12/13/2024

MANAGEMENT ORGANIZATION
(BUSI 203)

Lecture – 11
13 December 2024
Academic Year 2024-2025
Özlü Dolma
[email protected]

Prepared by Ozlu Dolma for Management Organization BUSI 203 (2024-2025) students only.
Any unauthorized use, such as reproduction, dissemination, or distribution of this material, is not permitted.

Motivating Employees
Learning Outcomes
Being able to:
• Define and explain motivation.
• Compare and contrast early theories of motivation.
• Compare and contrast contemporary theories of motivation.

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What Is Motivation?
Motivation refers to the process by which a person’s efforts are
energized, directed, and sustained toward attaining a goal.
• The energy element is a measure of intensity or drive. A motivated person puts
forth effort and works hard.

• High levels of effort don’t necessarily lead to favorable job performance unless
the effort is channeled in a direction that benefits the organization.

• Effort that’s directed toward, and consistent with, organizational goals is the kind
of effort we want from employees.

• Finally, motivation includes a persistence dimension. We want employees to

persist in putting high effort to achieve those goals.

What Is Motivation?
• Motivating employee for high levels of performance is an important
organizational concern and managers keep looking for answers.

• Research has shown that most of the employees are not excited about
their work.

• The level of disengagement has been described by researchers: “These

employees are essentially ‘checked out.’ They’re sleepwalking through
their workday, putting time, but not energy or passion, into their work.”

• It’s no wonder, then, that both managers and academics want to

understand and explain employee motivation.

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Early Theories of Motivation

Know these early theories because they:
❶ Represent the foundation from which contemporary theories grew.

❷ Still are used by practicing managers to explain employee motivation.

Early Theories of Motivation

During the 1950s and 1960s, four theories of motivation were formulated.

They include:

• The Hierarchy of Needs Theory

• Theories X and Y

• The Two-Factor Theory

• The Three-Needs Theory

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Hierarchy of Needs Theory

Abraham Maslow’s Hierarchy of Needs Theory is one of the most widely known
theories of motivation. Maslow was a psychologist who proposed that within every
person is a hierarchy of five needs:
• Physiological needs such as food, drink, shelter, sex, sleep, and other physical
requirements.
• Safety needs such as security and protection from harm as well as assurance that
physical needs will continue to be met.
• Social needs including affection, belongingness, acceptance, and friendship.
• Esteem needs, which include internal esteem factors such as self-respect,
autonomy, and achievement, and external esteem factors such as status,
recognition, and attention.
• Self-actualization needs that include growth and achieving one’s potential.

Hierarchy of Needs Theory

Source: Maslow, Abraham H., Frager, Robert D., Fadiman, James, Motivation and Personality, 3rd ed., ©1987. Reprinted and electronically reproduced by permission of
Pearson Education, Inc., New York, NY.

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Hierarchy of Needs Theory

• Maslow argued that each level must be substantially satisfied before the
next need becomes dominant; an individual moves up the hierarchy from
one level to the next.

• Lower-order need are satisfied predominantly externally, while higher-

order needs are satisfied internally.

• Managers will do things to satisfy employees’ needs. But remember: Once

a need is substantially satisfied, it no longer motivates.

• This theory is widely popular among practicing managers probably

because it’s easy to understand and intuitive.

McGregor’s Theory X and Theory Y

• Douglas McGregor proposed two distinct views of human beings:
 Theory X: a negative view of people that assumes workers have little ambition,
dislike work, want to avoid responsibility, and need to be closely controlled to
work effectively.

 Theory Y: a positive view that assumes employees enjoy work, seek out and
accept responsibility, and exercise self-direction.

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McGregor’s Theory X and Theory Y

• Under Theory X, managers believe that employees inherently dislike work
and therefore they need to be directed or even coerced into performing
it.

• Under Theory Y, managers assume employees can view work as being

natural as rest or play, and therefore the average person can learn to
accept, and even seek, responsibility.

• Theory Y assumes higher-order needs dominate individuals.

• McGregor proposed that ideas such as participative decision making,

responsible and challenging jobs, and good group relations are more
valid to maximize an employee’s job motivation.

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Herzberg’s Two-Factor Theory

• Frederick Herzberg’s two-factor theory (or motivation-hygiene theory) proposes
that intrinsic factors are related to job satisfaction, while extrinsic factors are
associated with job dissatisfaction.

• Herzberg wanted to know when people felt exceptionally good (satisfied) or bad
(dissatisfied) about their jobs.

• He concluded from people’s responses that certain characteristics were

consistently related to job satisfaction and other characteristics were related to
job dissatisfaction.

• When people feel good about their work, they tend to cite intrinsic factors arising
from the job itself, such as achievement, recognition, and responsibility. But when
they are dissatisfied, they tend to cite extrinsic factors arising from the job context,
such as company policy, administration, supervision, interpersonal relationships,
and working conditions.

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Herzberg’s Two-Factor Theory

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Herzberg’s Two-Factor Theory

• Herzberg concluded that the traditional view—that the opposite of satisfaction
was dissatisfaction–was wrong.
• He stated that removing dissatisfying characteristics from a job would not
necessarily make that job more satisfying (or motivating).
• Herzberg proposed that a dual continuum existed: The opposite of “satisfaction” is
“no satisfaction” and the opposite of “dissatisfaction” is “no dissatisfaction.”
• Herzberg believed that the factors that led to job satisfaction were separate and
distinct from those that led to job dissatisfaction. Therefore, managers who sought
to eliminate factors that created job dissatisfaction could keep people from
being dissatisfied, but this would not necessarily lead to satisfaction and
motivation.
• To motivate people, Herzberg suggested emphasizing motivators, the intrinsic
factors having to do with the job itself.

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Herzberg’s Two-Factor Theory

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McClelland’s Three-Needs Theory

David McClelland and his associates proposed the three-needs theory,
which says three acquired (not innate) needs are major motives in work.
These three needs include:

• The need for achievement (nAch), which is the drive to succeed and
excel in relation to a set of standards.

• The need for power (nPow), which is the need to make others behave in a
way that they would not behave otherwise.

• The need for affiliation (nAff), which is the desire for friendly and close
interpersonal relationships.

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McClelland’s Three-Needs Theory

• People with a high need for achievement strive for personal achievement
rather than rewards.
• They have a desire to do something better or more efficiently than it’s
been done before.
• They prefer jobs that offer personal responsibility for finding solutions, like to
receive rapid and unambiguous performance feedback to tell whether
they’re improving, and to set moderately challenging goals.
• High achievers avoid what they perceive to be very easy or very difficult
tasks.
• A high need to achieve doesn’t necessarily lead to being a good
manager because high achievers focus on their own accomplishments
while good managers emphasize helping others accomplish their goals.

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Contemporary Theories of Motivation

• Job Design/ Job Characteristics Model
• Equity Theory
• Expectancy Theory

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Job Characteristics Model

• Job design refers to the way tasks are combined to form complete jobs.

• Managers should design jobs deliberately and thoughtfully to reflect the

demands of the changing environment, the organization’s technology,
and employees’ skills, abilities, and preferences.

• When jobs are designed this way, employees are motivated to work hard.

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Job Characteristics Model

The job characteristics model (JCM) was developed by J. Richard Hackman and Greg R. Oldham.
This model can help managers design jobs that motivate. According to Hackman and Oldham,
any job can be described in terms of the following five core job dimensions:

 Skill variety is the degree to which the job requires a variety of activities, allowing the worker to
use a number of different skills and talents.

 Task identity is the degree to which the job requires completion of a whole and identifiable
piece of work.

 Task significance is the degree to which the job affects the lives or work of other people.

 Autonomy refers to the freedom, independence, and discretion given to the individual for
scheduling the work and for determining the procedures to be used in carrying it out.

 Feedback is the degree to which carrying out the work activities required by the job results in the
individual’s obtaining direct and clear information about the effectiveness of his or her
performance.

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How Does Job Design Influence Motivation?

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Job Characteristics Model

• From a motivational point of view, the JCM suggests that internal rewards are obtained when an
employee learns (knowledge of results through feedback) that he or she personally
(experienced responsibility through autonomy of work) has performed well on a task that he or
she cares about (experienced meaningfulness through skill variety, task identity, and/or task
significance).

• The more these three conditions characterize a job, the greater the employee’s motivation,
performance, and satisfaction and the lower his or her absenteeism and the likelihood of
resigning.

• The links between the job dimensions and the outcomes are moderated by the strength of the
individual’s growth need (the person’s desire for self-esteem and self-actualization).

• This distinction may explain the mixed results with job enrichment (vertical expansion of a job by
adding planning and evaluation responsibilities): Individuals with low growth need don’t tend to
achieve high performance or satisfaction by having their jobs enriched.

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Job Redesign Guidelines

Guidelines for Job Redesign

Source: J. R. Hackman and G. R. Oldham, “Motivation Through the Design of Work: Test of a Theory,” Organizational Behavior and Human Performance, August 1976, 250–79.

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Equity Theory
• The term equity is the concept of fairness and comparable treatment when compared
with others who behave in similar ways.

• There’s considerable evidence that employees compare themselves to others and that
inequities influence how much effort they exert.

• Equity theory, developed by J. Stacey Adams, proposes that employees compare what
they get from a job (outcomes) to what they put into it (inputs) and then compare their
inputs-outcomes ratio with the inputs-outcomes ratios of relevant others.

• If an employee perceives her ratio to be equitable in comparison to those of relevant

others, there’s no problem.

• However, if the ratio is perceived to be inequitable, she views herself as underrewarded or

overrewarded.

• When inequities occur, employees attempt to do something about it. The result might be
lower or higher productivity, improved or reduced quality of output, increased
absenteeism, or voluntary resignation.

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Equity Theory
Equity Theory Relationships

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Equity Theory
The referent —the other persons, systems, or selves individuals compare themselves
against in order to assess equity—is an important variable in equity theory. Each of
the three referent categories is important.

• “Persons” category includes others with similar jobs, friends, neighbours, etc.

• “System” category includes organizational pay policies, procedures, and

allocation.

• “Self” category refers to past personal experiences and contacts.

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Equity Theory
In the case of perceived negative inequity, for example, people are likely to respond by engaging in one
or more of the following behaviors:

• Change work inputs (e.g., reduce performance efforts).

• Change the outcomes (rewards) received (e.g., ask for a raise).

• Leave the situation (e.g., quit).

• Change the comparison points (e.g., compare self to a different co-worker).

• Psychologically distort the comparisons (e.g., rationalize that the inequity is only temporary and will be
resolved in the future).

• Take actions to change the inputs or outputs of the comparison person (e.g., get a co-worker to
accept more work).

Research on equity theory indicates that people who feel they are overpaid (perceived positive
inequity) are likely to try to increase the quantity or quality of their work, whereas those who feel they are
underpaid (perceived negative inequity) are likely to try to decrease the quantity or quality of their work.

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Equity Theory
• Originally, equity theory focused on distributive justice, which is the perceived
fairness of the amount and allocation of rewards among individuals and which
has a greater influence on employee satisfaction.

• More recent research has focused on issues of procedural justice, which is the
perceived fairness of the process used to determine the distribution of rewards,
and tends to affect an employee’s organizational commitment, trust in his or her
boss, and intention to quit.

• Based on the evidence, managers should consider openly sharing information on

how allocation decisions are made, follow consistent and unbiased procedures,
and engage in similar practices to increase the perception of procedural justice.

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Expectancy Theory
• Victor Vroom’s expectancy theory states that an individual tends to act in a
certain way based on the expectation that the act will be followed by a given
outcome and on the attractiveness of that outcome to the individual.

• It has three variables or relationships:

 Expectancy or effort-performance linkage is the probability perceived by the individual

that exerting a given amount of effort will lead to a certain level of performance.

 Instrumentality or performance-reward linkage is the degree to which the individual

believes that performing at a particular level is instrumental to attaining the desired
outcome.

 Valence or attractiveness of reward is the importance that the individual places on the
potential outcome or reward that can be achieved on the job. Valence considers both
the goals and needs of the individual.

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Expectancy Theory
Expectancy Model

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Expectancy Theory
This explanation of motivation can be summed up in the following questions:

• How hard do I have to work to achieve a certain level of performance, and can I
actually achieve that level?

• What reward will performing at that level get me?

• How attractive is the reward to me, and does it help me achieve my own
personal goals?

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Expectancy Theory
• Whether you are motivated to work hard at any given time depends on your
goals and your perception of whether a certain level of performance is necessary
to attain those goals.

• The key to expectancy theory is understanding an individual’s goals and the links
between effort and performance, between performance and rewards, and
between rewards and individual goal satisfaction.

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