CHAPTER 23: MOTIVATION, MORALE AND PRODUCTIVITY
23.1 Introduction
Motivation as the force which drives a person to take a specific action.
-For example, if the room temperature drops significantly, a force will drive you to look for clothes
and put them on until you feel warm. Some psychologists regard the force as a need. People have
various types of needs which cause people to do something to satisfy them.
Maslow's Hierarchy of Needs Theory
Essence of the theory
Abraham H. Maslow believed that an individual has five types of needs arranged in an ascending
order. According to Maslow, an individual will take action to satisfy the first level needs until the
needs are satisfied. The needs at this time are the motivator. Once the needs are satisfied, they are
not needs anymore. Then the needs at the next higher level emerge. These needs now become the
motivators. He will then try to satisfy those needs at this higher level.
At the most basic level are the physiological needs necessary to survival. Salaries and wages
given to employees should be sufficient to feed and shelter them and their families as well.
The next level is Security needs. The working environment should be comfortable and free from
any potential danger and industrial accidents. A certain degree of job security should also be
provided.
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Social needs are thus focused. In addition to being liked by their friends and loved by their family
members, employees should have friendly relationships with other employees. Managers should
make them feel that they are an integral part of the organization.
-Social gatherings, a relaxed and open atmosphere, set up informal groups, etc.
Esteem needs is the needs for status and recognition. Managers can satisfy these needs of
employees
by giving performance recognition, promotion opportunities
and personal
encouragement. Some organizations may even let subordinates participate in the decision-making
process.
Self-actualization (self-fulfillment) is the opportunities for realizing one’s potential and creativity.
Managers may find it very difficult to satisfy employees' needs at this level because individual
differences are greatest at this level. Realizing this difference, managers should give more
responsibility, challenging work and autonomy to employees.
Some implications

People have five types of needs arranged in a hierarchy.

Once the needs in the preceding level of the hierarchy are satisfied, the needs at the next level
of the hierarchy emerge.

The basic needs are much easier to satisfy than the higher level needs.

A satisfied need is not a motivator. Only those emerged needs that have not been satisfied can
influence behavior.

Good morale and high productivity, can be expected from the people whose needs at various
levels have been adequately satisfied.
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Herzberg’s Dual-factor Theory
Herzberg identified two distinct types of factors.
Maintenance factors or hygiene factors. Herzberg found that if these factors are absent or
inadequate, workers easily feel dissatisfaction. The presence of these factors can therefore relieve
the workers' dissatisfaction.
Maintenance factors

Generous remuneration packages

Comprehensive fringe benefits

Comfortable working environment

Harmonic social environment

Job security

Technical support
Motivational factors

Promotion opportunities

Recognition of performance

Equitable rewards for performance

Sense of achievement of the job

Autonomy with the job
Motivational factors can create satisfaction in workers. If both maintenance factors and
motivational factors exist in the workplace, not only will the dissatisfaction of the workers be
relieved, they will be satisfied as well. Consequently, good morale and high productivity will
result.
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McGregor's Theory X and Theory Y
Psychologist Douglas McGregor identified that there are two opposing sets of assumptions that
managers have on their subordinates. The traditional view, known as Theory X, holds the
following assumptions:
1. Work is distasteful.
2. Most people are lazy.
3. They have an inherent dislike of work and will avoid it if possible.
4. They work for money and other benefits.
5. They resist change.
6. They will avoid responsibilities and seek formal direction.
7. They place security above all other factors and will display little ambition.
8. Because of these characteristics, they must be coerced and threatened with disciplinary action.
Autocratic leaders use mostly financial rewards to motivate the workers and maintain close
supervision of their behavior by forming detailed disciplinary regulations.
McGregor suggested that there is another set of assumptions that managers have on their
subordinates. It is called Theory Y. it involves the following assumptions:
1. They are energetic.
2. They are intelligent.
3. Work is not distasteful and is as natural as rest or play.
4. People want to contribute to business growth and change.
5. People are ambitious and willing to accept and seek responsibility.
6. They work for not only money, but also a sense of achievement and recognition.
7. They will exercise self-direction and self-control.
8. Because of these characteristics, they should be given the chance to participate in making
decisions with their superiors.
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Participative leaders give them the opportunity, responsibility and authority to do a good job and
provide them assistance and advice.
*Managers should identify the characteristics of the workers. Their leadership style should differ
for different types of workers.
Expectancy Theory
Expectancy theory proposes that the behavior of people is affected by not only their needs, but
also their expectations of their abilities and the rewards. Thus a person will make a hard effort to
accomplish a task if:
1. he clearly knows that he has adequate ability to perform the task, and
2. the rewards are commensurate with his effort, and
3. the rewards have a value to him.
-Expectancy theory explains the workers' attitudes towards their jobs. For example, incentives may
easily motivate some workers to work hard but have hardly any impact on other workers. It may be
one or a combination of reasons that account for the differences in their attitudes.
-As with the other motivational theories, expectancy theory also gives many clear implications for
how managers should motivate their subordinates. These include:
Essential variables and relationships
1. Attractiveness: The importance that the individual places on the potential outcome or reward
that cab be achieved on the job. This considers the unsatisfied needs of the individual.
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2. Performance-reward linkage: The degree to which the individual believes that performing at
a particular level will lead to the attainment of a desired outcome.
3. Effort-performance linkage: The probability perceived by individual that exerting a given
amount of effort will lead to performance.
Some implications

assign tasks according to subordinates' abilities

make the performance standards attainable

give encouragement to subordinates

design rewards suitable for the subordinates

link the rewards to the subordinates' performance
Equity Theory
-A motivational theory that explains the relationship of people’s behavior and their perceptions of
fairness in treatment and rewards.
1. Perceived inequities by people will lead to changes in their behavior. When workers perceive
that they are comparatively paid less than other colleagues, a state of tension develops and
2. Make less effort to compensate for the lower pay or require low performers who are receiving
the same pay to increase their efforts.
3. Acquire more through complaints, legal actions or by theft.
4. Quit their jobs since they think the inequities will never be resolved.
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Regardless of the responses of workers, inequities in the workplace have an adverse impact.
1. First, if workers perceive that fairness does not exist when the managers are deciding the
rewards or treatment given to them, they will no longer have any confidence and trust in the
managers. It will undoubtedly hurt the superior and subordinate relationship.
2. Second, inequities can upset workers, leading to poor morale among them.
3. Third, the reduced performance to compensate for the inequities will hurt productivity.
4. Finally, pessimistic behavior, such as quitting the organization, and inappropriate behavior,
such as theft, will cause tangible and intangible losses to the organization.
23.2 FINANCIAL VS. NON-FINANCIAL INCENTIVES
Financial incentives include the pay that employees receive in the form of money and fringe
benefits. Financial incentives consist of salaries, wages, bonuses and commissions. Employees can
rely on their incomes to feed and shelter themselves and their families.
Non-financial incentives reward employees not in the form of money but in other forms that can
save the employees' money and relieve their dissatisfaction or make them feel satisfied.
Non-financial Motivational Measures
Job enrichment
Job enrichment refers to redesigning a job by increasing the authority, responsibility and
autonomy of the job. Under job enrichment programs, employees will be given more authority to
plan their activities and to decide how to accomplish the work. The idea of job enrichment is to
make the jobs more satisfying and meaningful.
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Job enlargement refers to redesigning a job by adding more tasks at a similar level to the job. The
idea is to provide more variety for workers so as to prevent them from feeling bored.
In job rotation, the workers are shifted routinely from job to job so that they can be motivated by
being exposed to new challenges. It can increase the workers' variety of skills.
-Job enlargement and job rotation give workers the opportunity to find the job they feel interested
in. Furthermore, job enrichment also has a strong motivational effect on workers since it increases
the depth of the job, making it easier for workers to realize their potential. All these three job
designs can satisfy workers' higher level needs and can also be regarded as motivational factors.
*If the rewards do not increase in line with the increase in job depth and job scope, many workers
may resist these kinds of job designs.
Flexible work schedules
Flextime is a flexible work-scheduling plan that permits employees to arrange their own arrival and
departure times. It is a motivational measure which gives employees flexibility to allocate their
time spent between the job and their personal matters.
-The flexible working hours arrangement is built on Herzberg's idea of motivational factors. It
gives employees flexibility and autonomy in doing their jobs.
Participative management
-Participation in making decisions gives workers more responsibility and authority. It can also
enhance understanding between managers and workers. When implementing the decisions,
managers will also face less resistance and more support. Consequently, better morale and higher
productivity can be expected from the workers.
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Job security can satisfy employees' physiological needs and safety needs. It is a very strong
maintenance factor. Psychologists state that if organizations do not provide their employees with a
reasonable sense of job security, it will certainly cause dissatisfaction to the employees. Job
security is particularly important during a recession when many people are unemployed.
Competent supervision
-All workers need supervision so that they can successfully accomplish the tasks assigned. When
they have difficulty in carrying out their duties, their superiors will give them assistance, advice
and help. Competent supervision is a maintenance factor. It can also satisfy workers' safety needs.
-One important thing regarding supervision is that it should not be too close. Otherwise, it will limit
workers' creativity. It will also upset their confidence and can therefore be demoralizing.
Safe and comfortable working environment
-A safe and comfortable working environment can minimize the chance of getting sick for the
people working there. It can also enable them to concentrate on their work. Although it does not
contribute much to their morale, it can facilitate a smooth and efficient operation. It is a
maintenance factor and can satisfy their safety needs.
-The social environment in the workplace is also important. It includes the relationships among coworkers and the superior and subordinate relationship. Management should foster a friendly and
supportive environment in the workplace which can satisfy people's social needs.
Opportunity for recognition
-The achievements of subordinates need to be recognized by their managers. The subordinates will
know that their contributions to the organization are realized and appreciated by their managers.
They will then continue to make the effort to work hard. Herzberg regarded it as a very strong
motivational factor which can raise the morale people. Maslow also stated that recognizing people's
achievements could satisfy their esteem needs.
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Training and development
-Training and development programs can satisfy their safety needs. If the training and development
programs can help the employees realize their potential, they can serve as a motivational factor.
Effective communication
-Through effective vertical communication, managers can be aware of their subordinates'
performance and grievances and can give feedback to them. For outstanding performance,
appropriate forms of rewards can be given. Assistance and advice can be provided if the
subordinates have difficulty in carrying out their duties. Effective vertical communication shows
managers' sincerity in the relationships with their subordinates. It can therefore satisfy both the
lower level needs and the higher level needs.
Promotion opportunity
-Promotion is the most effective motivational measure for employees. It makes the employees feel
that their performance and contributions are recognized by management and there are rewards, such
as higher pay, better status, etc. It gives the employees the feeling of achievement. Since authority,
responsibility and autonomy increase, a promotion can therefore satisfy the employees' esteem
needs and self- actualization needs. It is also a strong motivational factor.
-Promotion opportunities may not have a strong motivational effect on employees if they feel that
the increased benefits are not commensurate with the increased workload and pressure. As there are
limited senior posts in an organization, not all of the junior employees can be promoted. Some
employees who do not have the required qualifications or experience will not expect that they can
be promoted. Thus a promotion has little motivational effect on them.
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