Motivating Employees

Shoukot Ali
Lecturer,
Department of Development Studies, DIU
 Motivation for the work
Motivation is the word derived from the word motive which
means needs, desires, wants & drives within the individuals. It is
the process of stimulating people to actions to accomplish the
goals. In the work goal context, the psychological factors
stimulating the peoples behaviour -
desire for money
success
recognition
job-satisfaction
team work, etc
One of the most important functions of management is to create
willingness amongst the employees to perform in the best of their
abilities. Therefore the role of a leader is to arouse interest in
performance of employees in their jobs.
Job performance = Ability + Motivation + Environment

# Incentive is an act or promise for greater action. Incentives are something

which are given in addition to wagers. It means additional remuneration/benefit
to an employee in recognition of achievement/better work.

1. Content/ Early Theories of Motivation

Maslows Hierarchy of Needs
Herzbergs Two-Factor Theory
MacGregors Theories X and Y

2. Process/ Contemporary Theories of Motivation

Goal-Setting Theory
Expectancy Theory
Equity Theory
Insentives

Positive Incentives
Incentives that give a positive guarantee for individuals
needs that called positive incentives.
Negative Incentives
As opposed to positive incentives, negative incentives
are provided in order to rectify an individuals mistakes
and errors for the sake of achieving satisfying results.
 Maslows Hierarchy of Needs Theory

Maslow separated 5 needs into higher and lower levels. Physiological and
safety needs were considered lower-order needs. Social, esteem, and
self-actualization needs were considered higher-order needs.
Lower-order needs are predominantly satisfied externally while higher-
order needs are satisfied internally.
Esteem needs: A persons needs for internal esteem factors such as
self-respect, autonomy, and achievement and external esteem factors
such as status, recognition, and attention.
Self-actualization needs: A persons needs for growth, achieving
ones potential, and self-fulfillment; the drive to become what one is
capable of becoming.
Maslow argued that each level in the needs hierarchy must be
substantially satisfied before the next need becomes dominant. An
individual moves up the needs hierarchy from one level to the next.
 14.3

Maslows Need Hierarchy

Once a need is substantially satisfied, an individual is no longer

motivated to satisfy that need. Therefore, to motivate someone, you
need to understand what need level that person is on in the
hierarchy and focus on satisfying needs at or above that level.
Herzbergs Two-Factor Theory
The two-factor theory is also known as motivation-hygiene theory and
dual-factor theory. In the theory, Herzberg identifies two sets of factors
that impact motivation in the workplace:

1. Motivators - gives positive satisfaction, arising from intrinsic

conditions of the job itself.
2. Hygiene factors - does not give positive satisfaction or
motivation, though dissatisfaction results from their absence. Hygiene
factors are required to avoid dissatisfaction. The term "hygiene" is used
in the sense that these are maintenance factors (extrinsic).

He also states that the opposite of Satisfaction is No satisfaction &

the opposite of Dissatisfaction is No Dissatisfaction.
Following Herzberg's twofactor theory, managers need to ensure that
hygiene factors are adequate and then build satisfiers into jobs.
 Theory X and Theory Y
Douglas McGregor devised Theory X and Theory Y in the year
1960. These theories refer to the two aspects of human nature at
work / two different viewpoints of people, such as
negative (called as Theory X) and
positive (called as Theory Y).
McGregor states that the viewpoint of managers with respect to the
nature of people is based on several assumptions.
 Goal Setting Theory

Goal Setting Theory of Motivation for leadership was formulated by Edwin

Locke in 1968. While it may not always be a good idea to have the
member be a part of the goal setting, although, that person may be
more motivated if s/he is a part of the decision-making process.

To be committed to the goal, the member should be involved in goal

setting, the goal should be consistent with other organizational goals.
Goals should be specific, measurable, agreed upon, realistic and
time-based.
 Implementation: MBO
Management by objectives (MBO) is a management model that aims to
improve performance of an organization by clearly defining objectives that
are agreed to by both management and employees.

According to the theory, having a say in goal setting and action plans
should ensure better participation and commitment among employees, as
well as alignment of objectives across the organization. The term was first
outlined by management guru Peter Drucker in 1954 in his book "The
Practice of Management.

Steps in the Process of MBO -

1. Determining Organizational Goals
2. Determining Employees Objectives
3. Constant Monitoring Progress and Performance
4. Performance Evaluation
5. Providing Feedback
6. The Performance Appraisal
 Expectancy Theory (Vroom)
People will be motivated if they believe that strong effort will lead to
good performance and good performance will lead to desired rewards.
Victor Vroom (1964) was the first to develop an expectancy theory
with direct application to work settings, which was later expanded and
refined by Porter and Lawler (1968) and others (Pinder, 1987).

The Expectancy theory states that employees motivation is an outcome

of how much an individual wants a reward (Valence), the assessment
that the likelihood that the effort will lead to expected performance
(Expectancy) and the belief that the performance will lead to reward
(Instrumentality).
 Motivation = A. Expectancy x B. Instrumentality x C. Valence.

It means that higher levels of motivation will result when expectancy,

instrumentality, and valence are all high.

If any one of the 3 factors is 0, the overall level of motivation is

zero.

For example, even if an employee believes that his/her effort will

result in performance, which will result in reward, motivation
will be 0 if the valence of the reward he/she expects to receive is
zero (no value for him)
 Equity Theory

Equity theory, developed by J. Stacey Adams, proposes that

employees compare what they get from a job (outcomes) in
relation to what they put into it (inputs), and then they compare
their inputsoutcomes ratio with the inputsoutcomes ratios of
relevant others.
If an employee perceives her ratio to be equitable in comparison to
those of relevant others, theres no problem. However, if the ratio
is inequitable, she views herself as under-rewarded or over-
rewarded.
When inequities occur, employees attempt to do something
about it. The result might be lower or higher productivity, improved
or reduced quality of output, increased absenteeism, or voluntary
resignation.
 Equity Theory
Example: If someone offered you $50,000 a year on your first job after graduating
from college, youd probably jump at the offer and report to work enthusiastic, and
certainly satisfied with your pay. How would you react, though, if you found out a
month into the job that a coworkeranother recent graduate, your age, with
comparable grades from a comparable school, and with comparable
work experiencewas getting $55,000 a year? Youd probably be upset!
 Chapter Related Model Questions

Broad Questions
Critically discuss Maslows Hierarchy of Needs theory.
Analyze Herzbergs Two-Factor Theory.
Evaluate the Goal-Setting Theory with proper examples.
Discuss the importance of Expectancy Theory.

Short Questions
What is incentive/ motivation?
Mention the differences between Esteem needs & Self-actualization needs?
Write a short note on Equity theory
Write a short note on X and Y Theories.

Thank You