Theories of Motivation Contemporary (Process)Early (Content) Theories Theories “Emphasis on what “Emphasis on actual motivates individuals” process of motivation”1. Maslow’s Hierarchy of 1. Cognitive Evaluation Needs Theory2. ERG Theory of Alderfer 2. Goal-Setting Theory3. Gregor’s Theory X and 3. Self-Efficacy Theory Theory Y 4. Reinforcement Theory4. Herzberg’s Two-Factor 5. Equity Theory Theory 6. Vroom’s Expectancy5. McClelland’s Theory of Theory Needs 2
Behavioural Theories• Each reward or element of compensation/ reward has abehavioural objective and seeks to fulfill a need( physiologicalor psychological) and achieve a goal.• Two groups of motivation theoriesContent theoriesProcess theories
Maslow’s Hierarchy of Needs Higher-Order Needs Satisfied internallyLower-OrderNeedsSatisfiedexternally 4
Maslow’s Need Hierarchy Theory•Proposed by Abraham Maslow.•There are 5 levels of needs.•Needs are arranged in order of importance•Lower level needs must be met first.•Each level must be at least minimally satisfied before a higher levelneed occurs•Only unmet needs motivateHierarchy of Needs TheoryThere is a hierarchy of five needs—physiological, safety, social,esteem and self-actualization; as each need is substantiallysatisfied, the next need becomes dominant
ERG Theory (Clayton Alderfer)There are three groups of core needs: existence,relatedness, and growth.Core NeedsExistence: provision of basic material requirements.Relatedness: desire for relationships.Growth: desire for personal development.
Comparison ofHierarchy of Needs & ERG Theories SA Growth Esteem Love (Social) Relatedness Safety & Security Existence Physiological
Theory X and Theory Y (Douglas McGregor) Theory X Negative view of human-beings: Assumes that employees dislike work, lack ambition, avoid responsibility, avoid leading and prefers to be led and supervised; must be directed and coerced to perform Theory Y Positive view of human-beings: Assumes that employees like work, seek responsibility, are capable of making decisions, exercise self-direction and self- control; Commitment to goals and objectives is a function of rewards available, especially appreciation and recognition He believed that assumptions of Theory Y were more valid; and, prescribed ideas such as Participative decision-making, Responsible & Challenging job assignments, etc. to motivate employees 8
Hertzbergs Two-Factor Theory• Proposed by Frederick Hertzberg.• Also known as Motivation- Hygiene theory.Hygiene factors avoidjob dissatisfaction•Company policy &administration• Supervision• Interpersonal relations• Working conditions• Salary• SecurityMotivation factorsincrease job satisfaction•Achievement• Achievement recognition• Work itself• Responsibility• Advancement• Growth
Satisfaction is affected by motivators and dissatisfaction byhygiene factors.• Hygiene factors/ extrinsic factors are related to lower levelneeds• Motivating factors/ intrinsic factors relates to higher levelneeds
David McClelland’sTheory of Needs / Acquired Needs Theory Need for Power The need to make others behave in a way that they would not have behaved otherwise; the desire to control others, to influence their behavior, or to be responsible for others nPowNeed for Need for AffiliationAchievement nAch nAff The desire for maintaining friendlyThe drive to excel, to and close personalachieve in relation to a relationshipsset of standards, tostrive to succeed 11
Content Theories: Summary Maslow Maslow Alderfer Herzberg McClellandSelf-Actualization Need for Growth Motivators Achievement Esteem Need for Power Affiliation Relatedness Hygiene Need for Affiliation Security Factors Existence Physiological 12
Self-Efficacy TheoryTheory asserts that motivation and performance are in partdependent on the degree to which the individual believeshe/she can accomplish the taskSelf-efficacy refers to a person’s belief in his/her ability toperform a given taskThose who have high self-efficacy are more likely to try hardand exhibit high levels of commitment (persistence) on agiven task; they are more likely to succeed as a resultSelf-efficacy interacts with goal setting in so far as people with higher self-efficacy tend to set more challenging goals
Ways to increase Self-Efficacy are:1. Enactive Mastery - Relevant Past Experience 2. Vicarious Modeling – Seeing someone else does the task3. Verbal Persuasion - Someone convincing the individual of possessing necessary skills 4. Arousal – An energized state / mood
Reinforcement Theory The assumption that behavior is a function of its consequences Concepts: Behavior is environmentally caused Behavior can be modified (reinforced) by providing (controlling) consequences Reinforced behavior tends to be repeated Various Reinforcement schedules are in use•Contradictory to Goal-setting theory which is a cognitive approach (individual’s purposes direct his behaviour)• Theory ignores feelings, expectations, attitude, etc. of a person to affect his behaviour
Equity Theory• Put forward by John Stacey Adams• According to this theory an employee who perceives inequityin his or her rewards seeks to restore equity.• The theory emphasizes equity in pay structure of employeesremuneration.• When the employees perceive inequity it can result in lowerproductivity, higher absenteeism and increase in turnoverDimensions of equity• Internal equityEmployees should feel that pay differentials are fair,given the corresponding differences in jobresponsibilities• External equityJobs are fairly compensated in comparison to similarjobs in the Labour market• Individual equityIt ensures equal pay for equal job
Expectancy Theory• Proposed by Victor Vroom• Also Known as V-I-E Theory• The strength of a tendency to act in a certain way depends onthe strength of an expectation that the act will be followed bya given outcome and on the attractiveness of that outcome tothe individual.
Expectancy Theory ofMotivation: Key Constructs• Valence - value or importance placed on a particularreward/outcome• Expectancy - belief that effort leads to performance• Instrumentality - belief that performance is related torewards/ or the belief that first level of outcome will leadto second level of outcomeIndividual Effort- >individual Performance ->Organizational Rewards-> Personal Goals• Effort performance relationship• Performance-Reward relationship• Rewards- personal goals relationship
Goal Setting Theory of MotivationIn 1960’s, Edwin Locke put forward the Goal-setting theory ofmotivationIt states that specific and challenging goals along with appropriate feedbaccontribute to higher and better task performance.In simple words, goals indicate and give direction to an employee aboutwhat needs to be done and how much efforts are required to be put in.
Advantages of Goal Setting Theory•Goal setting theory is a technique used to raise incentives foremployees to complete work quickly and effectively.•Goal setting leads to better performance by increasingmotivation and efforts, but also through increasing andimproving the feedback quality.