BUSM 2000
Prof. M. Shingler, Spring 2006
Chapter 16, Motivation
Motivation, Chapter 16
Overview
Foundations of Motivation
 Content Perspectives of Motivation
 Process Perspectives of Motivation
 Reinforcement Perspective on Motivation
 Job Design for Motivation

Motivation - Introduction
Definition – internal or external forces that act on a person
that arouse enthusiasm and persistence to pursue a certain
course of action
 Important to have a motivated workforce that will “go the
extra mile” to exceed performance expectations on the job
 Motivate employees for special short-term projects
 Also, employees must be motivated to perform well over
the long-term

Intrinsic vs. Extrinsic Motivation
Intrinsic – personal satisfaction that is obtained from the
work itself when you perform well and complete goals
 Extrinsic – rewards that are linked to job performance.
Given by another person

 Pay
 Benefits
– becoming more important in today’s workforce.
Companies estimate that the cost of benefits is 25-40% of an
employee’s base salary
Foundations of Motivation
Traditional Approach
 Started by Taylor and the Scientific Theory of Management.
Focused on extrinsic rewards
Page 1 of 10
BUSM 2000
Prof. M. Shingler, Spring 2006
Chapter 16, Motivation
Human Relations Approach
 Focus more on intrinsic rewards. Result of the Hawthorne
Studies
Human Resource Approach
 Employers are complex and motivated by many factors
Contemporary Approach
 Groundwork for this was laid by the human resource
approach. Considers the content, process, and reinforcement
theories (described below)
Content Perspectives of Motivation - Introduction
Seek to understand what underlies and drives motivation
in people
 In all cases, people’s needs are the primary focus of the
theories
 Theories emphasize that the needs motivate people
 Without the needs, there would be no reason for one to be
motivated

Content Theories
Maslow’s Hierarchy of Needs
 Alderfer’s ERG Theory
 Herzberg’s Two-Factor Theory
 McClelland’s Acquired Needs Theory

Maslow’s Hierarchy of Needs

People experience needs in a specified order from simple
physiological needs to complex psychological needs as
follows
 Physiological
needs (most simple)
 Safety (security) needs
 Belongingness (social) needs
Page 2 of 10
BUSM 2000
Prof. M. Shingler, Spring 2006
Chapter 16, Motivation
 Esteem






needs
 Self-actualization needs (most complex)
Physiological needs – for biological existence: food, shelter, air,
etc.
Safety (security) needs – steady job, stability in physical
needs, protection, freedom from threats
Belongingness (social) needs – desire to be accepted by one’s
peers; friendships, love, affection, sense of belonging, supervisory
support
Esteem needs – positive self-image, respect, prestige,
recognition, personal pride, increase in responsibility
Self-actualization – grow and use one’s abilities to the fullest
potential. In the workplace, this can be accomplished by
challenging assignments and advancement
According to this theory, the next level of needs cannot be
achieved until the lower level is satisfied


Thus, providing for higher levels will not motivate unless the
needs at the lower levels are met
Theory states that self-actualization can never be fully
satisfied


People will continue to develop and learn as long as they have
the opportunity
Is a form of intrinsic motivation
Maslow’s Hierarchy of Needs – Consequences for
Managers

Rewards associated with lower level needs will only
motivate an employee to a limited extent
 Personal
growth and striving for self-actualization will keep an
employee motivated over the long-term
 Extrinsic motivation will not work in the long-term
Alderfer’s ERG Theory

Modification of Maslow’s theory that is not as rigid.
Page 3 of 10
BUSM 2000
Prof. M. Shingler, Spring 2006
Chapter 16, Motivation
Considers three groups of core needs
 Existence – concerned with material requirements for
survival


 Similar
to physiological and safety needs in Maslow’s hierarchy
 Similar
to social and esteem needs
Relationship – ones desire for support, relationships, and
recognition
Growth – very similar to self-actualization
Alderfer’s ERG Theory - Comments


This theory differs from Maslow’s in that the rigid hierarchy does
not have to be followed
If a higher order need is not being met, the worker might demand
more rewards to satisfy lower level needs
Herzberg’s Two-Factor Theory



Considers factors that motivate, AND REDUCE motivation
Key part of this theory is that two separate sets of characteristics
affect motivation and employee performance
Characteristics associated with dissatisfaction are quite different
than those pertaining to satisfaction
Herzberg’s Two-Factor Theory – Hygiene Factors

Factors that DECREASE motivation
 Tend

to be extrinsic factors
Examples are:
 Working
conditions
 Company politics and policies
 Interpersonal relationships with coworkers and supervisors
 Compensation and benefits
Herzberg’s Two-Factor Theory – Motivators

Factors that increase motivation
 Tend

to be intrinsic factors
Examples of these are:
Page 4 of 10
BUSM 2000
Prof. M. Shingler, Spring 2006
Chapter 16, Motivation
 Nature
of the work
 Responsibility for a task
 Opportunities for personal growth
 Feeling of achievement
Herzberg’s Two-Factor Theory – Comments

Both the presence of motivators and absence of hygiene
factors are necessary for employee motivation
 Cannot
have motivators with the presence of hygiene factors
 Cannot simply eliminate hygiene factors without the presence of
motivators
McClelland’s Acquired Needs Theory
Proposes that certain types of needs are acquired during a
person’s lifetime. People are not born with them but they
may learn them through their life experiences.
 Need for achievement – drive to accomplish things
 Individual
gains great satisfaction from personal attainment and
goal completion
 Often, more interested on personal gains
Need for affiliation – desire to form close personal
relationships, avoid conflict, and be liked by others
 Need for power – desire to influence or control others, be
responsible for others

McClelland’s Needs – Consequences for Managers

Need for achievement is not necessary for success
 Good
managers must be willing to help others
 High achievers tend to be successful in entrepreneurial activities
Managers must make tough decisions, which is not part of
need for affiliation
 Need for power is often a predictor of success for
managerial jobs

Page 5 of 10
BUSM 2000
Prof. M. Shingler, Spring 2006
Chapter 16, Motivation
McClelland’s Needs – Comment
A student with a high GPA probably has a high need for
achievement
 However, they might not have a need for affiliation or
power

Comments on Content Theories
Remember, a happy employee is typically a good and
productive employee
 These theories are older and were developed before
today’s employment and economic environment

 Higher
stress levels
 More diverse workforce
In today’s environment, job security can be a very
important motivating factor
 Where does job security fit in these theories?

Process Perspectives on Motivation
Describes how workers select behavioral actions to meet
their needs and determine if their choices were successful
 Equity Theory
 Expectancy Theory
 Goal-setting Theory
Equity Theory
How fairly is one treated with respect to others? Fairness
is usually based on comparisons with coworkers within the
company, or others at a different company. This
comparison typically occurs continuously
 Based on fairness in the outcomes (pay, promotions,
recognition) with the inputs (contributions, education,
special skills)

Page 6 of 10
BUSM 2000
Prof. M. Shingler, Spring 2006
Chapter 16, Motivation
Equity Theory - Comments

Employees who feel they are inequitably treated may
 Cut
back on their level of effort
 Try to change the level of outcomes – request a raise or better
benefits (bigger office)
 Distort perceptions - try to inflate their accomplishments, or
decrease other’s accomplishments
 Leave the company
 Sabotage?
Comment, the book mentions inequity when an individual feels that they
are being over paid. Do you really think that this happens? Do you know
of people who suggest to their bosses that they take pay cuts?
Equity Theory – Consequences for Managers

An increase in salary or promotion will have no
motivational effect if it is perceived as inequitable relative
to other employees
Expectancy Theory

Motivation depends upon an individual’s expectations
about their ability to perform tasks and receive desired
rewards. Employees will act in a certain way if they
believe their actions will produce positive outcomes
 For
example, an employee will work harder if they believe it will
lead to a raise or promotion
This theory does not apply to most union shops
Elements of Expectancy Theory
 Based on the premise that an individual’s effort influences
the performance, and the associated outcomes



EP – will putting in the effort lead to high performance?
Individual must have the ability, experience, necessary
equipment, and opportunity to perform
PO – will successful performance lead to the desired
Page 7 of 10
BUSM 2000
Prof. M. Shingler, Spring 2006

Chapter 16, Motivation
outcome? In the workplace, if successful, it is expected to
receive an appropriate award.
Valence – value of the outcomes or attraction to the outcomes
Expectancy Theory - Comments
If someone hasn’t been trained properly for a task, they
would have a low expectancy level
 Systematic factors that limit performance will have a low
expectancy
 Some “rewards” may be perceived as negatives by an
employee


Example – being promoted, being made salary instead of hourly
Goal-Setting Theory
People are more motivated when they have concrete
objectives or targets. Goal specificity refers to the degree
to which the goals are concrete and unambiguous
 Goal difficulty – for some people, hard goals are more
motivating than easy goals. Also called “Stretch” goals
 Goal acceptance - employees must “buy into” the goals

 Goals

should be jointly set by the employee and supervisor
Unattainable goals frustrate and demoralize employees!!!
Feedback – if possible, self-feedback is best
 This theory has led to the popular management by
objectives (MBO) approach
 Organizational goals should cascade down to divisional,
departmental, and individual levels

Goal-Setting Theory - Comments
This theory can backfire if the wrong goals are set
 It is very difficult to quantify and measure some important
tasks
 Piece-work or “pay for performance” are based on this

Page 8 of 10
BUSM 2000
Prof. M. Shingler, Spring 2006
Chapter 16, Motivation
theory
Reinforcement Perspectives on Motivation
Big assumption is that positive reinforced behavior tends to
be repeated while negative reinforced behavior tends to be
inhibited
 Positive Reinforcement – pleasurable stimulus or reward
following a desired behavior
 Negative Reinforcement (avoidance learning) – removal of
unpleasant conditions following a desired behavior.
Employees learn to do the right thing by avoiding
unpleasant situations.



Stop criticizing when incorrect behavior stops
Punishment – an adverse or unpleasant consequence
(outcome) following an undesired behavior
 Verbal

reprimands, suspensions, firings
Extinction – withdrawal of a positive reward following
undesired behavior
 Withhold
pay raises, praise, other positive outcomes until
behavior changes
Reinforcement Theory - Comments
Assumes that motivation does not reside in the worker.
Instead, it lies with the policies that the company set up
for behaviors and rewards.
 Thus, the goal is to concentrate on behaviors instead of
the employee’s motives

Job Design for Motivation
Designing the structure of the work to improve satisfaction
and productivity
 Job Simplification – reduce the number of task that a
Page 9 of 10
BUSM 2000
Prof. M. Shingler, Spring 2006
Chapter 16, Motivation
person must do
 Typically done with workers of low skill level. Job design
often based on scientific management principles
 Job Rotation – helps to provide variety and stimulation
 Job Enlargement – makes a job more varied and
interesting by expanding the scope of the job
 Job Enrichment – combines a series of tasks into one new
broader job. Gives employees greater opportunity to plan,
organize and control parts of their jobs
 Requires
a boss that is willing to delegate some of the
responsibility to the worker
Other Forms of Motivation by Job Design








Flex-time
Working from home
Job sharing
Part-time employment
Casual dress
On-site day care
Fitness center
Page 10 of 10