NAME: ___________________________
DATE: __________________________
Unit 3: Management Challenges
Activity 1: What is Motivation?
Motivation is the creation of stimuli, incentives, and working environments which
enable people to perform to the best of their ability in pursuit of organizational
success. Motivation is commonly viewed as the magic driver that enables
managers to get others to achieve their targets. (http://dictionary.bnet.com/)
Motivation can be divided into two categories: extrinsic and intrinsic.
Extrinsic motivation happens when you are motivated by external factors such as
tangible rewards e.g. money or pressures.
Intrinsic motivation comes from the pleasure you get from the task itself or from the
sense of satisfaction in working on a task.
In the 20th century, theories of motivation shifted away from motivation by discipline,
exemplified by Frederick Taylor's scientific management, toward motivation by creating
an appropriate corporate climate and addressing the needs of individual employees.
Theories of Motivation
(1) Maslow’s Hierarchy of Needs
In 1943, American psychologist, Abraham Maslow, wrote the article, “A Theory of
Human Motivation.” In the 1960s, Maslow became the leader of the emerging
humanistic school of psychology. Maslow is most famous for the pyramid which is used
to symbolize his Hierarchy of Needs Theory. The hierarchy element of his theory
states that the needs at the bottom of the pyramid must be satisfied before a person is
concerned with higher level needs.
Maslow’s Hierarchy of Needs
NAME: ___________________________
DATE: __________________________
Hierarchy
need
General examples
Applications in the workplace
Selfactualization
creativity, acceptance of
facts, lack of prejudice,
spontaneous, and morality
• creative and challenging work
• participation in decision making
• job flexibility and autonomy
Esteem
recognition from others,
prestige, status, and selfesteem
• responsibility
• praise/recognition from boss
• promotion to job with more
responsibility
Belonging
acceptance, love, and being
part of a group
• friendly co-workers
• interaction with customers
• pleasant supervisor
Safety
physical security, economic
security, and freedom from
threats
• safe working conditions
• job security
• base salary and benefits
Physiological
water, food, sleep, warmth,
shelter, and exercise
• rest, refreshment breaks
• physical comfort on the job
• reasonable work hours
Adapted from Figure 14.1, page 362, Management Fundamentals, John R. Schermerhorn and Barry Wright, John Wiley and Sons
Canada, Ltd, 2007.
(2) Alderfer’s ERG Theory
In 1969, Clayton Alderfer introduced a theory called the ERG Theory (Existence,
Relatedness, and Growth) which aligned to Maslow's Hierarchy of Needs more closely
with research. He condensed Maslow’s five needs into three categories.
1. Existence which refers to physiological and safety needs.
2. Relatedness which involves social and external esteem needs, i.e.,
satisfying personal relationships.
3. Growth which relates self-actualization and internal esteem needs.
Like the hierarchy of needs, the ERG Theory also presents a model of progressive
needs, e.g., as existence needs are satisfied, relatedness needs become more
important. However, unlike Maslow’s theory, the hierarchical aspect of the ERG Theory
is not rigid.This flexibility allows the ERG Theory to account for a wider range of
observed behaviors, e.g., it can explain the “starving artist” who may place growth
needs above existence ones.
The ERG Theory also includes a frustration-regression process whereby those who are
unable to satisfy a higher need become frustrated and regress to the next lower needs
NAME: ___________________________
DATE: __________________________
level. For example, if existence and relatedness needs have been satisfied, but growth
need fulfillment is blocked, the individual will become frustrated and relatedness needs
will again emerge as the dominant source of motivation.
According to ERG, managers must recognize that an employee has multiple needs to
satisfy simultaneously. If growth opportunities are not provided to employees, they may
regress to relatedness needs. If the manager is able to recognize this situation, then
procedures can be set in place to concentrate on relatedness needs until the employee
is able to pursue growth needs again.
(3) McClelland’s Acquired Needs Theory
In the late 1940s, David McClelland’s research identified three needs that he believed
important to motivation. His theory involves these three needs; and it states that these
needs are acquired or learned during an individual's lifetime.
1. Need for Achievement - This need is the desire to do things well and master
tasks.
2. Need for Affiliation - This need is the desire to establish and maintain good
relationships.
3. Need for Power - This need is the desire to control or influence other
people.
What lessons can managers learn from the Acquired Needs
Theory? Managers need to appreciate the diversity in how
individuals are motivated. By recognizing the strength of each need
in the people they manage, they can attempt to create work
assignments that are responsive to people’s needs. Managers
must understand that workers are often motivated by intrinsic
factors, and therefore allowing creativity and innovation on the job
will motivate many workers. When intrinsic needs are not met, it
can cause workers to revert to extrinsic needs, i.e., pay, working
conditions, and vacation.
(4) Herzberg’s Two-Factor Theory
Herzberg and the Two-Factor Theory
In 1959, Frederick Herzberg concluded that job satisfaction and job dissatisfaction are
independent factors. His research found that certain factors in the workplace cause job
satisfaction, while a separate set of factors cause dissatisfaction.
Herzberg’s two factors are:
NAME: ___________________________
DATE: __________________________
(1) Motivators/satisfiers which are sources of job satisfaction such as recognition,
responsibility, meaningful and interesting work, opportunities for advancement, and
personal growth.
(2) Hygiene factors which are sources of job dissatisfaction such as working
conditions, relationships with co-workers, policies, supervisor behaviour, job security,
wages, and benefits.
Ensuring that the hygiene factors in a job are all positive is an important first step, but it
will not result in people feeling fulfilled or satisfied. In order to experience job
satisfaction, they need to experience the motivator factors.
Content Theories of Motivation
The four theories described above are “content” theories of motivation. Content theories
use individual needs to explain people’s attitudes and behaviours at work. These
theories support the idea that managers must understand the needs of their workers
and establish conditions that allow workers to satisfy important needs through their
work.
Locke's Goal-setting Theory of Motivation
Dr. Edwin A. Locke began to examine Goal-Setting Theory in the mid-1960s and
continued researching this idea for thirty years. Locke’s Goal-Setting Theory is derived
from Aristotle’s idea that purpose can cause action. Locke researched the impact that
goals can have on individual performance.
One significant conclusion of goal-setting research is that goals must be challenging
and specific if they are going to be effective and increase performance. Performance
also depends on goal commitment, i.e., the extent to which a person believes in the
goal and is interested in reaching it; and goal acceptance, i.e., the extent to which a
person adopts a goal as his/her own. It is best to involve workers in the development of
goals. However, workers will respond positively to goals that they didn’t help set if their
manager is trusted and adequately supports their efforts to achieve the goals.
How do goals affect performance?
(1) Goals can lead to greater effort as the individual works harder to meet the goals.
(2) Goals can narrow attention and direct efforts to goal-relevant activities.
(3) Goals can increase persistence and make people more likely to work through
setbacks.
Like all theories, the Goal-Setting Theory has its limitations. The goals of a manager
and the workers must be aligned with the goals of the organization as a whole. For
complex tasks, goal-setting could actually impair performance if the individual becomes
preoccupied with meeting the goals, rather than performing tasks.
NAME: ___________________________
DATE: __________________________
Check Your Understanding
1. Which of the following is the correct order of needs in Maslow’s Hierarchy of
Needs, starting from the bottom of the pyramid?
a.
b.
c.
d.
Self-actualization, Esteem, Belonging, Safety, and Physiological
Esteem, Belonging, Safety, Physiological, and Self-actualization
Safety, Esteem, Belonging, Self-actualization, and Physiological
Physiological, Safety, Belonging, Esteem, and Self-actualization
2. ERG Theory recognizes that an individual has multiple needs to satisfy
simultaneously. Unlike Maslow’s theory, the hierarchical aspect of the ERG
theory is not rigid.
a. True
b. False
3. The needs for Achievement, Affiliation, and Power are the key elements of
_________________.
a. Maslow’s Hierarchy of Needs
b. Alderfer’s ERG Theory
c. McClelland’s Acquired Needs Theory
d. Goal-Setting Theory