Motivation Concepts

Chapter Learning Objectives
After studying this chapter, you should be able to:
Describe the three elements of motivation.
Identify four early theories of motivation and evaluate their applicability today.
Apply the predictions of the self-determination theory to intrinsic and extrinsic rewards.
Compare and contrast goal-setting theory and management by objectives.
Contrast reinforcement theory and goal-setting theory.
Demonstrate how organizational justice is a refinement of equity theory.
Apply the key tenets of expectancy theory to motivating employees.
Compare contemporary theories of motivation.
Explain to what degree motivation theories are culture-bound.
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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.
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
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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
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Maslow’s Hierarchy of Needs
There is a hierarchy of five needs. As each need is substantially satisfied, the next need becomes dominant.
Assumptions
Individuals cannot move to the next higher level until all needs at the current (lower) level are satisfied
Must move in hierarchical order
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Lower Order
External
Higher Order
Internal
See E X H I B I T 7-1

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
No empirical evidence to support this theory.
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Herzberg’s Two-Factor Theory
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See E X H I B I T S 7-2 and 7-3
Key Point: Satisfaction and dissatisfaction are not opposites but separate constructs
Extrinsic and Related to Dissatisfaction
Intrinsic and Related to Satisfaction

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
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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
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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
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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
Contemporary Theories of Motivation
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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)
Culture (best match is in North America)
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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
Performance feedback
Implementation: Management by Objectives
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See E X H I B I T 7-5

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
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See E X H I B I T 7-7

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
Equity Theory’s “Relevant Others”
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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)
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
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Justice and Equity Theory
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See E X H I B I T 7-8
Overall perception of what is fair in the workplace.

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.
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See E X H I B I T 7-9
Expectancy of performance success
Instrumentality of success in getting reward
Valuation of the reward in employee’s eyes

Integrating Contemporary Motivation Theories
Based on Expectancy Theory
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See E X H I B I T 7-10

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
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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
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