Motivation Concepts

Learning Outcomes

◉ After studying this chapter, you should be able to:

◉ Describe the three key elements of motivation.
◉ Compare the early theories of motivation.
◉ Contrast the elements of self-determination theory and goal-setting theory.
◉ Demonstrate the differences among self-efficacy theory, reinforcement
theory, equity theory, and expectancy theory.
◉ Identify the implications of employee job engagement for managers.
◉ Describe how the contemporary theories of motivation complement one
another
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Knowing about different theories of motivation can help
increase an understanding of how motivation may operate
and how employees become motivated.

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. Motivation and Early Theories

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 What is Motivation?

Motivation is defined as the processes that account for an individual’s

intensity, direction, and persistence of effort toward attaining a goal

Why is motivation important in the study of OB?

an employee’s motivation is a function of several components, including an individual’s
needs, the extent to which a work environment is positive and supportive, perceptions of
being treated fairly, creating a strong relationship between performance and the receipt of
valued rewards, the use of accurate measures of performance, and the setting of specific
goals.

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 Types of Rewards
◉ Intrinsic rewards are the satisfactions that a person receives in the
process of performing a particular action.
◉ The completion of a complex task may bestow a pleasant feeling of
accomplishment, or solving a problem that benefits others may fulfill
a personal mission.
◉ Extrinsic rewards are given by another person, typically a manager,
and include promotions, praise, and pay increases.
◉ They originate externally, as a result of pleasing others.

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 Theories of Motivation

a) Content theories of motivation focus on identifying internal

factors such as instincts, needs, satisfaction, and job
characteristics that energize employee motivation.
b) Process theories of motivation focus on explaining the process
by which internal factors and cognitions influence employee
motivation. Process theories are more dynamic than content
theories.

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Maslow’s Hierarchy of Needs

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Herzberg’s Two Factor Theory

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 McClelland’s Theory of Needs

McClelland’s theory of needs was developed by David McClelland and his

associates.
The theory focuses on three needs, defined as follows:
• Need for achievement (nAch) is the drive to excel, to achieve in relation to a
set of standards, and to strive to succeed.
• Need for power (nPow) is the need to make others behave in a way that they
would not have behaved otherwise.
• Need for affiliation (nAff) is the desire for friendly and close interpersonal
relationships.
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. Process Theories of Motivation

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Goal Setting Theory

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 SMART Goals

◉ In order for goals to be effective, they should be “SMART.” SMART stands

for
◉ Specific: Individuals know exactly what is to be achieved.
◉ Measurable: The goals proposed can be tracked and reviewed.
◉ Attainable: The goals, even if difficult, are reasonable and achievable.
◉ Results-oriented: The goals should support the vision of the organization.
◉ Time-bound: The goals are to be achieved within a stated time.

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 Self Efficacy Theory

Self-efficacy theory, also known as social cognitive theory or social learning theory refers to an
individual’s belief that he or she is capable of performing a task

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 Influencing Self-efficacy in others

◉ Pygmalion effect
The Pygmalion effect is a form of self-fulfilling prophecy in
which believing something can make it true

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 Equity Theory

◉ Equity theory A theory that says that individuals compare their job inputs and
outcomes with those of others and then respond to eliminate any inequities.

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Model of Organizational Justice

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Expectancy Theory

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The strength of a tendency to act in a certain way depends on the strength of
an expectancy that the act will be followed by a given consequence (or
outcome) and on the value or attractiveness of that consequence (or outcome)
to the actor

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 Reinforcement theory

◉ A theory that says that behavior is a function of its

consequences.

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 Direct Reinforcement

◉ Behavior modification is the name given to the set of techniques by which

reinforcement theory is used to modify human behavior.
◉ The basic assumption underlying behavior modification is the law of effect,
which states that behavior that is positively reinforced tends to be repeated,
and behavior that is not reinforced tends not to be repeated.
◉ Reinforcement is defined as anything that causes a certain behavior to be
repeated or inhibited.

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 Types of Reinforcement

◉ Positive reinforcement is the administration of a pleasant and rewarding

consequence following a desired behavior.
◉ Avoidance learning is the removal of an unpleasant consequence once a
behavior is improved, thereby encouraging and strengthening the desired
behavior. Avoidance learning is sometimes called negative reinforcement. The
idea is that people will change a specific behavior to avoid the undesired result
that the behavior provokes.
◉ Punishment is the imposition of unpleasant outcomes on an employee.
Punishment typically occurs following undesirable behavior.
◉ Extinction is the withholding of a positive reward.
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 Self-determination theory

◉ Self determination is an important concept that refers to each person’s ability

to make choices and manage their own life.
◉ Self determination allow people to feel that they have control over their
choices and lives.
◉ It also has an impact on motivation—people feel more motivated to take
action when they feel they have control over the actions and its outcomes.

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 Self-determination theory

◉ Self determination theory suggest that people are motivated to grow and
change by three innate and psychological needs.
a) Competence
b) Connection and relatedness
c) Autonomy

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 Cognitive Evaluation theory

Cognitive evaluation theory

A version of self-determination theory that holds that allocating extrinsic rewards for
behavior that had been previously intrinsically rewarding tends to decrease the overall
level of motivation if the rewards are seen as controlling.
Self-concordance
The degree to which people’s reasons for pursuing goals are consistent with their interests
and core values.

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Motivation: From Concepts
to Applications
Motivating by Job Design: The Job Characteristics Model

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 Job Redesign

◉ Job Rotation
◉ Relational Job design

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 Alternative Work Arrangements

◉ Flextime
◉ Job sharing
◉ Telecommuting

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 Employee Involvement and Participation

◉ Employee involvement and participation (EIP): A participative process that

uses the input of employees to increase employee commitment to
organizational success.
◉ Participative management: A process in which subordinates share a
significant degree of decision-making power with their immediate superiors.
◉ Representative participation: A system in which workers participate in
organizational decision making through a small group of representative
employees.

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 Using Rewards to Motivate Employees

What to Pay: establishing a Pay structure

◉ The process of initially setting pay levels entails balancing internal equity—the
worth of the job to the organization (usually established through a technical process
called job evaluation), and external equity—the competitiveness of an
organization’s pay relative to pay in its industry

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 How to Pay: Rewarding individual employees

◉ Variable-pay program: A pay plan that bases a portion of an employee’s pay on some individual
and/or organizational measure of performance.
◉ Piece-rate pay plan A pay plan in which workers are paid a fixed sum for each unit of production
completed.
◉ Merit-based pay plan: A pay plan based on performance appraisal ratings.
◉ Bonus: A pay plan that rewards employees for recent performance rather than historical
performance.
◉ Profit-sharing plan An organization wide program that distributes compensation based on some
established formula designed around a company’s profitability
◉ Employee stock ownership plan (ESOP) A company-established benefits plan in which
employees acquire stock, often at below-market prices, as part of their benefits.

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 Using Benefits to Motivate Employees

◉ Flexible benefits A benefits plan that allows each employee to put together
a benefits package individually tailored to his or her own needs and
situation.

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 Using Intrinsic Rewards to Motivate Employees

◉ Employee recognition program A plan to encourage specific

employee behaviors by formally appreciating specific
employee contributions.

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