MOTIVATION

What is Motivation?

■ Motivation is a process that starts with a

physiological or psychological deficiency or
need that activates behaviour or a drive that is
aimed at a goal or an incentive.
Motivation
The processes that account for an individual’s
intensity, direction, and persistence of effort toward
attaining a goal.

Key Elements
1. Intensity: How hard a person tries
2. Direction: Toward beneficial goal
3. Persistence: How long a person tries

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 Types of
Motivation
■ Extrinsic Motivation:
– "What gets rewarded gets done"
– Based on extrinsic/tangible rewards

■ Intrinsic Motivation:
– "What is rewarding gets done"
– Based on intrinsic/intangible rewards
Techniques to increase motivation

Financial Motivators Non – financial Motivators

■ More wages and salaries ■ Recognition
■ Bonuses ■ Participation
■ Profit sharing ■ Status
■ Leave with pay ■ Competition
■ Medical reimbursements ■ Job enrichment
■ Company paid insurance
Theories of Motivation

■ Early Theories of Motivation■ Contemporary Theories of

– Need Hierarchy Theory Motivation
– Theory X and Theory Y – Goal setting Theory
– Two Factor Theory – Equity Theory
– McClelland’s Theory of Needs – Expectancy Theory
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.

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‘Maslow’ Hierarchy of Needs

SELF-ACTUALIZATION: includes
growth, achieving one’s potential, and self-
fulfillment.
ESTEEM: includes self-respect, autonomy, and
achievement; and status, recognition, and attention.
SOCIAL: includes affection, belongingness, acceptance, and
friendship.
SAFETY: Needs to be free of physical danger and of the fear of losing a job,
property, food or shelter.
PHYSIOLOGICAL: Important needs for sustaining the human life. Food, water,
warmth, shelter, sleep, medicine and education
 MCGREGOR’S
THEORY X &THEORY Y
Theory X
Assumes that employees dislike
work, lack ambition, avoid
responsibility, and must be
directed and coerced to perform.

Theory Y
Assumes that employees like
work, seek responsibility, are
capable of making decisions,
and exercise self-direction and
self-control when committed to
a goal.

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FREDRICK HERZBERG
TWO-FACTOR THEORY
According to Herzberg, there are some
job factors that result in satisfaction
while there are other job factors that
prevent dissatisfaction.
■ Hygiene factors

– essential for existence of motivation at workplace.

– do not lead to positive satisfaction for long-term.

– if these factors are absent, then they lead to

dissatisfaction, but when adequate /reasonable in a
job, these factors pacify the employees and do not
make them dissatisfied.
■ The motivational factors yield positive
satisfaction.

– These factors are inherent to work.

– Motivation factors motivate the employees

for a superior performance and are called
satisfiers.

– intrinsically rewarding.
 MCCLELLAND
ACHIEVEMENT
MOTIVATION THEORY
Ø Also called the Three Need Theory, the Achievement
theory was advocated by David C McClelland.

Ø Each person has a need for all the three (achievement,

power & affiliation), but that people differ in the degree to
which the various needs motivate their behaviour.
■ Need for achievement is the urge to excel, to
accomplish in relation to a set of standards, to
struggle to achieve success.
■ Need for power is the desire to influence other
individual’s behaviour as per your wish. In other
words, it is the desire to have control over others
and to be influential.
■ Need for affiliation is a need for open and sociable
interpersonal relationships. In other words, it is a
desire for relationship based on co-operation and
mutual understanding.
Contemporary Theories
VROOM’S EXPECTNCY
MODEL
■ Vroom offered an expectancy approach to the understanding of
motivation.
■ According to him, motivation will be high when employees believe:
– High levels of effort will lead to high performance.
– High performance will lead to the attainment of desired outcomes
This theory focus on three relationships:

– Effort - performance relationship - the probability by the

individual that exerting the given amount of effort will
lead to performance

– Performance - reward relationship - the degree to which

the individual believes performing at a particular level
will lead to attainment of desired outcome

– Rewards - personal goals relationship – the degree to

which organizational rewards satisfy an individual’s
personal goals or needs and the attractiveness of the
same.
■ Valence (reward preference):
– it refers to the strength of an individual’s preference for
receiving a reward.

– For instance, a retiring employee may have high

valence for re-employment.
■ Expectancy (Effort-Reward Probability):

– It refers to the extent, to which the person believes that his efforts
will lead to the outcome, i.e., completion of a task.

– Expectancy is stated as a probability, i.e., as individual’s estimate

of the probability of an outcome from an action.
■ Instrumentality

– It is the faith that if you perform well, then a valid outcome

will be there.

– Denotes an individual’s estimate that performance will result

in achieving the reward.
 Expectancy, Instrumentality, and Valence

Figure 13.2 13-27

■ The mode is multiplicative, all the three variables must have high
positive values to imply motivated performance choices.

■ If any of the variables approaches zero, the probability of motivated

performance approaches zero.

Motivation = Valence*Expectancy*instrumentality
■ Employees perceive what they get from a
job situation (salary, raises, recognition) in
relationship to what they put into it (effort,
experience, education, competence) and
then compare their outcome-input ratio with
that of relevant others.
 Equity Theory
■ Equity Theory
– Focuses on people’s perceptions of the fairness (or lack of fairness)
of their work outcomes in
proportion to
their work inputs.

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Equity Theory
Equity Theory

■ Equity exists when a person perceives that

his outcome/input ratio to be equal to the
referent’s ratio.
– If the referent receives more outcomes, they
should also give more inputs to achieve equity.
 Equity Theory
■ Inequity exists when worker’s outcome/input
ratio is not equal to referent.

– Underpayment inequity: ratio is less than the referent.

– Overpayment inequity: ratio is higher than the referent.

Consequences of Inequity
■ The employee is motivated to have an equitable
exchange with the employer.
■ To reduce inequity, employee may…
– Reduce inputs (reduce effort)
– Try to influence manager to increase outcomes
(complain, file grievance, etc.)
– Try to influence co-workers’ inputs (criticize others
outcomes or inputs)
– Withdraw emotionally - or physically (engage in
absenteeism, tardiness, or quit)
Equity Theory Applications

■ Develop tools to pay people in proportion to

their contributions
■ Let employees know who their pay referents
are in the pay system: identify pay
competitors and internal pay comparators.
■ Monitor internal pay structure and position
in the labor market for consistency.
GOAL SETTING THEORY
■ Goal setting is a powerful way of motivating
people and motivating yourself.

■ This theory is generally accepted as among the

most valid and useful motivation theories.

■ This theory says that specific and difficult goals,

with feedback, lead to higher performance.
■ Goals tells an employee what needs to be done
and how much effort will need to be expended.

■ Specific goals increase performance, difficult

goals, when accepted, results in higher
performance than easy goals, and feedback
leads to higher performance than non-
feedback.
■ In 1960’s, Edwin Locke propounded the Goal-
setting theory of motivation.

■ He stated that employees were motivated by

clear goals and appropriate feedback.

■ Locke went on to say that working toward a goal

provided a major source of motivation to
actually reach the goal – which, in turn,
improved performance.
■ Having a goal that's too easy is not a motivating force. Hard goals are
more motivating than easy goals, because it's much more of an
accomplishment to achieve something that you have to work for.
Principles of Goal Setting

■ To motivate, goals must have:

– Clarity
■ Specific and clear goals lead to greater output
and better performance .
– Challenge
■ The more challenging the goal, the greater is the
reward generally and the more is the passion for
achieving it.
— Commitment
— Individual is committed to the goal and will not let it go till it is
accomplished

— Feedback
— Provides opportunities to clarify expectations, adjust goal difficulty,
and gain recognition.
SELF – EFFICACY
THEORY
■ Refers to an individual belief that he or she is capable of
performing a task
■ The higher your self-efficacy, the more confidence you have in
your ability to succeed.
■ So in difficult situations, people with low self-efficacy are
more likely to lessen their effort or give up altogether, while
those with high efficacy, will try to master the challenge.
■ Also, individuals high in self-efficacy seem to respond to
negative feedback with increased effort and motivation.
■ How can manager help employees achieve high levels of self
efficacy?
 Self Efficacy Theory
■ An individual’s belief that he or she is capable of
performing a task.
– Higher efficacy is related to:
■ Greater confidence
■ Greater persistence in the face of difficulties
■ Better response to negative feedback (work harder)
– Self-efficacy complements Goal-Setting Theory

Increased Confidence

Given Hard Goal Higher Performance

Higher Self-Set Goal

Increasing self-efficacy

■ Enactive mastery
– Most important source of efficacy
– Gaining relevant experience with task or job
– “Practice makes perfect”
■ Vicarious modeling
– Increasing confidence by watching others perform the task
– Most effective when observer sees the model to be similar to him- or herself
■ Verbal persuasion
– Motivation through verbal conviction
■ Arousal
– Getting “psyched up” – emotionally aroused – to complete task
– Can hurt performance if emotion is not a component of the task

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