Theories of Employee Motivation

Business Psychology
Theories of Employee Motivation
Syed Md. Sajjad Kabir
Lecturer, Dept. of Psychology, CU
SMS Kabir, smskabir@psy.jnu.ac.bd;SMS Kabir, smskabir@psy.jnu.ac.bd;
smskabir218@gmail.comsmskabir218@gmail.com
11

Motivation
• Internal state that induces a person to engage in particular
behaviors.
• It has to do with the direction, intensity, and persistence of behavior
over time.
Direction: choice of specific behaviors from a number of possible
behaviors
Intensity: amount of effort a person expends at doing a task
Persistence: continuing engagement in a behavior over time
Motivation is the desire to acquire or achieve some goal--originating
in wants, needs, or desires.
The interaction of motivation and ability determines a person’s
potential performance in any activity.
P = A X M
Where, P = Potential Performance
A = Ability = Knowledge X Skill
M = Motivation = Attitude X Situation
Organizational Results = Potential Performance X Resources X Opportunity.
22

Motivation TheoriesMotivation Theories
 People’s behavior is directed toward fulfillingPeople’s behavior is directed toward fulfilling
needs (need hierarchy, ERG, and two factorneeds (need hierarchy, ERG, and two factor
theories).theories).
 Behavior as controlled by rewards (reinforcementBehavior as controlled by rewards (reinforcement
and expectancy theories).and expectancy theories).
 Behavior as controlled by beliefs about the selfBehavior as controlled by beliefs about the self
(self-efficacy theory), by values (equity theory), or(self-efficacy theory), by values (equity theory), or
by the individual’s goals (goal-setting theory).by the individual’s goals (goal-setting theory).
The theories can be described along a continuumThe theories can be described along a continuum
from distal to proximal.from distal to proximal.
 Distal motivation theories deal with processes thatDistal motivation theories deal with processes that
are far removed from the behavior.are far removed from the behavior.
 Proximal motivation theories deal with processesProximal motivation theories deal with processes
that are close to the behavior.that are close to the behavior.
33

Need theoriesNeed theories
 Motivation as arising from people’s needs or desires forMotivation as arising from people’s needs or desires for
things.things.
 Needs can differ within the same person over time andNeeds can differ within the same person over time and
across people.across people.
 Need theories have contributed to Business psychology byNeed theories have contributed to Business psychology by
showing how people can vary in the rewards they wantshowing how people can vary in the rewards they want
from work.from work.
 Basic physical needs called Primary Needs, andBasic physical needs called Primary Needs, and
 Social and psychological needs called Secondary Needs.Social and psychological needs called Secondary Needs.
 The primary or physical needs include food, water, sex,The primary or physical needs include food, water, sex,
sleep, air, and reasonably comfortable temperature.sleep, air, and reasonably comfortable temperature.
 Secondary needs are more vague because they representSecondary needs are more vague because they represent
needs of the mind and spirit rather than of that physicalneeds of the mind and spirit rather than of that physical
body.body.
44

McClelland’s Need TheoriesMcClelland’s Need Theories
Concerns three motives –Concerns three motives –
1.1. Need for AchievementNeed for Achievement:: wants to take personalwants to take personal
responsibility; goal-oriented; seeks a challenge andresponsibility; goal-oriented; seeks a challenge and
desires concrete feed back.desires concrete feed back.
2.2. Need for AffiliationNeed for Affiliation:: seeks to establish and maintainseeks to establish and maintain
friendships and close emotional relationships withfriendships and close emotional relationships with
others; wants to be liked by others; enjoys parties, socialothers; wants to be liked by others; enjoys parties, social
activities.activities.
3.3. Need for PowerNeed for Power:: concern with acquiring, exercising, orconcern with acquiring, exercising, or
retaining power or influence over other; likes to beretaining power or influence over other; likes to be
dominant; enjoys confrontations with others.dominant; enjoys confrontations with others.
McClelland says that there are two basic aspects of power –McClelland says that there are two basic aspects of power –
 Positive use of power is absolutely essential if a managerPositive use of power is absolutely essential if a manager
is to effective.is to effective.
 Negative face of power is when an individual seeksNegative face of power is when an individual seeks
power for his or her own personal benefit.power for his or her own personal benefit.SMS Kabir, smskabir@psy.jnu.ac.bd;SMS Kabir, smskabir@psy.jnu.ac.bd;
55

Maslow’s Need Hierarchy TheoryMaslow’s Need Hierarchy Theory
Fulfillment of human needs is necessary for both physical andFulfillment of human needs is necessary for both physical and
psychological health (Maslow, 1943).psychological health (Maslow, 1943).
Five categories of needs are arranged in a hierarchy:Five categories of needs are arranged in a hierarchy:
 a. Lowest level needs:a. Lowest level needs: physiologicalphysiological-- e.g., air, water, and-- e.g., air, water, and
food.food.
 b. Second level needs:b. Second level needs: safetysafety needs-- things protecting usneeds-- things protecting us
from danger, such as security and shelter.from danger, such as security and shelter.
 c. Third level needs:c. Third level needs: lovelove needs-- e.g., love, affection, andneeds-- e.g., love, affection, and
affiliation with others.affiliation with others.
 d. Fourth level needs:d. Fourth level needs: esteemesteem needs-- e.g., self-respect andneeds-- e.g., self-respect and
respect from others.respect from others.
 e. Top level needs:e. Top level needs: self-actualizationself-actualization needs-- fulfillment ofneeds-- fulfillment of
personal life goals and of one’s potential.personal life goals and of one’s potential.
66

Two-Factor TheoryTwo-Factor Theory
Motivation comes from the nature of the job itself,Motivation comes from the nature of the job itself,
not external rewards or job conditionsnot external rewards or job conditions
(Herzberg;1968).(Herzberg;1968).
Divides needs into two categories:Divides needs into two categories:
 a.a. Hygiene factorsHygiene factors: relevant to animal needs and: relevant to animal needs and
include pay, supervision, coworkers, andinclude pay, supervision, coworkers, and
organizational policies.organizational policies.
 b.b. Motivator factorsMotivator factors: relevant to psychological: relevant to psychological
growth and include achievement, recognition,growth and include achievement, recognition,
responsibility, and the nature of work itself.responsibility, and the nature of work itself.
77

Alderfer’s E-R-G TheoryAlderfer’s E-R-G Theory
Instead of the five categories of needs suggested by Maslow,Instead of the five categories of needs suggested by Maslow,
Alderfer’s ERG model holds that the individual hasAlderfer’s ERG model holds that the individual has
three sets of basic needs – existence (E), relatedness (R),three sets of basic needs – existence (E), relatedness (R),
and growth (G); hence the label ERG Theory.and growth (G); hence the label ERG Theory.
 Existence Needs or Material NeedsExistence Needs or Material Needs – are satisfied by– are satisfied by
food, air, water, pay, fringe benefits, and workingfood, air, water, pay, fringe benefits, and working
conditions.conditions.
 Relatedness NeedsRelatedness Needs – are met by establishing and– are met by establishing and
maintaining interpersonal relationships with co-workers,maintaining interpersonal relationships with co-workers,
superiors, subordinates, friends, and family.superiors, subordinates, friends, and family.
 Growth NeedsGrowth Needs – are expressed by an individual’s– are expressed by an individual’s
attempt to find opportunities for unique personalattempt to find opportunities for unique personal
development by making creative or productivedevelopment by making creative or productive
contributions at work.contributions at work.
88

Reinforcement Theory
Rewards or reinforcements affect behavior; it
explains behavior as a function of reinforcement
history--prior reward experiences.
Behavior is a response to the environment.
The probability of a behavior increases if it is
followed by a reward or reinforcement, and decreases
if it is followed by a punishment (law of effect;
Thorndike, 1913).
In a job context, performance-relevant behaviors
will increase in frequency if rewarded.
99

Expectancy TheoryExpectancy Theory
Rewards lead to behavior by focusing on internal cognitiveRewards lead to behavior by focusing on internal cognitive
states that lead to motivation-- explains when and whystates that lead to motivation-- explains when and why
reinforcement will lead to behavior.reinforcement will lead to behavior.
 People will be motivated when they believe their behaviorPeople will be motivated when they believe their behavior
will lead to rewards or outcomes they want.will lead to rewards or outcomes they want.
Motivation or force is a mathematical function of three typesMotivation or force is a mathematical function of three types
of cognitions (Vroom;1964).of cognitions (Vroom;1964).
Force = Expectancy x Σ (Valences x Instrumentalities).Force = Expectancy x Σ (Valences x Instrumentalities).
 ForceForce: the amount of motivation a person has to engage in: the amount of motivation a person has to engage in
a behavior.a behavior.
 ExpectancyExpectancy: the subjective probability (felt confidence) a: the subjective probability (felt confidence) a
person has that s/he can perform the behavior successfully.person has that s/he can perform the behavior successfully.
 ValenceValence: the value of an outcome to a person.: the value of an outcome to a person.
 InstrumentalityInstrumentality: the subjective probability (felt: the subjective probability (felt
confidence) that a given behavior will result in a particularconfidence) that a given behavior will result in a particular
outcome.outcome.
1010

Self-Efficacy TheorySelf-Efficacy Theory
 The belief that one is capable of accomplishing a task.The belief that one is capable of accomplishing a task.
 Motivation and performance are partly determined byMotivation and performance are partly determined by
how effective people believe they can be (Bandura,how effective people believe they can be (Bandura,
1982).1982).
Justice Theories
Focus on norms for fair treatment of employees by
their organizations.
 Equity Theory
 Fairness Theory
1111

Equity theory
Employees who find themselves in inequitable situations experience dissatisfaction
and emotional tension that they’re motivated to reduce.
People are motivated to have equity or fairness in their dealings with other people
and with organizations (Adams, 1965).
 Outcomes are the rewards, everything of personal value that an employee gets from
working for an organization-- e.g., pay, benefits, status, enjoyment, etc.
 Inputs are the contributions an employee makes to the organization—e.g., work,
experience, and talents.
Employees might compare themselves to others in the same job, inside or outside the
organization, or sometimes to others in different jobs.
When the employee’s ratio of outcomes/inputs is the same as the comparison person’s
ratio, the situation will seem fair. Otherwise, it is inequitable, and the employee will
be dissatisfied.
 Underpayment inequity exists when other people get more outcomes for their
inputs.
 Overpayment inequity exists when other people get fewer outcomes for their
inputs.
Several ways to reduce the inequity
Change inputs: Increase or decrease productivity to match the outcomes received.
Change outcomes: Seek additional rewards from work.
Withdraw from the situation: Quit or be late or absent more often.
1212

Fairness TheoryFairness Theory
Distinguishes between the distribution of rewards and theDistinguishes between the distribution of rewards and the
procedures by which rewards are allocatedprocedures by which rewards are allocated
(Cropanzano, Byrne, Bobocel, & Rupp, 2001).(Cropanzano, Byrne, Bobocel, & Rupp, 2001).
 Procedural justiceProcedural justice: concern with the fairness of the: concern with the fairness of the
reward distribution process.reward distribution process.
 Distributive justiceDistributive justice: concern the fairness with which: concern the fairness with which
rewards are found among people (similar to equity).rewards are found among people (similar to equity).
 Both distributive and procedural justice is related to jobBoth distributive and procedural justice is related to job
performance and job satisfaction.performance and job satisfaction.
 Procedural justice is more important for women, andProcedural justice is more important for women, and
distributive justice is more important for men.distributive justice is more important for men.
1313

Goal-Setting TheoryGoal-Setting Theory
Behavior is motivated by internal intentions, objectives, or goalsBehavior is motivated by internal intentions, objectives, or goals
(Locke and Latham, 1990).(Locke and Latham, 1990).
 A goal is what the person consciously wants to attain or achieve.A goal is what the person consciously wants to attain or achieve.
 a. Can be specific or general.a. Can be specific or general.
 b. General goals are often associated with a group of moreb. General goals are often associated with a group of more
specific goals.specific goals.
 Goals direct attention and action to behaviors that the personGoals direct attention and action to behaviors that the person
believes will achieve the goal.believes will achieve the goal.
 a. Goals increase effort.a. Goals increase effort.
 b. Goals increase persistence.b. Goals increase persistence.
 c. Goals can motivate the search for effective strategies to attainc. Goals can motivate the search for effective strategies to attain
them.them.
 For goal-setting to improve job performance in an organization.For goal-setting to improve job performance in an organization.
 a. Employees must accept the goal--goal commitment.a. Employees must accept the goal--goal commitment.
 b. The goal should be difficult.b. The goal should be difficult.
 c. The goal should be specific.c. The goal should be specific.
 d. Employees must get feedback on progress toward the goal.d. Employees must get feedback on progress toward the goal.SMS Kabir, smskabir@psy.jnu.ac.bd;SMS Kabir, smskabir@psy.jnu.ac.bd;
1414

Control TheoryControl Theory
 It focuses on how feedback affects effort towardIt focuses on how feedback affects effort toward
goals (Klein, 1989).goals (Klein, 1989).
 Involves the following steps:Involves the following steps:
1. Set goal1. Set goal
2. Receive feedback2. Receive feedback
3. Compare feedback on performance to the goal3. Compare feedback on performance to the goal
4. In response to the discrepancies between4. In response to the discrepancies between
feedback and the goal, individuals with either:feedback and the goal, individuals with either:
a. modify behavior (e.g., work harder)a. modify behavior (e.g., work harder)
b. modify the goalb. modify the goal
1515

Action Theory
A comprehensive German theory of work behavior that describes a
process linking goals to behaviors (Frese & Zapf, 1994).
Focus mainly on goal-oriented or voluntary behaviors called actions.
The action process linking a hierarchy of cognitions to both actions
and feedback from the environment.
Process involves the five steps:
a. A person desires to accomplish or have something.
b. Goals and objectives are set, whereby goals are tied to tasks (external
or internal).
c. A plan to achieve the goal is generated.
d. Actions are engaged to carry out the plan.
e. Feedback is received from the environment or other people.
Action theory contains personality variables.
1. An action-oriented person tends to follow the action process, whereas
state-oriented people are the opposite.
2. Action-oriented people tend to perform better on the job, whereas
state-oriented people have a tendency to procrastinate.
1616

Theories of Employee Motivation

Recommended

Recommended

More Related Content

Similar to Theories of Employee Motivation

Similar to Theories of Employee Motivation (20)

More from Curtin University, Perth, Australia

More from Curtin University, Perth, Australia (20)

Recently uploaded

Recently uploaded (20)

Theories of Employee Motivation

Editor's Notes