MOTIVATION
Academic Materials for MBA
Compiled by:
Gopal Salim
056-7123960
Starbucks Corporation
Founded
Founder(s)
Headquarters
Number of locations
Area served
Key people
Pike Place Market in
Seattle, Washington
(March 30, 1971 (1971-0330))
Jerry Baldwin
Gordon Bowker
Zev Siegl
Seattle, Washington, U.S.
17,009 (FY 2010)
50 countries
Howard Schultz
(Chairman, President and
CEO)
Motivation - Meaning
• The word ‘Motivation’ is derived from the Latin Term
‘Movere’ which means ‘Move’.
• Motivation is “the processes that account for an
individual’s INTENSITY, DIRECTION and PERSISTENCE of
effort towards attaining a goal” ( Stephen P. Robbins)
• Motivation means to move. It includes three common
characteristics:
1. It concerns with what activates human behavior
2. It involves what directs this behavior towards a
particular goal.
3. Motivation concerns how this behavior is sustained
or supported.
INTENSITY
How hard a person tries.
DIRECTION
Orientation towards goals
PERSISTENCE
How long can maintain effort
• Motivation has got three common
characteristics:
1. It concerns with what activates human
behavior
2. It involves what directs this behavior
towards a particular goal
3. Motivation concerns how this behavior is
sustained (supported)
Motivation Process
Need
Drive/Goal Directed
Behavior
Goal
Incentive/Relief
BASIC CHARACTERISTICS OF WORK
MOTIVATION
•
•
•
•
•
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•
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Direction of behavior & is psychological
Level of effort
Level of persistence
Intrinsic and extrinsic motivation
Dynamic and situational
Not easily observed phenomenon
Motivation is goal oriented process
Motivation is influenced by social and cultural
norms
THEORIES OF MOTIVATION
• Theories categorized into two groups.
• CONTENT THEORIES
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–
–
–
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McGregor’s Theory X and Theory Y
Maslow’s Hierarchy of Needs Theory
ERG Theory
Two Factor Theory
McClelland’s Achievement Motivation Theory
• PROCESS THEORIES
– Expectancy Theory
– Equity Theory
– Porter & Lawler Theory
MASLOW’S HIERARCHY OF NEEDS
• People are not merely controlled by
mechanical forces (stimuli and reinforcement)
or unconscious instinctual impulses of
psychoanalysis.
SELF ACTUALIZATION
ESTEEM
LOVE, AFFECTION & BELONGINGNESS
(SOCIAL)
SAFETY NEEDS
PHYSIOLOGICAL NEEDS
HIGHER LEVEL NEEDS
LOWER LEVEL NEEDS
SELF ACTUALIZATION
(Personal Growth,
realization of potential)
STATUS ( Titles, symbols,
Promotion etc)
SOCIAL NEEDS ( Formal or informal work
Groups, Teams etc)
SECURITY NEEDS ( Seniority plan, health insurance
employee assistance plan, pension etc)
BASIC NEEDS ( PAY )
ERG THEORY ( Alderfer 1972)
GROWTH
(Intrinsic Desire for
Personal Development)
RELATEDNESS
(Interpersonal social
relationship)
EXISTENCE
(Survival)
2.ERG THEORY &MASLOW’S THEORY
GROWTH
External Esteem &
Self Actualization
RELATEDNESS
Social Needs & Esteem Needs
EXISTENCE
(Physiological Needs & Safety Needs)
Difference Between ERG Theory and
Maslow’s Theory
• More than one need may be operative at the
same time
• If the gratification of a higher level need is stifled,
the desire to satisfy a lower level need increases
• ERG Theory does not assume that there exists a
rigid hierarchy. A person can be working on
growth even though existence or related needs
are unsatisfied or all three need categories could
be operating at the same time
3.HERZBERG’S TWO FACTOR
THEORY
• According to Herzberg , the factors leading to
job satisfaction are separate and distinct from
those that lead to job dissatisfaction.
• He makes the following contention about
satisfaction and dissatisfaction.
Contrasting Views of Satisfaction and
Dissatisfaction
TRADITIONAL VIEW
SATISFACTION
DISSATISFACTION
HERZBERG VIEW
SATISFACTION
NO SATISFACTION
NO DISSATISFACTION
DISSATISFACTION
Contrasting Views of Satisfaction and
Dissatisfaction
DISSATISFACTION
& DEMOTIVATION
EMPLOYEE NOT
DISSATISFIED, BUT
NOT MOTIVATED
POSITIVE
SATISFACTION &
MOTIVATION
Major Components of Herzberg Two
Factor Theory
EXTRINSIC/HYGIENE
FACTORS
Company Policy & Admn.
Relationship with
supervisor
Working conditions
Personal Life
Status
Security
Supervision etc
INTRINSIC/MOTIVATORS
FACTORS
Achievement
Recognition
Work itself
Responsibility
Advancement
Growth
• Motivators are associated with long term
positive effects in job performance
• Hygiene factors consistently produced only
short term changes in job attitude and
performance
• Satisfiers describe a person’s relationship with
what he or she does and it relates to the tasks
being performed
• Dissatisfiers have to do with a person’s
relationship to the context or environment in
which he or she performs the job
3.
McClelland's Theory
Of
Needs
 McClelland's theory is based on TAT
 McClelland identified three themes on such
TAT stories, with each corresponding to an
underlying need that he believes is important
for understanding individual behavior.
 These needs include:
 Need for Achievement (nAch)
 Need for Power (nPow)
 Need for Affiliation (nAff)
nAch (High n Achievers)
• nAch
• Derive satisfaction
from reaching goals
• Feeling of successful
task accomplishment
• Immediate feedback
on performance
• Moderate risk takers
• Work independently
High n Achievers
• Joint Walt Disney in
1996
• Made turnaround for
Disney’s ABC Family
channel
• Became President of
ABC Television in
2004
High n Achievers
• Indra Krishnamurthy
Nooyi
• CEO of Pepsi
nPow (High n Powerful)
• nPow
• Derives satisfaction from
his or her ability to
control others
• Actual achievement of
goal is not very
important but the means
are of primary
importance
• Derive satisfaction from
being in positions of
influence and control
nPow (High n Powerful)
nAff (High n Affiliated)
• nAff
• Satisfaction from
social and
interpersonal
activities
• Strong interpersonal
ties and to get close
to people
psychologically
nAff (High n Affiliated)
Muhammad Yunus : Micro Banking
: Bangladesh
Nelson Mandela : South Africa
Assumptions of the theory
• Individuals with a high need to achieve prefer job
situations with personal responsibility, feedback,
moderate risk
• A high need to achieve does not necessarily leads
to being a good manager, especially in large
organizations as they are more interested in how
well they do personally
• The needs for affiliation and power tend to be
closely related to managerial success. The best
managers are high in their need for power and
low in their need for affiliation
4. Goal Setting Theory (Locke &
Latham 1990)
• Challenging goals produce a higher level of
output than do the generalized goals
• More difficult the goal, the higher the level of
performance
• People do well when they get feedback
• Goal serves as a motivator, because it causes
people to compare their present capacity to
perform with that required to succeed at the
goal
Goal Setting Theory
• There are four contingencies in goal setting
theory:
1. Goal Commitment
2. Adequate self-efficacy
3. Task characteristics
4. National culture ( North American)
5. EQUITY THEORY (Adams)
• Employees make comparisons of their job
inputs and outcomes relative to those of
others
• If an individual feels that his input-output is
equal to that of others, a state of equity exists
• He will perceive the situation as fair
• If ratio is unequal, the individual experience
inequity
Referent comparisons used by
employees
• SELF-INSIDE
• An employee’s experiences in a different position inside his
or her current organization
• SELF-OUTSIDE
• An employee’s experiences in a situation or position
outside his or her current organization
• OTHER-INSIDE
• Another individual or group of individuals inside the
employee’s organization
• OTHER-OUTSIDE
• Another individual or group of individuals outside the
employee’s organization
Crucial Issues in Equity Theory
• Employees with short tenure in their current
organizations tend to have little information
about others
• Employees with long tenure rely more heavily
on co-workers for comparison
• Upper level employees will make more otheroutside comparisons
Choice in Inequity
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Change their inputs
Change their outcomes
Distort perceptions of self
Distort perceptions of others
Choose a different referent
Leave the field
Organizational Justice
1. DISTRIBUTIVE JUSTICE
• The perceived fairness of the way rewards are
distributed among people
2. PROCEDURAL JUSTICE
• Perceptions of the fairness of the procedures
used to determine outcomes
3. INTERACTIONAL JUSTICE
• The perceived fairness of the interpersonal
treatment used to determine organizational
outcomes
6. EXPECTANCY THEORY – Victor H.
Vroom
VALENCY X EXPECTANCY
MOTIVATION
ACTION
GOAL ACHIEVEMENT
SATISFACTION
Determinants of Motivation
• EXPECTANCY
• The belief that one’s efforts will positively influence one’s
performance
• INSTRUMENTALITY
• An individual’s beliefs regarding the likelihood of being
rewarded in accord with his or her own level of
performance
• VALENCE
• The value a person places on the rewards he or she expects
to receive from an organization
• OTHER DETERMINANTS
• Skills, abilities, role perceptions, opportunity to perform etc
INSTRUMENTALLITIES
SECOND LEVEL OUTCOME
EXPECTANCY
FIRST LEVEL OUTCOME
OUTCOME 1A
OUTCOME 1
OUTCOME 1B
MOTIVATIONAL FORCE
OUTCOME 2
OUTCOME 2A
OUTCOME 2B
OUTCOME 2C
Key Relationships in Expectancy
Theory
Individual Effort
Individual Performance
Organizational Rewards
Personal Goals
Three Key Relationships
• EFFORT – PERFORMANCE RELATIONSHIP
• PERFORMANCE – REWARD RELATIONSHIP
• REWARDS – PERSONAL GOALS RELATIONSHIP
PERFORMANCE FORMULA
• Performance of an employee is based on
ABILITY, OPPORTUNITY AND MOTIVATION
• Therefore
PERFORMANCE = f ( A X M X O )
Where A is ability
M is motivation
O is opportunity
PERFORMANCE IMPACT
Application of Motivation Theories
1. Goal Setting
 Goal setting is used to motivate staff in
organization
 The use of goal to motivate task
accomplishment draws on two primary
attributes: (i) The Content of Goal and (ii)
Level of Intensity in Working Towards it.
Application of Motivation Theories
(i) Current Level of Difficulty
 Goal should be challenging enough to induce high levels of
effort
 So the managers should take this factor into consideration
while setting goals to the employees.
(ii) Level of Intensity in Working Towards Goal
 There can be three ways in which goals can be set. They
are:
a. When goals are assigned by the management
b. Where members are asked to participate in goal setting
c. When members are told to do their best
 Studies prove that the first two methods are more effective
in motivating the people to achieve their targets and goals.
Goals
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IMPORTANCE OF GOALS
Goals guide and direct behavior
Goals serve as an organizing function
Goals provide benchmarks
Goals may define the basis for organizational
design.
LIMITATIONS OF GOAL SETTING
If employees lack skill and ability, they may not be
able to achieve the goals
When the employees are given complicated task,
goal setting fails
Goals
 REACTION OF DISSATISFIED EMPLOYEES
1. Job avoidance ( quitting)
2. Work avoidance (absenteeism, arriving late or
leaving early)
3. Psychological defenses ( alcohol, drug abuse
etc)
4. Constructive protest (complaining)
5. Defiance (Refusing to do what is asked)
6. Aggression (theft or assault)
REWARD SYSTEM FOR HIGH
PERFORMANCE


a.
b.
c.
d.
e.
f.
Reinforcement or reward system is the process of managing
behavior or reshape behaviors by having a contingent
consequence follows behavior
The ability of the reward to motivate individuals or a team
of high performance depends on the following factors:
Availability of rewards
Timeliness of rewards
Performance contingency: Linkage between performance
and rewards
Durability of rewards
Equity in providing rewards
Visibility of rewards