Motivation Theories by Operational Excellence Consulting

© Operational Excellence Consulting. All rights reserved.
This presentation is a compilation of PowerPoint descriptions and
diagrams used to convey 8 of the most popular motivation theories
and models.
Motivation Theories
Descriptions and Diagrams of Motivation
Theories & Models

© Operational Excellence Consulting. All rights reserved. 2
Contents
• Introduction to Motivation
Theories
• Content Theories
 Maslow’s Hierarchy of Needs
 Alderfer’s ERG Theory
 Herzberg’s Two-Factor Theory
 McClelland’s Acquired Needs
Theory
• Process Theories
 Adams’ Equity Theory
 Vroom’s Expectancy Theory
 Locke’s Goal-Setting Theory
• Reinforcement Theory
 Skinner’s Reinforcement
Theory
• Challenges of Motivation in the
New Workplace
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Basic concepts of motivation
• Motivation refers to forces within an individual that
account for the level, direction, and persistence of effort
expended at work.
 Direction — an individual’s choice when presented with a
number of possible alternatives.
 Level — the amount of effort a person puts forth.
 Persistence — the length of time a person stays with a given
action.

Why is motivation important?
• Motivational strategies can help improve employee
performance, reduce the chances of low employee
morale, encourage teamwork and instill a positive
attitude during challenging times.
• Employees with a high level of motivation typically work
harder and smarter and can overcome common
workplace challenges with ease; this helps the
organization reach its objectives and improve operations
overall.

Major theories of motivation
Content Theories Process Theories
Reinforcement
Theory
 Maslow’s Hierarchy of
Needs
 Alderfer’s ERG Theory
 Herzberg’s Two Factor
Theory
 McClelland’s Acquired
Needs Theory
 Vroom’s Expectancy
Theory
 Adams’ Equity Theory
 Locke’s Goal Setting
Theory
 Skinner’s
Reinforcement Theory

Maslow’s hierarchy of needs theory
• Developed by Abraham Maslow
• Lower-order and higher-order needs affect workplace
behavior and attitudes
• Lower-order needs:
 Physiological, safety, and social needs
 Desires for physical and social well being
• Higher-order needs:
 Esteem and self-actualization needs
 Desire for psychological growth and development

Maslow’s hierarchy of human needs
Self-actualization needs
Esteem needs
Social needs
Safety needs
Physiological
Needs

Opportunities for satisfaction in Maslow’s hierarchy of
human needs
Self-actualization needs
What satisfies higher order needs?
Esteem needs
Social needs
Safety needs
Physiological needs
What satisfies lower order needs?
 Creative and challenging work
 Participation in decision making
 Job flexibility and autonomy
 Responsibility of an important job
 Promotion to higher status job
 Praise and recognition from boss
 Friendly coworkers
 Interaction with customers
 Pleasant supervisor
 Safe working conditions
 Job security
 Base compensation and benefits
 Rest and refreshment breaks
 Physical comfort on the job
 Reasonable work hours

Alderfer’s ERG Theory
• Developed by Clayton Alderfer
• Three need levels:
 Existence needs — desires for physiological and material well-
being.
 Relatedness needs — desires for satisfying interpersonal
relationships.
 Growth needs — desires for continued psychological growth and
development.

Alderfer’s ERG Theory
Growth
Needs
Relatedness Needs
Existence Needs
NeedProgression
NeedRegression

Herzberg’s two-factor theory
• Developed by Frederick Herzberg.
• Herzberg’s research led to the conclusion that employee
satisfaction and dissatisfaction stem from different
sources.
 Dissatisfaction results from the absence of hygiene factors
 In contrast, satisfaction results from the presence of motivating
factors

Herzberg’s two-factor theory
Improving the
motivator factors
increases
job satisfaction
Improving the
hygiene factors
decreases
job dissatisfaction
Herzberg’s
Two-Factor
Principles
Job Dissatisfaction Job Satisfaction
Influenced by
Hygiene
Factors
_________________
 Working conditions
 Coworker relations
 Policies and rules
 Supervisor quality
 Base wage, salary
Influenced by
Motivator
Factors
_________________
 Achievement
 Recognition
 Responsibility
 Work itself
 Advancement
 Personal growth

McClelland’s acquired needs theory
• Developed by David McClelland
• People acquire needs through their life experiences
• Needs that are acquired:
 Need for Achievement (nAch)
 Need for Power (nPower)
 Need for Affiliation (nAff)

Work preferences of persons high in need for Achievement,
Affiliation and Power
Individual Need Work Preferences Job Example
High need for
Achievement
 Individual responsibility
 Challenging but achievable
goals
 Feedback on performance
 Field sales person with
challenging quota and
opportunity to earn
individual bonus
High need for
Power
 Control over other persons
 Attention
 Recognition
 Formal position of
supervisory responsibility
 Appointment as head of
special task force or
committee
High need for
Affiliation
 Interpersonal relationships
 Opportunities to
communicate
 Customer service
representative
 Member of work unit
subject to group wage
bonus plan

Comparison of Maslow’s, Alderfer’s, Herzberg’s and
McClelland’s motivation theories
Self-
actualization
Esteem
Achievement
Power
Social
Safety
Physiological
AffiliationRelatedness
Existence
Growth Satisfier factors
Hygiene factors
Maslow Alderfer Herzberg McClelland
Higher
order
needs
Lower
order
needs

Process theories and individual motivation
• Process theories
 Focus on the thought processes through which people choose
among alternative courses of action.
 Individual preferences.
 Available rewards.
 Possible work outcomes.
• Types of process theories
 Equity theory.
 Expectancy theory.
 Goal-setting theory.

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

Equity theory and the role of social comparison
Personal rewards
vis-à-vis
personal inputs
Others’ rewards
vis-à-vis
others’ inputs
are compared to
with the result
Perceived Equity
_________________________
The individual is satisfied and
does not change behavior
Perceived Inequity
_________________________
The individual is discomfort and
acts to eliminate the inequity

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.

Expectancy theory
Person
exerts work
effort
to achieve work-related
outcomes
task
performance
and realize
Expectancy
__________________
“Can I achieve the desired
level of task
performance?”
Valence
__________________
“How highly do I value
work outcomes?”
Instrumentality
__________________
“What work outcomes will
be received as a result of
the performance?”

Managerial implications of expectancy theory
 Select workers with ability
 Train workers to use ability
 Support work efforts
 Clarify performance goals
 Clarify physiological contracts
 Communicate performance –
outcome possibilities
 Demonstrate what rewards are
contingent on performance
 Identify individual needs
 Adjust rewards to match these
needs
Make the person feel competent and
capable of achieving the desired
performance level
Make the person confident in understanding
which rewards and outcomes will follow
performance accomplishments
Make the person understand the value of
various possible rewards and work
outcomes
To maximize Expectancy
To maximize Instrumentality
To maximize Valence

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 behavioral self-management.

Fundamentals of reinforcement theory
• Reinforcement theory focuses on the impact of external
environmental consequences on behavior
• Law of effect — impact of type of consequence on future
behavior
• Operant conditioning:
 Developed by B.F. Skinner.
 Applies law of effect to control behavior by manipulating its
consequences.

Reinforcement theory
• Operant conditioning strategies:
 Positive reinforcement
− Increases the frequency of a behavior through the contingent
presentation of a pleasant consequence.
 Negative reinforcement
− Increases the frequency of a behavior through the contingent removal
of an unpleasant consequence.
 Punishment
− Decreases the frequency of a behavior through the contingent
presentation of an unpleasant consequence.
 Extinction
− Decreases the frequency of a behavior through the contingent
removal of an pleasant consequence.

Applying reinforcement strategies: case of total quality
management
High-quality
production
Manager’s
Objective
Praise employee;
recommend pay
increase
Stop
complaints
Withhold praise
and rewards
Reprimand
employee
Positive
reinforcement
Negative
reinforcement
Extinction
Punishment
Type of
Reinforcement
Reinforcement
Strategy
Individual
Behavior
Meets production goals with
zero defects
Meets production goals but
with high percentage defects

Challenges of motivation in the new workplace
• Pay for performance
 Paying people for performance is consistent with:
− Equity theory.
− Expectancy theory.
− Reinforcement theory.
 Merit pay
− Awards a pay increase in proportion to individual performance
contributions.
− Provides performance contingent reinforcement.
− May not succeed due to weakness in performance appraisal system
or lack of consistency in application.

Job design for motivation
• Job design
 Application of motivational theories to the structure of work for
improving productivity and satisfaction.
• Job simplification
 Job design whose purpose is to improve task efficiency by
reducing the number of tasks a single person must do.
• Job Rotation
 Job design that systematically moves employees from one job to
another to provide them with variety and stimulation.
• Job Enlargement
 Job design that combines a series of tasks into one new, broader
job to give employees variety and challenge.

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Motivation Theories by Operational Excellence Consulting

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