MOTIVATION

MOTIVATION CONCEPTSAND MOTIVATION IN THE WORKPLACE

MOTIVATION

Motivating Employees• First class cards at Ritz Carlton Hotel or at Taj Hotel

–telephone calls from the CEO of Keyspan or Call from RatanTata –various celebration for good performance at Marriot Hotel are designed to maintain and improve employee motivation

• Motivation refers to the forces within a person that affect the direction-intensity-and persistence of voluntary behavior

MOTIVATION

• Motivated employees are willing to exert a particular level of effort(intensity)for a certain amount of time(persistence)toward a particular goal(direction)

• Motivation is one of the four essential drivers of individual behavior and performance-as per MARS model

• Motivation is an integral component of employee engagement

• An engaged workforce is an important predictor of an organization’s competitiveness

MOTIVATION

• Motivation has become more challenging in recent years

• The quest for a motivated and engaged workforce has not been easy

• Most employers -92 percent say motivating employees has become challenging

MOTIVATION

• Three factors seem responsible for this increasing challenge –First challenge

1. Globalization 2. InformationTechnology3. Corporate restructuring

• Other changes have dramatically altered the employment relationship

• These changes undermine the levels of trust and commitment necessary to energize employees beyond minimum standards

MOTIVATION

• Second challenge -in decades past companies relied on armies of supervisors to closely monitor employee behavior and performance

• Today companies thinned their supervisory ranks when they flattened the organization structure

• Supervisors have more employees-difficult to keep a watchful eye out for laggards

• The educated workforce resents the old command and control approach to performance management

• Employers need more contemporary ways to motivate staff

MOTIVATION

• The Third Challenge-the new generation of employees has brought different expectations to the workplace

• Generation X and Generation - Y as slackers –cynics-whiners

• Many companies still haven’t figured –how to motivate them

MOTIVATION

Needs Drives and Employees Motivation • Motivation begins with individual needs and their underlying drives

• Needs-Deficiencies that energize or trigger behaviors to satisfy those needs

-unfulfilled needs create a tension that makes us want to find ways to reduce or satisfy those needs

-The stronger your needs the more motivated you are to satisfy them-Conversely a satisfied need does not motivate

• Drives are instinctive or innate tendencies to seek certain goals or maintain internal stability

• Needs are typically produced by drives but they may also be strengthened through learning(reinforcement)and social forces such as culture and childhood upbringing

Defining Motivation The Meaning of motivation Virtually all people –practitioners and scholars have their own definitions of

motivation Desires,wants,wishes,aims,goals,needs,motives and incentives

Technically the term motivation can be traced to The Latin word movere which means “to move”

Motivation is a process that starts with physiological or psychological needs that activates a behavior or a drive that is aimed at a goal or incentive

The key to understaning the process of motivation lies in the meaning of and relationships among needs drives and incentives

Needs-------------- Drives IncentivesThis figure depicts the motivation process

Needs set up drives aimed at incentives

Defining Motivation• Motivation refers to the forces within a person that affect the direction ,intensity

and persistence of voluntary behavior

• Motivated employees are wiling to exert a particular level of effort (intensity)-effort allocated to that goal

-continuing the effort for a certain amount of time (persistence)

-to ward a particular goal (direction)-the path along which people engage their effort –motivation is goal directed

Defining Motivation

• Motivation

• The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal.

Key Elements1. Intensity: how hard a person tries2. Direction: toward beneficial goal3. Persistence: how long a person triesMotivated individuals stay with a task longenough to achieve their goal

Early Theories of Motivation• The 1950’s were fruitful period in the development of

motivation concepts

• Three specific theories were formulated during this period

• Were heavily attacked and now questionable in terms of validity are probably the best known explanation for employee motivation

• They are the hierarchy of needs theory, Theories X and Y theory and the two factor theory

• These theory should be known for two reasons :-

Early Theories of motivation

(1) They represent a foundation from which contemporary theories have grown

(2) Practicing managers still regularly use these theories and their terminology in explaining employees motivation

Motivational Models

Models

Early Theories Contemporary Theories

Scientific Management

Human Relation Model Content Theories Process Theories

Maslow’s Need

Hierarchy theory

Herzberg Two factor Theory

Alderfers ERG Theory

Achievement MotivationTheory of McClelland

Goal Setting Theory Vrooms Expectancy Theory

Adms’s Equity TheoryPorters performance

satisfaction Model

Content theories -Hierarchy of Needs Theory (Maslow)

Hierarchy of Needs Theory

There is a hierarchy of five needs—physiological, safety, social, esteem, and self-actualization; as each need is substantially satisfied, the next need becomes dominant.

Self-Actualization

The drive to become what one is capable of becoming.

Maslow’s Hierarchy of Needs

Lower-Order NeedsNeeds that are satisfied externally; physiological and safety needs.

Higher-Order NeedsNeeds that are satisfied

internally; social, esteem, and self-actualization

needs.

Assumptions of Maslow’s Hierarchy

Movement up the Pyramid

• Individuals cannot move to the next higher level until

all needs at the current (lower) level are satisfied.

Maslow Application:A homeless person will not be motivated tomeditate!

• Individuals therefore

must move up the

hierarchy in order.

Content Theories

Fredrick Herzberg (1957) conducted his study on accounts and engineers to determine the factors in an employees work environment which caused satisfaction or dissatisfaction

Fredrick Herzberg developed the two –factor model called the motivation –Hygiene Theory

Research involved interviewing employees where they were asked what satisfied or dissatisfied them about their work

Found that the factors causing job satisfaction (presumably motivation)were different from those causing job dissatisfaction

Labeled the satisfiers as motivators and dissatisfiers as hygiene factors(the term hygiene was used to indicate maintenace factors that are necessary to avoid dissatisfaction but they themselves do not provide satisfaction)

Two-Factor Theory (Frederick Herzberg)Two-Factor (Motivation-Hygiene) Theory

Intrinsic factors are related to job satisfaction, while extrinsic factors are associated with dissatisfaction.

Hygiene Factors

Factors—such as company policy and administration, supervision, and salary—that, when adequate in a job, placate workers. When factors are adequate, people will not be dissatisfied.

Two-Factor Theory (Frederick Herzberg)

Bottom Line: Satisfaction and Dissatisfaction are not Opposite Ends of the Same Thing!

Separate constructs– Hygiene Factors---

Extrinsic & Related to Dissatisfaction

– Motivation Factors---Intrinsic and Related to

Satisfaction

Hygiene Factors:

•Salary

•Work Conditions

•Company Policies

Motivators:

•Achievement

•Responsibility

•Growth

Two-Factor Theory (Frederick Herzberg)

• The following table presents the factors causing dissatisfaction and satisfaction

Hygiene factors Motivators

Company policy Achievement

Supervision Recognition

Relationship w/Boss Work itself

Work conditions Responsibility

Salary Advancement

Relationship w/Peers Growth

ERG Theory

• Maslow’s needs theory has received wide recognition among practicing managers

• Unfortunately researches do not validate the theory

• Clayton Alderfer attempted to rework Maslow’s need hierarchy to align it more closely with empirical research-(through practical experience)

• His revised need hierarchy is labeled ERG theory

• Aldefer argued that there are three groups of core needs-existence(similar to Maslow’s physiological and safety needs) relatedness(Maslow’s social/status needs)growth(Maslow’s Esteem needs and self actualization)

ERG Theory (Clayton Alderfer)

6–22

Core NeedsExistence: 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.

ERG Theory

There are three groups of core needs: existence, relatedness, and growth.

Theory X and Theory Y (Douglas McGregor)

Theory XAssumes that employees dislike work, lack ambition, avoid responsibility, and must be directed and coerced to perform.

Theory YAssumes that employees like work, seek responsibility, are capable of making decisions, and exercise self-direction and self-control when committed to a goal.

Theory XManagers See Workers As…

Disliking Work

Avoiding Responsibility

Having Little Ambition

Theory YManagers See Workers As…

Enjoying Work

Accepting Responsibility

Self-Directed

Contemporary Theories of Motivation-Content Theories McClelland’s Theory of needs

In the late 1940’s psychologist David I McClelland and his co workers began experimenting with Thematic Apperception Test (TAT) as a way measuring human needs

TAT is a projective technique that asks people to view pictures and write stories about what they see

Experiment on three executives a photograph of a man-each viewed differently

1. McClelland identified three themes in these TAT stories with each corresponding to an underlying need that he believes is important for understanding individual behavior these needs are:

1.Achievement(nAch)2.Power(npow)3.and affiliation(nAff)

David McClelland’s Theory of Needs

© 2005 Prentice Hall Inc. All rights reserved. 6–26

nAch

nPow

nAff

Need for AchievementThe desire to do something better or more efficiently to solve problems or master complex tasks

Need for AffiliationThe desire for friendly and close personal relationships.

Need for PowerThe desire to control others to influence their behavior or to be responsible for others

Expectancy Theory• Most widely accepted explanations of motivation is Victor Vrooms expectancy

theory• Victor Vrooms expectancy theory posits that motivation is a result of a rational

calulation

• A person is motivated to the degree he or she believes that 1. effort will yield acceptable performance2. performance will be rewarded and3.the value of the rewards is highly positive

• The interactive combination of all three influences motivation• A basic premise of the expectancy theory is that employees are rational and not

impulsive • People think about what they have to do to be rewarded and how much the

rewards mean to them before they perform their jobs

Expectancy Theory

Expectancy Theory (Victor Vroom)

The strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual.

Equity Theory

Referent Comparisons -J. Stacy Adams proposed that this negative state of tension provides motivation to correct it Self-inside-An employee experiences in a different position inside the employee’ s current organizationSelf-outside-An employee experiences in a situation or position outside the employee’s current organizationOther-inside-Another individual or group of individuals inside the employees organizationOther –outside-Another individual or group of individuals outside the employee’s organization

Equity Theory

Individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequities.

Equity Theory (cont’d)

Equity Theory –fairness- focused

Distributive Justice

Perceived fairness of the amount and allocation of rewards among individuals.

Procedural Justice

The perceived fairness of the process to determine the distribution of rewards.

Justice and Equity Theory

Equity TheoryThe effective manager• Steps for managing the Equity Process Recognize that equity comparisons are inevitable in the workplace

Anticipate felt negative inequities when rewards are given

Communicate clear evaluations of any reward given

Communicate an appraisal of performance on which reward is based

Communicate comparison points appropriate in the situation

Process Theories Goal Setting Theory• In the late 1960’s Edwin Locke proposed that intentions to work

toward a goal are a major source of work motivation

• Goals tell an employee what needs to be done and how much effort will need to be expended

• The evidence strongly supports the value of goals

• We can say that specific goals increase performance

• Difficult goals when accepted result in higher performance than easy goals

• Feedback leads to higher performance than does no feedback

Goal Setting Theory• Goal setting is the process of motivating employees and

clarifying their role perceptions by establishing performance objectives

• It potentially improves employee performance in two ways

1. By stretching the intensity and persistence of effort and

2. By giving employees clearer role perceptions so that their effort is channeled toward behaviors that will improve work performance

Goal setting theory• Goal setting theory has been supported by research conducted over 40

years suggesting that it is a valuable source of insight into how the goal –setting process works

• Goal setting theory is highly regarded that it has been ranked as the most influential of all OB theories by management scholars

The Goal setting process

Desire to Attain goal Perceived chance of attaining goal

Goal commitment

Self efficacy beliefs

Desire to feel competent

Recognize challenge of

higher goal levelPerformance at goal level

Goal Setting theoryGuidelines for setting effective performance goals

Assign specific goals

Assign difficult but acceptable performance goals

-Stretch goals-goals that are so difficult that they challenge people to rethink the way they work

Vertical stretch goals-stretch goals that challenge people to achieve higher levels of success in current activities-purpose is to improve individual and organizational effectiveness -instead of working to boost annual sales by 10% as usual strive to

raise sales by 50%

ContdLimitations of Goal setting theory• One problem is that combining goals with monetary incentives motivates many

employees to set up easy rather than difficult goals-in some cases employees have negotiated goals with their supervisor that have already been completed

• Another limitation is that goal setting focuses employees on a narrow subset of measurable performance indicators while ignoring aspects of job performance that are difficult to measure(what gets measured gets done)

• Third problem is that setting performance goals is effective in established jobs but seems to interfere with the learning process in new complex jobs

• We therefore need to be careful not to apply goal setting where intense learning process is occurring

MBO Programs Putting Goal Setting Theory into Practice

Goal –setting theory has an impressive base research support

As a manager how do you make goal setting operational?

One answer is install management by objectives(MBO) program

MTW Corp a provider of software services mainly for insurance companies and state governments has an MBO –type program

-Management attributes this program with helping the company average a 50 percent –a –year growth rate for 5 years in a row and cutting employee turnover to one –fifth of the industry norm

Management by objectives emphasizes participatively set of goals that are tangible verifiable and measurable

What is MBO?

Key Elements1. Goal specificity2. Participative decision making3. An explicit time period4. Performance feedback

Management by Objectives (MBO)

A program that encompasses specific goals, participatively set, for an explicit time period, with feedback on goal progress.

Cascading of Objectives

Why MBO’s Fail

You will find MBO programs in many business health care Educational government and non profit organizations

MBO’s popularity should not be construed to mean that it always worksThere are number of documented cases in which MBO has been Implement but failed to meet management ‘s expectations

Why MBO’s Fail

Unrealistic expectations about MBO results Lack of commitment by top management Failure to allocate reward properly Cultural incompatibilities(Fujitsu scrapped its MBO –typeProgram –found it did not fit wellwith the Japanese culture’s emphasis on minimizing riskand emphasizing long term goals)

How are Motivation job satisfaction and performance related?• Job satisfaction is the degree to which individuals feel positively or negatively

about their job• It is an attitude or emotional response to one’s tasks as well as to the physical

and social conditions of the workplace• On a daily basis managers must be able to infer the job satisfaction of others

by careful observation and interpretation of what they say and do while going about their job

• Two popular job satisfaction questionnaires are • MSQ(Minnesota Satisfaction Questionnaire-measures satisfaction with

working conditions,chances of advancement,freedom to use one’s own judgement,praise for doing good job,feeling of accommplishment

• JDI (Job Description Index)-the facets job satisfaction is the work itself-responsibility,interest and growth Quality of supervision-technical help and social support Relationships with co-workers-social harmony and respect promotion opportunities and Pay

ContdJob satisfaction and performance• Job satisfaction can be viewed in the context of two decisions people make about

their work

The first is the decision to belong-that is to join and remain a member of an organization(absenteeism turnover)

The second is the decision to perform-that is to work hard in pursuit of high levels of task performance(satisfaction causes performance/performance causes satisfaction/rewards cause both performance and satisfaction

• Not everyone who belongs to an organization performs up to expectations