ITE 3652 Organizational Behavior

Lesson 6 – Employee Motivation

1.0 What is motivation?

Employee motivation is the level of energy, commitment, and creativity that a company's
workers bring to their jobs. Employee motivation describes how committed an employee is to
his job, how engaged he feels with the company's goals and how empowered he feels in his
daily work. The benefits of employee motivation go beyond just keeping employees happy at
work and increasing employee morale.

Motivation has the following functions and characteristics:

 Initiation: it drives action. What does someone do?

 Intensity: it activates action. How hard does someone work?
 Perseverance: it sustains action. How long does someone keep working?
 Meaningful: gives meaning to action. Why does someone do something?

There are several reasons why employee motivation is important. Mainly because it allows
management to meet the company’s goals. Without a motivated workplace, companies could
be placed in a very risky position. Motivated employees can lead to increased productivity
and allow an organisation to achieve higher levels of output. Imagine having an employee
who is not motivated at work. They will probably use the time at their desk surfing the
internet for personal pleasure or even looking for another job. This is a waste of time and
resources. Motivation has to be appreciate for many reasons.

1. Effort - must be defined in relation to its appropriateness to the objectives being

pursued.

2. Persistence - relates to the willingness of the individual to stay with a task until it is
complete

3. Direction - measured in terms of how persistent effort is applied in relation to the

goals being pursued

4. Goals - individual goals and organizational goals (must be compatible)

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2.0 Different Types Motivation

There are two types of motivation,

 Intrinsic motivation,

 Extrinsic motivation.

Extrinsic motivations are factors external that causes an employee to act toward fulfillment of
a work task or goal. They are usually punishments or rewards. A punishment motivates an
employee to act in order to avoid the punishment, while rewards motivate an employee to act
in order to receive the reward.

Intrinsic motivation means that people want to make an effort for something because they are
stimulated from inside, for example by being given responsibilities. This form of motivation
is entirely dependent on the nature of the activity.

Intrinsic and extrinsic motivation are related in the sense that intrinsic motivation can be
manipulated by extrinsic influences. Factors that are external to the individual, such as
remuneration, can have a negative effect on intrinsic motivation. Linking bonuses to targets
can lead to employees who initially worked enthusiastically to meet targets, ultimately only
focusing on the target that offers the biggest bonus.

3.0 Increasing Motivation in the Workplace

Managers can follow some basic strategies to increase the motivation level in the office and
get their employees more committed to the company's goals. To make employees feel capable
and appreciated, managers should give employees clear and specific goals to achieve and
recognize their hard work in meeting these goals. Following shows five simple steps to
motivate organisional groups

1. Figure out what makes them tick (individual needs)

2. Give clear expectations
3. Consistent reinforcement and consequences
4. Healthy competition
5. Change out team members

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To keep the motivation level high even in challenging situations, managers should maintain a
positive attitude, keep employees informed, celebrate even small successes and help
employees see the purpose of their work.

4.0 Motivation Theories

There are many theories explains motivation as a concept. Out of those many theories some
theories are applicable even for today’s business world.

4.1 Hierarchy of Needs Theory (By Abraham Maslow, 1954)

Maslow's hierarchy of needs is a motivational theory in psychology comprising a five-tier

model of human needs, often depicted as hierarchical levels within a pyramid. Needs lower
down in the hierarchy must be satisfied before individuals can attend to needs higher up.
From the bottom of the hierarchy upwards, the needs are: physiological, safety, love and
belonging, esteem, and self-actualization.

Figure 1: Hierarchy of Needs Theory

1. Physiological needs- There are common and basic to any human being. These are the
basic needs of air, water, food, clothing and shelter. In other words, physiological needs
are the needs for basic amenities of life.
2. Safety needs- Safety needs include physical, environmental and emotional safety and
protection. For instance- Job security, financial security, protection from animals, family
security, health security, etc.

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3. Social needs- Social needs include the need for love, affection, care, belongingness, and
friendship.
4. Esteem needs- Esteem needs are of two types: internal esteem needs (self- respect,
confidence, competence, achievement and freedom) and external esteem needs
(recognition, power, status, attention and admiration).
5. Self-actualization need- This include the urge to become what you are capable of
becoming / what you have the potential to become. It includes the need for growth and
self-contentment. It also includes desire for gaining more knowledge, social- service,
creativity and being aesthetic. The self- actualization needs are never fully satiable. As an
individual grows psychologically, opportunities keep cropping up to continue growing.

There are four main summarized points about Maslows need theory

a) human beings are motivated by a hierarchy of needs.

b) needs are organized in a hierarchy of prepotency in which more basic needs must be more
or less met (rather than all or none) prior to higher needs.
c) the order of needs is not rigid but instead may be flexible based on external circumstances
or individual differences.
d) most behavior is multi-motivated, that is, simultaneously determined by more than one
basic need.

4.2. Theory X and Theory Y (By. Douglas McGregor, 1950)

Theory X and Theory Y are theories of human work motivation and management. They were
created by Douglas McGregor while he was working at the MIT Sloan School of
Management in the 1950s. Douglas McGregor developed two contrasting theories that
explained how managers' beliefs about what motivates their people can affect their
management style. He labelled these Theory X and Theory Y. These theories continue to be
important even today. Theory X and Theory Y suggesting two aspects of human behaviour at
work, or in other words, two different views of individuals (employees): one of which is
negative, called as Theory X and the other is positive, so called as Theory Y.

Theory X assumptions are negative;

 Employees inherently dislike work and, whenever possible, will attempt to avoid it.

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  Since’ employees dislike work, they must be coerced, controlled, or threatened with
punishment.
 Employees will avoid responsibilities and seek formal direction whenever possible.
 Most workers place security above all other factors and will display little ambition.

Managers who accept theory-X assumptions tend to structure, control and closely supervise
their employees.

Theory Y assumptions are positive;

 Employees can view work as being as natural as rest or play.

 People will exercise self-direction and self-control if they are committed to the
objectives.
 The average person can learn to accept, even seek, responsibility.
 The ability to make innovative decisions is widely dispersed throughout the
population.

Managers who accept theory-Y assumptions about the nature of man do not attempt to
structure, control or closely supervise the employees.

Theory X assumes that lower-order needs to dominate individuals. Theory Y assumes that
higher-order needs to dominate individuals. McGregor himself held to the belief that Theory
Y assumptions were more valid than Theory X.

4.3. Two-Factor Theory (By: Frederick Herzberg, 1984)

Herzberg’s Motivation Theory model, or Two Factor Theory, argues that there are two
factors that an organization can adjust to influence motivation in the workplace. Herznerg
conducted his research by asking a group of people about their good and bad experiences at
work. He was surprised that the group answered questions about their good experiences very
differently from the ones about their bad experiences.

These factors are:

 Motivators: Which can encourage employees to work harder.

 Hygiene factors: These won’t encourage employees to work harder but they will
cause them to become unmotivated if they are not present.
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4.4 ERG Theory (By: Clayton P. Alderfer, 1969)

Clayton P. Alderfer's ERG theory from 1969 condenses Maslow's five human needs into
three categories: Existence, Relatedness and Growth.

 Existence needs- These include need for basic material necessities. In short, it
includes an individual’s physiological and physical safety needs.
 Relatedness needs- These include the aspiration individual’s have for maintaining
significant interpersonal relationships (be it with family, peers or superiors), getting
public fame and recognition. Maslow’s social needs and external component of
esteem needs fall under this class of need.
 Growth needs- These include need for self-development and personal growth and
advancement. Maslow’s self-actualization needs and intrinsic component of esteem
needs fall under this category of needs

4.5 Goal-Setting Theory (By : Edwin Locke, 1960)

In 1960’s, Edwin Locke put forward the Goal-setting theory of motivation. This theory states
that goal setting is essentially linked to task performance. Goal setting theory of motivation
states that specific and challenging goals along with appropriate feedback contribute to higher
and better task performance. Goals indicate and give direction to an employee about what
needs to be done and how much efforts are required to be put in. In goal setting theory, goals
must be set based on 5 principles. To motivate, goals must have these. Five principles of
goal setting theory are;

1. Clarity. A clear, measurable goal is more achievable than one that is poorly defined.
In other words, be specific!
2. Challenge. The goal must have a decent level of difficulty in order to motivate you to
strive toward the goal.
3. Commitment. Put deliberate effort into meeting this goal. Share your goal with
someone else in order to increase your accountability to meet that goal.
4. Feedback. Set up a method to receive information on your progress toward a goal.
5. Task complexity. If a goal is especially complex, make sure you give yourself
enough time to overcome the learning curve involved in completing the task.
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Lesson Summary

This lesson explained the theories of motivation. Basically the main objective of the lesson is
to provide a knowledge about the motivation concepts and theories which is required in the
study of OB. Here the learners had an opportunity to understand the role of motivation in
determining employee performance. Also it was classify the basic needs of employees. The
lesson described how fairness perceptions are determined and consequences of these
perceptions. Also it has provided the understand the importance of rewards and punishments.
There were five important theories were explained in the lesson and these theories are able to
apply in the organizational context.

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