Motivation

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MGF1010: Introduction to Management
Week :
Motivation

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• Slideshare
• MGF1010
• http://www.slideshare.net/kirtimishra11

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Aims
• Define motivation and understand its importance
for managers.
• Discuss content and process theories, the basic
concepts behind each and ensure students
understand what theories apply to each.
• Recognise the TWO content theories (Herzberg’s
two-factor theory and Three-needs Theory
McClelland) and TWO process theories (Equity
theory and Expectancy theory).
• Consider the role of money as a motivator based
on the above theories.

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Motivation exercise
• Motivation to work
• Think about your own motivation,
• Compare your own experiences with
Herzberg’s theory of motivation

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What is Motivation
Motivation is the process by which a person’s efforts are
energised, directed and sustained towards attaining a goal.
Three key elements are important to this definition: energy,
direction and persistence.
The energy element is a measure of intensity or drive. A
motivated person puts forth effort and works hard.
High levels of effort are unlikely to lead to favourable job
performance unless the effort is channelled in a direction that
benefits the organisation.
Finally, motivation includes a persistence dimension. We want
employees to persist in putting forth effort to achieve those
goals.

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Theories of Motivation to Work
Content
what motivates an individual
• Hierarchy of Needs
– Maslow
• Theory X and Y
– McGregor
• Two-Factor Theory
– Herzberg
• Three-Needs
– McClelland
Process
how motivation is
energised and
sustained
• Goal Setting
• Reinforcement
• Equity
• Expectancy

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Content Theories
• Maslow
• Physiological needs (basic food,
drink, water, shelter and sexual
needs),
• Safety needs (security and protection
from physical and emotional harm),
• Social needs (affection,
belongingness, acceptance and
friendship),
• esteem needs (internal factors such
as self-respect, autonomy and
achievement, and external factors
such as status, recognition and
attention)
• Self-actualisation needs (a person’s
drive to become what he or she is
capable of becoming)
• McGregor
• Theory X is the assumption that
employees dislike work, are
lazy, seek to avoid responsibility
and must be coerced to perform.
• (lower order needs)
• Theory Y is the assumption that
employees are creative, enjoy
work, seek responsibility and
can exercise self-direction.
• (higher order needs)

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McClelland
• Need for achievement (nAch): is the
drive to excel, to achieve in relation
to a set of standards and to strive to
succeed.
• Need for power (nPow):the need to
make others behave in a way that
they would not behave otherwise
• Need for affiliation (nAff): is the
desire for friendly and close
interpersonal relationships
Herzberg
Extrinsic factors = Job Dissatisfaction
Intrinsic factors = job satisfaction.
1. Hygiene factors/ Extrinsic factors: These were
things like, for example, company policy,
relationship with supervisor, working
conditions and salary.
2. Motivators/Intrinsic factors: The factors
associated with satisfaction he termed
motivators. These were, for example,
achievement, recognition, work itself,
responsibility, and advancement and growth.
According to Herzberg, managers who sought to
eliminate job dissatisfaction could bring about
workplace harmony, but not necessarily
motivation. In order to increase job satisfaction,
Herzberg suggested managers look at improving
the motivators in the employee’s work situation.

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Equity Theory
Employees perceive what they get
from a job situation (outcomes) in
relation to what they put into it
(inputs) and then compare their
inputs–outcomes ratio with those of
relevant others (referents).
The referents are the persons, systems
or selves against which individuals
compare themselves to assess equity.
Equity theory recognises that
individuals are concerned with their
absolute rewards as well as the
relationship of those rewards to what
others receive. If employees perceive
inequity, they will act in different ways
to correct the situation.
Expectancy
Individual tends to act in a certain way
based on the expectation that the act will
be followed by a given outcome and on
the attractiveness of that outcome to the
individual. Three relationships are
important to this theory
Effort–performance (EXPECTANCY): is the probability
perceived by the individual that exerting a given amount of
effort will lead to a certain level of performance.
Performance–reward(INSTRUMENTALITY): is the
degree to which an individual believes that performing at a
particular level is instrumental in, or will lead to, the
attainment of a desired outcome.
Attractiveness of reward (VALENCE): Attractiveness of
the reward (valence) is the importance that the individual
places on the potential outcome or reward that can be
achieved on the job.

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Justice
Distributive justice
Distributive justice is the
perceived fairness of the amount
and allocation of rewards among
individuals.
Influences Employee satisfaction
more
Procedural Justice
Procedural justice is the perceived
fairness of the process used to
determine the distribution of
rewards.
Influences employee commitment
& trust in supervisors.
The implication of this is that managers should consider openly sharing
information on how allocation decisions are made, follow consistent and
unbiased procedures, and engage in similar practices to increase the
perception of procedural justice. By increasing the perception of procedural
justice, employees are likely to view their bosses and the organisation as
positive even if they are dissatisfied with pay, promotions and other personal
outcomes.

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Cross-cultural challenges of motivation.
In today’s global environment, motivational programs that work in one location
may not be effective in another.
There is an American bias in some of the motivational theories.
For example, in Japan, Greece and Mexico security needs would be at the top
of Maslow’s hierarchy. The motivation concept of achievement need clearly has
an American bias. Equity theory is also relatively strong in countries where
salaries are based on pay-for-performance systems.
However, there are some aspects of motivation theory that appear to be
transferable. For instance, reinforcement techniques have shown themselves to
be effective in changing performance-related behaviours in different countries.
There also seems to be some universality to the importance of intrinsic factors
identified by Herzberg in his two-factor theory.

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Discuss the challenges managers face in
motivating unique groups of workers
Motivating a diverse workforce requires managers to think in terms of
flexibility.
Employees have different personal needs and goals that they are hoping to satisfy
through their job. A diverse array of rewards is needed to motivate employees with such
varied needs. Offering options such as compressed work-weeks, flexible work hours, job
sharing and telecommuting can be some solutions. There are also particular groups that
may offer special challenges.
For example, special challenges in motivating professionals include their long-term
commitment to their field of expertise, to which they will display greater loyalty than to
any one employer. Money and promotions are typically low on professionals’ priority list.
Contingent workers, on the other hand, lack the security that permanent employees have
and do not identify with or display much commitment to the organisation. Temporary
workers also typically lack benefits such as superannuation. Low-skilled minimum-wage
workers typically have limited education and skills, therefore, offering higher pay is
usually not an option.

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List some practical suggestions for
motivating employees
• recognise individual differences,
• match people to jobs,
• use goals,
• ensure that goals are perceived as attainable,
• individualise rewards,
• link rewards to performance,
• check the system for equity,
• don’t ignore money.

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Lets Discuss
In pairs discuss:
• Most of us have to work for a living, and a job is a central
part of our lives. So, why do managers have to worry so
much about employee motivation issues?
• Describe a task you have done recently for which you
exerted a high level of effort. Explain your behaviour by
using any of the motivation approaches described in the
chapter.

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Class Discussion
• In Groups of 3
• If you had to develop an incentive system
for a small food-manufacturing company
with mostly unskilled employees, which
elements from which motivation
approaches or theories would you use?
Why? Would your choice be the same if it
was a software design firm with mostly
skilled employees?

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Case Study –Auspol Case
• Groups of 2 – 4
• Identify the problems
• Classify the problems (theory)
> Organisational Culture
> Leadership
> Motivation
> What are potential solutions
• Recommendations