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Chapter- 7

Motivation Concepts:Early Theories of Motivation

Motivation: What is it?Motivation- result of the interaction between the individual

and the situation/ environment.

Motivation: The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal*/ meeting physical or psychological needs or wants.

* general goal/ an organizational goal- specifically in organizational context.

Three key elements: Intensity – how hard a person tries (quantitative aspect) Direction – effort that is channeled toward, and

consistent with, organizational goals (qualitative aspect) Persistence – how long a person can maintain effort

Early Theories of MotivationThese early theories may not be valid, but they do

form the basis for contemporary theories and are still used by practicing managers.

Maslow’s Hierarchy of Needs Theory Alderfer’s ERG (Existence, Relatedness, and Growth)

McGregor’s Theory X and Theory Y

Herzberg’s Two-Factor Theory

McClelland’s Theory of Needs

Hierarchy of Needs Theory by Abraham Maslow

There is a hierarchy of five needs. As each need is substantially satisfied, the next need becomes dominant. Assumptions

Individuals cannot move to the next higher level until all needs at the current (lower) level are satisfied

Must move in hierarchical order

Higher Order Needs:Internal

Lower Order Needs:External

Alderfer’s ERG Theory

Reworking on Maslow’s need hierarchy to align it more closely with empirical research.

Three groups of core needs: Existence (similar to Maslow’s physiological and safety needs) Relatedness (similar to Maslow’s social needs), and Growth (similar to Maslow’s esteem and self-actualization

needs) Removed the hierarchical assumption

An individual could focus on all the three needs simultaneously

Popular, but not accurate, theory

McGregor’s Theory X and Theory Y Two distinct views of human beings:

Theory X (basically negative) and Theory Y (positive). Managers used a set of assumptions based on these

views The assumptions mold their behaviour toward

employees

No empirical evidence to support this theory.

Herzberg’s Two-Factor Theory / Motivation- Hygiene Theory

Herzberg’s Basic Quest- “What do people want from their jobs?”, “What motivates employee- job contents or working conditions?”

Extrinsic Factors: Related to Dissatisfaction

Intrinsic Factors: Related to Satisfaction

Two-Factor Theory (contd. ..)Key Point: Satisfaction

and dissatisfaction are not opposites but separate constructs.

In fact, they exist as a dual continuum.

Factors that lead to job satisfaction- distinct & separate from factors that lead to job dissatisfaction.

Contrasting views of Satisfaction & Dissatisfaction

Traditional view

Satisfaction Dissatisfaction

Herzberg’s View

Satisfaction No Satisfaction

No Dissatisfaction Dissatisfaction

MOTIVATORS

HYGIENE FACTORS

Criticisms of Two-Factor TheoryHerzberg says that hygiene factors must be met to remove

dissatisfaction. If motivators are given, then satisfaction can occur.

Herzberg’s respondents comprised of architects and engineers. So, it is limited by his procedure How could we generalize it?

Participants had self- serving bias Participants attributed –ve feelings in job (dissatisfaction) to external

factors and happiness/ +ve feelings to internal factors Later researchers found that a specific variable (like pay) can

be a source of either satisfaction or dissatisfaction, depending on the person.

Impact of external factors (such as health and family tensions) on work behaviour- highly ignored.

No overall measure of satisfaction was used Herzberg assumed, but didn’t research, a strong relationship

between satisfaction and productivity

McClelland’s Theory of NeedsManagers can motivate others if they are sensitive to

the motives (learned/ acquired) of individual employees:

Need for Achievement (nAch) Need for Power (nPow) Need for Affiliation (nAff)

People have varying levels of each of the three needs. Hard to measure

TAT

Performance Predictions for High nAch People with a high need for achievement are likely

to: Prefer to undertake activities with a 50/50 chance of

success, avoiding very low- or high-risk situations Be motivated in jobs that offer high degree of personal

responsibility, feedback, and moderate risk Not necessarily make good managers – too personal a

focus. Most good general managers do NOT have a high nAch

Need high level of nPow and low nAff for managerial success

Good research support, but it is not a very practical theory

Contemporary Theories of Motivation Goal-Setting Theory

Management by Objectives (MBO) Self-Efficacy Theory

Also known as Social Cognitive Theory or Social Learning Theory

Reinforcement Theory Cognitive Evaluation Theory Equity Theory Expectancy Theory

Locke’s Goal-Setting Theory Basic Premise:

Specific and difficult goals, with feedback, lead to higher performance

GOALSTwo primary attributes of goals in goal- setting perspective:1. Content of the Goal2. Level of Intensity in working towards it

Difficult Goals: Focus and direct attention Energize the person to work harder Difficulty increases persistence Force people to be more effective and efficient

Why are ‘goals’ important?

Goals guide and direct behaviour

Goals serve as an organizing function

Goals provide benchmarks

Goals: Basis for Organizational Design

Goal- Setting Theory

Traditional Goal SettingTraditional Goal SettingTraditional Goal SettingTraditional Goal Setting

Broad goals set by top Broad goals set by top managers flow down managers flow down through the through the organization and organization and become sub-goals for become sub-goals for each organizational each organizational area.area.Assumes that top Assumes that top management knows management knows best because they can best because they can see the “big picture.”see the “big picture.”

Exhibit 7.2: The Downside of Traditional Goal Setting

Setting Goals and Developing PlansGetting the Best from Traditional Goal Setting: HOW??

Maintaining the Hierarchy of Goals Means–Ends Chain

The integrated network of goals that results from establishing a clearly-defined hierarchy of organizational goals.

Achievement of lower-level goals is the means by which to reach higher-level goals (ends).

Setting Goals and Developing Plans Management By Objectives (MBO)

Specific performance goals are jointly determined by employees and managers.

Progress toward accomplishing goals is periodically reviewed.

Rewards are allocated on the basis of progress towards the goals.

Key elements of MBO:Goal specificity, participative decision making,

an explicit time period, performance feedback

SETTING ORGANIZATION’S

OVERALL OBJECTIVES & STRATEGIES

SETTING & ALIGNING EMPLOYEE OBJECTIVES

ACTION PLAN:Design &

Implementation

REWARDING EMPLOYEE &

FEEDBACK

MONITORING & EVALUATING

PERFORMANCE

MBO (Steps)

Implementation: Management by Objectives MBO is a systematic way to utilize goal-setting. Goals must be:

Tangible Verifiable Measurable

Corporate goals are broken down into smaller, more specific goals at each level of organization.

Four common ingredients to MBO programs: Goal specificity Participative decision making Explicit time period Performance feedback

Reinforcement/ Reward TheoryGoal-Setting process requires cognitive involvement.Reward System- a less- cognitive approach to

motivate, modify or reshape behaviours.

Behavior is environmentally caused i.e. behaviour is a function of its consequences.

Thought (internal cognitive event) is not important Feelings, attitudes, expectations and other cognitive

variables are ignored Behavior is controlled by its consequences – reinforcers Is not a motivational theory but a means of analysis of

behavior Reinforcement strongly influences behavior but is not likely

to be the sole cause

Is reward effective in motivation?

The ability of the reward to motivate individuals or a team to high performance depends on:

Availability Timeliness Performance Contingency Durability Equity Visibility

Reinforcement Types of Reinforcement Schedules of Reinforcement Applications

Cognitive Evaluation TheoryPart- I

Assumptions & Findings: Intrinsic rewards are not independent of

extrinsic rewards such as high pay, bonus etc.

i.e.When extrinsic rewards are used by organizations

as payoffs for superior performance, the intrinsic rewards, which are derived from individuals doing what they like, are reduced. OR

When extrinsic rewards are given to someone for performing an interesting task, it causes intrinsic interest in the task itself to decline.

Cognitive Evaluation Theory- SummaryProviding an extrinsic reward for behavior that had been

previously only intrinsically rewarding tends to decrease the overall level of motivation

Major Implications for work rewards Intrinsic and extrinsic rewards are not independent Extrinsic rewards decrease intrinsic rewards Pay should be noncontingent on performance Verbal rewards increase intrinsic motivation; tangible rewards

reduce it Self-concordance

When the personal reasons for pursuing goals are consistent with personal interests and core values (intrinsic motivation), people are happier and more successful

Bandura’s Self-Efficacy Theory An individual’s belief that he or she is

capable of performing a task. Higher efficacy is related to:

Greater confidence Greater persistence in the face of difficulties Better response to negative feedback (work harder)

How can managers achieve high levels of self- efficacy?

Self-Efficacy complements Goal-Setting Theory.

Increasing Self-Efficacy Enactive mastery

Most important source of efficacy Gaining relevant experience with task or job “Practice makes perfect”

Vicarious modeling Increasing confidence by watching others perform the

task Most effective when observer sees the model to be similar

to him- or herself Verbal persuasion

Motivation through verbal conviction Pygmalion and Galatea effects - self-fulfilling prophecies

Arousal Getting “psyched up” – emotionally aroused – to

complete task Can hurt performance if emotion is not a component of

the task

Adams’ Equity Theory: Role of Equity in MotivationEmployees make comparisons of their job inputs

(i.e. effort, experience, education, competence) and outcomes (i.e. salary levels, raises,

recognition) relative to others. Ratio Comparisons Perception O O Inequity IA IB (Inderrewarded) O O Equity IA IB O O Inequity IA IB (Overrewarded) A- Employee; B- Relevant others

Information about referents & its attractiveness

Ind. differences

Adams’ Equity Theory (Contd. …) ‘Inequity tension’ motivates people to act to bring their

situation into equity. The ‘referent’ that an employee selects- adds to the

complexity of equity theory. 4 Referent Comparisons, that an employee uses: 1. Self-Inside

The person’s experience in a different job in the same organization

2. Self-Outside The person’s experience in a different job in a different

organization 3. Other-Inside

Another individual or group within the organization 4. Other-Outside

Another individual or group outside of the organization

Reactions to Inequity Factors effecting ‘referent comparison’ Employee behaviors to create equity:

Change inputs (slack off/ exerting less effort) Change outcomes (increase output or piece- rate) Distort/change perceptions of self Distort/change perceptions of others Choose a different referent person Leave the field (quit the job)

Justice and Equity Theory

Overall perception of what is fair in the workplace.

Vroom’s Expectancy TheoryThe strength of a tendency to act in a certain way (or MOTIVATION) depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of the outcome to the individual. Expectation/ Belief

- Effort will lead to a good performance appraisal

-A good appraisal will leadto organizational rewards

(bonuses, promotions, salaryhike etc. )

-Employee’s personal goals will be satisfied/ met by

these rewards

MOTIVATION

E PExpectancy

P RExpectancy

R PGExpectancy

Vroom’s Expectancy Theory

Integrating Contemporary Motivation Theories Based on Expectancy Theory