ORGANIZATIONAL BEHAVIOR

After studying chapter six and listening
to this lecture, you should be
able to:
1. Outline the motivation
process.
2. Describe Maslow’s need
hierarchy.
3. Contrast Theory X and
Theory Y.
4. Differentiate motivators
from hygiene factors.
5. List the characteristics
that high achievers prefer
in a job.
6. Summarize the types of
goals that increase
performance.
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Defining Motivation
Key Elements
1. Intensity: how hard a person tries
2. Direction: toward beneficial goal
3. Persistence: how long a person tries

Need Hierarchy Theory
Maslow
Physiological needs
(Survival)
Safety needs
(Security ?)
Social needs
(Affiliation & Acceptance)
Esteem needs
(Recognition , Power etc)
Self-
actualization
needs
Lower-order
needs
Higher-order
needs
Higher-order needs
are satisfied internally
(within the person)
lower-order needs are
predominantly satisfied
externally (by things such
as pay, union contracts, an
tenure).

Going “Beyond the Fringe” in Benefits: Especially Creative Reward
Practices
Company
Apple Computer/TCS
Tata Group of Companies
Advanta Corporation
Westin Hotels/ Taj Group
Reader’s Digest
Mercedes Benz India Ltd
Delta Airlines/Air India
Reward
Stock purchase options
Discounts to Employees on products (CROMA)
Opportunity to help train new employees
Free meals while on the job
Fridays off during the month of May (Lent)
Free Use of Company car for LTA with Fuel
Free airline travel for employees and spouses

Theory X and Theory Y (Douglas McGregor)
Absence of
Ambition
Capacity
Motivation
Need Direction
Have
Capacity &
Are
Participative
with
2 way Com’n

Two-Factor Theory (Frederick Herzberg)
Two Factor Theory :
A theory that relates intrinsic
factors to job satisfaction
and associates extrinsic factors
with dissatisfaction. Also called
motivation hygiene Theory.
hygiene factors: Factors—such as
company policy and administration,
supervision, and salary—that, when
adequate in a job, placate workers.
When these factors are adequate,
people will not be dissatisfied.

intrinsic factors extrinsic factors
Two-Factor Theory (Frederick Herzberg)

Herzberg dual continuum:
1.The opposite of “satisfaction” is “no satisfaction,” and
2. opposite of “dissatisfaction” is “no dissatisfaction.”
Two-Factor Theory (Frederick Herzberg)

David McClelland’s Theory of Needs
nAch
nPow
nAff
A theory that states achievement, power, and affiliation
are three important needs that help explain motivation.

self-determination theory & Self -Concordance
Self-determination theory by psychologists Edward Deci and Richard Ryan,first
introduced their ideas in their 1985 book Self-Determination and Intrinsic
Motivation in Human Behavior, This led to Cognitive Evaluation Theory
A recent outgrowth of self-determination theory is self-concordance , which considers how
strongly peoples’ reasons for pursuing goals are consistent with their interests and core values.
If individuals pursue goals because of an intrinsic interest, they are more likely to attain their
goals and are happy even if they do not. OB research suggests that people who pursue work
goals for intrinsic reasons are more satisfied with their jobs, feel they fit into their organizations
better, and may perform better.

Goal-Setting Theory (Edwin Locke)1960
intentions to work toward a
goal are a major source of work
motivation. That is, goals tell an
employee what needs to be done
and how much effort is needed.

Goal Setting: Some Impressive Effects
Percentage
of
Maximum
Weight
Carried
on
Each
Trip
Before goal After Goal
Four-Week Periods
50
60
70
80
90
100
1 2 4 5 6 7 8 9 10 11 12
Seven
Years Later
94
There was a dramatic
improvement in per-
formance after a goal
was set
Performance at the goal level
was sustained seven years after
the goal was first set
Goal
level
3

Self-Efficacy Theory (Albert Bandura)
Self-efficacy (also known as social
cognitive theory or social learning
theory ) refers to an individual’s 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.
Four ways self-efficacy can be increased:
1. Enactive mastery. (gaining relevant experience with the task /job)
2. Vicarious modeling.(becoming more confident because you see someone else doing the
task.)
3. Verbal persuasion.((becoming more confident because someone convinces you that you
have the skills necessary to be successful.)
4. Arousal. (Arousal leads to an energized state, so the person gets “psyched up” and
performs better)

Self-Efficacy Theory (Albert Bandura)

Reinforcement Theory
Concepts:
Behavior is environmentally caused.
Behavior can be modified (reinforced) by
providing (controlling) consequences.
Reinforced behavior tends to be repeated.
it does provide a powerful means of
analyzing what controls behavior
Operant conditioning theory, the most relevant component of reinforcement theory for
management (B.F. Skinner), argues that people learn to behave to get something they
want or to avoid something they don’t want. Unlike reflexive or unlearned behavior,
operant behavior is influenced by the reinforcement or lack of reinforcement
brought about by its consequences.

Reinforcement – Relevant Processes
Models are central to the social-learning viewpoint. Four processes determine
their influence on an individual:
1. Attentional processes. People learn from a model only when they recognize
and pay attention to its critical features. We tend to be most influenced
by models that are attractive, repeatedly available, important to us, or similar
to us in our estimation.
2. Retention processes. A model’s influence depends on how well the individual
remembers the model’s action after the model is no longer readily
available.
3. Motor reproduction processes. After a person has seen a new behavior by
observing the model, watching must be converted to doing. This process
demonstrates that the individual can perform the modeled activities.
4. Reinforcement processes. Individuals are motivated to exhibit the modeled
behavior if positive incentives or rewards are provided. Positively reinforced
behaviors are given more attention, learned better, and performed
more often.

Equity Theory
Referent
Comparisons:
Self-inside
Self-outside
Other-inside
Other-outside

Equity Theory: A Summary and Example
INEQUITABLE RELATIONSHIP
Andy is
overpaid
compared to Bill
Bill is
underpaid
compared to Andy
Bill’s outcomes
($25,000/year)
Bill’s inputs
(40 hours/week)
Andy’s outcomes
($30,000/year)
Andy’s inputs
(40 hour/week)
Andy feels guilty Bill feels angry
EQUITABLE RELATIONSHIP
Andy’s outcomes
($30,000/year)
Andy’s inputs
(40 hour/week)
Andy is equitably paid
compared to Bill
Bill’s outcomes
($30,000/year)
Bill’s inputs
(40 hours/week)
Bill is equitably paid
compared to Andy
Bill feels
satisfied
Andy feels
satisfied

Equity Theory (cont’d)
Based on equity theory, employees who perceive inequity will make one of six
choices:
1. Change inputs (exert less effort if underpaid or more if overpaid).
2. Change outcomes (individuals paid on a piece-rate basis can increase their
pay by producing a higher quantity of units of lower quality).
3. Distort perceptions of self (“I used to think I worked at a moderate pace,
but now I realize I work a lot harder than everyone else.”).
4. Distort perceptions of others (“Mike’s job isn’t as desirable as I thought.”).
5. Choose a different referent (“I may not make as much as my brother-in-law,
but I’m doing a lot better than my Dad did when he was my age.”).
6. Leave the field (quit the job).

Overview of Vroom”s Expectancy Theory
(Peoples Actions are in line with expectations &
Motivation= E Valence X Expectancy)
Effort
Expectancy Instrumentality
Valence of
reward
Performance Reward
MOTIVATION
Role perceptions
and opportunities
Abilities
and traits
JOB
PERFORMANCE
X X
Strength of Preference
For an Outcome + or neutral

ERG Theory (Clayton Alderfer)
Core Needs
Existence: provision of
basic material
requirements.
Relatedness: desire for
relationships.
Growth: desire for
personal development.
Concepts:
More than one need can
be operative at the same
time.
If a higher-level need
cannot be fulfilled, the
desire to satisfy a lower-
level need increases.

Matching Achievers and Jobs

Flow and Intrinsic Motivation Theory

Ken Thomas’s Model of Intrinsic Motivation
 Employees are intrinsically motivated when
rewards an employee gets from work result from:
– Choice– the ability to freely self-select and perform
task activities.
– Competence– the sense of accomplishment from
skillfully performing chosen tasks or activities.
– Meaningfulness– pursuing a task that matters in the
larger scheme of things.
– Progress– the feeling of significant advancement in
achieving the task’s purpose.

Equity Theory (cont’d)
Propositions relating to inequitable pay:
1. Overrewarded employees produce more
than equitably rewarded employees.
2. Overrewarded employees produce less, but
do higher quality piece work.
3. Underrewarded hourly employees produce
lower quality work.
4. Underrewarded employees produce larger
quantities of lower-quality piece work than
equitably rewarded employees

Equity Theory (cont’d)

Expectancy Theory
E X H I B I T 6-8

Performance Dimensions
E X H I B I T 6-9

Motivation and Performance
Work Performance is an outcome of Motivation and is affected by various factors
1. Motivation: Motivation based on a Motive (need) causes a positive tension
resulting in goal directed behavior (Work).
2, Sense of Competence : Depending upon the Locus of Control (intrinsic – by self), or
(External –By events/People/Chance) would be high or otherwise
3. Ability : More real and an outcome of Knowledge and Skill reflects on Performance
4. Role Perception : Individuals ability to identify with the Assigned Role and clarity will
impact performance .Role ambiguity (Lack of Clarity in knowing of demands on the
Role) and Role Conflict (Between two roles that one may perform) affects performance.
5. Organisational Resources : Physical & Psychological (Reward, T & D etc) facilities
Work Environment ,Leadership etc impact facilitation and motivation

Theories of Motivation –Maslow (need Hierarchy),
Frederick Herzberg(Two-Factor Theory ) and David
McClelland's (3 Needs) and Alderfer’s ERG Theory
Physiological needs
(Survival)
Safety needs
(Security ?)
Social needs
(Affiliation & Acceptance)
Esteem needs
(Recognition, Power etc)
Self-
actualization
needs
Lower
order
needs
Higher
order
needs
Need for
Achieveme
nt n/ACH
Need for
Power
n/PWR
Need for
Affiliation
n/AFF
Maslow
Herzberg McClelland
E
X
R
G
Alderfer