Chapter 4

Chapter Four
Motivation
Learning Objectives
 After learning this chapter, you should be able to:
 Describe the three key elements of motivation.
 Compare the early theories of motivation.
 Describe how the contemporary theories of motivation
complement one another.
 Contrast the elements of self-determination theory and goal-
setting theory.
 Understand the differences between reinforcement theory, and
expectancy theory.
 Identify the implications of motivation theories for Managers
4.1 What is Motivation?
 Motivation is state of mind, desire, energy or interest that translates

into action.
 Motivation is inner drive that directs a person’s behavior toward
goals.
 Motivation is the processes that account for an individual’s intensity,
direction and persistence of effort toward attaining a goal.
 The level of motivation varies both between individuals and within
individuals at different times.
Key Elements of motivation
 The three key elements of motivation are:
1. Intensity: concerned with how hard a person tries.
2. Direction: the orientation that benefits the

organization.
3. Persistence: a measure of how long a person can

maintain his/her effort.
4.2. Early Theories of Motivation
1. Hierarchy of Needs Theory
 Abraham Maslow's hierarchy of needs

Self-actualization Needs
(self-development, realization)
Esteem Needs
(self-esteem, recognition, status)
Social Needs
(sense of belonging, love)
Safety Needs
(Security, Protection)
Physiological Needs
(Hunger, Thirst, Shelter)
Assumptions on Hierarchy of Needs
 Once a need is satisfied, its role declines.
 Needs are complex, with multiple needs acting simultaneously.
 Lower level needs must be satisfied before higher level needs are
activated.
• Lower-Order Needs: Needs that are satisfied externally;
physiological and safety needs.
• Higher-Order Needs: Needs that are satisfied internally; social,
esteem, and self-actualization needs.
 N.B: Need hierarchy as a theory continues to receive little
empirical support.
2. McGregor’s: Theory X and Theory Y
 Under Theory X, the four assumptions held by

managers are:
 Employees inherently dislike work and, whenever
possible, will attempt to avoid it.
 Since employees dislike work, they must be
coerced, controlled, or threatened with punishment
to achieve goals.
 Employees will avoid responsibilities and seek
formal direction whenever possible.
 Most workers place security above all other factors
associated with work and will display little ambition.
Cont…
 Under Theory Y, the four assumptions held by
managers are:
 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

and is not necessarily the sole province of
those in management positions.
3. Two-Factor Theory
 Hygiene factors: such as

 company policy and administration
 supervision, and
 salary
 When these factors are adequate, people will
not be dissatisfied.
 Motivators: such as
 Promotional opportunities
 Opportunities for personal growth
 Recognition, responsibility, and

achievement.
 These are the characteristics that people find
motivating and intrinsically rewarding.

4.3 Contemporary Theories
of Motivation
1. Alderfer’s ERG Theory
 Existence Needs - concerned with providing our basic

material existence requirements
 Physiological and safety needs of Maslow’s hierarchy
 Relatedness Needs - the desire we have for maintaining

important interpersonal relationships
 Include social need and the external esteem component of
Maslow's classification
 Growth Needs - an intrinsic desire for personal development

 Include the internal esteem and self-actualization category of
Maslow's classification
2. McClelland's Theory of Needs
 The theory focuses on three needs:

achievement, power, and affiliation.
nPow
1. Need for Achievement - the desire to
do something better or more
efficiently, to solve problems, or to
master complex tasks.
 High need for achievement people:
 Prefer individual responsibilities
nAch nAff
 Prefer challenging goals
 Prefer performance feedback
Cont…
2. Need for Power - the desire to control others, to influence their

behavior, or to be responsible for others.
 High need for power people: nPow
 Seek influence over others
 Like attention
 Like recognition
nAch nAff
Cont…
3. Need for Affiliation - the desire to establish and maintain friendly

and warm relations with others. nPow
 High need for affiliation people:
 Are drawn to interpersonal relationships
 Seek opportunities for communication

 Class Activities
nAch nAff
 How high achievers can be motivated?
 Why high achievers cannot necessarily be good managers?

3. Goal-Setting Theory
 A motivational technique that uses specific, challenging and

acceptable goals and provides feedback to enhance performance.
 Factors influence the goals - performance relationship;
 Feedback
 Goal commitment
 Self-efficacy - ability to produce a desired amount of a desired
effect
 Task difficulty
Managerial Implications
Goal Setting Theory:
 Participate employee in goal settings

 Set specific and challenging goals
 Provide ongoing feedback so that individuals can
compare their performance with the goal.
4. Reinforcement Theory
 Reading assignment
5. Equity Theory
 Individuals compare their job inputs and outcomes with those of

others and then respond to eliminate any inequities.
 Are my outcomes (eg., rewards or pay) fair when compared to
others’ outcomes? Comparisons that employee can use;
 Self inside
 Self outside
 Other inside
 Other outside
Model of Equity Theory
Choices of Employees Perceived Inequity
A. Change their Inputs- (e.g., don't exert as much effort)

B. Change their Outcomes- (e.g., individuals paid on a piece-rate basis
can increase their pay by producing a higher quantity of units of
lower quality)
C. Distort Perceptions of Self- (e.g., "I used to think I worked at a
moderate pace but now I realize that I work a lot harder than
everyone else.")
D. Distort Perceptions of Others- (e.g., "Mike's job isn't as desirable as
I previously thought it was.")
E. Choose a different Referent- (e.g., "I may not make as much as my
brother-in- law, but I'm doing a lot better than my Dad did when he
was my age.")
F. Leave the Field- (e.g., " quit the job)
6. Expectancy Theory
 Expectancy theory says that an employee will be motivated to

exert a high level of effort when he or she believes that:
 when his effort will lead to a good performance appraisal;
 then good performance appraisal will lead to organizational
rewards such as a bonus, a salary increase, or a promotion; and
 that the rewards will satisfy the employee's personal goals.
Model of Expectancy Theory
Expectancy Theory focuses on three Relationships
 Effort - performance relationship – expectation on exerting a

given amount of effort will lead to performance.
 Performance - reward relationship - the degree to which the
individual believes that performing at a particular level will lead to
the attainment of a desired outcome.
 Rewards - personal goals relationship - the degree to which
organizational rewards satisfy an individual's personal goals or
needs and the attractiveness of those potential rewards for the
individual.
4.4 Implications of Motivation Theories for Managers
For motivating employees in organizations;

Recognize Individual Differences
 Recognize employees have different needs
 Spendthe time necessary to understand what’s important to each
employee
Use Goals and Feedback
 Set hard, specific goals
 Give feedback on how well they are faring in pursuit of those goals
Allow Employees to participate in Decisions that affect them
 Increases employee productivity, commitment to work goals,
motivation, and job satisfaction
Cont…
 Link Rewards to Performance

 Rewards should be contingent on performance
 Importantly, employees must perceive a clear link-age
 Check the system for Equity
 Rewards should be perceived as equating with the inputs they bring to
the job
 Experience, skills, abilities, effort, and other obvious inputs should
explain differences in performance and, hence, pay, job assignments,
and other obvious rewards.

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Chapter 4

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Chapter Four

 Motivation is state of mind, desire, energy or interest that translates

 The three key elements of motivation are:

1. Intensity: concerned with how hard a person tries.

2. Direction: the orientation that benefits the

3. Persistence: a measure of how long a person can

 Abraham Maslow's hierarchy of needs

 Under Theory X, the four assumptions held by

natural as rest or play.

control if they are committed to the

widely dispersed throughout the population

 Hygiene factors: such as

 When these factors are adequate, people will

 Opportunities for personal growth

 Recognition, responsibility, and

motivating and intrinsically rewarding.

 Existence Needs - concerned with providing our basic

 Relatedness Needs - the desire we have for maintaining

 Growth Needs - an intrinsic desire for personal development

 The theory focuses on three needs:

2. Need for Power - the desire to control others, to influence their

3. Need for Affiliation - the desire to establish and maintain friendly

 Are drawn to interpersonal relationships

 Seek opportunities for communication

 Why high achievers cannot necessarily be good managers?

 A motivational technique that uses specific, challenging and

Goal Setting Theory:

 Participate employee in goal settings

 Individuals compare their job inputs and outcomes with those of

A. Change their Inputs- (e.g., don't exert as much effort)

 Expectancy theory says that an employee will be motivated to

 Effort - performance relationship – expectation on exerting a

For motivating employees in organizations;

 Link Rewards to Performance

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