Organisational Behaviour

SESSION 4
MOTIVATION THEORIES & PRACTICE

Lecturer: Thaddeus A. Hostetler

Defining Motivation
 Motivation concerns with why people behave
in a certain way
“The processes that account for an individual’s
intensity, direction, and persistence of effort
toward attaining a goal” Robin and Judge (2017)

 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
Types of motivation
 Intrinsic motivation  Extrinsic motivation
 Inside out: motivation is  Outside in: motivation is
influenced by the task influenced by external
itself - the satisfaction in factors (e.g. salary,
completing or even bonus, working
working on a task. conditions, title, etc.)
Contents
 Motivation theories
 Content theories of motivation
 Maslow’s Hierarchy of Needs Theory
 Herzberg’s Two-Factor Theory
 Alderfer’s ERG motivation theory
 Process theories of motivation
 Locke & Latham’s Goal-setting theory
 Vroom’s Expectancy theory
 Adams’ Equity theory
 Motivation in practice: job design, work
arrangements, employee involvement, financial and non-
financial rewards
 Organisational Behaviour

MOTIVATION THEORIES
Content Theories of Motivation
 Maslow’s Hierarchy of Needs Theory
 Herzberg’s Two-Factor Theory

 Alderfer’s ERG motivation theory

• Answer the question “What

are the main motives for our
behaviour?
• View motivation in terms of
our desired outcomes or ?
goals.
 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 Assumptions:
Higher Order
Individuals cannot
Internal


Esteem move to the next

higher level until all
Social needs at the current
Lower Order (lower) level are
External satisfied
Safety  Must move in
hierarchical order
Physiological
 Herzberg’s Two-Factor Theory
Hygiene Factors Motivators
Not Dissatisfied Satisfied
Company Policies Achievement

Quality of Recognition
supervison

Intrinsic
Relationship with
Extrinsic

supervisor Work itself

Work Conditions Responsibility

Salary Advancement

Relationship with
Growth
peers
Dissatisfied Not Satisfied
Criticisms of Two-Factor Theory
 Herzberg is limited by his methodology
 Participants had self-serving bias
 Reliability of raters questioned
 Bias or errors of observation
 No overall measure of satisfaction was used
 Herzberg assumed, but didn’t research, a
strong relationship between satisfaction and
productivity
Alderfer’s ERG Theory
ERG: Relationship among needs

Relatedness
needs

Existence
Growth needs
needs

Satisfaction/ Progression

Frustration/ Regression

Satisfaction strengthening
Relationship among need theories
Process theory of motivation
 Locke & Latham’s Goal-setting theory
 Vroom’s Expectancy theory

 Adams’ Equity theory

• Answer the question “Why

do we choose to pursue
certain goals?”
• Views motivation in terms of
the cognitive decision-
making processes
influencing an individual’s
choice of goals.
Locke & Latham’s Goal-setting theory
 Basic Premise:
 That specific and difficult goals, with self-
generated feedback, lead to higher performance
 Difficult Goals:
 Focus and direct attention
 Energize the person to work harder
 Difficulty increases persistence
 Force people to be more effective and efficient
 Relationship between goals and performance
depends on:
 Goal commitment
 Task characteristics
 Culture (best match is in North America)
Implementation: MBO
 MBO is a systematic way to utilize goal-setting.
 Corporate goals are broken down into smaller, more
specific goals at each level of organization.
 Goals must be:
 Tangible
 Verifiable
 Measurable
 Four common ingredients to MBO programs:
 Goal specificity
 Participative decision making
 Explicit time period
 Performance feedback
Vroom’s Expectancy Theory
The strength of a tendency to act in a certain way
depends on the strength of an expectation that the act
will be followed by a given outcome and on the
attractiveness of the outcome to the individual.

Expectancy of Instrumentality of Valuation of the

performance success in getting reward in
success reward employee’s eyes
Adams’ Equity Theory
 Employees compare their ratios of outcomes-
to-inputs of others they see as relevant
 When ratios are equal: 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’s “Relevant Others”
 Self-Inside
 The person’s experience in a different job
in the same organization
 Self-Outside
 The person’s experience in a different job
in a different organization
 Other-Inside
 Another individual or group within
the organization
 Other-Outside
 Another individual or group outside of the
organization
Reactions to Inequity
 Employee behaviors to create equity:
 Change inputs (slack off)
 Change outcomes (increase output)
 Distort/change perceptions of self
 Distort/change perceptions of others
 Choose a different referent person
 Leave the field (quit the job)
 Organisational Behaviour

MOTIVATION IN PRACTICE
 Fedex Days

Atlassian – an Australian software company

created what is now Fedex Days.
 One-day bursts of autonomy.

 Allow employees to tackle any problem they

want, freely and independently.

 Show the results to the rest of the company at

the end of twenty-four hours.

 Why the name? Because you have to deliver

something overnight.
 ROWE

Results-Only Work Environment

(ROWE)
 ROWE is a workplace in which employees
don’t have schedules.
 They don’t have to be in the office at a certain
time or any time.
 They just have to get their work done.
Contents
 Motivation by job design
 Job characteristics model
 Ways through which jobs can be redesigned
 Motivation by work arrangements
 Motivation through employee involvement
 Motivation by financial and non-financial rewards
 Guide to leaders
Motivation by Job Design: The JCM
 Job Characteristics Model (JCM)
 Skill variety – Requirements for different tasks
in the job.
 Task identity – Completion of a whole piece of
work.
 Task significance – The job’s impact on
others.
 Autonomy – How much freedom and
independence the worker has over their job.
 Feedback – Amount of direct and clear
information on performance.
The Job Characteristics Model
 Motivating Potential Score

People
Peoplewho
whowork
workon
onjobs
jobswith
withhigh
highcore
coredimensions
dimensions
are
aregenerally
generallymore
moremotivated,
motivated,satisfied,
satisfied,and
and
productive.
productive.
How Can Jobs Be Redesigned?

 Job Rotation
 The periodic shifting
of a worker from
one task to another

 Job Enrichment
 The vertical
expansion of jobs
Motivation by Work Arrangements
 Flextime
 Flextime allows employees to choose the hours
they work within a defined period of time.
 Job Sharing
 Job Sharing allows two or more individuals to split
a traditional 40-hour-a-week job.
 Telecommuting
 Telecommuting allows workers to work from home
at least 2 days a week on a computer linked to the
employer’s office.
Social and Physical Context of Work
 Social Context
 Interdependence
 Social support
 Interactions with other
people outside of work

 Physical Context
 Work that is hot, loud, and
dangerous is less
satisfying
 Work that is controlled,
relatively quiet, and safe
will be more satisfying
Motivation Through Employee Involvement
 Employee Involvement
 A participative process that uses employees’
input to increase their commitment to the
organization’s success.
 Examples:
 Participative Management
 Representative Participation
Motivation by Rewards
 Financial rewards: Pay
 Although pay is not the primary
factor driver for job satisfaction,
it is a motivator.
 Managers must pay attention to:
 What to pay: Establish a pay structure
 How to pay: Variable-pay programs
 What benefits and choices to offer

 Non-financial rewards: Employee recognition

 Using intrinsic rewards such as employee
recognition program does play an important role.
The Role of Leaders
 “A great man is
one who can
make a small
man feel great,
and perform
great.”
 Effective Methods

 RECOGNIZE A JOB WELL DONE

Recognition helps create:
 Emotional connection

 Fulfills our basic needs of esteem and belong to a

group.
The best part is – recognition is essentially free!
It needs to be personalized to the individual and each of
us experiences it differently. Therefore, it’s important for
managers to listen to their team and tailor techniques to fit
each person.
Effective Methods
 Focus on Intrinsic (NOT Extrinsic)
Rewards
Focus on intrinsic motivation that supports who
that person is and what they believe in.
For example: purpose (meaning), values,
autonomy, progress, relationships is what
matters not only most, but what makes the
motivation last (sustainable happiness).
 How to define Happiness?
Effective Methods
 Give Your Employees Autonomy
Human beings value autonomy. People want to
feel in control.
Builds trust with your employees and more
self-sufficient teams.
Effective Methods
 Setting Goals
Goals motivate employees to push beyond their
perceived limitations and make major
breakthroughs that will help your business.
Achieving small and major goals keeps us going
and feeds our desire to contribute and have an
impact.
 However, setting goals that are too big will put

your team into overdrive which may lead them

to feel overworked or burnt out.
Effect of Goal Difficulty on Performance

High
Task Performance

Area of
Optimal
Goal
Difficulty

Low
Moderate Challenging Impossible

Goal Difficulty
Effective Methods
 Create an Awe-Inspiring Work
Environment
Motivation and mood go hand in hand. That’s
because your mood affects your energy, ability
to concentrate, and overall sense of wellbeing.

If motivation matters to you, then you might

want to invest in your work environment.
Effective Methods
 Offer a Clear Path for Advancement
Establish a career development plan. This can
mitigate employees from leaving your
company.
Implement Individual Development Plans
(IDPs)
Effective Methods
 Have a Mission, Lead with Vision, and
Focus on the WHY
Employees need to know why and what they
are working towards.
This gets to the heart and soul of your
company’s purpose and functions.
 Having a strong Why behind your company’s

mission will help motivate every action your

team takes.
 WHY

Finding your Why?

WHAT

Every organization or company knows WHAT

they do. These are the products or services
they sell and for an individual, it is their job title
or roles.
HOW

Some organizations and individuals know

HOW they do what they do. They may call it
their “differentiating value proposition,”
“proprietary process” or “unique selling
proposition (USP).” The Hows are an
organization’s or individual’s strengths, values
or guiding principles. These are the things they
feel and it sets them apart from their
competition; the things they think make them
special or different from everyone else.
 WHY

Very few people and very few organizations can

clearly articulate WHY they do what they do. Why is a
purpose, a cause or a belief. It provides a clear
answer to the questions, “Why do you get out of bed
every morning?” “Why does your organization exist?”
and “Why should that matter to anyone else?”
Making money is NOT a Why. Revenues, profits,
salaries and other monetary measurements are
simply results of what we do.
The Why is about our contribution to impact and
serve others. The Why inspires us.
Uber
Mission Statement:
“Transportation as reliable as running water,
everywhere for everyone.”
Vision: Provide a crowd-sourced solution to the issue
of overpriced, hard-to-find taxis, and revolutionize the
unwieldy and monopolized taxi industry.
The biggest message from Uber is the idea of choice
and the focus on you:
“Get there – your day belongs to you.”
 airbnb

Mission Statement:
“Connect millions of people in real life all over the
world, through a community marketplace – so that you
can ‘Belong Anywhere’”

Vision: To create a world where everyone gets to mingle,

and connect with people of various cultures and
backgrounds via travel – whether you are in Kuala Lumpur
or Cuba, you will be able to ‘Belong Anywhere’.

Airbnb fundamentally solves three problems:

1) Having a spare room(s) in your house
2) Having to pay too much for hotel rooms
3) Getting a local and authentic experience.
Motivational Drivers
Motivational Factors
 Retention: Generation X

83% of GenXers (1965-80) are looking for new

jobs.
 Most have seniority and experience.

 More than 50% have been at their current

company for five years or more.

 8 out of 10 are at the level of manager or higher.

Why? They are seeking a job change for better

remuneration and working conditions.
1) Higher salary (33%)

2) More benefits (29%)

3) Better cultural and corporate values (25%)

 Retention: Generation Z

By 2025 GenZers (1997-2012) will be 25% of the

workforce in Vietnam.
 A desire for entrepreneurship and being a creator.

 2 out of 10 say that income and benefits are the key

motivation to take a new job.

 Learning new skills (44%)
 Acquiring new knowledge (21%)
 Earning salary (18%)
 Which is very different from Millennials, who still see earning
a (better) salary as the most exciting part of a new job.
 57% agree that “no room for development” is the
key reason for them to burn out.
 Expectations: Generation Z

Expectations from the company during their first month on

the job.
 Technical job skills (only 8% of companies in Vietnam

feel that graduates have the required skills to perform

well)
 1 out of 3 deemed networking and communication

skills are indispensable.

 30% foreign language skills are important.

 Also relevant:

 Expand their overall knowledge

 Gain industry insights
 Understand the company culture
 Acquire soft skills
 Purpose: Generation Z

Purpose: Gen Z cares a lot!

 93% want to change the world.

 80% have already supported a cause.

66% say recycling and protecting the environment

is by far their most important cause followed by
COVID-19 protection and feeling protected from
crime.
 Motivation: Generation Z

Solutions: Start by looking at how creativity can be

central to the role.
 Employees need something to look forward that taps

into their abilities and passion for sharing content online.

 Ensure pay is competitive, but pay attention to

opportunities for Gen Z employees to learn, grow, and

discover themselves.
 Create and sustain meaning by understanding that they
care, and learning what they care about.
 Companies would do well to tap into this sense of
purpose and make Gen Z-ers’ everyday work more
meaningful.
 Communication: Generation Z

Workplace Environment
Communication: forget the face-to-face
 Only 8% of Gen Z prefer in-person

communication with coworkers.

 63% communicate by Instant Messaging (IM)

 10% video calls

 9% emails

 8% in-person meetings

 8% phone calls

 2% text messaging
 Motivation: Generation Z

Workplace Environment
Independently:
 52% prefer working in groups. However, it’s less

popular than with Millennials (59%.)

 40% prefer working independently. However, it’s

more popular than with Millennials (21%).

 The least favorite way of working is in groups

remotely.
 When approaching a new project 86% want to do

their own research and seek help after.

 Only 7% said they would ask for instructions immediately,
while another 7% would not ask for any kind of help.
 Motivation: Generation Z

Workplace Environment
Feedback:
 That independence doesn’t mean that they don’t want

to get feedback. In fact, they want a lot of it. 90% of

that they want feedback at least once a week. They
are also more likely than Millennials to say they want
feedback more than once a day (19% vs. 12.5%.)
 Continual improvement, to learn, and develop

themselves.
 Servant leadership and “manager as a coach”.
 Motivation: Generation Z

Workplace Environment
Feedback:
Failure, something that traditionally is not widely embraced in
Vietnam, is starting to become more accepted.
A more entrepreneurial drive and more of a “test and learn” mode –
learning by doing.
 80% of Gen Z think that embracing failure on a project will help

them to be more innovative.

Therefore, the importance for managers to give feedback frequently.
 Expects continuous feedback to aid their growth and development.

 Companies that can provide this in a structured way can expect to

fare a lot better in attracting and retaining the best young talent.
 Motivation: Generation Z

Workplace – The Perfect Office

When utilized in the right way, offices aren’t a cost,
but a tool towards what the company really cares
about – getting the most out of their teams.
“Companies don’t want an office. They want a
productive workforce. Add to that collaborative,
creative, inspired.”
 Motivation: Generation Z

Workplace – “The Destination Office”

The most important criteria for an office:
Comfortability, followed by professional, modern,
creative, quiet, relaxing and equipped with “high
focus” areas.
An office offering an attractive “backdrop” can be a
key reason for them to choose one workplace over
another.
 Pride of being able to say “this is my office”. This

can strongly support employer branding initiatives.

 Motivation: Generation Z

Workplace – The Perfect Office

Companies are designing their offices with playful art
that employees and clients can photograph and post
on social media.
 The idea: to make their brand look hip to job seekers

and generally liven up their image, as well as try to

spark enthusiasm and creativity among employees.”
Offices need to continuously adapt and evolve.
 Keep things exciting and to inspire new content every

single day.
 Motivation: Generation Z

Workplace – The Perfect Office

Wellbeing
 Napping space: 6 out of 10 Gen Z’ers want it in their offices.

“Sleep is the ultimate performance enhancer.”

 Greenery & natural air: 58% said it’s important in an office.

 Work-life balance and mental wellbeing: 69% of all

Vietnamese Gen Z asked for this.

 Yoga, promoting healthy workplace behaviors through

positive interventions.
 Flexible working time: 56% appreciated working from

home.
 25% prefer not to commute to work.
Creating a highly motivating work En.
 Clearly define an acceptable level of overall performance
or specific behavioral objective
 Help remove all obstacles to reaching performance
objectives
 Make rewards and discipline contingent on high
performance or drawing nearer to the performance
objective
 When discipline is required, treat it as a learning
experience for the individual
 Transform acceptable into exceptional behaviors
 Use reinforcing rewards that appeal to the individual
 Periodically check subordinates’ perceptions regarding the
equity of reward allocations
 Provide timely rewards and accurate feedback
Points to take home
 Need Theories (Maslow, Herzberg, Alderfer)
 Well known, but not very good predictors of behaviour
 Goal-Setting Theory
 While limited in scope, good predictor
 Expectancy Theory
 Good predictor of performance variables but shares many of
the assumptions as rational decision making
 Equity Theory
 Best known for research in organizational justice
 Motivation can be achieved through job design, work
arrangements, employee involvement, financial and
non-financial rewards
 Leaders play an essential role in motivating employees