Maslow’s-Hierarchy of Needs Theory Alderfer's ERG Theory McClelland’s Theory of Needs Herzberg's Two Factor Theory Carrot and Stick Theory Vroom’s Expectancy Theory Equity Theory

1. MOTIVATION
Shilpi Arora

2.  Is the process by which a person’s efforts are energized, directed, and
sustained towards attaining a goal.
 Stephen P. Robbins defines motivation as “The willingness to exert high
levels of effort towards organizational goals, conditioned by the effort’s
ability to satisfy some individual need.”
 Work Motivation is to make an environment for others to work and
perform more efficiently and also will lead to deliver much outputs and
effective results.

3. Need of Motivation
 Every concern requires physical, financial and human resources to
accomplish the goals.
 It is through motivation that the human resources can be utilized by
making full use of it.
 This can be done by building willingness in employees to work. This
will help the enterprise in securing best possible utilization of
resources.

4. Importance of Motivation For Organization
 Motivating employees can lead to increased productivity and allow an
organization to achieve higher levels of output.
 Motivation is generally what energizes, maintains, and controls behavior.
 Motivated employees will retain a high level of innovation while producing higher-
quality work at a higher level of efficiency.

5. Classification of Motives
Primary Motives: satisfies both the criteria – it is not learned and it is physiologically based.
The most common primary motives are hunger, thirst, sleep, avoidance of pain.
Since all human beings have the same basic physiological makeup, they all have the same
primary needs.
General Motives: which are neither purely primary nor purely secondary, but rather something
in between.
It is not learned, but is also not based on physiological needs. General motives are, therefore,
also called “stimulus motives.”
The motives of curiosity, manipulation, motive to remain active and to display affection
are examples of general motives.

6.  Secondary Motives:
 A secondary motive is a motive that has been learned or acquired over time.
Some important secondary motives are power, achievement and affiliation.
Intrinsic Motivation: Acceptance, Curiosity, Honor, Power, Order, Social
connect, Social Status
Extrinsic Motivation: Employee of the month award, Benefit package,
Bonuses, Organized activities

7. Motivational Factors:
 Monetary Factors:
Salaries or Wages
Bonus
Incentives
 Non-Monetary Factors:
Status or job title
Appreciation and recognition
Job security
Working conditions
Good superiors
Flexible working hours

8. Motivation Theories

9. Motivational Theories
 Maslow’s-Hierarchy of Needs Theory
 Alderfer's ERG Theory
 McClelland’s Theory of Needs
 Herzberg's Two Factor Theory
 Carrot and Stick Theory
 Vroom’s Expectancy Theory
 Equity Theory

10. Maslow’s-Hierarchy of Needs Theory
 Needs were categorized as five levels of
lower- to higher-order needs. Individuals must
satisfy lower-order needs before they can
satisfy higher order needs.
 Satisfied needs will no longer motivate.
 Motivating a person depends on knowing at
what level that person is on the hierarchy.

11. Theory X and Theory Y- Douglas
McGregor IN 1960
 Theory X and Theory Y were first explained by McGregor in his book,
 'The Human Side of Enterprise,' and they refer to two styles of management
authoritarian (Theory X) and participative (Theory Y).
 There are two styles of management – authoritarian (Theory X) and
participative (Theory Y).

12. Theory X
 Theory X managers tend to take a pessimistic view of their people, and assume that they are
naturally unmotivated and dislike work.
 They think that team members need to be prompted, rewarded or punished constantly to
make sure that they complete their task.
This style of management assumes that workers:
 Dislike their work.
 Avoid responsibility and need constant direction.
 Have to be controlled, forced and threatened to deliver work.
 Need to be supervised at every step.
 Have no incentive to work or ambition, and therefore need to be enticed by rewards to
achieve goals.

13. Theory Y
 Theory Y managers have an optimistic, positive opinion of their people, and they
use a decentralized, participative management style.
 This encourages a more collaborative, trust based relationship between managers
and their team members.
 People have greater responsibility, and managers encourage them to develop
their skills and suggest improvements.
 Appraisals are regular but, unlike in Theory X organizations, they are used to
encourage open communication rather than control staff.
 Theory Y organizations also give employees frequent opportunities for promotion

14. Theory Y
 This style of management assumes that workers are:
 Happy to work on their own initiative.
 More involved in decision making
 Self-motivated to complete their tasks.
 Seek and accept responsibility, and need little direction.
 View work as fulfilling and challenging.
 Solve problems creatively and imaginatively

15. Herzberg’s Two-Factor Theory of Motivation
 The two-factor theory of motivation was developed by Frederick Herzberg as an extension
of Maslow’s work.
 Motivators and hygiene factors were the two factors in Herzberg’s two-factor theory
 The satisfiers were termed as motivators, while dissatisfiers were termed as hygiene
 While hygiene factors were responsible for preventing dissatisfaction, motivators were
essential to keep the employees satisfied.

16. Contribution of Herzberg’s Theory to Work Motivation
 The theory proposed that managers would not be able to motivate employees if they
were to focus only on the hygiene factors.
 To sum up, Herzberg considered hygiene factors to be very important for an
organization to maintain its human resources.
 Employees are motivated only if they have a challenging job which not only gives
them an opportunity to achieve something, get recognition, advance in their careers
and grow in the organization, but also allows them to handle greater responsibilities.

17. Alderfer’s ERG Theory
 Clayton Alderfer proposed another theory called ERG theory of work motivation as an
extension of Herzberg’s theory and of Maslow’s needs hierarchy.
 Alderfer recognized the importance of categorizing needs and saw that there was a definite
distinction between lower-level and higher-level needs.
 According to Alderfer, there are three basic groups of core needs:
 Existence Need
 Relatedness Needs
 Growth Needs

18. McClelland’s Theory of Needs
 This was developed by the Harvard psychologist David McClelland.
 The theory focuses on three needs given below:
 Need for Achievement (nAch)
 Need for Power (nPow)
 Need for Affiliation (nAff)

19. Comparison Between the Content Theories
of Motivation

20. Process Theories of Motivation
 Equity Theory:
 Equity theory was first developed in 1963 by Jane Stacy Adams.
 It says that individuals compare their job inputs and outcomes with those of others
and then respond to eliminate any inequalities.
 The higher an individual's perception of equity, the more motivated they will be.
 If someone perceives an unfair environment, they will be demotivated.

22. Adam’s equity theory diagram

23. Comparisons are made to:

24. Referent comparisons are categorised
under:
 SELF INSIDE :- An employee’s experiences in a different position inside the
employee’s current organisation.
 SELF OUTSIDE :- An employee’s experiences in a situation or position outside
the employee’s current organisation.
 OTHER INSIDE :- Another individual or group of individuals inside the
employee’s organisation.
 OTHER OUTSIDE :- Another individual or group of individuals outside the
employee’s organisation.

25. The structure of equity in the workplace is
based on the ratio of inputs to outcomes.

26. Expectancy Theory
 The expectancy theory was proposed by Victor Vroom of Yale School of
Management in 1964.
 Vroom stresses and focuses on outcomes, and not on needs unlike Maslow and
Herzberg.
 The theory states that the intensity of a tendency to perform in a particular
manner is dependent on the
> intensity of an expectation that the performance will be followed by a
definite outcome and
> on the appeal of the outcome to the individual.

28.  The Expectancy theory states that employee’s motivation is an outcome of
 how much an individual wants a reward (Valence),
 the assessment that the likelihood that the effort will lead to expected performance
(Expectancy) and the
 belief that the performance will lead to reward (Instrumentality).
 Valence is the significance associated by an individual about the expected outcome. It
is an expected and not the actual satisfaction that an employee expects to receive
after achieving the goals.
 Expectancy is the faith that better efforts will result in better performance.
Expectancy is influenced by factors such as possession of appropriate skills for
performing the job, availability of right resources, availability of crucial information
and getting the required support for completing the job.

29. Instrumentality
 Instrumentality is the faith that if you perform well, then a valid outcome will be
there
 Vroom was of view that employees consciously decide whether to perform or not at
the job. This decision solely depended on the employee’s motivation level which in
turn depends on three factors of expectancy, valence and instrumentality
 Advantages of the Expectancy Theory
 This theory stresses upon the expectations and perception; what is real and actual is
immaterial.
 It emphasizes on rewards or pay-offs.

30. CONCLUSION
 The managers can correlate the preferred outcomes to the aimed
performance levels.
 The managers must ensure that the employees can achieve the aimed
performance levels.
 The deserving employees must be rewarded for their exceptional
performance.
 The employee’s motivation level should be continually assessed through
various techniques such as questionnaire, personal interviews, etc.

31. The Porter-Lawler Model
 Porter and Lawler came up with a comprehensive theory of motivation.
 This model has been practically applied also in their study of managers.
 This is a multi variate model which explains the relationship that exists
between job attitudes and job performance.

32. The Porter-Lawler Model - Assumptions
 it is a multi variate model. According to this model, individual behavior is
determined by a combination of factors in the individual and in the
environment.
 Individuals are assumed to be rational human beings who make conscious
decisions about their behaviour in the organisations.
 Individuals have different needs, desires and goals.
 On the basis of their expectations, individuals decide between alternate
behaviors and such decided behavior will lead to a desired outcome.

33.  Effort: Effort refers to the amount of energy which a person exerts on
a job.
 Value of Reward: whether the rewards that are likely to be received
from doing a job will be attractive to them. This is referred to as
valence in Vroom’s theory. A person who is looking for more money, for
example, extra vacation time may not be an attractive reward.
 If the reward to be obtained is attractive or valent then the individual
will put extra efforts to perform the job. otherwise he will lower his
effort.
The Porter-Lawler Model - Elements

34. Perceived Effort Reward Probability:
Before people put forth any effort, they will also try to assess the
> probability of a certain level of effort leading to a desired level of performance
> possibility of that performance leading to certain kinds of rewards.
Performance:
Effort leads to performance. The expected level of performance will depend upon the
amount of effort, the abilities and traits of the individual and his role perceptions.
Abilities include knowledge, skills and intellectual capacity to perform the job.
Traits which are important for many jobs are endurance, and goal directedness

35.  Rewards: Performance leads to certain outcomes in the shape of two types of
rewards namely extrinsic rewards and intrinsic rewards.
 Extrinsic rewards are the external rewards given by others in the organization in
the form of money, recognition or praise.
 Intrinsic rewards are internal feelings of job sell esteem and sense of
competence that individuals feel when they do a good job.
 Satisfaction:
 For being satisfied, an individual will compare his actual rewards with the
perceived rewards if actual rewards meet or exceed perceived equitable
rewards, the individual will feel satisfied and if these are less than the equitable
rewards, the individual will feel dissatisfied

37. Significance of the Porter and Lawler
Model:
 This model is of great significance to managers since it sensitises them to focus
their attention on the following points to keep their employees motivated:
 Putting the right person on the right job.
 Carefully explain to the subordinates what they must do to be rewarded.
 Prescribe the actual performance levels expected of the individuals.
 To achieve and maintain motivation, the appropriate reward must be associated with
successful performance.
 Make sure that the rewards dispensed are valued by the employees.