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Principle of Management
Week 8
Motivating Employees.

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• Table of contents;
– Reading exercise – Grupo M..
– Motivation and motivations theory.
• Early theories of motivation.
– Maslow’s Hierarchy of needs.
– McGregor’s Theory X and Theory Y.
– Herzberg’s Hygiene Theory.
• Contemporary theories of motivation.
– Three Needs Theory
– Contents versus process theories.
– Goal setting theory.
– Reinforcement theory.
– Designing Motivating jobs.
– Equity theory.
– Expectancy theory.
– Current issues on motivation.
– Motivation: from theories to practice.
– Reading assignment (Group Discussion and presentation).
– Summary.
– Motivating your self.

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Motivation
Theories.
Current Issues.
Theories into
Practice.

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• Motivation:
– The willingness to exert high levels of effort to reach organisational
goals, conditioned by the effort’s ability to satisfy some individual needs.
• Need:
– An internal state that makes certain outcomes appear attractive.
Unsatisfied
Need
Tension Drives
Search
behaviour
Satisfied
Need
Reduction of
Tension
The Motivation Process

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• Hierarchy of needs theory:
• Maslow’s theory that there is a hierarchy of five human needs, physiological,
safety, social, esteem and self actualisation.
• Physiological.
• Food, drink, shelter, sexual satisfaction and other physical requirements.
• Safety needs.
• Security and protection from physical and emotional harm, as well as assurance
that physical needs will continue to be met.
• Social needs.
• Affection, belongingness, acceptance and friendship.
• Esteem needs.
• Internal esteem factors such as self respect, autonomy and achievement and external
esteem factors such as status, recognition and attention..
• Self actualisation needs.
• Growth, achieving one’s potential and self fulfillment, the drive to become what
one is capable of becoming.
Maslow’s Hierarchy of Needs

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Self
Actualisation
Esteem
Social
Safety
Physical
Maslow’s Hierarchy of Needs

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McGregor’s Theory X and Theory Y.
• Theory X:
• The assumption that employees dislike work, are lazy, seek to
avoid responsibility and must be coerced to perform.
• Theory Y:
• The assumption that employees are creative, seek responsibility and
Can exercise self direction.
• Assumptions:
• Theory X:
– Employees inherently dislike work and
will attempt to avoid it whenever possible.
– Employees must be coerced, controlled
or threatened with punishment to achieve
desired goals.
– Employees will shirk responsibilities and
seek formal direction whenever possible.
– Most workers place security above all
other factors associated with work and
will display little ambition.
• Theory Y:
– Employees view work as being as natural
as rest or play.
– Employees will exercise self direction and
self control if they are committed to the
objectives.
– The average person can learn to accept,
and even seek responsibility.
– The ability to make good decisions is
widely dispersed throughout the
population and is not necessarily the
ability solely of managers.

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• Herzberg’s motivation: Hygiene Theory.
– The motivation theory that intrinsic factors are related
to job satisfaction and motivation, where as extrinsic
factors are associated with job dissatisfaction.
• Hygiene Factors:
– Factors that eliminate job dissatisfaction but do not
motivate.
• Motivators:
– Factors that increase job satisfaction and motivation.

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Motivator Hygiene Factors
• Achievement.
• Recognition.
• Work itself.
• Responsibility.
• Advancement.
• Growth.
• Supervision.
• Company policy.
• Relationship with
supervisor.
• Working conditions.
• Salary.
• Relationship with peers.
• Personal life.
• Relationship with
subordinates.
• Status.
• Security.
Extremely Satisfied Neutral Extremely Dissatisfied
Herzberg’s Motivation Hygiene Theory

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• McClelland’s Three Needs Theory:
– The motivation theory that says that three needs –
achievement, power and affiliation – are major motives in work.
• Need for achievement: (nAch)
– The drive to excel, to achieve in relation to a set of standards,
and to strive to succeed.
• Need for power: (nPow)
– The need to make others behave in a way that they would not
have behave otherwise.
• Need for Affiliation: (nAff)
– The desire for friendly and close interpersonal relationship.

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• Goal setting theory:
– The proposition that specific goals increase performance and that difficult
goals, when accepted, result in higher performance than do easy goals.
• Self Efficacy:
– An individual’s belief that he or she is capable of performing a task.
Specific
Goals
Difficult
Self efficacy
Motivation
(Intention to work
Towards goals)
National
Culture
Committed to
achieving.
Participation
In setting.
Accepted.
Higher Performance
Plus
Goal achievement.
Goals are public.
Individual has internal focus of control.
Self set Goals.
Goal Setting Theory

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• Reinforcement theory:
– The theory that behaviour is a function of its consequences.
• Reinforcer:
– Any consequence immediately following a response that increases the
probability that the behaviour will be repeated.

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• Designing Motivating Jobs:
• Job design:
– The way tasks are combined to form complete jobs.
• Job scope:
– The number of different tasks required in a job and the
frequency with which those tasks are repeated.
• Job enlargement:
– The horizontal expansion of a job by increasing job scope.
• Job enrichment:
– Vertical expansion of a job by adding planning and evaluating
responsibilities.
• Job depth:
– The degree of control employee have over their work.

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• Designing Motivating Jobs:
• Job characteristics model (JCM):
– A framework for analysing and designing jobs that identifies five
primary job characteristics, their interrelationships and their
impact on outcomes.
• Skill variety: The degree to which a job requires variety of activities
so that an employee can use a number of different skills and talents.
• Task identity: The degree to which a job requires completion of a
whole and identifiable piece of work.
• Task significance: The degree to which a job has a substantial
impact on the lives or work of other people.
• Autonomy: The degree to which a job provides substantial freedom,
independence and discretion to the individual in scheduling work
and determining the procedures to be used in carrying it out.
• Feedback : The degree to which carrying out the work activities
required by a job results in the individual’s obtaining direct and clear
information about his or her performance effectiveness.

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Core Job
Dimensions
• Skill variety.
• Task identity.
• Task significance.
• Autonomy.
• Feedback.
Critical
Psychological states
• Experienced
Meaningfulness.
Of the works.
• Experienced responsibility
For outcomes of the work.
•Knowledge of the actual
Results of the work activities.
Personal and
Work outcomes
• High internal
Work motivation.
•High quality
Work performance.
•High satisfaction
With the work.
• Low absenteeism
And turnover.
Strength of employees growth need
Job Characteristic Model

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External
Conditions
Imposed on
The group.
Group members
resources.
Group
structure.
Group
Processes.
Group Tasks.
Performance and
satisfaction.
Group Behaviour Model.

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Suggested action Core job dimension
Combine tasks
Form natural work units
Skill variety
Establish client relationships
Task identity
Task significance
AutonomyLoad vertically
FeedbackOpen feedback channels
Guidelines for Job Redesign

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• Outcomes A < Outcome B
Inputs A Inputs B
• Outcome A = Outcome B
Input A Input B
• Outcome A > Outcome B
Input A Input B
• Inequity (Under rewarded)
• Equity.
• Inequity (Over rewarded)
Equity theory:
– The theory that an employee compares his or her job’s input-outcome ratio with that
of relevant others and then correct any inequity.
• Referents:
– The persons, systems or selves against which individuals compare themselves to
assess equity.

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• Expectancy theory:
– The theory that an individual tend 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.
Individual
Effort
Individual
Performance
Organisational
Rewards
Individual
Goals
A B C
A = Effort – performance linkage.
B = Performance – reward linkage.
C = Attractiveness of reward.
Simplified Expectancy Model

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Individual
Effort
Individual
Performance
Organisational
Rewards
Individual
Goals
Equity
Comparison
High
nAch
Job
Design.
Dominant
Needs
Reinforcement
Objective
Performance
Evaluation
system
Job
Design.
Ability
Goal- direct behaviour
Integrating
Contemporary Theories
Of Motivation

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• Motivating diverse workforce:
• Flexible working schedules:
– Compressed work week: A workweek in which employee work longer hours per
day but fewer days per week.
– Flexible hours: A scheduling system in which employee are required to work a
certain number of hours a week, but are free within limits to vary the daily hours
of work.
– Job sharing: The practice of having two or more people split a full time job.
– Telecommuting: A job approach in which employees work at home and are
linked to the work place by computer and modem.
• Pay for Performance:
– Compensation plan that pays employees on the basis of some performance
measures.
• Open book management:
– A motivational approach in which and Organisational financial statements (the
book) are shared with all the employees.
• Employee share ownership:
– A compensation program in which employees become part owners of the
organisation by receiving shares as a performance incentive.

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Motivating new workforce:
• Motivating professional.
• Motivating contingent workers.
• Motivating low skilled, minimum wage
employees.
• Motivating in an international context.

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Suggestions for motivating employees:
• Recognise individual differences.
• Match people to jobs.
• Use Goals.
• Ensure goals are perceived as attainable.
• Individual rewards.
• Link rewards to performance.
• Check system for equity.
• Do not ignore money.

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Summary.
1. Motivation define.
2. Needs theory.
3. Theory X and Theory Y.
4. Motivation hygiene.
5. High achievers preferences.
6. Goals as motivation.
7. Reinforcement theory.
8. Job redesign.
9. Equity theory.
10. Expectancy theory.
11. Motivating diverse workforce.
12. Motivation in the management practice.