commerce paper no.1 : management concepts and

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COMMERCE PAPER No.1 : MANAGEMENT CONCEPTS AND ORGANIZATIONAL BEHAVIOUR

MODULE No.20 : PROCESS THEORIES OF MOTIVATION

Subject COMMERCE

Paper No and Title 1: Management concept and Organizational behaviour

Module No and Title 20: Process Theories of Motivation

Module Tag COM_P1_M20

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TABLE OF CONTENTS

1. Learning Outcomes

2. Introduction

3. Types of Process Theories of Motivation:

1) Vroom’s Expectancy Theory

2) Needs-Goal Theory

3) Adam’s Equity Theory

4) The Porter- Lawler Model

4. Content vs. Process theory of motivation

5. Summary

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1. Learning Outcomes

After studying this module, we shall be able to

Identify the concept of process theory of motivation.

Appreciate the need for modern theories of motivation.

Learn about different process theories of motivation.

Understand about the importance of these theories.

Differentiate between the content and process theory of motivation.

2. Introduction

Process theories study and explain the motivation from individual’s thought process

perspective. They attempt to identify the key variables and their interrelationship that

explains the direction, degree and persistence of individual’s efforts. The chief variables

involved in process being drives, incentives, expectancy and reinforcement. It discovers

`why’ and `how’ people feel motivated by selecting one action over the other. They

elucidate and illustrate how individuals initiate, continue and direct their behavior for

reducing their inner tension and satisfying needs.

3. Types of process theories of motivation

There are mainly four types of theories of motivation which have studied and explained

motivation from process perspective. Vroom, Locke, Adam and Porter-Lawler studied

motivation from “process” viewpoint.

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Figure: 1 Process Theories of Motivation

3.1) Vroom’s Expectancy Theory:

Victor H. Vroom gave the Expectancy Theory in 1964 as a systematic explanatory theory

of work place motivation. According to Expectancy theory individual’s behavior is

determined by the assessment of rewards against the efforts. This theory emphasizes that

motivation to act in a particular manner is the result of individual’s expectation

- that his behavior will lead to a desired reward

- this reward will be able to satisfy an important need

- the wish to gratify this need is significant enough to lead to an effort.

Expectancy Theory has three variables namely -Expectancy, Instrumentality and Valence

such as Motivation = Expectancy x Instrumentality x Valence

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Figure 2: Relation between Expectancy, Instrumentality and Valence

Figure 3: Motivation Formula According To Vroom

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The above figure explains that Motivation is the end product of expectancy,

instrumentality and valence where an individual can achieve valued rewards by

performing as per the expectations by putting appropriate efforts. Motivation is

determined by the perceived value of the outcome of performing an action and the

perceived probability that these actions will cause the result to materialize. Individuals

have a tendency to perform in a manner that is capable of maximizing their reward over

the long term.

According to Expectancy theory the overall evaluation process is divided into series of

questions like:

1. Can I perform efficiently if I put in sincere efforts?

2. Will I be able to achieve the desired results by performing these tasks?

3. Can I expect that desired results will be rewarding and significant to me?

3.2 Locke’s Needs-Goal Theory

Edwin Locke propounded the Need Goal Theory in 1968, which puts forward that

setting of challenging but attainable goals along with strong feedback mechanism

tend to enhance the motivation and leads to better performance. According to this

theory, the main source of motivation is the intention to work towards a goal as these

goals tell an employee what all things they are required to do to accomplish them.

Generally, it is believed higher the goal’s difficulty level, more enhanced is the level

of performance expected. Motivation instigates with a need felt by an individual. This

need is then converted into the behavior aimed at supporting, the performance of goal

behavior to satisfy that need. As per this theory employees are likely to work

effectively towards goal when they are involved in goal setting process and also when

they get timely feedback on their progress. However, besides feedback there are few

other factors which influence the goal-performance relationship like-

Employee’s commitment to the goals.

Employee’s belief in their capabilities.

Nature of tasks involved in achievement of those goals.

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Figure 4: Major Findings of the theory

It is possibly a fundamental theory that recommends that though the goal should be fixed

at highest level but certain room for honest mistakes should be allowed to employees as

they strive to work towards these goals.

3. 3 Adam’s Equity Theory:

Equity Theory was set forth by John Stacey Adam in 1963. It propose that if the

employees feel that rewards received are fair, equitable and just in comparison to those

received by others, then they feel content and satisfied. As per this theory employees look

for retaining equity between the efforts that they put in job and results that they get from

them in alignment with the perceived efforts and results of others. However if any

considerable difference is noted in this regard then employees try to bring equity by

amending their own performance or making minor adjustments in co-workers level.

Similarly, they monitor related rewards too to always sustain the feeling of equity. And

for doing so they take number of steps like:

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Figure 5: Steps taken by employees to be in state of equity

Equity theory study motivation as an employee’s supposed equality of a service condition

and concludes that changes in employee behavior are primarily because of these

Supposed inequalities.

Figure 6: Comparison between the state of equity and inequity.

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3. 4 the Porter- Lawler Model:

This theory was propounded by Lyman W. Porter and Edward E. Lawler in 1968 based

on Vroom’s Expectancy Theory and is consider the most comprehensive theory of

workplace motivation so far. It is the extended and expanded version of Vroom’s

Expectancy theory as it explains motivation in an integrated manner taking into account

additional aspects- intrinsic and extrinsic rewards. Though this theory recognizes the fact

that human behavior is the outcome of felt need and the perceived value of rewards

determine the efforts directed to complete a task and the likelihood of these rewards

getting materialize, it also highlights the significance of above mentioned two types of

rewards that employees might expect to earn upon achieving a goal.

Intrinsic Rewards: These refer to positive feelings arising within employees and

experienced by them from completing the task like self fulfillment or feeling of self

accomplishment or sense of achievement.

Extrinsic Rewards: These refer to rewards originating from outside the person like pay

hike, bonus, commission etc.

Figure 7: The Porter- Lawler Model

Porter- Lawler by means of above model suggested that all individuals rationally acting

in the process make conscious selection of their behavior and have unique level of drive

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and efforts. This model precisely illustrate that the level

of efforts are related directly to performance at work which consecutively is proportional

to the level of awards received. The real performance on a job is the cumulative result of

individual’s ability, his willingness, and his perception of the job and also by the amount

of efforts he puts. In other words performance is the key factor leading to intrinsic and

extrinsic rewards, which in conjunction with the equity of results in satisfaction. That's

why; fairness of the reward makes it more satisfying. However the major practical

limitations are the intricacy of the model and the requirement to give valuable rewards to

all employees, but still by far it is the best model of workforce motivation. In spite of

being the notion of motivation so difficult to explain, this model beautifully and clearly

makes it comprehensible to all.

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4. Content Theory v/s Process Theories of Motivation:

BASIS CONTENT THEORIES PROCESS THEORIES

Focus They Focus on factors

within the individual that

leads to motivation.

They focus on dynamics of

motivation and how the

process of motivation takes

place.

Explain They explain individual

needs.

They explain thought

process behind an

individual’s behavior.

Answer Why people are motivated

in different ways and in

different situations and

What factors motivate

them?

How people initiate, direct

and explain their

motivation?

Types

Identify

Maslow’s Hierarchy

of Needs

Aldefer’s ERG

Theory

McGregory’s

Theory X and

Theory Y

Herzberg’s Two-

Factor Theory

McClelland’s

Achievement,

Power and

affiliation needs.

They identify the types of

needs, prioritize them and

find incentives that lead to

fulfillment of those needs.

• Locke’s Needs-Goal

Theory

• Adam’s Equity

Theory

• The Porter- Lawler

Model

• Vroom’s

Expectancy Theory

They identify the variables

that go into motivation

process and the relation

between them.

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5. Summary:

Process theories gives explanation of the concept of motivation from individual’s

thought process perspective.

They make an attempt to explain the notion of motivation as an indication of our

cognitive and rational thinking process.

The chief variables involved in process being drives, incentives, expectancy and

reinforcement.

Victor H. Vroom gave the Expectancy Theory in 1964 is a systematic explanatory

theory of work place motivation.

According to Expectancy theory individual’s behavior is determined by the

assessment of rewards against the efforts and motivation is the end product

expectancy, instrumentality and valence.

Edwin Locke propounded the Need Goal Theory in 1968, According to which, the

main source of motivation is the intention to work towards a goal.

Equity Theory was set forth by John Stacey Adam in 1963 which proposes that if

the employees feel that rewards received are fair, equitable and just in comparison

to those received by others, then they feel content and satisfied.

The Porter- Lawler Model is the extended and expanded version of Vroom’s

Expectancy theory as it explains motivation in an integrated manner taking into

account additional aspects- intrinsic and extrinsic rewards.

The major difference between the content theories and process theories of

motivation is that while content theories emphasis on what are the factors, forces,

urges and needs that direct human behavior then on the other hand process

theories emphasis on how and why human behavior is directed towards certain

choices throughout the process.

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