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Motivation unit 3

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Notes on Motivation

Notes on Motivation

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  • 1. UNIT 3 MOTIVATION INTRODUCTION Motivation is a process that starts with a physiological or psychological need that activates behaviour to aim at a goal. “Motivation is the act of stimulating someone or oneself to get desired course of action, to push right button to get desired reactions.” The following are the features of motivation: Motivation is an act of managers Motivation is a continuous process Motivation can be positive or negative Motivation is goal oriented Motivation is complex in nature Motivation is an art Motivation is system-oriented Motivation is different from job satisfaction Motivation is a process of arousing and sustaining goal-directed behaviour induced by the expectation of satisfying individual needs. According Steers and Porter “Motivation is the force that energizes behaviour, gives direction to behaviour and underlines the tendency to persist.” According to Webster’s, a motive is ‘something (a need or desire) that causes a person to act.’ Motivate in turn, means ‘to provide with a motive.’ And motivation is defined as the act or process of motivating.’ Thus motivation is the act of providing a motive that causes a person to take some action. Motivation is defined as individual’s intention or willingness to put maximum effort in his/her work to reach organizational goals and enhance one’s ability to satisfy some individual needs. The cyclic process of motivation starts from (1) Unsatisfied Need: At the first step of motivation a person feels the need of something or there is a feeling that he lacks something. (2) Tension: The person concerned gets tensed at the very idea of his need not being satisfied. (3) Drives: At this step the person concerned endeavors to fulfill his need. The fulfillment of need depends on the direction and intensity of the drive. (4) Search Behaviour: At this step, a person tries to discover different options to fulfill his need. He puts the best option into operation. (5) Need Satisfied: If the option really happens to be a correct one, satisfaction is obtained. (6) Reduction of Tension: The person concerned gets relieved when his need is satisfied. There are three major elements related to motivation: Effort, Goals and Needs. Effort: It refers to an individual’s intensity in reaching the stated goal. The intensity varies from Ms SONAM KAPIL Asst. Professor (MIT, MIET GROUP) Page 1
  • 2. UNIT 3 MOTIVATION individual to individual and also depends upon the extent to which individual assigns importance to various goals. If these efforts are channelled in proper direction consistent with organizational goals, the organization will maximize its profit and reach a state of excellence in their field. Need: It refers to some internal state that makes certain outcomes appear attractive. It is also a state of deficiency and the organism tries to restore this deficiency to make it as equilibrium. An unsatisfied need creates tension that stimulates drives within an individual. These drives direct the individual in different directions or searching in different places to find a particular goal, If the goal is attained the organism will satisfy the need and reduce the tension. Goals: Human behaviour is always goal directed. Once the desired goal is satisfied, individuals will always restate the goals or look for other goals to get satisfied. Goals will always be changing from one level to another. In order to motivate an individual, managers must ensure to set a goal in such a way which stimulates him or her to put more effort in their work. An effective way to set goals is to follow the SMART approach, which states that goals should meet five characteristics: 1. 2. 3. 4. 5. Specific Measurable Achievable Relevant Timely or Time Limited If the chosen goal has these characteristics, the employee will have a highest level of motivation. OBJECTIVES OF EMPLOYEE MOTIVATION  The purpose of motivation is to create condition in which people are willing to work with zeal, initiative. Interest, and enthusiasm, with a high personal and group moral satisfaction with a sense of responsibility.  To increase loyalty against company.  For improve discipline and with pride and confidence in cohesive manner so that the goal of an organization are achieved effectively.  Motivation techniques utilized to stimulate employee growth.  For the motivation you can buy man’s time. Physical presence at a given place.  Performance results from the interaction of physical, financial and human resource.  For achieving a desire rate of production. IMPORTANCE OF MOTIVATION Motivation is important in business because it impacts mental and physical human reactions. Highlymotivated individuals and staff have a willingness to get the job done efficiently and effectively, resulting Ms SONAM KAPIL Asst. Professor (MIT, MIET GROUP) Page 2
  • 3. UNIT 3 MOTIVATION in higher productivity, increased revenue, cost savings and satisfied employees and business owners. Employees and staff with low motivation tend to work slower, without regard for productivity or efficiency, and end up costing the business money. Low motivation can be caused by a lack of direction or purpose, and can sometimes be reversed by the introduction of goals. Importance of motivation lies in its following benefits: 1. To keep employees happy: Usual remuneration given in the form of salary or commission or any other kind is not sufficient, as it is common to all employees. Man is not machine. He must be satisfied, happy and cheerful. It is normally found that a man is able to do his best when there is encouragement, upliftment in the form of money, recognition, promotions transfers, etc. if the employees are satisfied, it gives more than what the company wants. 2. The nature of work: The nature of job performed by employees also warrants the need for stimulation. Employees face a chain of incidents every day, both happy and unhappy. These frequent ups and downs exhaust their stamina, and thus they are bored, demotivated and their level of performance drops down. Stimulation or motivation needs to be given to keep up their level of performance and ability. 3. Increase in work efficiency: When workers are motivated for satisfaction of their needs, they work to satisfy the organizational needs also. This increases the efficiency of organizational activities. 4. Communication: Motivation promotes communication between managers and workers. Both try to understand each other’s needs and satisfy them to the maximum possible extent. 5. Reduction in rate of labor absenteeism and turnover: Workers who are satisfied with their work and work environment contribute positively towards organizational goals and objectives. The rate of absenteeism and turn over thus gets reduced. MOTIVATIONAL FACTORS There are several factors that motivate a person to work. The motivational factors can be broadly divided into two groups: MONETARY FACTORS/ FINANCIAL MOTIVATION: Monetary or financial incentives provide a reward to the workers for their efforts in terms of monetary units. Money has been recognized as the chief source of satisfying the needs of the people. Money is regarded as a basic incentive for individual and a great motivation. Economic condition necessarily determines the importance of monetary incentives. I. The financial incentives generally used in organizations are listed below: Ms SONAM KAPIL Asst. Professor (MIT, MIET GROUP) Page 3
  • 4. UNIT 3 MOTIVATION  Salaries or wages: Salaries or wages is one of the most important motivational factors.      Reasonable salaries must be paid on time. While fixing salaries the organization must consider such as: Cost of living, Company ability to pay, Capability of company to pay etc. Bonus: It refers to extra payment to employee over and above salary given as an incentive. The employees must be given adequate rate of bonus. Incentives/ Commission: The organization may also provide additional incentives such as medical allowance, educational allowance, HRA, allowance, etc. Special individual incentives: The Company may provide special individual incentives. Such incentives are to be given to deserving employees for giving valuable suggestions. Profit Sharing: Employees receive a share of the profits in addition to their basic salary. Retirement Benefits: Several retirement benefits such as provident fund, pension provides financial security to employees after their retirement. 2. NON FINANCIAL INCENTIVES/ NON MONETARY FACTORS: Such incentives cannot be measured in terms of money. They are concerned with the satisfaction of social and psychological needs of the employees. The factors helpful in motivating the employees with non-financial rewards are as follows: (1) Status: Status means the position or rank of a person in the organization; it can be high or low. The rank of an employee is directly linked with his authority, responsibility and other facilities (e.g., a separate cabin, costly furniture, car, peon, PA., etc.). Everybody has a wish for a higher status. Therefore, the employees can be motivated by raising their rank or position. The attainment of a higher status fulfils the psychological, social and esteemrelated needs. (2) Organizational Climate: Organizational climate means the working system within the organization. This includes individual freedom, receipt of awards, the importance of employees, etc. Every person likes to work in a better organizational climate. The manager can motivate the employees by providing a better organizational environment. (3) Career Advancement Opportunity: Every employee of the organization wants to advance his life. Promotion is an important example of advancement. Training and development facilities have got to be provided for the promotion of the employees. Therefore, the managers can clear their way to promotion by providing these facilities. When the avenues for promotion are available, the employees certainly get motivated. (4) Job Enrichment: Job enrichment means increasing the importance of work. Such a job should have (i) authority, responsibility, and a wide scope for challenges, (ii) there should be a need of higher knowledge and experience, (iii) the opportunities for personal development should be available, and (iv) there should be absolute freedom to take decisions. The employees feel proud of getting such a job. Thus, job enrichment enhances people’s interest in their work and they start getting motivated automatically. Ms SONAM KAPIL Asst. Professor (MIT, MIET GROUP) Page 4
  • 5. UNIT 3 MOTIVATION (5) Employee Recognition Programmes: Every employee wishes to be considered as an important part of the organization. It means that he should have his own identity and he should appear to be distinctive. Some of the examples are given below which help in the employee’s recognition: I. Congratulating the employee for good work performance; II. Displaying employee’s achievements on the information board and publishing them in the news magazine of the organization; III. Awarding certificates of merit at the ceremonial functions of the organization for better work performance; IV. Presenting mementos; and V. Honoring for offering valuable suggestions. (6) Job Security: Job security is an important non-monetary motivator. Security of job means a feeling of permanence and stability. For example, if an employee has a sense of fear or insecurity in his mind, that he can be removed from his job any time, he will never work wholeheartedly and this worry continues troubling him. On the other hand, if he has a feeling that his job is secure and permanent and he cannot be removed from his job easily, he will work without any worry and with an easy mind. Consequently, his efficiency increases. This is the reason why people prefer a permanent job with less salary to a temporary job with more salary. (7) Employees Participation: Employees get encouraged to notice their participation in managerial works. Therefore, they offer their full cooperation in making successful the policies prepared with their help. (8)Working conditions: Provision for better working conditions such as air-conditioned rooms, proper plant layout, proper sanitation, equipment, machines etc, motivates the employees. (9)Cordial relations: Good and healthy relations must exist throughout the organization. This would definitely motivate the employees. (10)Good superiors: Subordinates want their superiors to be intelligent, experienced, matured, and having a good personality. In fact, the superior needs to have superior knowledge and skills than that of his subordinates. The very presence of superiors can motivate the subordinates. Other factors: There are several other factors of motivating the employees: a. Providing training to the employees. b. Proper job placements. c. Proper promotions and transfers. d. Proper performance feedback. e. Proper welfare facilities. f. Flexible working hours. 3.INTRINSIC MOTIVATION: Ms SONAM KAPIL Asst. Professor (MIT, MIET GROUP) Page 5
  • 6. UNIT 3 MOTIVATION Intrinsic motivation means that the individual's motivational stimuli are coming from within. The individual has the desire to perform a specific task, because its results are in accordance with his belief system or fulfills a desire and therefore importance is attached to it. Our deep-rooted desires have the highest motivational power. Below are some examples:  Acceptance: We all need to feel that we, as well as our decisions, are accepted by our coworkers.  Curiosity: We all have the desire to be in the know.  Honor: We all need to respect the rules and to be ethical.  Independence: We all need to feel we are unique.  Order: We all need to be organized.  Power: We all have the desire to be able to have influence.  Social contact: We all need to have some social interactions.  Social Status: We all have the desire to feel important. 4.EXTRINSIC MOTIVATION: Extrinsic motivation means that the individual's motivational stimuli are coming from outside. In other words, our desires to perform a task are controlled by an outside source. Note that even though the stimuli are coming from outside, the result of performing the task will still be rewarding for the individual performing the task. Extrinsic motivation is external in nature. The most wellknown and the most debated motivation is money. Below are some other examples:      Employee of the month award Benefit package Bonuses Organized activities Retirement plans 5.POSITIVE MOTIVATION It is giving reward when employee perform well. It refers to provision of incentives (monetary or non monetary ) of incentives. It can be in form of praise, promotion, payment and credit. It is also known as pull mechanism and leads to good team spirit cooperation and a feeling of happiness. 6.NEGATIVE MOTIVATION It refers to administering punishment if employees do not perform well. It can be in form of fear of suspension, demotion, wage withdrawal, termination. It is use to make a person act in a certain way because they are afraid of the consequences if they don’t perform. MOTIVATIONAL THEORIES Maslow’s-Hierarchy of Needs Theory: This theory was proposed by Abraham Maslow and is based on the assumption that people are motivated by a series of five universal needs. These needs are ranked, according to the order in which they influence human behaviour, in hierarchical fashion Ms SONAM KAPIL Asst. Professor (MIT, MIET GROUP) Page 6
  • 7. UNIT 3 MOTIVATION  Physiological needs : are deemed to be the lowest- level needs. These needs include the needs such as food & water .So long as physiological needs are unsatisfied; they exist as a driving or motivating force in a person's life. A hungry person has a felt need. This felt need sets up both psychological and physical tensions that manifest themselves in overt behaviours directed at reducing those tensions (getting something to eat). Once the hunger is sated, the tension is reduced, and the need for food ceases to motivate. At this point (assuming that other physiological requirements are also satisfied) the next higher order need becomes the motivating need.  Safety needs -- the needs for shelter and security -- become the motivators of human behaviour. Safety needs include a desire for security, stability, dependency, protection, freedom from fear and anxiety, and a need for structure, order, and law. In the workplace this needs translates into a need for at least a minimal degree of employment security; the knowledge that we cannot be fired on a whim and that appropriate levels of effort and productivity will ensure continued employment.  Social needs: include the need for belongingness and love. Generally, as gregarious creatures, human have a need to belong. In the workplace, this need may be satisfied by an ability to interact with one co-worker and perhaps to be able to work collaboratively with these colleagues. After social needs have been satisfied, ego and esteem needs become the motivating needs.  Self Esteem needs include the desire for self-respect, self-esteem, and the esteem of others. When focused externally, these needs also include the desire for reputation, prestige, status, fame, glory, dominance, recognition, attention, importance, and appreciation. Esteem or ego needs-next above the lower-level needs of physiological, safety and social-do not become motivators until the lower-level needs have been reasonably satisfied. Unlike. The lowerlevel needs, these are rarely completely satisfied. But once these needs become important to an individual, he will continually seek satisfaction of them. The typical industrial organizations, however, offers only limited opportunities for the satisfaction of these needs at the lower levels of employment.  Self-Actualisation Needs: The emergence of self-actualisation needs comes only after all other needs have been satisfied. Self-actualisation needs include the realisation of one's potentialities, self-fulfilment, continued self-development, and being creative in the broadest sense of that term. Even if all lower-level needs are satisfied, a person may experience discontent and restlessness if he is not doing what he is best suited for. What a person has a potential to be, he or she must seek. The form that these needs take varies from person to person just as a human personality varies. Self-actualisation needs can be satisfied through one or any combination of athletics, politics, and academics, the family, religion, hobbies or business. A creative state is involved in the sense that creativeness is realising one's own potential to the fullest degree, whatever it buys, but also for that it means in judging one's self and others. Money has little Ms SONAM KAPIL Asst. Professor (MIT, MIET GROUP) Page 7
  • 8. UNIT 3 MOTIVATION importance for McDermid at the level of self-actualisation needs. It can merely remove the obstacle to self-actualisation. Here money is used to satisfy other needs so that the individual is free to devote his time and efforts to realising the potential. Alderfer's Hierarchy of Motivational Needs: Alderfe reworked Maslow's Need Hierarchy to align it more closely with empirical research. Alderfer's theory is called the ERG theory Existence, Relatedness, and Growth Existence refers to our concern with basic material existence requirements; what Maslow called physiological and safety needs. Relatedness refers to the desire we have for maintaining interpersonal relationships; similar to Maslow's social/love need, and the external component of his esteem need Growth refers to an intrinsic desire for personal development; the intrinsic component of Maslow's esteem need, and self-actualization Alderfer's ERG theory differs from Maslow's Need Hierarchy insofar as ERG theory demonstrates that more than one need may be operative at the same time. ERG theory does not assume a rigid hierarchy where a lower need must be substantially satisfied before one can move on. Alderfer also deals with frustration-regression that is, if a higher-order need is frustrated, an individual then seeks to increase the satisfaction of a lower-order need. According to Maslow an individual would stay at a certain need level until that need was satisfied. ERG theory counters by noting that when a higher- order need level is frustrated the individual’s desire to increase a lower- level need takes place. Inability to satisfy a need for social interaction, for instance, might increase the desire for more money or better working conditions. So frustration can lead to a regression to a lower need. In summary, ERG theory argues, like Maslow, that satisfied lower- order needs lead to the desire to satisfy higher-order needs; but multiple needs can be operating as motivators at the same time, and frustration in attempting to satisfy a higher- level need an result in regression to a lower- level need HERZBERG THEORY Two-factor Theory: Herzberg's Two Factor Theory, also known as the Ms SONAM KAPIL Asst. Professor (MIT, MIET GROUP) Page 8
  • 9. UNIT 3 MOTIVATION Motivation-Hygiene Theory was derived from a study designed to test the concept that people have two sets of needs: 1. Their needs as animals to avoid pain 2. Their needs as humans to grow psychologically Research Results: it appeared from the research, that the things making people happy on the job and those making them unhappy had two separate themes. 1) SATISFACTION (MOTIVATION): Five factors stood out as strong determiners of Job satisfaction: achievement, recognition, work itself, responsibility, advancement The last three factors were found to be most important for bringing about lasting changes of attitude. It should be noted, that recognition refers to recognition for achievement as opposed to recognition in the human relations sense. 2) DISSATISFACTION (HYGIENE): The determinants of job dissatisfaction were found to be: company policy administrative policies, supervision, salary, interpersonal relations, working conditions From the results Herzberg concluded that the replies people gave when they felt good about their jobs were significantly different from the replies given when they felt bad. Certain characteristics tend to be consistently related to job satisfaction and others to job dissatisfaction. Intrinsic factors, such as work itself, responsibility and achievement seem to be related to job satisfaction. Respondents who felt good about their work tended to attribute these factors to themselves. On the other dissatisfied respondents tended to cite extrinsic factors such as supervision, pay, company policies and working condition. Herzberg proposed that his findings indicated the existence of a dual continuum: the opposite of “satisfaction” is “No satisfaction” and the opposite of “Dissatisfaction” is “No Dissatisfaction. According to Herzberg, the factors leading to Job satisfaction are separate and distinct form those that lead to job dissatisfaction. Therefore, managers who seek to eliminate factors that can create job dissatisfaction may bring about peace but not necessarily motivation. They will be placating their workforce rather than motivating them. As a result, conditions surrounding the job such as quality of supervision, pay , company policies, physical working conditions relations with others and job security were characterized by Herzberg as hygiene factors, when they’re adequate, people will not be dissatisfied ; neither will they be satisfied. If we want to motivate people on their jobs, Herzberg suggested emphasizing factors associated with the work itself or to outcomes directly derived from it, such as promotional opportunities, opportunities for personal growth, recognition, responsibility and achievement. These are the characteristics that people find intrinsically rewarding. Ms SONAM KAPIL Asst. Professor (MIT, MIET GROUP) Page 9
  • 10. UNIT 3 MOTIVATION Ms SONAM KAPIL Asst. Professor (MIT, MIET GROUP) Page 10
  • 11. UNIT 3 MOTIVATION Expectancy Theory In recent years, probably the most popular motivational theory has been the Expectancy Theory (also known as the Valence-Instrumentality- Expectancy Theory). Although there are a number of theories found with this general title, they all have their roots in Victor Vroom's 1964 work on motivation. ALTERNATIVES AND CHOICES: Vroom's theory assumes that behaviour results from conscious choices among alternatives whose purpose it is to maximize pleasure And minimize pain.The key elements to this theory are referred to as Expectancy (E), Instrumentality (I),and Valence (V) Critical to the understanding of the theory is the understanding that each of these factors represents a belief. Vroom's theory suggests that the individual will consider the outcomes associated with various levels of performance (from an entire spectrum of performance possibilities), and elect to pursue the level that generates the greatest reward for him or her. Expectancy: "What's the probability that, if I work very hard, I'll be able to do a good job?" Expectancy refers to the strength of a person's belief about whether or not a particular job performance is attainable. Assuming all other things are equal, an employee will be motivated to try a task, if he or she believes that it can be done. This expectancy of performance may be thought of in terms of probabilities ranging from zero (a case of "I can't do it!") to 1.0 ("I have no doubt whatsoever that I can do this job!") A number of factors can contribute to an employee's expectancy perceptions:  the level of confidence in the skills required for the task  the amount of support that may be expected from superiors and subordinates  the quality of the materials and equipment  the availability of pertinent information Previous success at the task has also been shown to strengthen expectancy beliefs Instrumentality: "What's the probability that, if I do a good job, that there will be some kind of outcome in it for me?" If an employee believes that a high level of performance will be instrumental for the acquisition of outcomes which may be gratifying, then the employee will place a high value on performing well. Vroom defines Instrumentality as a probability belief Instrumentality may range from a probability of 1.0 (meaning that the attainment of the second outcome -- the reward -- is certain if the first outcome -- excellent job performance -- is attained) through zero (meaning there is no likely relationship between the first outcome and the second). An example of zero instrumentality would be exam grades that were distributed randomly (as opposed to be awarded on the basis of excellent exam performance). Commission pay schemes are designed to make employees perceive that performance is positively instrumental for the acquisition of money. Ms SONAM KAPIL Asst. Professor (MIT, MIET GROUP) Page 11
  • 12. UNIT 3 MOTIVATION For management to ensure high levels of performance, it must tie desired outcomes (positive valence) to high performance, and ensure that the connection is communicated to employees. The VIE theory holds that people have preferences among various outcomes. These preferences tend to reflect a person's underlying need state. Valence: "Is the outcome I get of any value to me?" The term Valence refers to the emotional orientations people hold with respect to outcomes (rewards). An outcome is positively valent if an employee would prefer having it to not having it. An outcome that the employee would rather avoid (fatigue, stress, noise, layoffs) is negatively valent. Outcomes towards which the employee appears indifferent are said to have zero valence. Valences refer to the level of satisfaction people expect to get from the outcome as (opposed to the actual satisfaction they get once they have attained the reward). Vroom suggests that an employee's beliefs about Expectancy, Instrumentality, and Valence interact psychologically to create a motivational force such that the employee acts in ways that bring pleasure and avoid pain. People elect to pursue levels of job performance that they believe will maximize their overall best interests (their subjective expected utility).There will be no motivational forces acting on an employee if any of these three Conditions hold: (1) The person does not believe that he/she can successfully perform the required task (2) The person believes that successful task performance will not be associated with positively valent outcomes (3) The person believes that outcomes associated with successful task completion will be negatively valent (have no value for that person) MF= Expectancy x Instrumentality x Valance McClelland’s Theory of Needs According to David McClelland, regardless of culture or gender, people are driven by three motives: Achievement, affiliation, and power. Ms SONAM KAPIL Asst. Professor (MIT, MIET GROUP) Page 12
  • 13. UNIT 3 MOTIVATION Since McClelland's first experiments, over 1,000 studies relevant to achievement motivation have been conducted. These studies strongly support the theory. Achievement: The need for achievement is characterized by the wish to take responsibility for finding solutions to problems, master complex tasks, set goals, get feedback on level of success. The need for affiliation is characterized by a desire to belong, an Affiliation: enjoyment of teamwork, a concern about interpersonal relationships, and a need to reduce uncertainty. Power: The need for power is characterized by a drive to control and influence others, a need to win arguments, a need to persuade and prevail According to McClelland, the presence of these motives or drives in an individual indicates a predisposition to behave in certain ways. Therefore, from a manager's perspective, recognizing which need is dominant in any particular individual affects the way in which that person can be motivated. Summary: People with achievement motives are motivated by standards of excellence, delineated roles and responsibilities and concrete, timely feedback. Those with affiliation motives are motivated when they can accomplish things with people they know and trust. And the power motive is activated when people are allowed to have an impact, impress those in power, or beat competitors. Theory of “X” and Theory of “Y”: Douglas McGregor observed two diametrically opposing viewpoints of managers about their employees, one is negative called “Theory of X” and one is positive called “Theory of Y” a) Theory of X: Following are the assumptions of managers who believe in the “Theory of X” in regard to their employees. • Employees dislike work; if possible avoid the same • Employees must be coerce, controlled or threatened to do the work • Employees avoid responsibilities and seek formal direction • Most employees consider security of job, most important of all other factors in the job and have very little ambition b) Theory of Y: Following are the assumptions of managers who believe in the “Theory of Y” in regard to their employees. • Employees love work as play or rest • Employees are self-directed and self-controlled and committed to the organizational objectives • Employees accept and seek responsibilities • Innovative spirit is not confined to managers alone, some employees also possess it. Theory of X assumes Maslow’s lower level needs dominate in employees. Whereas Theory of Y, assumes Maslow’s higher level needs dominate in employees. Ms SONAM KAPIL Asst. Professor (MIT, MIET GROUP) Page 13
  • 14. UNIT 3 MOTIVATION Porter and Lawler's Model Porter and Lawler developed their model to explore the question of managerial motivation. The Porter and Lawler model of motivation is based on the assumption that rewards cause satisfaction and that sometimes performance produces reward. Therefore, they hypothesize that the relationship between satisfaction and performance is linked by another variable rewards. They see goodperformance leading to reward which lead to satisfaction. Figure 5: Porter and Lawler's Theoretical Model The model shows performance leading to rewards. Porter and Lawler distinguish between two types of reward-intrinsic and extrinsic. Intrinsic rewards are given to an individual by himself for good performance. They include feelings of accomplishment and satisfaction of higher-level needs as defined by Maslow. In the model, intrinsic rewards are connected to performance by a semiwavy line because Porter and Lawler believe that intrinsic reward are directly related to good performance only if the job structure is varied and challenging so an individual can reward himself if he feels he has performed well. Extrinsic rewards are given by the organization and satisfy mainly lower-level needs. They include such things as pay, promotion, status, and job security. Porter and Lawler feel that extrinsic rewards are weekly connection to performance; they indicate this on their model by a wavy line. This means that at times extrinsic rewards are not related to performance. It should be pointed out that to be considered a reward by an individual, he must positively value it. Otherwise, it would not be considered a reward. In the model, rewards are linked indirectly to satisfaction through perceived equitable rewards. This variable refers to the amount of rewards an individual feels he should receive as a result of his performance. This variable can also be expanded to include the amount of rewards an individual Ms SONAM KAPIL Asst. Professor (MIT, MIET GROUP) Page 14
  • 15. UNIT 3 MOTIVATION feels should be attached to a particular position within the organization. Therefore, Porter and Lawler view satisfaction as deficiency measure. Satisfaction is determined by the difference between actual rewards and perceived equitable rewards.  If actual rewards exceed perceived rewards, then satisfaction results.  If the opposite occurs, dissatisfaction results. The degree to which a person is either satisfied or dissatisfied depends on the size of the difference between the actual and perceived equitable rewards. By including internal motivation in the form of intrinsic rewards and external motivation as extrinsic rewards, the Porter and Lawler model implies that both the individual worker and the organization are responsible for motivation. But despite the organization's influence, the vast majority of the responsibility for his motivation rests with the individual worker. Hence, his motivation or satisfaction depends on his performance as it is affected by  the value he places on rewards;  the probability that effort will result in rewards;  his effort;  his abilities and traits; and his role perceptions. Porter and Lawler do not claim that their model is the final word in motivation theory or that it totally explains the relationships between job attitudes and performance. Their objective was to identify some of the important variables and the relationships though to exist between them. Equity Theory: Adams proposes equity theory of motivation based on the proposition that every one tend to compare the ratio of his/her input and out come with input-outcome ratio of other person. The comparison process is highly inevitable. The reference person or comparison person will always be in the same group, class, age, category etc. For example, a manager will always compare himself/herself with other fellow manages. A worker will always compare with other worker in the same organization. In the comparison process, if a person feels that his ratio of input-outcome is more or less equal to that of his comparison person’s ratio of input-outcome, a state of equity exists. Then he perceives the situation as just and fair. If a person perceives the ratio as unequal, he will experience inequity that will lead to tension and stress. Inequity exists under two conditions: 1. the person feels a negative inequity, when he has been rewarded less for his efforts than another and 2. The person experiences a positive inequity, when he finds himself rewarded more than another for a similar degree of effort. Ms SONAM KAPIL Asst. Professor (MIT, MIET GROUP) Page 15
  • 16. UNIT 3 MOTIVATION Adams' Equity Theory is therefore a far more complex and sophisticated motivational model than merely assessing effort (inputs) and reward (outputs). Adams' use of the terms inputs and outputs, which more aptly cover all aspects of what a person gives, sacrifices, tolerates, invests, etc., into their work situation, and all aspects of what a person receives and benefits from in their work and wider career, as they see it. Inputs Inputs are typically: effort, loyalty, hard work, commitment, skill, ability, adaptability, flexibility, tolerance, determination, heart and soul, enthusiasm, trust in our boss and superiors, support of colleagues and subordinates, personal sacrifice, etc. Equity dependent on comparing own ratio of input/output with ratios of 'referent' others People need to feel that there is a fair balance between inputs and outputs. Crucially fairness is measured by comparing one's own balance or ratio between inputs and outputs, with the ratio enjoyed or endured by relevant others. Outputs Outputs are typically all financial rewards - pay, salary, expenses, perks, benefits, pension arrangements, bonus and commission - plus intangibles - recognition, reputation, praise and thanks, interest, responsibility, stimulus, travel, training, development, sense of achievement and advancement, promotion, etc. If we feel are that inputs are fairly rewarded by outputs (the fairness benchmark being subjectively perceived from market norms and other comparable references) then generally we are happier in our work and more motivated to continue inputting at the same level. If we feel that our ratio of inputs to outputs is less beneficial than the ratio enjoyed by referent others, then we become demotivated in relation to our job and employer. Ms SONAM KAPIL Asst. Professor (MIT, MIET GROUP) Page 16

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