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Page 1: PD Lecture 3 motivation

All Rights ReservedOrganizational Behaviour © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 1

PEOPLE DYNAMICS IN MALAYSIAN ORGANISATIONS

UCM60303U3

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Lecture 3Lecture 3

Motivation principles at work

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Learning Outcomes

Define motivation and its nature Explain the importance of motivation Describe the relationship between motivation

and performance Explain the classical theories of motivation Explain the contemporary theories of

motivation

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Definition

Motivation is a set of forces that causes people to behave in certain ways.

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The Importance of Motivation

• Leads to achievement of organizational goals

• Builds friendly relationship

• Improves employees’ level of efficiency

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Motivation and Performance

The relationship between motivation and performance:

P = M x AP = performance M = motivation A = ability

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Theories of Motivation

• Maslow’s Hierarchy of Needs Theory• Theory X and Theory Y • Two-factor Theory• ERG Theory• McClelland’s Theory of Needs • Goal-setting Theory • Reinforcement Theory• Equity Theory• Expectancy Theory

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Maslow’s Hierarchy Of Needs Theory

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Physiological NeedsThese are the most basic needs that every person has and they are critical for your ability to survive. These include needs like water, food, air and sleep. You can see how these are important for personal development because without them nothing else matters.

These are instinctive needs, according to Maslow. Until you complete these needs, everything else is secondary and will be pushed off to the side.

Maslow also believed that sexual reproduction is among the various physiological needs that a person needs to satisfy.

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Security NeedsYou have to feel secure and safe in life or else you are not able to focus on other parts of your life. While they are not as critical as the various physiological needs, they are a close second because when people do not feel safe, they put their focus on the danger that they see coming.

This needs also puts emphasis on being able to create order and control in your life. It includes things like having a safe and stable home, physical safety, financial security and stable health. These needs give you a number of goals that you can work on for your development.

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Social NeedsHumans are social creatures by nature, so socialization is a critical needs in your life. If you are working on a personal development plan for improving your relationships, addressing this need is of the utmost importance.

When you are looking at your social needs, you have to look at all of your relationships, including your romantic endeavors, your friendships and the connection you have to your family.

Things like your involvement in your community, social organizations and religious groups will also play a role in fulfilling your social needs.

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Esteem NeedsThis needs becomes very important after you have satisfied the three needs above. Humans naturally concern themselves with self-esteem, social recognition, personal worth and accomplishment.

People want others to appreciate and respect them for the things that they do. When it comes to your personal development plan, this is where you are going to focus on things like career and education. You also want to consider your hobbies when it comes to this need.

When people improve their self-esteem and they start to gain acceptance, they naturally start to become more confident. Those who do not accomplish this need are at risk for experiencing feeling inferior or feeling like they are a failure, so it is important to address this need.

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Theory X and Theory Y

Theory XTheory XManagers See Workers As…Managers See Workers As…

Disliking WorkDisliking Work

Avoiding ResponsibilityAvoiding Responsibility

Having Little AmbitionHaving Little Ambition

Theory YTheory Y Managers See Workers As…Managers See Workers As…

Enjoying WorkEnjoying Work

Accepting ResponsibilityAccepting Responsibility

Self-directedSelf-directed

Pei Ling
Lowercase for -directed
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Self-Actualizing NeedsMaslow states that not everyone is capable of achieving this level of the Hierarchy. You can achieve it if you put forth the effort necessary to do so. Once you reach this level, you are concerned with your personal growth, interested in fulfilling your potential, you are self-aware and you do not care much about the opinions that other people have.

This makes you far more confident and capable of being yourself and not giving into the various societal pressures

Now you have a better idea about what Maslow's Hierarchy of Needs is and what you need to do to ensure that you can work it into your personal development plan. You can also see how your personality type plays into your needs and which ones are most critical to you. Make sure that when you are setting your goals, you are keeping these needs in mind because it ensures that your goals are more realistic and that they are something that will benefit you. It also helps to make sure that you can create better plans to accomplishing them.

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Theory X workers Theory X Assumptions The average human being has an inherent dislike of work and will avoid it if he can. • Because of their dislike for work, most people must be controlled and threatened before they will work hard enough. • The average human prefers to be directed, dislikes responsibility, is unambiguous, and desires security above everything. • These assumptions lie behind most organizational principles today, and give rise both to “tough” management with punishments and tight controls, and “soft” management which aims at harmony at work. • Both these are “wrong” because man needs more than financial rewards at work, he also needs some deeper higher order motivation - the opportunity to fulfill himself. • Theory X managers do not give their staff this opportunity so that the employees behave in the expected fashion.

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Theory Y workers Theory Y Assumptions • The expenditure of physical and mental effort in work is as natural as play or rest. • Control and punishment are not the only ways to make people work, man will direct himself if he is committed to the aims of the organization. • If a job is satisfying, then the result will be commitment to the organization. • The average man learns, under proper conditions, not only to accept but to seek responsibility. • Imagination, creativity, and ingenuity can be used to solve work problems by a large number of employees. • Under the conditions of modern industrial life, the intellectual potentialities of the average man are only partially utilized.

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Characteristics of Theory X and Theory Y EmployeesTheory X (0%) Theory Y (100%)

Attitude

People dislike work, find it boring , and will avoid it if they can

People need to work and want to take an interest in it. Under right conditions, they can enjoy it.

Direction

People must be forced or bribed to make the right effort People will direct themselves towards a target thay they accept.

Responsibility

People would rather be directed than accept responsibility, which they avoid

People will seen and accept responsibility, under the right condition.

Motivation

People are motivated mainly be money and fears about their job security

Under the right condition, people are motivated by the desire to realize their own potential.

Creativity

Most people have little creativity – except when it comes to getting round rules.

Creativity and ingenuity are widely distributed and grossly underused.

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TWO-FACTOR THEORY

• Motivator factors (intrinsic factors) a factor related to job content: associated with an

individual’s positive feelings about the job, i.e. the job itself, responsibility, achievement, growth.

when adequate, give satisfaction

• Hygiene factors (extrinsic factors) a factor related to job context or the environment in which

the job is performed, i.e. company policy, supervision, and salary

when inadequate – feel dissatisfied

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Hygiene factors The hygiene factors symbolized the physiological needs which the individuals wanted and expected to be fulfilled. Hygiene factors include:

Pay- The pay or salary structure should be appropriate and reasonable. It must be equal and competitive to those in the same industry in the same domain. Company Policies and administrative policies- The company policies should not be too rigid. They should be fair and clear. It should include flexible working hours, dress code, breaks, vacation, etc. Fringe benefits- The employees should be offered health care plans (mediclaim), benefits for the family members, employee help programmes, etc. Physical Working conditions- The working conditions should be safe, clean and hygienic. The work equipments should be updated and well-maintained. Status- The employees’ status within the organization should be familiar and retained. Interpersonal relations-The relationship of the employees with his peers, superiors and subordinates should be appropriate and acceptable. There should be no conflict or humiliation element present. Job Security- The organization must provide job security to the employees. Supervision- Employees prefer nice and friendly managers the most

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Motivator FactorsRecognitionThe employees should be praised and recognized for their accomplishments by the managers.

Sense of achievementThe employees must have a sense of achievement. This depends on the job. There must be a fruit of some sort in the job.

Growth and promotional opportunitiesThere must be growth and advancement opportunities in an organization to motivate the employees to perform well.

ResponsibilityThe employees must hold themselves responsible for the work. The managers should give them ownership of the work. They should minimize control but retain accountability

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TWO-FACTOR THEORY

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ERG THEORY

• The E, R and G stand for three basic need categories:

Existence needs (E)Relatedness needs (R)Growth needs (G)

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Existence Needs This group of needs is concerned with providing the basic requirements for material existence, such as physiological and safety needs. In a work context this need is satisfied by money earned in a job for the purchase of food, shelter, clothing, etc.

Relatedness Needs This group of needs focuses on the desire to establish and maintain interpersonal relationships with family, friends, co-workers and employers. This need includes the need to interact with other people, receive public recognition, and feel secure around people. In a work context and given the amount of time most people spend at work this need is normally satisfied to some extent by their relationships with colleagues and managers.

Growth Needs These needs are about the fulfilment of desires to be creative, productive and to complete meaningful tasks in order to build and enhance a person’s self-esteem through personal achievement. These needs are all about by personal development. In a work context a person's job, career, or profession can provide a significant satisfaction of growth needs.

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McClelland’s Theory of Needs

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Achievement Motivation [n-ach]The n-ach person is 'achievement motivated' and seeks the achievement and attainment of realistic but challenging goals, and upwards progress in their job. They have strong need for feedback and a feeling of accomplishment. According to David McClelland, people with strong 'achievement motivation' make very good leaders. There weekness is their tendency to expect too much of their staff believing that their staff have the same achievement-focus - but of course most people aren't like this.

Authority/power motivation [n-pow]The n-pow person is 'authority motivated'. This motivational driver produces a need to be influential, effective and to make an impact. These people have a powerful need to lead and take charge and are driven towards enhancing their personal status and prestige. Whilst people with a strong n-pow 'authority-motivation' will work hard work and be commited to the organisation, they may not possess the necessary emotional intelligence and people awareness and thus lack flexibility and the necessary people skills.

Affiliation motivation [n-affil]The n-affil person is 'affiliation motivated' and is a team player motivated by a need to be liked and for friendly relationships and interactions with others. David Mcclelland suggested that a a manager's objectivity is underminded by a strong n-affil 'affiliation-motivation' because of the desire to be popular affects and interferes with the decision-making capability of a manager. He suggested that most of us possess and demonstrate a combination of these characteristics, and some some of us show a a strong bias to a particular motivational need that will inevitably influence and affect our working behaviour and management style.

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Goal-setting Theory

• Intentions to work toward a goal are a major source of motivation.

• Five criteria, known as SMART must be considered in setting the goal.

Specific Measurable Action-oriented  Realistic and Relevant Time-based

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Reinforcement Theory

• The process of shaping behaviour by controlling the consequences of the behaviour.

• Tools used to control the behaviour of employees are:

Positive Reinforcement Negative Reinforcement Extinction Punishment

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Positive reinforcementPositive reinforcement involves making sure that behavior is met with positive consequences. For example, praising an employee for treating a customer respectfully is an example of positive reinforcement.

If the praise immediately follows the positive behavior, the employee will see a link between the behavior and positive consequences and will be motivated to repeat similar behaviors.

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Negative reinforcementRemoval of unpleasant outcomes once desired behavior is demonstrated. is also used to increase the desired behavior. Negative reinforcement involves removal of unpleasant outcomes once desired behavior is demonstrated.

Nagging an employee to complete a report is an example of negative reinforcement. The negative stimulus in the environment will remain present until positive behavior is demonstrated.

The problem with negative reinforcement is that the negative stimulus may lead to unexpected behaviors and may fail to stimulate the desired behavior. For example, the person may start avoiding the manager to avoid being nagged.

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ExtinctionIs used to decrease the frequency of negative behaviors. Extinction is the removal of rewards following negative behavior. Sometimes, negative behaviors are demonstrated because they are being inadvertently rewarded. For example, it has been shown that when people are rewarded for their unethical behaviors, they tend to demonstrate higher levels of unethical behaviors.

Thus, when the rewards following unwanted behaviors are removed, the frequency of future negative behaviors may be reduced. For example, if a coworker is forwarding unsolicited e-mail messages containing jokes, commenting and laughing at these jokes may be encouraging the person to keep forwarding these messages. Completely ignoring such messages may reduce their frequency.

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PunishmentPresenting negative consequences following unwanted behaviors. is another method of reducing the frequency of undesirable behaviors.

Punishment involves presenting negative consequences following unwanted behaviors. Giving an employee a warning for consistently being late to work is an example of punishment.

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Equity Theory• Equity Theory, according to George and Jones(2005), is defined as “ a

theory of motivation that focuses on people’s perceptions of the fairness of their work outcomes relative to their work input.

• The equity theory focuses on an individual’s perceived relationships between outcomes they perceive from their organisation and the inputs that they contributed (Inputs are resources contributed in performing the job, such as time, efforts, skills experiences, etc.

• Outcome can be the salary and also other rewards received from the organisation (bonus, promotion, recognition, achievement, etc).

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Referent ComparisonsFour types of Referent a person can make a comparison with:

•Self-inside Comparing himself with his own self in the same organisation

•Self-outside Comparing himself with his own self in an another organisation

•Other-inside Comparing his input and outcome with another person in the same organisation.

•Other-outside Comparing his input and outcome with another person in a different oragnisation

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Three Probabilities of outcome may arise:Under-rewarded (Inequity)The inequity that exists when a person perceives that his or her own outcome-input ration is less than the ration of a referent.

Equity An individual perceives his or her own outcome-input ratio to be equal to a referent’s outcome-input ration

Over-rewarded (Inequity) A person perceives that his or her outcome-input ratio is greater than the ration of a referent.

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Feeling Inequity?

Employees may choose to do the following to respond to inequity:•Change in input (Don’t over excert energy and effort)•Change outcome (Producing high quantity output and sacrificing quality)•Choose a different referent•Quit the job•Change self-perception•Change the perception of others

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Expectancy Theory• Proposed by Victor Vroom in 1964. Vroom focuses on outcomes, not on

needs• Focuses on three relationships:

Effort-performance relationship (Expectancy) Perceived by an individual that by giving some amount of “effort” will

lead to some degree of “performance”.

Performance-reward relationship (Instrumentality) Perception that by performing at a particular level it will lead to obtaining

a desired reward.

Reward-personal goals relationship (Valence) An individual believes that the reward obtained can satisfy personal goals

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