Chapter 8

Motivation and Empowerment

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Chapter Objectives
Recognize and apply the difference between
intrinsic and extrinsic rewards.
Motivate others by meeting their higher-level
needs.
Apply needs-based theory of motivation.
Implement individual and systemwide rewards.
Avoid the disadvantages of “carrot-and-stick”
motivation.
Implement empowerment by providing the five
elements of information, knowledge, discretion,
meaning, and rewards.
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Motivation
The forces either internal or external
to a person that arouse enthusiasm
and persistence to pursue a certain
course of action

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 Ex. 8.1 A Simple Model of
Motivation

Need Creates desire to Behavior Results Rewards Satisfy

fulfill needs (money, in actions to fulfill needs: intrinsic or
friendship, recognition, needs extrinsic rewards
achievement

Feedback Reward informs person whether behavior was appropriate and should
be used again

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Types of Rewards
Intrinsic Rewards
Internal satisfactions a person receives in the
process of performing a particular action
Extrinsic Rewards
Rewards given by another person, typically a
supervisor, such as pay increases and
promotions
Systemwide Rewards
Rewards that apply the same to all people
within an organization or within a specific
category or department

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Ex. 8.2 Examples of Intrinsic and
Extrinsic Rewards
Extrinsic Intrinsic

Individual Large merit increase Feeling of self-

fulfillment

Pride in being part of

Systemwide Insurance benefits a “winning”
organization

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 Ex. 8.3 Needs of People and
Motivation Methods
Needs of people

Conventional Leadership
management

Lower needs Higher needs

Carrot and stick Empowerment

(Extrinsic) (Intrinsic)

Growth and
Control people
fulfillment

Adequate effort Best effort

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 Ex. 8.4 Maslow’s Hierarchy of
Needs
Need Hierarchy Fulfillment on the Job
Self-actualization Needs Opportunities for advancement, autonomy,
growth, creativity
Esteem Needs Recognition, approval, high status, increased
responsibilities
Belongingness Needs Work groups, clients, coworkers, supervisors

Safety Needs Safe work, fringe benefits, job security

Physiological Needs Heat, air, base salary

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 Ex. 8.5 Herzberg’s Two-Factor
Theory
Highly Satisfied
Area of Motivators Motivators
influence level
Satisfaction Achievement of satisfaction
Recognition
Responsibility
Work itself
Personal growth

Neither Satisfied
nor Dissatisfied
Hygiene
Area of Factors Hygiene factors
Work conditions influence level of
Dissatisfaction dissatisfaction
Pay/security
Co. policies
Supervisors
Interpersonal. relationships

Highly Dissatisfied
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Acquired Needs Theory
McClelland’s theory that proposes that
certain types of needs are acquired during
an individual’s lifetime
Three needs most frequently studied:
Need for achievement
Need for affiliation
Need for power

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 Ex. 8.6 Key Elements of
Expectancy Theory

Will putting effort into the task lead

E > P expectancy
to the desired performance?
Effort Performance

Will high performance lead to the

P > O expectancy
desired outcomes?
Performance Outcomes

Valence – value of outcomes Are the available outcomes

(pay, recognition, other highly valued?
rewards)

Motivation 11
Equity Theory

A theory that proposes that

people are motivated to seek
social equity in the rewards they
expect for performance

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