Definition of Motivation; Primary Ingredients of Motivation; Common Aspects of Motivation; Maslow’s Need Hierarchy; Herzberg’s Two Factor Theory; Alderfer’s ERG Model; Equity Theory; Theory X and Theory Y; Positive and Negative motivation
1. Business Psychology
MotivationMotivation
Topics Covered
•Definition of MotivationDefinition of Motivation
•Primary Ingredients of MotivationPrimary Ingredients of Motivation
•Common Aspects of MotivationCommon Aspects of Motivation
•Maslow’s Need HierarchyMaslow’s Need Hierarchy
•Herzberg’s Two Factor TheoryHerzberg’s Two Factor Theory
•Alderfer’s ERG ModelAlderfer’s ERG Model
•Equity TheoryEquity Theory
•Theory X and Theory YTheory X and Theory Y
•Positive and Negative motivationPositive and Negative motivation
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2. □ 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.
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3. □ Primary Ingredients of Motivation
AbilityAbility is the individual’s capacity to do something. If a
person has the ability to sell, s/he may be a terrific salesperson.
EffortEffort is the time, drive, and energy the individual expends in
the pursuit of an objective.
DesireDesire is the wish, want, or urge for a particular objective.
Need Goal-Directed
Behavior
Satisfaction of
the Need
□ Common Aspects of Motivation
The three common aspects of motivation deal with
(1)what energizes human behavior,
(2) how this behavior is directed or channeled, and
(3) how the behavior can be maintained using a ‘needs’
approach.
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4. □ 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).
Lowest level needs:Lowest level needs: physiological-physiological-
e.g., air, water, and food.e.g., air, water, and food.
Second level needs:Second level needs: safety-safety-
such as security and shelter.such as security and shelter.
Third level needs:Third level needs: lovelove
e.g., love, affection, and affiliation withe.g., love, affection, and affiliation with
others.others.
Fourth level needs:Fourth level needs: esteemesteem
e.g., self-respect and respect frome.g., self-respect and respect from
others.others.
Top level needs:Top level needs: self-actualizationself-actualization
fulfillment of personal life goalsfulfillment of personal life goals
and of one’s potential.and of one’s potential.
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5. □ Two-Factor TheoryTwo-Factor Theory
Motivation comes from the nature of the job itself, not externalMotivation comes from the nature of the job itself, not external
rewards or job conditions (Herzberg;1968).rewards or job conditions (Herzberg;1968).
Maintenance/ Hygiene factors:Maintenance/ Hygiene factors: factors that prevent dissatisfactionfactors that prevent dissatisfaction
but do not generate satisfaction or motivate workers to greaterbut do not generate satisfaction or motivate workers to greater
effort.effort.
Salary:Salary: adequate wage, salary, fringe benefitsadequate wage, salary, fringe benefits
Job Security:Job Security: company grievance procedure and seniority privilegescompany grievance procedure and seniority privileges
Working condition:Working condition: adequate heat, light, ventilation, and hours ofadequate heat, light, ventilation, and hours of
workwork
Status:Status: privileges, job titles, ranks and positionsprivileges, job titles, ranks and positions
Company Policies:Company Policies: policy of the organization and fairness of admin.policy of the organization and fairness of admin.
Quality of Technical Supervision:Quality of Technical Supervision: whether or not an employee getswhether or not an employee gets
answers of the job related questions.answers of the job related questions.
Quality of interpersonal relationships:Quality of interpersonal relationships: among peers, supervisors,among peers, supervisors,
subordinates, social opportunity and development of comfortablesubordinates, social opportunity and development of comfortable
operating relationship.operating relationship.
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6. Motivation factors:Motivation factors: Job factors that provides satisfaction andJob factors that provides satisfaction and
therefore motivation, but whose absence causes notherefore motivation, but whose absence causes no
satisfaction-satisfaction-
Achievement:Achievement: opportunity for accomplishment, contributingopportunity for accomplishment, contributing
something of valuesomething of value
Recognition: acknowledgement that contributions is worthRecognition: acknowledgement that contributions is worth
the effort and effort is noted and appreciatedthe effort and effort is noted and appreciated
Responsibility: acquisition of new duties or responsibilitiesResponsibility: acquisition of new duties or responsibilities
through expansion of job or by delegationthrough expansion of job or by delegation
Advancement: improvement of an employee’s organizationalAdvancement: improvement of an employee’s organizational
position as a result of job performanceposition as a result of job performance
The work itself:The work itself: opportunity for self-expression, personalopportunity for self-expression, personal
satisfaction, and challenge.satisfaction, and challenge.
Two-Factor TheoryTwo-Factor Theory
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7. □ Alderfer’s E-R-G TheoryAlderfer’s E-R-G Theory
Instead of the five categories of needs suggested byInstead of the five categories of needs suggested by
Maslow, Alderfer’s ERG model holds that the individualMaslow, Alderfer’s ERG model holds that the individual
has three sets of basic needs – existence (E), relatednesshas three sets of basic needs – existence (E), relatedness
(R), and growth (G); hence the label ERG Theory.(R), 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.
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8. □ Equity theoryEquity theory
An individual's subjective judgments about the fairness of the reward s/he got,
relative to the inputs (e.g., effort, experience, education) in comparison with the
rewards of others.
J. Stacy Adams formulated the equity theory:
Outcomes by a person/Inputs by a person = Outcomes
by another person/Inputs by another person
If people feel that they are inequitably rewarded, they may be dissatisfied. The quantity or quality
of their output will reduce, or they may leave the organization.
If people perceive the rewards as equitable, they probably will continue at the same level of output.
If people think the rewards are greater than what is considered equitable, they may work harder.
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9. Some of the Typical Inputs and Outcomes Used
by Individuals in Measuring Perceived Equity
Inputs Outcomes
Education Pay
Experience Fringe benefits
Training Job status
Skill Seniority benefits
Job effort Working conditions
Seniority Job perquisites
Equity theoryEquity theory
Person alters the input by putting in more or less time.
Person attempts to alter the output by turning out more or less work.
Person changes his or her perception of how much is being given or
received.
Person simply stops comparing himself or herself with certain other
people.
Person acts against the individual or group with whom the comparison
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10. □ THEORY-X AND THEORY-YTHEORY-X AND THEORY-Y
Theory X: manager’s negative perception of subordinates’manager’s negative perception of subordinates’
potentials. Subordinates dislike work; they are poorly motivated;potentials. Subordinates dislike work; they are poorly motivated;
and require close supervision.and require close supervision.
Theory Y: manager’s positive perception of subordinates’manager’s positive perception of subordinates’
potentials. Subordinates are self-directing; seeks responsibility;potentials. Subordinates are self-directing; seeks responsibility;
work is as natural as play or rest.work is as natural as play or rest.
Assumptions of Theory X Assumptions of Theory Y
●People have an inherent dislike for work and
will avoid it whenever possible.
●Work is as natural as play and rest.
●People must be coerced, controlled, directed,
or threatened with punishment.
●People will exercise self-direction if they are
committed to the objectives (they are NOT lazy).
●People prefer to be directed, do not want
responsibility, and have little or no ambition.
●Commitment to objectives is a function of the
rewards associated with their achievement.
●People seek security above all else. ●People learn to accept and seek responsibility.
●Creativity, ingenuity, and imagination are
widely distributed among the population.
●People are capable of using these abilities to
solve an organizational problem.
●People have potential.
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11. □ Positive and Negative Motivation
Motivation is concerned with inspiring the man to
work to get the best possible results.
Positive Motivation:Positive Motivation: motivation means positive
motivation. It makes the people induce to do their
work in the best possible manner they can and
improve their performance. It provides better
facilities and rewards for their better performance.
Negative Motivation:Negative Motivation: Negative motivation aims at
controlling the negative efforts of the workers and
seeks to create a sense of fear on an uncongenial and
unhelpful environment for the worker where he has to
suffer for lack of good performance.
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Editor's Notes
The equation states that the more opportunities for economic rent exist in a country, the larger will be the corruption. Similarly, the greater the discretionary powers granted to administrators, the greater will be the corruption. However, the more administrators are held accountable for their actions, the less will be the corruption.
Purchase of jet fighter aircraft, for example, ideally meets these requirements. This item is costly, it is not something that one can buy in a supermarket and find out its price, and it is required to safeguard national security- a high national objective which no one wants to compromise or to appear unpatriotic by questioning its usefulness.