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Similar to Herzberg – Theory X suggests that people work for extrinsic reasons,
Theory Y suggests that people work for the intrisic benefits work brings.

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“Work is as natural for humans as rest and play”

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There is also a Theory Z – Ouchi, aligned more closely to the japanese style
environment typified by:
Long term employment
Slow promotion
Company specific skills with a specialised career path
Participative decision making by consensus
Broad concern for welfare
Emphasis on trust

Type I - Pink

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Motivation 1.0 = survival
Motivation 2.0 = punishments and rewards
Motivation 3.0 = Type 1 behaviour – The satisfaction of the activity – The third drive “the
performance of the task”

3.0 requires
Autonomy, over what, when, who, and how
Mastery, becoming better at something that matters
Purpose – A cause greater than themselves

Atlassian – Fedex days

If-then rewards can do more harm than good – particularly for conceotual tasks
ROWE Results Only Work Environment – Best Buy

Carrots and sticks still effective for rule or routine based work

The Sawyer effect – turning work into play (and vice versa
The Candle experiment – demonstrates functional fixedness

Draws on the academic work of Mihaly Csikszentmihalyi, Douglas McGregor, Peter Drucker,
Gary Hemel, Edward Deci, Carol Dweck

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Valence = the anticipated satisfaction from an outcome
Expectancy = The expectation that effort will lead to performance
Instrumentality = The belief that performance will lead to reward
If an employee either does not care about getting a raise (Valence=0), does not think
that harder work will lead to higher performance (expectancy=0) or thinks that better
performance will not be rewarded (instrumentality=0) the motivational force will be
0.
Where:
V=sum of the Valences of all outcomes

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Effort = (E→P)x∑[(P→O)xV]
DECIDING ON THE ATTRACTIVENESS OF ALTERNATIVE BEHAVIOUR, TWO
TYPES OF EXPECTANCIES TO BE CONSIDERED

Effort – performance [E>P] that given amount of effort will result in

achieving intended level of performance

Performance – outcome [P>O] perception that a given level of

performance will actuallky lead to related outcomes

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Changes to inputs = work less hours or reduce amount or quality of work
Changes to outcomes = push for better pay, promotion etc
Cognitive distortion of inputs = distorted belief about hard they are really working or
relevance of a qualification.
Leaving the field = resigning or absenteeism
Acting on others = get others to lower their inputs
Comparing the object of comparison = maintaining comparison of a colleague
recently promoted

Managers can change outcomes – pay etc or instigate somebody to transfer/leave.

Managers must be aware of the importance of employees perceptions and recognise

the need to treat people fairly and equitably

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Goal theory [goal setting]
Peoples’ goals or intentions play important part in determining behaviour
People strive to achieve goals in order to satisfy their emotions and desires
Goal difficulty and the extent of a persons commitment to acheiving the goal
regulates the level of effort expended

Application::
Specific performance goals should be identified and set in order to maintain
motivation
Goals should be challenging but realistic
Accurate and timely feedback is more likely to lead to high performance
Goals may be set by managers or by the individual
Management by objectives is an example of goal setting
setting realistic goals [appraisals]

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