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Unit 4, motivation theories
Unit 4, motivation theories
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This slide goes through various aspects of motivation and how can employee be motivated is explained here.


  1. 1. What is Motivation  “Motivation is the process of attempting to influence others to do yours will through the possibility of gain reward”. - Eduir B. Flippo  Motivation is the inner power or energy that pushes one toward performing a certain action. Motivation strengthens the ambition, increases initiative and gives direction, courage, energy and the persistence to follow one's goals.
  2. 2. Definition of Motivation  Motivation refers to forces within an individual that account for the level, direction, and persistence of effort expended at work.  Direction— an individual’s choice when presented with a number of possible alternatives.  Level — the amount of effort a person puts forth.  Persistence — the length of time a person stays with a given action.
  3. 3. Importance of Motivation  Improves Performance Level: Motivation improves efficiency. The efficiency of a person reflected through increase in productivity and decrease in costs.  Helps to change Negative or Indifferent Attitudes of Employees.  Reduction in Employee Turnover: Motivated people work for a longer time in the organization and there is a decline in the rate of turnover.  Helps to reduce Absenteeism in the Organization.  Reduction in Resistance to change.
  4. 4. Characteristics of Motivation  Motivation is an Internal Feeling.  Motivation is related to needs.  Motivation produces Goal-Directed Behavior.  Motivation can be either positive or negative.  Motivation is a Psychological concept.  Motivation affects the whole individual, not part of him/her.  Motivation is different from satisfaction, inspiration, and manipulation.
  5. 5. Motivational Skills  The ability to create organizational situations in which individuals performing organizational activities are simultaneously satisfying personal needs and helping the organization attain its goals.  Motivational skills are those that enable a person to become motivated and work toward achieving goals, whatever they might be.
  6. 6. Elements of Motivation  Need : physiological or psychological deficiency or imbalance in an individual will result in a need.  Drive: physiological drive is a condition which causes a person to work in a particular direction.  Incentive : anything that mitigate the drive and decrease the intensity of the drive Physiological/ Psychological deficiency (NEED) Individual behaves in a certain manner (DRIVE) Achieves a particular goal (INCENTIVE)
  7. 7.  INTRINSIC MOTIVATION The stimuli for motivation are rooted inside the individual .One desires to perform because its results are in accordance to one’s belief system. Our deep rooted desire have the highest motivational power. It is intangible. Examples: Acceptance, curiosity, honour etc.  EXTRINSIC MOTIVATION Individual’s motivational stimuli come from outside .That is the desire to perform is controlled by an outside source. The most common example is money . It can be tangible as well as intangible. Types of Motivation
  8. 8.  ACHIEVEMENT : This is the motivation of a person to attain goals. The longing for achievement is inherent in every man, however, not all persons look to achievement as their motivation.  CURIOSITY: The curiosity to explore the unexplored realms has always motivated mankind. No discovery or invention is ever possible without curiosity being involved in the process.  ENJOYMENT People are motivated to do a piece of work because they enjoy doing it. e.g. Sportsperson playing a sport. Intrinsic Motivation
  9. 9.  CHALLENGE People are best motivated when they are working toward personally meaningful goals whose attainment requires activity at a continuously optimal (intermediate) level of difficulty.  COMPETITION Employees feel satisfaction by comparing their performance favourably to that of others . This motivates them to perform better.
  10. 10. Extrinsic Motivation  MONEY It is the biggest source of extrinsic motivation.  INCENTIVE MOTIVATION This motivation involves rewards. People who believe that they will receive rewards for doing something are motivated to do everything they can to reach a certain goal. While achievement motivation is focused on the goal itself, incentive motivation is driven by the fact that the goal will give people benefits.  VERBAL APPRECIATION Verbal praise, such as telling someone they did a good job, is a simple and often effective means of extrinsic motivation. Explaining in detail the reasons for the praise increases the effectiveness of this type of motivation.
  11. 11.  WRITTEN APPRECIATION A note or letter of thanks is another form of extrinsic motivation. Written feedback can boost the ego, and is typically remembered longer than verbal praise.  PUBLIC RECOGNITION Businesses recognize employees through company publications, encouraging higher achievement.  FEAR This is often seen in companies as working hand-in-hand with incentive motivation. Workers are often faced with a reward and punishment system, wherein they are given incentives if they accomplish a certain goal, but they are given punishments when they disobey certain policies.
  12. 12. Types of Motivation Techniques  Positive Motivation: • Praise and credit for work done • Wages and Salaries • Appreciation • Delegation of authority and responsibility.  Negative Motivation: • Motivation based on force and fear. • Involves the possibility of decreased motive satisfaction. • Push mechanism is used. • It results in frustration.
  13. 13. Theories of Motivation  Traditional Theories 1. Maslow’s Hierarchy of needs Theory 2. Adam’s Equity Theory 3. Herzberg’s Two-factor Theory 4. McGregor’s Theory X and Y  Modern Theories 1.Alderfer’s ERG Theory 2. Vroom’s Expectancy Theory 3. Locke’s Goal Setting Theory 4. McClelland’s Acquired needs Theory 5. Porter and Lawler Motivation Theory
  14. 14. Traditional Theories Of Motivation
  15. 15.  What do people need? Well, it depends on the circumstances.  If you're living in poverty in a famine area, your most important need is food. On the other hand, if you're living in physical comfort but are isolated from people you know, your top priority will be gaining access to friends or family 1. Abraham Maslow’s “Need Hierarchy Theory”
  16. 16. So people have needs depending on their circumstances. This is the basis for Maslow's Hierarchy of Needs , one of the best-known theories of motivation. It argues that there are five levels of need, and that these are hierarchical, such that lower level needs must be satisfied before higher ones
  17. 17. (I) Physiological needs: These are important needs for sustaining the human life. Food, water, warmth, shelter, sleep, medicine and education are the basic physiological needs which fall in the primary list of need satisfaction. Without this no other motivation factors work. (II) Security or Safety needs: These are the needs to be free of physical danger and of the fear of losing a job, property, food or shelter. It also includes protection against any emotional harm. (III) Social needs: Since people are social beings, they need to belong and be accepted by others. People try to satisfy their need for affection, acceptance and friendship.
  18. 18. (IV) Esteem needs: According to Maslow, once people begin to satisfy their need to belong, they tend to want to be held in esteem both by themselves and by others. This kind of need produces such satisfaction as power, prestige status and self-confidence. It includes both internal esteem factors like self-respect, autonomy and achievements and external esteem factors such as states, recognition and attention. (V) Need for self-actualization: Maslow regards this as the highest need in his hierarchy. It is the drive to become what one is capable of becoming; it includes growth, achieving one’s potential and self-fulfillment. It is to maximize one’s potential and to accomplish something.
  19. 19.  Proposed by J. Stacey Adams  This theory states that the degree of equity or inequity perceived by an employee with reference to his work situation plays a major role in work performance and satisfaction.  Employees generally compares their output – input ratio with that of others. If they perceives the ratio of their outcomes and inputs are equal to that of their peers and others , it will result in equity. 2. Adam’s Equity Theory
  20. 20. Reference Comparisons used by Employees: 1. Self-inside (Same Organization, Same position) 2. Self-outside (Different Organization, Same position) 3. Other-inside (Same Organization, Different position) 4. Other-outside (Different Organization, Different position)
  21. 21. If an employee perceives an inequity, he will make certain choices: 1. Change in inputs: he may reduce the effort he puts in a particular job . 2. Change in outcomes: the employee may act in a manner that brings about change in the outcome or end result. 3. Distort perceptions of self: the employee may distort the perception he held about his own performance. 4. Distort perception of others: an employee may change the way he perceives others jobs, positions and productivity.
  22. 22. Conclusion: If people feel that they are not equally rewarded they either reduce the quantity or quality of work or migrate to some other organization. However, if people perceive that they are rewarded higher, they may be motivated to work harder.
  23. 23. 3. Frederick Herzberg’s two-factor theory  Also known as Herzberg's motivation-hygiene theory and dual- factor theory.  It states that there are certain factors in the workplace that causes job satisfaction, while a separate set of factors causes dissatisfaction.  Two factors which affect motivation: 1. Hygiene factors 2. Motivational factors
  24. 24. Hygiene Factors  Herzberg used the term "hygiene" in the medical sense- the sense that it operates to remove hazards from the environment.  These are factors whose absence brings dissatisfaction, but whose presence has no perceived effect. Hygiene Factors Rate of Pay Quality of Supervision Job Security Company Policies Work Conditions
  25. 25. Motivational Factors  These are factors whose presence motivates. Their absence does not cause any particular dissatisfaction, it just fails to motivate. Motivational Factors Career Advancement Personal Growth RecognitionResponsibility Achievement
  26. 26. Satisfaction And Dissatisfaction  Satisfaction which is mostly affected by the "motivation factors". Motivation factors help increase the satisfaction but aren't that affective on dissatisfaction.  Dissatisfaction is the results of the "hygiene factors". These factors, if absent or inadequate, cause dissatisfaction, but their presence has little effect on long-term satisfaction.
  27. 27. Conclusion  The opposite of Satisfaction is No Satisfaction.  The opposite of Dissatisfaction is No Dissatisfaction.
  28. 28. Steps to apply two factor theory: Step One: Eliminate Job Dissatisfaction  Fix poor and obstructive company policies.  Provide effective, supportive and non-intrusive supervision.  Ensure that wages are competitive.  Build job status by providing meaningful work for all positions.  Provide job security.
  29. 29. Step Two: Create Conditions for Job Satisfaction  Providing opportunities for achievement.  Recognizing people's contributions.  Rewarding.  Giving as much responsibility to each team member as possible.  Providing internal promotions.  Offering training and development opportunities.
  30. 30. 4. Mcgregor’s Theory X and Y
  31. 31. Modern Theories Of Motivation
  32. 32. 1. Clayton Alderfer’s ERG Theory:  The psychologist Clayton Alderfer developed a new model to explain the simultaneous nature of Maslow's five needs. Called the ERG Theory of motivation.  Existence : concerned mainly with providing basic material existence.  Relatedness : the individuals need to maintain interpersonal relationship with other members in the group.  Growth : we are looking for personal growth and development by doing work that is of high quality, and meaningful (Hence "ERG", standing for Existence, Relatedness and Growth.)
  33. 33.  It suggests that people can be motivated by needs from more than one level at the same time. There is not necessarily a strict progression from one level to the next.  It acknowledges that the importance of the needs varies for each person and as circumstances change. Some people might put a higher value on growth than relationships at certain stages of their lives.  It has a "frustration-regression" element. This means that if needs remain unsatisfied at one of the higher levels, the person will become frustrated, and go back to pursuing lower level needs again. ERG theory has three key differences from Maslow's theory:
  34. 34. 2. McClelland’s Acquired Need Theory  proposed by Douglas McClelland on 1961  McClelland says that, regardless of our gender, culture, or age, we all have three motivating drivers, and one of these will be our dominant motivating driver. This dominant motivator is largely dependent on our culture and life experiences.
  35. 35. Characteristics of the person for Achievement  Has a strong need to set and accomplish challenging goals.  Takes calculated risks to accomplish their goals.  Likes to receive regular feedback on their progress and achievements.  Often likes to work alone
  36. 36. Characteristics of the person for Affiliation  Wants to belong to the group.  Wants to be liked, and will often go along with whatever the rest of the group wants to do.  Favors collaboration over competition.  Doesn't like high risk or uncertainty.
  37. 37. Characteristics of the person for Power  Wants to control and influence others.  Likes to win arguments.  Enjoys competition and winning.  Enjoys status and recognition.
  38. 38. Why this theory ?  This theory can help us to identify the dominant motivators of people on your team. You can then use this information to influence how you set goals and provide feedback , and how you motivate and reward team members.  You can also use these motivators to craft, or design the job around your team members, ensuring a better fit.
  39. 39. How to use this theory?  There are different steps for using McClelland’s theory : Step 1: Identify Drivers Step 2: Structure Your Approach
  40. 40. 3. Victor Vroom’s Expectancy Theory  Expectancy theory is about the mental processes involved in making choices.  Vroom’s expectancy theory to assess the accuracy and effectiveness of motivating based upon expectancy, instrumentality, valence.
  41. 41. Expectancy A framework that holds, people decide to act in a certain way because they are motivated to select a specific behavior over other behaviors based on the expected result. Instrumentality: The quality or condition of serving a purpose, being useful. Valence: A one-dimensional value assigned to an object, situation, or state that can usually be positive or negative.
  42. 42. Vroom's analysis  The individual's expectancy that effort will lead to the intended performance  The instrumentality of this performance in achieving a certain result  The desirability of the result (known as valence) to the individual These three components of expectancy theory (expectancy, instrumentality, and valence) fit together in this fashion:  Expectancy: Effort → Performance (E→P)  Instrumentality: Performance → Outcome (P→O)  Valence: V(O)  Effort → Performance (E→P):-
  43. 43. Expectancy is the belief that an effort (E) will result in attainment of desired performance (P) goals.  Performance → Outcome (P→O): Instrumentality is the belief that a person will receive a desired outcome (O) if the performance expectation is met.  V(O): Valence is the value individuals place on outcomes (O) based on their needs, goals, values, and sources of motivation
  44. 44. 4. Porter and Lawler Model of Motivation  Lyman W. Porter and Edward E. Lawler developed a more complete version of motivation depending upon expectancy theory.  This is a multi variate model which explains the relationship that exists between job attitudes and job performance.  Performance is the responsible factor that leads to intrinsic as well as extrinsic rewards. These rewards, along with the equity of individual leads to satisfaction. Hence, satisfaction of the individual depends upon the fairness of the reward.
  45. 45. Assumptions: This model is based on four basic assumptions about human behaviour 1. According to this model, individual behaviour is determined by a combination of factors in the individual and in the environment. 2. Individuals are assumed to be rational human beings who make conscious decisions about their behaviour in the organisations. 3. Individuals have different needs, desires and goals. 4. On the basis of their expectations, individuals decide between alternate behaviours and such decided behaviour will lead to a desired outcome.
  46. 46. 1. Effort: Effort refers to the amount of energy which a person exerts on a job. 2. Value of Reward: A person who is looking for more money, for example, extra vacation time may not be an attractive reward. 3. Perceived Effort Reward Probability: Based on the valence of the reward and the effort reward probability, people can decide to put in certain level of work effort. 4. Performance: 4.1 Abilities include knowledge, skills and intellectual capacity to perform the job. 4.2 Traits which are important for many jobs are endurance, pre-service, and goal directedness.
  47. 47. 4.3 Role perception: Only those, who perceive their roles as is defined by the organization, will be able to perform well when they put forth the requisite effort. 5. Rewards:  Performance leads to certain outcomes in the shape of two types of rewards namely I. Extrinsic rewards -> . Extrinsic rewards are the external rewards given by others in the organization in the form of money, recognition or praise. II. Intrinsic rewards-> Intrinsic rewards are internal feelings of job sell esteem and sense of competence that individuals feel when they do a good job.
  48. 48. Satisfaction: Satisfaction will result from both extrinsic and intrinsic rewards. For being satisfied, an individual will compare his actual rewards with the reward he/she received. Things Managers do to motivate their employees: 1. Put the right person for the right job according to their abilities and traits. 2. Carefully explain their roles or what they must do to be rewarded and make sure that they understand it. 3. Let employees know what is expected from them and make sure they perform. 4. To achieve and maintain motivation, the appropriate reward must be associated with successful performance. 5. Make sure that the rewards fulfill their needs.
  49. 49. 5. Goal Setting Theory  It was proposed by Edwin Locke in 1968.  The process of improving performance with objectives, deadlines or quality standards.  Properly set and well managed task goals can be highly motivating.  Provide direction to people in their work. Clarify performance expectations. How it works  A need felt -> set goals -> reduces the feel of need.  This goal-supportive behaviour and goal behaviour should continue until the feel for need is significantly reduced.
  50. 50. Key principles  Set specific goals  Set challenging goals  Build goal acceptance and commitment  Clarify goal priorities  Provide feedback on goal accomplishment  Reward goal accomplishment
  51. 51. Findings of this theory  Higher performance are achieved with specific goals than general goals.  The goals that are hard to achieve are linearly and positively connected to performance. The harder the goal, the more a person will work to achieve it.
  52. 52. Conclusion By all the above study we can say that motivation is one of the important function of managerial activities .Triggering someones internal feelings is really a difficult task ,it requires an extra ordinary skill.  Without willingness to work, ability to work is of no use As without proper planning, controlling, staffing, leading, coordination and communication its not possible to establish a successful l organization ,without motivation too its difficult to maintain a established organization for long time .It goes hand in hand with every other managerial functions.
  53. 53.  Along with the motivation of motivation should be kept under consideration .So we have gone through all the theories given by several researchers/scientist. Study of these theories helps a manager to improve its motivational skills by understanding pros and cons of it ,basic needs of employee and other factors which could affect the performance of an employee and indirectly of the organization.
  54. 54. How to Apply The Theories  McClellands acquired need theory can be used to identify the dominant motivators of people in team. You can then use this information to influence how you set goals and provide feedback , and how you motivate and reward team members.  Porter and Lawler theories make us understand about factors affecting the performance.This model is of great significance to managers since it sensitises them to focus their attention on the points to keep their employees motivated.  Claytons ERG theory it removes the strict hierarchy mentioned in maslow’s need theory and summarizes all the basic 5 need into jst 3.  Adams equity made us understand about the usage of comparison in deciding the motivational style.
  55. 55.  Satisfaction and dissatisfaction .. Two most important feelings in human beings life is covered by Frederick. How an ideal situation can be established in an organization.How motivational processes vary across cultures, how the role of leadership changes in different cultures, how communication varies across cultures, and how interpersonal and group processes depend on cultural background.  Motivation – Involving employees in the whole process of goal setting and increasing employee empowerment. This increases employee job satisfaction and commitment. Motivation encompasses all those pressures and influences that trigger, channel, and sustain human behavior. Most successful managers have learned to understand the concept of human motivation and are able to use that understanding to achieve higher standards of subordinate work performance.
  56. 56. Thank You