Human Behavior in Organization - Motivation

1. HUMAN BEHAVIOR
IN
ORGANIZATION
MR. NAJIBULLAH A. UMPA, RN, MBA
AY 2016-2017 (2nd TRIMESTER)

2. MOTIVATING PEOPLE TO WORK
CHAPTER 5

3. MOTIVATION
The Basics
Contemporary
Motivational
Theory
Rewards and
Incentives
What is
Motivation
Importance in
Management
Intrinsic
Rewards
Extrinsic
Rewards
Expectancy
Theory
Need
Theory
Equity
Theory
Goal-Setting
Theory
Job Design
Theory
The ERG
Theory
Maslow’s
Hierarchy

5. Defining Motivation
• Motivation – the process that accounts for an
individual’s intensity, direction, and
persistence of efforts toward attaining a goal.
Key Elements:
• Intensity – how hard a person tries
• Direction – toward beneficial goal
• Persistence – how long a person tries

6. IMPORTANCE IN MANAGEMENT
“MOTIVATE PEOPLE TOWARDS EXCELLENT
PERFORMANCE! IT IS THE PRIMARY TASK OF MANAGERS.”
Similarly, motivation is important to a business as:
• The more motivated the employees are, the more
empowered the team is.
• The more is the team work and individual employee
contribution, more profitable and successful is the
business.
• During period of amendments, there will be more
adaptability and creativity.
• Motivation will lead to an optimistic and challenging
attitude at work place.

8. REWARDS AND INCENTIVES
• Rewards and incentives in the workplace
have benefits for both employees and
employers. When recognized for stellar
performance and productivity, employees
have increased morale, job satisfaction
and involvement in organizational
functions. As a result, employers
experience greater efficiency and an
increase in sales and productivity.
Through workplace rewards and
incentives, employers and workers enjoy
a positive and productive work
environment.

9. INTRINSIC REWARD
• Intrinsic rewards are the non-physical rewards.
• They cannot be seen or touched but are
emotionally connected with the employees. In
other words, intrinsic rewards can be defined as
the feeling of contentment one finds in
completion of any task.
• Intrinsic reward is directly related to job
performance as a successful task automatically
produces it. Higher the success rate, higher will
be the rate of intrinsic rewards one receives.

10. • Different people have different
perception and therefore, there are
various forms of intrinsic rewards,
some of which are:
EXAMPLES:
 Sense of achievement
 Words of praise from the seniors
 Recognition
 Taking pride from the job
 Work freedom or autonomy

11. EXTRINSIC REWARD
• Extrinsic rewards are the physical ones that come
from an external source (employers) only. A
properly designed extrinsic reward can also be
emotionally attached with the employees as
employees value such rewards.
• An extrinsic reward is also directly related to job
performance of the employees but it is necessary
that employees receive reward every time they
accomplish the task. It depends upon the policy of
the company.
• There are various ways a company can choose to
reward its employees. Some examples of extrinsic
rewards are:

12. EXAMPLES OF EXTRINSIC REWARD
• Pay
• Bonus or commission
• Fringe benefits
• Improved working condition
• Promotion
• Profit sharing

14. NEED THEORY
• David McClelland’s Theory of Needs
– Need for Achievement – the drive to excel,
to achieve in relation to a set of standards,
to strive to succeed
– Need for Power – the need to make others
behave in a way that they would not have
behaved otherwise
– Need for Affiliation – the desire for friendly
and close personal relationships

15. MASLOW HIERARCHY OF NEEDS
• There is a hierarchy of five needs-
physiological, safety, social, esteem,
and self actualization; as each need is
substantially satisfied, the net need
becomes dominant.
• Self-actualization
– The drive to become what one is capable
of becoming.

16. A SATISFIED NEED IS NO LONGER A MOTIVATOR.
AS ONE NEED IS SATISFIED, ANOTHER NEED
EMERGES

17. NEED SATISFACTION APPROACH TO
MOTIVATION
INTERNAL NEEDS BEHAVIOR OUTCOME
NEEDS SATISFACTION
WE SATISFY THEIR NEEDS BECAUSE THEY BEHAVE
IN ORDER TO SATISFY THEIR NEEDS

18. THE ERG THEORY
• There are three groups of core needs:
Existence, Relatedness, and Growth.
CORE NEEDS CONCEPTS
EXISTENCE – PROVISION OF
BASIC MATERIAL
REQUIREMENTS
RELATEDNESS – DESIRE FOR
RELATIONSHIP
GROWTH – DESIRE FOR
PERSONAL DEVELOPMENT
“MORE THAN ONE NEED CAN
BE OPERATIVE AT THE SAME
TIME.”
“IF A HIGHER-LEVEL NEED
CANNOT BE FULLFILLED, THE
DESIRE TO SATISFY A LOWER
LEVEL NEED INCREASES.”

19. EQUITY THEORY
• Individuals compare their job inputs
and outcomes with those of others and
then respond to eliminate any
inequities.
• Choices for dealing with inequity:
– Change inputs (slack off)
– Change outcomes (increase output)
– Distort/change perceptions of others
– Choose a different referent person
– Leave the field (quit the jobs)

20. • Propositions relating to inequitable
pay:
–Over rewarded hourly employees
produce more than equitably
rewarded employees.
–Over rewarded piece-work employees
produce lower quality work.
–Under rewarded employees produce
larger quantities of lower-quality
piece work than equitably rewarded
employees

21. • Distributive Justice
–Perceived fairness of the amount and
allocation of rewards among
individuals.
• Procedural Justice
–The perceived fairness of the process
to determine the distribution of
rewards.

22. EXPECTANCY THEORY
• Employee’s motivation is an outcome
of how much an individual wants a
reward (valence), the assessment that
the likelihood that the effort will lead to
expected performance (expectancy)
and the belief that the performance will
lead to reward (instrumentality)

23. VALENCE
• Is the significance associated by an
individual about the expected outcome.
It is an expected and not the actual
satisfaction that an employee expects to
receive after achieving the goals.

24. EXPECTANCY
(performance expectancy)
• Is the faith that better efforts will result in
better performance
Expectancy is influenced by factors such as
possession of appropriate skills for
performing the job. Availability of right
resources, availability of crucial information
and getting the required support for
completing the job.

25. INSTRUMENTALITY
(reward expectancy)
• Is the faith that if you perform well, then a
valid outcome will be the result.
Instrumentality is affected by factors such
as believe in people who decide who
receives what outcomes are, the simplicity
of the process deciding who gets what
outcomes, and clarity of relationship
between performance and outcomes.

26. EXPECTANCY THEORY RELATIONSHIPS
 REWARDS-PERSONAL GOALS
RELATIONSHIPS
The degree to which organizational rewards satisfy an
individual’s goals or needs and the attractiveness of
potential rewards for the individual.
 EFFORT-PERFORMANCE RELATIONSHIPS
 The probability that exerting a given amount of effort
will lead to performance
 PERFORMANCE-REWARD RELATIONSHIP
 The belief that performing at a particular level will
lead to the attainment of a desired outcome.

27. EFFORT PERFORMANCE REWARD
Perceived effort –
performance
probability
Perceived
Performance
Reward probability
Perceived
value
Of reward
“If I work hard,
will I get the job
done?”
“What rewards will
I get when the job
is well done?”
“What rewards
do I value?”

28. Managerial Implications of Expectancy
Theory
People exert
work effort
Task
Performance
To achieve And realize Work-related
outcomes
EXPECTANCY
Select capable workers,
train them, support
them and set clear goals
INSTRUMENTALITY
Clarity possible rewards
for performance, give
performance contingent
reward
VALENCE
Identify needs and
match rewards to needs

29. Advantage of Expectancy Theory
It is based on self-interest individual who want
to achieve maximum satisfaction and who
wants to minimize dissatisfaction.
This theory stresses upon the expectations and
perception
It emphasizes on rewards or pay-offs
It focuses on physiological extravagance where
final objective of individual is to attain
maximum pleasure and least pain.

30. Limitations of Expectancy Theory
The expectancy theory seems to be
idealistic because quite a few individuals
perceive high degree correlation between
performance and rewards.
The application of this theory is limited as
reward is not directly correlated with
performance in many organizations. It is
related to other parameters also such as
position, effort, responsibility, education,
etc.

31. GOAL SETTING THEORY
• The famous goal setting theory was put forward by
Dr. Edwin Locke in the late 1960’s. Linking goals to
performance.
• According to this theory – the individuals are
motivated when they behave in ways that move
them to certain goals they can expect to attain.
• Goals should be acceptable by the individual as
long as they are accepted, demanding goals lead
to better performance than easy goals.

32. GOAL SETTING
• Is the process of developing, negotiating,
and formulating the targets or objectives
that a person is responsible for
accomplishing.

33. GOALS SHOULD BE SPECIFIC,
MEASURABLE AND TIME-BOUNDED
• Goals such as “Become a top sales” or “Sell as
many products as I can” are to vague and
therefore have no effect on motivation.
Instead, you should set more specific goals.
Specific means quantitative.
“Sell 500 products per month” This is a specific
target, you will use specific result as a source of
motivation and you will perform better.

34. GOALS SHOULD BE CHALLENGING
• Make each goal a challenge to you. If the
goal is easily achievable, without difficulty, it
is not very motivational.
• Hard goals are more motivating than easy
goals, because when your are challenging a
goal, you will try your best and generate
enough enthusiasm to get it done.

35. GOALS SHOULD BE ACHIEVABLE
• If the goals are not realistic for you to
achieve, you may lose confidence in the
end. So, when you set a goal, make sure
you can achieve it.
• The goal should be challenging and
difficult, and you believe that you can
achieve it too.

36. Management By Objectives
(MBO)
Is an approach whereby individuals in an
organization pursue objectives which are
mutually set and agreed upon by them and
their respective managers in a determined
time period.
Performance reviews are made to
monitor the progress by which objectives
are achieved. Rewards are also given
accordingly.

38. MBO Work Process
SUPERVISOR
SUBORDINATE
Jointly establish
Performance goals:
Subordinates
actively
participates in
developing
performance goals
Individually act:
Subordinates
perform tasks while
supervisor coaches
and provides
support
Jointly evaluate
results and recycle
MBO process
Subordinates
actively
participates in
performance
review

39. JOB DESIGN
• The process through which managers plan
and specify job tasks and the work
arrangements that allow them to be
accomplished.

40. JOB DESIGN GOALS
• To meet the organizational requirement such as
higher productivity, operational efficiency, quality
of product / service.
• To satisfy the needs of the individual employees
like interest, challenges, achievement or
accomplishment.
• Integrate the needs of the individual with the
organizational requirement.

41. Engineering Approach
• The work of every workman is fully planned
out by the management at least one day in
advance. Each employee receives in most
cases written instructions, describing in detail
the task which they must accomplish.
• Problem with this approach: Repetition
mechanical pacing – no end product – little
social interaction – no input.

42. HUMAN APPROACH
• The human relations approach recognized the
need to design jobs which are interesting and
rewarding.
• Herzberg’s research popularized the notion of
enhancing need satisfaction through what is
called job enrichment
• Motivators like achievement, recognition, work
itself, responsibility, advancement and growth.

43. JOB DESCRIPTION APPROACH
• Theory by Hackman and Oldham states
that employee will work hard when they
are rewarded for the work they do and
when the work gives them satisfaction.
Hence, integration of motivation,
satisfaction, and performance with job
design is important.

44. CORE JOB DESCRIPTION
• SKILL VARIETY – the degree which job
requires a variety of activities that involve
different skills and talents.
• TASK IDENTITY – the degree to which the
job requires completion of a “whole” and an
identifiable piece of work. Job has beginning
and an end with a tangible outcome.

45. • TASK SIGNIFICANCE – the degree to which job
affects the lives or work of other people, both in
the immediate organization and in the external
environment.
• AUTONOMY – the degree to which the job allows
the individual substantial freedom, independence,
and discretion to schedule the work and determine
the procedures for carrying it out.
• FEEDBACK – the degree to which job activities
give the individual direct and clear information
about the effectiveness of his or her performance.

46. REFERENCES
• http://smallbusiness.chron.com/rewards-
incentives-workplace-11236.html
• https://www.businesstopia.net/human-
resource/intrinsic-and-extrinsic-rewards
• Basic Motivation Concepts and Application,
2011 by Engr. Catherine T. Caoile retrieved
from www.slideshare.com
• Motivating People to Work by Edna Delantar
retrieved from www.slideshare.com