1. THEORIES OF
MOTIVATION
Stevin Wilson
Vijay Raj
Shaukth Ali
Amit
Sandeep
Reshma
Prashanth
Arun kumar
Sateesh kumar

2. Motivation
Motivation is a need or desire that energizes behavior and directs it
towards a goal.

3. MOTIVATION INPUTS
BEHAVIOR
MOTIVATION OUTPUTS
Satisfaction
Needs
(Internal
stimuli)
Perception
EPPI
Incentive
(External Stimuli)
Ability
Motivation
Reward
Performance
Productivity

4. Content vs Process
1. Content Theories
• ―what‖ motivates people
• individual needs and goals
Maslow, Alderfer, Herzberg and McCelland
2. Process Theories
―process‖ of motivation and ―how‖ motivation occurs
Vroom, Porter & Lawler, Adams and Locke

5. INDIVIDUAL
•
MOTIVE:It is the key to an individual’s productive life
•
Job performance is a function of both ability and motivation:
Vroom and Lawler
•
Learning plays an important role in acquiring more abilities and
better performance

6. Extrinsic & Intrinsic Motivation:
•
Extrinsic: the rewards given by an organization to
motivate its employees to make them perform better,
induce extrinsic motivation. Directly related to the needs
of an employee.
•
Intrinsic: The influence on employees psychology that
motivates them internally to perform higher
Inborn desire to work, perform higher, psychological
impact created by organization/ managers, good
management practices

10. Quick Poll
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OR
OR

13. Theories of Motivation
There are 2 types of theories:
Early behavioral Theories: these were started to evolve in 1950s. They
represent a foundation from which contemporary theories have grown.
Practicing managers still regularly use this theories and their
terminology in explaining employee motivation. Contemporary way of
thinking.
Contemporary Theories: These are referred to as contemporary theories
because these theories are able to more appropriately explain the
phenomenon of the motivation in the contemporary organizations.

14. Early Behavioral Theories of Motivation
• Maslow‘s Hierarchy of needs theory
• McGregor‘s Theory X and Theory Y
• Herzberg‘s two-factor theory
• McClelland‘s theory of needs
• Alderfer‘s ERG theory

15. Maslow‘s Hierarchy of Need
Abraham Harold Maslow (April 1, 1908 – June 8,
1970) was an American psychologist who was best
known for creating Maslow's hierarchy of needs, a
theory of psychological health predicated on
fulfilling innate human needs in priority,
culminating in self-actualization. He stressed the
importance of focusing on the positive qualities in
people, as opposed to treating them as a "bag of
symptoms.‖
Maslow's hierarchy of needs is often portrayed in the shape of a
pyramid with the largest, most fundamental levels of needs at the
bottom and the need forself-actualization at the top.

16. The movement from one
level to the next was termed
satisfaction progression by
Maslow, and it was assumed
that over time individuals
were motivated to
continually progress upward
through these levels.

17. Physiological needs—including food, water, sexual drive, and
other subsistence-related needs;
Safety needs—including shelter, a safe home environment,
employment, a healthy and safe work environment, access to
health care, money, and other basic necessities;
Belonging needs—including the desire for social contact and
interaction, friendship, affection, and various types of support;
Esteem needs—including status, recognition, and positive
regard;
Self-actualization needs—including the desire for
achievement, personal growth and development, and autonomy.

18. DEFECTS:
Maslow was primarily studying human behavior so he was
not concentrating on the effect on businesses.
In practice there are a number of problems with Maslow‘s app
roach: Some levels of the hierarchy do not exist for some
people .
Some rewards fit into more than one level, e.g. money It can
be difficult to recognize which level an individual is on
Self-actualisation is never permanently achieved.

19. Alderfer‘s ERG Theory
Clayton Paul Alderfer (born September 1,
1940 in Sellersville, Pennsylvania) is
an American psychologist who further
developed Maslow's hierarchy of needs by
categorizing the hierarchy into his ERG
theory (Existence, Relatedness and
Growth).
The three components identified by Alderfer (1972) drew upon
Maslow‘s theory, but also suggested that individuals were
motivated to move forward and backward through the levels in
terms of motivators.

20. He reduced Maslow‘s levels from five to the following
three:
• Existence—which related to Maslow‘s first two needs,
thus combining the physiological and safety needs into one
level;
• Relatedness—which addressed the belonging needs;
• Growth—which pertains to the last two needs, thereby
combining esteem and self-actualization.

22. Comparative view of Maslow’s and Alderfer’s Theory:
• Alderfer‘s ERG theory is less restrictive as compared with Maslow.
• Alderfer‘s theory represent the simplification of Maslow need priority
theory.
• Alderfer has removed the restriction about the activation of need in any
hierarchical order, he said that more then one theory can be activated at
same point of time.
 Alderfer believed that as you start satisfying higher needs, they
become more intense (e.g., the power you get the more you want
power), like an addiction.
 Not everyone is motivated by the same things. It depends where you
are in the hierarchy (think of it as a kind of personal development scale)

23. Herzberg‘s Two Factor Theory
Frederick Irving Herzberg (April 18, 1923 –
January 19, 2000) born in Massachusetts was an
American psychologist who became one of the
most influential names in business management.
He is most famous for introducing job
enrichment and the Motivator-Hygiene theory.
Frederick Herzberg (1923-2000) asked just 200 workers what motivated
them From this
he developed his TWO-FACTOR THEORY Herzberg found that it is po
ssible to split the things that motivators into 2 groups –
but not based around money. Instead he split them according to MOTIV
ATORS and HYGIENE FACTORS:

25. Herzberg‘s ideas are linked to job enrichment
This means that:
1)Improvements in pay etc will not in themselves motivate work
ers .
2) In order to motivate them workers like
Being involved in the production of a complete unit
Receiving feedback on their performance
Being given a range of different tasks to complete
However: Providing job enrichment can be very expensive
Herzberg‘s findings where based on a very small sample
Similar surveys have obtained very different results.

26. McClelland‘s Acquired Needs Theory
David Clarence McClelland (May 20, 1917 –
March 27, 1998) was
an American psychological theorist, noted for
his work on Need Theory.
McClelland is credited with developing the
Achievement Motivation Theory commonly
referred to as need achievement or nachievement theory.
The idea here is that needs are acquired throughout life.
That is, needs are not innate, but are learned or developed as a result
of one‘s life experiences. This theory focuses on three types of needs

27. The idea here is that needs are acquired throughout life.
That is, needs are not innate, but are learned or developed as
a result of one‘s life experiences.
This theory focuses on three types of needs:
• Need for achievement—which emphasizes the desires for
success, for mastering tasks, and for attaining goals;
• Need for affiliation—which focuses on the desire for relationships and associations with others; and,
•Need for power—which relates to the desires for responsibility
for, control of, and authority over others.

28. • EXPECTANCY THEORY
•PORTER AND LAWLER’S THEORY
•EQUITY THEORY
•GOAL SETTING THEORY

29. EXPECTANCY THEORY
 Developed by Victor Vroom.
 Key expectancy theory variables:
 Expectancy - belief that working hard will result in
desired level of performance.
 Instrumentality - belief that successful performance
will be followed by rewards.
 Valence - value a person assigns to rewards and other
work related outcomes.

31. •Efforts-Performance relationship-It is related to the
probability perceived by individual that exerting
given amount of efforts will lead to performance
expectancy)
•Performance-Reward Relationship. The degree to
which the individual believes that performing
particular level will lead to attainment of desired
outcome (instrumentality)
•Reward- personal goal Relationship-The degree to
which an organizational reward will satisfy
individual needs and its attractiveness for the
individual valence)

32.  Expectancy is the belief that increased effort will lead to
increased performance i.e. if I work harder then this will
be better. This is affected by such things as:
 Having the right resources available e.g. raw materials,
time)
 Having the right skills to do the job
 Having the necessary support to get the job done (e.g.
supervisor support, or correct information on the job)

33. •Instrumentality is the belief that if you perform well
that a valued outcome will be received i.e. if I do a
good job, there is something in it for me. This is
affected by such things as:
•Clear understanding of the relationship between
performance and outcomes — e.g. the rules of the
reward ‗game‘ .
•Trust in the people who will take the decisions on
who gets what outcome
•Transparency of the process that decides who gets
what outcome

34. •Valence is the importance that the individual
places upon the expected outcome.
Motivation (M), expectancy (E), instrumentality (I), and
valence (V) are related to one another in a multiplicative
fashion:
M=ExIxV
• If either E, I, or V is low, motivation will be low.

36. PORTER AND LAWLER THEORY
 Lyman W Porter and Edward E. Lawler
developed a more complete version of motivation
depending upon expectancy theory.
 This model is more comprehensive as it includes
various aspects.
 This is a multivariate model which explain the
relationship that exists between job attitudes and
job performance.
 The assumptions are:
 Individual behaviour is determined by a

37.  Individuals are considered to be rationale people
who make conscious and logical decisions about
their behaviour when they interact with other
people in the organization.
 Every individual have different needs ,desires and
their goals are of varied nature.
 On the basis of their expectations, individuals
decide between alternate behaviours. The
outcome of the efforts is related to the pattern of
behaviours an individual display.

39. ADAM’S EQUITY THEORY
 Developed by J. Stacy Adams.
 When people believe that they have been treated
unfairly in comparison to others, they try to eliminate
the discomfort and restore a perceived sense of equity
to the situation.
Perceived inequity.
Perceived equity

42. EQUITY THEORY
 People respond to perceived negative inequity
by changing
 Work inputs.
 Rewards received.
 Comparison points.
 Situation.

43. MANAGERIAL IMPLICATIONS OF
EQUITY THEORY
 Underpaid people experience anger.
 Overpaid people experience guilt.
 Perceptions of rewards determine motivational




outcomes.
Negative consequences of equity comparisons should
be minimized, if not eliminated.
Do not underestimate the impact of pay as a source of
equity controversies in the workplace.
Gender equity.
Comparable worth.

44. LOCKE’S GOAL SETTING THEORY
 Developed by Edwin Locke.
 Properly set and well-managed task goals can be
highly motivating.
 Motivational effects of task goals:
 provide direction to people in their work.
 Clarify performance expectations.
 Establish a frame of reference for feedback.
 Provide a foundation for behavioural selfmanagement.

45. Key issues and principles in the
goal-setting process:
 Set specific goals.
 Set challenging goals.
 Build goal acceptance and commitment.
 Clarify goal priorities.
 Provide feedback on goal accomplishment.
 Reward goal accomplishment.

46. Reinforcement theory
 Reinforcement.
– The administration of a consequence as a result of
a behavior.
– Proper management of reinforcement can change
the direction, level, and persistence of an
individual‘s behavior.

47. Reinforcement Theory

48. Reinforcement Theory
 Law of effect.
– Theoretical basis for manipulating consequences
of behavior.
– Behavior that results in a pleasant outcome is
likely to be repeated while behavior that results in
an unpleasant outcome is not likely to be repeated.

49. Reinforcement Theory
 Organizational behavior modification (OB
Mod).
– The systematic reinforcement of desirable work
behavior and the non reinforcement or punishment of
unwanted work behavior.
– Uses four basic strategies:
•
•
•
•
Positive reinforcement.
Negative reinforcement.
Punishment.
Extinction.

50. Reinforcement Theory
 Positive reinforcement.
– The administration of positive consequences to
increase the likelihood of repeating the desired
behavior in similar settings.
– Rewards are not necessarily positive reinforcers.
– A reward is a positive reinforcer only if the
behavior improves.

51. Reinforcement Theory
 Scheduling reinforcement.
– Continuous reinforcement.
• Administers a reward each time the desired
behavior occurs.
– Intermittent reinforcement.
• Rewards behavior periodically — either on the
basis of time elapsed or the number of desired
behaviors exhibited.

52. Reinforcement Theory
 Negative reinforcement.
– Also known as avoidance.
– The withdrawal of negative consequences to
increase the likelihood of repeating the desired
behavior in a similar setting.

53. Reinforcement Theory
 Punishment.
– The administration of negative consequences or
the withdrawal of positive consequences to reduce
the likelihood of repeating the behavior in similar
settings.

54. Reinforcement Theory
 Extinction.
– The withdrawal of the reinforcing consequences
for a given behavior.
– The behavior is not unlearned; it simply is not
exhibited.
– The behavior will reappear if it is reinforced again.

55. Reinforcement Theory

56. McGregor’s Theory X & Theory Y
Douglas Murray McGregor (1906 – 1 October 1964)
was a Management professor at the MIT Sloan
School of Management and president of Antioch
College from 1948 to 1954.
He also taught at the Indian Institute of
Management Calcutta.
He examined how managers attitudes affect how workers
behave . He developed two extremes of managers:

58. Leaders (managers) who adhere to Theory X assume that the average
person :
Dislikes work and attempts to avoid it
•Lacks ambition, wants no responsibility, and would rather follow than
lead
•Is self-centered and, therefore, does not care about organizational goals
•Resists change
•Act irresponsibly (Weinbach, 2008)
• A Theory X type manager would be more inclined to use tangible
rewards as incentives. They assume their authority is resented and adopt
regulations that are designed to enforce compliance.

59. Leaders (managers) who adhere to Theory Y assume that:
•Work is a natural activity for people.
•People will be self-directed to meet their work objectives if they are
committed to them.
•People will be committed to their objectives if rewards are in place that
address higher needs, such as self-fulfillment.
•People will seek responsibility.
•Most people can handle responsibility, because creativity and ingenuity
are common in the population.
•A Theory Y type manager acts in a way that communicates trust and a
belief in staff member‘s good intentions. They assume that staff members
want to work toward organizational goal attainment and work to set up an
environment that enhances growth (Weinbach, 2008).

61. How Useful Is McGregor’s Theory
It is important to realize that:
•McGregor based his ideas on Maslow‘s Hierarchy
•McGregor‘s theory is NOT a motivation theory
•Most managers fall somewhere between McGregor‘s 2 extrem
es
In essence, all the theories that we have looked at tell us that w
orkers are different and that money may not be the only mo
tivator!

62. Ouchi’s Theory Z
Introduction:
 Developed by Dr. William Ouchi's also called "Japanese
Management" style.
Theory Z focused on increasing employee loyalty to the company.
According to Ouchi, Theory Z management tends to promote:
Stable employment
High productivity
High employee morale and satisfaction

63. Ouchi’s Conclusion:
The secret to Japanese success, according to Ouchi, is not
technology, but a special
way of managing people.
Ouchi claims that the results show:
Lower turnover
Increased job commitment
Dramatically higher productivity

64. ASSUMPTIONS MADE ON OBSERVATION:
Workers tend to want to build happy and intimate working relationships
in an organization.
Workers have a high need to be supported by the company.
Workers highly value a working environment in which such things as
family, cultures and traditions, and social institutions are regarded as
equally important as the work itself.
Workers have a very well developed sense of order, discipline, a moral
obligation to work hard, and a sense of cohesion with their fellow
workers.
Workers can be trusted to do their jobs to their utmost ability, so long as
management can be trusted to support them and look out for their wellbeing (Massie & Douglas, 1992).

65. Key Points:
High degree of confidence in workers by the management.
High degree of participation by the workers in Decision Making.
The employees must be very knowledgeable about the various issues of
the company, as well as possess the competence to make those decisions.
DRAWBACKS:
Workers needed to be generalists, rather than specialists.
Promotions tend to be slower in this type of setting, as workers are given
a much longer opportunity to receive training and more time to learn the
ins and outs of the company's operations.

66. II. Financial versus Non-financial Rewards
• Financial
•
Direct
Wage, Bonus, Profit
sharing
Non-financial
Indirect
•
Retirement plan, Paid
leave, Purchase
discounts
“One person’s food is another person’s poison”

67. III. Performance-Based versus Membership-Based
Rewards
Performance-based rewards:
•
•
•
•
•
Commissions
Piecework pay plans
Incentive systems
Group bonuses
Merit pay
Membership- based rewards:
•
cost-of-living increases salary
•
increases attributable to labor-market
• conditions
• seniority or time in rank,
• credentials
• specialized skill or future potential

68. Incentive Compensation Plans
1. Individual Incentives
2. Group Incentives
3. Organization-Wide Incentives

69. 1.Individual incentive plans
•
Merit pay - sum of money added to base salary (attributable
solely to performance)
•
Piecework plans –
a. Straight piecework plans
b. Differential piece-rate plans
Time-savings bonuses ―Time saved=Output generated‖
Commission - % of sales price added to low base wage.
Stock options
•
•
•