Managing People in
Organisations
Week 7
Motivation – Process Theories
Learning Objectives
Learning Objectives
Students will be able to:
• Describe the major process theories of motivation
• Explain the relationship between motivation and
employee performance
• Discuss the dilemmas and difficulties facing
managers in applying motivation theory to a work
setting
• Evaluate the usefulness of McGregor's Theory X and
Theory Y & Ouchi’s Theory Z
September 2005
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Process Theories of
Motivation
A process theory definition of
motivation:
– “To motivate a worker involves that person
in decision making through which the
individual desires outcomes, and sets in
motion the behaviours appropriate to
acquiring them.”
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Process Theories of
Motivation
Content Theories
• Deal with job
content
• Asserts people are
motivated by needs
• Treat everyone alike
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Process Theories
• Deal with the
process of
motivation
• Asserts that people
are motivated by
expectations
• Every individual is
different
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Process theories
• Expectancy theory
Victor Vroom
Lyman Porter & Edward Lawler
• Equity theory
Stacy Adams
• Goal-setting theory
Edwin Locke
• Additional Perspectives on Motivation
– McGregor’s Theory X and Theory Y
– Ouchi’s Theory Z
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Vroom’s expectancy
model
• Vroom (1964) was the first person to
link expectancy theory to work
motivation
• This model implies that individual
behaviour will be moulded by what is
perceived as the available rewards on
offer and their importance to the
individual
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Requirement: more
money
Expectation
1. If I work hard I’ll get
more money
2. If I work hard all my
boss will do is give
me a big smile and
pat on the back
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Predicted outcome
1. I’ll work harder
2. It’s unlikely I’ll work
harder (unless I
place a high value
on smiles)
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Vroom’s expectancy
model
• Valence – importance (value) of the
outcome for the individual
• Instrumentality – belief that good
performance will lead to the
achievement of valued rewards
• Expectancy – the strength of a person’s
expectation that behaving in a certain
way will produce the desired outcome
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Expectancy equation
Strength of motivation =
Expectancy x Instrumentality x Valence
F=ExIxV
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Porter and Lawler
• Developed Vroom’s into a theory of
work motivation
• Not just motivation that produces
performance – there are other variables
• Performance affects satisfaction
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Expectancy theory v
content theory
1.
2.
3.
4.
Expectancy theory states that behaviour results from a
conscious decision-making process based on expectations,
measures as subjective probabilities, that the individual had
about the results of different behaviours leading to
performance and to rewards
Expectancy theory helps to explain individual differences in
motivation and behaviour, unlike Maslow’s universal content
theory of motivation
Expectancy theory provides a basis for measuring the
strength of force of the individual’s motivation to behave in
particular ways
Expectancy theory assumes that behaviour is rational, and
that we are conscious of our motives. As we take into
account the probable outcomes, expectancy theory attempts
to predict individual behaviour
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Criticisms
•
•
•
•
Complex
Based on questionable assumptions
Some items overlooked
Statistical methods of testing theory of
dubious validity
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Practical managerial
consequences
• Must support link between effort and
performance
• Link must be clear and visible
• Employees will concentrate on
behaviours for which they are rewarded
• Money in only one motivator
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Practical managerial
consequences (cont'd)
• Performance standards must be clear
and unambiguous
• Rewards must be valued
• Consider a ‘flexi’ reward scheme
• Value of rewards changes over time
• Consistency important
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Adam’s equity theory
Comparison of own and
others’ inputs and outputs
Perceived inequity with
others
Perceived equity with
others
Internal tension created
Balance (equity) restored through:
Maintenance of current
motivation level and work
effort
•Changes to inputs
•Changes to outputs
•Altering perception of equity
•Leaving situation
•Influencing others
•Changing comparators
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Adam’s equity theory
• Equality or fairness at work
• Two forms of equity
– Distributive equity
– Procedural equity
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Inequity occurs when:
Persons Outcomes
Persons Inputs
<
Others Outcomes
Other’s Inputs
Persons Outcomes
Persons Inputs
>
Others Outcomes
Other’s Inputs
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Adam’s equity theory
Perceived Inputs
• Education
• Social status
• Organisational
position
• Qualifications
• How hard the
person works
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Outcomes
• Pay
• Status
• Promotion
• Satisfaction
• Job security
• Fringe benefits
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strategies to resolve
inequity
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Scenario:
• you work in the local pub on minimum
wage and find that another barperson
(Joe Bloggs) earns £1.50 per hour
more than you for the same work and
the same hours.
• Using the strategies above, what can
you do?
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Application of strategy
Strategy
1. Alter your outcomes
2.
3.
6.
Adjust your inputs
Alter the comparison
person’s outcomes
Alter the comparison
person’s inputs
Compare with someone
else
Rationalise the inequity
7.
Leave
4.
5.
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Example
1. Persuade manager to
increase your pay
2. Don’t work as hard as Joe
3. Persuade manager to cut
Joe’s pay
4. Leave the difficult tasks to
Joe
5. Z is paid the same as I am
6. Joe has worked here much
longer
7. Quit
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Problems with theory
• Difficult to weight variables as they are
dependent upon individual perception
• We have individual tolerance levels
• We behave differently to a perceive
inequality
• The explanation for the inequality will
moderate your response
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Implications for
management practice
• Management must recognise that
perceptions of inequality can generate
tension.
• This can occur even where actual
inequality is limited
• Provision of accurate information about
rewards is very important
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Locke’s goal theory
Goal
deficiency
Desires and
wants
Goals
Behavioural
response
Outcome
Degree of
commitment
Feedback
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Goal setting theory
• Improved performance requires:
–
–
–
–
Challenging goals
Specific goals
Participation in goal-setting
Feedback
• In modern performance appraisal these
ideas have been refined into the so called
SMART objectives (Specific, Measurable,
Attainable, Realistic, Time-bounded)
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Issues
• What degree of subordinate involvement is
required in setting goals to achieve optimal
results?
• Need to understand the process through
which the behavioural impetus of the
employee is maintained once the goals have
been agreed
• Issues such as individual difference,
personality, previous experience, etc. are
among the factors that could be assumed to
have an effect on the validity of the goalsetting model
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Limitations of the theory
• Some jobs are not amenable to goal
setting
• Goals are subject to frequent change
due to the turbulent operating business
environment
• Goal setting represents an individual
level process, but most tasks within an
organization require groups of people to
co-operate in order to achieve them
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Additional perspectives
on motivation
• McGregor’s Theory X and Theory Y
• Ouchi’s Theory Z
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McGregor’s Theory X
and Theory Y
The average person inherently
dislikes work
People must be directed to work
and self-control
People wish to avoid responsibility
1 2
3
4
5
Work is as natural as rest to people
1 2
3
4
5
People will exercise self-discretion
1 2
3
4
5
People enjoy real responsibility
People feel that achievement at
work is irrelevant
Most people are dull and
uncreative
Money is the only real reason for
working
People lack the desire to improve
their quality of life
Having an objective is a form of
imprisonment
1 2
3
4
5
1 2
3
4
5
1 2
3
4
5
Achievement is highly valued by
people
Most people have imagination &
creativity
Money is only one benefit from work
1 2
3
4
5
1 2
3
4
5
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People have needs to improve their
quality of life
Objectives are welcomed as an aid to
effectiveness
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Theory X
• The average worker is inherently lazy
• The worker lacks ambition, dislikes
responsibility and must be led
• The worker is resistant to change and
is indifferent to organisational needs
• Coercion and close control are required
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Theory Y
• To the average person, work is as natural as
rest or play
• Motivation, potential for development,
imagination and ingenuity are present in all
people given proper conditions
• Coercion and close control are not required
• Given proper conditions people will accept
and seek out responsibility
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Ouchi’s Theory Z
American organizations
• short-term employment
• explicit control
processes
• individual decision
making
• individual responsibility
• segmented concern
• quick promotion
• specialised careers.
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Japanese organizations
• lifetime employment
• implicit control
processes
• collective decision
making
• collective responsibility
• holistic concern
• slow promotion
• generalist careers
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