Contemporary Theories of Motivation

Gonzalo Campuzano

Enrique Flores

OUTLINE Introduction Early Theories of Motivation (Overview) Goal Setting Theory

MBO Programs

Equity Theory Expectancy Theory Integrating Contemporary Theories of Motivation References Questions & Answers

55% of U.S. employees have no enthusiasm for their job.

As cited in D. Jones, “Firms spend Billions to Fire Up Workers – With Little Luck”, USA Today, May 10, 2001

INTRODUCTION Motivation is the result of the interaction of the

individual and the situation. Individuals differ in their basic motivational drive.

i.e. Texbook Vs. Novel The level of motivation varies both between

individuals and within individuals at different times.

Motivation: “The process that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal.” [1]

EARLY THEORIES OF MOTIVATION

1950’s: Hierarchy of needs theory Theories X and Y The two-factor theory.

They represent a foundation from which contemporary theories have grown.

Practicing managers still regularly use this theories and their terminology in explaining employee motivation.

Contemporary way of thinking

GOAL-SETTING THEORY Goals tell an employee what needs to be done

and how much effort will need to be expended. In order to increase performance:

Set specific goals. Difficult goals, when accepted, result in higher

performance than does easy goals. Provide feedback.

An individual is committed to the goal when he believes he can achieve the goal, and wants to achieve it.

MBO PROGRAMS:Putting Goal-Setting T. Into Practice

Converting overall organizational objectives into specific objectives for organizational units and individual members.

Four ingredients common to MBO programs: Goal specification. Participation in decision making. An explicit time period. Performance feedback.

Failures may come from: Unrealistic expectations regarding results. Lack of commitment by top management. Cultural incompatibilities.

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EQUITY THEORY Employees make comparison of their job inputs and

outcomes relative to those of others:

When employees perceive inequity, the can: Change their inputs. Change their outcomes. Distort perceptions of self. Distort perception of others. Choose a different referent Leave the field

EQUITY THEORY Given payment by time:

Overrewarded employees will produce more than will equitably paid employees.

Underrewarded employees will produce less or poorer quality of output.

Given payment by quantity of production: Overrewarded employees will produce fewer, but

higher-quality, units than will equitably paid employees.

Underrewarded employees will produce a large number of low-quality units in comparison with equitably paid employees.

EQUITY THEORY:Conclusions

Motivation is influenced significantly by others’ rewards as well as by one’s own rewards.

Inequities created by overpayment do not seem to have a very significant impact on behaviour.

Most research has focused on pay, but employees seem to look for equity in the distribution of other rewards.

Historically, equity theory focused on distributive justice. But increasingly equity is thought of from the standpoint of organizational justice.

Managers should consider openly sharing information on how allocation decisions are made, following consistent and unbiased procedures.

EXPECTANCY THEORY The strength of a tendency to act in a certain

way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that the outcome to the individual.

The theory focuses on three relationships: 1. Effort-performance. 2. Performance-reward. 3. Rewards-personal goals.

Indivudua lE ffor t

P e rs ona lG oa ls

O rga niza tiona lR e w a rds

Individua lP e rform a nc e

1 32

EXPECTANCY THEORY Giving maximum effort not always means being

recognized. Good performance appraisal not always leads to

organizational rewards. Rewards are not always found attractive by

employees: Managers limited in the rewards they can distribute. Managers incorrectly assume that all employees want

the same.

EXPECTANCY THEORY:Conclusions

The key is the understanding of an individual’s goal and the linkage between the three relationships.

There is no universal principle for explaining everyone’s motivations.

INTEGRATING CONTEMPORARY THEORIES OF MOTIVATION

Many theories are complementary. Its basic foundation is the expectancy model.

Indivudual E ffortPers onal

GoalsO rganiz ational

R ew ardsIndividual

Perform anc e

O pportunity Ability

O bjec tivePerform anc e

EvaluationSys tem

Perform anc eEvaluation

C riteria

D om inantNeeds

Equity C om paris on/O rganiz ational Jus tic e

BA I

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I

O:

R einforc em ent

Goals D irec t Behavior

High Ac hievem entNeed

Job D es ign

Job D es ign

Indivudual E ffortPers onal

GoalsO rganiz ational

R ew ardsIndividual

Perform anc e

O pportunity

Goals D irec t Behavior

Ability

O bjec tivePerform anc e

EvaluationSys tem

Perform anc eEvaluation

C riteria

D om inantNeeds

High Ac hievem entNeed

R einforc em ent

Equity C om parison/O rganizational Jus tice

BA I

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REFERENCESRobbins and Judge, “Organizational Behavior”, 12th Edition, Pearson Prentice Hall, 2007.

D. Jones, “Firms spend Billions to Fire Up Workers – With Little Luck”, USA Today, May 10, 2001

[1] T.R. Mitchell, “Matching Motivational Strategies with Organizational Contexts”, Research in Organizational Behavior, vol. 19, pp 60-62

P.C. Early, P. Wojnaroski, and W. Prest, “Task Planning and Energy Expended: Explorations of How Goals Influence Performance”, Journal of Applied Psychology, Feb 1987.

J. Greenberg and S. Ornstein, “High Status Job Title as Compensation for Underpayment: A Test of Equity Theory”, Journal of Applied Psychology, May 1983.

Questions & Answers