2. Theories of Motivation
Contemporary (Process)
Early (Content) Theories Theories
“Emphasis on what “Emphasis on actual
motivates individuals” process of motivation”
1. Maslow’s Hierarchy of 1. Cognitive Evaluation
Needs Theory
2. ERG Theory of Alderfer 2. Goal-Setting Theory
3. Gregor’s Theory X and 3. Self-Efficacy Theory
Theory Y 4. Reinforcement Theory
4. Herzberg’s Two-Factor 5. Equity Theory
Theory 6. Vroom’s Expectancy
5. McClelland’s Theory of Theory
Needs
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3. Behavioural Theories
• Each reward or element of compensation/ reward has a
behavioural objective and seeks to fulfill a need( physiological
or psychological) and achieve a goal.
• Two groups of motivation theories
Content theories
Process theories
5. Maslow’s Need Hierarchy Theory
•Proposed by Abraham Maslow.
•There are 5 levels of needs.
•Needs are arranged in order of importance
•Lower level needs must be met first.
•Each level must be at least minimally satisfied before a higher level
need occurs
•Only unmet needs motivate
Hierarchy of Needs Theory
There is a hierarchy of five needs—physiological, safety, social,
esteem and self-actualization; as each need is substantially
satisfied, the next need becomes dominant
6. ERG Theory (Clayton Alderfer)
There are three groups of core needs: existence,
relatedness, and growth.
Core Needs
Existence: provision of basic material
requirements.
Relatedness: desire for relationships.
Growth: desire for personal development.
7. Comparison of
Hierarchy of Needs & ERG Theories
SA
Growth
Esteem
Love (Social) Relatedness
Safety & Security
Existence
Physiological
8. Theory X and Theory Y (Douglas McGregor)
Theory X
Negative view of human-beings: Assumes that
employees dislike work, lack ambition, avoid
responsibility, avoid leading and prefers to be
led and supervised; must be directed and
coerced to perform
Theory Y
Positive view of human-beings: Assumes that
employees like work, seek responsibility, are capable of
making decisions, exercise self-direction and self-
control; Commitment to goals and objectives is a
function of rewards available, especially appreciation
and recognition
He believed that assumptions of Theory Y were more valid; and,
prescribed ideas such as Participative decision-making, Responsible &
Challenging job assignments, etc. to motivate employees
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9. Hertzberg's Two-Factor Theory
• Proposed by Frederick Hertzberg.
• Also known as Motivation- Hygiene theory.
Hygiene factors avoid
job dissatisfaction
•Company policy &administration
• Supervision
• Interpersonal relations
• Working conditions
• Salary
• Security
Motivation factors
increase job satisfaction
•Achievement
• Achievement recognition
• Work itself
• Responsibility
• Advancement
• Growth
10. Satisfaction is affected by motivators and dissatisfaction by
hygiene factors.
• Hygiene factors/ extrinsic factors are related to lower level
needs
• Motivating factors/ intrinsic factors relates to higher level
needs
11. David McClelland’s
Theory of Needs / Acquired Needs Theory
Need for Power
The need to make others behave in a way that they would
not have behaved otherwise; the desire to control others, to
influence their behavior, or to be responsible for others
nPow
Need for Need for Affiliation
Achievement nAch nAff
The desire for
maintaining friendly
The drive to excel, to
and close personal
achieve in relation to a
relationships
set of standards, to
strive to succeed
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12. Content Theories: Summary
Maslow
Maslow Alderfer Herzberg McClelland
Self-Actualization
Need for
Growth Motivators Achievement
Esteem
Need for Power
Affiliation Relatedness
Hygiene Need for Affiliation
Security Factors
Existence
Physiological
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13. Self-Efficacy Theory
Theory asserts that motivation and performance are in part
dependent on the degree to which the individual believes
he/she can accomplish the task
Self-efficacy refers to a person’s belief in his/her ability to
perform a given task
Those who have high self-efficacy are more likely to try hard
and exhibit high levels of commitment (persistence) on a
given task; they are more likely to succeed as a result
Self-efficacy interacts with goal setting in so far as
people with higher self-efficacy tend
to set more challenging goals
14. Ways to increase Self-Efficacy are:
1. Enactive Mastery - Relevant Past Experience
2. Vicarious Modeling – Seeing someone else
does the task
3. Verbal Persuasion - Someone convincing the
individual of possessing necessary skills
4. Arousal – An energized state / mood
15. Reinforcement Theory
The assumption that behavior is a function of its consequences
Concepts:
Behavior is environmentally caused
Behavior can be modified (reinforced) by providing
(controlling) consequences
Reinforced behavior tends to be repeated
Various Reinforcement schedules are in use
•Contradictory to Goal-setting theory which is a cognitive
approach (individual’s purposes direct his behaviour)
• Theory ignores feelings, expectations, attitude, etc. of a person
to affect his behaviour
16. Equity Theory
• Put forward by John Stacey Adams
• According to this theory an employee who perceives inequity
in his or her rewards seeks to restore equity.
• The theory emphasizes equity in pay structure of employees
remuneration.
• When the employees perceive inequity it can result in lower
productivity, higher absenteeism and increase in turnover
Dimensions of equity
• Internal equity
Employees should feel that pay differentials are fair,
given the corresponding differences in job
responsibilities
• External equity
Jobs are fairly compensated in comparison to similar
jobs in the Labour market
• Individual equity
It ensures equal pay for equal job
17. Expectancy Theory
• Proposed by Victor Vroom
• Also Known as V-I-E Theory
• 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 and on the attractiveness of that outcome to
the individual.
18. Expectancy Theory of
Motivation: Key Constructs
• Valence - value or importance placed on a particular
reward/outcome
• Expectancy - belief that effort leads to performance
• Instrumentality - belief that performance is related to
rewards/ or the belief that first level of outcome will lead
to second level of outcome
Individual Effort- >individual Performance ->Organizational Rewards-> Personal Goals
• Effort performance relationship
• Performance-Reward relationship
• Rewards- personal goals relationship
19. Goal Setting Theory of Motivation
In 1960’s, Edwin Locke put forward the Goal-setting theory of
motivation
It states that specific and challenging goals along with appropriate feedbac
contribute to higher and better task performance.
In simple words, goals indicate and give direction to an employee about
what needs to be done and how much efforts are required to be put in.
20. Advantages of Goal Setting Theory
•Goal setting theory is a technique used to raise incentives for
employees to complete work quickly and effectively.
•Goal setting leads to better performance by increasing
motivation and efforts, but also through increasing and
improving the feedback quality.
