Motivation MBA

Motivation
Motivation
The result of the interaction between the individual and the
situation.
•The processes that account for an individual’s intensity, direction,

and persistence of effort toward attaining a goal – specifically, an
organizational goal.
•Three key elements:

– Intensity – how hard a person tries
– Direction – effort that is channeled toward, and
consistent with, organizational goals
– Persistence – how long a person can maintain effort

Early Theories of Motivation
•Maslow’s Hierarchy of Needs Theory
•McGregor’s Theory X and Theory Y
•Herzberg’s Two-Factor Theory
•McClelland’s Theory of Needs

Maslow’s Hierarchy of Needs
There is a hierarchy of five needs. As each need is substantially satisfied,
the next need becomes dominant.
Self-Actualization
Higher Order Esteem
Internal
Social
Lower Order Safety
External
Physiological
Source: Pearson Education, Inc. publishing as Prentice Hall

ERG Theory (Clayton Alderfer)
Concepts:
More than one need can be
operative at the same time.
Core Needs If a higher-level need cannot
be fulfilled, the desire to
Existence: provision of basic
satisfy a lower-level need
material requirements.
increases.
Relatedness: desire for
relationships.
Growth: desire for personal
development.
McGregor’s Theory X and Theory Y
• Two distinct views of human beings: Theory X
(basically negative) and Theory Y (positive
Theory X Theory Y
• Workers have • Workers are self-

little ambition directed
• Dislike work • Enjoy work
• Avoid • Accept
responsibility responsibility
Herzberg’s Two-Factor Theory
Satisfaction and dissatisfaction are not opposites but separate

Constructs.
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Herzberg’s Two-Factor Theory
Hygiene
Motivators
Factors
Extrinsic and Intrinsic and
Related to Company Related to
Growth
Policies
Dissatisfaction Satisfaction
Salary Responsibility
Work
Achievement
Conditions
Source: Pearson Education, Inc. publishing as Prentice Hall

Herzberg’s Motivation-Hygiene Theory
Source: Prentice Hall, Inc. All rights reserved.

McClelland’s Needs Theory
• Need for Achievement (nAch)
– The drive to excel, to achieve in relation to a set of
standards, to strive to succeed
• Need for Power (nPow)
– The need to make others behave in a way that they
would not have behaved otherwise
• Need for Affiliation (nAff)
– The desire for friendly and close interpersonal
relationships
MCQs
1. Who gave the two factor theory of motivation
• Maslow
• Herzberg
• Alderfer
• None of the above
2. Psychological needs are the same as
physiological needs
• True
• False
Contemporary Theories of Motivation
• Equity Theory
• Expectancy Theory
Adam’s Equity Theory
• Employees compare their ratios of outcomes-
to-inputs of relevant others.
– When ratios are equal: state of equity exists –
there is no tension as the situation is considered
fair
– When ratios are unequal: tension exists due to
unfairness
• Underrewarded states cause anger
• Overrewarded states cause guilt
– Tension motivates people to act to bring their
situation into equity
Equity Theory (cont’d)
Reactions to Inequity
Employee behaviors to create equity:
– Change inputs
– Change outcomes
– Distort/change perceptions of self
– Distort/change perceptions of others
– Choose a different referent person
– Leave the field

Vroom’s Expectancy Theory
Vroom’s Expectancy Theory
Overview of Expectancy Theory
Effort Performance Reward
Valence of
Expectancy X Instrumentality X reward
MOTIVATION
Abilities Role perceptions
and traits and opportunities
JOB
PERFORMANCE
Motivation and Behavior
• Reinforcement Theory
– Assumes that a desired behavior is a function of
its consequences, is externally caused, and if
reinforced, is likely to be repeated.
• Positive reinforcement is preferred for its long-term
effects on performance
• Ignoring undesired behavior is better than punishment
which may create additional dysfunctional behaviors.
Designing Motivating Jobs
• Job Design
– The way into which tasks can be combined to form
complete jobs.
– Factors influencing job design:
• Changing organizational environment/structure
• The organization’s technology
• Employees’ skill, abilities, and preferences
– Job enlargement
• Increasing the job’s scope (number and frequency of tasks)
– Job enrichment
• Increasing responsibility and autonomy (depth) in a job.
Designing Motivating Jobs (cont’d)
• Job Characteristics Model (JCM)
– A conceptual framework for designing motivating jobs
that create meaningful work experiences that satisfy
employees’ growth needs.
– Five primary job characteristics:
• Skill variety: how many skills and talents are needed?
• Task identity: does the job produce a complete work?
• Task significance: how important is the job?
• Autonomy: how much independence does the jobholder
have?
• Feedback: do workers know how well they are doing?
Job Characteristics Model
Source: J.R. Hackman and J.L. Suttle (eds.). Improving Life at Work (Glenview, IL: Scott, Foresman, 1977). With
permission of the authors.
Designing Motivating Jobs (cont’d)
• Suggestions for Using the JCM
– Combine tasks (job enlargement) to create more
meaningful work.
– Create natural work units to make employees’ work
important and whole.
– Establish external and internal client relationships to
provide feedback.
– Expand jobs vertically (job enrichment) by giving
employees more autonomy.
– Open feedback channels to let employees know how
well they are doing.
Integrating Contemporary Theories of Motivation
Motivation Applied
• Flexible Work/Job schedules
– Compressed work week
• Longer daily hours, but fewer days
– Flexible work hours (flextime)
• Specific weekly hours with varying arrival, departure, lunch
and break times around certain core hours during which all
employees must be present.
– Job Sharing
• Two or more people split a full-time job.
– Telecommuting
• Employees work from home using computer links.
Motivation Applied (cont’d)
• Motivating Professionals
– Characteristics of professionals
• Strong and long-term commitment to their field of
expertise.
• Loyalty is to their profession, not to the employer.
• Have the need to regularly update their knowledge.
• Don’t define their workweek as 8:00 am to 5:00 pm.
– Motivators for professionals
• Job challenge
• Organizational support of their work
• Motivating Contingent Workers
– Opportunity to become a permanent employee
– Opportunity for training
– Equity in compensation and benefits
• Motivating Low-Skilled, Minimum-Wage
Employees
– Employee recognition programs
– Provision of sincere praise
• Designing Appropriate Rewards Programs
– Open-book management
• Involving employees in workplace decision by opening up
the financial statements of the employer.
– Employee recognition programs
• Giving personal attention and expressing interest, approval,
and appreciation for a job well done.
– Pay-for-performance
• Variable compensation plans that reward employees on the
basis of their performance:
– Piece rates, wage incentives, profit-sharing, and lump-sum
bonuses
• Designing Appropriate Rewards Programs
(cont’d)
– Stock option programs
• Using financial instruments (in lieu of monetary
compensation) that give employees the right to
purchase shares of company stock at a set (option)
price.
• Options have value if the stock price rises above the
option price; they become worthless if the stock price
falls below the option price.
Guidelines for Motivating Employees
• Use goals • Check the system for equity
• Ensure that goals are • Use recognition

perceived as attainable
• Show care and concern for
• Individualize rewards
employees
• Link rewards to performance
• Don’t ignore money

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Motivation

•The processes that account for an individual’s intensity, direction,

•Three key elements:

– Direction – effort that is channeled toward, and

consistent with, organizational goals

– Persistence – how long a person can maintain effort

•Maslow’s Hierarchy of Needs Theory

•McGregor’s Theory X and Theory Y

•Herzberg’s Two-Factor Theory

•McClelland’s Theory of Needs

Source: Pearson Education, Inc. publishing as Prentice Hall

• Workers have • Workers are self-

Satisfaction and dissatisfaction are not opposites but separate

Source: Prentice Hall, Inc. All rights reserved.

Source: Pearson Education, Inc. publishing as Prentice Hall

Source: Prentice Hall, Inc. All rights reserved.

– Distort/change perceptions of self

– Distort/change perceptions of others

– Choose a different referent person

– Leave the field

Effort Performance Reward

• Use goals • Check the system for equity

• Ensure that goals are • Use recognition

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