ESSENTIALS OF ORGANIZATIONAL BEHAVIOR

Fourteenth Edition

Chapter 7
Motivation Concepts

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AFTER STUDYING THIS CHAPTER
YOU SHOULD BE ABLE TO:
1. Describe the three key elements of
motivation.
2. Compare the early theories of motivation.
3. Contrast the elements of self-determination
theory and goal-setting theory.
4. Demonstrate the differences between self-
efficacy theory, reinforcement theory, equity
theory, and expectancy theory.
5. Identify the implications of employee job
engagement for managers.
6. Describe how the contemporary theories of
motivation complement one another.
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 WHAT IS MOTIVATION?

 Motivation: The processes that account for

an individual’s intensity, direction, and
persistence of effort toward attaining an
organizational goal

– Intensity: the amount of effort put forth to

meet the goal
– Direction: efforts are channeled toward
organizational goals
– Persistence: how long the effort is maintained

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 PRACTICAL EXERCISE

 A. Individually list five factors of work that

motivate you;

 B. List 5 factors that de-motivate you

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EARLY THEORIES OF MOTIVATION

 Maslow’s Hierarchy of Needs Theory

 Clayton Adorer's ERG theory

 Herzberg’s Two-Factor (Motivation-Hygiene) Theory

 McClellan’s Theory of Needs (Three Needs Theory)

 Douglas McGregor’s Theory X & Theory Y

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HIERARCHY OF NEEDS THEORY

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 MASLOW’S HIERARCHY OF NEEDS
Physiological – Hunger, thirst shelter, sex, & other bodily needs

Safety-Security – security & protection from physical and

emotional harm

Social belongingness – Affection, belongingness, acceptance &

friendship

Esteem – Internal: Self-respect, autonomy, achievement

- External: status, recognition, attention

Self-actualization – becoming what we are capable of becoming,

growth, self-fulfillment “be all you can be”

However, beware of cultural differences

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CLAYTON ALDERFER’S ERG THEORY

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 CLAYTON ALDERFER’S ERG THEORY
Existence - concerned with providing the basic material
existence requirements of humans.

Relatedness - the desire people have for maintaining important

interpersonal relationships.

Growth - an intrinsic desire for personal development.

 More than one need may motivate at the same time

 A lower motivator need not be satisfied before other needs
are motivating, e.g. struggling musician places growth above
existence)

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 FREDERICK HERZBERG
TWO-FACTOR THEORY

Satisfaction
No Satisfaction

Quality of
•• Quality of Promotional
•• Promotional

Motivation
Motivation Factors
supervision
supervision opportunities
opportunities
Factors
Hygiene Factors

Pay
•• Pay Opportunities for
•• Opportunities for
Company policies
•• Company policies personal growth
growth
personal
Physical working
•• Physical working
Hygiene

Recognition
•• Recognition
conditions
conditions

Factors
Relationships
•• Relationships Responsibility
•• Responsibility
Job security
•• Job security Achievement
•• Achievement

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 THOUGHT STARTER
 You have just been accepted for a job in
your specialty at one of your top five
choices for employers. The salary and
benefits they offered you to start is better
than you expected.

 Will your salary and benefits motivate you

to generate above average performance?

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 MCGREGOR’S THEORY X & THEORY Y
Theory X
Management assumes that the typical worker has little ambition,
avoids responsibility, is less intelligent, lazier, and work solely
for a sustainable income

Theory Y
Managers assume employees are internally motivated, enjoy
their job, and work to better themselves without a direct reward
in return.

Managers view their employees as one of the most valuable

assets to the company

Employees additionally tend to take full responsibility for their

work and do not need close supervision to create a quality
product
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DAVID MCCLELLAND'S THEORY OF NEEDS
 Need for Achievement
– The drive to excel

 Need for Power

– The need to make others behave in a way they
would not have behaved otherwise (e.g. going
above and beyond the call of duty)

 Need for Affiliation

– The desire for friendly and close interpersonal
relationships

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 MCCLELLAND'S HIGH ACHIEVERS
 High achievers prefer jobs with:
– Personal responsibility
– Feedback
– Intermediate degree of risk (50/50)

 High achievers are not necessarily good

managers

 High nPow and low nAff is

related to managerial success

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 USING MCCLELLAND’S THEORY
OF NEEDS IN THE WORKPLACE
 https://
www.youtube.com/watch?v=5VD3DEf5y4o

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CONTEMPORARY THEORIES OF MOTIVATION

 Intrinsic vs. extrinsic motivators

 Self-Determination Theory

 Goal-Setting Theory
– Management by Objectives

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 EXTRINSIC & INTRINSIC MOTIVATORS
Extrinsic motivation
Refers to behaviors that are driven by external rewards
such as money, fame, grades & praise
Example:
You reading the textbook material in order to get a good
grade

Intrinsic Motivation:
Behavior that is driven by internal rewards. The motivation
to engage in a behavior arises from within the individual
because it is naturally satisfying to the individual
Example:
Reading the textbook material because you want to find out
more about the subject

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 SELF-DETERMINATION THEORY
 Self-determination theory:
People prefer to have control over their actions so when they
feel they are forced to do something they previously enjoyed,
motivation will decrease (e.g. volunteer work vs. paid work)

Cognitive evaluation theory:

Proposes that the introduction of extrinsic rewards for work
(pay) that was previously intrinsically rewarding tends to decrease
overall motivation. Extrinsic incentives may undermine intrinsic
motivation, e.g. I want to do this vs. I have to do this

Self-concordance:
Considers how strongly people’s reasons for pursuing goals are
consistent with their interests and core values

The focus here is on intrinsic motivators

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 GOAL-SETTING THEORY
 A theory that specific and difficult goals, with
feedback, lead to higher performance. When
these goals are met, it leads to a sense of:
Achievement
Satisfaction
Intrinsic rewards

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 3 PERSONAL FACTORS THAT INFLUENCE THE GOAL-
PERFORMANCE RELATIONSHIP
Goal commitment – individual is committed to the goal, e.g. I
can achieve this goal; I want to achieve this goal

Task characteristics – tasks that are simple rather than

complex – independent rather than interdependent

National characteristics – collectivist vs. individualist, e.g.

acceptance of hierarchical authority, or challenges to the
status quo

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 GOAL SETTING CONTINUED
MANAGEMENT BY OBJECTIVES

Management by objectives (MBO):

Converts overall organizational
objectives into specific objectives for work
units and individuals

 Common ingredients:
– Goal specificity
– Explicit time period
– Performance feedback
– Participation in decision making

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 SOME STRENGTHS AND WEAKNESSES OF MBO
Strengths:
 Employees & managers jointly set the goals
& performance standards, thus
 Improving motivation and commitment
 Better planning
 Clearer goals = common direction
 Objectives are appraised accurately
 Enhance morale
 By being a part of the decision making
process, employees can fulfill other
motivational needs

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SOME STRENGTHS AND WEAKNESSES OF MBO
Weaknesses:
 Difficulty in setting realistic goals
 Emphasis on short term objectives
 Dangers of inflexibility
 Changes in leadership, organizational
strategy, and the marketplace
 Global vs. local influences
 Employees and managers are not
adequately versed in MBO

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CASCADING OF OBJECTIVES

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 OTHER CONTEMPORARY THEORIES
OF MOTIVATION

 Self-Efficacy Theory
 Reinforcement Theory
 Equity Theory
– Organizational Justice
 Expectancy Theory

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 SELF-EFFICACY THEORY

 Self-efficacy theory: An individual’s belief

that he or she is capable of performing a task
– Also known as social cognitive theory or
social learning theory
 Self-efficacy increased by:
1. Enactive mastery: gain experience
2. Vicarious modeling: see someone else do
the task
3. Verbal persuasion: someone convinces you
that you have the skills
4. Arousal: get energized

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SELF-EFFICACY THEORY

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 REINFORCEMENT THEORY
 An individual’s behaviorism a function of its consequences (B.F.Skinner)

 An individual’s behavior with positive consequences tends to be

repeated, but individual’s behavior with negative consequences
tends not to be repeated.

 Positive reinforcement - praise e.g. ‘atta boy, atta girl’

 Negative reinforcement – removing negative or undesirable
consequences
 Punishment – removing positive consequences, e.g. job suspension
 Extinction – permanently removing positive reinforcements

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 EQUITY THEORY

 Equity theory:

A theory that individuals compare their job

Inputs and outcomes with those of others and
then respond to eliminate any inequities

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 THREE ASSUMPTIONS OF EQUITY THEORY
APPLIED TO BUSINESS

 Employees expect a fair return for what they contribute to

their jobs, a concept referred to as the "equity norm".

 Employees determine what their equitable return should be

after comparing their inputs and outcomes with those of their
co-workers. This concept is referred to as "social comparison".

 Employees who perceive themselves as being in an inequitable

situation will seek to reduce the inequity either by distorting
inputs and/or outcomes in their own minds ("cognitive
distortion"), by directly altering inputs and/or outputs, or by
leaving the organization.

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 VICTOR VROOM’S
EXPECTANCY THEORY

 Three key relationships:

1. Effort-performance: perceived probability that

exerting effort leads to successful performance

2. Performance-reward: the belief that successful

performance leads to desired outcome

3. Rewards-personal goals: the attractiveness of

organizational outcome (reward) to the individual

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 REAL DOLLAR MOTIVATION REALITY CHECK
 Pay raises vs. budgets
 ESOPs & Gain-sharing
 What can the company afford
 Employee benefit costs affecting multi-generational
employees

Why do companies do this:

 Attract, retain, and develop high quality employees
who generate competitive advantages

If you take money out of the motivation equation,

what are your next three motivators.

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 IMPLICATIONS FOR MANAGERS
 Make sure extrinsic rewards for employees are not viewed as
coercive, but instead provide information about competence
and relatedness.
 Consider goal-setting theory. Clear and difficult goals often
lead to higher levels of employee productivity.
 Consider reinforcement theory regarding quality and quantity
of work, persistence of effort, absenteeism, and accident
rates.
 Consult equity theory to help understand productivity,
satisfaction, absence, and turnover variables.
 Expectancy theory offers a powerful explanation of
performance variables such as employee productivity,
absenteeism, and turnover.

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