Research on Employee Motivation Theories

8/7/2019 Research on Employee Motivation Theories

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Theories of Employee Motivation


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1.0 Need Theory

1.1 Introduction

Need theories see motivation arising from individual needs or desires for things. These needsand desires can change over time and are different across individuals.

There are three popular perspectives on Need theory: Maslows Hierarchy of Needs Alderfers ERG Theory Herzbergs Two-Factor Theory

This lesson briefly highlights the distinctions of each perspective.


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1.2 Hierarchy of Needs

Abraham Maslow proposes that motivation can be represented as a hierarchy of needs. Aslower-level needs are satisfied, workers are likely to be motivated by higher-level needs. Maslowargues that there are five categories of needs: physiological, safety, love, esteem, andactualization.

Physiological needs - basic biological needs for things such asfood, water, and sex

Safety needs - need for safety and a safe physical environment

(e.g., shelter, a safe workplace)

Love needs - need for friendship and partnership

Esteem needs - need for self-respect and for the respect of others

Self-actualization needs - need for self-improvement, fulfillment of personal lifegoals and of one_ potential

Tension-reduction - According to Maslows tension-reduction hypothesis, an unmet needcreates a tension to meet that need. For example, if you need food, you feel tension until theneed is met. Maslow believed that needs were arranged hierarchically such that lower, morebasic needs must be met before higher needs become the point of focus.


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1.3 ERG Theory

Alderfers ERG Theory suggests that there are three classes of needs, not five as Maslowsuggests: existence, relatedness, and growth. Another distinction is that Alderfer proposes thatwhen low-level (existence) needs are not met, they grow. For example, when you are hungry anddo not eat, your hunger grows. On the other hand, higher-level (relatedness and growth) needsgrow when they are met. For example, as you become more productive, your need to beproductive may grow.

Existence needs - need for concrete, tangible things like

food, water, and material possessions Relatedness needs - social needs and the need to haverelationships with other people (e.g., family, co-workers, and supervisors)

Growth needs - need for self-improvement or personal growth, expressionof creativity and productivity

Frustration-regression - According to Alderfers frustration-regression hypothesis, when wehave trouble meeting a particular need, we regress to meet needs at a lower level. When we arehaving trouble meeting growth needs, we are more motivated by relatedness needs. When weare having trouble meeting relatedness needs, we are motivated by existence needs.


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1.4 Two-Factor Theory

In his Two-Factor Theory of motivation, Frederick Herzberg argues that there are two types of factors involved in motivation: extrinsic and intrinsic.

Extrinsic (or hygiene) factors includetangible outcomes and things that focus on workers physical well-being such as pay andbenefits, organizational policies, quality of supervision, job security, job safety,administrative practices, and physical work conditions.

Intrinsic factors include intangible outcomes such as recognition, responsibility,and respect.


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1.5 Motivator factors

Motivator factors - Workers are satisfied and motivated when they are happy with the intrinsicfactors (e.g., levels of responsibility and respect at work), which is why intrinsic factors are alsocalled motivator factors. When workers are not happy with intrinsic factors, argues Herzberg, theyare not satisfied. However, when they feel respected and enjoy the responsibility, they are morelikely to be truly satisfied with their jobs. This suggests that we should focus our attention onintrinsic factors if we want to motivate employees.

Non-motivator factors - Herzberg argues that workers will be dissatisfied with their job whenthey are not happy with the job_ extrinsic factors (e.g., pay). An appropriate level of extrinsicfactors is necessary to avoid job dissatisfaction, but even when employees are happy with their salary, bonus, vacation, and health benefits, they will not necessarily feel satisfied or motivated.With extrinsic factors, Herzberg argues, the best you can hope for is to keep your employeesfrom feeling dissatisfied.

The following chart summarizes these points:

ExtrinsicFactors

IntrinsicFactors

Dissatisfied NotDissatisfied

NotSatisfied

Satisfied


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1.6 Summary

Need theory was once very popular, but none of the perspectives discussed have shown muchrelation to on-the-job performance. One possible reason is that these theories are too general.The needs they describe could be satisfied in many different ways, and so are not necessarilyassociated with job behavior.

On the other hand, Maslows Hierarchy of Needs, Alderfers ERG Theory, and Herzbergs Two-Factor Theory have contributed to our understanding of motivation by showing how people canvary in the rewards they want from work.


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2.0 Behavioral Theories

2.1 Introduction

Two important motivation theories that stem from behavioral psychology are reinforcement andexpectancy theories. Both emphasize that behavior is shaped by rewards and punishment.

Behavioral theories of motivation advocate the use of behavior reinforcement schedules to shapeon-the-job performance.


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2.2 Reinforcement theory

The central premise of reinforcement theory is that the consequences (or outcomes) of behavior influence the likelihood that people will behave the same way again.

For example, lets say you make a suggestion in a committee meeting. If people respondpositively, you are more likely to make other suggestions in other meetings. If people respondnegatively, you are less likely to make other suggestions in other meetings.

2.3 Reward and Punishment

Behavior can be motivated in four ways: through positive or negative reinforcement and byinflicting or removing a punishment.

Positive reinforcement is a form of reward that involves giving the person something that isliked or wanted as a consequence of some behavior. For example, organizations give workersbonuses and bosses give praise for jobs well done.

Negative reinforcement is a form of reward that involves taking away something that is dislikedas a consequence of some behavior. For example, the removal of the sound of an alarm is areward for waking up enough to turn off the alarm.

SomethingLiked

SomethingDisliked

Give + Reinforcement(bonus)

Punishment(spank, KP duty)

Takeaway

Punishment(ground, demote)

- Reinforcement(turn off alarm)

Punishment - People can be punished for doing something inappropriate by the removal of something they like or by the addition of something they dislike. For example, in response to badbehavior, some parents may take away things that their children like (e.g., the ability to use the


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car, talk on the phone, or watch TV). Other parents may instead give their children somethingthey do not like to receive (e.g., a spanking, a lecture, or additional chores).

2.4 Reinforcement SchedulesBehaviorists have recognized that rewards can be given in different ways: through continuous,partial-ratio, and partial-interval schedules.

Continuous reinforcement occurs when people are reinforced or rewarded after every correctbehavior. For example, fur trappers are rewarded after each successful trap; people who work oncommission are rewarded after each successful sale.

Partial reinforcement occurs when people are reinforced or rewarded after certain correctbehaviors. Partial reinforcement can take two general forms: ratio and interval schedules.

Ratio schedules reward people after some number of correct behaviors. People who are

paid on piece-rate pay schedules get paid for every number of items they make, sell, and soon. This type of reinforcement schedule rewards the quality or amount of work withoutconsidering the time spent to meet the pay quota. This can cause problems. Workers canspend a lot of time performing well, without a reward.

Interval schedules reward correct behaviors after some time interval. Organizations oftenadopt a regular pay schedule (e.g., every Friday, every other Friday), and set up rewardsbased on seniority (e.g., three-year bonus, promotion opportunities). Although this systemrewards people for the time they spend working, it does not capture the quality of the workperformance. In the worst scenarios, lazy workers are rewarded for their ability to avoidtermination rather than perform successfully.

Since both ratio and interval schedules have their strengths and weaknesses,

most standard compensation systems provide both time-based and performance-based rewards.


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2.5 Expectancy Theory

Whereas Reinforcement Theory explains how different types of reinforcement shape behavior,Expectancy Theory explains when and why reinforcement impacts behavior.

The Motivation Formula - According to Expectancy Theory, motivation is a function of anindividual_ confidence that he/she can perform a behavior successfully (expectancy) and thatperforming successfully will lead to a desirable outcome (valence and instrumentality). Motivationcan be expressed as a mathematical equation:

Force = Expectancy x (Valences x Instrumentalities)

Force is the amount of motivation a person has to engage in a particular behavior (e.g.,motivation to be highly productive at work).

Expectancy is the confidence an individual feels that he/she can perform the behavior successfully. This is normally stated as a probability (e.g., 80% confident that I can be highlyproductive).

Instrumentality is the confidence an individual feels that performing the behavior will result in aparticular outcome. Again this is expressed as a probability (e.g., 80% sure that high productivitywill lead to a raise or promotion).

Valance is the value a person assigns to that outcome (e.g., a raise would be highly desirable buta promotion would be even more desirable).

This formula suggests that motivation (force) cannot exist unless the individual possesses at least some expectancy, instrumentality, and valance.


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2.6 Summary

An overwhelming amount of research has shown two reliable trends.

(1) When people are rewarded, they are more likely to repeat the behavior that resulted in thereward.

(2) When people are punished they are less likely to behave in the same way again.

This suggests that organizations can use reinforcements or rewards to promote desiredbehaviors... and they do. For example, the Emery Freight Company used reinforcements tospeed up employee's responses to customer requests and to improve the quality of itempackaging. These improvements saved the company 3 million dollars over 3 years.


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3.0 Self-efficacy Theory

3.1 Introduction

Albert Banduras (1982) Self-efficacy Theory asserts that motivation and performance are in partdependent on the degree to which the individual believes he/she can accomplish the task.


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3.2 Defining self-efficacy

Self-efficacy refers to a person_ belief in his/her ability to perform a given task. The term issimilar in meaning to self-confidence and expectancy, though some argue that there aredifferences among these terms. Self-efficacy is sometimes confused with self-esteem also.

Self-efficacy and self-esteem - Self-efficacy is like self-esteem in the sense that it is relatedto a persons feelings of self-worth. Self-efficacy, however, refers to ones ability to perform acertain task, whereas self-esteem reflects a more general belief about ones self-worth. Youcan have strong feelings of self-worth while still recognizing that you are not good at aparticular task (e.g., crossword puzzles). On the other hand, having low self-esteem maycause you to undervalue your ability to perform a particular task.


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3.3 Self-efficacy and motivation

Research has found that self-efficacy does predict performance.

Self-efficacy and the self-fulfilling prophecy - Those who have high self-efficacy are morelikely to try hard and exhibit high levels of commitment (persistence) on a given task. Theyare more likely to succeed as a result. Those who have low levels of self-efficacy feel thatthey are not good at the task and may not try very hard at all. They are less likely to succeed.

Self-efficacy and success - Self-efficacy may develop from prior good performance.Similarly, previous failures can lead to low self-efficacy.

Self-efficacy and goal-difficulty - Self-efficacy interacts with goal setting insofar as peoplewith higher self-efficacy tend to set more challenging goals.

Self-efficacy and goal-commitment _Commitment (or persistence) refers to one_ abilityto overcome obstacles in the pursuit of a goal. With more demanding goals and higher levelsof commitment, people with high self-efficacy put forth greater effort in performing the task(accomplishing the goal).


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3.4 Empowerment Theory

Empowerment theory is an extension or application of self-efficacy theory. It has been usedwidely in organizational settings.

According to empowerment theory, motivation will increase when one_ feelings of competenceand self-determination increase. When people have high self-efficacy, they feel more competentand more capable of self-determination. Therefore, improving self-efficacy is a critical componentof empowerment efforts.


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3.5 Empowerment Strategies

Common examples of empowerment strategies are participatory management practices andflextime.

Participatory decision-making - Sometimes organizations empower employees by asking themto participate in making organizational decisions (e.g., What can we do to cut down on thenumber of accidents?).

Flextime - Flextime is a program that allows workers to design their own work schedule, withincertain constraints. People can choose to work a 9 to 5 day, or an 8 to 4 day, or sometimes a 10to 6 day. Flextime allows the worker to structure the workday, but usually requires workers to beat work during core hours (e.g., 10 to 11 and 1 to 4) so that committees can meet and group workcan be completed.

Research has shown that participatory decision-making can increase commitment to the decisionthat is made and improve motivation.

The research on flextime has shown that job performance and job satisfaction do benefit fromflextime programs, but only sometimes. The most reliable benefit seems to be reducedabsenteeism. Flextime allows time for doctors and dentists visits, late mornings, early days, andmidday engagements, and reduces work-family conflicts.


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3.6 Summary

Self-efficacy can be useful in improving motivation to perform. Gradually increasing task (or goal)difficulty enables the learner to improve while experiencing success, which in turn should improveself-efficacy. Providing training and performance supports (job aids, quick reference guides, etc.)may also improve self-efficacy.

Empowering people, by increasing their levels of decision-making and control, can also motivatepeople to perform, assuming their self-efficacy is high enough to support feelings of competenceand self-determination.

Limitation - One possible limitation of self-efficacy theory is individual ability. People sometimesdon_ believe in their ability to perform a task because they really may not be good at the taskand know this from previous experience. Training, performance support, and graduated taskdifficulty strategies may not always be able to overcome a lack of ability.


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4.0 Equity Theory

4.1 Introduction

J. Stacey Adams (1965) Equity Theory (a.k.a., Social Exchange Theory) suggests that effortdepends on ones perceptions of fairness. According to this theory, people compare their input/output ratio to those of similar others. When the ratio reflects an inequity, tension is createdand so people work to reduce that tension.


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4.2 Input/Output Ratio

The critical element in this theory is the perceived ratio of ones inputs (what I give) to outputs(what I get in return) with respect to others ratios (what they receive and what they give).

Inputs include what the person contributes - their qualifications, their past experiences,seniority, their effort, the time they spend on the job, and so on.

Outputs include what the person is given in return - for example, pay, benefits, appreciation,respect.

Our notion of "equity" is closely linked with our perceptions of justice and fairness. Adamsasserts that as we act to satisfy our needs, we each assess the fairness of the outcome. Each of us asks, Am I getting what I deserve in this exchange?


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4.3 Inequity tension

According to equity theory, when people feel that they give more and get less in return than their co-workers, they feel tension (resentment). Also, when people feel that they get more than their peers, they feel tension (guilt). To reduce this tension people are motivated to:

Adjust their inputs (e.g., work harder or slack off) Sabotage an overpaid worker or the organization Find ways to make up for the inequity (e.g., theft) Avoid the inequity by quitting

Research has shown that people are motivated to act when they feel cheated. Less researchsupports the idea that people are motivated to act when they are overpaid in some way.


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4.4 Procedural justice

Equity Theory was popular among industrial/organizational psychologists at one time, but interestin it began to decline in the mid 1980s. While research has found that employee perceptions of inequity correlates with intentions to quit and job search behavior, it is often difficult to tell whatworkers will perceive as inequitable and how they will respond to inequities. It may vary byindividual even within a given context.

Lacking the ability to use it to predict motivation and performance, Equity Theory has fallen out of favor. However, in the 1990s, fairness research began to focus on the idea of procedural justice,which deals with the perceived fairness of the distribution process. It may be more important toknow if employees perceive the reward distribution process as fair than whether or not theyperceive the reward itself as equitable.


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4.5 Summary

Equity Theory emphasizes the importance of employee perceptions about input/output ratios.When employees believe that they are over or underpaid, the resulting tension motivates them toeliminate the inequity.

Limitation - While this is helpful to know, in that it focuses our attention on potential inequities, itis not does not necessarily help managers predict when individuals will feel cheated. Without thispredictive capability, the theory has limited application.

Procedural justice theories focus on reward processes, rather than the rewards themselves.Future equity research is likely to focus on both the equity of the reward distributions and thefairness of the distribution process.


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5.0 Goal-Setting Theory

5.1 Introduction

Building on Banduras self-efficacy research, Edwin Locke and Gary Latham (1990) proposedGoal-setting Theory. According to Goal-setting Theory, goals direct our mental and physicalactions. Goals serve two functions:

Goals serve as performance targets that we strive to reach.

Goals serve as standards against which we measure our own performance.

Locke and Latham argue that the outcome of your performance can affect your future effort. Inthis way, goals provide us with a means of regulating our effort.


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5.2 Goal specificity

Specific goals benefit motivation and performance more so than vague goals. Specific goalsprovide people with a sharper point of focus. For example, the goal raise profitability 10% thisyear is likely to be more effective than Lets be more profitable.

Research has shown that people who have vague goals are more likely to be satisfied withgood performance even though they are capable of better performance.

People also tend to give more effort when they are trying to reach harder goals. One mightthink that people would prefer jobs with easy goals, but they usually do notjobs with easygoals are usually boring. Also, many organizations provide better rewards for meeting difficultgoals than they do for meeting easier goals.

Performance feedback impacts future effort. By measuring performance against goals,organizations are able to provide workers with feedback that enables them to regulate their efforts. Given the right circumstances, failure to meet a goal can motivate an individual towork harder.


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5.3 Circumstance

Research has shown that specific and difficult goals do motivate people toward their bestperformance. However, this happens only when the proper circumstances exist:

Workers have the necessary qualifications to meet the goal

Feedback is provided to assist the effort-regulation process

Workers believe that they can meet the goal (i.e., have high self-efficacy)

Workers are committed to the goal

The goal is obtainablewasted effort on an unrealistic goal is a demotivator


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5.4 Management by objectives (MBO)

Goal-setting theory has emerged as one of the top motivational theories for two reasons. First,the research suggests that it is very effective. Second, there has been an increase in the use of the Management by Objectives (MBO) strategy, which is a practical extension of goal-settingtheory.

With MBO, the manager and the individual employee meet and agree on performance goals,which are then used to evaluate the employee's performance later.

MBO performance goals typically have the following characteristics:

Are aligned with higher level goals (e.g., business unit,divisional, and organizational goals) Are mutually agreed-upon (so there is buy-in from theemployee) Specify behavior (e.g., reduce data entry errors for aparticular department) Specify measurable evaluation criteria (e.g., reduceerrors by 20%) Specify when the goal will be achieved (e.g., by the endof the first quarter) Specify who is responsible (e.g., names of task forcemembers) Often identify resources that will be needed (e.g.,training, materials, job aids, etc.) Sometimes identify interim performance checks (e.g., weekly progressreports)


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5.5 Summary

Since the 1990s, Goal-setting Theory has become the predominant achievement motivationtheory in industrial/organizational psychology and has demonstrated its effectiveness inorganizational settings. According to Locke and Latham, people are motivated by the prospectsof meeting specific, difficult goals.

Limitation - In response to goal-setting theory, other researchers have argued that settingspecific, difficult goals is not always beneficial. It places the focus on performance, which is notbeneficial to novice workers who are still trying to learn job tasks and duties. Placing the focus onperformance can disrupt the novices ability to develop useful strategies. Consequently, settingspecific, difficult goals can benefit performance, but only after the worker has had some time tolearn and explore aspects of the job.

Research on Employee Motivation Theories

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