CHAPTER 10:

MANAGING
PEOPLE
MOTIVATION
BSPSY 3103
 OVERVIEW

1 Chapter Objectives

2 Definition of Motivation

3 History of Motivation

4 The Era of Industrial Psychology

5 Motivation Theories

6 Incentive Plans

7 Fun in the Workplace

CHAPTER OBJECTIVES
1 Learn different development strategies aimed at promoting
organizational effectiveness

2 Understand the theories about motivation and that

contribute to job satisfaction of employees

3 Learn the importance of Human Resources Management

motivation to the employees.

4 Understand different factors that drive employee behavior

MOTIVATION

The internal condition that activates behavior and

gives it direction, energizes and directs goal-
oriented behavior

Motivation is derived from the word 'motive', which denotes a

person's needs, desires, wants, or urges. It is the process of
motivating individuals to take action to achieve a goal.

one of the driving forces behind human behavior. It fuels

competition and sparks social connections. Its absence can lead
to mental illnesses such as depression. (Psychology Today 2023)
 HISTORY OF MOTIVATION
CARROT AND STICK METHOD
The name evolved from the stubbornness of donkeys that could only be moved by something with
a carrot. Early managers regularly offered economic carrots to entice people to work harder. This
technique was passed on from generation to generation and was a deeply rooted part of society
for hundreds of years.

This theory created a misconception that money always motivated persons to work harder but
managers soon realize that this method was only in the past and not effective and the field of
psychology was looking for new ways to motivate people in a short time and new type of
management.
 HISTORY OF MOTIVATION
ELTON MAYO EXPERIMENT IN PHILADELPHIA
TEXTILE MILL

Mayo concluded that the reason for the low productivity was that spinners had few opportunities
to communicate with one another. Financial incentives failed to increase productivity. Mayo felt
that the solution to this productivity problem was to change the atmosphere of the workplace.

The introduction of two 10-minute breaks for the spinner produces immediate results. Morale
improves and output increases tremendously. The spinner experiment confirmed our belief that it
was important for managers to take into account the psychology and well-being of the worker.

A new era of partnership between the managers and psychology began.

HISTORY OF MOTIVATION
Plato believed in a hierarchy organized such as dietary component, the emotional
and the rational.

Aristotle, for more than twenty years, continued to affirm the spiritual hierarchy.
However, he used different reforms which were different from his original belief.
He believed in those dietary and emotional components are relevant to the body
and part of the concept of motivation. They can prepare some sensors like
growth, physical comfort (food) and some sensory experiences such as pain and
pleasure (emotional).

These two parts together were the basis of irrational motivation force. The logic
section included all rational aspects of soul such as intellectual concept and some
voluntary features. The ancient Greeks presumed three component, the body's
desires, pleasures and pains (senses and efforts of will and spirit) in a hierarchical
arrangement for the first theoretical justification of the motivational activities.
RENE DESCARTES

He believed that the body is an inactive factor of motivation,

while will is an active factor of motivation.

The body has a physical and mechanical nature with

nutritional desires that answer to those desires by senses and
physiological reflects to external environment. (If you want to
understand physical motivations, physiological analysis must
be used). The mind has mental, moral and intellectual nature
which has purposefulness will. (If you want to understand
targeted motivations, analysis will be used). Therefore, will
always is force of motivation, Descartes devoted motivation
exclusively to the will of man for a first time. He provided the
first great theory of motivation for philosophers.
 MCGREGOR
One of the few Americans in 1950s who believed that
workers actually cared about doing good work. He felt
workers would be much more productive if management was
smart enough to align jobs with worker needs.
THE ERA OF
INDUSTRIAL He questioned a deeply held assumption that guided
managerial effort for centuries; workers had no rights beyond
PSYCHOLOGY the paycheck; their duty was to work hard and follow order.

McGregor and the other few psychologists held the view that
it was unfair and was bad psychology. They argued that
people skills, attitudes, energy and commitment are resources
that can make and unmake an enterprise.
 1 Organizations exist to serve human needs rather than
the reverse.

THE HUMAN People and organizations need each other. Organizations need
RESOURCE 2 ideas, energy and talent; people need careers, salaries and
opportunities.
FRAMEWORK IS
BUILT ON CORE
ASSUMPTIONS THAT When the fit between individual and system is poor, one or

HIGHLIGHT THIS 3 both suffer. Individuals are exploited or exploit organization-

or both become victims.
LINKAGE:

4 A good fit benefit both. Individuals find meaningful in satisfying

work and organizations get the talent and energy they need to
succeed.

The specialty of industrial-organizational psychology (also called I/O psychology) is characterized by the scientific
study of human behavior in organizations and the workplace.
The specialty of industrial-organizational psychology (also called I/O psychology) is characterized by the
scientific study of human behavior in organizations and the workplace.

SPECIALIZED
KNOWLEDGE

PROBLEMS
ADDRESSED

POPULATION
SERVED
 Specialized knowledge and training in the science
of behavior in the workplace requires in-depth
knowledge of organizational development,
SPECIALIZED attitudes, career development, decision theory,
human performance and human factors, consumer
KNOWLEDGE behavior, small group theory and process, criterion
theory and development, job and task analysis and
individual assessment.

The specialty of Industrial Organizational

Psychology addresses issues of recruitment,
selection and placement, training and
PROBLEMS development, performance measurement,
workplace motivation and reward systems, quality
ADDRESSED of work life, structure of work and human factors,
organizational development and consumer
behavior.
 The distinct focus of I/O psychology is on human
behavior in work settings. Therefore, the populations
POPULATION affected by the practice of I/O psychology include
individuals and applicants to business, industry, labor,
SERVED public (including non-profit), academic, community and
health organizations.

I/O Psychologists are scientist-practitioners who have

expertise in the design, execution and interpretation of
research in psychology and who apply their findings to
help address human and organizational problems in the
SKILLS AND PROCEDURES context of organized work. I/O psychologists:
UTILIZED
·Identify training and development needs;
·Design and optimize job and work and quality of
work life;
·Formulate and implement training programs and
evaluate their effectiveness;
·Coach employees;
·Develop criteria to evaluate performance of
individuals and organizations; and
·Assess consumer preferences, customer
satisfaction and market strategies
 MOTIVATION THEORIES

Motivation Theory is the study of understanding what drives a person to work

towards a particular goal or outcome. It's relevant to all of society but is
especially important to business and management. That's because a motivated
employee is more productive, and a more productive employee is more
profitable.

Extrinsic factors Intrinsic factors

Here people are motivated by a

· Here people are motivated by desire to satisfy human needs.
external factors such as a bonus These might include a desire to
for hard work or a sanction if please their boss or to achieve
targets are not met. certain professional or personal
goals.
MASLOW'S HIERARCHY OF
NEEDS
PHYSIOLOGICAL NEEDS Breathing
Homeostasis (a relatively stable state of
equilibrium)
These are biological requirements for Human Water/Food
Survival including Sleep
Excretion

SAFETY NEEDS Personal Security

Financial Security
Health and Well-being
Are personal security, financial security, and health Safety Net against accidents/illnesses and their
and well-being, which are more fundamental than adverse imapcts
physiological needs.

SOCIAL NEEDS Supportive and Communicative Family

Sense of belongingness and acceptance
Refer to the need that humans have for social To love and be loved
interaction and community engagement in order to
thrive. Social needs are also referred to as 'love
and belonging needs.
ESTEEM Self-esteem
Confidence
Esteem presents the normal human desire to be Achievement
accepted and valued by others. Respect of others
Respect by others

SELF- ACTUALIZATION Morality

Creativity
A self-actualizer is a person who is living creatively Spontaneity
and fully using his or her potential. It refers to the Problem Solving
desire for self-fulfillment, namely, to the tendency for a Lack of prejudice
person to become actualized in what they are
potentially.
HERZBERG'S MOTIVATION-HYGIENE THEORY
Frederick Herzberg two factor theory also known as intrinsic and extrinsic motivation was based
on interview with 200 engineers in accountant ii concludes that certain factors in the workplace
result in job satisfaction, but it absents, lead to dissatisfaction.

The two-factor theory (also known as Herzberg's motivation-hygiene theory and dual-factor
theory) states that there are certain factors in the workplace that cause job satisfaction while a
separate set of factors cause dissatisfaction, all of which act independently of each other.

Herzberg’s distinguished between:

MOTIVATORS give positive satisfaction

do not motivate if present but if absent,

HYGIENE FACTORS
result in demotivation.
 Recognition, achievement, advancement, responsibility,
EMPLOYEES SATISFIERS and personal growth

EMPLOYEES Working Conditions, Company Policy, Supervision,

Security, relationship with subordinates and Salary
DISSATISFIERS

RESEARCH QUESTIONING HERZBERG'S CONCLUSION THAT IS NOT A MOTIVATING FACTOR;

Although this is in line somewhat with Maslow's hierarchy of needs theory in the
money is at the lowest level of the hierarchy and could last only for a short period the
practical role of base in the motivation of the workforce is still being debated and to
some today some research have concluded the pay is a motivator not a hygiene.
 DOUGLAS MCGREGOR'S
THEORY X AND Y

Mcgregor's in his book “The Human Side of Enterprise” published in 1960 has
examined theories of individuals at work and has formulated two models which he calls
Theory X and Theory Y.

Theory X Theory Y

Management assumes that Management assumes that

employees are lazy, avoid work if employees may be ambitious and
they can, and dislikes work. That’s self-motivated and exercise self-
why close supervision and control it is a believe that they
comprehensive systems of enjoy their mental and physical
controls should be developed. worksheet is work to them is a
natural as play. They possess the
ability to create problem-solving,
but their talents are underused in
most organizations.
 MCCLELLAND'S LEARNED
NEEDS THEORY

He proposed that an individual's specific needs are acquired over time and are shaped
by one's life experiences. Sometimes referred to as three needs theory.

Achievement

The desire to obtain excellent results by setting high standards and striving
to accomplish them. It is a consistent concern with doing things better. They

1
prefer work that has moderate probability of success ideally a 50% chance.
They need regular feedback to monitor the progress of their achievements
and prefer either to work alone or with other high achievers.

Need for Achievement: Personal responsibility, Feedback, Moderate risk

Typical behaviors: High: Must win at any cost, must be on top, and receive credit.
Low: Fears failure avoids responsibility.
 Affiliation

2
An emotional drive towards being liked and accepted. Individuals with a high need
for affiliation desire to have agreeable and collaborative working relationships with
others and a harmonious social environment. They work well and customer service
and client interactions situations.

Power

Personal Power- want to direct others and this need often is perceived as
undesirable.

3
Institutional Power- also known as social power; wants to organize the efforts of
others to further the goals of the organization. Managers with a high need for
Institutional Power tend to be more effective than those with a high need for
personal power.

Need for Power (nPOW): Influence, Competitive

Typical behaviors: High: Demands blind loyalty and harmony, does not tolerate
disagreement.
Low: Remains aloof, maintains social distance.
 EQUITY THEORY

Equity theory was developed by John Stacey Adams in 1962, a workplace and
behavioral psychologist. This theory attempts to explain relationship satisfaction in
terms of the perception of fair distributions of resources within interpersonal
relationships. It is considered one of the justice theories.

The belief that people value fair treatment causes them to be motivated to keep
fairness within the relationships of their coworkers and the organization. (Mohamed
Msoroka 2012).

The theory is mainly built with three terms which are equity, inputs, and outputs/outcomes.

Inputs Equity

Outputs Inequity
 Contributions made by the employee for the
INPUTS organizations which include the work done by the
employee, his behavior as well as the skills and other
useful experiences he may contribute to the company.

Are positive and negative consequences of his/her

OUTPUTS relationship with another. Typical outcomes include any of

the following, job, security, esteem, salary, employee
benefit, recognition,

An individual will consider that he/ she is treated fairly if he

EQUITY
EQUITY perceives the ratio of his inputs to his outcomes is
equivalent to those around him/her

Inequity occurs when the input/outcome rates are out of

balance, such as when a person with a high level of
INEQUITY education or experience receives the same salary as a new,
less educated employee.
 THREE PRIMARY ASSUMPTIONS APPLIED TO
MOST BUSINESS APPLICATIONS OF THIS THEORY:

EQUITY NORM
Inequity occurs when the input/outcome rates are out of balance, such as when a person with a
high level of education or experience receives the same salary as a new, less educated employee.

SOCIAL COMPARISON
Employees determine what their equitable return should be after comparing their inputs and
outcomes with those of their coworkers.

COGNITIVE DISTORTION
Employees who perceive themselves as being Inequity occurs
in an when the
inequitable input/outcome
situation rates
will seek to are out
reduce the of
balance,
inequality either by distorting inputs and/or suchinas
outcomes when
their a person
own minds. with a high level of
education or experience receives the same salary as a new,
less educated employee.
 EXPECTANCY THEORY

Developed by Victor Vroom, a psychologist and professor of organization and

management at Yale University

It predicts that employees in an organization will be motivated when they

believe that:

Putting in more effort will yield better job performance

Better job performance will lead to an organizational reward, such as an increase in
salary or benefits; and
These predicted organizational rewards are valued by the employees in question.

Expectancy theory suggests that motivation depends on an individual's expectations

about their ability to perform tasks and receive desired rewards. It is concerned not
with identifying types of needs but with the thinking process that individuals use to
achieve rewards.
 EXPECTANCY THEORY

The theory suggests three variables within the expectancy theory:

Expectancy Probability

1 Based on the perceived effort-performance relationship. It is the expectancy that one's effort
will lead to the desired performance.

Instrumental Probability

2 Based on the perceived performance-reward relationship. Instrumentality is the belief that if one
does meet performance expectations, he or she will receive greater rewards.

Valence
3 Refers to the value the individual personally places on the rewards. This is a function of his
needs, goals, and values
 REINFORCEMENT THEORY

The process of shaping behavior by controlling the consequences of the behavior. A combination
of rewards and or punishments is used to reinforce desired behavior or extinguish unwanted
behavior.

TWO TYPES OF REINFORCEMENT

Positive Reinforcement

Results when the occurrence of valued

behavioral consequences has the effect of
strengthening the probability of being repeated.
 Negative Reinforcement

Results when undesirable behavioral

consequences are withheld, with the effect of
strengthening the probability of the behavior being
repeated.

Both positive and negative reinforcement are able to increase and accept
positive behavior. But negative reinforcement sometimes, is wrongly
considered as a punishment.
 BEHAVIORAL MODIFICATION OR
BEHAVIORAL CONTINGENCY MANAGEMENT
A behavioral modification program consists of four steps:

1 Specifying the desired behavior as objectively as possible.

2 Measuring the current incidence of desired behavior.

3 Providing behavior consequences that reinforce desired behavior.

4 Determining the effectiveness of the program by systematically

assessing behavioral change.
INCENTIVE PLANS

Providing incentives to employees is one tool that management can

use. Incentives are rewards given to employees for exceeding
performance targets.

Can be monetary or non-monetary rewards like gifts like gift

certificates, plaques of appreciation, overseas trips, or other forms
of incentives.

Effective incentive plans must be creative.

Incentives must cater to a variety of needs.

 KEY FUNDAMENTALS IN ANY
SUCCESSFUL INCENTIVE PLAN:

KEEP IT SIMPLE AND EASY TO MEASURE

1 Employees need to know what they can do to earn the incentive and
what the incentive will be.

REWARD ONLY FOR SURPASSING BUSINESS GOALS. INCENTIVE

2 PLANS SHOULD BE GIVEN ONLY FOR SUPERIOR PERFORMANCES
Employees need to know what they can do to earn the incentive and
what the incentive will be.
 KEY FUNDAMENTALS IN ANY
SUCCESSFUL INCENTIVE PLAN:

REWARD GREAT INDIVIDUAL EFFORT

3 While team effort should be given recognition and reward. Identify the
individual superstars and bestow upon them rewards and recognition.

ENCOURAGE TEAM RESULTS

4 Track down outstanding performance on unit, section
And departmental results it encourage and recognize team effort.
 Humor imitates communication, refreshes the
spirit, builds relationships, promotes attendance,
reduces stress, and provides perspective. In a
tense situation, more can reduce stress and defuse
anger.

Humor provides a non-threatening through which a

worker can communicate with others without
intensifying the emotional temperature of the
relationship.

It makes work more interesting and enjoyable.

FUN IN Humor is also valuable in training. Numerous

THE examples to increase the learner's attention and

retention of a concept. A person's sense of humor
is also related to creativity.
WORKPLACE
Humor is a great stress reliever. Work is often
associated with stress and it is one of the major
causes of illnesses, absenteeism, burnout, and
other employee problems.
 Managers must brush up with all the theories of motivation and understand what
motivates people. No one theory explains all human behavior. The most
appropriate depends on the person and the situation. A complete understanding of

SUMMARY
a wide range of motivation theories increases the probability of understanding
what motivates people.

Majors must create an environment in which employees will be motivated to

perform their tasks to the maximum.

Humor in the workplace remove stress. Everyone appreciates a good laugh and a
funny incident. Humor and levity can help remove tension in workplace
relationships.

Where performance cannot always be ascribed to lack of motivation. There may be

other attributable causes to poor performance such as the ability to competence of
an employee. Motivation is only one of them but motivation should absolutely be a
major concern of management.

Is a function of both the line and human resource departments but the latter should
influence management in creating an environment that motivates people to work
harder to accomplish the organization's objectives.