BUSN 221 Chapter 5

Jeff Parsons

Motivation

Learning Objectives

1. Discuss with reference to actual work situations, the determinants of job performance

2. Identify the distinct components of motivation and outline the rationale for each component

3. Critically evaluate the applicability of the theories of Maslow and Alderfer to the contemporary workplace

4. Provide a critical analysis of Herzberg’s two-factor theory vis-à-vis the empirical evidence on employee behaviour

5. Evaluate the relevance of McClelland’s theory to organizations in different societies

Learning Objectives cont’d

6. Provide a pellucid explication of expectancy theory and demonstrate its applicability to the contemporary workplace

7. Assess, with reference to observed workplace behaviours, the value of equity theory to managers

8. Explain how goal setting contributes toward the attainment of higher levels of motivation

9. Discuss the insights that theorizing about prevailing psychological contracts provide in understanding employee motivation

Determinants of Job Performance (pg. 80)

Capacity to Perform

Willingness to Perform

Opportunity to Perform

Job Performance

Determinants of Job Performance

Willingness Individual’s desire and inclination to exert

themselves to perform i.e motivation Capacity

Task-relevant skills, abilities, experience, knowledge

Opportunity Appropriate tools/equipment, technology,

managerial support, attitudes

The presence of willingness (motivation), capacity and opportunity does NOT guarantee high performance

Components of Motivation Direction

What an employee chooses to do when presented with a number of alternatives

Intensity Strength of the response once a choice

(direction) is made Persistence

Length of time a person will continue to devote effort

Content Motivation Theories Focus on factors within the individual

and the needs that motivate

Maslow’s Hierarchy of Needs Alderfer’s ERG Theory Herzberg’s Two-factor theory McClelland’s Learned Needs Theory

Maslow’s Hierarchy of Needs

Physiological

Safety, Security

Belongingness, Social, Love

Esteem

Self Actualization

Alderfer’s ERG Theory

Existence = Maslow physiological and safety

Relatedness = Maslow belongingness, social, love

Growth = Maslow esteem and self-actualization

Herzberg’s Two-Factor Theory Dissatisfiers-Satisfiers or Hygiene

Motivators also called Extrinsic Conditions Needed to maintain “no dissatisfaction” Salary, working conditions, status, company

procedures, quality of interpersonal relationships

Intrinsic factors Build strong motivation resulting in high

performance Achievement, responsibility, recognition,

advancement, work itself

Herzberg’s Two-Factor Theory Significant criticism of Herzberg

Oversimplifies job satisfaction Methodology – people examine themselves

retrospectively No testing of motivational and performance

consequences of the theory Empirical evidence suggests it has merit

McClelland’s Learned Needs Theory

Needs are learned through cultureStrong needs motivate people to behave in ways that satisfy the needs Need for achievement (n Ach) Need for affiliation (n Aff) Need for power (n Pow)

Behaviours reflecting high n Ach

Likes to take responsibility for problem-solving

Tends to set moderate achievement goals and take calculated risks

Desires feedback on performance

Behaviours reflecting high n Pow

Concentrates on obtaining and exercising power and authority

Concerned with influencing others and winning arguments

Power can be negative or positive

Behaviours reflecting high n Aff

Desires social interaction Concerned about the quality of

personal relationships Social relationships take precedence

over task accomplishment

Maslow(need hierarchy)

Self-actualization

Esteem

Belongingness,social, and love

Safety and security

Physiological

Maslow(need hierarchy)

Self-actualization

Esteem

Belongingness,social, and love

Safety and security

Physiological

Herzberg(two-factor theory)

The work itself•Responsibility•Advancement•Growth

AchievementRecognition

Quality of inter-personal relationsamong peers, withsupervisors, withsubordinates

Job security

Working conditionsSalary

Herzberg(two-factor theory)

The work itself•Responsibility•Advancement•Growth

AchievementRecognition

Quality of inter-personal relationsamong peers, withsupervisors, withsubordinates

Job security

Working conditionsSalary

Alderfer

Growth

Relatedness

Existence

Alderfer

Growth

Relatedness

Existence

McClelland

Need forachievement

Need forpower

Need foraffiliation

McClelland

Need forachievement

Need forpower

Need foraffiliation

Motivators

Hygieneconditions

Higherorderneeds

Basicneeds

Comparison of Content Approaches

Theories of Motivation

Content (Maslow, Herzberg, Alderfer, McClelland) Focus primarily on needs and incentives

that cause behaviour Process (Expectancy, Equity, Goal

Setting) Try to explain how behaviour is

energized, directed, maintained and stopped

Expectancy Theory

Employees are more likely to be motivated when they believe that their efforts will result in successful performance and subsequent desired rewards and outcomes. (pg. 91)

Expectancy Theory

First-Level Outcome Productivity, quality of production

Second-Level Outcomes Rewards or punishments Group acceptance or rejection,

promotion, termination

Expectancy Theory

Instrumentality Individual’s perception that first-level

outcomes (performance) result in second-level outcomes (rewards)

Valence Preference for an outcome Positively valent when preferred Negatively valent when not preferred

Equity Theory

“A theory of motivation that examines how a person might respond to perceived discrepancies between his/her input/outcome ratio and that of a reference person.” (pg. 92)

Equity Theory - Terms Person

Individual for whom equity or inequity is perceived

Comparison other Any referent group or people used by person

to compare ratio of inputs and outcomes Inputs

Individual characteristics person brings to job Outcomes

What person received from job

Equity Theory

What happens when there is a perceived inequity?

Change inputs Change attitudes Change reference person Change inputs or outcomes of reference

person Leave

Goal Setting

Definition of a Goal“A result that a person or team is attempting to accomplish through their behaviour and actions.” (pg. 96)

Goal Setting Goal Specificity

Degree of quantitative precision (clarity) of the goal

Goal Difficulty Level of performance required to achieve the

goal Goal Intensity

Process of setting a goal or determining how to reach it

Goal Commitment Amount of effort actually used to reach a goal

Points to consider when implementing Goal Setting Programs

Individual differences such as Personality Career progression Training background Personal health

Psychological Contract

Definition“An unwritten agreement between an employee and the organization that specifies what each expects to give and receive from the other.” (pg. 99)

Motivation and Psychological Contract

Degree to which employees will work hard, commit to goals and derive satisfaction from work dependent on: How closely employee expectations

match organization’s expectations Nature of what is exchanged

Psychological Contract Dynamic i.e. it changes An important aspect of

management’s job

May focus on Satisfaction Challenging work Fair treatment Loyalty Opportunities for creativity