4. Motivation
Early theories of motivation
1. Maslow’s Hierarchy of Needs Theory
2. Motivation-Hygiene Theory
3. Douglas McGregor and Theory X & Theory-Y
4. McClelland's Theory of Needs
5. ERG Theory
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5. Motivation
Contemporary theories of motivation
1. Goal-Setting Theory
2. Reinforcement Theory
3. Equity Theory
4. Expectancy Theory
5. Job Characteristic Model
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6. Goal-Setting Theory
In 1960’s, Edwin Locke put forward the Goal-
setting theory of motivation. This theory states that
goal setting is essentially linked to task
performance.
It states that specific and challenging goals along
with appropriate feedback contribute to higher and
better task performance.
In simple words, goals indicate and give direction
to an employee about what needs to be done and
how much efforts are required to be put in. 6
9. Challenge
People are often motivated by achievement
+ judge a goal based on the significance of the
anticipated accomplishment
! Too easy vs. Too difficult goal!
Challenging but realistic!
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10. Commitment
Goals are effective when employees
understand and agree upon them.
The goal is credible as long as the employees
believe that the goal is consistent with the
goal of the company.
Goal commitment <-> Difficulty
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12. Task Complexity
Highly complex goals or assignments don’t
have to become overwhelming
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Person should have sufficient time
to meet the goal or improve
performance
Person should have enough
time to practice or learn what
is expected and required for
success.
13. Advantages and Disadvantages
of GST
Advantages Disadvantages
Raise incentives for employees to
complete work quickly and effectively
Detrimental effect if organizational and
managerial goals are incompatible
Better performance due to increase of
motivation and efforts
Riskier behavior when goals are very
complex and difficult
Better feedback quality Lack of employee’s skills and
competencies can fail goal-setting and
lead to undermining of performance
No evidence that goal-setting improves
job satisfaction
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14. Reinforcement Theory
The Theory was proposed by B F Skinner.
The Theory states that individual’s behavior
is a function of its consequences.
Simply term
Individual’s behavior with positive consequences
tends to be repeated
Individual’s behavior with negative
consequences tends not to be repeated
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15. Usage in organization
A manager can use these methods to control
the behavior of the employees
a) Positive Reinforcement
b) Negative Reinforcement
c) Punishment
d) Extinction
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16. Positive reinforcement
A manager must give positive response when an individual
shows positive and required behavior. For example -
Immediately praising an employee for coming early for job.
This will increase probability of outstanding behavior
occurring again.
Reward is a positive reinforce, but not necessarily. If and
only if the employees’ behavior improves, reward can said
to be a positive reinforcer.
It must be noted that more spontaneous is the giving of
reward, the greater reinforcement value it has
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17. Negative reinforcement
A child doesn’t like wearing a certain shirt their mother
purchased for them. The child noticed in the past that their
mother doesn’t make them wear damaged clothing, so the
child cuts the shirt with scissors. When the mother discovers
this, she takes the shirt away.
Before behavior: Horrible shirt
Behavior: Child damages clothing
After behavior: Mother takes shirt away
Future behavior: Child will damage clothing they
don’t want to wear
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18. Punishment
Punishment means applying undesirable
consequence for showing undesirable
behavior.
For instance - Suspending an employee for
breaking the organizational rules.
Removing positive consequences with a view
to preventing employee(s) from repeating
undesirable
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19. Extinction
It implies absence of reinforcements.
In other words, extinction implies lowering the
probability of undesired behavior by removing
reward for that kind of behavior.
For instance - if an employee no longer receives
praise and admiration for his good work, he may
feel that his behavior is generating no fruitful
consequence.
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20. Equity Theory
Focuses on people’s perceptions of the fairness (or
lack of fairness) of their work outcomes in
proportion to their work inputs.
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21. Equity Theory
A relative outcome to input ratio comparison
to oneself or to another person (referent)
perceived as similar to oneself.
Equity exists when a person perceives that
their outcome/input ratio to be equal to the
referent’s ratio.
If the referent receives more outcomes, they
should also give more inputs to achieve equity.
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22. Equity theory conditions
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Condition Person Referent Example
Equity
Outcomes = Outcomes
Inputs Inputs
Person contributes
more inputs and also
gets more outputs
like referent
Underpayment
Equity
Outcomes < Outcomes
Inputs Inputs
Person contributes
same inputs but gets the
Less outputs
as referent
Overpayment
Equity
Outcomes > Outcomes
Inputs Inputs
Person contributes
same inputs but gets more
outputs
than referent
23. Equity Theory
Inequity exists when worker’s outcome/input ratio
is not equal to referent.
Underpayment inequity: ratio is less than the referent.
Workers feel they are not getting the outcomes they
should for their inputs.
Overpayment inequity: ratio is higher than the referent.
Workers feel they are getting more outcomes than
they should for their inputs.
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24. Equity Theory
Restoring Equity: Inequity creates tension in
workers causing them to attempt to restore equity.
In underpayment, workers may reduce input levels to
correct (rebalance) the ratio or seek a raise.
In overpayment, workers may change the referent
person and readjust their ratio perception.
If inequity persists, workers will often choose to leave
the organization.
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25. With whom employees
compares
Co-worker
Neighbors
Friends
Present jobs with past jobs
These comparisons creates four types of
referent comparisons
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26. Referent comparison
Self-inside: the individual’s experience within their
current organization.
Self-outside: the individual’s experience with other
organizations.
Others-inside: others within the individual’s current
organization.
Others-outside: others outside of the individual
organization.
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27. When employees experience
inequality---then
Change the input
Change the output
Quit the jobs
Change the self-perception (do more hard work)
Change the perception if others (all right)
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