BS105 Business Administration - Motivation

Motivating Staff
Noel Muzondo
BS105 Business Administration
Department of Business Studies, Faculty of Commerce
University of Zimbabwe
Introduction to Motivation
Motivation is one of the concepts that are critical to management
and managers.
Without organisational managers motivating their subordinates to
perform, organisations too cannot perform and be profitable.
In this presentation we zero in on the concept of motivation, theories
of motivation, job design for motivation, and innovative ideas for
motivating.
Noel Muzondo, Dept of Business Studies, Faculty of Commerce,

05/11/2016 2
Explaining Motivation
Motivation is the force within or external to a person that energises
her, arouses enthusiasm, and persistence to chase a defined goal or
course of action (Robbins & Couler, 2012; Daft & Marcici, 2011;
Goodman, 2007:323).
Staff motivation impacts organisation performance hence one role
for managers is to direct motivation toward the attainment of
corporate objectives.
The study of motivation assists managers to appreciate what
stimulates people to start action, what informs their selection of
action, and why they persist in that action over time (Daft & Marcici,
2011:413).
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A simple model of motivation
NEED BEHAVIOUR REWARDS
Creates desire to satisfy needs Results in actions to fulfil needs Satisfy needs; intrinsic or
(friendship, recognition, extrinsic rewards
financial gain, achievement)
FEEDBACK
Reward informs a person whether behaviour was
suitable and should be used again
Intrinsic reward is the satisfaction obtained from performing a defined

action e.g. pleasant feeling or attaining mission.
Extrinsic reward is reward given by another person, typically a manager,
such as salary raise, promotion, or bonus.
Some people, especially higher performers, are satisfied more by intrinsic
rewards than by extrinsic rewards.
05/11/2016 4
Theories of motivation
Studies of motivation have revealed that high staff motivation
correlates with superior organisational performance and profitability.
Managers have a responsibility to find the right mix of motivation
strategies and rewards to fulfil employee needs and motivate high job
performance.
The concept of motivation can be better understood within the
context of three theories:
Content theories of motivation,
Process theories of motivation, and
Reinforcement theories of motivation.
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Content Theories of Motivation
Content theories focus on the needs that motivate people, which
energise them to take suitable action to fulfil those needs; people
have a list of needs they seek to fulfil.
Managers must seek to understand employee needs and design
reward systems that satisfies them and then direct employee energies
and priorities towards attaining organisational objectives (Daft &
Marcic, 2011:415).
We discuss four content theories in this presentation—i.e. the
hierarchy of needs, the ERG, two factor approach, and acquired
needs.
05/11/2016 6
Maslow’s hierarchy of needs model
The model proposes that humans have five broad needs that exist
within a fixed hierarchy ranging from primary, or low-order, needs to
secondary, or high-order, needs.
Dr Abraham Maslow argued that the basic needs must be fulfilled
before the next level of needs are fulfilled.

05/11/2016 7
Maslow’s hierarchy of needs theory (Cont’d)
Fulfilment of the Job Needs Hierarchy Fulfilment on the Job
Education, religion, hobbies & Opportunities for training,

interests, personal growth Self-Actualisation Needs advancement, growth & creativity
Approval of family, friends, Recognition, high status, increased
community Self-Esteem Needs responsibilities
Family, friends, community Workgroups, clients, co workers,
Social Needs supervisors
Freedom from war, pollution, Safety Needs Safe work, fringe benefits, job
violence security
Food, water, oxygen Heat, air, base salary
Physiological Needs
Source: Daft and Marcic (2011:415)

05/11/2016 8
Criticisms on Maslow’s hierarchy of needs
framework
Maslow is criticised for having intimated that his needs hierarchy is
universal and that needs are fixed, with lower-order needs having to
be fulfilled first before the next higher-level needs are satisfied.
The model was designed in the United States of America hence may not hold
entirely true in other economies and/or cultures.
Human needs may not necessarily have to be fulfilled in a fixed hierarchical
order; a person may leap from basic needs to self-esteem (respect) needs or
even self-actualisation needs before fulfilling some biological needs e.g. when
you earn a PhD before you buy a house.
The framework is theoretical hence lacks empirical evidence.

05/11/2016 9
Existence, Relatedness and Growth (ERG)
Needs Theory
Clayton Alderfer suggested a modification of Maslow’s hierarchy of
needs theory responding to the needs to simplify it and criticism that
it lacks empirical evidence.
The ERG model is based on three clusters of needs explained below:
Existence needs – that deal with physical wellbeing.
Relatedness needs – that focus on cultivating satisfactory relationships with
other people.
Growth needs – which concentrate on development of human potential and
the desire for personal growth and increased competence.

05/11/2016 10
ERG Needs Theory (Cont’d)
Alderfer’s ERG theory is similar to Maslow’s hierarchy of needs in that it is
also a hierarchical model suggesting people move up the hierarchy one
step at a time.
Nonetheless, Alderfer trimmed the number of levels from five to three and
included a frustration-regression principle in his ERG framework.
The frustration-regression principle enables a person who has failed to
attain a higher-order need to revert to an already satisfied lower-order
need hence the ERG provides for moving up and down the hierarchy, unlike
Maslow’s.
Need hierarchy theory clarifies why organisations must look for ways of
rewarding staff, facilitating their participation in decision making, and
giving them chances to contribute to the organisation and community.
05/11/2016 11
Herzberg’s two-factor approach to motivation
Frederick Herzberg designed the two-factor theory of motivation based on
interviews with 100s of employees when they were highly motivated to
work and when they were not.
Herzberg then concluded that there were two sets of dimensions that
contribute to employee’s behaviour in the work environment—motivators
and hygiene factors (see next slides for model and further explanation).
Motivators are factors that influence job satisfaction based on fulfilment
of high-level needs such as achievement, recognition, responsibility, and
opportunity for growth.
The presence or absence of motivators impact level of employee satisfaction and job
performance.

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Two-factor approach to motivation: model
and hygiene factors explained
Highly Satisfied
Hygiene factors are
Area of Motivators Motivators elements that explain
Satisfaction Achievement influence level of the presence or
satisfaction
Recognition absence of job
Responsibility dissatisfiers, such as
Work itself working conditions,
Personal growth pay, company policies,
Neither and interpersonal
Satisfied Nor relationships.
Dissatisfied Area of Hygiene Factors Hygiene factors The presence hygiene
Dissatisfaction influence level of factors or dissatisfiers
Working conditions
Pay and security dissatisfaction removes dissatisfaction
but their removal does
Company policies not result in employee
Supervisors satisfaction and
Highly Relationships motivation to perform.
Dissatisfied
05/11/2016 13
McClelland’s Acquired Needs Theory
David McClelland designed the acquired needs theory arguing that
particular needs are acquired or learned during a person’s lifetime.
This implies that we are not born with predefined needs but can
learn them as we live on.
McClelland identified three types of acquired needs:
Need for achievement – the desire to attain something challenging, meet a
high standard of success, understand complex tasks, and do better than
others;
Need for affiliation – the desire to establish close personal relationships,
avoid conflict, and form warm friendships, and;
Need for power – the desire to control others, be responsible for others, and
have authority over others.
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Acquired Needs Theory (Cont’d)
Early life experiences influence whether a person will acquire the three needs we
explained above (Daft & Marcic, 2011:420).
Children encouraged to do things for themselves learn the need to achieve;
Children approved or rewarded for establishing warm relationships with others develop the
need for affiliation.
Children fulfilled by controlling others develop the need for power.
People satisfied with need for affiliation could do well as marketing managers,
public relations managers, human resources managers.
People with a high need for achievement may be fulfilled with acquiring and
using expert knowledge regardless of their position in an organisation (academics
may be a good example – when a Dean’s term of office expires she reverts back
to her position as a lecturer/professor).
People with a high need for power may be satisfied with being in senior
managerial positions where they oversee others.

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Process Theories of Motivation
Process theories of motivation describe how people select
behavioural actions, or courses of action, to fulfil their needs and
evaluate the contributions of their chosen alternatives towards the
achievement of their goals.
Three models help to clarify the contributions of the process school
to our understanding of motivation:
Goal setting model
Expectancy model
Equity model

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Goal Setting Model
We have all travelled a long journey in our lives and have probably
learnt that we cannot be who we want to be unless we set ourselves
challenging goals and, design and implement courses of action or
strategies to meet them.
Many of our peers in primary or secondary school are probably now
nowhere near where we are because they, perhaps, did not care
which destination they reached in their life.
Hence goals are, indeed, the cradle or foundation of human
motivation, achievement and, ultimately, satisfaction in life.

05/11/2016 17
Goal Setting Model (Cont’d)
Edwin Locke and Gary Latham designed the goal-setting theory which
propounds that managers can improve employee motivation performance
if they define specific, challenging goals, and assist subordinates to track
[or measure] their progress toward meeting those goals timely [or within
a set deadline] (emphasis added) (Daft & Marcic, 2011:421).
From the emphasis added above, we infer that the key underpinning of the
goal setting theory are goals which are specific, challenging, trackable, and
timely.
However, according to Locke and Latham as cited in Daft and Marcic
(2011:421) the key elements of the goal-setting thesis are goal specificity,
goal difficulty [or challenge], goal acceptance [and co management], and
feedback.
To these, we can add goal measurability and time-constrained goals.

05/11/2016 18
Explanation of components of Locke and
Latham’s goal setting theory (Cont’d)
Goal specificity – goals must be clear in terms of what is to be attained
e.g. “To increase revenue” or “To reduce customer switching”.
Goal difficulty or challenge – the targets stated in goals must not be too
high to be unattainable or too low to be met easily.
Goal acceptance and co-management – organisational, departmental or
sectional goals must be acceptable to both management and subordinates;
employees need to buy into goals and commit themselves to them.
Thus participatory management is critical.
Feedback – this involves ensuring that staff receive information on the
extent to which they are trending toward meeting the goal(s).
While superiors, or managers, must give that feedback, empirical evidence shows
that self-feedback, where employees appraise themselves in terms of the goals they
agreed to in their team, is a stronger motivator than external feedback.

05/11/2016 19
Additional goal setting model components
explained
Goal measurability – Citing Daft and Marcic (2011:421) earlier on we
highlighted that goals must be trackable or measurable; for a goal to
be measurable it should specify a target preferably a numerical one
e.g. “To grow sales by 30 percent.”
Time-bound – Also recall that Daft and Marcic (2011:421) state that
goals must be timely or time-bound.
So the quality of a goal is good if it specifies the time within which it must be
fulfilled; for example:
To grow company sales for 2016 by 30 percent over those for 2015.

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SMART-C: Alternative components for the
goal setting model
If you read a number of management-related textbooks you will
learn that theorists (researcher and/or textbook writers) and
practitioners (i.e. consultants and managers) use a model called
SMART-C to define quality goals or even to audit the quality of
existing goals in an organisation when they are planning.
It appears that the very model can applied to explain goal setting
theory, of cause, with some minor modifications i.e. adding an “A” to
the model—SMART-CA.

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SMARTCA: Alternative components for the
goal setting model
S = Specific – goals must be specific, as already explained.
M = Measurable – goals must be trackable even if qualitative.
A = Achievable – goals should be attainable but challenging.
R = Realistic – goals should be achievable but challenging.
T = Time-bound – goals should attained within a specified time.
C = Congruency/Compatible – goals must be congruent and pull in one direction.
A = Acceptable – goals must be acceptable to both management and employees.

05/11/2016 22
Adam’s Equity Theory
As its name implies, this school of thought looks at a person’s
perceptions of how fairly they are being treated in comparison to
others at their level within an organisation.
Developed by J. Stacy Adams, equity theory suggests that a person
will conclude that she is being fairly and equitably treated if she
perceives her compensation as equal to what peers are getting for the
same contribution.
The model suggests that people measure equity by ratio of inputs
(i.e. education, experience, effort, and ability) to outcomes (i.e. pay,
benefits, recognition, and promotion).
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Equity Theory (Cont’d)
Equity exists whenever the ratio of a person’s input equals another’s
person outcomes.
Inequity exists when input-to-outcome ratios are not balancing such as
when a less-educated and less-experience employee is compensated better
than someone with higher qualifications and experience.
Perceived inequity also occurs also when a person learns that he is earning
more than peers making an equal contribution; the person may work
harder and pursue higher qualifications in order to justify higher
compensation.
Perceived inequity causes tension within persons that energises them to
bring equity into balance.

05/11/2016 24
Equity Theory (Cont’d)
The common strategies for reducing perceived inequity are:
Change work effort – a person may increase or reduce their effort.
Change outcomes – An underpaid person may ask for a salary raise, a bigger office,
or better official car.
Change perceptions – a person may change their perception through rationalisation
if they are not enable to enforce the desired change i.e. artificially increasing their
status or distorting other’s perceived rewards to bring equity.
Leave the job – a person feeling inequitably treated may decide to leave the job than
live with the inequity and look for another job where the person expects a more
favourable balance of rewards.
Organisation thus must take equity theory into account when they manage
human resources.
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Expectancy theory
Expectancy theory, designed by Victor Vroom, insinuates motivation is
determined by a person’s expectations about their capability to perform
tasks and receive wanted rewards (Daft & Mrcic, 2011:422).
Expectancy theory suggests that a person tends to behave in a particular
way depending on the expectation that the behaviour will be followed by
specified outcome and on the desirability of the outcome to the person
(Robbins & Coulter, 2012:470).
The theory is underpinned on the association among a person’s effort, a
person’s performance, and the attractiveness of outcomes related with
high performance (Daft & Mrcic, 2011; Robbins & Coulter, 2012:470).
The figure in next slide shows the relationship among critical facets of
expectancy theory.
05/11/2016 26
Critical facets of expectancy theory
E = P expectancy Valence
Probability that efforts will (Value of outcomes)
lead to desired performance
Effort Performance Outcomes

(Pay, recognition, other
rewards)
P = O expectancy
Probability that performance
will produce desired outcomes

05/11/2016 27
Critical facets of expectancy theory explained
Robbins and Coulter (2012:470) explain the relationships or variables in
the expectancy theory as follows:
Expectancy or effort-performance linkage is the probability perceived by a person
that putting a specified amount of effort will lead to a certain level of performance.
Instrumentality or performance-reward linkage is the extent to which a person is
convinced that performing at defined level is important in fulfilling the desired
outcome.
Valence or attractiveness of reward is the importance or value that a person
attaches to her goals and needs.
Expectancy theory argues that no universal theory describes what
motivates people hence emphasises that managers appreciate why staff
perceive particular outcomes as desirable and yet others as undesirable.
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Reinforcement Theories of Motivation
The reinforcement perspective on motivation is founded on the idea that
behaviour is a result of consequences.
The theory attempts to explain how staff’s behaviour in the workplace can
be changed or modified using negative and positive reinforcement or
simply rewards and punishments.
Behaviour modification is the series of techniques in reinforcement theory
that can be used to influence behaviour change in humans.
Reinforcement is anything that encourages a defined human behaviour to
be repeated or avoided or extinguished.
Reinforcement theory is based on the law of effect, which assumes that
positively reinforced behaviour is likely to be repeated, and unreinforced
behaviour is likely to be avoided (Daft & Marcic, 2011).

05/11/2016 29
Four reinforcement tools explained
The next slide will show a model of changing behaviour with
reinforcement and below we explain the four reinforcement tools
used in modifying employee behaviour, which are an integral part of
the framework.
Positive reinforcement – entails administering pleasant and rewarding
consequences after a desired behaviour.
Avoidance learning – also known as negative reinforcement, involves
removing an unpleasant consequence after a desired behaviour.
Punishment – is the administration of unpleasant outcomes on a staff
member after they have displayed a negative behaviour.
Extinction – is the withdrawal of a positive reward to discourage an
unwanted behaviour.

05/11/2016 30
A Model of Changing Behaviour with Reinforcement
Praise employee Positive reinforcement
Recommend pay raise Increases likelihood that
behaviour will be repeated
Employee increases
work rate
Negative Reinforcement
Avoid reprimands, (Avoidance Learning)
Behaviour negative statements Increases likelihood that behaviour
(e.g. slow work rate – supervisor will be repeated
requests faster rate)
Reprimand employee Punishment
Make negative statements Reduces likelihood that
behaviour will be repeated
Employee continues
slow work rate
Withhold raises, merit Extinction
awards, praise Reduces likelihood that behaviour
will be repeated
Source: Adapted from Daft and Marcic (2011:425) and Goodman et al. (2007:332) Reinforcement Tools
05/11/2016 31
Job Design and Employee Motivation
Having concluded our discussion on motivational theories, we now
move on to job design and motivation.
A job is an organisation of a component of work that one employee
does.
In the context of a university, a job may include teaching for
academic staff or registering students at the beginning of a semester,
printing certificates and transcripts for graduating students, for non-
academic staff.

05/11/2016 32
Job design and employee motivation (Cont’d)
It is imperative for managers to know the parts of a job that provide
motivation for employees and how to compensate for routine tasks that
have least intrinsic satisfaction.
Job design is the application of motivational theories to the structure of
work for improving productivity and satisfaction (Daft & Marcic, 2011:427).
Robbins and Coulter (2012:466) define job design as “the way tasks are
combined to form complete jobs.”
Now our discussion turns to four approaches to job design – i.e. job
simplification, job rotation, job enlargement, and job enrichment – so as to
demonstrate how staff motivation can be accomplished (Daft & Marcic,
2011:427-429).

05/11/2016 33
Job simplification
Job simplification is grounded in the principles of scientific
management and industrial engineering in which tasks are designed
to be simple, repetitive, and standardised.
Thus job simplification entails focusing on efficiency by reducing the
number of tasks one employee should do.
As a job is simplified, the employee has more time to focus on doing
more of the same routine, and this facilitates efficiency.
Job simplification also means that staff with low skills can do the
tasks or job while the organisation attains improved efficiency, and
workers are interchangeable since they only need little training and
exercise little personal judgement in doing the job.
05/11/2016 34
Job simplification (Cont’d)
While the principles of job simplification can be applied in a variety
of work contexta, they appear to be more suitable to technical or
manual jobs and mass service industries than to those that require
conceptual and professional skills.
Nonetheless, job simplification as a motivational technique has
failed.
Employees do not like routine and boring jobs and react in a number
of negative ways e.g. sabotage, absenteeism, and unionisation.
The figure in the next slide compares job simplification to job
rotation and job enlargement before we explain the latter two.
05/11/2016 35
A comparison of job simplification, job
rotation and job enlargement
Job Simplification Job Rotation Job Enlargement
Worker A Worker B Worker C Worker C Worker A Worker B Worker A
Task 1 Task 2 Task 3 Task 1 Task 2 Task 3 Task 1 Task 2 Task 3
Source: Daft and Marcic (2011:427)

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Job Rotation
A job rotation is a job design that systematically moves employees
from one job to the other to provide them with variety and
stimulation.
In a retail store, a shop level staff member may spent a week on the
till and thereafter spend another week merchandising, etc.
While the principles of job rotation are based on scientific and
engineering efficiencies, workers may still be bored after learning the
new task and the job becomes routine again, which means they will
be due for another rotation.

05/11/2016 37
Job Enlargement
Job enlargement combines a set of tasks into one enlarged job.
This concept emerged after realising that employees are bored and
dissatisfied by their oversimplified jobs.
In job enlargement, an employee may be responsible for a number of
tasks, say three to four, and this tends to remove the boredom of a
single task.
Thus job enlargement provides motivation to some extent hence is
preferable to job simplification and job rotation.

05/11/2016 38
Job Enrichment
Instead of just changing the number and frequency of tasks an
employee is responsible for, job enrichment takes into account
motivating factors – e.g. learning, opportunities for growth, job
responsibility, achievement, and recognition – in designing a job.
In an enriched job, employees have control over the resources they
need to do the job, they decide how they do the job, and set their
own pace of work (Daft & Marcic, 2011:429).
Research has shown that job enrichment motivates workers hence
improves employee performance and job satisfaction.

05/11/2016 39
Innovative Ideas for Motivating
Regardless of the debate over the carrot-and-stick practices of
motivation considered in this chapter, organisations continue to use
many kinds of incentive compensation as a strategy to motivate
employee performance.
The table in the next slide summarises the various new motivational
compensation techniques being applied by organisation to motivate
their employees and improve job performance and satisfaction.
The motivational techniques in the table can be effective if they are
used suitably and alongside motivational ideas that provide staff with
intrinsic rewards that meet their higher-level needs.
05/11/2016 40
New Motivational Compensation Techniques
Technique Purpose
Performance-related pay Rewards individual employees in proportion to their performance contributions.
Profit sharing Rewards all staff and managers within the business when performance targets are met. This
encourages team performance.
Employee share Gives employees part ownership of the organisation, enabling them to share in improved profit
ownership schemes performance.
(ESOS)
Lump-sum bonuses Rewards employees with one-off cash payment based on performance.
Pay for knowledge Links staff salary to the number of task skills acquired. Workers are motivated to learn the skills
for many jobs, thus increasing their flexibility and efficiency.
Flexible work schedule Permits staff to set their own work hours. Job sharing allows two or more part-time workers to
jointly cover a job. Telecommuting, also known as flex-place, allows employees to work from
home or an alternative workplace.
Team-based Rewards employees for behaviour and activities that benefit the team, such as cooperation,
compensation listening, and empowering others.
Lifestyle awards Rewards employees for meeting ambitious goals with luxury items, such as high-definition
televisions, tickets to big-name sporting events, and exotic travel.
Source: Adapted from Daft and Marcic (2011:431)

05/11/2016 41
Employee Empowerment
Employee empowerment is one technique that can be employed to
improve staff motivation hence performance and job satisfaction.
Empowerment involves the delegation of power and authority to
subordinates (Daft & Marcic, 2011:431)
Research has confirmed empowering employees improves their
motivation.

05/11/2016 42
Employee empowerment (Cont’d)
Empowering employees involves four components:
Information – In companies where employees are truly empowered they are
given financial and operational information.
Knowledge – Companies use training programmes and other development
tools to assist employees acquire the knowledge and skills they need to
contribute to organisational performance.
Power – Empowered employees have the authority to directly determine
work procedures and organisational performance such as through quality
circles or self-directed work teams.
Rewards – Companies that empower employees usually reward them based
on performance.

05/11/2016 43
Conclusion
This chapter has discussed motivation.
It defined motivation, discussed theories of motivation (i.e. content
theories, process theories, and reinforcement theories), job design
(i.e. job simplification, job rotation, job enlargement, and job
enrichment), various contemporary motivational compensation
techniques, and employee empowerment.
Motivated employees are satisfied with their jobs hence have higher
productivity than unmotivated employees.
Companies with satisfied and productive workers may perform better
than those with unsatisfied staff.
05/11/2016 44

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Motivating Staff

Noel Muzondo, Dept of Business Studies, Faculty of Commerce,

Intrinsic reward is the satisfaction obtained from performing a defined

Noel Muzondo, Dept of Business Studies, Faculty of Commerce,

Education, religion, hobbies & Opportunities for training,

Source: Daft and Marcic (2011:415)

Noel Muzondo, Dept of Business Studies, Faculty of Commerce,

Noel Muzondo, Dept of Business Studies, Faculty of Commerce,

Noel Muzondo, Dept of Business Studies, Faculty of Commerce,

Noel Muzondo, Dept of Business Studies, Faculty of Commerce,

Noel Muzondo, Dept of Business Studies, Faculty of Commerce,

Noel Muzondo, Dept of Business Studies, Faculty of Commerce,

Noel Muzondo, Dept of Business Studies, Faculty of Commerce,

Noel Muzondo, Dept of Business Studies, Faculty of Commerce,

Noel Muzondo, Dept of Business Studies, Faculty of Commerce,

Noel Muzondo, Dept of Business Studies, Faculty of Commerce,

Noel Muzondo, Dept of Business Studies, Faculty of Commerce,

Noel Muzondo, Dept of Business Studies, Faculty of Commerce,

Effort Performance Outcomes

Noel Muzondo, Dept of Business Studies, Faculty of Commerce,

Noel Muzondo, Dept of Business Studies, Faculty of Commerce,

Noel Muzondo, Dept of Business Studies, Faculty of Commerce,

Noel Muzondo, Dept of Business Studies, Faculty of Commerce,

Noel Muzondo, Dept of Business Studies, Faculty of Commerce,

Worker A Worker B Worker C Worker C Worker A Worker B Worker A

Task 1 Task 2 Task 3 Task 1 Task 2 Task 3 Task 1 Task 2 Task 3

Source: Daft and Marcic (2011:427)

Noel Muzondo, Dept of Business Studies, Faculty of Commerce,

Noel Muzondo, Dept of Business Studies, Faculty of Commerce,

Noel Muzondo, Dept of Business Studies, Faculty of Commerce,

Source: Adapted from Daft and Marcic (2011:431)

Noel Muzondo, Dept of Business Studies, Faculty of Commerce,

Noel Muzondo, Dept of Business Studies, Faculty of Commerce,

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