Chapter 7

Motivation
Concepts
7-1
After studying this chapter, you should be able to:
o Describe the three elements of motivation.
o Compare and contrast goal-setting theory and
Management by Objectives.
o Demonstrate how organizational justice is a
refinement of equity theory.
o Apply the key tenets of expectancy theory to
motivating employees.
o Explain to what degree motivation theories are
culture-bound.
7-2
Defining Motivation
o The result of the interaction between the individual
and the situation.
o The processes that account for an individual’s
intensity, direction, and persistence of effort toward
attaining a goal – specifically, an organizational goal.
o 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 7-3
Maslow’s Hierarchy of Needs
o There is a hierarchy of five needs.
o As each need is substantially satisfied, the next need
becomes dominant.
Assumptions
Self-Actualization  Individuals cannot
Higher Order move to the next
Esteem higher level until all
Internal
Social needs at the current
(lower) level are
Lower Order Safety satisfied
External Physiological  Must move in
hierarchical order
7-4
Alderfer’s ERG Theory
Concepts:
o More than one need can be operative at the same
time.
o If a higher-level need cannot be fulfilled, the
desire to satisfy a lower-level need increases.
Core Needs
o Existence: Provision of basic material
requirements.
o Relatedness: Desire for relationships.
o Growth: Desire for personal development. 7-5
McGregor’s Theory X and Theory Y
Having Little Ambition

Theory X Disliking Work

Managers See Workers As…

Avoiding Responsibility

Self-Directed

Theory Y
Enjoying Work
Managers See Workers As…

Accepting Responsibility
7-6
Herzberg’s Two-Factor Theory
Key Point:
Satisfaction and dissatisfaction are not opposites
but separate constructs
Hygiene Factors Motivators

Extrinsic and Company Policies Growth Intrinsic and

Related to Related to
Dissatisfaction Salary Responsibility Satisfaction
Work Conditions Achievement

7-7
Criticisms of Two-Factor Theory
o Herzberg says that hygiene factors must be met
to remove dissatisfaction.
o If motivators are given, then satisfaction can
occur.
o Herzberg is limited by his procedure 
Participants had self-serving bias.
o Reliability of raters questioned  Bias or
errors of observation
o No overall measure of satisfaction was used.
7-8
McClelland’s Three Needs Theory
o Need for Achievement (nAch)
• The drive to excel, to achieve in relation to a set of
standards, to strive to succeed
o Need for Power (nPow)
• The need to make others behave in a way that they
would not have behaved otherwise
o Need for Affiliation (nAff)
• The desire for friendly and close interpersonal
relationships
 People have varying levels of each of the three needs.
 Hard to measure
7-9
Performance Predictions for High nAch
o Individuals have different levels of needs in each of these
areas, and those levels will drive their behavior.
o People with a high need for achievement are likely to:
• Prefer to undertake activities with a 50/50 chance of
success, avoiding very low- or high-risk situations
• Be motivated in jobs that offer high degree of personal
responsibility, feedback, and moderate risk.
• Not necessarily make good managers – too personal a
focus. Most good general managers do NOT have a
high nAch.
• Need high level of nPow and low nAff for managerial
success. 7-10
Cognitive Evaluation Theory (cont’d)
Major implications for work rewards
o Intrinsic and extrinsic rewards are not independent;
o Extrinsic rewards decrease intrinsic rewards;
o Pay should be non-contingent on performance;
o Verbal rewards increase intrinsic motivation; tangible
rewards reduce it.
Self-concordance
o When the personal reasons for pursuing goals are
consistent with personal interests and core values
(intrinsic motivation), people are happier and more
successful. 7-11
Cognitive Perspective
o Focus on thinking
o Emphasizes intrinsic motivation
o People are active and curious
o Plans, goals, schemas, and expectations
o Perceived cause of successes or failures:
Locus/ Stability/ Responsibility.
o Attributions in the classroom
o Expectancy X Value Theory
7-12
Locke’s Goal-Setting Theory
o Basic Premise:
• That specific and difficult goals, with self-
generated feedback, lead to higher
performance
o Difficult Goals:
• Focus and direct attention
• Energize the person to work harder
• Difficulty increases persistence
• Force people to be more effective and efficient
7-13
Locke’s Goal-Setting Theory (cont’d)
o Relationship between goals and performance
depends on:
• Goal commitment (the more public the better!)
• Task characteristics (simple, well-learned)
• Culture (best match is in North America)
o Why Goals Improve Performance
• Direct attention to the task at hand
• Mobilize effort
• Increase persistence
• Promote development of new strategies 7-14
Implementation: Management by Objectives
o MBO is a systematic way to utilize goal-setting.
o Converts overall organizational objectives into
specific objectives for work units and individuals
o Goals must be:
• Tangible
• Verifiable
• Measurable
o Corporate goals are broken down into smaller,
more specific goals at each level of organization.
7-15
Implementation – MBO (cont’d)
o Four common ingredients to MBO programs:
• Goal specificity
• Participative decision making
• Explicit time period
• Performance feedback
o Management By Objectives Programs
• Company wide goals and objectives
• Goals aligned at all levels
• Based on Goal Setting Theory
7-16
Why MBOs Fail
o Unrealistic expectations about MBO
results.
o Lack of commitment by top
management.
o Failure to allocate reward properly.
o Cultural incompatibilities
7-17
Thanks !!!
7-18