Review

• Individual
– Personality
– Values
– Perception
– Decision Making
– Motivation
• Theories
– Early theories
– Contemporary theories
• Applications
1
Chapter 5: Motivation Concepts

2
Defining Motivation
• The result of the interaction between the
individual and the situation.
• The processes that account for an individual’s
intensity, direction, and persistence of effort
toward attaining a goal – specifically, an
organizational goal.

3
Defining Motivation
• 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

4
Early Theories of Motivation
• These early theories may not be valid, but they
do form the basis for contemporary theories
and are still used by practicing managers
– Maslow’s Hierarchy of Needs Theory
– McGregor’s Theory X and Theory Y
– Herzberg’s Two-Factor Theory
– McClelland’s Theory of Needs

5
Maslow’s Hierarchy of Needs
There is a hierarchy of five needs. As each
need is substantially satisfied, the next need
becomes dominant.
• Individuals cannot move to
Self-Actualization the next higher level until
Higher Order Esteem all needs at the current
Internal
Social
(lower) level are satisfied
Safety
• Must move in hierarchical
Lower Order
External
Physiological order

6
McGregor’s Theory X and Theory Y
• Two distinct views of human beings: Theory X
(basically negative) and Theory Y (positive).
– Managers used a set of assumptions based on their view
– The assumptions molded their behavior toward employees

Theory X Theory Y
• Workers have little • Workers are self-
ambition directed
• Dislike work • Enjoy work
• Avoid responsibility • Accept responsibility

• No empirical evidence to support this theory.

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

Company
Extrinsic and Growth Intrinsic and
Policies
Related to Related to
Dissatisfaction Salary Responsibility Satisfaction

Work
Achievement
Conditions

8
9
d

10
11
Criticisms of Two-Factor Theory
Herzberg says that hygiene factors must be met to
remove dissatisfaction. If motivators are given, then
satisfaction can occur.

• 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 12
McClelland’s Three Needs Theory
• Need for Achievement (nAch)
– The drive to excel, to achieve in relation to a set of standards,
to strive to succeed
• Need for Power (nPow)
– The need to make others behave in a way that they would
not have behaved otherwise
• 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 13
Performance Predictions for High nAch
• 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
• Good research support, but it is not a very practical theory

14
15
Contemporary Theories of Motivation
• Self-Determination Theory
• Goal-Setting Theory
– Management by Objectives (MBO)
• Self-Efficacy Theory
– Also known as Social Cognitive Theory or Social
Learning Theory
• Reinforcement Theory
• Equity Theory
• Expectancy Theory
16
Self-Determination Theory
(Cognitive Evaluation Theory)
People prefer to feel 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.
• Major Implications for Work Rewards
– Intrinsic and extrinsic rewards are not independent
– Extrinsic rewards may decrease intrinsic rewards
– Goal setting is more effective in improving motivation
– Verbal rewards increase intrinsic motivation; tangible
rewards reduce it
17
 Extrinsic Intrinsic

Verbal Tangible

18
Locke’s Goal-Setting Theory

19
Locke’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 (the more public the better!)
– Task characteristics (simple, well-learned) 20
Implementation: Management by Objectives

• MBO is a systematic way to utilize goal-setting.

• Goals must be:
– Tangible
– Verifiable
– Measurable
• Corporate goals are broken down into smaller, more specific goals
at each level of organization.
• Four common ingredients to MBO programs:
– Goal specificity
– Participative decision making
– Explicit time period
21
– Performance feedback
Goal-setting task
1. Break students into groups of three to five.
2. Spend a few minutes discussing your class instructor’s
job. What does he or she do? What defines good
performance? What behaviors will lead to good
performance?
3. Each group is to develop a list of five goals that
although not established participatively with your
instructor, you believe might be developed in an MBO
program at the college. Try to select goals that seem most
critical to the effective performance of your instructor’s
job.
22
Bandura’s Self-Efficacy Theory
• An individual’s belief that he or she is capable of
performing a task.
– Higher efficacy is related to:
• Greater confidence
• Greater persistence in the face of difficulties
• Better response to negative feedback (work harder)
– Self-efficacy complements Goal-Setting Theory

Increased Confidence

Given Hard Goal Higher Performance

Higher Self-Set Goal

23
Increasing Self-Efficacy

Enactive mastery
Vicarious modeling

Arousal Verbal persuasion 24

Increasing Self-Efficacy
• Enactive mastery
– Most important source of efficacy
– Gaining relevant experience with task or job
– “Practice makes perfect”
• Vicarious modeling
– Increasing confidence by watching others perform the task
– Most effective when observer sees the model to be similar to him- or
herself
• Verbal persuasion
– Motivation through verbal conviction
– Pygmalion and Galatea effects - self-fulfilling prophecies
• Arousal
– Getting “psyched up” – emotionally aroused – to complete task
– Can hurt performance if emotion is not a component of the task
25
Adams’ Equity Theory
• Employees compare their ratios of outcomes-to-
inputs of relevant others.
– When ratios are equal: state of equity exists – 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
27
Equity Theory’s “Relevant Others”
• Can be four different situations:
– 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 28
Employee Response
• 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)

29
Reactions to Inequity
• Propositions relating to inequitable pay:
– Paid by time:
• Overrewarded employees produce more
• Underrewarded employees produce less with low
quality
– Paid by quality:
• Overrewarded employees give higher quality
• Underrewarded employees make more of low quality

30
What you can do
• 1. Operate in good faith. Don’t show favoritism
– Be clear & consistent even with those employees who
try your patience
• 2. Don’t ignore employee concerns about
unfairness
– Acknowledge and fix what you can, Explain what & why
you cannot fix, Re-educate employee on fairness issues
as needed
• 3. Lead change efforts thoughtfully
– Communicate the need for change, involve employees,
take employee suggestions seriously 31
Justice and Equity Theory
Procedural
Justice
• Fairness of
outcome process
Distributive Interactional
Justice Justice
• Fairness of • Being treated with
outcome dignity and respect

Organizational
Justice Overall perception
of what is fair in
the workplace.
32
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 Valuation of the
performance of success in reward in
success getting reward employee’s eyes

33
Integrating Contemporary Motivation Theories

• Based on Expectancy Theory

34
Global Implications
• Motivation theories are often culture-bound.
– Maslow’s Hierarchy of Needs Theory
• Order of needs is not universal
– McClelland’s Three Needs Theory
• nAch presupposes a willingness to accept risk and performance concerns –
not universal traits
– Adams’ Equity Theory
• A desire for equity is not universal
• “Each according to his need” – socialist/former communists

• Desire for interesting work seems to be universal.

– There is some evidence that the intrinsic factors of Herzberg’s Two-
Factor Theory may be universal 35
Summary and Managerial Implications
• Need Theories (Maslow, Alderfer, McClelland, Herzberg)
– Well known, but not very good predictors of behavior
• Goal-Setting Theory
– While limited in scope, good predictor
• Reinforcement Theory
– Powerful predictor in many work areas
• Equity Theory
– Best known for research in organizational justice
• Expectancy Theory
– Good predictor of performance variables but shares many of
the assumptions as rational decision making
36
END.

37