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 MOTIVATION

MOTIVATION-

An individual’s Intensity, Direction and Persistence of effort to attain a goal is called

motivation.
• Intensity refers to how hard a person tries
• Direction means effort directed in the right way
• Persistence is how long the effort lasts. Persistence plays an important role in
lengthy goals and where there is failure in first instance.

Theories of motivation:

Traditional theories:

• Maslow’s Need hierarchy theory:

o Maslow hypothesized that within every human being, there exists a hierarchy
of 5 needs- physiological needs, safety needs, social needs, esteem needs and
self actualization needs.
(CHART)

o Physiological Needs- These include Hunger, Thirst, Shelter, Sex and other
bodily needs.

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o Safety Needs- These include physical and emotional security and protection.
o Social Needs- the need to feel a sense of affection, belongingness, acceptance
and friendship determines social needs.
o Esteem Needs- Esteem needs can be divided into internal factors and external
factors. Internal factors are those generated from one’s within like self-
respect, achievement etc and external factors are those received from outside
like status, recognition and attention.
o Self-actualization needs- the need to become what we are capable of
becoming, achieving our potential and self-fulfillment is called self-
actualization need.

o According to Maslow, though no need is ever fully gratified, a substantially

satisfied need no longer motivates. Therefore, as each of these needs becomes
substantially satisfied, the next one becomes dominant.
o Physiological and safety needs are considered lower order needs and social,
esteem, self-actualization needs are higher order needs.
o Lower order needs are satisfied externally (pay, fixed tenure, union contract)
whereas higher order needs are satisfied internally.
o One major criticism of Maslow’s theory is that there is No empirical evidence
behind the theory, no evidence that needs are organised in such a manner.

• Douglas McGregor- theory X and theory Y

o McGregor proposed 2 distinct views of human beings- one negative, labeled as theory
X and the other positive, labeled as theory Y. Manager’s deal with employees on a
grouping of assumptions and they mold their behavior towards employees according
to these assumptions.
o Under Negative view, managers believe that employees inherently dislike work, and
must be coerced or directed to perform it (Theory X). Under positive view, managers
believe that employees view work as natural as play or rest and people can be given
responsibility to work (Theory Y)

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o Theory Y also assumes that higher order needs dominate individuals. “Participative
decision making, responsible and challenging jobs, good group relations” are
approaches to maximise employee’s job motivation, as they all satisfy higher order
needs.
o Theory X assumes that lower order needs dominate individuals and they are
motivated by Pay and social security.

Theory X Theory Y
Average human being has an inherent dislike Average human being does not inherently
of work and will avoid it, if possible dislike work.
Average human being is lazy and avoids Average human being is committed to work
responsibility and he is self directed and self controlled. He
seeks responsibility
Average human being is indifferent to Average human being is committed to
organizational goals organizational objectives
Average human being prefers to be directed They have a higher degree of imagination
and wants security above all and creativity in the solution of
organizational problems.
Theory X is more applicable to unskilled, Theory Y is more applicable to educated,
uneducated, lower level workers who work skilled and professional employees.
for their basic needs of food, clothing etc.

• Frederick Herzberg- Two factor theory or motivation hygiene theory

o Herzberg tried to answer the question- “what do people want from their jobs?”
o Herzberg concluded that the replies people gave when they felt good about their
jobs differed significantly from the replies given when they felt bad.
o Respondents feeling good about a job tend to attach intrinsic factors to motivation
such as recognition, responsibility and achievement.
o Respondents feeling bad about a job tend to attach extrinsic factors to
dissatisfaction such as physical working conditions, company policy etc.

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(CHART)

o According to Herzberg, hygiene factors are external factors that remove

dissatisfaction but fail to provide satisfaction. Motivators are internal factors that
bring satisfaction.
o It was inferred by Herzberg that opposite of satisfaction is not dissatisfaction. A person
may not be dissatisfied and at the same time not motivated in an organization.
o If we link Herzberg’s theory with Maslow’s theory of needs, we get the following as
motivators and hygiene factors:
▪ Maintenance or hygiene factors- physiological, safety, social and external
esteem needs
▪ Motivators- internal esteem and self actualization needs

• McClelland- Theory of Needs

o David McClelland gave a model of motivation which is based on three types of
needs, namely
▪ Need for achievement,
▪ Need for power and
▪ Need for affiliation
o Need for achievement- Some people have a compelling drive to succeed and they
strive personal achievement rather than rewards of success that accompany it. They
have a desire to do something better or more efficiently than it has been done

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before. It is the drive to excel and to achieve in relation to a set of standards. High
achievers perform best when they have 50-50 chance of success. They dislike gambling
as well as low odds because in gambling there is no sense of achievement and in low
odds there is no challenge to their skills.
o Need for power is the need to make others behave in a way in which they would not
have behaved otherwise. It is the drive to influence others. Individuals high in need
for power enjoy being “in charge”.
o Need for affiliation is the desire for friendly and close interpersonal relationships. It is
the desire to be liked and accepted by others. Individuals with a high affiliation motive
strive for friendship, cooperation and mutual understanding.
McClelland’s research revealed that managers generally score high in the need for
achievement.

• Clayton Alderfer- Existence, Relatedness Growth (ERG) model- Maslow’s theory of 5

distinct needs has certain unexplained overlaps like overlapping between Security, social
and physiological needs. Also, lines between esteem, social and self-actualization needs
are not entirely clear. With these points in mind, Clayton Alderfer condensed Maslow’s 5
need categories into 3 sets:
o Existence needs- These include all forms of physiological and safety needs i.e
Maslow’s first two levels of needs.
o Relatedness needs- These include all needs that involve relationships with other
people we care about. Relatedness needs cover Maslow’s social needs and esteem
needs derived from other people.
o Growth needs- These needs involve persons making creative efforts to achieve full
potential in the existing environment. Maslow’s last level need of self actualization
is covered under growth needs.

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Contemporary theories:

• Self-determination theory- People prefer to feel that they have control over their actions.
So anything that makes a previously enjoyed task feel more like an obligation than a
freely chosen activity will undermine motivation.
o Self-determined goals are more rewarding intrinsically than goals determined
under an obligatory environment.
o Extrinsic rewards reduce intrinsic interest in a task. When people are paid for work,
it feels less like something they want to do and more like something they have to
do. Recent studies have stated that extrinsic rewards like monetary raise, verbal
praise etc can be motivating if rewards and deadlines are not coercive.

• Victor Vroom’s expectancy theory- According to Vroom’s theory, a person’s motivation

towards an action is determined by his perception that a certain type of action would lead
to a specific outcome and his personal preference for this outcome.
o Motivation= EXPECTANCY *INSTRUMENTALITY * VALENCE
o If any of the variable approaches zero, the probability of motivated performance
approaches zero.
o Expectancy (effort-performance) is the probability that a particular action will
lead to a desired performance. Since it is the probability of an outcome from an
action, its value ranges from 0 to 1. If the individual feels that chances of achieving
an outcome are zero, he will not even try. On the other hand, if expectancy is
higher, the individual would put higher efforts to achieve the desired outcome.
o Instrumentality (performance- reward) is the individual’s estimate that
performance would result in achieving the reward. For example, an individual
wants promotion and feels that superior performance is very important in
achieving promotion. Superior performance is first level outcome and promotion
is second level outcome. Superior performance will be instrumental in obtaining
promotion. The value of instrumentality also ranges from 0 to 1.
o Valence (reward preference) is the strength of an individual’s preference for a
reward. It is the value placed on reward. The valence of a person for a goal may

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be positive or negative depending upon his positive or negative preference for this
goal. If a person is indifferent to an outcome, his valence is 0. Thus, the range of
valence is from -1 to 1.

(CHART)

• Porter and Lawler’s Expectancy model- Improvement over vroom’s model.

o Porter and Lawler’s expectancy model is similar to Vroom’s theory. Porter and
Lawler concluded that an individual’s motivation to complete a task is affected by
the reward they expect to receive for completing the task. However Porter and
Lawler introduced additional aspects to the expectancy theory:
o Intrinsic and Extrinsic Rewards
▪ Porter and Lawler categorized the reward as intrinsic and extrinsic
▪ Intrinsic rewards are the positive feelings that the individual experiences
from completing the task e.g. satisfaction, sense of achievement.
▪ Extrinsic rewards are rewards emanating from outside the individual such
as bonus, commission and pay increases.
▪ Porter and Lawler’s model suggested that an individual’s view regarding
the attractiveness and fairness of the rewards will affect motivation and
satisfaction.

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o Ability & Perception

▪ Porter and Lawler said that motivation is also affected by
• The individual’s ability to perform the task and
• Their perception of the task

Assumptions behind the Expectancy Model:

• It is a multi variate model which means that individual behavior is determined by a
combination of factors in the individual and in the environment
• Individuals are assumed to be rational human beings who make conscious decisions
• Individuals have different needs, desires and goals
• Individuals decide between alternate behaviors based on their expectations and
such behavior will lead to a desired outcome

• Equity theory (by Stacy Adams)-

o Equity theory is based on the assumption that members of an organization
experience strong expectations of justice, balance and fairness in treatment by an
organization. When a person feels that he is being treated unfairly by the
organization, it can have adverse effects on the person’s motivation and
performance on the job. Equity theory helps in understanding causes as well as

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consequences of feelings of inequitable treatment among organization

members.
o Two variables are important to study Equity: Inputs and Outcomes.
▪ Inputs are efforts put by an individual in his job and outcomes are rewards,
which the member receives from the organization.
▪ Inputs and outcomes are compared to find out state of equity or inequity
among the members/ individuals.
▪ Individuals compare their Outcome-Input ratio with relevant others. A
state of equity exists if there is equivalence between outcome-input ratio
of self and others. When there is any form of inequity, there is equity
tension or guilt. Under-rewards create tension and anger and over-
rewards create guilt.
▪ Formula used ~~ person’s outcome/person’s inputs = other’s outcomes/
other’s inputs
o This negative state of tension and guilt provides motivation to do something to
correct it. There are four referent comparisons made by an employee:
▪ Self Inside- An employee may compare his present position to a different
position inside the same organization
▪ Self outside- An employee may compare his present situation to a situation
or position outside the employee’s organization
▪ Other inside- comparison with another individual inside the organization
▪ Other outside- comparison with another individual outside the
organization
o Based on these comparisons, 6 references are drawn and corrective action is taken
by the employee. 6 choices made in reference to any of the 4 situations are:
▪ Change input- The employee may choose to increase or decrease his inputs
to the organization. A change in input will result in less or more effort
towards performance.
▪ Change outcome- The employee may change his outcome by requesting a
salary raise or asking for a bigger office etc. He may also produce more of
the same product with lesser quality.

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▪ Distort perception of self- Rather than actually changing inputs and

outcomes, a person may change his perceptions of these factors. For
example, “I worked a lot harder than I thought”
▪ Distort perception of others- A person can try to restore equity by
attempting to change perception of the comparison group. For example,
“X’s job isn’t as good as I thought.”
▪ Choose a different referent for comparison i.e. find out another person as
a comparison.
▪ Quitting the job- If a person perceives that he cannot get justice, he may
seek transfer to another department or may leave the organization
altogether.
o A corrective action brings back the employee to a state of Equity and provides him
motivation to contribute to the organization.
o Equity theory is used by managers to determine wage and salary structure in an
organization.

• Goal setting theory- Goals provide targets to be achieved in future. They influence behavior
of employees and also their motivation. When employees participate in goal setting, they
know how their efforts will lead to performance, rewards and personal satisfaction. Thus,
goals provide a sense of
direction to employees. Specific goals are also able to tell an employee what needs to be
done and how much effort will need to be expended.

There are Four elements of goal-setting model:

o Goal acceptance- In order to motivate employees to pursue organization goals, they
should be made to understand the implications of goals for them and also accept
them. If difficult goals are assigned, they may not feel attached to the goals.
Therefore, a participative approach towards goals should be followed.
o Goal specificity- A specific goal identifies the target in quantitative or measurable
terms. This enables the worker to evaluate his performance. Meeting a goal
provides a sense of achievement. Specific goals also provide direction and clarity

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to the employees.
o Goal challenge- difficult but feasible goals provide more challenge than easy goals.
Reaching an easy target is not competitive and unexciting.
o Performance feedback- proper feedback on achievement of goals provides
motivation to employees. Performance feedback tends to encourage employees
towards better job performance.

According to goal setting theory, specific and challenging goals are more likely to motivate.
Goal setting can be implemented by “management by objectives” approach.

Along with the above 4 elements of goal setting, two other elements also have influence
over goal-performance relationship-
o Goal commitment- commitment towards goals increases when goals are made
public, when there is internal locus of control and when goals are self set rather
than assigned.
o Self efficacy- an individual’s belief that he is capable of performing a task

• Management by Objectives:
o The concept of MBO was given by PETER DRUCKER.
o MBO is a process where superior and subordinate managers of an organization
jointly identify common goals, define areas of responsibility in terms of expected
results and use these measures as guides for performance and contribution.
o As the name suggests, MBO is a way of managing an enterprise by focusing on
objectives decided through participative decision making of employees as well as
management.
o MBO results in the following advantages:
▪ Higher productivity of employees due to focused attention on specific
goals
▪ Greater sense of identification by the management team due to
participative goal setting

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▪ Improved communication within the enterprise which helps locating

weak points
▪ Serving as a device for better organizational control

Ends means chain in MBO:

o There is a set of objectives at each level in an organization. Objectives at the top
level provide the basis for setting objectives at the second level which in turn
becomes the basis for objectives at the third level and so on. This implies that ENDS
flow downward from top to bottom.
o Objectives at the top can be achieved when objectives below it are fulfilled.
Objectives at the lowest level are fulfilled first and there is an upward movement
in accomplishment of objectives. Thus, MEANS flow upward from bottom to top.
Goals at the lowest level are a means to goals at a level above it.
(CHART)

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o SMART technique of GOAL SETTING:

Specific- A specific goal has a much greater chance of being accomplished than a general
goal. A general goal would be, “Get in shape.” But a specific goal would say, “Join a health
club and workout 3 days a week.”

Measurable- Establish concrete criteria for measuring progress toward the attainment of
each goal you set. When you measure your progress, you stay on track, reach your target
dates, and experience the exhilaration of achievement that spurs you on to continued effort
required to reach your goal.

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Attainable- When you identify goals that are most important to you, you begin to figure out
ways you can make them come true. You can attain almost any goal you set when you plan
your steps wisely and establish a time frame that allows you to carry out those steps.

Realistic- To be realistic, a goal must represent an objective toward which you are
both willing and able to work. A goal can be both high and realistic; you are the only one
who can decide just how high your goal should be.

Timely – A goal should be grounded within a time frame. With no time frame tied to it
there’s no sense of urgency. If you want to lose 10 lbs, when do you want to lose it by?
“Someday” won’t work. But if you anchor it within a timeframe, “by May 1st”, then you’ve
set your unconscious mind into motion to begin working on the goal.

• Reinforcement theory- Developed by B F Skinner, reinforcement theory argues that

behavior of people is largely determined by its consequences. Those actions that tend to
have positive or pleasant consequences tend to be repeated more often in the future,
while actions with negative consequences are less likely to be repeated.
o According to Reinforcement theory, managers should try to structure rewards
and punishments in such a way that consequences of effective job behavior are
positive while consequences of ineffective work behavior are negative or
unpleasant.
o The focus of this approach is upon changing or modifying behavior of people on
the job.
o Reinforcement theory is based on the idea that behavior is a result of expected
consequences. It is based on “Law of Effect” i.e individual’s behavior with
positive consequences tends to be repeated, but individual’s behavior with
negative consequences tends not to be repeated.

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In order to reinforce desirable behavior, 4 strategies can be followed:

o Positive reinforcement- Use of rewards that stimulate desired behavior and
strengthen probability of repeating such behavior. Positive reinforcement can
be money, promotion, recognition etc.
o Negative reinforcement- it is also called avoidance learning. It entails use of
unpleasant consequences to condition individuals to avoid behaving in
undesirable ways. Avoidance learning is not a strategy of punishment. For
example, we learn to watch for traffic when crossing streets to avoid accidents.
o Extinction- Extinction implies withdrawal of all forms of reinforcement to
remove undesirable behavior. For example, a disruptive employee who is
punished by his supervisor for his undesirable behavior may continue the
disruption because of attention they bring. By ignoring and isolating the
employee, attention is withdrawn and the motivation for disruption is also
possibly withheld.
o Punishment- punishment is followed when an undesirable behaviour needs to
be eliminated. For example, wages may be reduced if a worker is not producing
good quality products.

Social learning theory:

Social learning is a build up over reinforcement theory. Reinforcement theory focuses on only
external factors and ignores internal drives. A blend of internal and external approaches is
obtained through social learning theory.
This theory suggests that employees gain substantial information about how to perform, by
observing and imitating others in the organization. This means that employees do not react
only based on consequences, but carefully observe people and symbols around them. Thus,
individual behavior is a result of continuous reciprocal interaction between cognitive (mental)
and environmental (external) determinants.

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Job enrichment versus Job enlargement:

Job enrichment is also called vertical loading.

• It implies increasing contents of the job, upgrading of responsibility, scope and challenge
in work.
• The Purpose of Job Enrichment is to make the work more challenging
• It requires acquisition of higher level skills
• Herzberg gave emphasis on job enrichment to motivate employees. He found that enriched
jobs were more satisfying, more productive and enrichment resulted in a broader
range of skills and talents.

Job enlargement is also called horizontal loading.

• It attempts to make the job more varied by removing dullness associated with performing
repetitive operations.
• It involves expansion of activities for the employee at the same level or position.
• The purpose of job enlargement is to reduce monotony from work.
• Job enlargement does not necessarily require acquiring higher level skills.

Miscellaneous:

Incentives and Motivation-

1. Carrot and Stick approach- carrot and stick approach relies on economic rewards for
performance (carrot) and punishment for non performance (stick). It was used
widely in the early days of industrial revolution. Management takes the role of
autocratic leader under carrot and stick approach. The assumption in this approach
is that people would work if they are driven by fear of punishment. In recent times,
this approach has become less effective because people are driven by things other
than money and employee unions have made it difficult for management to fire
employees at will.

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2. Financial and Non financial incentives- Incentive can be defined as inducement

which stimulates one to action in a desired direction. A large variety of incentives are
used to motivate people in modern organizations-
a. Pecuniary or financial incentives
b. Non financial incentives

Revision on Motivation:
• Motivation is a process that accounts for an individual’s intensity, direction,
and persistence of effort toward attaining a goal.
• The three elements of motivation are:
◦ Intensity:
Concerned with how hard a person tries
◦ Direction:
This is the channel or course along which the intensity of an effort
trends towards.
However much intensity is applied in an effort, if the direction is
wrong, it will not yield any results.
◦ Persistence:
This refers to how long can a person maintain an effort.
• Other elements of motivation as provided by Luthans
are:

◦ Needs
These are basic demands of people due to physiological or
psychological imbalances.

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For example, a need exists when cells in the body are deprived of
food and water or when the personality is deprived of other
people who serve as friends or companions

◦ Drives
Drives provide action to meet individual needs.
Hence, drives, or motives (the two terms are often used
interchangeably), are set up to alleviate needs.
A physiological drive can be simply defined as a deficiency with
direction. Physiological and psychological drives are action
oriented and provide an energizing thrust toward reaching an
incentive.
The examples of the needs for food and water are translated into
the hunger and thirst drives, and the need for friends becomes a
drive for affiliation.
◦ Incentives
At the end of the motivation cycle is the incentive, defined as
anything that will alleviate a need and reduce a drive.
Thus, attaining an incentive will tend to restore physiological or
psychological balance and will reduce or cut off the drive. Eating
food, drinking water, and obtaining friends will tend to restore the
balance and reduce the corresponding drives. Food, water, and
friends are the incentives in these examples.
◦ Primary and Secondary Needs:
Physiological needs are primary (food, clothing, shelter, safety)
and psychological needs are secondary (self-esteem, recognition,
sense of duty, self-assertion).

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Motivation Theories:
• McGregor’s Participation Model (or Theory X and Theory Y)
o Douglas McGregor presented two distinct views of human beings: one
basically negative, labeled Theory X, and the other basically positive,
Theory Y.
o Under Theory X, managers believe that employees inherently dislike work
and must therefore be directed or even coerced into performing it.
o Under Theory Y, managers assume that employees can view work as
being as natural as rest or play, and therefore an average person can learn
to accept, and even seek responsibly.
o We can related Theory X and Theory Y to Maslow’s Hierarchy. Theory Y
assumes that higher-order needs dominate individuals. McGregor himself
believed that these assumptions of Theory Y were more valid than Theory
X.

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o Therefore, he proposes that participative decision making, responsible

and challenging jobs and good relations as approaches to maximizing
employee’s job motivation.

o Application of Theory X and Theory Y:

▪ It is difficult to generalize either Theory X or Theory Y to people’s
behavior as it depends on the level of skills, needs and level of
motivation people have which makes them fall into either
category.
▪ For example, a low skilled, manual laborer is more likely to do as
much work as required for him to make pay. Hence, such worker
might fall under Theory X. However, there can always be
exceptions, and with proper training and education, individuals
can move into Theory Y category as their higher level needs are
met.
• Maslow’s Hierarchy of Needs:
o Proposed by Abraham Maslow
o Maslow proposed that human needs can be arranged in a particular order
from lower to higher as shown:

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o These needs are as follows:

▪ Basic Physiological Needs
▪ Safety Needs
▪ Social Needs
▪ Esteem Needs (Ego needs) — drive to achieve self-respect,
autonomy, and achievement and external factors such as status,
recognition and attention.
▪ Self-Actualization Needs — drive to become what one is capable of
becoming in life; includes growth, achieving one’s potential and
self-fulfillment.
o Application of Maslow’s Need Hierarchy:
▪ Perhaps the most widely accepted and used theory of motivation.
▪ Very simple to apply to many situations.
▪ However, this may not be a global theory as many countries in
Europe and Japan have shown that this does not apply to their
managers. Hence, cultural differences are important factor to take
into account when applying Maslow’s Needs theory.
▪ Also, it may not be necessary that a person would move from one
need to another in a hierarchal model such as this. Sometimes,
while one need, such as as Esteem needs are fulfilled, the person
may still strive to fulfill safety or some basic physiological needs.
• Herzberg’s Two Factor Theory:
o Also known as the Motivation-Hygiene Theory

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o Proposed by Frederick Herzberg

o Herzberg conducted a large survey to identify what made people feel

good about their jobs and what made them feel poor or bad about their
jobs.
o From his studies, Herzberg concluded that job satisfiers are related to
job content and that job dissatisfiers are allied to job context.
o Herzberg labeled the satisfiers motivators, and he called the dissatisfiers
hygiene factors.
o Hygiene factors are those whose absent leads to job dissatisfaction,
however, their presence does not lead to job satisfaction. These are basic,
low level needs of workers, such as salary, supervision, working
conditions (safety), job security etc.
▪ The term hygiene refers (as it does in the health field) to factors
that are preventive; in Herzberg’s theory the hygiene factors are
those that prevent dissatisfaction.
o Motivation factors are those whose presence leads to job satisfaction
among employees. When comparing to Maslow’s hierarchy of
needs, these are higher level needs of workers, such as responsibility,
recognition, growth, achievement, etc.

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o Application of Herzberg’s Motivation-Hygiene Theory:

▪ Widely used by managers to gauge into worker satisfaction at
work
▪ Job Enrichment is a key method to enable job satisfaction and
high performance among people.

• McClelland’s Theory of Needs [David McClelland]

o The theory focuses on three needs, defined as follows:
▪ Need for Achievement (nAch):
is the drive to excel, grow, to achieve in relation to a set of
standards, to strive to succeed. — most important in
decision making process and motivating a person

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▪ Need for Power (nPow):

is the need to make others behave in a way in which they
would not have behaved otherwise.
▪ Need for Affiliation (nAff):
is the desire for friendly and close interpersonal
relationships.
o Achievement Motivation
▪ Some people have a compelling drive to succeed and they strive
personal achievement rather than the rewards of success that
accompany it.
▪ They have a desire to do something better and more efficiently
than done before.
▪ These people turn out to be entrepreneurs.
o Power Motivation
▪ The need for power is a drive to have impact, to be influential and
to control others. Individuals high in power enjoy being “in charge”
and strive for influence over others.
o Affiliation Motivation
▪ This is a need that leads to the desire to be liked and accepted by
others.
▪ It is need of human companionship. Individuals with high
affiliation motive strive for friendship, prefer cooperative
situations rather than competitive ones and desire relationships
involving a high degree of mutual understanding.
• ERG Theory [C. Alderfer]
o Proposed by Clayton Alderfer
o Alderfer condensed Maslow’s Theory of Needs (five categories) into three
categories:
▪ Existence Needs (E)
These are all material and physiological needs as laid out by
Maslow
▪ Relatedness Needs (R)

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These are all social, esteem and relationship needs as laid

out by Maslow
▪ Growth Needs (G)
These are all higher level self-actualization needs as laid out
by Maslow
o Application:
▪ Alderfer conceived of ERG needs along a continuum which avoids
the implication that the higher up individual is in the hierarchy the
better it is.
▪ Different types of needs can operate simultaneously. If a particular
path towards satisfaction is blocked, the individual will both
persist along that part and at the same time regress towards more
easily satisfied needs.
• Vroom’s Valence-Expectancy Model [Expectancy Theory]
o This is the most widely accepted model of motivation.
o In practical terms, expectancy theory says that employees will be
motivated to exert a high level of effort when they believe:
▪ that effort will lead to a good performance appraisal
▪ that a good appraisal will lead to organizational rewards, such as a
bonus, promotion etc.
▪ that the rewards will satisfy the employee’s personal goals
• Motivation
=

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o Valence (Reward-Personal Goal Preference)

▪ It refers to the strength of an individual’s preference for receiving
a reward.
▪ It is an expression of the value he places on a goal.
o Expectancy (Effort-Performance Probability)

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▪ It refers to the extent to which the person perceives that his efforts
would lead to the completion of a task (performance).
o Instrumentality (Performance-Reward Probability)
▪ It refers to the probability to which the performance would lead to
the desired reward.
o Since motivation is the product of all these three factors: valence,
instrumentality and expectancy, hence high levels of all three or different
combinations of the three can lead to motivation of an employee to do
well in their work. However, low levels of one or more can lead to low
level of motivation.
o Later, Porter and Lawler provided an improvement on Vroom’s model
▪ Porter and Lawler used Victor Vroom’s expectancy theory as a
foundation to develop their expectancy model, which is considered
more complete as it introduces three more components to the
expectancy theory.
▪ Similar to Vroom’s theory Porter and Lawler concluded that an
individual’s motivation to complete a task is affected by the
reward they expect to receive for completing the task.
▪ These additional aspects to the expectancy theory are:
Intrinsic and Extrinsic Rewards:
Porter and Lawler categorised the reward as
intrinsic and extrinsic.
Intrinsic rewards are the positive feelings that the
individual experiences from completing the task e.g.
satisfaction, sense of achievement.
Extrinsic rewards are rewards emanating from
outside the individual such as bonus, commission
and pay increases.
Individual’s Ability to Perform the Task
Individual’s belief in finishing the task
Fairness of the Reward of the Task
o Porter and Lawler’s model suggested that an individual’s view regarding
the attractiveness and fairness of the rewards will affect motivation.

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• Equity Theory
o Proposed by JS Adams
o It is based on the assumption that members of an organization experience
strong expectations of justice, balance and fairness in treatment by the
organization.
o According to the theory, two variables are important: inputs and outputs.
o Employees compare their job inputs (efforts, experience, education,
competence) and outcomes (salary, raises, recognition) to those of others.
We perceive our outcomes in relation to our inputs and then we compare
our outcome-input ratio with the outcome-input ration of relevant others,

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as shown below:

o Application
▪ Feeling of inequity by an individual is uncomfortable and creates
tension in his mind. This equity can be reestablished by:
Changing inputs [working harder, or working less hard]
Changing outcomes [requesting a salary increase or asking
for a bigger office or a personals secretary]
Changing perceptions of inputs and outcomes [distorting
one’s view of the inputs and outcomes]
Changing the inputs or outcomes of others
• Self Efficacy Theory or Social Learning Theory [Social Cognitive Theory]
o Developed by Albert Bandura
o This refers to an individual’s belief that he or she is capable of performing
a task. The higher your self-efficacy, the more confidence you have in your
ability to succeed in a task.
o Therefore, in difficult situations, people with low self-efficacy are more
likely to lessen their effort, or give up altogether, whereas those with high
self-efficacy will try harder to master the challenge.
o In addition, individuals with high self-efficacy seem to respond to
negative feedback with increased effort and motivation, whereas those
with low self-efficacy are likely to lessen their effort when given negative
feedback.
o In this theory, there are four ways to increase self-efficacy:

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▪ Enactive Mastery — gaining relevant experience with task or job.

Good past performance in a task will provide confidence of
repeating the same success in a new task.
▪ Vicarious Modeling — becoming more confident by seeing others
mastering the job.
▪ Verbal Persuasion — becoming more confident when someone
convinces you that you have the skills to be successful.
▪ Arousal — “psyched up"
o Social learning means that employees gain substantial information about
how to perform by observing and imitating others around them.
o Self-efficacy and goal setting theory complement each other. Self-efficacy
is important for individuals to achieve goals and believe in their ability to
do so.
• Goal Setting Theory
o Goals are targets that should be achieved in the future. They influence the
behavior of the employees and also their motivation. When the employees
participate in goal setting, they see how their efforts will lead to
performance, rewards and personal satisfaction.
o Hence, goal setting is a major source of motivation for employees. Goals
provides direction to employees. This model was proposed by Edwin
Locke.
o Four elements of goal-setting model are:
▪ Goal Acceptance
Employees should understand the implications of the goals
for them and also accept the goals as targets to be achieved.
If too difficult goals are assigned to individuals, they may
not feel attachment to the goals.
▪ Goal Specificity
Should be measurable, targetable and achievable.
▪ Goal Challenge
Difficult but feasible.
▪ Performance Feedback

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Feedback is a must to understand how they are doing, what

can be improved etc.
o MBO (Management by Objectives)
▪ A process whereby the superior and subordinate managers of an
organization jointly identify its common goals, define watch
individual’s major areas of responsibility in terms of expected
results, and use these measures as guides for operating the unit
and assessing the contribution of each of its members.
▪ Advantages:
Improved productivity
Greater sense of identification by the management team
with the objectives of the enterprise
Tool of self control in the management teams
Stimulates motivation among employees
Provides a realistic means of achieving results and
analyzing various needs such as training, opportunities for
growth on basis of measurement of performance against set
standards.

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• Forms of Organizational Justice:

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[email protected] 37