Chapter 13
Motivation and
Performance
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Learning Objectives
For Exam 4
1. Define motivation and distinguish between intrinsic and extrinsic motivation.
2. Describe expectancy theory of motivation and how managers can achieve a
motivated workforce using the principles of expectancy theory.
3. Describe and distinguish among need theories of motivation: Maslow’s
hierarchy of needs, Alderfer’s ERG theory, Herzberg’s motivator-hygiene
theory, and McClelland’s needs for achievement, affiliation, and power.
For Exam 5
1. Describe equity theory of motivation and how managers can use its
principles to achieve a motivated workforce.
2. Explain how goals motivate people and what kinds of goals are likely to
result in high performance.
3. Describe learning theories of motivation: operant conditioning theory and
social learning theory.
4. Explain how managers can use pay as a motivational tool.
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Motivation
Psychological forces (either internal or external) which
determine:
Direction – the behavior that a person chooses.
Effort – how hard will the person work.
Persistence – will the person keep trying or give up
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Sources of Motivation

Intrinsic motivation--satisfactions a person receives
in the process of performing a particular action.

Extrinsic motivation—rewards or punishment
obtained from the environment
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The Motivation Equation
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Expectancy Theory



A theory of motivation which focuses on the thought process
people use in choosing among alternative courses of action to
achieve rewards.
Motivation depends on individuals’ expectations about their
ability to perform tasks and whether or not that performance will
result in the desired rewards.
Based on the effort, performance, and value we place on the
outcome or reward.
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Motivation = Expectancy X Instrumentality X Valence
(E→P)
(P→O)
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Expectancy Theory
Motivation = Expectancy X Instrumentality X Valence
(E→P)
(P→O)



The degree of motivation a person has to engage in a behavior
is expressed along a continuum from 0 to 1.0.
The higher the motivation, the more likely the person is to
engage in a behavior
The multiplication terms in the equation reflect the importance
of a “no” answer to any of the three components – motivation
can be “shut down.”
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Expectancy Theory
Classroom Scenario 1:
Motivation = Expectancy X Instrumentality X Valence
(E→P)
(P→O)
Classroom Scenario 2:
Motivation = Expectancy X Instrumentality X Valence
(E→P)
(P→O)
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Expectancy Theory
Classroom Scenario 3:
Motivation = Expectancy X Instrumentality X Valence
(E→P)
(P→O)
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Expectancy Theory
How can managers use expectancy theory?
A manager needs to pay attention to each of the key variables in
the theory to maintain high motivation
E→P - Person’s expectation that they will be able to
perform the job. May need to provide training or coaching
to build confidence.
P→O – A person is motivated to perform well when he/she
is rewarded and recognized by the organization for that
performance.
Need to identify the rewards that are valued by employees
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Need Theories of Motivation
A group of theories that emphasize the needs that people are trying
to satisfy and the factors in the work environment which satisfy
those needs.




Maslow’s Hierarchy of Needs
Alderfer’s ERG Theory
Herzberg’s Motivator-Hygiene Theory
McClelland’s Needs for Achievement,
Affiliation and Power
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Maslow’s Hierarchy of Needs
Abraham Maslow developed a theory which proposes that humans
are motivated by five needs. He arranged these needs in a hierarchy
of influence.
Physiological: basic human needs to sustain life such as shelter,
food, water, oxygen.
Safety: the need for a safe physical and emotional environment;
freedom from threats
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Maslow’s Hierarchy of Needs
Belongingness: the need to be part of a group, to be loved and
feel like you belong.
Esteem: the need to have a positive self-image and be
recognized and appreciated by others.
Self-actualization: the need to develop your own potential, to
feel personally fulfilled. This is the highest needs category
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Maslow’s Hierarchy of Needs
Needs
Highest-level
needs
Lowest-level
needs
Description
Examples
Selfactualization
Realize one’s
full potential
Use abilities
to the fullest
Esteem
Feel good
about oneself
Promotions
and recognition
Belongingness
Social
interaction, love
Interpersonal
relations, parties
Safety
Security, stability
Job security,
health insurance
Physiological
Food, water,
shelter
Basic pay level
to buy items
Lower-level needs must be satisfied before
higher-level needs are addressed.
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Maslow’s Hierarchy of Needs
People are motivated to satisfy basic needs first
(physiological) – do not consider higher order needs until those
are satisfied
Once the needs of one level are satisfied, you move to next
higher level
Once a need is satisfied, it is no longer a motivator unless
there is a threat that it will be taken away
Researchers have found it difficult to verify the model in
organizational settings.
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Alderfer’s ERG Theory
Clayton Alderfer simplified Maslow’s theory and proposed
three categories of needs which motivate people.

Existence needs: needs for physical well-being

Relatedness needs: needs for satisfactory relationships with
others

Growth needs: needs for personal growth and competence
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Alderfer’s ERG Theory
Needs
Highest-level
needs
Growth
Description
Self-development,
Growth
Needs work
creative
human potential,
personal growth, and increased
Interpersonal
competence
Relatedness
relations, feelings
Lowest-level
needs
Relatedness
Needs
Food,
water,
clothing, and
shelter
the need for satisfactory
relationships
with others
Existence
Examples
Continually
improve skills
Good relations,
accurate feedback
Adequate pay
for necessities
After lower level needs satisfied, person seeks higher needs. When
unable to satisfy higher needs, lower needs motivation is raised.
Existence Needs
the needs for physical well-being
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Alderfer’s ERG Theory
Unlike Maslow, different levels of needs can be active at the
same time. Can begin to move toward next level even though
lower level is not completely satisfied
Frustration regression principle – If you are blocked from
achieving next level need, may go back and focus on a lower
level need
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Herzberg’s Motivator-Hygiene Theory
Frederick Herzberg’s theory focused on the work environment.
He found that there were factors which increased job satisfaction
and other factors were associated with dissatisfaction. He
proposed two factors.
 Hygiene factors
conditions surrounding the job such as pay, working conditions,
interpersonal relationships
 Motivators:
factors related to doing the job such as responsibility,
recognition, achievement, growth
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Herzberg’s Two-Factor Theory
 Hygiene factors address factors in the job which may result
in dissatisfaction – they do not increase motivation
 Motivators increase job satisfaction which is then expected
to increase performance
 The theory has been criticized because job satisfaction and
motivation are not the same thing. Difficult to distinguish
these variables in research.
 To increase motivation need to focus on job design – task
variety, autonomy, responsibility
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McClelland’s Acquired Needs Theory
David McClelland proposed that some needs are learned
through life experiences rather than being born with them. He
proposed three acquired needs.
 Need for Achievement
Strong desire to perform challenging tasks, outperform others and meet
personal standard for excellence
 Need for Affiliation
Strong desire for good interpersonal relations, being liked and getting
along
 Need for Power
A strong desire to control or influence others
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McClelland’s Acquired Needs Theory
 Needs are learned and become “predispositions,” almost like
personality traits
 Entrepreneurs are often people with high Need for
Achievement
 Higher level managers are more often people with high Need
for Power
 People with high Need for Affiliation are successful in jobs
requiring coordination and people skills
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