difficult Goals,
when accepted, result in higher performance than do easy Goals
• Goals can lead to Motivation
• Not all Goals provide a high level of Motivation
• To lead to a high level of Motivation, the Goals should follow 5 key principles:
1. Clarity. Goals be Clear & Specific Peak Performance at
Difficulty Level A
“Increase Sales” (not Clear)
“Increase Sales by 10% in the next quarter” (Clear)
Performance

2. Challenge. More Challenging Goals create higher level of

Motivation. However, they should not be overwhelming:
“Increase Sales by 40%” (overwhelming) Goal Difficulty
“Increase Sales by 2% (not Challenging)
3. Commitment. Goals, which Employees are committed to achieve, provide greater
Motivation than those set unilaterally for them. Goals are collaborated between
the Manager and the Employee
“This is the Goal I have set for you” (Non-Committal by the Employee having not
been involved in setting the Goal)

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“Goal-setting Theory” (1960) by Locke & Latham … 2/2
− Feedback. Regular Feedback helps maintain momentum and keeps the Employee
on track towards the Goal
“I like the way you have done this”
“How about trying this strategy”
− Task Complexity. Tasks should not be so complex that the Employee does not
expect to achieve it (beyond the Employee’s Self-Efficacy; break a Complex task
into sub-tasks
“Increase Sales by 40% in the next year and do it 10% per quarter”
Self-Efficacy An individual’s belief that he or she is capable of performing a task
Goals
Achieved
Self Efficacy

Acceptance & Formulate Implement Evaluate

Goals
Commitment Strategies Strategies Results
• Clear
• Complex Feedback
• Collaborated

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“Reinforcement Theory” (1938) by Skinner
The theory that Behavior is a function of its Consequences
Reinforcers Those consequences that immediately follow a behavior, and increase/
decrease the probability that the behavior will be repeated
 Rewards, Penalties, Appreciations, Condemnations, etc
Types of Reinforcers The Managers use the following Reinforces for controlling the
behaviour of the Employees:
Positive Reinforcement Giving a Positive response for Positive and required behaviour
 Immediately praising an Employee for acting responsibly
Negative Reinforcement Rewarding an Employee by removing his Negative/
undesirable status for improved behaviour
 Discontinuing suspension, restoring his rank, etc
Punishment Removing Positive consequences, ie applying Undesirable consequence
for showing Undesirable behaviour
 Suspending an Employee for breaking the organizational rules
Extinction Absence of reinforcements, ie lowering the probability of undesired
behaviour by removing reward for that kind of behaviour; great care required
 On not being appreciated, an Employee may feel he is not doing well

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“Equity Theory” (1963) by Adams
Weighted against one or
The theory that Employees compare their job’s Input- more Referrent Groups
Output (IO) ratios with that of relevant others and
then correct any Inequity
• Individuals are proportionally motivated by Equity
Inputs Outputs
(Fairness) and demotivated by lack of it
• Inequities in IO ratios lead to reactions; Negative Inequity • Effort • Recognition
→ lower productivity, reduced quality of output, • Loyalty • Reputation
• Hard work • Responsibility
increased absenteeism, or voluntary resignation; and vice • Commitment • Praise
versa • Skill • Stimulus
• Ability • Job security
Referrents The persons, systems, or selves against which • Adaptability • Sense of
• Flexibility achievement
individuals compare themselves to assess equity • Acceptance of • Sense of
Distributive Justice Perceived fairness of the amount and others advancement/
• Determination growth
allocation of Rewards among individuals • Enthusiasm
• Trust in
Procedural Justice Perceived fairness of the process used superiors
to determine the distribution of rewards • Support of
colleagues
• Personal
sacrifice

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“Expectancy Theory” (1964) by Vroom
The theory that an individual tends to act in a certain way based on the
expectation that the act will be followed by a given Outcome and on the
attractiveness of that outcome to the individual. It includes three
variables or relationships – A, B & C:
Individual A Individual B Organisational C Individual
Effort Performance Rewards Goals

A. Expectancy (Effort-Performance) Probability perceived by the individual that

exerting a given amount of Effort will lead to a certain level of Performance
 “How hard do I have to work to achieve a certain level of performance, and can
I actually achieve that level? (Self-Efficacy)”
B. Instrumentality (Performance-Reward) Degree to which the individual believes
that performing at a particular level is instrumental in attaining the desired Outcome
 “What reward will performing at that level of performance get me?”

C. Valence (Attractiveness) of Reward is the importance an individual places on the

potential Outcome or Reward that can be achieved on the job. Valence considers
both the Goals and Needs of the individual
 “How attractive is the reward to me, and does it help me achieve my own
personal goals?”

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Integrating Various Theories
• Motivation theories are mostly complementary; Expectancy Theory is the core, with a strong presence of
the Goals Setting theory in which the Goals direct Behaviour; both are affected by external factors
• Level of Individual Performance is determined not only by the
High
level of Individual Effort but also by the individual’s Ability to nAch
perform and by whether the Organization has a fair &
objective Performance Evaluation system
Equity
Performance Comparison
• Performance-Rewards linkage will be strong if the Evaluation
Individual perceives that Performance (rather Criteria
than some other criterion) is what is rewarded Equity
Theory
• Rewards-Goal linkage the Need Theories. Ability
Motivation would be high to the degree Expectancy
Theory
that the Rewards an individual received Individual Individual Organisational Individual
for his or her high Performance satisfied Effort Performance Rewards Goals
the Dominant Needs consistent with
Individual Goals Objective
Reinforcement
Performance
Theory
• High nAch’s motivation is personal Evaluation
System
Dominant
Needs
responsibility, feedback, and moderate risks. Reinforcement
With these available, he puts in the Effort to Needs
Theory
achieve his Goals. Performance appraisals,
Rewards, have now meaning for him
• Organization’s fair rewards system Reinforce Individual’s Goals
performance. Fair Rewards also help establish Equity Direct
which leads to good Individual Performance Behaviour