Motivation Theory2.5 Business and Management

Motivation TheoristsIn the past most management was about

deciding how to get the job done most efficiently

Nowadays managing people (human resources) is much more complex. People, need to be motivated to their job well

a well-motivated workforce is considered a productive workforce

What makes them want to do a good job?. Theorists have studied this problem for a long time. These theorists are called motivation theorists.

Intrinsic vs Extrinsic Needs

Who are the motivational theorists I must study?

Theory type TheoristContent theory Taylor

MaslowMcGregorHerzbergMayo McClelland

Process theory (expectancy) VroomProcess theory (equity) Adams

Content TheoryContent theories seek to explain the specific

factors that actually motivate people

WHAT motivates people?

Frederick Taylor (1856-1915) - Scientific Management

After years of various experiments to determine optimal work methods, Taylor proposed the following four methods of scientific management…

SCIENTIFIC MANAGEMENT1. Methods should all be based on scientific study2. Scientifically select, train and develop each worker rather than

letting them “train themselves” passively – each worker should be adequately suited for the job (abilities, mind-set, etc.)

3. Monitor worker performance and provide instructions and supervision

4. Allocate the work between managers and workers so that the managers spend their time planning and training, allowing the workers to perform their tasks efficiently.

Taylor’s principles of scientific management assumed that employees are primarily motivated by money.He believed that higher productivity could be accomplished by setting output and efficiency targets related to pay.

Taylor (continued)Positives and influence Taylor’s principles applied widely in factories,

increasing productivity up to 3X is some cases Henry Ford enthusiastically embraced Taylor’s ideas in

his automobile factories Families even began adopting a scientific approach to

planning household duties

Criticisms Industrial work became even more monotonous Very little core values such as autonomy, feedback,

variety, professional growth, etc. “Taylorism” began to be rejected by workers,

particularly the introduction of stopwatches – considered dehumanising

Abraham Maslow (1908-1970) - Hierarchy of Needs

Maslow - hierarchyPeople aim to meet basic needs but also seek

to meet successively higher needsHuman actions directed towards goal

attainment (note that some actions could meet multiple needs or steps on the pyramid, such as going to eat in a restaurant with colleagues)

The four lower levels of the pyramid are considered physiological needs, while the top level is considered growth needs

The lower level needs must be satisfied before the higher level needs can influence behaviour

Maslow – Criticisms of the hierarchy Method – Maslow’s research was entirely qualitative

and subjective (looked at writings and biographies of 18 people)

His selections were subjective and almost entirely limited to white, highly educated males such as Aldous Huxley, Thomas Jefferson, Einstein, Lincoln, etc.

Very difficult to judge whether a need has been “met” adequately or not. How does one measure this? Difficult to do empirically.

If someone has lived in a life of poverty, does that mean he or she has not been “self-actualised?” (e.g. Rembrandt, van Gogh)

What about people risking their own safety for the rescue/benefit of others?

Douglas McGregor McGregor - Theory X and Theory Y (1960) represent the different

assumptions managers have about employees These beliefs directly influence their management style (therefore

not technically motivational theory)

Managers – X and Y Theory X Managers (MacGregor) are those who

believe that people are mainly motivated by material rewards and discipline – increases in pay, promotion, fringe benefits balanced by penalties for poor performance.

Theory Y Managers And there are those who believe that people are motivated by factors such as job satisfaction, the pursuit of excellence and the approval of their peers. McGregor’s ideas influenced by Maslow’s Hierarchy of Needs.

Douglas McGregor, The Human Side of Enterprise, 1960

McGregor felt that managers ought to adopt a Theory Y approach

Frederick Herzberg (1923-2000)

Two-Factor TheoryHerzberg’s research focused on

sociological and psychological factors of work (composed primarily of interviews with accountants and engineers)

His research resulted in two categories of factors affecting levels of motivation in the workforce, Hygiene Factors and Motivators

Herzberg (continued)

Hygiene Factors: these cause job satisfaction if they below a level considered as being acceptable by the workforce. Hygiene factors such as pay increases do NOT motivate (in the long term), because workers come to expect them. The real motivating factors are…

Motivators: these factors (achievement, recognition, advancement, etc.) lead to psychological growth and increased worker satisfaction and should be the focus of businesses. Herzberg identified three key areas of motivation…

1. Job enlargement - giving workers more variety to make the work more interesting2. Job enrichment - Give workers more complex and challenging tasks3. Job empowerment - Delegate decision making to boost morale

Herzberg felt that the work itself could be rewarding, that workers were motivated by responsibility for their work

Two-Factor theory criticismdoes not apply to many

occupations - especially low-end, low-skilled

Some employees may not WANT enriched jobs with extra responsibility

Teamworking was not part of his research

Professor Elton Mayo (1880-1949)The Hawthorne Experiments – Western Electric

Company (Chicago, U.S.A.)http://www.youtube.com/watch?v=

W7RHjwmVGhs

The Hawthorne ExperimentsResults? The lighting and other changes had no

impact on the productivity of the workers

Mayo concluded that productivity COULD be improved by…

Better communication between managers and workers (workers were consulted over the experiments and gave feedback)

Greater manager involvement in employees working lives (Hawthorne workers responded to the increased level of attention they were receiving)

Working in groups or teams. ( Hawthorne workers did not previously regularly work in teams)

Professor Elton Mayo (1880-1949)Believed workers concerned with more

than money – desire for fulfillment of social (something that Taylor ignored).

Introduced the Human Relation School Managers took more of an interest in

the workers, treating them as people who have worthwhile opinions

Realised that workers enjoy interacting together – the workplace was a social system

Hawthorne Effect

David McClelland (1917-1998) – Theory of Needs

McClelland identified 3 key needs that must be satisfied to keep workers motivated and morale high

Employers should identify which of the needs are most influential for each individual, though all will be present

This information will enable employers to make the best placement for positions and tasks

Need for AchievementPeople are inspired by the need to

complete tasks successfullyThey like responsibility, but don’t

like being frustrated by failureFrom this such people need to be

given achievable but challenging tasks

These people reflect on performance to identify ways of improving

Need for AffiliationThese are the people who like a

good social and communal feel. They enjoy team work and group

work. favours collaboration over

competition

Need for PowerThese people like to influence others.

There are two types powerpersonal power, which comes from

experience and confidence. They want to pass on their experience to others.

Institutional power comes from position within the organisation. They use their authority to challenge staff to work for the corporate objectives

“Power” people enjoy status and recognition

Implications – How can employers use this information?

Meet the needs of employees – design the workplace to meet these needs

Pay enough so that basic needs can be met

Ask employees what their needs areInvolve and empower employees and

facilitate a team dynamic where appropriate

Don’t assume that what is motivating to one employee is motivating to another

Process TheoryExamine why people behave in a

certain way and how motivation can be maintained and stimulated

Two important theorists…Victor Vroom – Expectancy

TheoryJohn Stacey Adams – Equity

Theory

Victor Vroom (1932-Present) – EXPECTANCY THEORY Currently a professor of Business at Yale

behavior results from conscious choices among alternatives whose purpose it is to maximize pleasure and minimize pain

an employee's performance is based on factors such as personality, skills, knowledge, experience and abilities

although individuals have different goals, all can be motivated if they believe that…

Process TheoriesVroom: Expectancy Theory (cont.)

There is a positive correlation between efforts and performance – “my contribution and effort matter”

Favorable performance will result in a desirable reward

The reward will satisfy an important need

The desire to satisfy the need is strong enough to make the effort worthwhile

Valence refers to the emotional orientations people hold with respect to outcomes [rewards].

Expectancy means employees have different expectations and levels of confidence about what they are capable of doing. Managers must find out and try to develop.

Instrumentality is the perception of employees as to whether they will actually get what they desire even if it has been promised by a manager.

Process TheoriesJohn Stacey Adams: Equity Theory

Process TheoriesJohn Stacey Adams: Equity Theory fair balance between an employee's inputs (hard

work, skill level, tolerance, enthusiasm, and so on) and an employee's outputs (salary, benefits, intangibles such as recognition and so on)

finding this fair balance serves to ensure a strong and productive relationship is achieved – Result? contented, motivated employees.

Inequality exists if those who give more effort are paid a lower salary

These workers will reduce their efforts (input) If this continues workers will become disgruntled

– may lead to absenteeism

Process TheoriesJohn Stacey Adams: Equity Theory

Inputs typically include:

EffortLoyalty

Hard workCommitment

Skill Ability

Adaptability FlexibilityTolerance

DeterminationEnthusiasm

Trust in superiors Support of colleagues

Personal sacrifice

Outputs typically include:

Financial rewards (such as salary, benefits, perks)

Intangibles RecognitionReputationResponsibilitySense of achievementPraiseStimulusSense of advancement/growthJob security

Process TheoriesJohn Stacey Adams: Equity Theory

Problems and Criticisms

If the balance lies too far in favor of the employer, some employees may work to bring balance between inputs and outputs on their own, by asking for more compensation or recognition. Others will be demotivated, and still others will seek alternative employment.

Demographic an psychological variables affect people’s perceptions of fairness

If an employee doesn’t feel the compensation as a whole is fair, then the model is not applicable, even if there IS equal compensation

People might be misinformed about inputs and outputs