Intrinsic and Extrinsic
Needs and Rewards
• Intrinsic - Higher needs, Internal

Accomplishment, competence, fulfillment, self-determination received from the process of action
• Extrinsic - Lower needs, External
–Material comfort, safety, security given by another person

Content vs. Process Motivation
Theories

Content theories
 explain why people have different needs at different times

Process theories
 describe the processes through which needs are translated into behavior. Process theories try to explain why and how people are motivated.

Basic Model of Motivation

Needs Hierarchy
Theory
Self-
Actualization
Esteem
Belongingness
Safety
Physiological

Maslow arranged five needs in a hierarchy

Satisfaction-progression process

People who experience selfactualization desire more rather than less of this need

Maslow’s Hierarchy of Needs

Acquired Needs Theory by David McClelland


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Need for Achievement Desire to accomplish something difficult, attain high standards of success, master complex tasks, surpass others
Need for Affiliation Desire to form close personal relationships and friendships, avoid conflict
Need for Power Desire to influence or control others, be responsible and have authority over others

Frederick Herzberg Two-Factor Theory
Highly
Satisfied Motivators
Achievement
Recognition
Responsibility
Work itself
Personal growth
Motivators influence level of satisfaction
Neither
Hygiene
Factors
Work Conditions
Pay/security
Company Policy
Supervisors
Interpersonal Rel.
Hygiene factors influence level of dissatisfaction
Highly
Dissatisfied

Implications of Content Theories

Balance competition/cooperation by rewarding individual achievement and teamwork

Offer employees a choice of rewards
 people have different needs at different times

Support the drive to learn by providing new learning opportunities

Don’t rely too much on financial rewards

Key Elements of
E -- P expectancy
Effort ----- Performance
Will putting effort into the task lead to the desired performance?
P -- O expectancy
Performance ----- Outcomes
Will high performance lead to the desired outcome?
Valance - value of outcomes
(Pay, recognition, other rewards)
Are the available outcomes highly valued?




Workers are motivated to receive positive outcomes and avoid negative ones
Workers are rational, careful processors of information
Workers can make choices about how they behave, act, and how much effort they exert


Increasing the E-to-P expectancy
 training, selection, resources, clarify roles, provide coaching and feedback

Increasing the P-to-O expectancy

Measure performance accurately, explain how rewards are based on past performance

Increasing outcome valences

Use valued rewards, individualize rewards, minimize countervalent outcomes



A State of psychological comfort
Exists when an individual’s input to outcome ratio is equal to the ratio of the comparison other


Outcome/input ratio

 inputs -- what employee contributes (e.g. skill) outcomes -- what employees receive (e.g. pay)

Comparison other

 person/people we compare ratio with not easily identifiable

Equity evaluation
 compare outcome/input ratio with the comparison other

Overreward vs Underreward
Inequity
Comparison
Other
You
Outcomes
Overreward
Inequity
Outcomes
Inputs Inputs
Underreward
Inequity
Outcomes
Inputs
Outcomes
Inputs







Change inputs
Change outcomes
Change perceptions
Leave the field
Act on the comparison other
Change the comparison other


Benevolents

Tolerant of being underrewarded

Equity Sensitives

Want ratio to be equal to the comparison other

Entitleds

Prefer receiving proportionately more than others





Because you can choose where you want to go
You know exactly what to do
Can provide short and long term vision
Fosters planning and resource evaluation

Specific
Relevant
Challenging
Commitment
Participation
Challenging
Task
Effort
Task
Performance

High
Effect of Goal Difficulty on
Performance
Area of
Optimal
Goal
Difficulty
Low Moderate Challenging
Goal Difficulty
Impossible







Greater productivity and sales
Improved performance
Improved self-confidence
Increases motivation to achieve
Increases pride and satisfaction
Helps reduce negative attitudes toward work/increases morale






Suffer less from stress and anxiety
Concentrate better
Show more self-confidence
Perform better
Are more satisfied with their jobs


We “operate” on the environment

Alter behavior to maximize positive and minimize adverse consequences. Behavior is a function of its consequences

Operant means voluntary or learned behavior as opposed to reflexive or unlearned behavior

Law of effect

Likelihood that an operant behavior will be repeated depends on its consequences

Antecedents
What happens before behavior
Behavior
What person says or does
Consequences
What happens
After behavior
Example
Attendance bonus system is announced
Employee attends scheduled work
Employee receives attendance bonus

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

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Reinforcement Perspective on Motivation
Positive Reinforcement – increase strength and frequency of a behavior by providing something pleasing
Negative Reinforcement – increase strength and frequency of a behavior by the removal or avoidance of a consequence (stop criticizing and good performance results)
Punishment – decrease strength and frequency of a behavior by giving the employee something displeasing or taking away something pleasing
Extinction – decrease strength and frequency of a behavior by providing no consequence

Consequence is Introduced
No
Consequence
Consequence is Removed
Behavior
Increases/
Maintained
Positive reinforcement
Negative reinforcement
Behavior
Decreases
Punishment Extinction Punishment


Can’t reinforce nonobservable behavior

Reinforcer tends to wear off

Variable ratio schedule is a form of gambling

Ethical concerns about perceived manipulation

Organizationwide
Motivational Programs


Employee ownership Psychological, stock
Pay for knowledge Skills possessed

Gainsharing Teamwork

Pay for performance Results

Job enrichment High level, more tasks