1. Organizational Behavior AUM Lecturer: Arwa Al Twal
Chapter 7
Basic Concepts of Motivation
Chapter Overview
Motivation is one of the major areas of interest in OB. Properly motivating a workforce can lead to
gains in productivity, innovation, and employee retention.
I. INTRODUCTION:
Motivation is a problem in the U.S. workforce. Poorly motivated workers express themselves
through detrimental behaviors such as time wasting, absenteeism, and high turnover. It is
important that motivational theories are understood and applied in the workplace.
II. DEFINING MOTIVATION
Motivation: the processes that account for an individual’s intensity, direction, and
persistence of effort toward attaining a goal, specifically for OB, toward attaining an
organizational goal.
A. Three Key Elements in the Definition:
1. Intensity: how much effort a person puts forth to meet a goal.
2. Direction: efforts are channeled toward organizational goals.
3. Persistence: how long a person maintains effort toward a goal.
III. EARLY THEORIES OF MOTIVATION
These early theories have been heavily attacked and are now considered questionable in terms
of validity. However, it is still important to learn them both as the basis for current theories and
because many practicing managers still use these theories.
A. Maslow’s Hierarchy of Needs Theory. In this, perhaps best known (and least supported)
of all motivational theories, Abraham Maslow proposed that there are five levels of human
needs. As each of the lower level needs are satisfied, the next unsatisfied need becomes
dominant. Satisfied needs no longer motivate; only unsatisfied needs motivate people.
1. Physiological: lower order need, includes hunger, thirst, shelter, sex, and other bodily
needs. Lower order needs are satisfied externally, through forces outside of the person.
2. Safety: lower order need, includes security and protection from physical and emotional
harm.
3. Social: upper order need, includes affection, belongingness, acceptance, and friendship.
Upper order needs are satisfied internally, that is, from within the person.
4. Esteem: upper order need, includes internal (self-respect, autonomy, and achievement)
and external (status, recognition, and attention) esteem factors.
5. Self-actualization: upper order need, defined as the drive to “be all one can be” it
includes growth, achieving one’s potential, and self-fulfillment.

2. Organizational Behavior AUM Lecturer: Arwa Al Twal
To motivate someone you need to know/understand what level of the hierarchy that person is
currently on, and focus on satisfying the needs at or above that level.
B. McGregor’s Theory X and Theory Y. Douglas McGregor’s theory proposed that there were
two basic views of human nature, one essentially negative (Theory X) and the other positive
(Theory Y). Which view a manager believed was true would give that manager a pre-set
series of assumptions and related behaviors.
1. Theory X. In this negative view of human nature, workers are inherently dislike work
and must be directed or even coerced into performing it (little ambition, lazy and avoid
responsibility)
2. Theory Y. In this positive view, employees view work as being as natural as rest or play.
Therefore, they can learn to accept and even seek responsibility. ( self directed, enjoy
work and accept responsibility)
3. In Maslow’s terms:
a. A Theory X viewpoint means that lower-order needs dominate individual needs.
b. A Theory Y viewpoint means that higher-order needs dominate individual needs.
Per McGregor’s guidance, managers who hold to this view tend to use participative
decision-making, create responsible and challenging jobs, and build good group
relations in an attempt to motivate employees.
4. Unfortunately, as with Maslow’s theory, there is no research evidence that either view
of human nature is valid or that taking actions based on Theory Y will increase
motivation in workers.
C. Herzberg’s Two-Factor (Motivation-Hygiene) Theory. Frederick Herzberg proposed
that an individual’s relation to work is basic and that one’s attitude toward work can very
well determine success or failure of organizations. In other words, things that people feel
good about at work are motivating and those things they don’t feel good about are de-
motivating.
1. In his research, Herzberg asked “what people want from their job?” , he asked the
candidates to explain in details situations they felt good ( satisfying situations) or bad (
dissatisfying situations) at work. Herzberg realized that the opposite of satisfaction is
not dissatisfaction; rather there are two different factor scales, one ranging from
satisfaction to no satisfaction and the other from dissatisfaction to no dissatisfaction.
When he related a number of workplace factors against these two scales, he realized
they were very different concepts. He called the first set of factors motivation factors
(motivators) and the second hygiene factors.
a. Hygiene Factors. ( factors to avoid unpleasantness at work) These workplace
factors, when not met, lead to job dissatisfaction. When they are met, they do NOT
lead to job satisfaction, but rather, to a lack of dissatisfaction. Therefore, meeting
hygiene factors does NOT increase motivation it merely placates the workers.
Hygiene factors include quality of supervision, pay, company policies, physical
working conditions, relations with others, and job security.
b. Motivation Factors. These are intrinsically rewarding factors in the work
environment such as promotion and personal growth opportunities, recognition,
responsibility, and achievement. Meeting these factors will increase motivation by
creating a satisfying work environment.
2. As with the other two main motivational theories, this very popular theory is also not
well supported in the research literature. There are many criticisms of the Two-Factor
Theory, mostly dealing with the methodology Herzberg used in his initial studies.
- Participants had self serving bias

3. Organizational Behavior AUM Lecturer: Arwa Al Twal
- Errors in observation
- No overall measure of satisfaction was used
- Herzberg assumed but didn’t research, a strong relationship between satisfaction
and productivity.
D. McClelland's Theory of Needs. David McClelland and his associates created a theory
based on three subconscious needs:
1. Need for Achievement (nAch): the drive to excel and to achieve in relation to a set of
standards. High achievers perform best when they have a 50-50 chance of success.
Achievers perform best in jobs with a high degree of personal responsibility and
feedback with an intermediate degree of risk..
a. High achievers tend to be successful entrepreneurs.
b. A high need for achievement does not necessarily mean the person would be a good
manager for larger organizations, as his or her desire for personal recognition
supersedes his or her concern for the organization.
2. Need for Power (nPow): the need to make others behave in a way they would not have
behaved otherwise.
3. Need for Affiliation (nAff): the desire for friendly and close interpersonal relationships.
4. The best managers appear to be those with a high need for power and a low need for
affiliation.
5. McClellan’s theory has the best research support, but has the least practical effect of any
of the early motivational theories.
IV. CONTEMPORARY THEORIES OF MOTIVATION
A. Unlike the historic theories of motivation, these current theories of motivation do have a
reasonable degree of supporting documentation. It is important to remember that these are
still theories. None of these has been totally proven true.
B. Self-Determination Theory
1. A theory of motivation that is concerned with the beneficial effects of intrinsic
motivation and harmful effects of extrinsic motivation.
2. People prefer to feel they have control over their actions, so anything that makes a
previously enjoyed task feel more like an obligation than a freely chosen activity will
undermine motivation.
3. Much research on self-determination theory in OB has focused on cognitive evaluation
theory( a version of self determination theory), which hypothesizes that extrinsic
rewards will reduce intrinsic interest in a task. In other words, allocating extrinsic
rewards for a behavior that had been previously intrinsically rewarding tends to
undermine the overall level of motivation if the rewards are seen as “controlling”.
4. Goal setting is more effective in improving motivation, for instance, when we provide
rewards for achieving the goals.
5. The original authors of self-determination theory acknowledge that extrinsic rewards
such as verbal praise and feedback about competence can improve even intrinsic
motivation under specific circumstances.
6. Deadlines and specific work standards do, too, if people believe they are in control of
their behavior.

4. Organizational Behavior AUM Lecturer: Arwa Al Twal
a. This is consistent with the central theme of self-determination theory: rewards and
deadlines diminish motivation if people see them as coercive.
7. What does self-determination theory suggest for providing rewards? Consider two
situations.
a. If a senior sales representative really enjoys selling and making the deal, a
commission indicates she’s been doing a good job at this valued task.
b. The reward will increase her sense of competence by providing feedback that could
improve intrinsic motivation.
c. On the other hand, if a computer programmer values writing code because she likes
to solve problems, a reward for working to an externally imposed standard she does
not accept could feel coercive, and her intrinsic motivation would suffer.
d. She would be less interested in the task and might reduce her effort.
8. A recent outgrowth of self-determination theory is self-concordance, which considers
how strongly peoples’ reasons for pursuing goals are consistent with their interests and
core values.
a. If individuals pursue goals because of an intrinsic interest, they are more likely to
attain their goals and are happy even if they do not. Why? Because the process of
striving toward them is fun.
b. In contrast, people who pursue goals for extrinsic reasons (money, status, or other
benefits) are less likely to attain their goals and less happy even when they do
achieve them.
c. Why? Because the goals are less meaningful to them.
9. OB research suggests that people who pursue work goals for intrinsic reasons are more
satisfied with their jobs, feel like they fit into their organizations better, and may
perform better.
10. What does all this mean?
a. It means choose your job for reasons other than extrinsic rewards.
b. For organizations, it means managers should provide intrinsic as well as extrinsic
incentives.
1) They need to make the work interesting, provide recognition, and support
employee growth and development. Employees who feel what they do is within
their control and a result of free choice are likely to be more motivated by their
work and committed to their employers.
C. Goal-Setting Theory.
1. This theory studies the effects goal specificity, challenge, and feedback has on
performance. The study of goal setting has created the following general rules:
2. Specific goals produce a higher level of output than do generalized goals. (because it
acts as internal stimulus)
3. Typically, the more difficult the goal, the higher level of performance, assuming that goal
has been accepted by the employee. This is because:
a. Difficult goals focus attention on the task and away from distractions.
b. Difficult goals energize employees.
c. Difficult goals tend to make people persist in efforts toward attaining them.
d. Difficult goals force employees to discover strategies to help them perform the task
or job more effectively.
4. Feedback is important in goal-setting theory, especially self-generated feedback. (It’s
more powerful motivator comparing to externally generated feedback).

5. Organizational Behavior AUM Lecturer: Arwa Al Twal
5. The question of whether participative goal-setting increases motivation has not yet
been resolved. The assumption is that when employees are involved in setting the
goals, they have greater buy-in and therefore will have a higher level of commitment.
When employees don’t participate in goal setting, the manager must take pains to
explain the purpose and importance of the goal.
6. Contingencies in goal-setting theory:
a. Goal Commitment. Commitment increases when goals are made public and when
goals are self-set rather than assigned.
b. Task Characteristics. Goals are better in terms of performance on simple rather
than complex tasks, when tasks are familiar, and when they are accomplished by a
single individual.
c. National Culture. It is important that the key components of goal-setting theory
match the culture traits.
7. Implementing Goal-Setting. Setting specific, challenging goals for employees is the best
thing managers can do to improve performance. However, it appears that few managers
actually set goals for their employees. One of the ways an organization can ensure this
happens is through Management by Objectives (MBO).
D. Management by Objectives (MBO). To formalize goal-setting theory into an organization
one of the more effective ways to do this is through management by objectives. MBO
emphasizes participatively set goals that are tangible, verifiable, and measurable.
MBO operationalizes the concept of objectives by devising a process by which objectives
cascade down through the organization. The result of MBO is a hierarchy of objectives that
build toward organizational objectives. It also provides specific performance goals for
individuals.
1. MBO and Goal-Setting. The primary difference between MBO programs and goal-setting
theory relates to the issue of participation. MBO strongly advocates it, while goal-
setting theory demonstrates that having managers assign goals is usually just as
effective.
E. Bandura's Self-Efficacy Theory (also known as "social cognitive theory" or "social learning
theory"). Typically, people with high self-efficacy respond better to challenges and negative
feedback than those with low self-efficacy.
Self-efficacy: an individual's belief that he or she is capable of performing a task.
1. Goal-Setting Theory and Self-Efficacy Theory Complement Each Other. When managers
set difficult goals for employees, this leads employees to have a higher level of self-
efficacy and they set higher goals on their own. This is because when managers set
difficult goals for people, it communicates their confidence in those people.
2. Four Ways to Increase Self-Efficacy:
a. Enactive Mastery: gaining relevant experience with the task or job. Past success in a
task increases future confidence. ( ex: training)
b. Vicarious Modeling: becoming more confident because another person is observed
doing the task. ( more effective when the observer see the model similar to his/her)
c. Verbal Persuasion: confidence gained because another person convinces the target
individual of the target's abilities. (ex: you have the skill to do it!)
d. Arousal: an energized state, when a person gets psyched up which may drive a
person to complete a task. (ex: you can do it its easy, be careful you have to be
accurate). Sometimes its helpful, in other times it may influence performance
negatively.

6. Organizational Behavior AUM Lecturer: Arwa Al Twal
3. Personality and Intelligence. While not part of self-efficacy theory, intelligence,
conscientiousness, and emotional stability have all been shown to increase self-efficacy.
In fact, the relationship is so strong that some researchers believe that self-efficacy itself
is merely a reflection of the effects of a highly confident personality.
F. Adams' Equity Theory.
1. A theory that says that individuals compare their job inputs and outputs to others and
then respond to eliminate any inequities.
2. Most research on this theory focused on pay as outcome!
3. The view of this theory holds that motivation can be affected by the comparisons
employees make of their job inputs (effort, experience, education, confidence) and the
job's outcomes (salary levels, raises, recognition) relative to the inputs and outcomes of
other employees. If the ratios of inputs to outputs are roughly equal between
employees, a state of equity is said to exist.
4. The situation is perceived to be fair.
a. However, when the ratios are seen as unequal, employees may experience tension
and emotion.
b. Employees who believe they are under-rewarded may be angry, while those who
feel they are over-rewarded might feel guilty.
c. This emotional tension provides the motivation to do something to correct the
situation.
5. Referent Comparisons. The individuals that the employees compare themselves to
(their referents) can vary widely and add complexity to the model. The four basic
comparisons are:
a. Self-Inside: an employee's own experiences in a different position within the current
organization.
b. Self-Outside: an employee's experiences in the situation or position outside the
current organization.
c. Other-Inside: other individuals within the current organization.
d. Other-Outside: other individuals outside the employee's current organization.
Moderating Variables ( gender, Tenure, level of education and professionalism).
The selection of which referent to use in comparison depends on the amount of
information he/she has and the attractiveness of the referent. (plus the factors
above)
e. .Both genders prefer same-sex comparisons. Women generally are okay with the
lower payment in jobs if compared to men who prefer higher payment for the same
job! Thus if women compare themselves to men this tends to calculate lower
comparative standard.
f. Employees with short tenure tend to have little info about others inside the
organization so they rely on personal experiences for comparisons ( Self-
inside)..long tenure ( other-inside)
g. If employees have high level of education and professionalism they tend to have
better info about people in other organizations and will make more “ other-outside”
comparisons.
6. Equity Theory and Inequitable Pay. The purpose of each of the prepositions is to bring
the ratios back into balance.
a. When paid based on time (hourly wages or salary), over-rewarded employees will
produce more than will equitably paid employees.

7. Organizational Behavior AUM Lecturer: Arwa Al Twal
b. When paid by quantity of output (piecework), over-rewarded employees will
produce fewer, but higher-quality, units than will equitably paid employees.
c. When paid based on time, under-rewarded employees will produce less output or
output of poorer quality.
d. When paid by the piece, under-rewarded employees will produce a large number of
low quality units in comparison with equitably paid employees.
Research has shown that overpayment does not have a very significant effect on
behavior in most work situations and that not all people are equally equity sensitive.
G. Vroom's Expectancy Theory.
A theory that says that 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 to the individual.
1. This widely accepted theory explains motivation as a coupling of three beliefs:
a. effort will lead to a good performance appraisal,
b. good appraisals will lead to organizational rewards, and ]
c. Organizational rewards will satisfy the employee's personal goals.
d. The relationship between these three beliefs and the strength of the links between
them are the focus of this theory.
Effort -----performance-----organizational rewards-----personal goals
2. The Three Key Relationships:
a. Effort-Performance Relationship.
1) The probability perceived by the individual that exerting a given amount of
effort leads to successful performance.
2) If the employee believes that effort will not result in successful performance or
that the performance will not be accurately reflected in the performance
appraisal, little effort will be expended.
b. Performance-Reward Relationship.
1) The degree to which the individual believes that performing at a particular level
will lead to the attainment of a desired outcome. Unless the relationship
between strong performance appraisals and rewards is clear, little effort will be
expended to achieve those high appraisal marks.
c. Rewards-Personal Goals Relationship.
1) The degree to which organizational rewards satisfy an individual's personal
goals (or needs) and the attractiveness of those potential rewards for the
individual.
2) Unless organizational rewards are tailored to individual employee wants and
needs, they will not be very motivational and little effort will be expended.
d. While the research results are mixed, there is reasonable support for this theory.
1) It may be considered somewhat idealistic, considering the current realities of
the workplace.
2) This theory may explain why such a large portion of the workforce exhibits low
levels of effort in carrying out job responsibilities as most companies do not
reward for performance.

8. Organizational Behavior AUM Lecturer: Arwa Al Twal
V. GLOBAL IMPLICATIONS
A. It must be noted that most motivational theories have been developed in the United States;
based on, and for, Americans.
1. For instance, both goal setting and expectancy theories emphasize goal accomplishment
and rational individual thought: characteristics consistent with U.S. culture.
2. Other cultures that do not share the cultural traits of the United States may not find
these theories very useful.
B. Maslow's Needs Hierarchy. In cultures that do not share American traits, the hierarchical
order of needs may be out of sequence.
C. McClelland's Three Needs Theory. The need for achievement presupposes certain cultural
characteristics such as moderate degree of risk acceptance and a concern with performance.
These two cultural characteristics are not universal, and therefore the need for achievement
may not be as powerful in other cultures.
D. Adams' Equity Theory. This theory is very closely tied to American pay practices and may
not be relevant in collectivistic or former socialistic cultures in which there is more of a
sense of entitlement or the desire to be paid based on need rather than performance.
E. Hertzberg's Two-Factor Theory. This theory does show some cross-cultural consistency.
The desire for interesting work, growth, achievement, and responsibility, all intrinsic
motivation factors in Hertzberg's theory, do seem to be supported across a number of
cultures.
VI. IMPLICATIONS FOR MANAGERS
A. An important consideration for managers when reviewing these motivational theories is to
determine their relevance, which outcomes they are measuring or influencing, and their
relative predictive power.
1. Need Theories (Maslow, Hertzberg, and McClelland). In general, need theories are not
very valid explanations of motivation, although McClellan’s theory of the relationship
between achievement and productivity comes the closest. Maslow’s theory, although
popular, is not particularly useful.
2. Goal-Setting Theory. This theory is very effective in explaining the effect of clear and
difficult goals and productivity.
3. Equity Theory/Organizational Justice. While this theory does address a number of
managerial concerns, the primary aid to managers is an understanding of the more
supported concept of organizational justice.
4. Expectancy Theory. A relatively powerful tool to explain employee productivity,
absenteeism, and turnover. However, it may not be directly applicable as many of its
assumptions, similar to those of the rational model of decision-making, are not very
realistic.
B. Overall, motivation theories of the most research, and the most recent support, probably
deserve the most attention by managers. Fortunately, these theories (goal-setting,
organizational justice, and expectancy) do contain within them practical suggestions for
how to make workplaces more motivating.
VII. Keep in Mind
A. Make goals specific and difficult
B. Motivation can be increased by raising employee confidence in their own abilities
(self-efficacy)
C. Openly share information on allocation decisions, especially when the outcome is
likely to be viewed negatively