INDUSTRIAL-ORGANIZATIONAL PSYCHOLOGY

WORK MOTIVATION

 As organizational theory sates, employees need to be motivated to actualize their potential.

 WORK MOTIVATION = a set of energetic forces that originate both within as well as beyond an individual’s
being, to initiate work- related behavior, and to determine its form, direction, intensity and duration.
 MOTIVATION = a person’s internal disposition to be concerned with and approach positive incentives and avoid
negative incentives. These are patterns of behavior produced to reach a particular goal (Mitchell & Daniels).
 INCENTIVE = the anticipated reward or aversive event available in the environment.
 Results from a recent 2012 study, which examined age-related differences in work motivation,
suggest a “shift in people’s motives” rather than a general decline in motivation with age. That
is, it seemed that older employees were less motivated by extrinsically-related features of a job,
but more by intrinsically rewarding job features.
 There is general consensus that motivation involves three psychological processes: arousal, direction, and
intensity.
 AROUSAL = what initiates action. It is fueled by a person’s need or desire for something that is
missing from their lives at a given moment, either totally or partially
 DIRECTION = refers to the path employees take in accomplishing the goals they set for
themselves.
 INTENSITY = the vigor and amount of energy employees put into this goal-directed work
performance. The level of intensity is based on the importance and difficulty of the goal.
» These psychological processes result in four outcomes:
 First, motivation serves to direct attention, focusing on particular issues, people, tasks, etc.
 It also serves to stimulate an employee to put forth effort.
 Next, motivation results in persistence, preventing one from deviating from the goal-seeking
behavior.
 Finally, motivation results in task strategies.

THEORIES OF MOTIVATION
I. Need-based Theories

a. Maslow’s HIERARCHY OF NEEDS

 Focus on an employee’s drive to satisfy a variety

of needs through their work. These needs range
from basic physiological needs for survival to
higher psychoemotional needs like belonging and
self-actualization.
 In accordance with Maslow’s theory, employees
strive to satisfy their needs in a hierarchical order.
 In the workplace, this theory has proven to be a
poor predictor of employee behavior.

b. Atkinson & McClelland’s NEED FOR ACHIEVEMENT THEORY

 The most relevant and applicable need-based theory in the I–O psychologist’s arsenal.
 Studies show those who have a high need for achievement prefer moderate levels of risk, seek
feedback, and are likely to immerse themselves in their work.
 Achievement motivation can be broken down into
three types:
» Achievement – seeks position advancement,
likes to receive regular feedback on their progress
and achievements, often likes to work alone and
sense of accomplishment
» Authority/Power – need to lead, enjoys status
and recognition, winning and competition, make
an impact and be heard by others
» Affiliation – need for friendly social interactions
and to be liked, wants to belong to the group,
favors collaboration over competition, and doesn’t like high risk or uncertainty.
 The theory is referred to as Need for Achievement because individuals, who have a combination
of the three types, are theorized to be the most effective employees and leaders in the
workplace. They tend to be dedicated to their work and strive hard to succeed
 The Need for Achievement is in many ways similar to the need for mastery and self-actualization
in Maslow’s Hierarchy of Needs and growth in the ERG theory.

c. Alderfer’s E-R-G THEORY

 Proposes that if a higher-level need fails to be

filled, then a person may regress and seek to
further fill lower-level needs instead
(FRUSTRATION-REGRESSION PRINCIPLE)
 Collapsed the levels in Maslow’s theory from five
to three:
»EXISTENCE NEEDS = food, drink, warmth,
love.
»RELATEDNESS NEEDS = family, friends,
colleagues, employers.
»GROWTH NEEDS = need of people to grow and
developed themselves.
 Unlike in Maslow’s Theory, need at multiple
levels can be pursued at the same time.

II. Cognitive-based Theories

a. Adam’s EQUITY THEORY
 Derived from Social Exchange Theory.
 It explains motivation in the workplace as a cognitive process of evaluation, whereby the employee
seeks to achieve a balance between inputs or efforts in the workplace and the outcomes or rewards
received or anticipated.
 More useful in describing factors that contribute to a lack of motivation rather than increasing
motivation in the workplace.
  It has proven relevance in situations where an employee is undercompensated but failed to
demonstrate its usefulness in
understanding scenarios of
overcompensation.
» If an employee perceives that he is
undercompensated, he can adjust
his behavior to achieve equilibrium
in several different ways.
» If the employee is able to achieve
a ratio of inputs to outputs that he
perceives to be equitable, then the
employee will be satisfied.
» If the employee perceives an
inequity, the theory posits that the
employee will adjust his behavior to bring things into balance.
 There are FOUR FAIRNESS PERCEPTIONS applied to organizational settings:
a. Distributive Justice = the perception of equality of an individual’s outcomes
b. Procedural Justice = the fairness of the procedures used to determine one’s outcomes
c. Interactional Justice = the perception that one has been treated fairly with dignity and
respect
d. Informational Justice = the perception that one has been given all the information he/she
needs in order to best perform their jobs.
 When workplace processes are perceived as FAIR, the benefits to an organization can be HIGH. In
such environments, employees are more likely to comply with policies even if their personal
outcome is less than optimal.
 When workplace policies are perceived as UNFAIR, risks for retaliation and related behaviors such
as sabotage and workplace violence can INCREASE.

b. Vroom’s EXPECTANCY THEORY

 According to this theory, an employee will work smarter and/or harder if he believes his
additional efforts will lead to valued rewards.

 Expectancy theory explains this increased output of effort by means of the equation:

 F (Effort or Motivational Force) = Effort the employee will expend to achieve the
desired performance;
 E (Expectancy) = Belief that effort will result in desired level of performance;
 I (Instrumentality) = Belief that desired level of performance will result in desired
outcome;
 V (Valence) = Value of the outcome to the employee
  Expectancy theory has been shown to have useful applications
in designing a reward system.
 If policies are consistently, clearly and fairly implemented, then
the instrumentality would be high.
 If the rewards are substantial enough to be meaningful to an
employee, then the valence would be also considered high.
 This theory posits employee satisfaction to be an outcome of
performance rather than the cause of performance.
 This theory has been shown to have greater validity in research
in within-subject designs rather than between-subjects designs.
o That is, it is more useful in predicting how an employee might
choose among competing choices for their time and energy, rather
than predicting the choices two different employees might make.

c. Locke & Latham’s GOAL-SETTING THEORY

 Following the S.M.A.R.T criteria
 Locke found that employee were motivated by two key factors – GOALS and FEEDBACK.
» When you set specific and challenging goals,
and received regular feedback on your
progress, then your productivity will increase.
» Clear goals provide employees with something
to achieve while feedback helps an employee to
achieve a goal.
 When goals and feedback work together, employee
results (performance) improve.
 Studies have shown both feedback from the
employer and self-efficacy within the employee
must be present for goal-setting to be effective.

 FIVE PRINCIPLES OF GOAL SETTING

 CLARITY. When a goal is clear, it’s easy to understand exactly what you need to
achieve.
 CHALLENGE. It must hit the sweet spot between challenging but not overchallenging
you.
 COMMITMENT. You must be committed to it.
 FEEDBACK. You must receive feedback.
 TASK COMPLEXITY. It must not be too complex.
 TYPES OF FACTORS THAT INFLUENCE GOAL COMMITMENT:
» INTERNAL. The commitment decreases when the expectation to achieve is decreased.
» EXTERNAL. Goal commitment increases when the authority figure is physically present,
supportive, pay increases, peer pressure and external rewards.
» INTERACTIVE. It has been shown to be an inducement to setting higher goals and
working harder to reach them.

d. Bandura’s SELF-EFFICACY THEORY

 Studies have shown that self-efficacy is a strong predictor of high-performance.
 SELF-EFFICACY = the belief that you are capable of achieving a specific goal or performing a
specific task.
» The higher your self-efficacy, the more you believe you are capable of achieving a task or
goal.
» People are less likely to give a task their full effort, if their self-efficacy is low for that task.
 Empirically, studies have shown a strong correlation between self-efficacy and performance.
 FOUR FACTORS WE USE TO DETERMINE OUR SELF-
EFFICACY:
» EXPERIENCE = refers to past experience of completing
similar task (most important factor)
» VICARIOUS EXPERIENCE = by watching other people
perform a task.
» SOCIAL PERSUASION = others give you
encouragement that you can perform a task.
» PHYSIOLOGICAL FEEDBACK = the more at ease you are
with a particular task, the higher youe efficacy will be.

 The antecedents of self-efficacy may be influenced by

power of expectations, training or past experience and requires further research.
 It has been shown that setting high expectations can lead to improved performance
(PYGMALION EFFECT).
 Low expectations placed on an individual can lower their self-efficacy (GOLEM EFFECT).
 If an employee thinks she can succeed, she will likely succeed (GALATEA EFFECT).
 Relative to training, a mastery-oriented approach has been shown to be an effective way to
bolster self-efficacy.
o Individuals who believe that mastery can be achieved through training and practice are
more likely to develop greater self-efficacy than those who see mastery as a product of
inherent talent than is largely immutable.

III. Behavioral-based Theories

o Skinner’s REINFORCEMENT THEORY OF MOTIVATION
o Argues that the internal needs of individuals can be ignored when you are trying to motivate
them to behave in a certain way because people learn to change their behavior based on what
happens to them from exhibiting a certain behavior.
o FOUR FACTORS INFLUENCING WORKPLACE
MOTIVATION
1. Positive Reinforcement = the reward you give to an
employee when they exhibit desirable behavior (financial
bonuses, praise, recognition, time off in lieu etc.)
 The more spontaneous the reward, the more positive
reinforcement occurs.
2. Negative Reinforcement = an employee is rewarded for
desirable behavior by having something unpleasant
removed.
(Ex. Manager stops nagging the employee)
3. Punishment = happens when you use negative
consequences in the workplace to deter team members
from undesirable behavior.
(Ex. Manager demotes employee)
 Punishment is giving something negative, whereas
Negative Reinforcement is the taking away of something
negative.
4. Extinction = stopping someone’s learned behavior
(Ex. Manager ignores the behavior.)
o SCHEDULE OF REINFORCEMENT
 CONTINUOUS REINFORCEMENT – happens when the desired behavior is reinforced
each time it is observed.
 INTERMITTENT REINFORCEMENTS
a) FIXED-INTERVAL
  Reinforcement is given at set times (ex. Daily stand up meeting)
b) VARIABLE-INTERVAL
 Reinforcement is given regularly but not at set times
c) FIXED-RATIO
 A fixed number of actions have been performed.
 Ex. A mechanic is rewarded if he services 10 cars in a day.
d) VARIABLE-RATIO
 A variable number of actions have been performed.
 Ex. An employee is given their bonus if and only if, they achieve
all their targets.

ORGANIZATIONAL BEHAVIORAL MODIFICATION

 This approach applies the tenets of behaviorism to promote employee behaviors that an
employer deems beneficial and discourage those that are not.
 An effective use of positive reinforcement would be frequent praise while an employee is learning
a new task.
 Providing praise on a variable-ratio schedule would be appropriate, whereas
paying an employee on an unpredictable variable-ratio schedule would not be.

IV. Job-based Theories

a. Herzberg’s TWO-FACTOR THEORY (MOTIVATION-HYGIENE)
 Holds that the content of a person’s job is the primary source of motivation.
 Herzberg argued against the commonly held belief that money and other compensation is the
most effective form of motivation to an employee.
 Herzberg posed that high levels of hygiene factors could not create satisfaction. Motivation
factors however, could stimulate satisfaction within the employee, provided that minimum
levels of the hygiene factors were reached.

 For an organization to take full advantage of Herzberg’s theory, they must design jobs in such a
way that motivators are built in, and thus are intrinsically rewarding.
 JOB ENRICHMENT
» Expands jobs to give employees a greater role in planning, performing, and evaluating
their work, thus providing the chance to satisfy their motivator’s needs.
o Proper job enrichment, therefore, involves more than simply giving the workers
extra tasks to perform. It means expanding the level of knowledge and skills
needed to perform the job.
 b. Hackman and Oldham’s JOB CHARACTERISTICS THEORY
 Attempts to use job design to improve employee intrinsic motivation.
» GROWTH-NEED STRENGTH
 Ultimately determines the effectiveness of the core job dimensions on the
psychological states, and likewise the effectiveness of the critical psychological
states on the affective outcomes.
 They show that any job can be described in terms of FIVE KEY JOB CHARACTERISTICS:

» Sufficient levels of Skill Variety (using different

skills and talents in performing work)
» Task Identity (contributing to a clearly
identifiable larger project)
» Task Significance (impacting the lives or work of
other people) is likely to have workers who feel their
work has meaning and value)
» Sufficiently high levels of Autonomy
(independence, freedom and discretion in carrying
out the job) will inspire the worker to feel
responsibility for the work;
» Sufficiently high levels of Task Feedback
(receiving timely, clear, specific, detailed, actionable
information about the effectiveness of his or her job
performance) will inspire the worker to feel the
organization is authentically interested in helping to foster his/her professional
development and growth.

V. Self-Regulation Theory
 Based on the setting of goals, self-efficacy and the receipt of accurate feedback that is monitored
to enhance the likelihood of goal attainment.
 It is presumed that people consciously set goals for themselves that guide and direct their
behavior toward the attainment of these goals.
o These people also engage in self-monitoring or self-evaluation.
o Self-evaluation can be helped along if feedback is given when a person is working on their
goals because it can align how a person feels about how they are doing to achieve a goal
and what they are actually doing to achieve their goals.
 This theory has been linked to goal-setting and Goal-Setting Theory.

VI. Alternative Motivation Theories

 McGregor’s THEORY X AND Y

 Taylor’s SCIENTIFIC MANAGEMENT
» The goal of this theory was to find this “one best way” of doing things as efficiently as
possible.
» Workers don’t usually enjoy work. Because of this, they need to be closely monitored and
controlled closely.
Essentially, Taylor believed that employees had a natural tendency to slack off
whenever they could (Natural Soldiering).
 » Based on managers telling employees what to do, it is closely related to an autocratic style
of leadership.

 Mayo’s MOTIVATION THEORY

» Highlights the importance of managers taking more interest in their employees.
» Based on his study, he proposed that employees aren’t motivated by pay and
environmental factors. Instead, positive relational factors play a bigger role in
productivity.
» It is the group that determines productivity, not pay and not processes.
» Hawthorn Studies
 Sought to understand if changing the lighting conditions resulted in increased or
decreased productivity.
» Hawthorn Effect
o States that changes in behavior happen when you are monitoring or watching
employees. The mere presence of someone watching you, changes the way you
behave. You start to perform better.

» Elton Mayo’s Four Position Matrix

o Low Cohesiveness + Low Norms

→ Ineffective in terms of productivity
→ Teams like this wouldn’t last very long because nobody would be
motivated to be productive in any way

o High Cohesiveness + Low Norms

→ Have a negative impact on productivity
→ The teams gets on great, but negative behaviors are encouraged (gangs)
o High Norms + Low Cohesiveness
→ Can have a limited impact on productivity.
→ Each member will be working towards their own successes rather than
that of the team

o High Norms + High Cohesiveness

→ Teams that can make the greatest positive impact on productivity.
→ Each member supports each other to succeed.
→ A strong support network forms within this type of team