The document discusses several theories of motivation: Cognitive Evaluation Theory proposes that extrinsic rewards can decrease intrinsic motivation; Goal Setting Theory asserts that specific, difficult goals lead to higher performance; Self Efficacy Theory involves an individual's belief in their ability to succeed; Reinforcement Theory focuses on the relationship between behaviors and consequences; Equity Theory examines fairness in compensation; and Expectancy Theory states that motivation depends on expectations of effort leading to results and rewards. The document provides details on each theory's key concepts and how they relate to understanding employee motivation.

2.  What is motivation?
 Contemporary theories of motivation
-Cognitive Evaluation Theory
-Goal Setting Theory
-Self Efficacy Theory
-Reinforcement Theory
-Equity Theory
-Expectancy Theory

3. What is motivation?
 Motivation is the process that account for an individual’s
intensity, direction and persistence of effort toward
attaining a goal.
 Motivation is the result of the interaction between an
individual and a situation.
 Motivation process is universal, all people are motivated
to pursue goals they value.
 The level of motivation varies both between individuals
and within individuals at different times.

4. Contemporary theories
of motivation
Each contemporary theory has a reasonable degree of valid supporting
documentation. We call them “contemporary theories” not because
they were all developed recently but because they represent current
state of thinking in explaining employee motivation.
 Cognitive Evaluation Theory
 Goal Setting Theory
 Self Efficacy Theory
 Reinforcement Theory
 Equity Theory
 Expectancy Theory

5. Cognitive Evaluation Theory
 A theory that states that allocating extrinsic rewards for behavior that had been
previously intrinsically rewarding tends to decrease the overall level of motivation.
 When looking at task, we evaluate it in terms of how well it meets our needs to feel
competent and in control. If we think we will be able to complete the task, we will be
intrinsically motivated to complete the task, requiring no further external motivation.
 People may see external rewards as achieving some degree of control over them or
may see the reward as informational, such as where they reinforce feelings of
competence and self-determination. When people see the reward as mostly for control
they will be motivated by gaining the reward but not by enacting the requested
behavior.

7.  A recent outgrowth of cognitive evaluation theory is self
concordance, which considers the degree to which people’s reasons
for pursuing goals are consistent with their interests and core
values.
For example: If individuals pursue goals because of an intrinsic
interest, they are more likely to attain goals and are happy even if
they don’t attain them.
In contrast, people who pursue goals for extrinsic reasons are less
likely to attain their goals and are less happy even when they do
achieve them.

8. Goal Setting Theory
 A theory that says that specific and difficult goals with feedback, lead to
higher performance.
 According to Edwin Locke, intentions to work toward a goal are a major
source of work motivation.
 Goals tell an employee what needs to be done and how much effort will need
to be extended.
 “More difficult the goal, higher the level of performance” because:
 Challenging goals help to get our attention and tend to help us focus.
 Difficult goals energize us because we have to work harder to attain them.

9.  When goals are difficult, people persist in trying to attain them.
 Difficult goals lead us to discover strategies that help us to perform the job or task
more efficiently.
 People do better when they get feedback on how well they are progressing toward
their goals because feedback helps to identify discrepancies between what they have
done and what they want to do; that is , feedback acts to guide behavior.
 Factors that have been found to influence the goals-performance relationship are:
o Goal commitment-Goal setting theory presupposes that an individual is committed
to the goal. Individual believes that he/she can achieve the goal or wants to achieve it.

10. o Task characteristics-Goals seem to have a more substantial
effect on performance rather than complex and independent
rather than interdependent.
o National culture-Goal setting theory is culture bound. It
assumes that employees will be reasonably independent, that
managers and employee will seek challenging goals and that
performance is considered important by both.

11. Self Efficacy Theory
 Self efficacy(also known as social cognitive theory or social learning theory)
refers to an individual’s belief that he/she is capable of performing a task.
 Higher your self efficacy, the more confidence you have in your ability to
succeed in a task and respond to negative feedback with increased effort and
motivation.
 Self efficacy can be increased by four ways:
o Enactive mastery-gaining relevant experience with the task or job.
o Vicarious modeling-becoming more confident because you see someone
else doing the task.

12. o Verbal persuasion-becoming more confident because convinces
you that you have the skills necessary to be successful.
o Arousal-leads to an energized state, which drives a person to
complete a task. But, when arousal is not relevant, then arousal hurts
performance.
 Goal setting theory and self efficacy theory don’t compete with one
another; rather they complement each other.

13. Reinforcement Theory
 A theory that says that behavior is a function of its consequences.
 Ignores internal state of a person.
 Focuses only on what happens to a person as a result of an action
taken.
 Ignores elements like: feelings, attitudes, expectations etc.
 “Understand relationship between behaviors and
consequences….arrange contingences that reinforce desirable
behaviors and discourage undesirable behaviors”.
STIMULUS ====== RESPONSE =====
CONSEQUENCE

14. Types of Reinforcement
EMPLOYEE
BEHAVIOR
TYPE OF
REINFORCEMENT CONSEQUENCE
EMPLOYEE
BEHAVIOR (Future)
Improved Performance Positive Praise improvement Repeat quality work
Improved Performance Negative Do not give any reprimand Repeat quality work
Performance not
improved
Extinction Withhold praise/raise Do not repeat poor work
Performance not
improved
Punishment
Discipline action, such as
written warning
Do not repeat poor work

15. Equity Theory
 A theory that says that behavior is a function of its consequences.
 Motivation is influenced significantly by others’ rewards as well as by one’s own
rewards.
 Most research has focused on pay, but employees seem to look for equity in the
distribution of other rewards.
 Historically, equity theory focused on distributive justice. But increasingly equity is
thought of from the standpoint of organizational justice.
 Managers should consider openly sharing information on how allocation decisions
are made, following consistent and unbiased procedures.

16. Ratio Comparisons Perception
O/IA < O/IB Inequity – under rewarded
O/IA = O/IB Equity
O/IA > O/IB Inequity – over rewarded

17. Model of organizational justice
DISTRIBUTIVE
JUSTICE
PROCEDURAL
JUSTICE
INTERACTIONAL
JUSTICE
Perceived fairness of
amount the amount and
allocation of rewards
Perceived fairness of
process used to determine
the distribution
Perceived degree to which
an individual is treated
with dignity, concern and
respect
Organizational Justice
Overall perception of what is fair in the workplace

18. Expectancy Theory
 The strength of a tendency to act in a certain way depends on
the strength of an expectation that the act will be followed by a
given outcome and on the attractiveness of that the outcome to
the individual.
Indivudual
Effort
1 2 3
 The theory focuses on three relationships:
1. Effort-performance.
2. Performance-reward.
3. Rewards-personal goals.
Personal
Goals
Organizational
Rewards
Individual
Performance

19.  Assumptions:
 Both internal (needs) and external (environment) affect
behavior;
 Behavior is individual’s decision;
 People have different needs, desires & goals;
 People make behavior decisions based on their
perception of outcome

20. Motivation = Expectancy * Instrumentality * Valance
I can achieve
this target
I will get a
reward
Winning this
reward is
important for
me