Introduction
One of the keys to effective management lies in harnessing the motivation of
employees in order to achieve the organisation’s goals and objectives. Motivation
is therefore a key topic in the study of organisational behaviour. This chapter
discusses several motivation theories and the concept of empowerment in terms of
how they may contribute towards increasing both productivity and the quality of
working life. The theories in this chapter are an important foundation for the ideas
to be developed throughout the rest of this book. Before looking at the separate
theories, two key points should be made. First, motivation to work refers to
forces within an individual that account for the level, direction and persistence of
effort expended at work. Within this definition of work motivation:
• level — refers to the amount of effort a person puts forth (for example, a lot or
a little)
• direction — refers to what the person chooses when presented with a number
of possible alternatives (for example, to exert effort on achieving product quality
or product quantity)
• persistence — refers to how long a person sticks with a given action (for
example, to try for product quantity or quality, and to give up when it is difficult
to attain).
Motivation to work refers to the forces within an individual that account for the
level, direction and persistence of effort expended at work.
Second, it is important to emphasise that motivation to work (or willingness to
perform) is one of three components of the individual performance equation,
which was presented in chapter 2 (the other two are the capacity to perform and
organisational support). High performance in the workplace depends on the
combination of these three individual performance equation factors (as will be
emphasised later in the chapter when motivation theories are integrated).
Motivating and empowering the workforce
Each employee is different, each organisation’s workforce may have different
characteristics, and at different times or in different locations there may be
different circumstances that affect motivation and empowerment strategies in
different ways. In order to meet the challenge of motivating employees, managers
must be concerned with the context in which this is being done. Managers also
need to understand the challenges of the work effort–motivation cycle.
1 LEARNING OBJECTIVE
Motivating and empowering today’s workforce
Contemporary issues affecting motivation and
empowerment
When considering motivation, contemporary organisations are not just dealing
with existing employees — they must also consider how they might attract
future employees. They are concerned about attracting and retaining employees,
especially in a competitive labour market. The business media carries much
discussion relating to competition for talented workers as well as on attracting
and retaining staff, engaging employees, providing employee benefits, rewards
and remuneration programs and helping employees to balance work and life
demands. These and many other contextual factors for motivation illustrate how
difficult and complex it can be for employers to motivate employees and to
enhance their performance. Organisations that fail to recognise these contextual
factors and their implications for workplace motivation risk losing their best
people to other organisations with more exciting, satisfying or rewarding
opportunities. Some particular contemporary issues that underpin these concerns
are labour skills shortages, an ageing population and workforce mobility. These
are briefly summarised below. Motivation is applied in workplaces through the
use of various strategies such as the provision of workplace rewards, job
designing and flexible work places.
Labour skills shortages
Leading up to, and during, 2008 the business media carried a lot of advice
about labour and skills shortages and competition for talent. Shortages among
employees such as accountants, chefs, metal tradespersons and construction
workers were very evident. Regionally uneven, the shortages in the Northern
Territory, South Australia and Queensland were increasing while a survey of
more than 500 businesses in Australia found that 73 per cent of Victorian
companies nominated the inability to employ skilled staff as a barrier to their
success.1 Skills shortages in New Zealand were the main constraint on
expansion for just under one-third of organisations in the services sector and
44 per cent of building firms were experiencing problems finding skilled staff.
There were also high vacancy levels for agriculture and fishery workers, and
for machine operators and assemblers, with shortages perceived to be worse
on the South Island.2
With the global financial downturn that began in late 2008, a sudden change in
the labour market was seen. The large-scale retrenchments of the 1990s
returned, with unemployment rising, overshadowing the focus on skills
shortages and talent wars. However, skills shortages can and do coexist with
high unemployment3 and despite a sudden shift in the labour demand, some
skills shortages will remain and in the future new shortages may develop. Both
Australia and New Zealand had modified their immigration policies to attract
more skilled immigrants but in response to more recent developments
Australia temporarily reduced its intake for 2009.4 High levels of competition
for ‘talented’ workers may continue in some areas despite economic downturn
and many employers will need to maintain their efforts for attracting and
retaining talent. One of many explanations about why skills shortages emerged
was that professions had a poor image in terms of compensation, career path
and development opportunities and young people chose to seek out other
careers.5 Whenever labour shortages occur (such as when there are particular
skills shortages or as the population ages) there will be a growing need for
organisations to carefully consider employee needs and expectations as well as
how they can attract and retain trained and skilled workers and older
employees. A method they might use is looking at groups that have previously
been underutilised — such as people with disabilities, indigenous people,
older people, women who wish to work part-time and international workers.6
Profiles of employees over time may necessitate adjustments so employee
benefits and rewards suit the different personalities in a workplace.
The ageing population
In conjunction with skills shortages, the ageing population is contributing to a
potential ‘experience deficit’ as older workers retire.7 In Australia, the median
age will rise from 35 years to between 43–46 years by 20518 and the rate of
effective growth in labour supply will be slower than population growth.9
There will still be services that need to be provided to the community but
organisations may have trouble finding enough employees to work to provide
those services. JobNetwork findings indicate that while there were six workers
for every retired person in Australia recently, by 2025 there will only be three
workers for every retired person.10 Responses by organisations to these
looming problems vary. Studies reveal 80 per cent of Australian businesses are
struggling to compete for talent and 59 per cent of businesses are aware the
ageing population is affecting their work environment. However, only about
46 per cent of businesses are doing any workforce planning and about 17 per
cent have strategies for recruiting and retaining older workers.11 Some
organisations still focus on hiring only younger employees12 and consider
older workers who are looking for employment to be too old.13 Considering
the particular needs of older employees is important for staff retention levels
and for attracting new employees from older age groups. For example, health
and well-being programs may be more attractive to older employers. Such
programs have been shown to provide a 3: 1 return on investment by
Pricewaterhouse-Coopers14 and, along with employment itself, to have value
in preventing illness in older age.15 It is also evident that many older people
emphasise the importance of job satisfaction and self-worth in their work, and
some report that they would not work unless they could have work that was
satisfying and worthwhile.16 More men than women are interested in working
in their retirement.17 As the following example from Australia Post shows,
there is a lot of focus on considering the needs of different age cohorts in
organisations, especially in the context of competitive labour markets.
Workforce mobility
Another feature of many workplaces is the mobility of the workforce. This
relates to the willingness of workers to move from job to job and from
organisation to organisation. Many young people opt to travel and work
overseas for extended periods. As a result of the Australian resources boom,
many people are being tempted to accept jobs that require them to work in hot
and isolated locations — sometimes thousands of kilometres from their homes
— for high financial rewards. For some it is a case of flying in and flying out
for work and missing time with family or being subjected to excessive
tiredness from travelling long distances.19 Mobility also relates to the trend for
organisations to seek whole workforces from other locations (such as from
different states, provinces or countries). Many organisations are already
familiar with multicultural workforces, either domestically or in various global
locations. Motivation of different cohorts within the workforce may require
local or cross-cultural knowledge and an understanding of the psychological
bond an employee has with the organisation. The following International
spotlight discusses the importance and prevalence of sourcing workforces
from other locations.
The work motivation challenge
Managers in organisations affected by such changes and pressures must build or
rebuild loyalty and commitment, and create a positive organisational climate in
which employees are motivated to achieve at high levels of work performance.
This challenge is examined in more detail in figure 3.1. The figure shows how
an individual’s willingness to perform is directly related to the needs,
expectations and values of the individual, and their link to the incentives or
aspirations presented by the organisational reward system. Rewards fulfil
individual goals such as financial remuneration and career advancement.
FIGURE 3.1 • Understanding the work effort–
motivation cycle
The degree of effort expended to achieve these outcomes will depend on:
•
the individual’s willingness to perform, and his or her commitment to
these outcomes in terms of the value attached to a particular outcome
•
the individual’s competency or capacity to perform the tasks
•
the individual’s personal assessment of the probability of attaining a
specific outcome
•
the opportunity to perform (which is central to empowerment,
discussed later in the chapter).
A number of organisational constraints or barriers, if not minimised, may restrict
high levels of individual performance.
Figure 3.1 shows that if the outcome or goal is attained, then the individual
experiences a reduction in pressure or tension, and goal attainment positively
reinforces the expended effort to achieve the outcome. As a result of this
positive experience, the individual may repeat the cycle. On the other hand, if
the outcome is frustrated after a reasonable passage of time then the individual
experiences goal frustration and arrives at a decision point. The individual is
presented with three alternatives:
1.
exit from the organisation
2.
renew attempts at goal achievement, or modify or abandon the goals
3.
adopt a negative response to the frustration experience, and perform at
below–optimum levels.
The challenge for managers is to create organisations in which the opportunities to
perform through competency building and empowerment are maximised and the
impediments to performance are kept to a minimum to avoid the negative
consequences of goal frustration. The next OB in action highlights some of the sorts
of frustration one man experienced in his job in IT. Figure 3.1 shows the complexity
of the work motivational process and emphasises the importance of individual needs,
expectations and values as key elements of this process.
Content and process motivation theories
Two main approaches to the study of motivation are known as the content and
process theories. More recent approaches, based on personal values and selfconcept, are also presented later in the chapter.
2 LEARNING OBJECTIVE
The difference between content and process theories
Content theories are primarily concerned with what it is within individuals or
their environment that energises and sustains behaviour. In other words, what
specific needs or motives energise people? We use the terms ‘needs’ and
‘motives’ interchangeably to mean the physiological or psychological deficiencies
that one feels a compulsion to reduce or eliminate. If you feel very hungry (a
physiological need), you will feel a compulsion to eliminate or satisfy that need by
eating. If you have a need for recognition (a psychological need), you may try to
satisfy that need by working hard to please your boss. Content theories are useful
because they help managers understand what people will and will not value as
work rewards or need satisfiers.
Content theories offer ways to profile or analyse individuals to identify the
needs that motivate their behaviours.
Process theories seek to understand the thought processes that take place in the
minds of people and that act to motivate their behaviour.
The process theories strive to provide an understanding of the cognitive
processes that act to influence behaviour. Thus, a content theory may suggest that
security is an important need. A process theory may go further by suggesting how
and why a need for security could be linked to specific rewards and to the specific
actions that the worker may need to perform to achieve these rewards. Process
theories add a cognitive dimension by focusing on individuals’ beliefs about how
certain behaviours will lead to rewards such as money or promotion; that is, the
assumed connection between work activities and the satisfaction of needs.27
3 LEARNING OBJECTIVE
Content theories of motivation
Content theories
Maslow, Alderfer, McClelland and Herzberg proposed four of the better-known
content theories. Each of these content theories has made a major contribution to
our understanding of work motivation. Some have provided a basis for more
complex theorising in later years.
Maslow’s hierarchy of needs theory
Abraham Maslow’s hierarchy of needs theory (figure 3.2) identifies higherorder needs (self-actualisation and esteem) and lower-order needs (social,
safety and physiological requirements). Maslow’s formulation suggests a
prepotency of these needs; that is, some needs are assumed to be more important
(potent) than others, and must be satisfied before the other needs can serve as
motivators. Thus, the physiological needs must be satisfied before the safety
needs are activated, and the safety needs must be satisfied before the social
needs are activated, and so on.
Higher-order needs are esteem and self-actualisation needs in Maslow’s
hierarchy.
Lower-order needs are physiological, safety and social needs in Maslow’s
hierarchy.
FIGURE 3.2 • Maslow’s hierarchy of needs
The physiological needs are considered the most basic; they consist of needs for
such things as food, water and the like. Individuals try to satisfy these needs
before turning to needs at the safety level, which involve security, protection,
stability and so on. When these needs are active, people will look at their jobs in
terms of how well they satisfy these needs.
The social needs of a sense of belonging and a need for affiliation are activated
once the physiological and safety needs are satisfied. The higher-order needs
depicted in figure 3.2 consist of the esteem and self-actualisation needs — that
is, being all that one can be. Here, challenging work and recognition for good
performance assume centre stage.
Maslow: the research
Some research suggests that there is a tendency for higher-order needs to
increase in importance over lower-order needs as individuals move up the
managerial hierarchy.28 Other studies report that needs vary according to a
person’s career stage,29 the size of the organisation30 and even geographic
location.31 However, there is no consistent evidence that the satisfaction of a
need at one level will decrease its importance and increase the importance of
the next higher need.32 It is interesting to note that, despite being widely
adopted and referred to, Maslow retained concerns and criticisms about his
own theory. For example, in his later writing he appears to have questioned
the position of self-actualisation at the peak of the hierarchy. He moved
beyond this precept to a belief in self-transcendence as the highest level need
(where the individual transcends his or her identity and ego to higher level
aesthetic, mystical and emotional experiences).33 As the Counterpoint shows,
there may be many limitations to our knowledge of needs in terms of how they
apply to different people.
To what extent does Maslow’s theory apply only to Western culture? In many
developing nations the satisfaction of lower-order needs, such as basic
subsistence and survival needs, consumes the entire lifetimes of many millions
of individuals, with little opportunity to progress to higher-level need
satisfaction. But in societies where regular employment is available, basic
cultural values appear to play an important role in motivating workplace
behaviour. In those countries high in Hofstede’s uncertainty avoidance, such
as Japan or Greece, security tends to motivate most employees more strongly
than does self-actualisation. Workers in collectivist-oriented countries such as
Pakistan tend to emphasise social needs
Alderfer’s ERG theory
Clayton Alderfer has developed a modification of Maslow’s hierarchy with the
ERG theory (figure 3.3). ERG theory is more flexible than Maslow’s theory in
three basic respects.41 Firstly, the theory collapses Maslow’s five need
categories into three: existence needs relate to a person’s desire for
physiological and material wellbeing; relatedness needs represent the desire for
satisfying interpersonal relationships; and growth needs are about the desire for
continued personal growth and development. Secondly, while Maslow’s theory
argues that individuals progress up the hierarchy as a result of the satisfaction of
lower-order needs (a satisfaction–progression process), ERG theory includes a
‘frustration–regression’ principle, whereby an already satisfied lower-level need
can become activated when a higher-level need cannot be satisfied. Thus, if a
person is continually frustrated in their attempts to satisfy growth needs,
relatedness needs will again surface as key motivators. Thirdly, according to
Maslow, a person focuses on one need at a time. In contrast, ERG theory
contends that more than one need may be activated at the same time.
ERG theory categorises needs into existence, relatedness and growth needs.
Existence needs are about the desire for physiological and material wellbeing.
Relatedness needs are about the desire for satisfying interpersonal
relationships.
Growth needs are about the desire for continued personal growth and
development.
FIGURE 3.3 • Satisfaction–progression, frustration–
regression components of ERG theory
Source: Marc J Wallace, Jr, and Andrew D Szilagyi, Jr, Managing behavior in
organizations (Glenview, IL: Scott, Foresman, 1982).
ERG: the research
Research on ERG theory is relatively limited and includes disclaimers.42 One
of the earlier articles on this topic suggested interesting findings such as that
growth needs are higher for respondents with more highly educated parents
and women have lower strength of existence needs and higher strength of
relatedness needs than men.43 Another study from China argues that gender
makes some difference to motivational preferences using Alderfer’s approach
in a Chinese context.44 In regards to gender, males are more likely to be driven
by growth and existence needs. The same study also inferred complex links
between personality types and motivation using Alderfer’s and Maslow’s
theories.
Additional research is needed to shed more light on its validity, but the
supporting evidence on ERG theory is stronger than that for Maslow’s theory.
For now, the combined satisfaction–progression and frustration–regression
principles provide the manager with a more flexible approach to understanding
human needs than does Maslow’s strict hierarchy. Importantly, Alderfer’s
theory emphasises that performance constraints outside the control of the
individual (see figure 3.1), or innate disposition (such as lack of competence
or low intrinsic work motivation), may cause a decline in effort or negative
behaviour. Managers need to examine the workplace environment continually
to remove or reduce any organisational constraint that will restrict
opportunities for personal growth and development.
McClelland’s acquired needs theory
In the late 1940s the psychologist David McClelland distinguished three themes
or needs that he feels are important for understanding individual behaviour.
These needs are:
•
the need for achievement (nAch) — that is, the desire to undertake
something better or more efficiently, to solve problems or to master complex
tasks
•
the need for affiliation (nAff) — that is, the desire to establish and
maintain friendly and warm relations with others
•
the need for power (nPower) — that is, the desire to control others, to
influence their behaviour or to be responsible for others.
The need for achievement (nAch) is the desire to do something better, solve
problems or master complex tasks.
The need for affiliation (nAff) is the desire to establish and maintain friendly
and warm relations with others.
The need for power (nPower) is the desire to control others, influence their
behaviour and be responsible for others.
McClelland’s basic theory is that these three needs are acquired over time, as a
result of life experiences. People are motivated by these needs, which can be
associated with different work roles and preferences. The theory encourages
managers to learn how to identify the presence of nAch, nAff and nPower in
themselves and in others, and how to create work environments that are
responsive to the respective need profiles of different employees. One study
indicates that motivation has links to emotional intelligence. For example, those
with a higher perceived ability to regulate their emotions are more likely to be
motivated by achievement needs, while those who score highly in terms of being
able to appraise the emotions of others are more likely to be motivated by
affiliation needs.45
McClelland and his colleagues began experimenting with the Thematic
Apperception Test (TAT) as a way of measuring human needs.46 The TAT is a
projective technique that asks people to view pictures and write stories about
what they see. In one case, using projective techniques, McClelland tested three
executives on what they saw in a photograph of a man sitting down and looking
at family photos arranged on his work desk. In terms of nAch, McClelland
scored the stories given by the three executives as follows:47
•
person dreaming about family outing — nAch = + 1
•
person pondering new idea for gadget — nAch = + 2
•
person working on bridge-stress problem — nAch = + 4.
To provide a more complete profile, each picture would also be scored in terms
of nAff and nPower. Each executive’s profile would then be evaluated for its
motivational implications based on the three needs in combination.
One of the most important aspects of McClelland’s theorising is that he
challenges and rejects many other psychological theories that suggest the need
to achieve is a behaviour that is only acquired and developed during early
childhood. Alternatively, psychologists such as Erickson have supported a view
that the learning of achievement-motivated behaviour can only occur during
critical stages of a child’s development; if it is not obtained then it cannot be
easily learned or achieved during adult life.48 McClelland’s research contradicts
this viewpoint; he maintains that the need to achieve is a behaviour that an
individual can acquire through appropriate training in adulthood.
McClelland: the research
Research lends considerable insight into nAch in particular and includes some
interesting applications in developing nations. McClelland trained business
people in Kakinada, India, for example, to think, talk and act like high
achievers by having them write stories about achievement and participate in a
business game that encouraged achievement. The business people also met
with successful entrepreneurs and learned how to set challenging goals for
their own businesses. Over a two-year period following these activities, the
people from the Kakinada study engaged in activities that created twice as
many new jobs as those who did not receive training.49 Research on Chinese
entrepreneurship confirms McClelland’s view that the stronger a person’s
nAch, the greater likelihood that the person would be likely to start a
business.50
Other research also suggests that societal culture can make a difference in the
emphasis on nAch. Anglo-American countries such as Australia, the United
States, Canada and the United Kingdom (countries weak in uncertainty
avoidance and high in masculinity) tend to follow the high nAch pattern. In
contrast, strong uncertainty, high femininity countries, such as Portugal and
Chile, tend to follow a low nAch pattern. There are two especially relevant
managerial applications of McClelland’s theory. Firstly, the theory is
particularly useful when each need is linked with a set of work preferences
(table 3.1). Secondly, if these needs can truly be acquired, it may be possible
to acquaint people with the need profiles required to succeed in various types
of jobs. For example, McClelland found that the combination of a moderate to
high need for power and a lower need for affiliation enables people to be
effective managers at higher levels in organisations. Lower nAff allows the
manager to make difficult decisions without undue worry of being disliked.51
High nPower creates the willingness to have influence or impact on others,
though misuse of that power may result in sabotage by those mistreated or
prevented from rising to the top of the organisation.52
TABLE 3.1 • Work preferences of persons high in
need for achievement, affiliation and power
Individual needs
Woference
Example
High need for achievement
Individual responsibility; challenging but achievable goals; feedback
on performance
Field salesperson with a challenging quota and the opportunity to
earn individual bonus; entrepreneur
High need for affiliation
Interpersonal relationships; opportunities to communicate
Customer service representative; member of a work unit that is
subject to a group wage bonus plan
High need for power
Influence over other persons; attention; recognition
Formal position of supervisory responsibility; appointment as head
of special task force or committee
Herzberg’s two-factor theory
Frederick Herzberg’s research was based on in-depth interview techniques
learned during his training as a clinical psychologist. This interview approach —
called a ‘critical incident technique’ — has been the subject of considerable
debate among academics over many decades, but the findings of his theory have
been valuable. Herzberg began his research on motivation by asking workers to
comment on two statements:
1.
job.’
‘Tell me about a time when you felt exceptionally good about your
2.
‘Tell me about a time when you felt exceptionally bad about your
53
job.’
After analysing nearly 4000 responses to these statements (figure 3.4), Herzberg
and his associates developed the two-factor theory, also known as the
motivator–hygiene theory. They noticed that the factors identified as sources
of work dissatisfaction (subsequently called ‘dissatisfiers’ or ‘hygiene factors’)
were different from those identified as sources of satisfaction (subsequently
called ‘satisfiers’ or ‘motivator factors’).
The motivator–hygiene theory distinguishes between sources of work
dissatisfaction (hygiene factors) and satisfaction (motivators); it is also known
as the two-factor theory.
According to Herzberg’s two-factor theory, an individual employee could be
simultaneously both satisfied and dissatisfied because each of these two factors
has a different set of drivers and is recorded on a separate scale. According to
Herzberg’s measurement the two scales are:
FIGURE 3.4 • Herzberg’s two-factor theory: sources
of satisfaction and dissatisfaction as reported in 12
investigations
Source: Adapted & reprinted by permission of Harvard Business Review, Exhibit 1
from ‘One More time: How Do You Motivate Employees?’ by Frederick Herzberg, Sept–
Oct 87. © 2002 Harvard Business School Publishing Corporation; all rights reserved.
Effective managers have to achieve two distinct outcomes as now discussed: (1)
to maximise job satisfaction and (2) to simultaneously minimise job
dissatisfaction.
Satisfiers or motivator factors
To improve satisfaction, a manager must use motivator factors as shown on
the right side of figure 3.4. These factors are related to job content — that is,
what people do in their work. Adding these satisfiers or motivators to people’s
jobs is Herzberg’s link to performance. These cover such things as sense of
achievement, recognition and responsibility. According to Herzberg, when
these opportunities are absent, workers will not be satisfied and will not
perform well.
Motivators (motivator factors) are satisfiers that are associated with what
people do in their work.
Job content refers to what people do in their work.
Dissatisfiers or hygiene factors
Hygiene factors are associated with the job context; that is, they are factors
related to a person’s work setting. Improving working conditions (for
example, special offices and air conditioning) involves improving a hygiene,
or job context, factor. It will prevent people from being dissatisfied with their
work but will not make them satisfied. This can be an important distinction
from the motivator factors. Lambert55 argues that dissatisfiers are issues that
employees are unhappy about in their work but that are not necessarily the
causes of them leaving an organisation. Many organisations do put in effort to
address job context factors as the following examples show.
Hygiene (hygiene factors) are dissatisfiers that are associated with aspects
of a person’s work setting
Job context refers to a person’s work setting.
TABLE 3.2 • Sample hygiene factors found in work
settings
Hygiene factors
Examples
Organisational policies, procedures
Attendance rules
Holiday schedules
Grievance procedures
Performance appraisal methods
Working conditions
Noise levels
Safety
Personal comfort
Size of work area
Interpersonal relationships
Coworker relations
Customer relations
Relationship with boss
Quality of supervision
Technical competence of boss
Base salary
Hourly wage rate or salary
As table 3.2 shows, salary or money is included as a hygiene factor. This is
perhaps surprising and is discussed further in the next section.
Money: motivator or hygiene factor
Herzberg found that low salary makes people dissatisfied, but that paying
people more does not satisfy or motivate them. It is important to bear in mind
that this conclusion derives from data that found salary had considerable
cross-loading across both motivators and hygiene factors (see the bars that
cross the central vertical line at zero percentage frequency in figure 3.4).
Because most of the variance could be explained within the hygiene or job
context group of factors, Herzberg concluded that money was not a motivator.
New ideas are constantly being explored to link money and motivation. Direct
employee involvement in the financial future of the organisation is being
widely encouraged through Employee Share Ownership Programs (ESOPs).58
The extent to which these ESOPs are provided varies around the world59 and
may depend on factors such as favourable taxation. In Australia,
approximately 6 per cent of all employees have employee shares.60 Earlier
statistics suggested that differences in share ownership exist based on criteria
such as state, industry and occupation, working arrangements, and gender. For
example, managers and administrators have a higher proportion of employee
shares than the total (11.9 per cent) and full-time employees have more shares
than part-time employees (7.0 per cent compared to 3.4 per cent).61 Schemes
exist in organisations such as Wesfarmers, Foster’s and Eyecare Partners.62
It is difficult to explain the impact of such schemes on work motivation within
Herzberg’s framework, because these schemes have an impact on Herzberg’s
job content factors (such as responsibility and accountability) but also have a
direct impact on money and its link to work motivation and performance. The
link between money, ESOPs and work motivation remains complex and
inconclusive to date.
Some Australian studies have found that the link between money and
motivation also depends on other key factors such as the work status of the
employee. One study found that casual workers employed on a part-time basis
placed a higher value on job security than on monetary reward. The
implications of this finding are far reaching because the growth in the parttime workforce in Australia and New Zealand is far greater than the growth of
the full-time workforce.
Herzberg: the research and practical implications
Organisational behaviour scholars debate the merits of the two-factor theory.63
While Herzberg’s continuing research and that of his followers support the
theory, some researchers have used different methods and are unable to
confirm the theory. It is therefore criticised as being method-bound — that is,
supportable only by applying Herzberg’s original method. This is a serious
criticism because the scientific approach requires that theories be verifiable
when different research methods are used. The critical incident method used
by Herzberg may have resulted in respondents generally associating good
times in their jobs with things under their personal control, or for which they
could give themselves credit. Bad times, on the other hand, were more often
associated with factors in the environment under the control of management.
Herzberg’s theory has also met with other criticisms.
1.
The original sample of scientists and engineers probably is not
representative of the working population.
2.
The theory does not account for individual differences (for example,
the similar impact of pay regardless of gender, age and other important
differences).
3.
The theory does not clearly define the relationship between satisfaction
and motivation.64
Such criticisms may contribute to the mixed findings from research conducted
outside the United States. In New Zealand, for example, supervision and
interpersonal relationships have been found to contribute significantly to
satisfaction and not merely towards reducing dissatisfaction. And certain
hygiene factors have been cited more frequently as satisfiers in Panama, Latin
America and a number of countries other than the United States. In contrast,
earlier evidence from countries such as Finland tends to confirm US results.65
A study of a Norwegian company, Telenor, suggested the physical
environment (incorporating the aspects of art, design and architecture) could
be a motivator — since the pleasantness of the physical environment might
impact on the mood, the wellbeing and the inspiration of workers.66 This
finding appears to work against the idea that ‘working conditions’ constitute
hygiene factors. The same Norwegian study also indicated that respondents to
their survey seemed to find it hard to distinguish between motivation and
satisfaction, presumably accepting the two as related. In view of globalising
workforces, these distinctions may have significant importance for managers
endeavouring to motivate their employees.
However, Herzberg’s theory does have value. For example, it may help to
identify why a focus on job environment factors (such as special office
fixtures, piped-in music, comfortable lounges for breaks and high base
salaries) often do not motivate. It also highlights the value of job design and
motivation as discussed in chapter 5.
4 LEARNING OBJECTIVE
Process theories of motivation
Process theories
As useful as they are, content theories still emphasise the ‘what’ aspect of
motivation — that is, ‘If I have a security deficiency, I try to reduce or remove it’.
They do not emphasise the thought processes concerning ‘why’ and ‘how’ people
choose one action over another in the workplace. For this, we must turn to process
motivation theories. Two well-known process theories are equity theory and
expectancy theory.
Equity theory
Equity theory is based on the phenomenon of social comparison and is best
known through the writing of J Stacy Adams.67 Adams argues that when people
gauge the fairness of their work outcomes compared with those of others, felt
inequity is a motivating state of mind. That is, when people perceive inequity in
their work, they experience a state of cognitive dissonance, and they will be
aroused to remove the discomfort and to restore a sense of felt equity to the
situation. Inequities exist whenever people feel that the rewards or inducements
they receive for their work inputs or contributions are unequal to the rewards
other people appear to have received for their inputs. For the individual, the
equity comparison or thought process that determines such feeling is:
Equity theory presents the idea that motivation is affected when people feel
that work outcomes are unfair or inequitable, due to social comparison in the
workplace.
Resolving felt inequities
Felt negative inequity exists when an individual feels that they have received
relatively less than others have in proportion to work inputs. Felt positive
inequity exists when an individual feels that they have received relatively
more than others have.
Felt negative inequity exists when individuals feel they have received
relatively less than others have in proportion to work inputs.
Felt positive inequity exists when individuals feel they have received
relatively more than others have.
Both felt negative and felt positive inequity are motivating states. When either
exists, the individual will likely engage in one or more of the following
behaviours to restore a sense of equity:
1.
change work inputs (for example, reduce performance efforts)
2.
change the outcomes (rewards) received (for example, ask for a raise)
3.
leave the situation (for example, quit)
4.
change the comparison points (for example, compare self with a
different coworker)
5.
psychologically distort the comparisons (for example, rationalise that
the inequity is only temporary and will be resolved in the future)
6.
act to change the inputs or outputs of the comparison person (for
example, get a coworker to accept more work).
Equity theory predicts that people who feel either under-rewarded or overrewarded for their work will act to restore a sense of equity.
Adams’s equity theory: the research
The research of Adams and others, accomplished largely in laboratory
settings, lends tentative support to this prediction.68 The research indicates that
people who feel overpaid (felt positive inequity) increase the quantity or
quality of their work, while those who feel underpaid (felt negative inequity)
decrease the quantity or quality of their work. The research is most conclusive
about felt negative inequity. It appears that people are less comfortable when
they are under-rewarded than when they are over-rewarded.
Managing the equity dynamic
Figure 3.5 shows that the equity comparison intervenes between a manager’s
allocation of rewards and their impact on the work behaviour of staff. Feelings
of inequity are determined solely by the individual’s interpretation of the
situation.
FIGURE 3.5 • The equity comparison as an
intervening variable in the rewards, satisfaction and
performance relationship
Thus, it is incorrect to assume all employees in a work unit will view their
annual pay rise as fair. It is not how a manager feels about the allocation of
rewards that counts; it is how the recipients perceive the rewards that will
determine the motivational outcomes of the equity dynamic. Managing the
equity dynamic therefore becomes quite important to the manager, who strives
to maintain healthy psychological contracts — that is, fairly balanced
inducements and contributions — among staff.
Rewards that are received with feelings of equity can foster job satisfaction
and performance. In contrast, rewards that are received with feelings of
negative inequity can damage these key work results. The burden lies with the
manager to take control of the situation and make sure that any negative
consequences of the equity comparisons are avoided, or at least minimised,
when rewards are allocated. ‘The effective manager 3.1’ below shows how
you can deal with these concerns.
THEEffectiveManager 3.1: Steps for
managing the equity process
• Recognise that an employee is likely to make an equity comparison
whenever especially visible rewards, such as pay, promotions and so on,
are being allocated.
•
Anticipate felt negative inequities.
• Communicate to each individual your evaluation of the reward, an
appraisal of the performance on which it is based, and the comparison
points you consider to be appropriate.
Managing the equity dynamic across cultures can become very complex.
Western expatriates working in multinational corporations typically adopt an
individual frame of reference when making equity comparisons. For local
employees in Eastern cultures, the value placed on rewards and the weighting
attributed to a specific outcome may vary considerably from Western norms.
The group, not the individual, is the major point of reference for such equity
comparisons and if a multinational corporation tries to motivate by offering
individualised rewards, employees may not respond as expected.69
Expectancy theory
Victor Vroom’s expectancy theory77 seeks to predict or explain the task-related
effort expended by a person. The theory’s central question is: ‘What determines
the willingness of an individual to exert personal effort to work at tasks that
contribute to the performance of the work unit and the organisation?’
Figure 3.6 illustrates the managerial foundations of expectancy theory.
Individuals are viewed as making conscious decisions to allocate their behaviour
towards work efforts and to serve self-interests. The three key terms in the
theory are as follows:
1.
Expectancy: the probability that the individual assigns to work effort
being followed by a given level of achieved task performance. Expectancy
would equal ‘0’ if the person felt it was impossible to achieve the given
performance level; it would equal ‘1’ if a person was 100 per cent certain that
the performance could be achieved.
Expectancy is the probability that the individual assigns to work effort
being followed by a given level of achieved task performance.
2.
Instrumentality: the probability that the individual assigns to a given
level of achieved task performance leading to various work outcomes that are
rewarding for them. Instrumentality also varies from ‘1’ (meaning the reward
outcome is 100 per cent certain to follow performance) to ‘0’ (indicating that
there is no chance that performance will lead to the reward outcome). (Strictly
speaking, Vroom’s treatment of instrumentality would allow it to vary from
−1 to +1. We use the probability definition here and the 0 to 1 range for
pedagogical purposes; it is consistent with the basic instrumentality notion.)
Instrumentality is the probability that the individual assigns to a level of
achieved task performance leading to various work outcomes.
3.
Valence: the value that the individual attaches to various work reward
outcomes. Valences form a scale from −1 (very undesirable outcome) to +1
(very desirable outcome).
Valence represents the values that the individual attaches to various work
outcomes.
Expectancy theory argues that work motivation is determined by individual
beliefs about effort–performance relationships and the desirability of various
work outcomes from different performance levels. Simply, the theory is based
on the logic that people will do what they can do when they want to.78 If you
want a promotion and see that high performance can lead to that promotion, and
that if you work hard you can achieve high performance, you will be motivated
to work hard. Estee Lauder, a leading skin care, fragrance and hair care
company, is an example of a business where promotion within is well
entrenched, thereby increasing employee belief that performance may lead to
promotion.
Expectancy theory argues that work motivation is determined by individual
beliefs about effort–performance relationships and the desirability of various
work outcomes from different performance levels.
Multiplier effects and multiple outcomes
Vroom posits that motivation (M), expectancy (E), instrumentality (I) and
valence (V) are related to one another by the equation: M = E × I × V.
FIGURE 3.6 • Expectancy theory terms in a
managerial perspective
This relationship means that the motivational appeal of a given work path is
sharply reduced whenever any one or more of these factors approaches the
value of zero. Conversely, for a given reward to have a high and positive
motivational impact as a work outcome, the expectancy, instrumentality and
valence associated with the reward must all be high and positive.
Suppose a manager is wondering whether the prospect of earning a merit pay
rise will be motivational to a subordinate. Expectancy theory predicts that
motivation to work hard to earn the merit pay will be low if the person:
1.
feels they cannot achieve the necessary performance level (expectancy)
2.
is not confident a high level of task performance will result in a high
merit pay rise (instrumentality)
3.
places little value (valence) on a merit pay increase
4.
experiences any combination of these.
Expectancy theory is able to accommodate multiple work outcomes in
predicting motivation. As shown in figure 3.7, the outcome of a merit pay
increase may not be the only one affecting the individual’s decision to work
hard. Relationships with coworkers may also be important, and they may be
undermined if the individual stands out from the group as a high performer.
Although merit pay is both highly valued and considered accessible to the
individual, its motivational power can be cancelled out by the negative effects
of high performance on the individual’s social relationships with coworkers.
One of the advantages of expectancy theory is its ability to help managers
account for such multiple outcomes when trying to determine the motivational
value of various work rewards to individual employees.
FIGURE 3.7 • An example of individual thought
processes, as viewed by expectancy theory
Vroom: managerial implications
The managerial implications of Vroom’s expectancy theory are summarised in
table 3.3. Expectancy logic argues that a manager must try to understand
individual thought processes, then actively intervene in the work situation to
influence them. This includes trying to maximise work expectancies,
instrumentalities and valences that support the organisation’s production
purposes. In other words, a manager should strive to create a work setting in
which the individual will also value work contributions serving the
organisation’s needs as paths towards desired personal outcomes or rewards.
TABLE 3.3 • Managerial implications of expectancy
theoryrm
Expectancy theory might also be considered in the context of uncertainty in
the work-place. It also suggests that managers need to understand the
individual expectancy and instrumentality links for all workers. Although
individuals will always be unique in their motivation, there may be new
cohorts of workers in the organisation (such as those staying past retirement
age and the Gen X and Gen Y employees) about whom generalisations may be
made.
Vroom: the research
There is a great deal of research on expectancy theory, and good review
articles are available.80 Although the theory has received substantial support,
specific details (such as the operation of the multiplier effect) remain subject
to question. Rather than charging that the underlying theory is inadequate,
researchers indicate that problems of method and measurement may cause
their inability to generate more confirming data. Thus, while awaiting the
results of more sophisticated research, experts seem to agree that expectancy
theory is a useful insight into work motivation.
One of the more popular modifications of Vroom’s original version of the
theory distinguishes between extrinsic and intrinsic rewards as two separate
types of possible work outcomes.81 Extrinsic rewards are positively valued
work outcomes that the individual receives from some other person in the
work setting. An example is pay. Workers typically do not pay themselves
directly; some representative of the organisation administers the reward. In
contrast, intrinsic rewards are positively valued work outcomes that the
individual receives directly as a result of task performance; they do not require
the participation of another person. A feeling of achievement after
accomplishing a particularly challenging task is one example. The distinction
between extrinsic and intrinsic rewards is important because each type
demands separate attention from a manager seeking to use rewards to increase
motivation. We discuss these differences more thoroughly in chapters 4 and 5.
Extrinsic rewards are positively valued work outcomes that the individual
receives from some other person in the work setting.
Intrinsic rewards are positively valued work outcomes that the individual
receives directly as a result of task performance.
5 LEARNING OBJECTIVE
Integrating content and process motivation theories
Integrating content and process motivation theories
Each of the theories presented in this chapter is potentially useful for the manager.
Although the equity and expectancy theories have special strengths, current
thinking argues for a combined approach that points out where and when various
motivation theories work best.82 Thus, before leaving this discussion, we should
pull the content and process theories together into one integrated model of
individual performance and satisfaction.
First, the various content theories have a common theme, as shown in figure 3.8.
Content theorists disagree somewhat as to the exact nature of human needs, but
they do agree that:
The manager’s job is to create a work environment that responds positively to
individual needs. Poor performance, undesirable behaviours and/or decreased
satisfaction can be partly explained in terms of ‘blocked’ needs, or needs that are
not satisfied on the job. The motivational value of rewards (intrinsic and extrinsic)
can also be analysed in terms of ‘activated’ needs to which a given reward either
does or does not respond. Ultimately, managers must understand that individuals
have different needs and place different importance on different needs. Managers
must also know what to offer individuals to respond to their needs and to create
work settings that give people the opportunity to satisfy their needs through their
contributions to task, work unit and organisational performance.
FIGURE 3.8 •
theories
Comparison of content motivation
Figure 3.9 is a model that goes further to integrate content and process theories.
The model, as proposed by Lyman W Porter and Edward E Lawler, is an
extension of Vroom’s original expectancy theory.83 The figure is based on the
foundation of the individual performance equation (see chapter 2). Individual
attributes and work effort, and the manager’s ability to create a work setting that
positively responds to individual needs and goals all affect performance. Whether
a work setting can satisfy needs depends on the availability of rewards (extrinsic
and intrinsic). The content theories enter the model as the manager’s guide to
understanding individual attributes and identifying the needs that give
motivational value to the various work rewards allocated to employees. Research
has linked individual attributes such as personality with motivation in terms of
achievement factors and intrinsic and extrinsic motivation. For example, highly
conscientiousness employees are likely to work well and achieve in environments
high in intrinsic motivation opportunities.84 Managers are also interested in
promoting high levels of individual satisfaction as a part of their concern for
human resource maintenance. You may recall that we concluded our chapter 2
review of the satisfaction–performance controversy by noting that when rewards
are allocated on the basis of past performance (that is, when rewards are
performance contingent), they can cause both future performance and satisfaction.
Motivation can also occur when job satisfactions result from rewards that are felt
to be equitably allocated. When felt negative inequity results, satisfaction will be
low and motivation will be reduced. Thus, the integrated model includes a key
role for equity theory and recognises job performance and satisfaction as separate,
but potentially interdependent, work results.85
FIGURE 3.9 • Predicting individual work
performance and satisfaction: an integrated model
Other perspectives on motivation
In recent years more work has developed to explain other dimensions that
contribute to our understanding of motivation. These extend beyond what is
traditionally explained by content and process theories. A complex interplay of
factors can affect motivation. Some particular ideas collated by Humphreys
include the following:
• the follower’s self-concept, be influenced by transformational leaders (see
chapter 11) who are able to increase follower motivation by maintaining and
enhancing their self-concept
• through maturity and experience, individuals experience motivational
development — they are likely to engage in behaviours that relate to status,
extrinsic rewards and personal fulfilment
• there is a relationship between follower self-efficacy and performance with
self-efficacy contributing to the motivation aspect of the performance equation
• altering task complexity can affect one’s work identity and self-image both
negatively and positively and be a moderating variable in motivation
• leaders have responsibilities to establish and develop a relationship for goal
success and individual growth with the subordinate so they are jointly
responsible to each other
• there must be congruency between a leader’s communication and a follower’s
values, and/or between the leader’s focus and the follower’s identity and values.
Leader-follower congruency may affect leader’s attempt to enhance a follower’s
self-concept
• some work indicates that different personalities can be explained as different
temperaments. Temperament can impact upon how individuals are motivated,
their likely satisfaction and goal-directed behaviour.86
6 LEARNING OBJECTIVE
Other perspectives on motivation
Collectively, such factors can contribute to a congruent temperament model which
suggests that motivation is enhanced when the leader can understand the
employee, and respond appropriately with behaviours that are congruent with the
follower’s temperament and perspective.
There has also been quite a bit of work done researching why people often offer
their services voluntarily or engage in altruistic deeds without having any
anticipated rewards (intrinsic or extrinsic). Personal value systems and the idea of
self-concept, underlie this approach. Self-concept is the concept that individuals
have of themselves as physical, social and spiritual or moral beings.
Self-concept is the concept that individuals have of themselves as physical,
social and spiritual or moral beings.
The self-concept approach comes from personality theory. It focuses on using the
concept of the self as an underlying force that motivates behaviour, that gives it
direction and energy and sustains it. Self-concept is derived from many influences
including family, social identity and reference groups, education and experience.
Generally speaking, these aspects of personality are a guide to our behaviour and
help us to decide what to do in specific situations. So, for example, a young
person may choose to study medicine or dentistry at university, or to enter the
family trade, because that is what was always expected of them and has therefore
become an important part of their identity. Rewards such as money and status may
be secondary considerations. Many acts are done out of a sense of responsibility,
integrity or even humour, which relate to the self-concept aspect of personality.87
This sort of approach would help to explain the nurse who waits with the relatives
of a critically injured patient for hours after his shift is completed; or the person
who works the shift of a friend who is studying for exams.
In contrast to a focus on needs or cognitive thought processes to explain
motivation, the self-concept approach relies on other ways of
understanding motivation to explain the full range of motivated behaviour. People
may also draw on the values they hold, and the way that these values are a guide
to behaviours that seem right or appropriate for them. For example, people
internalise values that are espoused by the professional group (or the organisation)
to which they belong. Behaviours consistent with such values might include
saving lives and property at considerable personal risk, exposing unethical
financial practices despite censure from management, or facing personal hardship.
A study by Camilleri found that there might be an altruistic motivation
relationship between some public servants’ commitment to serving the public
interest and their sense of compassion. The relationship was evident for married
public servants with children and bachelors but not for those married without
children, or without children at home.88 Having identified content and process
theories and an integrated model of these two approaches, as well as considering
the ideas of self-efficacy, self-concept, personal values and temperament in
motivation, it is worth reflecting on how managers may be able to understand and
implement these concepts in the workplace.
Summary
Motivating and empowering today’s workforce
1 LEARNING OBJECTIVE
In the contemporary world, a key challenge is to motivate and empower workers
towards productive performance. With an ageing population, when there are
labour shortages and with mobile workforces, organisations need to understand
how to motivate and empower employees in order to attract and retain them and
to enhance performance.
Difference between content and process
motivation theories
2 LEARNING OBJECTIVE
There are two main types of motivational theories — content and process.
Content theories examine the needs that individuals have. Their efforts to satisfy
those needs are what drive their behaviour. Process theories examine the thought
processes that people have in relation to motivating their behaviour.
Content theories of motivation
3 LEARNING OBJECTIVE
The content theories of Maslow, Alderfer, McClelland and Herzberg emphasise
needs or motives. They are often criticised for being culturally biased, and
caution should be exercised when applying these theories in non-Western
cultures.
Maslow’s hierarchy of needs theory arranges human needs into a five-step
hierarchy: physiological, safety, social (the three lower-order needs), esteem and
self-actualisation (the two higher-order needs). Satisfaction of any need
activates the need at the next higher level, and people are presumed to move step
by step up the hierarchy. Alderfer’s ERG theory has modified this theory by
collapsing the five needs into three: existence, relatedness and growth. Alderfer
also allows for more than one need to be activated at a time and for a
frustration–regression response. McClelland’s acquired needs theory focuses on
the needs for achievement (nAch), affiliation (nAff) and power (nPower). The
theory argues that these needs can be developed through experience and
training. Persons high in nAch prefer jobs with individual responsibility,
performance feedback and moderately challenging goals. Successful executives
typically have a high nPower that is greater than their nAff. Herzberg’s twofactor theory treats job satisfaction and job dissatisfaction as two separate issues.
Satisfiers, or motivator factors such as achievement, responsibility and
recognition, are associated with job content. An improvement in job content is
expected to increase satisfaction and motivation to perform well. In contrast,
dissatisfiers, or hygiene factors such as working conditions, relations with
coworkers and salary, are associated with the job context. Improving job context
does not lead to more satisfaction but is expected to reduce dissatisfaction.
Process theories of motivation
4 LEARNING OBJECTIVE
Process theories emphasise the thought processes concerning how and why
people choose one action over another in the workplace. Process theories focus
on understanding the cognitive processes that act to influence behaviour.
Although process theories can be very useful in explaining work motivation in
cross-cultural settings, the values that drive such theories may vary substantially
across cultures and the outcomes may differ considerably.
Equity theory points out that people compare their rewards (and inputs) with
those of others. The individual is then motivated to engage in behaviour to
correct any perceived inequity. At the extreme, feelings of inequity may lead to
reduced performance or job turnover. Expectancy theory argues that work
motivation is determined by an individual’s beliefs concerning effort–
performance relationships (expectancy), work–outcome relationships
(instrumentality) and the desirability of various work outcomes (valence).
Managers, therefore, must build positive expectancies, demonstrate
performance-reward instrumentalities, and use rewards with high positive
valences in their motivational strategies.
Integrating content and process motivation
theories
5 LEARNING OBJECTIVE
The content theories can be compared, with some overlap identified. An
integrated model of motivation builds from the individual performance equation
and combines the content and process theories to show how well-managed
rewards can lead to high levels of both individual performance and satisfaction.
Other perspectives on motivation
6 LEARNING OBJECTIVE
Other theories go beyond content and process theories to draw links with
personality theory, leadership, individual values, self-concept and self-efficacy.
Such theories tend to place a lot of emphasis on leader responsibility for
motivation and on the complexity of motivation. Theories that focus on selfconcept and personal values seek to describe motivation as a desire that is
derived from a person’s self-concept. This self-concept guides individual
behaviour.
(Wood. Organisational Behaviour: Core Concepts and Applications, 2nd Edition.
John Wiley & Sons Australia, 10.10).
Preparation
Complete the following ‘Motivators or hygienes’ assessment before coming
to class.
Most workers want job satisfaction. The following 12 job factors may
contribute to job satisfaction. Rate each according to how important it is to
you. Place a number on a scale of 1 to 5 on the line before each factor.
______ 1. An interesting job
______ 2. A good boss
______ 3. Recognition and appreciation for the work I do
______ 4. The opportunity for advancement
______ 5. A satisfying personal life
______ 6. A prestigious or status job
______ 7. Job responsibility
______ 8. Good working conditions (nice office)
______ 9. Sensible company rules, regulations, procedures and policies
______ 10.
The opportunity to grow through learning new things
______ 11.
A job I can do well and at which I can succeed
______ 12.
Job security
To determine if hygienes or motivators are important to you, place your
scores below.