Chapter 6Motivating Employees

Dr. Nazrul Islam

AFTER STUDYING THIS CHAPTER,YOU SHOULD BE ABLE TO:Outline the motivation process.Describe Maslows need hierarchy.Contrast Theory X and Theory Y.Differentiate motivators from hygiene factors.Summarize the types of goals that increase performance. State the impact of under-rewarding employees.Clarify key relationships in expectancy theoryL E A R N I N G O B J E C T I V E S

Defining MotivationKey ElementsIntensity: how hard a person triesDirection: toward beneficial goalPersistence: how long a person tries

Theories of MotivationEarly Theories of Motivation - Hierarchy of Needs Theory - Theory X and Theory Y - Two-Factor Theory 2. Contemporary Theories of Motivation - ERG Theory - McClellands Theory of Needs - Cognitive Evaluation Theory - Goal-Setting Theory - Reinforcement Theory - Equity Theory - Expectancy Theory

Hierarchy of Needs Theory

Hierarchy of Needs TheoryPsychological: Includes hunger, thirst, shelter, sex, and other bodily needs.Safety: Includes security and protection from physical and emotional harm.Social: Includes affection, belongingness, acceptance, and friendship.Esteem: Includes internal esteem factors such as self-respect, autonomy, and achievement; and external esteem factors such as status, recognition, and attention.Self-actualization: The drive to become one is capable of becoming; includes growth, achieving ones potential, and self-fulfillment.

Maslows Hierarchy of Needs

Theory X and Theory Y (Douglas McGregor)

Theory X and Theory Y (Douglas McGregor)Assumptions of Theory X1.Employees inherently dislike work and, whenever possible, will attempt to avoid it;2.Since employees dislike work, they must be coerced, controlled, or threatened with punishment to achieve goals;3.Employees will avoid responsibilities and seek formal direction whenever possible;4.Most workers place security above all other factors associated with work and will display little ambition.

Theory X and Theory Y (Douglas McGregor)Assumptions of Theory Y1.Employees can view work as being as natural as rest or play;2.People will exercise self-direction and self-control if they are committed to the objectives;3.The average person can learn to accept, even seek, responsibility;4.The ability to make innovative decisions is widely dispersed throughout the population and is not necessarily the sole province of those in management positions.

Hollands Typology of Personalityand Congruent Occupations

Two-Factor Theory (Frederick Herzberg)

Two-Factor Theory (Frederick Herzberg)Extrinsic Vs. Intrinsic Factors* Intrinsic factors are related to job satisfaction and motivation. These are motivational factors. * Extrinsic factors are associated with job dissatisfaction. These are maintenance factors.

Comparison of Satisfiers and DissatisfiersFactors characterizing events on the job that led to extreme job dissatisfactionFactors characterizing events on the job that led to extreme job satisfaction

Contrasting Views of Satisfactionand DissatisfactionPresenceAbsence

Criticisms of Two-Factor TheoryThe procedure that Herzberg used is limited by its methodology. When things are going well, people tend to take credit themselves. Contrarily, they blame failure on the extrinsic environment.The reliability of Herzberg,s methodology is questioned. Raters have to make interpretations, so they may contaminate the findings by interpreting one response in one manner while treating a similar response differently.No overall measure of satisfaction was utilized. A person may dislike part of his or her job yet still think the job is acceptable.

Criticisms of Two-Factor Theory, Contd.,4. The theory is inconsistent with previous research. The two-factor theory ignores situational variables.5. Herzberg assumed a relationship between satisfaction and productivity, but the research methodology he used looked only at satisfaction, not at productivity. To make such research relevant, one must assume a strong relationship between satisfaction and productivity. Regardless of criticisms, Herzbergs theory has been widely read and few managers are unfamiliar with his recommendations.

ERG Theory (Clayton Alderfer)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.

David McClellands Theory of NeedsThis theory focuses on three needs: achievement, power, and affiliation that help explain motivation.Some people have a compelling drive to succeed. They are for personal achievement rather than the rewards of success.The need for power is the desire to have impact, to be influential, and to control others.Affiliation needs are desires to be liked and accepted by others.

David McClellands Theory of Needs, Contd.,

David McClellands Theory of Needs, Contd.,High Achievers will be Motivated, if

Cognitive Evaluation Theory

Cognitive Evaluation Theory, Contd.,For example, extrinsic rewards such as, PAY for work effort that had been previously intrinsically rewarding due to the pleasure associated with the content of the work itself would tend to decrease the overall level of motivation.This theory argues that when extrinsic rewards are used by organizations as payoffs for superior performance, the intrinsic rewards, which are derived from individuals doing what they like, are reduced.In other words, when extrinsic rewards are given to someone for performing an interesting task, it causes intrinsic interest in the task itself to decline.

Goal-Setting Theory (Edwin Locke, 1960s)Lockle 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 expanded. Specific goals increase performance; that difficult goals, when accepted, result in higher performance than do easy goals.

Reinforcement TheoryA counterpoint to Goal-setting theory is Reinforcement Theory. The former is a cognitive approach, proposing that an individuals purposes direct his or her action.This theory argues, reinforcement conditions behavior. Behavior is a function of its consequences. Reinforcement theorists see behavior as being environmentally caused.Reinforcement theory ignores the inner state of the individual and concentrates solely on what happens to a person when he or she takes some action.

Reinforcement TheoryConcepts:Behavior is environmentally caused.Behavior can be modified (reinforced) by providing (controlling) consequences.Reinforced behavior tends to be repeated.

Equity TheoryReferent Comparisons:Self-insideSelf-outsideOther-insideOther-outside

Equity Theory (contd)Self-inside: An employees experiences in a different position inside his or her current organization.Self-outside: An employees experiences in a situation or position outside his or her current organization.Other-inside: Another individual or group of individuals inside the employees organization.Other-outside: Another individual or group of individuals outside the employees organization.

Equity Theory (contd)Propositions relating to inequitable pay:Overrewarded employees produce more than equitably rewarded employees.Overrewarded employees produce less, but do higher quality piece work.Underrewarded hourly employees produce lower quality work.Underrewarded employees produce larger quantities of lower-quality piece work than equitably rewarded employees

Equity Theory (contd)

Ken Thomass Model of Intrinsic MotivationEmployees are intrinsically motivated when rewards an employee gets from work result from:

Choice the ability to freely self-select and perform task activities.Competence the sense of accomplishment from skillfully performing chosen tasks or activities.Meaningfulness pursuing a task that matters in the larger scheme of things.Progress the feeling of significant advancement in achieving the tasks purpose.

Flow and Intrinsic Motivation Theory

Expectancy TheoryVictor Vrooms Expectancy Theory argues that an employee will be motivated to exert a high level of effort when he or she believes that effort will lead to a good performance appraisal; that a good appraisal will lead to organizational rewards such as bonus, a salary increase, or a promotion; and that the rewards will satisfy the employees personal goals. The theory, therefore, focuses on three relationships:Effort-performance relationshipPerformance-reward relationshipRewards-personal goals relationship.

Expectancy Theory

Performance Dimensions

Integrating Contemporary Theories of Motivation