Learning Objectives

1. Characterize the nature of motivation, including its

importance and basic historical perspectives.
2. Identify and describe the major content perspectives
on motivation.
3. Identify and describe the major process
perspectives on motivation.
4. Describe reinforcement perspectives on motivation.
5. Identify and describe popular motivational
strategies.
6. Describe the role of organizational reward systems
in motivation.

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 The Nature of Motivation
Motivation
The set of forces that cause people to behave in
certain ways.
The goal of managers is to maximize desired
behaviors and minimize undesirable behaviors.
The Importance of Motivation in the
Workplace
Determinants of Individual Performance
Motivationthe desire to do the job.
Abilitythe capability to do the job.
Work environmentthe resources to do the job.

162
 Figure 16.1: The
Motivation Framework

163
 Content Perspectives on
Motivation
Content Perspectives
Approaches to motivation that try to answer the
question, What factors in the workplace motivate
people?
Content Perspectives of Motivation
Maslows Hierarchy of Needs
Aldefers ERG Theory
Herzbergs Two-Factor Theory
McClellands Achievement, Power, and Affiliation
Needs

164
 Content Perspectives on
Motivation (contd)
The Need Hierarchy Approach
Maslows Hierarchy of Needs
Physiologicalbasic survival and biological function.
Securitya safe physical and emotional environment.
Belongingnesslove and affection.
Esteempositive self-image/self-respect and recognition
and respect from others.
Self-actualizationrealizing ones potential for personal
growth and development.
Weakness of Maslows theory
Five levels of need are not always present.
Ordering or importance of needs is not always the same.
Cultural differences.

165
Figure 16.2: Maslows
Hierarchy of Needs

166
 Content Perspectives on
Motivation (contd)
The ERG Theory
Needs are grouped into three overlapping
categories:
Existence needsphysiological and security needs.
Relatedness needsbelongingness and esteem by
others.
Growth needsself-esteem and self-actualization.
ERG theory assumes that:
Multiple needs can be operative at one time (there is no
absolute hierarchy of needs).
If a need is unsatisfied, a person will regress to a lower-
level need and pursue that need (frustration-regression).

167
 Content Perspectives on
Motivation (contd)
The Two-Factor Theory (Herzberg)
Satisfaction and dissatisfaction are influenced by
two independent sets of factors.
Theory assumes that job satisfaction and job
dissatisfaction are on two distinct continuums:
Motivational factors (work content) are on a continuum
that ranges from satisfaction to no satisfaction.
Hygiene factors (work environment) are on a separate
continuum that ranges from dissatisfaction to no
dissatisfaction.

168
 Content Perspectives on
Motivation (contd)
The Two-Factor Theory (contd)
Theory posits that motivation is a two-step
process:
Ensuring that the hygiene factors are not
deficient and not blocking motivation.
Giving employees the opportunity to experience
motivational factors through job enrichment.

169
Figure 16.3: The Two-Factor
Theory of Motivation

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 Content Perspectives on
Motivation (contd)
Individual Human Needs (McClelland)
The need for achievement
The desire to accomplish a goal or task more effectively
than in the past.
The need for affiliation
The desire for human companionship and acceptance.
The need for power
The desire to be influential in a group and to be in control
of ones environment.
Implications of the Content Perspectives
Content (what causes motivation) Process (how motivation
occurs)

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 Process Perspectives on
Motivation
Process Perspectives
Approaches to motivation that focus on:
Why people choose certain behavioral options to satisfy
their needs
How they evaluate their satisfaction after they have
attained their goals.
Process Perspectives of Motivation
Expectancy Theory
Porter-Lawler Extension of Expectancy Theory
Equity Theory
Goal-Setting Theory

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 Process Perspectives on
Motivation (contd)
Expectancy Theory
Motivation depends on how much we want something and
how likely we are to get it.
Assumes that:
Behavior is determined by personal and environmental
forces.
People make decisions about their behavior in
organizations.
People have different types of needs, desires, and goals.
People choose among alternatives of behaviors in
selecting one that that leads to a desired outcome.
Motivation leads to effort that, when combined with ability
and environmental factors, results in performance which
leads to various outcomes that have value (valence) to
employees.
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 Process Perspectives on
Motivation (contd)
Elements of Expectancy Theory
Effort-to-Performance Expectancy
The employees perception of the
probability that effort will lead to a high
level of performance.
Performance-to-Outcome
Expectancy
The employees perception of the
probability that performance will lead to
a specific outcomethe consequence or
reward
for behaviors in an organizational
setting.

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 Process Perspectives on
Motivation (contd)
Elements of Expectancy Theory (contd)
Valence
An index of how much an individual values a particular
outcome.
It is the attractiveness of the outcome to the individual.
Attractive outcomes have positive valences and
unattractive outcomes have negative valences.
Outcomes to which an individual is indifferent have zero
valences.
For motivated behavior to occur:
Both effort-to-performance expectancy and performance-
to-outcome expectancy probabilities must be greater
than zero.
The sum of the valences must be greater than zero.

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Figure 16.4: The Expectancy
Model of Motivation

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 Process Perspectives on
Motivation (contd)
The Porter-Lawler Extension of Expectancy
Theory
Assumptions:
If performance results in equitable and fair rewards,
people will be more satisfied.
High performance can lead to rewards and high
satisfaction.
Types of rewards:
Extrinsic rewards are outcomes set and awarded by
external parties (e.g., pay and promotions).
Intrinsic rewards are outcomes internal to the individual
(e.g., self-esteem and feelings of accomplishment).

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 Figure 16.5: The Porter-Lawler
Extension of Expectancy Theory

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 Process Perspectives on
Motivation (contd)
Equity Theory
People are motivated to seek social equity in the
rewards they receive for performance.
Equity is an individuals belief that the treatment he or
she receives is fair relative to the treatment received by
others.
Individuals view the value of rewards (outcomes)
and inputs of effort as ratios and make subjective
comparisons of themselves to other people.
outcomes outcomes (other)
(self) =
inputs (self) inputs (other)
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 Process Perspectives on
Motivation (contd)
Equity Theory (contd)
Conditions of and reactions to equity comparisons:
Feeling equitably rewarded.
Maintain performance and accept comparison as fair
estimate.
Feeling under-rewardedtry to reduce inequity.
Change inputs by trying harder or slacking off.
Change outcomes by demanding a raise.
Distort the ratios by altering perceptions of self or of others.
Leave situation by quitting the job.
Change comparisons by choosing another object person.
Feeling over-rewarded.
Increase or decrease inputs.
Distort ratios by rationalizing.
Help the object person gain more outcomes.
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 Process Perspectives on
Motivation (contd)
Goal-Setting Theory
Assumptions
Behavior is a result of conscious goals and intentions.
Setting goals influence the behavior of people in
organizations.
Characteristics of Goals
Goal difficulty
Extent to which a goal is challenging and requires effort.
People work harder to achieve more difficult goals.
Goals should be difficult but attainable.
Goal specificity
Clarity and precision of the goal.
Goals vary in their ability to be stated specifically

1621
 Process Perspectives on
Motivation (contd)
Characteristics of Goals (contd)
Goal acceptance
The extent to which persons accept a
goal as their own.
Goal commitment
The extent to which an individual is
personally interested in reaching a
goal.
Implications of the Process
Perspectives
If rewards are to motivate
employees, they must be perceived
as being valued, attainable, fair and
equitable.
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Figure 16.6: The Expanded Goal-
setting Theory of Motivation

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 Reinforcement Perspectives
on Motivation
Reinforcement Theory
The role of rewards as they cause behavior
to change or remain the same over time.
Assumes that:
Behavior that results in rewarding
consequences is likely to be repeated, whereas
behavior that results in punishing
consequences is less likely to be repeated.

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 Reinforcement Perspectives
on Motivation (contd)
Kinds of Reinforcement in Organizations
Positive reinforcement
Strengthens behavior with rewards or positive outcomes
after a desired behavior is performed.
Avoidance
Strengthens behavior by avoiding unpleasant
consequences that would result if the behavior is not
performed.
Punishment
Weakens undesired behavior by using negative
outcomes or unpleasant consequences when the
behavior is performed.
Extinction
Weakens undesired behavior by simply ignoring or not
reinforcing that behavior.
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 Reinforcement Perspectives
on Motivation (contd)
Providing Reinforcement in Organizations
Reinforcement schedules
Fixed interval schedulereinforcement applied at fixed
time intervals, regardless of behavior.
Variable intervalreinforcement applied at variable time
intervals.
Fixed ratioreinforcement applied after a fixed number
of behaviors, regardless of time.
Variable Ratioreinforcement applied after a variable
number of behaviors, regardless of time.

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Table 16.1: Elements of
Reinforcement Theory

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 Reinforcement Perspectives
on Motivation (contd)
Providing Reinforcement in Organizations
(contd)
Behavior modification (OB mod)
A method for applying the basic elements of
reinforcement theory in an organizational setting.
Specific behaviors are tied to specific forms of
reinforcement.
Implications of the Reinforcement
Perspectives
Consistently applied reinforcement helps maintain
employee motivation by:
encouraging (rewarding) positive behaviors
discouraging (punishing) dysfunctional behaviors in an
organization.
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 Popular Motivational
Strategies
Empowerment and Participation
Empowerment
Enabling workers to set their own work goals, make
decisions, and solve problems within their sphere of
influence.
Participation
Giving employees a voice in making decisions about
their work.
Areas of participation for employees:
Making decisions about their jobs.
Decisions about administrative matters (e.g., work
schedules).
Participating in decision making about broader issues of
product quality.

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 Popular Motivational
Strategies (contd)
Techniques and Issues in Empowerment
Using work teams
Collections of employees empowered to plan, organize,
direct, and control their work.
Decentralization
Changing the overall method of organizing the firm
Conditions necessary for empowerment:
Power spread to lower organizational levels
Commitment to empowering workers
Systematic and patient efforts to empower workers.
Increased commitment to training.

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 Using Reward Systems to
Motivate Performance (contd)
Reward System
The formal and informal mechanisms by which
employee performance is defined, evaluated, and
rewarded.
Effects of Organizational Rewards
Higher-level performance-based rewards motivate
employees to work harder.
Rewards help align employee self-interest with
organizational goals.
Rewards foster increased retention and citizenship

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 Using Reward Systems to
Motivate Performance (contd)
Merit Reward Systems
Base a meaningful portion of individual
compensation on meritthe relative value of an
individuals contributions to the organization.
Employees who make greater contributions are given
higher pay than those who make lesser contributions.
Incentive Reward Systems
Concept: employee pay is based on employee
output.
Assume that:
Performance is under the control of the individual worker.
The employee work at a single task continuously.
Pay is tightly tied to performance (i.e., pay varies with
output).
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 Using Reward Systems to
Motivate Performance (contd)
Incentive Reward Systems (contd)
Incentive pay plans
Piece-rate systems
Sales commissions
Other forms of incentives
Non-monetary incentives (perks)
Team and Group Incentive Reward Systems
Gainsharing programs
Scanlon Plan
Employee stock ownership plans (ESOPs)

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 Using Reward Systems to
Motivate Performance (contd)
Executive Compensation
Standard forms of executive compensation
Base salary
Incentive pay (bonuses)
Special forms of executive compensation
Stock option plans
Executive perks
Criticism of executive compensation
Excessively large compensation amounts
Compensation not tied to overall performance of the
organization
Earnings gap between executive pay and typical
employee pay

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 Using Reward Systems to
Motivate Performance (contd)
New Approaches to Performance-Based
Rewards
Leveraging the value of incentives
Allowing individuals and groups in the organization to
have a say in how rewards are distributed.
Getting increasingly innovative in incentive
programs:
Offering stock options to all employees
Individualizing the rewards available to individuals in
reward systems

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 Key Terms
motivation effort-to-performance
content perspectives expectancy
Maslows hierarchy of outcomes
needs valence
ERG theory of equity theory
motivation avoidance
two-factor theory of positive reinforcement
motivation extinction
need for affiliation variable-ratio schedule
need for achievement variable-interval
need for power schedule
process perspectives participation
expectancy theory
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 Key Terms
behavior modification stock option plan
(OB Mod)
compressed work
schedule
job sharing
telecommuting
merit pay plan
reward system
piece-rate incentive
plan
gainsharing programs
Scanlon plan

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