Maslow’s Hierarchy of Needs Theory
•
•
4. Esteem Needs
Business Application: Recognize achievements to
make employees feel appreciated and valued.
Offer job titles that convey the importance of the
position. Making everyone feel valued and
important.
The psychologist Abraham Maslow developed a
theory that suggests we, humans, are motivated to
satisfy five basic needs.
These needs are arranged in a hierarchy. Maslow
suggests that we seek first to satisfy the lowest level
of needs. Once this is done, we seek to satisfy each
higher level of need until we have satisfied all five
needs.
Example: Southwest gives employees “permission”
to go the extra mile to make customers happy,
empowering them to do whatever is necessary to
meet that vision.
The Hierarchy of Needs & Business Application
There are opportunities to motivate employees through the
following:
5. Self-Actualization Needs
Business Application: Achievement issues such as
workplace autonomy, challenging work, and
subject matter expert status on the job. Provide
employees a challenge and the opportunity to
reach their full career potential.
1. Physiological Needs
Business Application: Safe work environment. Proper
lighting. Clean facilities. Airflow. Heat. The correct tools
to do the best job. Provide lunch breaks, rest breaks, &
Basic issues of survival such as salary and stable
employment.
Example: Google has bicycles and electric cars to get
staff to meetings, gaming centers, organic gardens,
and eco-friendly furnishings. The company wants to
make its employees' lives more comfortable, and they
are continually searching for ways to improve the
health, well-being, and morale of its employees.
2. Safety & Security Needs
Business Application: Treat coworkers with respect.
Allow them the freedom to take risks and not be harshly
criticized or humiliated. Provide a safe working
environment, retirement benefits, and job security.
Example: The fact that the CEO of Facebook, is meeting
with entry-level employees says a lot about the way
Zuckerberg does business. Rather than slotting people
into roles based on age and experience, Facebook
values everyone's ideas in clear and distinct ways.
3. Social (Belongingness) Needs
Business Application: Give everyone the opportunity to
be heard. Create a sense of community via teambased projects and social events. They have a clear
understanding of a value-centered mission.
Example: HBO’s Corporate Social Responsibility team
unites HBO employees, talent and non-profit partners to
make a difference on social issues, connected to their
industry, and their communities. Employees are inspired
from their top.
Example: Google offers its employees one of the
most innovative work environments. The company
cares so much about innovation that it has set forth
nine principles of innovation. Google employees to
spend their time pursuing innovative ideas.
Example of applying the Maslow’s Theory of Needs.
Meeting an employee’s lower-level needs is important to
motivation, they will be very concerned with physiological
needs such as adequate wages and stable income and
security needs such as benefits and a safe work
environment.
Establishing a model of “participatory management,”
where employees are involved in the decision-making
process, where their input is sought and valued (Social
Belongingness Needs). When employees feel like they are as
appreciated and recognize as what they do, it will result in
the true dedication that all Managers need to maximize for
their company’s performance (Esteem Needs).
Offering employees who desire in growth and individual
development drives performance and results. (SelfActualization)
Why should managers care about human needs?
•
•
If you are a manager or leader of people, Maslow’s
theory will help you understand and identify your
employees’ needs and to think about what you can
do to meet them.
It also provides you with a framework to motivate
them toward positive discretionary behavior.
Reinforcement Theory
•
•
Proposed by B.F. Skinner, it suggests that behavior is
driven by its consequences. As such, positive
behaviors should be rewarded positively. Negative
behaviors should not be rewarded or should be
punished.
It is based on “law of effect” the idea that behaviors
are selected by their consequences, i.e.,
individual’s behavior with positive consequences
tends to be repeated, but individual’s behavior with
negative consequences tends not to be repeated.
How can managers use reinforcement theory to motivate
employees?


Reinforcement Tools
For managers, the reinforcement theory can be an
effective tool to give positive reinforcement to their star
performers and negative reinforcement to poor
performers.
Managers using reinforcement theory to motivate staff
should explain to employees which behaviors will result
in positive feedback. Also, it may come in hand to
punish bad behavior and extinguish unwanted
behavior. Since it is difficult to find a motivation system
that works for all employees this theory due to its focus
on employee behavior and performance is good for
managing a diverse group to achieve the desired
results.
1.
Positive Reinforcement

Implies giving a positive response when an Employee
shows positive and required behavior.
1.
Continuous Reinforcement – This happens every time an
employee demonstrates the desired behavior.
Example: Immediately praising an employee for coming
early for the job. This will increase the probability of
outstanding behavior occurring again.
2.
Intermittent Reinforcement – Since a manager cannot
always be available to offer reinforcement for desired
behaviors this type of schedule is what is used in many
organizations. It can be done in three ways.
2.
Negative Reinforcement

Implies that rewarding an employee by removing
negative/undesirable consequences.
Example: Employees who get satisfaction rate are
exempted from overtime work. (Employees who doesn’t
get the satisfactory rate, tends to work harder to get the
satisfactory rate).
3.
Punishment

Implies that applying undesirable consequence for
showing undesirable behavior.
Example: For instance, suspending an employee for
breaking the organizational rules. (Discourages a behavior
by removing an aversive stimulus.)
4.
Extinction

Implies the absence of reinforcements. In other words,
extinction implies lowering the probability of an
undesired behavior by removing reward for that kind of
behavior.
Example: An employee no longer receives praise and
admiration for his good work, he may feel that his behavior
is generating no fruitful outcome. Extinction may
unintentionally lower desirable behavior.
Operant conditioning is a type of associative learning with
the following components:
 Behavior which is reinforced tends to be repeated
(i.e., strengthened)

Behavior which is not reinforced tends to die out-or be
extinguished (i.e., Weakened).
Schedules of Reinforcement
a) Fixed Interval Schedule – Here reinforcement is
done in between fixed time periods like with a
biweekly paycheck.
b) Variable Interval Schedule– Reinforcement is
given at different times; no schedule is
followed. For example, if your boss comes to
work and finds you are there and proceeds to
praise you for coming in early that wasn’t
planned.
c) Variable Ratio Schedule – This is reinforcement
given after several set out desired behaviors are
achieved. A good way to achieve this is by
giving a bonus as a positive reinforcement
when all the desired behaviors are achieved.
Companies encourage productivity through positive and
negative reinforcers. They empower employees with
additional responsibility if they meet their business targets
(positive reinforcement) or allow those with highperformance levels to work from home with flexible work
hours (negative reinforcement).
Managers can create an environment where staff
cooperation is rewarded (Positive Reinforcement). This will
encourage interpersonal effectiveness.
Cognitive Evaluation Theory


Examined by Edward Deci and Richard Ryan,
suggest there are essentially two motivation systems
in humans: intrinsic and extrinsic.
Focused on competence and autonomy,
examining how motivation is affected by external
forces while investigating the social and
environmental
factors
influencing
intrinsic
motivation.
CET states that rewards are likely to serve two main
functions:
1.
Competence is the need to experience mastery in
skills and techniques and to produce desired
outcomes.
2.
Autonomy is the need to feel ownership over one's
behaviors and choices.
How does CET relate to motivation?
Intrinsic motivation

A person’s internal desire to do something, due to
such things as interest, challenge, and personal
satisfaction.

The most autonomous form of motivation because
it is completely determined by an individual's
interests, beliefs, and preferences
Intrinsic motivation is enhanced by participating in activities
or tasks that an individual has an interest in, has control over
(autonomy), and helps them achieve their personal goals
and skill improvements (competence).
Verbal rewards increase intrinsic motivation; tangible
rewards reduce it (Pay should be non-contingent on
performance.)
Extrinsic motivation

Motivation that comes from outside the person,
such as pay, bonuses, and other tangible rewards.
How CET motivation can be improved using
psychological needs of competence and autonomy.


the
Managers can apply CET to improve intrinsic
motivation using the following techniques:
increasing opportunity for autonomy, minimizing
controlling external factors, finding levels of optimal
challenge, enhancing levels of perceived
competence,
and
focusing
on
personal
development. To increase intrinsic motivation
external events should not be controlling and need
to be informational so the individual feels as though
by participating they are improving their level of
competence and are choosing to do so without
feeling pressured or commanded.
Managers will be able to understand what
motivates to their employees, and how they can
stimulate employee’s performance and keep them
motivated, Motivation play an important role in
how we progress as individuals.
Goal Setting Theory

Presented by Edwin Locke which suggest that goal
setting is linked to task performance essentially. It
states that challenging and specific goals along
with appropriate feedback contribute to higher
and better task performance.
Elements of goal-setting principles:
1.
Goal Acceptance


Goals should not only understand but must be
accepted
Commitment to the goal must be established
2.
Specificity


Goals should be specific, clear, and measurable.
To specify clear targets to reach and be an able to
measure progress.
3.
Challenge

Employees work harder if goals are difficult as it presents
challenge
Hard goals must be achievable (given experience and
resources are present)

4.
Performance Monitoring and Feedback
Performance Monitoring – Observation of output
and is a cue to employees that their contributions
and efforts are valued & needed.
Performance Feedback – Self-generated feedback
is a more powerful tool. Encourages better job
performance.
Advantages & Disadvantage of Goal-Setting Theory
Advantage:
•
•
•
•
This theory provides a clear guideline as to how to
set and achieve goals in an effective way.
Improves employee performance by increasing
efforts and overall motivation. Allows for
constructive feedback on a regular basis so
employees are constantly improving.
Higher levels of performance. When employees
regularly hit their goals, their performance and
productivity improve.
Employees may also become more effective at
hitting goals within their assigned timeframe.
Disadvantage:
•
Difficult goals that the company are trying to
accomplish, performance may fall due to
incompatible actions. (Goals that are too far above
an employee's skills and competencies can have a
negative effect on the employee's performance
and motivation.)
Examples of application of Goal-Setting theory
1. A newly hired Marketing Analyst who has a ton of
potential to succeed at your company. Under goal-setting
theory, Manager should clearly lay out a challenging goal
to help the employee reach their full potential.
For example, you might set a goal of “learn the marketing
analytics software within the first 90 days.” Then, you can
help them break that goal down into smaller tasks (like
“complete onboarding” or “learn how to create an
analytics report”). You can also let them know you’ll be
available to provide feedback along the way — and help
them to understand why learning the software is so
important.
This goal will give your new high performer something to
work towards that’s challenging, but achievable. And
because you’re breaking down why the software is so
important; it will help them commit to the goal. Those
elements will keep them motivated as they learn the ropes
of their new role.
2. Finishing a project with a team
Managers should set a goal of “finish the project by the end
of the month.” Then, break that down into tasks for each
team member and make yourself available to work on the
project with them and provide feedback along the way.
You should also make sure to generate buy-in on why
finishing by end of month is important (for example, to
deliver the product to customers on time).
The clarity of the goal and the goal’s importance — along
with the challenge of wrapping things up before end of
month — can help motivate your team to get things done.
The bottom line? When using goal-setting theory, you want
to make sure you’re setting goals that hit all five of Locke
and Latham’s principles. This includes making sure goals are
clear and challenging (but achievable), that you’re
creating a sense of commitment to the goal, and that
you’re providing regular feedback.
Goal setting leads to better performance by increasing
motivation and efforts, but also through increasing and
improving the feedback quality.
The Acquired Needs Theory
•
David McClelland proposed that the three desires
that an individual could possibly have is motivated
by power, affiliation, or achievement.
Need for Achievement (nACH): Personal Responsibility
•
•
•
Drive some people to overcome challenges &
obstacles in the pursuit of goals.
These people make the best leaders, although
there can be a tendency to demand too much
from their staff in the belief that they are all also
highly results driven.
Individual work harder when:
1. they perceive that they will receive personal
credit for their efforts
2. when there is only moderate risk of failure
3. when they receive specific feedback about
their past performance
Typical behaviors:
High: Must win at any cost, must be on top, & receive
credit.
Low: Fears failure, avoids responsibility.
Need for Power (nPOW): Influence
•
•
•
•
•
Drive to influence people & change situations
Wish to create an impact on their organizations &
are willing to take risks to do so.
High power people enjoy competition and statusoriented positions.
While these people are attracted to leadership
roles, they may not possess the required flexibility
and people-centered skills.
Make excellent managers if their drives are for
institutional power instead of personal power
Typical behaviors:
High: Demands blind loyalty and harmony, does not
tolerate disagreement.
Low: Remains aloof, maintains social distance.
Need for Affiliation (nAFF): Cooperation and Friendship
•
•
•
•
Work better when they are complemented for their
favorable attitudes & cooperation.
They want to be liked and accepted by others and
attach importance to personal interactions.
They strive to make and keep relationships with a
high amount of trust and mutual understanding.
Obviously, they perform well in customer service
and client interaction situations.
Typical behaviors:
High: Desires control of everyone and everything,
exaggerates own position and resources.
Low: Dependent/subordinate, minimizes own position
and resources.
Everyone has these needs → but they are malleable by
culture or personal experience.
McClelland's theory allows for the shaping of a person's
needs; training programs can be used to modify one's need
profile.
Implications for Management: People with different needs
are motivated differently.
High Need for Achievement
• Should be given challenging projects with reachable
goals
• Should be provided frequent feedback (“pat in the
back”)
• While money is not an important motivator, it is an
effective form of feedback.
High needs for Affiliation:
• Performs best in a cooperative environment.
• May hate being a computer programmer because it
requires so much time alone in the cubicle writing codes
High need for Power:
• Should be provided the opportunity to manage others
• They will be frustrated and will likely frustrate their coworkers if put in a position at the bottom of the ladder
with no opportunity to advance
How can Manager apply The Three Needs Theory?
People require different things from their workplace.
McClelland’s theory can be applied to manage the
corporate teams by being identifying and categorizing
every team member amongst the three needs. Knowing
their attributes may certainly help to manage their
expectations, discover what motivates their employees,
and running the team smoothly.
Thematic Apperception
psychological test.
•
•
Test
(TAT):
is
a
projective
A tool to measure the individual needs of different
people
A test of imagination that presents the subject with
a series of ambiguous pictures reveal their
underlying motives, concerns, and the way they see
the social world.
For example, someone who always takes charge of the
team when a project is assigned. The one who speaks up in
meetings to encourage people, and delegates
responsibilities to facilitate achieving the goals of the group.
Someone who likes to control the final deliverables. This
team member is likely being driven by power.
Another team member who does not speak during
meetings, and is happy agreeing with the team thoughts, is
good at managing conflicts and may seem uncomfortable
while someone talks about undertaking high-risk, highreward tasks. This team member is likely being driven by
affiliation.
Herzberg’s Two-Factor Theory
Here are the key benefits of using Herzberg's two-factor:
Frederick Herzberg suggest that there are some job factors
that result in satisfaction while there are other job factors
that prevent dissatisfaction. These two factors impacted
employees' performance in different ways.
•
The Two factors identified by Herzberg
•
Motivating Factors
• The presence of motivators causes employees to
work harder. They are found within the actual job
itself.
• These factors motivate the employees for a superior
performance. These factors are called satisfiers.
• The motivators symbolized the psychological needs
that were perceived as an additional benefit.
Motivational factors include:
1. Recognition - The employees should be praised
and recognized for their accomplishments.
2. Sense of achievement - The employees must
have a sense of achievement. There must be a
fruit of some sort in the job.
3. Growth and promotional opportunities - There
must
be
growth
and
advancement
opportunities in an organization to motivate the
employees to perform well.
4. Responsibility - The employees must hold
themselves responsible for the work. The
managers should give them ownership of the
work. They should minimize control but retain
accountability.
5. Meaningfulness of the work - The work itself
should be meaningful, interesting, and
challenging for the employee to perform
•
Hygiene Factors
• Are those job factors which are essential for
existence of motivation at workplace. These do not
lead to positive satisfaction for long-term.
• Hygiene factors are also called as dissatisfiers or
maintenance factors
• The hygiene factors symbolized the physiological
needs which the individuals wanted and expected
to be fulfilled. Hygiene factors include:
1. Pay - The pay or salary structure should be
appropriate and reasonable.
2. Company Policies and administrative policies The company policies should not be too rigid.
They should be fair and clear. It should include
flexible working hours, dress code, breaks,
vacation, etc.
3. Fringe benefits - The employees should be
offered health care plans
4. Physical Working conditions - The working
conditions should be safe, clean, and hygienic.
The work equipment’s should be updated and
well-maintained.
5. Status - The employees’ status within the
organization should be familiar and retained.
6. Job Security - The organization must provide job
security to the employees.
•
Defines the reasons why team members are
satisfied or dissatisfied with their project or role
Uncovers the motivators and hygiene factors
already deployed in the company that should be
continued
Helps determine the motivators and hygiene factors
that employees want from the company
Supports employee empowerment by motivating
employees to achieve project goals themselves
Implications of Two-Factor Theory
• The managers must make sure that the work is
stimulating and rewarding so that the employees
are motivated to work and perform harder and
better. This theory emphasizes upon job-enrichment
to motivate the employees. The job must utilize the
employee’s skills and competencies to the
maximum. Focusing on the motivational factors can
improve work-quality.
The Four Status of Two-way Factor
1. High Hygiene and High Motivation
This is the ideal situation and the one which every manager
should strive for. Here, all employees are motivated and
have very few grievances.
2. High Hygiene and Low Motivation
In this situation, employees have few grievances, but they
are not highly motivated. An example of this situation is
where pay and working conditions are competitive, but the
work isn’t very interesting. Employees are simply there to
collect their salary.
3. Low Hygiene and High Motivation
In this situation, employees are highly motivated, but they
have a lot of grievances. A typical example of this situation
is where the work is exciting and interesting, but the pay and
conditions are behind competitors in the same industry.
4. Low Hygiene and Low Motivation
This is obviously a bad situation for an organization or team
to find itself in. Here, employees aren’t motivated, and the
hygiene factors are not up to scratch.
There is a two-step process to use the Two Factor Theory:
1.
2.
Eliminate Job Hygiene Stressors.
Boost Job satisfaction.
Example of the Herzberg theory
You're a senior executive, your goal is to decrease
dissatisfaction, so you address hygiene factors, including
work conditions, autonomy, and job security. You make
physical improvements to the office so employees have
access to the latest design software and dual monitors to
showcase their work. The PTO policy allows employees to
take unlimited vacation time, and you allow employees to
telecommute or come to the office depending on their
preferences.
Now that you've acknowledged dissatisfaction, your aim is
to increase every employee's job satisfaction. You credit
employees when the company receives positive feedback
from clients. You also openly discuss how their designs have
boosted clients' brand awareness and product sales, which
shows employees that their work is meaningful.
ERG Theory
•
•
According to Alderfer, a person has three core
groups of their needs. These groups can be
classified as existence, relatedness, and growth.
These core groups are closely related to what
Maslow gave in his need’s theory.
ERG theory suggests that a person may be
motivated by different levels of needs at any given
time. Any need which has a high priority for them
can change from time to time.
Existence
• In alignment with Maslow’s basic needs which he
categorized as physiological needs, Alderfer called
them the existence needs.
• Alderfer gave a similar idea in terms of employment,
property, and health.
Relatedness
• In Maslow’s hierarchy of needs, the second level is
that of belongingness to others and having social
relationships.
Growth
• The third complement of ERG theory is growth.
Humans need to grow in terms of having selfesteem, confidence and focus on personal
development.
Implications of E.R.G. Theory
•
Managers must understand that an employee has
various needs that must be satisfied at the same
time. According to the ERG theory, if the manager
concentrates solely on one need at a time, this will
not effectively motivate the employee. Also, the
frustration-regression aspect of ERG Theory has an
added effect on workplace motivation.
•
For instance- if an employee is not provided with
growth and advancement opportunities in an
organization, he might revert to the relatedness
need such as socializing needs and to meet those
socializing needs, if the environment or
circumstances do not permit, he might revert to the
need for money to fulfill those socializing needs.
According to Maslow, an individual remains at a particular
need level until that need is satisfied. While according to
ERG theory, if a higher- level need worsens, an individual
may revert to increase the satisfaction of a lower-level need.
This is called frustration- regression aspect of ERG theory. For
instance- when growth need aggravates, then an individual
might be motivated to accomplish the relatedness need
and if there are issues in accomplishing relatedness needs,
then he might be motivated by the existence needs. Thus,
frustration/aggravation can result in regression to a lowerlevel need.
Frustration-Regression Principle
ERG Theory proposes that if a higher-level need fails to be
filled then a person may regress and seek to further fill lowerlevel needs instead.
For example, if an ambitious employee isn’t provided with
growth opportunities, then their motivation will be lower,
and they may become frustrated. This may cause them to
seek out more relatedness needs.
Finally, if they are unable to satisfy their relatedness need,
they may seek to further satisfy their existence needs.
Difference between Maslow Need Hierarchy Theory and
Alderfer’s ERG Theory
•
•
The ERG Theory of Motivation is a simplified but
more flexible version of Maslow’s hierarchy of
Needs.
It proposes three needs that must all be satisfied for
an individual to be motivated: existence,
relatedness, and growth.
Managers can use the theory to ensure that the conditions
within their organization are right to allow each team
member to be motivated.
Expectancy Theory
Proposed by Victor Vroom, suggests that behavior is
motivated by anticipated results or consequences. Vroom
proposed that a person decides to behave in a certain way
based on the expected result of the chosen behavior. For
example, people will be willing to work harder if they think
the extra effort will be rewarded.
In essence, individuals make choices based on estimates of
how well the expected results of a given behavior are going
to match up with or eventually lead to the desired results.
While Maslow and Herzberg also researched the relation
between people’s needs and the efforts they make, Vroom
distinguishes between the effort people put in, their
performance and the result. His theory primarily relates to
motivation within a work environment. When employees
can make choices in their work, Victor Vroom argues that
they will mostly choose what motivates them the most.
•
Addressing Uncertainty - Two major approaches:
1.
Employees and other parties can work together to
strengthen both the actual value of rewards
offered, and the formal connections between effort
and performance, and performance and rewards.
2.
Managers should recognize and accept the
legitimacy of an employee’s perception of
rewards. Complexity and simplicity of an incentive
should also be considered.
Limitations of the Expectancy Theory
•
The expectancy theory seems to be idealistic
because quite a few individuals perceive high
degree correlation between performance and
rewards.
•
The application of this theory is limited as reward is
not directly correlated with performance in many
organizations. It is related to other parameters also
such as position, effort, responsibility, education,
etc.
Expectancy theory has three components: expectancy,
instrumentality, and valence.
1.
Expectancy - The probability that effort will result in
successful performance; May be affected by two
forces: self-efficacy and imposter phenomenon.
Effort → Performance
2.
Instrumentality - To what degree is the level of
performance related to the reward received?
one’s estimate that performance will result in
receiving a reward. A person has confidence that
successful performance, clearly defined, will result
in a specific reward. Performance → Outcome
3.
Valence - What is the value of the rewards that
result from the performance? how much one wants
a reward; one’s desire to reach a goal.
Outcome → Reward
Implications of the Expectancy Theory
• The managers can correlate the preferred
outcomes to the aimed performance levels.
• The managers must ensure that the employees can
achieve the aimed performance levels.
• The deserving employees must be rewarded for
their exceptional performance.
• The reward system must be fair and just in an
organization.
• Organizations must design interesting, dynamic,
and challenging jobs.
• The employee’s motivation level should be
continually assessed through various techniques
such as questionnaire, personal interviews, etc.
Impact of Uncertainty in Expectancy Theory
•
No one can be sure that a desired reward will follow
a given action, unless the employer sets standards
for appraisal. Moreover, there are two outcomes for
every action: primary and secondary.
Another cause of uncertainty is that many
outcomes are controlled by other parties managers and associates for instance – and the
employee cannot be sure how will they act.
How can managers use expectancy theory to motivate
employees?
• Make rewards align with values and deliver on
every promise to create an environment of trust.
Challenge employees to reach their full potential
with stretch goals while providing adequate
support and authority to help them handle their
tasks. Remember to set and communicate clear
expectations.
•
Managers can use the expectancy theory to
motivate employees by expressing trust in their
abilities to handle their duties, despite perceived
difficulty and control.
•
Reward high-performing team members and
encourage others to improve effort and
performance. Use project management software
to analyze and adjust employee workload and
keep overall performance and project progress
transparent.
Equity Theory
•
•
•
•
Introduced by John Stacey Adams, it is based on a
simple idea that employees who identify a situation
of inequality between them and their peers will feel
demotivated and distressed.
indicates that employees can attain higher
motivation when every employee gets equal and
fair opportunities.
It is common for employees to compare themselves
to other employees from inside and outside the
organization. They compare their total of all inputs
against the sum of all outputs.
If they see inequality and unfairness, they will lower
their inputs to compensate. They will choose to work
more or work less depending on the positivity or
negativity of the situation.
For Example, if an employee knows that their
colleague is getting a higher salary than them for
the same amount of work, this might create
dissatisfaction.
Managers should understand the Equity Theory fully, they
must know the inputs and outputs of employees first.
Inputs are nothing but significant contribution the things an
employee does to achieve the outputs.
Inputs include:
1. The number of working hours
2. Commitment
3. Enthusiasm
4. The experience brought to practice
5. Personal sacrifices
6. Loyalty
Whereas outputs, commonly referred to as outcomes, are
what the employee receives because of their inputs in the
organization.
1. Salary & Bonus
2. Pension
3. Annual Holidays
4. Company travels
5. Recognition & Promotion
6. Performance Appraisals
Double Comparison - matched between an employee’s
inputs and outcomes, coupled with the comparison with
some referent’s person. A social comparison process
through which they evaluate their own inputs and outcomes
in relation to those of others.
Four Referent Comparisons
1. Self-inside: An employee's intrinsic experience in
their current workplace
Ex: when they contemplate on their performances
in the same organization.
2.
Self-outside: An employee's experience with the
industry standards
Ex: If they compare their pay with their previous job
3.
Others-inside: An employee comparing themselves
with someone from their current workplace
Ex: An employee compares their salary with other
employee in the same company
4.
Others-outside:
An
individual
comparing
themselves with someone outside their workplace.
Ex. If the same employee compares their pay with
an acquaintance from a different company
“Most employees are concerned about more than just
having their needs satisfied, they also want their reward
system to be fair Procedural justice – to assess fairness in the
process”
• Interpersonal treatment
• Clarity of expectations
Inequity
• Under conditions of inequity, employees will experience
tension that can directly impact performance
o Over-reward
o Employee might work harder
o Employee might discount value of reward
o Try to convince other employees to ask for
more rewards
o Choose someone else for comparison purposes
o Under-reward
Critical Points for Managers to Keep in Mind
Here are some essential things to keep in mind to
understand equity theory in the workplace if you’re
managing a team:
• Employees measure their total inputs against all outputs.
For example, a single parent will accept flexible working
hours and lesser pay.
• Social comparison plays a vital role while being fair to
every employee. Two employees who do the same
work will compare their performances with individual
perceptions. As a good team leader, you must learn
these expectations and influence values.
• Senior employees get more salary than juniors. But
paying excessive salaries is a sign of demotivation
amongst other employees. One must know to balance
both.
• An employee who receives higher compensation and
recognition will increase their effort. Similarly, if an
employee feels underpaid, their motivation level goes
down.
Managers must also keep track of options available to
reduce inequality. They are:
1.
2.
3.
Change employees’ inputs or outputs
Change inputs or outputs of others
Change the perception of inputs and outputs
Attribution Theory
The Process of Making and Using Attribution
Fritz Heider’s attribution theory is a method that can be used
for evaluating how people perceive the behavior of
themselves and of other people. Heider says that all events
and behavior can be determined by either internal or by
external factors:
External Attribution: Factors fall outside your control.
Your behavior is influenced, limited, or even
completely determined by influences outside your
control. Also called: Situational Attribution.
A generic example is the weather.
Internal Attribution: Inside factors fall inside your own
control. You can choose to behave in a particular
way or not. Your behavior is not influenced, limited,
or even completely determined by influences
outside your control. Also called: Dispositional
Attribution.
Example is your own intelligence.
Attribution factors by Kelley (1967): Kelley advanced
Heider's theory by adding hypotheses about factors that
affect the formation of attributions:
Consistency information - The degree to which the
actor performs that same behavior toward an
object on different occasions.
Distinctiveness information - he degree to which the
actor performs different behaviors with different
objects.
Consensus information - The degree to which other
actors perform the same behavior with the same
object.
Applications of Attribution
•
Managers might benefit from greater awareness of
their own attributional process and how it affects
their behavior toward employees. They could also
seek to reinforce among subordinates the belief
that success is due to the workers’ own efforts and
abilities, while discouraging the employee
attribution that failure is due to task difficulty or luck.
•
Simple attributions should be avoided, since
employee behavior is also partly determined by the
task, social context, and environment.
Different Attributions for an Employee’s Behavior
Trainers can take advantage of this predisposition
by having guest lectures from successful
employees.
Social Learning Theory
•
Albert Bandura's suggests that employees learn
new behaviors or gain substantial Information
about how to perform & act by observing &
imitating role models around them.
•
Employees focus more on what their managers do,
rather than what they say. Similarly, employees
influence others in their work environment who are
watching them.
•
The importance of social learning theory for
motivation is that it reminds managers that
employees do not always react mechanically to
their environment.
For example, an employee can imagine getting a bonus for
a creative idea after observing another employee
rewarded for doing so. People imitate the behavior of those
they admire or respect. This principle underlies celebritybased advertising, which assumes individuals want to copy
the behavior of popular and successful people.
•
Social learning theory supports the concept that
managers should provide role models of
appropriate behavior. Managers can create social
learning opportunities through individual rewards or
praise given in public settings, such as staff
meetings.
•
Social learning can be effective, but only if
individuals are retaining information, applying it to
their roles, and producing an outcome.
Limitations of Social Learning Theory
Although social learning is a cost-effective and efficient
method of informal learning, it does present two major
obstacles:
•
•
5 Principles of Social Learning Theory
1. Observation
The most important element of social learning theory is
observation of other behaviors, and then imitation of them.
2. Attention
Focus is critical to social cognitive learning theory, as we
obviously can’t learn without paying attention. The behavior
we want the learner to imitate should have their total
attention, with no outside factors or distractions.
3. Retention
Humans retain information by internalizing it and filing it
away in their subconscious. By combining observation and
attention, we ensure that the learner has the best chance
of retention of information.
4. Reproduction
The next step is reproducing the behavior, skills or
knowledge that we observed, focused on, and then
retained. The more times you reproduce the behavior, the
faster your mental and physical response will be in the next
similar situation.
5. Motivation
Motivation is the final step, and necessary for humans to do
anything at all. humans are often motivated by an outside
entity offering a reward or punishment for acting or not
acting.
Implication of Social Learning Theory
•
Applying principles of social learning theory to
workplace training encourages instructors to
include anecdotal stories and demonstration
videos or play-acting exercises to reinforce
concepts of appropriate and inappropriate
workplace behavior. Social learning theory supports
the concept that classroom training effectiveness
improves when students admire the instructor.
How can your employees be social learning with
online training?
How can you employ social learning in the era of
remote work?
How is Social Learning Theory Applicable to the Workplace?
1.
2.
3.
4.
5.
Implement a mentorship program to support social
learning
Encourage
employee
communication
and
connectivity
Leverage expert knowledge
FAQs and forums
Ask questions and get answers
Hawthorn Effect Theory
•
•
•
Elton Mayo proposed that employees aren’t that
motivated by pay and environmental factors.
Instead, positive relational factors play a bigger role
in productivity.
This states that changes in behavior happen when
you are monitoring or watching employees. The
mere presence of someone watching you changes
the way you behave. You start to perform better.
It is the group that determines productivity, not pay,
and not processes.
For example, if someone is working too fast, they will be
ostracized from the group. Likewise, if someone is working
too slow the same thing will happen.
4. Groups with high norms and high cohesiveness
• These are the teams that can make the greatest
positive impact on productivity. In this type of team,
each team member supports each other to
succeed. People are personally committed to their
success and to the team’s success. A strong support
network forms within this type of team.
Using the Model
To use the model to boost the productivity of your team, you
should do the following:
1. Strong Communication
• Communicate regularly with the members of your
team. Giving regular feedback is an important part
of this.
Why? Because workers in the Hawthorn Studies
were consulted and had the opportunity to give
feedback. This resulted in improved productivity.
2. Group Working
• Your team should be working as a group rather than
as individuals. If your team is too big to work as one
group, then try to break it down into smaller groups.
Try to avoid people working individually. If you give
out a bonus, don’t just make it about what was
achieved. Instead, include an element of the bonus
that is about how the result was achieved and the
contribution to teamwork. This will encourage group
cohesiveness.
Why? Hawthorn employees didn’t previously work in
teams, but when they did, productivity improved.
You can think of group cohesiveness as being how well the
group gets on, their comradery. You can think of norms as
being whether the group encourages positive or negative
behaviors.
There are Four Positions in the matrix:
1. Groups with Low cohesiveness and Low norms
• These groups are simply ineffective in terms of
productivity. A team like this wouldn’t last very long.
This is because nobody would be motivated to be
productive in any way.
2. Groups with high cohesiveness and low norms
• These types of teams have a negative impact on
productivity. Here the team gets on great, but
negative behaviors are encouraged rather than
positive ones. Gangs are often cited as examples of
this type of group.
3. Groups with high norms but low cohesiveness
• This type of team can have a limited positive
impact on productivity. This is because each team
member will be working towards their own success
rather than that of the team. If one team member
does something great, then good for them, but it
doesn’t really improve the productivity of the rest of
the team.
3. Increased Involvement
• Try to have greater involvement in each team
member’s life. Ask how their day has been? Ask
about their weekend and what’s going on at home.
Here you’re trying to strike the right balance
between being supportive and allowing people to
keep their autonomy.