Motivation theories Mashlow, Hezberg, Mccllened

1. MOTIVATION AND PERFORMANCE
BY:- SHRIKANT R. RANA
1
Principles of Management

2. The Nature of Motivation
2
Motivation
 The set of forces that cause people to behave in certain
ways.
 The goal of managers is to maximize desired behaviors
and minimize undesirable behaviors.
The Importance of Motivation in the Workplace
 Determinants of Individual Performance
 Motivation—the desire to do the job.
 Ability—the capability to do the job.
 Work environment—the resources to do the job.
16–2

3. The
Motivation Framework
3
16–3

4. Content Perspectives on Motivation
4
Content Perspectives
 Approaches to motivation that try to answer the question,
“What factors in the workplace motivate people?”
Content Perspectives of Motivation
 Maslow’s Hierarchy of Needs
 Aldefer’s ERG Theory
 Herzberg’s Two-Factor Theory
 McClelland’s Achievement, Power, and Affiliation Needs
16–4

5. Content Perspectives on Motivation (cont’d)
5
The Need Hierarchy Approach
 Maslow’s Hierarchy of Needs
 Physiological—basic survival and biological function.
 Security—a safe physical and emotional environment.
 Belongingness—love and affection.
 Esteem—positive self-image/self-respect and recognition and
respect from others.
 Self-actualization—realizing one’s potential for personal growth
and development.
 Weakness of Maslow’s theory
 Five levels of need are not always present.
 Ordering or importance of needs is not always the same.
 Cultural differences.
16–5

6. Maslow’s Hierarchy of Needs
6
16–6

7. Content Perspectives on Motivation (cont’d)
7
The ERG Theory
 Needs are grouped into three overlapping categories:
 Existence needs—physiological and security needs.
 Relatedness needs—belongingness and esteem by others.
 Growth needs—self-esteem and self-actualization.
 ERG theory assumes that:
 Multiple needs can be operative at one time (there is no absolute
hierarchy of needs).
 If a need is unsatisfied, a person will regress to a lower-level need
and pursue that need (frustration-regression).
16–7

8. Content Perspectives on Motivation (cont’d)
8
The Two-Factor Theory (Herzberg)
 Satisfaction and dissatisfaction are influenced by two
independent sets of factors.
 Theory assumes that job satisfaction and job
dissatisfaction are on two distinct continuums:
 Motivational factors (work content) are on a continuum that ranges
from satisfaction to no satisfaction.
 Hygiene factors (work environment) are on a separate continuum
that ranges from dissatisfaction to no dissatisfaction.
16–8

9. Content Perspectives on Motivation (cont’d)
9
The Two-Factor Theory (cont’d)
 Theory posits that motivation is a two-step process:
 Ensuring that the hygiene factors are not deficient and not
blocking motivation.
 Giving employees the opportunity to experience motivational
factors through job enrichment.
16–9

10. The Two-Factor Theory of Motivation
10
16–10

11. Content Perspectives on Motivation (cont’d)
11
Individual Human Needs (McClelland)
 The need for achievement
 The desire to accomplish a goal or task more effectively than in
the past.
 The need for affiliation
 The desire for human companionship and acceptance.
 The need for power
 The desire to be influential in a group and to be in control of one’s
environment.
Implications of the Content Perspectives
 Content (what causes motivation) → Process (how motivation occurs)
16–11

12. Process Perspectives on Motivation
12
Process Perspectives
 Approaches to motivation that focus on:
 Why people choose certain behavioral options to satisfy their
needs
 How they evaluate their satisfaction after they have attained their
goals.
Process Perspectives of Motivation
 Expectancy Theory
 Porter-Lawler Extension of Expectancy Theory
 Equity Theory
 Goal-Setting Theory
16–12

13. Process Perspectives on Motivation (cont’d)
13
 Expectancy Theory
 Motivation depends on how much we want something and how likely
we are to get it.
 Assumes that:
 Behavior is determined by personal and environmental forces.
 People make decisions about their behavior in organizations.
 People have different types of needs, desires, and goals.
 People choose among alternatives of behaviors in selecting one
that that leads to a desired outcome.
 Motivation leads to effort that, when combined with ability and
environmental factors, results in performance which leads to
various outcomes that have value (valence) to employees.
16–13

14. Process Perspectives on Motivation (cont’d)
14
Elements of Expectancy Theory
 Effort-to-Performance Expectancy
 The employee’s perception of the
probability that effort will lead to a high level
of performance.
 Performance-to-Outcome Expectancy
 The employee’s perception of the
probability that performance will lead to a
specific outcome—the consequence or
reward
for behaviors in an organizational setting.
16–14

15. Process Perspectives on Motivation (cont’d)
15
Elements of Expectancy Theory (cont’d)
 Valence
 An index of how much an individual values a particular outcome.
 It is the attractiveness of the outcome to the individual.
 Attractive outcomes have positive valences and unattractive outcomes
have negative valences.
 Outcomes to which an individual is indifferent have zero valences.
 For motivated behavior to occur:
 Both effort-to-performance expectancy and performance-to-
outcome expectancy probabilities must be greater than zero.
 The sum of the valences must be greater than zero.
16–15

16. The Expectancy Model of Motivation
16
16–16

17. Process Perspectives on Motivation (cont’d)
17
The Porter-Lawler Extension of Expectancy
Theory
 Assumptions:
 If performance results in equitable and fair rewards, people will be
more satisfied.
 High performance can lead to rewards and high satisfaction.
 Types of rewards:
 Extrinsic rewards are outcomes set and awarded by external
parties (e.g., pay and promotions).
 Intrinsic rewards are outcomes internal to the individual (e.g., self-
esteem and feelings of accomplishment).
16–17

18. The Porter-Lawler Extension of Expectancy
Theory
18
16–18

19. Process Perspectives on Motivation (cont’d)
19
Equity Theory
 People are motivated to seek social equity in the rewards
they receive for performance.
 Equity is an individual’s belief that the treatment he or she
receives is fair relative to the treatment received by others.
 Individuals view the value of rewards (outcomes) and
inputs of effort as ratios and make subjective
comparisons of themselves to other people.
16–19
Outcomes(self)
inputs (self)
=
outcomes (other)
inputs (other)

20. Process Perspectives on Motivation (cont’d)
20
Equity Theory (cont’d)
 Conditions of and reactions to equity comparisons:
 Feeling equitably rewarded.
 Maintain performance and accept comparison as fair estimate.
 Feeling under-rewarded—try to reduce inequity.
 Change inputs by trying harder or slacking off.
 Change outcomes by demanding a raise.
 Distort the ratios by altering perceptions of self or of others.
 Leave situation by quitting the job.
 Change comparisons by choosing another object person.
 Feeling over-rewarded.
 Increase or decrease inputs.
 Distort ratios by rationalizing.
 Help the object person gain more outcomes.
16–20

21. Process Perspectives on Motivation (cont’d)
21
Goal-Setting Theory
 Assumptions
 Behavior is a result of conscious goals and intentions.
 Setting goals influence the behavior of people in organizations.
Characteristics of Goals
 Goal difficulty
 Extent to which a goal is challenging and requires effort.
 People work harder to achieve more difficult goals.
 Goals should be difficult but attainable.
 Goal specificity
 Clarity and precision of the goal.
 Goals vary in their ability to be stated specifically
16–21

22. Process Perspectives on Motivation (cont’d)
22
Characteristics of Goals (cont’d)
 Goal acceptance
 The extent to which persons accept a goal
as their own.
 Goal commitment
 The extent to which an individual is
personally interested in reaching a goal.
Implications of the Process
Perspectives
 If rewards are to motivate employees,
they must be perceived as being valued,
attainable, fair and equitable.
16–22

23. The Expanded Goal-setting Theory of
Motivation
23
16–23

24. Reinforcement Perspectives on Motivation
24
Reinforcement Theory
 The role of rewards as they cause behavior to change or
remain the same over time.
 Assumes that:
 Behavior that results in rewarding consequences is likely to be
repeated, whereas behavior that results in punishing
consequences is less likely to be repeated.
16–24

25. Reinforcement Perspectives on Motivation
(cont’d)
25
Kinds of Reinforcement in Organizations
 Positive reinforcement
 Strengthens behavior with rewards or positive outcomes after a
desired behavior is performed.
 Avoidance
 Strengthens behavior by avoiding unpleasant consequences that
would result if the behavior is not performed.
 Punishment
 Weakens undesired behavior by using negative outcomes or
unpleasant consequences when the behavior is performed.
 Extinction
 Weakens undesired behavior by simply ignoring or not reinforcing
that behavior.
16–25

26. Reinforcement Perspectives on Motivation
(cont’d)
26
Providing Reinforcement in Organizations
 Reinforcement schedules
 Fixed interval schedule—reinforcement applied at fixed time
intervals, regardless of behavior.
 Variable interval—reinforcement applied at variable time
intervals.
 Fixed ratio—reinforcement applied after a fixed number of
behaviors, regardless of time.
 Variable Ratio—reinforcement applied after a variable number of
behaviors, regardless of time.
16–26

27. Elements of Reinforcement Theory
27
16–27

28. Reinforcement Perspectives on Motivation
(cont’d)
28
Providing Reinforcement in Organizations (cont’d)
 Behavior modification (OB mod)
 A method for applying the basic elements of reinforcement theory
in an organizational setting.
 Specific behaviors are tied to specific forms of reinforcement.
Implications of the Reinforcement Perspectives
 Consistently applied reinforcement helps maintain
employee motivation by:
 encouraging (rewarding) positive behaviors
 discouraging (punishing) dysfunctional behaviors in an
organization.
16–28

29. Popular Motivational Strategies
29
Empowerment and Participation
 Empowerment
 Enabling workers to set their own work goals, make decisions, and
solve problems within their sphere of influence.
 Participation
 Giving employees a voice in making decisions about their work.
 Areas of participation for employees:
 Making decisions about their jobs.
 Decisions about administrative matters (e.g., work schedules).
 Participating in decision making about broader issues of product
quality.
16–29

30. Popular Motivational Strategies (cont’d)
30
Techniques and Issues in Empowerment
 Using work teams
 Collections of employees empowered to plan, organize, direct,
and control their work.
 Decentralization
 Changing the overall method of organizing the firm
 Conditions necessary for empowerment:
 Power spread to lower organizational levels
 Commitment to empowering workers
 Systematic and patient efforts to empower workers.
 Increased commitment to training.
16–30

31. Using Reward Systems to Motivate Performance
(cont’d)
31
Reward System
 The formal and informal mechanisms by which employee
performance is defined, evaluated, and rewarded.
Effects of Organizational Rewards
 Higher-level performance-based rewards motivate
employees to work harder.
 Rewards help align employee self-interest with
organizational goals.
 Rewards foster increased retention and citizenship
16–31

32. Using Reward Systems to Motivate Performance
(cont’d)
32
Merit Reward Systems
 Base a meaningful portion of individual compensation on
merit—the relative value of an individual’s contributions to
the organization.
 Employees who make greater contributions are given higher pay
than those who make lesser contributions.
Incentive Reward Systems
 Concept: employee pay is based on employee output.
 Assume that:
 Performance is under the control of the individual worker.
 The employee work at a single task continuously.
 Pay is tightly tied to performance (i.e., pay varies with output).
16–32

33. Using Reward Systems to Motivate Performance
(cont’d)
33
Incentive Reward Systems (cont’d)
 Incentive pay plans
 Piece-rate systems
 Sales commissions
 Other forms of incentives
 Non-monetary incentives (perks)
Team and Group Incentive Reward Systems
 Gainsharing programs
 Scanlon Plan
 Employee stock ownership plans (ESOPs)
16–33

34. Using Reward Systems to Motivate Performance
(cont’d)
34
Executive Compensation
 Standard forms of executive compensation
 Base salary
 Incentive pay (bonuses)
 Special forms of executive compensation
 Stock option plans
 Executive perks
 Criticism of executive compensation
 Excessively large compensation amounts
 Compensation not tied to overall performance of the organization
 Earnings gap between executive pay and typical employee pay
16–34

35. Using Reward Systems to Motivate Performance
(cont’d)
35
New Approaches to Performance-Based Rewards
 Leveraging the value of incentives
 Allowing individuals and groups in the organization to have a say
in how rewards are distributed.
 Getting increasingly innovative in incentive programs:
 Offering stock options to all employees
 Individualizing the rewards available to individuals in reward
systems
16–35