Motivational Theories

Executive Summary
Motivation is the activation of goal-oriented behavior. Motivation may be intrinsic
or extrinsic. The term is generally used for humans but, theoretically, it can also be used to
describe the causes for animal behavior as well. Job satisfaction, motivation, and reward
systems are included in one area of organizational theory. The strongest influence in this area
is motivation because it overlaps into both of the other two components. A review of the
classical literature on motivation reveals four major theory areas: (1) Maslow's Hierarchy of
Needs; (2) Herzberg's Motivation/Hygiene (two factor) Theory; (3) McGregor's X & Y
Theories; and (4) McClelland's Need for Assessment Theory. Maslow states that people are
motivated by unmet needs which are in a hierarchical order that prevents people from being
motivated by a need area unless all lower level needs have been met. Herzberg states that
satisfaction and dissatisfaction are not on the same continuum and are therefore not opposites.
He further states that the motivational factors can cause satisfaction or no satisfaction while
the hygiene factors cause dissatisfaction when absent and no dissatisfaction when present,
both having magnitudes of strength. McClelland's need for achievement underlies Maslow's
self-actualization. McGregor's Theory Y matches much of Maslow's self-actualization level
of motivation. It is based on the assumption that self-direction, self-control, and maturity
control motivation. Reward systems must correspond to intrinsic factors if employees are to
be motivated. Satisfying extrinsic factors is an all too commonly attempted method for
motivating workers, but theory shows that these efforts cannot lead to motivated workers.
Businesses now need employees to have greater motivation and have a stake in the company
for which they work, as shown by Mayo. Maslow and Herzberg demonstrated that employees
are motivated by many different factors. Since every employee is an individual, with different
needs and aspirations, the process of reviews and personal development plans allows
recognition of their abilities and achievement, as well as potential development.

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Motivational Theories

Motivational Theories
Introduction

Motivation is the activation of goal-oriented behavior. Motivation may be intrinsic

or extrinsic. The term is generally used for humans but, theoretically, it can also be used to
describe the causes for animal behavior as well. This article refers to human motivation.
According to various theories, motivation may be rooted in the basic need to
minimize physical pain and maximize pleasure, or it may include specific needs such as
eating and resting, or a desired object, hobby, goal, state of being, ideal, or it may be
attributed to less-apparent reasons such as altruism, morality, or avoiding mortality.
Why Motivation is important

Quite apart from the benefit and moral value of an altruistic approach to treating
colleagues as human beings and respecting human dignity in all its forms, research and
observations show that well motivated employees are more productive and creative. The
inverse also holds true. The schematic below indicates the potential contribution the practical
application of the principles this paper has on reducing work content in the organization. On
the other hand, as a company owner, its not necessarily going to be the case that all of your
workers are going to be as motivated as you are.
There is far more to gain (and to lose) by owning the company. However, if there is
little or no employee motivation, you can never hope to achieve the desired results for your
company. Whilst there will be some workers who are naturally motivated, there will be others
who require some kind of stimulus if youre ever going to get them to be as productive as you
want them to be. Remember the old adageyou can lead a horse to water, but you cant
make it to drink.

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Motivational Theories

Employee Motivation

The job of a manager in the workplace is to get things done through employees. To do
this the manager should be able to motivate employees. But that's easier said than done!
Motivation practice and theory are difficult subjects, touching on several disciplines. In spite
of enormous research, basic as well as applied, the subject of motivation is not clearly
understood and more often than not poorly practiced. To understand motivation one must
understand human nature itself. And there lies the problem! Human nature can be very
simple, yet very complex too. An understanding and appreciation of this is a prerequisite to
effective employee motivation in the workplace and therefore effective management and
leadership.
What are Motivational Theories

Motivational theories explain the different incentives or stimuli that urge a person or
employee to achieve his own as well as the companys objectives. Motivational theories
are an important part of a managers repertoire. Using the most suitable motivation not only
helps the achievement of the objectives, but also serves to build a team spirit and oneness
among the employees as they are all travelling towards reaching their personal goals and at
the same time also working towards the mission of the company as a whole.
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Types of Motivational theories

Motivation theories can be classified broadly into two different perspectives: Content and
Process theories. Content Theories deal with what motivates people and it is concerned
with individual needs and goals. Maslow, Alderfer, Herzberg and McCelland studied
motivation from a content perspective. Process Theories deal with the process of
motivation and is concerned with how motivation occurs. Vroom, Porter & Lawler, Adams
and Locke studied motivation from a process perspective. Thus the classification would be
as follows:
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Motivational Theories

A. Content Theories about Motivation

B. Process Theories about Motivation

A. Content Theories about Motivation

Content Theory explains why human needs change with time. Another theory that
attempts to explain human behavior is Process theory. Content theory includes the work of
David McClelland, Abraham Maslow and other psychologists as they attempted to explain
why human needs change, but not how they change.
Content theories explain the specific factors that motivate people. In other words, they
explain what drives behavior. None of these theories have been conclusively shown to be
valid but they are helpful in providing a contextual framework for dealing with individuals.
Some of the theories that fall in this category are1. Douglas McGregor (Theory X & Theory Y)
2. Abraham Maslow (Hierarchy of needs)
3. Frederick Herzberg (Two factor motivation hygiene theory)
4. ERG Theory
5. David McClelland (Achievement motivation)

Douglas McGregor (Theory X & Theory Y)

Theory X
In this theory, which has been proven counter effective in most modern practice,
management assumes employees are inherently lazy and will avoid work if they can and that
they inherently dislike work. As a result of this, management believes that workers need to be
closely supervised and comprehensive systems of controls developed. A hierarchical structure
is needed with narrow span of control at each and every level.
According to this theory, employees will show little ambition without an enticing
incentive program and will avoid responsibility whenever they can. According to Michael J.
Papa, if the organizational goals are to be met, theory X managers rely heavily on threat and

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coercion to gain their employees' compliance. Beliefs of this theory lead to mistrust, highly
restrictive supervision, and a punitive atmosphere.
The Theory X manager tends to believe that everything must end in blaming
someone. He or she thinks all prospective employees are only out for themselves. Usually
these managers feel the sole purpose of the employee's interest in the job is money. They will
blame the person first in most situations, without questioning whether it may be the system,
policy, or lack of training that deserves the blame.
A Theory X manager believes that his or her employees do not really want to work,
that they would rather avoid responsibility and that it is the manager's job to structure the
work and energize the employee. One major flaw of this management style is it is much more
likely to cause diseconomies of scale in large business.
Theory Y
In this theory, management assumes employees may be ambitious and selfmotivated and exercise self-control. It is believed that employees enjoy their mental and
physical work duties. According to them work is as natural as play. They possess the ability
for creative problem solving, but their talents are underused in most organizations. Given the
proper conditions, theory Y managers believe that employees will learn to seek out and accept
responsibility and to exercise self-control and self-direction in accomplishing objectives to
which they are committed. A Theory Y manager believes that, given the right conditions,
most people will want to do well at work. They believe that the satisfaction of doing a good
job is a strong motivation. Many people interpret Theory Y as a positive set of beliefs about
workers. A close reading of The Human Side of Enterprise reveals that McGregor simply
argues for managers to be open to a more positive view of workers and the possibilities that
this creates. He thinks that Theory Y managers are more likely than Theory X managers to
develop the climate of trust with employees that are required for human resource
development. It's human resource development that is a crucial aspect of any organization.
This would include managers communicating openly with subordinates, minimizing the
difference between superior-subordinate relationships, creating a comfortable environment in
which subordinates can develop and use their abilities. This climate would be sharing of
decision making so that subordinates have say in decisions that influence them.

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Abraham Maslow (Hierarchy of needs)

Figure 1: An interpretation of Maslow's hierarchy of needs, represented as a

pyramid with the more basic needs at the bottom
Maslow's hierarchy of needs is a theory in psychology proposed by Abraham
Maslow in his 1943 paper "A Theory of Human Motivation". Maslow subsequently extended
the idea to include his observations of humans' innate curiosity. His theories parallel many
other theories of human developmental psychology, some of which focus on describing the
stages of growth in humans. Maslow used the terms Physiological, Safety, Belongingness and
Love, Esteem, Self-Actualization and Self-Transcendence needs to describe the pattern that
human motivations generally move through.
Hierarchy
Maslow's hierarchy of needs is often portrayed in the shape of a pyramid with the
largest, most fundamental levels of needs at the bottom and the need for self-actualization at
the top. While the pyramid has become the de facto way to represent the hierarchy, Maslow
himself never used a pyramid to describe these levels in any of his writings on the subject.
The most fundamental and basic four layers of the pyramid contain what Maslow called
"deficiency needs" or "d-needs": esteem, friendship and love, security, and physical needs. If
these "deficiency needs" are not met with the exception of the most fundamental
(physiological) need there may not be a physical indication, but the individual will feel
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anxious and tense. Maslow's theory suggests that the most basic level of needs must be met
before the individual will strongly desire (or focus motivation upon) the secondary or higher
level needs. Maslow also coined the term Metamotivation to describe the motivation of
people who go beyond the scope of the basic needs and strive for constant betterment.
The human mind and brain are complex and have parallel processes running at the same time,
thus many different motivations from various levels of Maslow's hierarchy can occur at the
same time. Maslow spoke clearly about these levels and their satisfaction in terms such as
"relative," "general," and "primarily." Instead of stating that the individual focuses on a
certain need at any given time, Maslow stated that a certain need "dominates" the human
organism. Thus Maslow acknowledged the likelihood that the different levels (Mentioned
below) of motivation could occur at any time in the human mind, but he focused on
identifying the basic types of motivation and the order in which they should be met.
Table-1: Maslow's hierarchy of needs
Leve

Type of Need

l
1
2

Physiological
Safety

Love and Belongingness

4
5

Esteem
Self-actualization

Self-transcendence

Examples
Thirst, sex, hunger
Security, stability, protection
To escape loneliness, love and be loved, and gain a
sense of belonging
Self-respect, the respect others
To fulfill one's potentialities
when a person seeks to further the boundaries of
their ideal self

Level-1: Physiological needs

Physiological needs are the physical requirements for human survival. If these requirements
are not met, the human body cannot function properly, and will ultimately fail. Physiological
needs are thought to be the most important; they should be met first.
Air, water, and food are metabolic requirements for survival in all animals, including humans.
Clothing and shelter provide necessary protection from the elements. While maintaining an
adequate birth rate shapes the intensity of the human sexual instinct, sexual competition may
also shape said instinct.

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Level-2: Safety needs

With their physical needs relatively satisfied, the individual's safety needs take precedence
and dominate behavior. In the absence of physical safety due to war, natural disaster, family
violence, childhood abuse, etc. people may (re-)experience post-traumatic stress
disorder or transgenerational trauma. In the absence of economic safety due to economic
crisis and lack of work opportunities these safety needs manifest themselves in ways such
as a preference for job security, grievance procedures for protecting the individual from
unilateral

authority,

savings

accounts,

insurance

policies,

reasonable

disability

accommodations, etc. This level is more likely to be found in children because they generally
have a greater need to feel safe.
Safety and Security needs include:

Personal security
Financial security
Health and well-being
Safety net against accidents/illness and their adverse impacts

Level-3: Love and belonging/Social Needs

After physiological and safety needs are fulfilled, the third level of human needs is
interpersonal and involves feelings of belongingness. This need is especially strong in
childhood and can override the need for safety as witnessed in children who cling to abusive
parents.

Deficiencies

within

this

level

of

Maslow's

hierarchy

due

to hospitalism, neglect, shunning, ostracism, etc. can impact the individual's ability to form
and maintain emotionally significant relationships in general, such as:

Friendship
Intimacy
Family

According to Maslow, humans need to feel a sense of belonging and acceptance among their
social groups, regardless if these groups are large or small. For example, some large social
groups may include clubs, co-workers, religious groups, professional organizations, sports
teams, and gangs. Some examples of small social connections include family members,
intimate partners, mentors, colleagues, and confidants. Humans need to love and be loved
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both sexually and non-sexually by others. Many people become susceptible to

loneliness, social anxiety, and clinical depression in the absence of this love or belonging
element. This need for belonging may overcome the physiological and security needs,
depending on the strength of the peer pressure.
Level-4: Esteem
All humans have a need to feel respected; this includes the need to have selfesteem and self-respect. Esteem presents the typical human desire to be accepted and valued
by others. People often engage in a profession or hobby to gain recognition. These activities
give the person a sense of contribution or value. Low self-esteem or an inferiority
complex may result from imbalances during this level in the hierarchy. People with low selfesteem often need respect from others; they may feel the need to seek fame or glory.
However, fame or glory will not help the person to build their self-esteem until they accept
who they are internally. Psychological imbalances such as depression can hinder the person
from obtaining a higher level of self-esteem or self-respect.
Most people have a need for stable self-respect and self-esteem. Maslow noted two
versions of esteem needs: a "lower" version and a "higher" version. The "lower" version of
esteem is the need for respect from others. This may include a need for status, recognition,
fame, prestige, and attention. The "higher" version manifests itself as the need for selfrespect. For example, the person may have a need for strength, competence, mastery, selfconfidence, independence, and freedom. This "higher" version takes precedence over the
"lower" version because it relies on an inner competence established through experience.
Deprivation of these needs may lead to an inferiority complex, weakness, and helplessness.
Maslow states that while he originally thought the needs of humans had strict
guidelines, the "hierarchies are interrelated rather than sharply separated". This means that
esteem and the subsequent levels are not strictly separated; instead, the levels are closely
related.
Level-5: Self-actualization
"What a man can be, he must be." This quotation forms the basis of the perceived
need for self-actualization. This level of need refers to what a person's full potential is and the
realization of that potential. Maslow describes this level as the desire to accomplish
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everything that one can, to become the most that one can be. Individuals may perceive or
focus on this need very specifically. For example, one individual may have the strong desire
to become an ideal parent. In another, the desire may be expressed athletically. For others, it
may be expressed in paintings, pictures, or inventions. As previously mentioned, Maslow
believed that to understand this level of need, the person must not only achieve the previous
needs, but master them.
Level-6: Self-transcendence
Self-transcendence refers to when a person seeks to further the boundaries of their
ideal self, to experience an intimacy beyond one's self. Cloningerlater incorporated selftranscendence as a spiritual dimension of personality in the Temperament and Character
Inventory.
Criticism
In their extensive review of research based on Maslow's theory, Wahba and Brudwell
found little evidence for the ranking of needs that Maslow described or for the existence of a
definite hierarchy at all.
The order in which the hierarchy is arranged (with self-actualization described as the
highest need) has been criticized as being ethnocentric by Geert Hofstede. Maslow's
hierarchy of needs fails to illustrate and expand upon the difference between the social and
intellectual

needs

of

those

raised

in

individualistic societies

and

those

raised

in collectivist societies. The needs and drives of those in individualistic societies tend to be
more self-centered than those in collectivist societies, focusing on improvement of the self,
with self-actualization being the apex of self-improvement. In collectivist societies, the needs
of acceptance and community will outweigh the needs for freedom and individuality. The
term "Self-actualization" may not universally convey Maslow's observations; this motivation
refers to focusing on becoming the best person that one can possibly strive for in the service
of both the self and others. Maslow's term of self-actualization might not properly portray the
full extent of this level; quite often, when a person is at the level of self-actualization, much
of what they accomplish in general may benefit others or, "the greater self".
The position and value of sex on the pyramid has also been a source of criticism
regarding Maslow's hierarchy. Maslow's hierarchy places sex in the physiological needs
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category along with food and breathing; it lists sex solely from an individualistic perspective.
For example, sex is placed with other physiological needs which must be satisfied before a
person considers "higher" levels of motivation. Some critics feel this placement of sex
neglects the emotional, familial, and evolutionary implications of sex within the community,
although others point out that this is true of all of the basic needs.
Changes to the hierarchy by circumstance
The higher-order (self-esteem and self-actualization) and lower-order (physiological,
safety, and love) needs classification of Maslow's hierarchy of needs is not universal and may
vary across cultures due to individual differences and availability of resources in the region or
geopolitical entity/country.
In one study, exploratory factor analysis (EFA) of a thirteen item scale showed there
were two particularly important levels of needs in the US during the peacetime of 1993 to
1994: survival (physiological and safety) and psychological (love, self-esteem, and selfactualization). In 1991, a retrospective peacetime measure was established and collected
during the Persian Gulf War and US citizens were asked to recall the importance of needs
from the previous year. Once again, only two levels of needs were identified; therefore,
people have the ability and competence to recall and estimate the importance of needs. For
citizens in the Middle East (Egypt and Saudi Arabia), three levels of needs regarding
importance and satisfaction surfaced during the 1990 retrospective peacetime. These three
levels were completely different from those of the US citizens.
Changes regarding the importance and satisfaction of needs from the retrospective
peacetime to the wartime due to stress varied significantly across cultures (the US vs. the
Middle East). For the US citizens, there was only one level of needs since all needs were
considered equally important. With regards to satisfaction of needs during the war, in the US
there were three levels: physiological needs, safety needs, and psychological needs (social,
self-esteem, and self-actualization). During the war, the satisfaction of physiological needs
and safety needs were separated into two independent needs while during peacetime, they
were combined as one. For the people of the Middle East, the satisfaction of needs changed
from three levels to two during wartime.

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A 1981 study looked at how Maslow's hierarchy might vary across age groups. A
survey asked participants of varying ages to rate a set number of statements from most
important to least important. The researchers found that children had higher physical need
scores than the other groups, the love need emerged from childhood to young adulthood, the
esteem need was highest among the adolescent group, young adults had the highest selfactualization level, and while old age had the highest level of security, it was needed across
all levels comparably. The authors argued that this suggested Maslow's hierarchy may be
limited as a theory for developmental sequence since the sequence of the love need and the
self-esteem need should be reversed according to age.
McGregor and Maslow's hierarchy
Theory X and Theory Y relate to Maslow's hierarchy of needs in how human behavior
and motivation are main priorities in the workplace in order to maximize output. In relation to
Theory Y, the organization is trying to create the most symbiotic relationship between the
managers and workers, which relates to Maslow's needs for Self-Actualization and Esteem.
For Self-Actualization, the manager promotes the optimum workplace through morality,
creativity, spontaneity, problem solving, lack (or minimization) of the effects of prejudice,
and acceptance of facts. We must accept that prejudice exists in others, even as we try to
minimize it in ourselves. These issues relate to Esteem when the manager is trying to promote
each team member's self-esteem, confidence, achievement, respect of others, and respect by
others.

Frederick Herzberg (Two factor motivation hygiene theory)

Frederick Herzberg's theory of motivation is also called 'Two Factor Theory', 'Dual
Factor Theory' and 'Hygiene / Maintenance Theory of Motivation'. This theory is based on
the information collected by him and his associates (in the USA in 1959) by interviewing two
hundred engineers and accountants. The information collected relates to the attitude of people
towards work. This attitude towards work depends on two sets of factors namely hygiene or
maintenance factors and the motivating factors.
Hygiene Factors of Two Factor Theory
According to Frederick Herzberg, the Hygiene Factors do little contribution to
provide job satisfaction. He called them "dissatisfiers' as their absence cause dissatisfaction
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but their presence is not motivating but only prevent dissatisfaction. The hygiene factors meet
man's needs to avoid unpleasantness but do not motivate them to take more interest in the
work. Hygiene factors (when provided) create a favorable environment for motivation and
prevent job dissatisfaction. They are not an intrinsic part of a job, but they are related to the
conditions under which a job is performed. When employer is unable to provide enough of
these factors to his employees, there will be job dissatisfaction. However, if they are
provided, they will not necessarily act as motivators. They will just lead employees to
experience no job dissatisfaction. Such hygiene factors are as noted below.
Hygiene /Maintenance Factors are :1. Company's Policies and Administration,
2. Supervision,
3. Working Conditions,
4. Interpersonal Relations with superiors and other subordinates,
5. Salary,
6. Job Security,
7. Status,
8. Personal Life, and
9. Employee Benefits.

Motivating Factors of Two Factor Theory

Motivating Factors act as forces of job satisfaction. They create positive and a longer
lasting effect on employees performance and are related to work itself. Adequate provisions
of such factors called are 'Satisfiers'. They make people happy with their jobs because they
serve man's basic needs for psychological growth. In addition, they also motivate employees
in their work. Such factors are five and are called motivators by Herzberg. The motivating
factors are:
Motivating Factors are :1. Achievement,
2. Recognition for Accomplishment,
3. Increased Responsibility,
4. Opportunity for Growth and Development, and
5. Creative and Challenging Work.
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Motivating factors motivate subordinates to take more interest in the work. They raise
efficiency and productivity of employees. According to Frederick Herzberg, motivating
factors are essential in order to provide job satisfaction and in order to maintain a high level
of job performance. Employees will not have job satisfaction if the motivating factors are not
provided in sufficient quality by the employer.
Validity and criticisms
In 1968 Herzberg stated that his two-factor theory study had already been replicated
16 times in a wide variety of populations including some in Communist countries, and
corroborated with studies using different procedures that agreed with his original findings
regarding intrinsic employee motivation making it one of the most widely replicated studies
on job attitudes.
While the Motivator-Hygiene concept is still well regarded, satisfaction and
dissatisfaction are generally no longer considered to exist on separate scales. The separation
of satisfaction and dissatisfaction has been shown to be an artifact of the Critical Incident
Technique (CIT) used by Herzberg to record events. Furthermore, it has been noted the
theory does not allow for individual differences, such as particular personality traits, which
would affect individuals' unique responses to motivating or hygiene factors.
A number of behavioral scientists have pointed to inadequacies in the need hierarchy
and motivation-hygiene theories. The most basic is the criticism that both of these theories
contain the relatively explicit assumption that happy and satisfied workers produce
more. Another problem is that these and other statistical theories are concerned with
explaining "average" behavior and, on the other hand, if playing a better game of golf is the
means chosen to satisfy one's need for recognition, then one will find ways to play and think
about golf more often, perhaps resulting in an accompanying lower output on the job. Finally,
in his pursuit of status a person might take a balanced view and strive to pursue several
behavioral paths in an effort to achieve a combination of personal status objectives.
In other words, an individual's expectation or estimated probability that a given
behavior will bring a valued outcome determines his choice of means and the effort he will
devote to these means. In effect, this diagram of expectancy depicts an employee asking
himself the question posed by one investigator, "How much payoff is there for me toward
attaining a personal goal while expending so much effort toward the achievement of an
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assigned organizational objective?" The expectancy theory by Victor Vroom also provides a
framework for motivation based on expectations.
This approach to the study and understanding of motivation would appear to have
certain conceptual advantages over other theories:
First, unlike Maslow's and Herzberg's theories, it is capable of handling individual
differences.
Second, its focus is toward the present and the future, in contrast to drive theory,
which emphasizes past learning. Third, it specifically correlates behavior to a goal and thus
eliminates the problem of assumed relationships, such as between motivation and
performance. Fourth, it relates motivation to ability: Performance = Motivation X Ability.
That said, a study by the Gallup Organization, as detailed in the book First, Break All
the Rules: What the World's Greatest Managers Do by Marcus Buckingham and Curt
Coffman, appears to provide strong support for Herzberg's division of satisfaction and
dissatisfaction onto two separate scales. In this book, the authors discuss how the study
identified twelve questions that provide a framework for determining high-performing
individuals and organizations. These twelve questions align squarely with Herzberg's
motivation factors, while hygiene factors were determined to have little effect on motivating
high performance.
Comparison between Maslow and Herzberg Theory of Motivation Difference
Meaning
o Maslow's theory is based on the concept of human needs and their satisfaction.
o Hertzberg's theory is based on the use of motivators which include achievement,
recognition and opportunity for growth.
Basis of Theory
o Maslow's theory is based on the hierarchy of human needs. He identified five sets of
human needs (on priority basis) and their satisfaction in motivating employees.

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o Hertzberg refers to hygiene factors and motivating factors in his theory. Hygiene
factors are dissatisfiers while motivating factors motivate subordinates. Hierarchical
arrangement of needs is not given.
Nature of Theory
o Maslow's theory is rather simple and descriptive. The theory is based long experience
about human needs.
o Hertzberg's theory is more prescriptive. It suggests the motivating factors which can
be used effectively. This theory is based on actual information collected by Hertzberg
by interviewing 200 engineers and accountants.
Applicability of Theory
o Maslow's theory is most popular and widely cited theory of motivation and has wide
applicability. It is mostly applicable to poor and developing countries where money is
still a big motivating factor.
o Herzberg's theory is an extension of Maslow's theory of motivation. Its applicability is
narrow. It is applicable to rich and developed countries where money is less important
motivating factor.
Descriptive or Prescriptive
o Maslow's theory or model is descriptive in nature.
o Herzberg's theory or model is prescriptive in nature.
Motivators
o According to Maslow's model, any need can act as motivator provided it is not
satisfied or relatively less satisfied.
o In the dual factor model of Hertzberg, hygiene factors (lower level needs) do not act
as motivators. Only the higher order needs (achievement, recognition, challenging
work) act as motivators.

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ERG Theory
Clayton Paul Alderfer (born September 1, 1940 in Sellersville, Pennsylvania) is
an American psychologist who

further

developed Maslow's

hierarchy

of

needs by

categorizing the hierarchy into his ERG theory (Existence, Relatedness and Growth). The
existence group is concerned with providing the basic material existence requirements of
humans. They include the items that Maslow considered to be physiological and safety needs.
The second group of needs is those of relatedness the desire people have for maintaining
important interpersonal relationships. These social and status desires require interaction with
others if they are to be satisfied, and they align with Maslow's social need and the external
component of Maslow's esteem classification. Finally, Alderfer isolates growth needs: an
intrinsic desire for personal development. These include the intrinsic component from
Maslow's esteem category and the characteristics included under self-actualization.
Alderfer categorized the lower order needs (Physiological and Safety) into the Existence
category. He fit Maslow's interpersonal love and esteem needs into the Relatedness category.
The Growth category contained the self-actualization and self-esteem needs. Alderfer also
proposed a regression theory to go along with the ERG theory. He said that when needs in a
higher category are not met then individuals redouble the efforts invested in a lower category
need. For example if self-actualization or self-esteem is not met then individuals will invest
more effort in the relatedness category in the hopes of achieving the higher need.

David McClelland (Achievement motivation)

Some people have an intense desire to achieve while others are not so keen about
achievement. David C. McClelland had studied this phenomenon for over twenty years
at Harvard

University and

proposed

his Achievement

Motivation

Theory (Also

called Manifest Need Theory). According to him, there are certain needs that are learned and
socially acquired as the individual interacts with the environment. McClelland classified such
needs into three broad categories. These area. Need for power
b. Need for affiliation
c. Need for achievement
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Need for power

This need is indicated by a person's desire to control and influence the behavior of
others. A person with desire for power likes to compete with others when the situation is
favorable for such domination. Such persons prefer jobs that provide them an opportunity to
acquire leadership with power. There are two aspects of power accordingly to McClelland.
These are: positive and negative. Positive use of a power is necessary when a manager desires
to achieve results through the efforts of others. The negative use of power is possible when a
person uses power for personal aggrandizement. Such use of power may prove to be harmful
to the Organization.
Need For Affiliation
Here, the person has a need/desire for affection and wants to establish friendly
relationships. A person with high need for affiliation seeks to establish and maintain
friendships and dose emotional relationships with others. He wants to be liked by others and
develops a sense of belonging by joining informal groups in the Organization. Such persons
(managers) prefer tasks that require frequent interaction with subordinates/co-workers.
Need For Achievement
Here, the person desires to succeed in competitive situations. He desires to prove his
superiority over others. Such person sets reasonably difficult but potentially achievable goals
for himself. He accepts moderate degree of risk. He is more concerned with personal
achievement than with the rewards of success. Moreover, he feels that he can achieve the goal
with his efforts and abilities. He also desires to have concrete feedback (social or attitudinal)
on his performance. Such person has high level of energy and capacity to work hard. He
naturally prefers jobs which tax his abilities and skills fully. This again is for achieving the
objectives set. According to McClelland, the need for achievement is the most important need
which can be used effectively for the economic progress of a nation.
Persons with achievement needs tend to be motivated by difficult, challenging and
competitive work situations and not by routine and non-competitive situations. They
habitually spend their time thinking about doing things better. They are not motivated by

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money but in their future achievements. Such employees are better achievers and naturally
get promotions faster. An Organization also grows faster and moves towards prosperity with
the support of such achievement seekers employees.
Importance of Achievement Motivation Theory
McClelland's theory is important as he argues that the achievement motive can be
taught. It can be achieved by learning. Even reward and appreciation of high performance of
subordinates is useful for raising their achievement need level. This is how motivation of
employees is possible by developing the desire for higher achievement in their mind. Such
achievement motivation is necessary and useful for the success of an enterprise.
McClelland's theory of motivation is quite extensive. He developed achievement
motive for motivation. His assertion that achievement motive can be developed among the
employees is important. This is possible through well-conceived and deliberate learning
process. This he (McClelland) proved in an experiment carried out in a large U.S.
Corporation.
According to McClelland, every person has an achievement motive to some extent.
However, some are constantly more achievement-oriented than others. Most people will put
more efforts into their work if they are challenged to do better. However, the achievementmotivated person is likely to outstrip all others in his zeal to improve performance when he is
challenged. He makes more efforts and accomplishes more. This background can be used for
motivation of employees. In fact, McClelland's achievement motivation theory is based on
this experience which he gained while working with Harvard University.
Achievement motivation is very essential for the success of an entrepreneur or
enterprise. Every employee should have some objective which he desires to achieve. Such
desire for achievement acts as a motivating factor. According to McClelland, the need for
achievement is the most important need. It can be used as motivating factor for economic
progress of a nation and even for the success of an enterprise or entrepreneur. An
entrepreneur or a manager has to put forward some objective before every employee and
encourage the employee to achieve the same. To create the desire for achievement of
objective is a way to motivate employee. In this way, achievement motivation is useful for
the success of an enterprise/entrepreneur.

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B. Process Theories about Motivation

Process theory is a commonly used form of scientific research study in which events
or occurrences are said to be the result of certain input states leading to a certain outcome
(output) state, following a set process. Another theory that attempts to explain human
behavior is Content theory.
Process theory holds that if an outcome is to be duplicated, so too must the process
which originally created it, and that there are certain constant necessary conditions for the
outcome to be reached. When the phrase is used in connection with human motivation,
process theory attempts to explain the mechanism by which human needs changes. Some of
the theories that fall in this category are1. Victor Vroom (Expectancy Theory)
2. Equity Theory
3. Goal Setting Theory

Victor Vroom (Expectancy Theory)

These types of Motivational Theories fix the expectations of persons as the main
motivational factors. Unlike the Need Theories, the Expectancy Theory focuses more on the
particular thought processes that the person uses to achieve what he wants. Expectancy
Theory depends on the interaction between three elements: the exertions put in by the person,
the prospect of increased levels of performance and the appeal of the results that arise from
such high performances. A manager should be shrewd enough to realize these factors and
demonstrate how the employees can attain their objectives. A word of caution here: not all
employee work for the same expectations and an employees expectation is also subject to
change from time to time.
Expectancy Theory argues that humans act according to their conscious expectations
that a particular behavior will lead to specific desirable goals.
Victor H. Vroom, developed the expectancy theory in 1964, producing a systematic
explanatory theory of workplace motivation. Theory asserts that the motivation to behave in a
particular way is determined by an individuals expectation that behavior will lead to a
particular outcome, multiplied by the preference or valence that person has for that outcome.
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Three components of Expectancy theory are:

i.

Expectancy: E -> P. The belief of the person that her/his effort (E) will result in

ii.

attainment of desired performance (P) goals.

Instrumentality: P -> R. The belief of the person that she/he will receive a reward (R)

iii.

if the performance (P) expectation is met.

Valence: The value of the reward according to the person. (e.g. Is the reward attractive
to the person?
Figure: The equation suggests that human behavior is directed by
subjective probability.

Equity Theory
The next type of Motivational Theories is the Equity theory that assumes that
employees are driven to better performance with the belief that their rewards would be
equitable or in direct proportion to their contribution to the company. For instance the amount
of time effort and skills that they put into the companys benefit should be reflected in the
compensation, benefits, promotions and so on. These should also be comparable and not less
than the rewards accruing to other employees of the similar situation in the same or other
companies. Any discrepancy would lead to demotivation, protests, demands or even
employee turnover. Developed by John Stacey Adams in 1963, Equity Theory suggests that if
the individual perceives that the rewards received are equitable, that is, fair or just in
comparison with those received by others in similar positions in or outside the organization,
then the individual feels satisfied. Adams asserted that employees seek to maintain equity
between the inputs that they bring to a job and the outcomes that they receive from it against
the perceived inputs and outcomes of others.
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Goal Setting Theory

Goal Setting Theory is another type among the Motivational Theories and acts on the
presumption that all human action is purposeful anddirected by conscious goals. This can
be exploited by a manager in directing the employee towards the goals jointly set by the
employee himself and the manager. As such the Goal Setting Theory is likely to be affected
by two factors: goal difficulty and goal specificity. The best degree of these motivational
factors would be the most specific goals and the moderately difficult ones as these would
keep the employee interested enough to improve his performance.
Edwin Locke proposed Goal Theory in 1968, which proposes that motivation and
performance will be high if individuals are set specific goals which are challenging, but
accepted, and where feedback is given on performance.
The two most important findings of this theory are:
1. Setting specific goals (e.g. I want to earn a million before I am 30) generates higher
levels of performance than setting general goals (e.g. I want to earn a lot of money).
2. The goals that are hard to achieve are linearly and positively connected to
performance. The harder the goal, the more a person will work to reach it.

Conclusion
Employee motivation is an important task for managers. Early motivational theory
such as that of Taylor suggested that pay motivated workers to improve production.
However businesses now need employees to have greater motivation and have a stake
in the company for which they work, as shown by Mayo. Maslow and Herzberg demonstrated
that employees are motivated by many different factors. Since every employee is an
individual, with different needs and aspirations, the process of reviews and personal
development plans allows recognition of their abilities and achievement, as well as potential
development. This benefits the individual by providing career progression.

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