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4Motivational Processes
Zhenikeyev/iStock/Thinkstock
Learning Objectives
After reading this chapter and studying the
materials, you should be able to:
Discuss the nature of motivation and its role in the workplace.
Apply early theories of motivation to speci�ic jobs and
activities.
Utilize the principles of behaviorism and reinforcement to
improve performance.
Employ the concepts present in equity theory.

Implement expectancy theory to enhance employee motivation.
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4.1 The Nature of Motivation
Motivation ranks as one of the most frequently used terms in
business. Seeking to understand the nature of motivation has
been a constant goal in management
and organizational literature. After all, understanding the nature
of motivation helps organizations increase levels of effort and
subsequently improve levels of
performance. For decades, motivation was one of the most
frequently studied subjects in organizational behavior (Ambrose
& Kulik, 1999). As a result, a rich
variety of theories, ideas, concepts, and programs about
motivation emerged. Some confusion and disagreement about
the nature of the concept resulted as well.
Differences begin with the de�inition. The word "motivation"
is derived from the Latin movere, or "to move." Some authors
conceptualize motivation in term of
drives, unful�illed needs, and more cognitive concepts (see
Figure 4.1). Others portray it in terms of intensity, direction,
and persistence of effort toward attaining
a goal (Mitchell, 1997). This de�inition also leaves room for
interpretation, such as what exactly "intensity" means in that
context.

Figure 4.1: Concepts of motivation
Some models of motivation, such as the one shown, portray
motivation as a drive, while others consider intensity,
direction, and persistence of effort toward attaining a goal to be
a more accurate depiction.
In any case, motivation can be considered in a more general
manner or as it speci�ically applies to a workplace setting. In
considering motivation at work,
perhaps the best way to think of it is in terms of an end result:
behavior. M. R. Jones (1955) de�ined motivation as
1. what starts behaviors,
2. what maintains behaviors, and
3. what stops behaviors.
Table 4.1 displays workplace behaviors worthy of being started
and maintained as well as those that are best when stopped.
Table 4.1: Behaviors at work
Start and maintain Stop
Attendance Unhealthy habits
Punctuality Unsafe work practices
Productivity/effort Unproductive con�lict
Cooperation with others Vandalism
Citizenship behaviors Unethical actions
To encourage or discourage the behaviors displayed in Table
4.1, various motivational theories may be applied. In 1980,
Szilagyi and Wallace conceptualized

motivation into two categories: content and process. Content
theories of motivation examine factors within individuals,
notably needs, that lead to behaviors.
Content theories describe the essence or content of motives,
which are often viewed as unsatis�ied or unful�illed needs. For
example, individuals might be
motivated to work because it helps them meet certain physical
needs, such as those for food, clothing, and shelter.
Process theories examine the progression of events that lead
to motivated behavior. Process theories can be subdivided into
two sets, based on whether they
examine operant processes or cognitive processes. Operant
process theories of motivation explore external factors,
such as rewards given by managers to
employees that increase and decrease behaviors, using Skinner's
behaviorism principles. Cognitive process theories of
motivation examine the thought
processes or mental reasoning processes that lead to behaviors,
such as when an employee believes he or she is treated unfairly
and responds by looking for a
job elsewhere. Table 4.2 presents the theories of motivation that
will be discussed in this chapter.
Table 4.2: Motivation theories
Content theories Operant process theories Cognitive
process theories
Maslow's hierarchy of needs theory Reinforcement theory
Equity theory
Alderfer's ERG theory Organizational behavior modi�ication
(OB Mod) Expectancy theory
McClelland's need theory

Herzberg's two-factor theory
Each of these theories contributes to our knowledge of how
employees behave on the job; however, more work remains to
be done. Gallup Poll surveys from
2011 through 2015 indicated that a substantial number of
American employees reported they were "not engaged" or were
"actively disengaged" with their jobs.
More than ever, managers trying to improve levels of
productivity need to engage and motivate the workforce. OB in
Action: Edward Jones describes how this
takes place in one company.
OB in Action: Edward Jones—Employee Motivation
in Financial Services
What does it take to become one of Fortune magazine's "100
Best Companies to Work For"? The answer at Edward Jones
includes a balanced approach to
serving clients and motivating workers (Fortune, 2011). In
2016, the organization reached the rank of 10th in the nation by
Fortune. The St. Louis-based
company has maintained an impressive record of success in the
�inancial services industry even during the 2008 recession and
the turbulent stock
market of that time.
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Companies that prioritize employee development often

see higher retention rates.
Getty Images/Photodisc/Thinkstock
Employees hired at Edward Jones tend to remain with the
company for long periods of
time. To get them started properly, employees receive quality
training both in person and
through an online system. Questions are quickly answered
through the home-of�ice
employee support system. Mentoring programs are coupled with
a regional support
system to further assist individuals in reaching their full career
potential.
The compensation system begins with hourly wages that are
based on geographic
location, the level of the position, and levels of performance.
Wages are enhanced through
the application of bonuses based on pro�itability of the �irm,
the branch, and individual
productivity. A companywide pro�it-sharing program further
stimulates individual effort
and builds a spirit of cooperation. The bene�its package
includes medical, dental, and life
insurance, sick leave, vacation pay, a 401(k) plan, and the
ability to purchase securities at
a discount. For higher-ranking employees, top management
encourages investment and
ownership in the company through a limited partnership plan,
which further emphasizes
the connections between personal efforts, cooperative efforts,
and organizational
rewards. According to Fortune, employees give Edward Jones
high marks in the areas of
managerial credibility and camaraderie within the organization.

The company, which had a workforce that was 93% Caucasian
in 2010, has begun an
intensive diversity program. Company documents proclaim that
Edward Jones "does not
aspire to be a �irm of middle-aged white men." Instead,
management believes that a more diverse work force adds
energy and ingenuity to operations and
would likely lead to an expansion of the company's clientele.
As a privately held company, Edward Jones has managed to
build a powerful presence based on relationships. As is the case
in similar organizations,
private ownership can engender a more "family" type of
atmosphere with fewer constraints dictated by mandates from
outside entities, such as
shareholder groups or members from outside boards of
directors. Relationships among employees lead to strong,
personal bonds. Relationships with
clients lead to longterm business success.
Re�lection and Application Questions
1. What role do bene�its such as life, health, and dental
insurance play in motivational levels of employees?
2. Do you think group incentives such as those offered by
Edward Jones generate a different kind of motivation than do
individual incentives?
3. What role does being a privately held company play, in terms
of a �irm's ability to structure its motivational program?
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Though Maslow's hierarchy of needs offers a
useful frame
of reference regarding motivation, it is important to
note
that each individual's priorities may deviate from the
model.
Gajus/iStock/Thinkstock
4.2 Early Motivation Theories
In the 1950s, motivation theories that concentrated primarily on
human needs emerged in the United States. The basic premise
was that people act to ful�ill such
needs. These content theories formed the basis for later
conceptual development, and many practicing managers
continue to use the principles established in
these early theories.
Maslow's Hierarchy of Needs
Perhaps the best known need-based theory of motivation was
developed by psychologist Abraham Maslow (1954), whose
humanist perspective in�luenced the
�ields of management and organizational behavior. Maslow's
belief that people are essentially good and that they seek to
improve throughout life is re�lected in
his hierarchy of needs approach, which can be described as
a satisfaction–progression model. In essence, an individual
regularly experiences a need until it is
regularly satis�ied. At that point, the person "progresses" or

moves toward the next need level. The progression is as
follows:
Physiological → Safety → Social → Esteem → Self-
actualization
Physiological needs include food, clothing, shelter, water, and
sex—the basic bodily needs. Holding a steady job helps satisfy
physiological needs. Safety needs are
those associated with security and protection. A workplace free
of physical and emotional danger ful�ills this need. Social
needs include a sense of belonging,
love, affection, acceptance, and friendship. Making friends and
building a social network on the job meets social needs. Esteem
results from being held in high
regard by peers, through respect, prestige, and recognition.
Company awards, favorable performance reviews, and
promotions generate esteem by others.
Selfactualization consists of feeling that one's life work is
helpful or meaningful to other people and that the work ful�ills
personal needs for growth, achieving
one's potential, and being true to oneself. A self-actualized
person on the job does work that he or she wishes to do, and the
work helps other people.
Maslow considered physiological and safety needs to be lower-
order, physically based needs. Social needs, esteem, and self-
actualization constitute higher-order
needs that have a psychological or mental basis. Maslow
surmised that relatively few people achieve self-actualization.
Maslow's hierarchy enjoys the bene�it of being logical and
intuitively sound but is unsupported by empirical research
(Lawler & Suttle, 1972). Additional
problems associated with theory include the following:

It does not explain the degree of satisfaction needed to progress
to the next level.
It fails to account for individuals that experience needs in a
different order.
It does not recognize other key needs, such as the need for
power.
It cannot predict the type of behavior associated with any given
need.
Consider the �irst criticism. In terms of feeling "safe," how
should that term be interpreted? When does one feel safe
enough to progress to social needs, such as
belongingness and love? A person who lives in constant fear of
losing a job, or someone who works in a dangerous country or
region, might view safety in a
different light than people in other places. It would be dif�icult
to discern the degree of safety needed to move forward to the
next level.
The same problem exists at other levels. What degree of
"esteem" must be met for someone to progress to needs for self-
actualization? Where does esteem come
from—the plaudits given by others on the job (plaques,
trophies, positive performance reviews, promotions), or from
other sources such as social standing in
one's community or religious organization? Without a clear idea
of what would completely satisfy this need, it becomes
impossible to discern when a person
might progress.
In terms of the order of needs, the "starving artist" is a person
who forsakes safety and
security, and perhaps social well-being, in search of self-
actualization. Clearly this represents
a different order than speci�ied in the hierarchy. Further, for
some, the ultimate expression of

a well-lived life would be to have strong bonds with family and
friends, deeming those
relationships far more important than esteem or self-
actualization.
The third criticism of the theory notes that other needs exist
beyond those mentioned in the
hierarchy. Power clearly is one. Another would be the need for
autonomy. The hierarchy, in
essence, expresses a highly limited view of needs that might
serve as motivators.
Regarding predicting behaviors, the way a person seeks to
ful�ill each need could vary greatly
from others. To feel safe, some believe owning a gun and living
in a well-forti�ied and locked
house is necessary. To feel secure, one person might believe a
healthy pension plan is the key
while another may think being debtfree is the most important.
Seeking to meet esteem needs might also result in divergent
behaviors. At the most basic
level, some might consider the approval of others (af�irmation)
to be the best indicator of
being held in esteem by others, whereas others look to different
outcomes. For instance, a
vote for "employee of the year" might boil down to a popularity
contest that indicates
approval by peers and therefore serves as a major motivator for
one employee. Another
employee would value tangible achievements, such as
improving personal sales �igures,
�inalizing the development of a new product that reaches the
market, or some other outcome
as the best measure of personal success, and derive esteem from
that source.

In general, the hierarchy of needs theory provided some basic
ideas about how different factors might serve as motivators at
various stages of life or in personal
situations. Although research efforts could not demonstrate that
everyone experiences needs in this order, or in any order for
that matter, the theory did lead to
the development of content theories and eventually to newer
conceptualizations of the nature of motivation.
Alderfer's ERG Theory
Clayton Alderfer (1972) sought to simplify the hierarchy of
needs by breaking it down into three concepts. Thus, the
progression in the ERG model is
Existence → Relatedness → Growth
Existence needs equate to concepts of physiological and safety
needs. Relatedness needs match social needs. Growth needs
incorporate needs for esteem and
self-actualization. Notice that existence needs could be
considered as physical in nature, relatedness as social in nature,
and growth as psychological in nature, or
Physical → Social → Psychological
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According to McClelland, effective management

arises out
of several different individual needs, which must be
tempered by self-knowledge and maturity.
DragonImages/iStock/Thinkstock
In addition to Maslow's concept of satisfaction-progression,
Alderfer added a second concept: frustration–regression. If, for
example, a worker has met physical
needs but is socially unskilled, the employee will become
frustrated by the inability to make friends. Such a person would
"regress" back to the existence level
and feel that need more strongly. The individual would become
obsessed with possessions and other physical objects.
An employee with routinely satis�ied physical and social needs
working in a dead-end job could not progress to ful�ill growth
needs. As a response to the
frustration, that worker might greatly expand his or her social
network. This concept resonated with the times in which the
theory emerged. Numerous articles
appeared in popular press literature and academic circles
depicting the idea that workers suffered from blue-collar
blues.
When many jobs in the United States were performed in
factories and other manufacturing facilities, and employees only
performed mundane, routine, repeated
tasks daily, they could not ful�ill growth needs even as
physical needs were well met through solid pay and bene�it
packages. Alderfer's theory predicted that the
logical response to blue-collar blues would be to engage more
intensely in social activities such as religious organizations,
hobbies (bowling, softball, playing
card clubs), and in other places where people could interact
with family members and friends. A great deal of colloquial

evidence supported this idea, as bowling
alleys and playing �ields were �illed with contestants, and
other social groups (Lions Club, Fraternal Order of Eagles,
Rotary Club, Veterans of Foreign Wars)
�lourished during the 1950s and 1960s.
While the ERG model added to the ideas present in the
hierarchy of needs, it did not solve any of the problems
associated with that theory. Thus, progression-
based models of need ful�illment were soon replaced by new
approaches.
McClelland's NeedTheory
David McClelland (1961)identi�ied a series of needs not
mentioned by Maslow or Alderfer. Of these, three have been
associated with management and
organizational behavior. Needs for power, achievement, and
af�iliation relate to many on-the-job issues.
The need for achievement re�lects the degree to which an
individual exhibits the drive to excel and generate
accomplishments. Individuals with high needs for
achievement tend to take moderate levels of risk, depending on
their con�idence that they can complete the task. Those with
high needs for achievement prefer
immediate feedback, value accomplishment as much as money
and material rewards, tend to become preoccupied with the task
at hand, and are more likely
than others to become entrepreneurs. They are more likely to
succeed in circumstances where they can direct activities and
are personally responsible for
outcomes. As managers, they may be less helpful to employees,
concentrating instead on their own projects. These individuals
are also prone to stress-related
problems.

McClelland proposed one additional noted relationship. High
needs for achievement were
associated with entrepreneurial tendencies (McClelland, 1965).
The logic involved was that a
successful business is a tangible indicator of achievement, an
outcome that would be valued
and important to someone with such a need.
Those with low needs for achievement are inclined to create
self-ful�illing prophecies of
failure. They may lack con�idence and avoid challenges. Some
evidence suggests that the need
for achievement can be taught or enhanced through training that
incrementally creates
successes. Each time a person successfully completes a task,
assignment, or training exercise,
his or her con�idence grows, even if just marginally. These
successes, in turn, inspire the
willingness to tackle more dif�icult challenges (McClelland,
May 1965).
The need for power is the drive to make others behave in
ways they would not otherwise
choose. When properly channeled, the need for power can be
related to managerial success.
To use power effectively, an individual should not create or
wield power in pursuit of personal
goals and should not place in�luence ahead of effective
performance (Kipnis, 1974).
McClelland (1976) argued that empirical research indicates that
good managers are
motivated by a need for power, and tempered by maturity and
self-control. He believed that
workshops could be developed to help managers discover

whether they have the correct
motivational pro�ile to become a better manager. Note that this
relationship would only hold
when the manager seeks to in�luence others to help them
achieve higher levels of
performance and not when the goal is simply to "boss people
around" as a demonstration of
personal power.
The need for af�iliation, which is like the social needs
identi�ied by Maslow and relationship needs in Alderfer's
approach, reveals a need for close interpersonal
relationships, including joining groups and seeking love or
friendship. High needs for af�iliation can be a detriment to
becoming a successful manager, as these
individuals worry too much about the opinions and perceptions
of others (Winter, 2001). Individuals with low needs for
af�iliation who are not in managerial
roles will be more comfortable in more isolated positions.
Individuals with high needs for af�iliation should be placed
into jobs with greater degrees of
interaction with the public or with peers.
Motivational needs theory has value in two areas. First, the
approach can help predict the types of jobs best suited to
various individual personalities as well as
chances for success in managerial positions. A person with a
high need for af�iliation will be better suited to a job in which
interactions with coworkers and the
public take place, such as sales or customer service. A person
with high need for achievement �its best in jobs in which
tangible evidence of success is routinely
provided. Second, the theory explains circumstances in which
an employee may become dissatis�ied because the job does not
match his or her need pro�ile.

The primary criticism of McClelland's approach was about the
research method. The Thematic Apperception Test was used to
discover the various types of
needs individuals would express. Unfortunately, the test is
prone to the social-desirability response bias problem, in which
a subject shields or hides his or her
true feelings or needs to appear to be socially acceptable.
Consequently, the test may or may not reveal a person's real set
of needs or the degree to which a
person feels any given need.
Further, this approach is not a complete theory but rather only
identi�ies various needs. No method is described to explain
how various levels of needs, high or
low, would become manifest as behaviors. Consequently, it
cannot be viewed as an encompassing explanation of
motivation.
Herzberg's Two-Factor Theory
Frederick Herzberg's two-factor theory proposes that a certain
set of factors is responsible for workplace dissatisfaction, while
another set is responsible for
workplace satisfaction. Herzberg based the theory on analysis of
interviews with more than 200 accountants and engineers
(Herzberg, Mausner, & Snyderman,
1959). The theory has also been described as motivation-
hygiene theory, because Herzberg calls the factors that affect
satisfaction "motivators" and the factors
that cause dissatisfaction "hygiene factors" (see Table 4.3).
Table 4.3: Hygiene factors and motivators
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A discussion of Herzberg's two-factor theory with a focus on
the importance of employee participation.
Critical Thinking Questions
1. What constitutes a hygiene factor for you? Why?
2. What constitutes a motivational factor for you? Why?
Hygiene factors Motivators
Wages Achievements
Hours Recognition
Working conditions Actual work or job
Relationships with supervisors Responsibility
Relationships with peers Chance for advancement/growth
Range: Dissatisfaction → No Satisfaction Range: No
Satisfaction → Satisfaction
Sources: Adapted from Whitsett, D. A., & Winslow, E.
K. (1967). An analysis of studies critical of
the motivation-hygiene theory. Personnel Psychology,
Winter, 391–414; Ivancevich, J. M., Lorenzi, P.,
Skinner, S. J., & Crosby, P. B. (1997).
Management: Quality and competitiveness. New York,
NY: McGraw-Hill/Irwin.

Hygiene factors are maintenance factors: They are
characteristics of a job that do not increase
satisfaction or motivation, but their absence creates job
dissatisfaction. Examples of hygiene
factors might include the wages a worker is paid or the hours a
person is asked to work. The
most that can be achieved with hygiene factors is to keep them
neutral. The term hygiene
re�lects conditions in a hospital. A dirty hospital will make you
sick (dissatisfaction). A
sparkling clean hospital will not make you well (no new
satisfaction).
The second set of factors, motivators, is derived from personal
effort and performance. The
corresponding recognition, increased responsibility, and
opportunity for personal growth as
well as promotion to a higher rank provide incentives to try
harder. When these factors are
missing, no motivation occurs. When they are present or are
added, motivation increases.
Consequently, they should be built into the job through
programs such as job enrichment,
which enhances the known motivators in each individual job or
occupation.
The Edward Jones example demonstrates how two-factor theory
works in a business
organization. The company's pay and bene�it program removes
any problems associated with
hygiene factors and dissatisfaction. The use of group bonus
incentives as well as individual
incentives for performance builds achievement and recognition
into the job, which includes
friendly interactions with customers and coworkers plus the

challenge of creating �inancial
portfolios that serve individual needs. The opportunity to
become a limited partner in the �irm
adds the chance for growth into the mix. It should not be
surprising, then, that the company
enjoys a satis�ied and motivated workforce.
A series of challenges have been raised about two-factor theory.
First, the terms "motivation"
and "satisfaction" are being used interchangeably, when they
are not, in fact, exactly the same.
A person can state he or she is "satis�ied" because "I don't have
to do anything—just collect a
check." In other words, "I'm satis�ied because I don't have to
be motivated." Another individual
might report extreme dissatisfaction and motivation as its
result, as in, "I hate working third
shift (working conditions), so I'm going to try extra hard to get
promoted so I can work days."
The bottom line is that even though other combinations are
possible, two-factor theory only
accounts for circumstances in which individuals are satis�ied
and motivated or dissatis�ied and unmotivated as a
consequence.
Second, many note that accountants and engineers are not
necessarily representative of every type of occupation.
Interviews of construction workers might
result in different answers regarding workplace satisfaction and
motivation, as would answers given by employees from other
countries and cultures.
Despite these criticisms, many managers believe the two-factor
theory helps explain workplace dissatisfaction. One of the
strengths of two-factor theory, when
compared to other needbased theories, is that the research was

conducted in an employment setting and focused on motives
that would be present in the
workplace, rather than more general motives that might apply in
other situations, such as at home when dealing with family
members or a spouse, in a place of
worship, or when supporting a candidate for political of�ice.
Further, the concept of making jobs more interesting and
challenging resonates with managers,
employees, and the academic community. Thus, two-factor
theory continues to be a popular method for examining the
workplace environment.
In summary, the need-based theories, or content theories, focus
on relationships between needs and workplace behaviors.
Maslow's hierarchy of needs, a
satisfaction–progression model, traces the progression of needs
through physiological, safety, social, esteem, and
selfactualization stages. Alderfer's ERG theory
suggests needs evolve from existence to relatedness to growth,
or physical to social to psychological. Alderfer accounts for
frustration– regression, in which an
individual who cannot meet a higher-level need becomes
frustrated and feels the lower-level need more strongly.
McClelland's need theory examines the impact
of the needs for achievement, power, and af�iliation on an
individual's motives, which can be translated to workplace
settings. Herzberg's two-factor theory
suggests that a series of contextual job features cannot satisfy
employees, but can lead to dissatisfaction or satisfaction.
From Title: Motivation Theories and Employee Participation
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Managers must be able to identify those behaviors
that
have an impact on performance, otherwise they risk
investing time in unproductive tactics.
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4.3 Contemporary Approaches: Organizational Behavior
Modi�ication
Many theories in psychology can be linked to more than one
topic in organizational behavior. Reinforcement theory, based
on Skinner's operant process model,

presents an example. Reinforcement affects how and what
people learn, as was described in the chapter on learning
(Chapter 3). Reinforcements also can be
used to change behaviors—what cognitive theorists would label
"motivating" employees. Reinforcement theory also has
applications to theories of personality
development.
We have already examined the essential ingredients in
reinforcement theory—positive and negative reinforcement,
punishment, and extinction—and programs
to deliver reinforcements with continuous and intermittent
schedules. This chapter will examine another operant process
theory, organizational behavior
modi�ication (OB Mod), which demonstrates how the
principles of reinforcement theory can be systematically built
into a company's operations.
OB Mod is a business-based program developed by Fred
Luthans that offers simple, easy-
tofollow steps that will enhance performance (Luthans &
Kreitner, 1975)—essentially a
business "cookbook" of sorts. The system has been successfully
applied in several business
organizations. The steps of an OB Mod program are as follows:
1. Identify critical, performance-related behaviors.
2. Find ways to observe and count the behaviors.
3. Conduct a functional analysis associated with the behaviors.
4. Design a program to change or modify the behaviors.
5. Run the program.
6. Follow up.
Identify Critical Behaviors
Perhaps the most important step in the plan is the �irst one. If

managers fail to identify the
critical behaviors and instead identify only unimportant
behaviors, then everything that
follows will be geared to the wrong activities. Also, if managers
focus on employee attitudes
rather than behaviors, no effective way to make the system work
will surface (Luthans, 1988).
Table 4.4 suggests a series of critical behaviors in three
industries.
As an example, consider what might take place in an upscale
retail chain store in a downtown
location of a major city. The retailer's top management has
identi�ied two key performance
indicators for the store: sales and "inventory shrinkage" (stolen
merchandise). Based on
discussions with supervisors, it becomes evident that those two
performance indicators are
most impacted by three critical behaviors performed by staff:
(1) staying on station in the
part of the store to which they have been assigned, (2) greeting
customers within 30 seconds
of arrival in their areas, and (3) maintaining and arranging
merchandise. Staying on station
reduces inventory shrinkage (shoplifting) through observation
of people in the area. Greeting
customers personalizes the shopping experience: people
intending to shoplift are no longer
stealing from a store; instead, they are stealing from that nice
person who just said "hello" (which is why stores such as
Walmart place greeters at the front of the
store). Arranging merchandise makes shopping easier and
increases sales. Table 4.4 provides a summary of critical
behaviors.

Table 4.4: Critical behaviors by industry
Manufacturing Service Retail
Number of units produced Calls returned on time Staying "on
station"
Number of defects Polite treatment of customer Greeting
customers
Attendance Paperwork completed correctly
Arranging/maintaining merchandise
Punctuality Problems resolved Politely giving directions to
other departments
Machine maintenance Proper handling of returns and exchanges
Following safety rules
Observe and Count Critical Behaviors
Numerous methods may be used to monitor employee and
customer behaviors. Managers can directly view employees on
the job, employ video surveillance, or
observe activities through various other means. These behaviors
can then be recorded or counted in some way, manually or in a
database.
Conduct a Functional Analysis
A functional analysis serves the purpose of discovering which
antecedents or stimuli are connected to desired behaviors and
which lead to undesired behaviors.
In his writings, Luthans (1988) has utilized two forms of
functional analysis: Antecedent-Behavior-Consequence (ABC)
and Stimulus-Organism-Behavior-

Consequence (SOBC). Note that an antecedent and a stimulus
are the same thing.
Antecedents and stimuli that lead to desired behaviors include
the presence of a supervisor, reminders through signs posted in
the workplace, and even the
company of a well-respected colleague or peer. Antecedents and
stimuli that precede undesired behavior can take a variety of
forms. The consequence becomes
unproductive time instead of working on job-related tasks. A
clock in plain view can cause employees to anticipate breaks,
lunchtime, and the end of the day
rather than the work at hand. A visible water cooler with a
nonchalant employee lingering beside it invites others to come
and visit rather than stay on task.
Even an attractive member of the opposite sex may distract a
worker from a job assignment. In each instance the antecedent
or stimulus directly connects to
non-desired behaviors and unfavorable consequences (lost sales;
increase shoplifting).
In the retail store, the water cooler might entice workers to
wander off station and away from arranging merchandise or
greeting customers on time. Also, social
clusters tend to form in areas that are not as observable from
management of�ices, such as a lunch room or break room. The
presence of a supervisor as an
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antecedent or stimulus would lead to more attentive work
behaviors and more desirable consequences (well-organized
merchandise, increased sales, lower
shrinkage).
Design a Program
Next, the focus of OB Mod shifts to designing a program that
increases desirable behaviors and discourages unwanted
behaviors. In keeping with the spirit of
Skinner's work, the OB Mod program does not recommend the
use of punishment alone to achieve these changes. Although it
can be incorporated into the
program, Luthans suggests ways to alter behaviors using other
means. Three resulting alternatives are listed here.
1. Positive reinforcement only: Desired behaviors are
identi�ied and rewarded.
2. Positive reinforcement and punishment: Desired behaviors
receive rewards and undesired behaviors are punished.
3. Positive reinforcement and extinction: Desired behaviors are
rewarded and either (a) the stimuli that lead to pleasant
consequences associated with
undesired behaviors (such as the water cooler) are removed, or
(b) the consequences themselves are somehow diminished.
In the retail store, the programs could use elements of positive
reinforcement and extinction. Desired behaviors could be
rewarded, �irst with on-the-spot cash
rewards and later with contest prizes. Extinction could involve
not removing the water cooler but rather simply blocking the
view from the retail �loor, which
would mean no one could see if another employee was getting a
drink. In an interesting twist, an element of negative
reinforcement could be added: After the

store closes each night, clerks cannot leave until merchandise is
fully back in its place.
Run the Program
When conducting the program, adequate instruction should be
given to all parties involved. Supervisors will know what to
observe and how to respond (reward,
punish, extinction). Employees are noti�ied that certain
behaviors are important and will be recognized.
To implement such a program, the retail store supervisors could
be given bundles of dollar bills and told to distribute them when
they observed salespeople on
station with merchandise arranged and those that greeted
customers in a timely fashion, over a period of two weeks.
Approaches such as these have been
successful in other retail stores, with sales increasing and
shrinkage reduced. To establish the behaviors more
permanently, a contest could be held and
employees could receive prizes for maintaining the desired
behaviors over longer periods of time. The contest would last
six months.
Follow Up
The follow-up step ensures that the desired behaviors were
identi�ied, that the ABC or SOBC analysis correctly identi�ied
pathways to desired and undesired
behaviors, and that the program achieved the desired results.
Programs that succeed may be institutionalized or re�ined for
future use. Programs that do not lead
to positive results are evaluated, beginning with the �irst step.
Were the correct behaviors identi�ied? If so, then other
elements of the program deserve attention.
It may have been, for example, that employees did not truly

desire the rewards that were offered.
In the case of the retail store, programs like the one described
in this section have yielded both short-term and long-term
success. The principles gained from the
key performancerelated behaviors were then incorporated into
new employee training and manager training programs.
In summary, organizational behavior modi�ication employs the
principles of reinforcement theory and Skinner's operant process
model. The program focuses on
speci�ic, performancerelated behaviors that managers can
observe and count. A functional analysis identi�ies pathways to
desired and undesired behaviors.
Programs consisting of positive reinforcement, and sometimes
punishment or extinction are designed and implemented. Results
can then be analyzed to see if
the appropriate behaviors have been modi�ied and if
performance measures improve.
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Equity differs from equality in that equitable
treatment
must be proportional, whereas equal treatment need
only
be uniform.
Berezko/iStock/Thinkstock
4.4 Contemporary Approaches: Adams's Equity Theory
As the twentieth century unfolded, an increasing emphasis on
understanding worker psychology emerged. The trend
in�luenced studies of numerous
organizational phenomena, including motivation. While it was
clear that applications of operant process theories could
demonstrate tangible results, other
employee reactions continued to require attention and study.
Thus, in a manner like what occurred in the study of learning, in
which internally generated and
externally generated explanations were offered, research in
motivation was subdivided into studies of operant and cognitive
process models. The two most
noteworthy cognitive process models are (1) Adams's equity
theory, which will be discussed in this section, and (2) Vroom's
expectancy theory, which will be
described in Section 4.5.
The essence of equity theory, presented by J. Stacy Adams in
1963, can be described as
follows: When people perceive their situation at work as being
fair or equitable, they are more
likely to remain motivated at the level they have always been.
When they perceive their
situation as unfair or inequitable, they are prone to

dissatisfaction and there will be a negative
impact on their levels of motivation.
Key Principles
Many people have worked in jobs where things just do not seem
fair. Equity theory and
concepts regarding organizational justice explain how they
often react. The theories account
for feelings that arise when perceptions of inequality or inequity
take place. The feelings
result from observations of what happens to an individual and to
others around that person.
Inputs and Outcomes
At work, people exchange inputs for outcomes. Inputs include
everything an employee trades
with an organization, expecting something in return. Examples
of inputs include education,
experience, special skills, levels of effort and productivity,
helpfulness to others, creativity or
suggestions, and even personal appearance.
Outcomes are the things the organization provides in exchange
for inputs. Outcomes include
pay, praise, chances to be promoted, status symbols (corner
of�ice; reserved parking space), company bene�its, job
assignments, recognition, job security, and
inclusion in organization planning and decision making.
Presence of a Referent Other
A referentother is a person an employee chooses for purposes of
making social comparisons. In other words, an employee is
likely to single out someone at
work or in some other organization for the purpose of
examining inputs and outcomes. Most of the time, a referent

other will be an individual who was hired at
about the same time and performs the same or a comparable job.
In other circumstances, different forms of referents are selected,
as displayed in Table 4.5.
Table 4.5: Potential referent othercomparisons
Self inside the company The employee compares a new position
or job to a previous position or job in the same company.
Self outside the company The employee compares a current
position or job to a previous position in a different company.
Other inside the company The employee compares a current job
or position with another person or group within the same
company.
Other outside the company The employee compares a current
job or position with another person or group in a different
company.
The Comparison
No matter which type of referent emerges, the employee makes
a comparison of inputoutcome ratios. These are "give-get"
relationships, or, "what I give and get
versus what my referent other gives and gets," as shown next.
Personal outcomes
versus
Referent other outcomes
Personal inputs Referent other inputs
Perceptions of Equity
Equity occurs when the ratio comparison is perceived as being
in balance, or as fair. For instance, Joe works at a local Dairy

Queen restaurant, where he was
hired by his friend Susan. Joe's outcomes include pay of $7.25
per hour and �lexible scheduling in which he can switch shifts
with other employees if he desires a
particular night free. His inputs involve serving customers,
cleaning the store, counting the cash drawer at night, and
restocking the preparation area.
Susan is the night manager. Her outcomes include pay of $9.75
per hour and food purchase discounts. Her inputs include hiring,
training, and �iring employees,
completing daily report sheets, working on a �ixed schedule
with no shift switching, plus serving customers, cleaning, and
helping stock the prep area.
Although Susan earns $2.50 per hour more, Joe believes the
differential is equitable. Susan gives more to get more. Joe
gives less and receives less. When such a
sense of equity or equilibrium exists, behavior is maintained.
Recalling that the de�inition of motivation includes "what
maintains behavior," a sense that things
are equitable or fair means an employee will encourage an
employee to keep working at the same pace and with the same
level of intensity.
Perceptions of Inequity
Many times, a review of personal and referent other inputs and
outcomes leads to the perception that the formula is not in
balance. This circumstance, inequity,
or disequilibrium results in a strong motivational force (a
cognitive process) to restore equilibrium. In other words, the
individual feels compelled to somehow
adjust the components in the input-outcome ratio. Table 4.6
represents the types of reactions that are possible.
Table 4.6: Reactions to perceptions of inequity

Activity Example
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Consider the functions of distributive and procedural
justice. Havetheseprinciples been at play in your current
or previous workplaces? If so, in what form were
they
implemented?
Vectoraart/iStock/Thinkstock
Change personal outcomes Ask for a pay raise
Change personal inputs Try harder; reduce effort
In�luence referent other outcome Encourage referent other to
ask for a raise
In�luence referent other inputs Encourage referent other to try
harder or reduce effort
Change referent other Look at outcomes and inputs of someone
different
Rationalize Add elements to the formula, such as time horizon
Leave the �ield Quit the job
The �irst set of adjustments involves a perception described as

"positive inequity."
Personal outcomes
>
This formula suggests that the person involved has reached the
conclusion that he or she is overpaid. Using the potential
responses noted in Table 4.6, a person
who felt overpaid could (1) try harder and produce more to
justify the difference, (2) change comparisons to a referent
other who earns more, or (3) rationalize
that the pay difference was based on seniority or some other
factor not previously considered.
The other form of disequilibrium, sometimes called "negative
inequity," would be as follows:
Personal outcomes
<
This situation re�lects feeling underpaid. A person who
believes he or she is underpaid could (1) ask for a pay raise; (2)
reduce inputs; (3) conclude that although
he or she is currently experiencing a raw deal, management will
eventually make things right through a promotion or some other
future adjustment to
outcomes; or (4) make plans to leave and quit.

Equity Theory and Organizational Justice
The basic premise that inequity exists when input-outcome
ratios differ is founded in the
principles established by the theory of distributive justice,
which posits that people should
receive in proportion to what they give in society (Greenberg,
1996), and which applies to the
allocation and amount of outcomes. Further, perceptions of
equity are in�luenced by
conclusions regarding the presence of procedural justice, a
term used to describe the
fairness of a process, such as a performance appraisal program
or pay raise system.
Research indicates that perceptions of distributive justice relate
to degrees of job satisfaction
(Dailey & Kirk, 1992). In other words, the conclusion that one's
inputs in terms of time, effort,
and the willingness to cooperate are matched by appropriate
levels of outputs in terms of pay,
promotion, positive performance appraisals, and supervisor
recognition lead to job
satisfaction.
Further, perceptions of procedural justice in�luence trust levels
with a supervisor,
commitment to the organization, and intentions to quit a job.
This �inding suggests that when
employees conclude that organizational systems are fair and are
carried out reasonably by
management, then they trust those in charge and exhibit
stronger commitment to the �irm.
Fairness principles such as these would apply to reward systems
(pay, praise, promotions) as
well as discipline systems (rules enforcement).

Distributive justice and procedural justice contribute to
perceptions of overall organizational
justice, which also includes interactional justice and
interpersonal justice, or the way a person
is treated by people of higher rank in the organization
(Greenberg, 1987). Interactional justice
and interpersonal justice are terms used to describe perceptions
of how a person feels he or
she is treated by those at higher levels, such as with a
reasonable attitude and respect or
disdain and distance. These feelings are less likely to in�luence
perceptions of equity and
inequity regarding inputs and outputs, focusing instead on
reactions to the speci�ic individual
involved. One exception would be when a manager's demeanor
and treatment of subordinates
re�lects a clear bias in which some are treated more favorably
than others.
Support for Equity Theory
Equity theory enjoys signi�icant theoretical support. First, the
concept of exchanging inputs for outcomes has a basis in the
concept of a psychological contract
(Schein, 1980). Psychological contracts are socially and
mentally constructed sets of exchanges, such as the division of
housework between two spouses or
partners, or the level of work in exchange for the level of pay
on the job. When psychological contracts are violated, negative
reactions occur. The psychological
contract concept has been well received for many years. Second,
the idea that people compare themselves to one another is based
on the strongly established
social comparison theory (Festinger, 1954). Third, the tendency
to act on disequilibrium has its basis in concepts of cognitive

dissonance (Festinger, 1957).
Cognitive dissonance, or mental disharmony, creates a mental
force seeking to resolve the discord or dissonance. Cognitive
dissonance leads to the reactions
displayed in Table 4.6.
Complications With Equity Theory
Initial organizational research supports the basic predictions of
reactions by individuals to perceptions of inequity (Scheer,
Kumar, & Steenkamp, 2003). At the
same time, a series of complications have been associated with
the work. For example, people apparently respond differently to
inequitable circumstances.
Equity "sensitives" believe �irmly in reciprocity and become
quickly motivated to resolve feelings of being over- or
underpaid. Equity "benevolents" are more
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altruistic and less bothered by being underpaid or by negative
equity relationships. Equity "entitleds" respond most vigorously
to negative equity or underpaid
circumstances and may remain frustrated until positive equity or
an overpaid comparison appears (Sauley & Bedeian, 2000). The
extent to which an individual
reacts to perceptions of inequity has been labeled equity
sensitivity (Bing & Burroughs, 2001).
Also, and not surprisingly, perceptions of being overpaid do not

seem to change a person's behaviors at work, possibly because
individuals so quickly rationalize
differences in outcomes (Steers, 1996). The theory does not
account for the power of the rationalization process in overpaid,
as opposed to underpaid,
situations.
On a more practical level, the potential number of social
comparisons that could be made within an organization is
unmanageable. A company with just 10 rank-
and-�ile employees would still present many potential
comparisons in the category of "other inside the company"
alone. Managers do not choose who someone
singles out for a social comparison, and the choice could be
completely inappropriate. For instance, if a new, fresh-out-of-
college supervisor compares himself to
a supervisor with eight years of experience, it might result in
inaccurate perceptions of deserved outputs as well as inputs.
Finally, equity theory may represent thought processes in the
United States, but not in other cultures. Many national cultures
do not contain strong opinions
regarding distributive justice. In other, formerly communist
countries, feelings of entitlement can supersede perceptions of
equity and distributive justice.
Therefore, the theory should be considered as culture bound
(Giacobbe-Miller, Miller, & Victorov, 1998).
Managerial Implications
The principles found in equity theory offer value to managers.
First, a supervisor can make certain that the equity comparisons
made by top performers receive
the most attention. Doing so can go beyond pay and bene�its.
Top performers can receive preferential treatment in terms of
scheduling breaks during the work

day, vacations, and other non�inancial signals related to their
worth. At the same time, each employee should believe that the
reward system is fair and not
simply based on personal preferences of the manager. Through
on-thejob feedback and the performance appraisal system,
workers can understand who the top,
middle, and low performers are in a department.
Second, managers can employ equity theory to understand why
workers become dissatis�ied and seek to leave a company. It
provides a framework for
understanding how employees react. Equity theory can be
applied to individual workers as well as to sets of employees. A
group of workers who believe they are
underpaid on an hourly basis will likely reduce production per
hour. An individual who believes he or she truly is overpaid
may respond by increasing the quality
of work to match the quantity of output. The bottom line is that
equity theory provides a quality prism for viewing employee
responses on the job. The feature
box OB in Action: High-Tech Discrimination
Lawsuits notes some of the implications of equity theory.
OB in Action: High-Tech Discrimination Lawsuits
In late 2015, Microsoft experienced a lawsuit alleging gender
discrimination and bias in salaries and promotion decisions by a
former employee. The
individual, Katie Moussouris, had moved on to a leadership
position in another tech company. "What happened to me is not
unique," Moussouris said in a
statement. "This case will illuminate the broad patterns of
decision-making against women. Fundamentally, this is about
fairness and equality" (Rao,
2015, para. 8).

Earlier in the year, Twitter and Facebook also had been sued. In
the case of Facebook, the charges went beyond gender
discrimination to include racial
discrimination and sexual harassment. At Twitter the charges
focused on favoring women over men in promotion decisions.
As is the case when allegations are made, a top executive may
be the main target of criticism. When Microsoft executive Satya
Nadella said that women in
technology should not ask for raises but trust that the system
would reward them, his remarks elicited intense criticism.
The technology industry does not stand alone. The Institute for
Women's Policy research noted that in 2015 the pay gap
between men and women
continued to stand at 20%, wherein a woman performing the
same job could expect to receive a rate of pay at 80% of what a
man would be paid
(Hegewisch & DuMonthier, 2016).
In high-tech �irms, such inequity in pay structure might create
even greater damage. The number of highly quali�ied and
talented individuals is limited.
Further, creating a level of dissatisfaction great enough to cause
a person to leave and subsequently �ile a lawsuit can injure
company's long-term
reputation and standing.
Re�lection and Application Questions
1. How would women who experience pay and promotion
discrimination be described in the terms present in equity
theory?
2. How do the concepts of distributive justice and procedural
justice apply to discrimination and harassment in these
circumstances?

3. Explain the potential impact of a pattern of discrimination in
terms of recruiting, selection, and retention of quality
employees in a high-tech
company.
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Vroom's expectancy theory implies that performance
is
determined by an individual's beliefs or
expectations in a
given situation.
ToddWarnock/DigitalVision/Thinkstock
4.5 Contemporary Approaches: Vroom's Expectancy
Theory
A second cognitive process theory designed to explain the

relationships between organizational circumstances and
employee motivation is expectancy theory
(Vroom, 1964). Several variations of the theory's concepts are
available in the literature. Each version contains three primary
elements: expectancy,
instrumentality, and valence.
Expectancy represents an individual's belief that a given level
of effort will result in the
successful performance of a task. A student who believes that
studying for at least 10 hours
will lead to a grade of "A" on a test expresses a high
expectancy. A second student who has
never made a grade of "A" on a test might conclude that no
level of effort will result in the
desired outcome. Expectancy can be summarized as follows:
Effort → Performance
Instrumentality re�lects an individual's belief that successful
performance of a task will
result in a speci�ic outcome or reward. A salesperson who
knows that reaching a speci�ic sales
target will result in a bonus holds a high instrumentality score.
A student who believes a
professor does not like him and will not award a grade of "A,"
even for an extremely well-
written term paper, expresses an instrumentality score that is
low or even zero.
Instrumentality may be expressed as this linkage:
Performance → Reward
Valence is an evaluation of the value or attractiveness of a
reward and consists of two
components. The �irst is the worth of the reward to the person.

If the prize in a production
contest is a new big-screen television, and all the contestants
really want a new TV, then the
valence of the prize will be high. On the other hand, if the prize
is two tickets to the county
fair, and no one cares about going to the event, the valence of
the outcome will be low or zero.
The second component of valence is the value associated with
achieving a goal or successfully completing a task. Winning the
contest provides valence
associated with doing the best job during a speci�ic time period
on a given task.
Calculating a Motivational Force
As mentioned, several versions of the combinations of these
variables have been presented. A simple approach would be a
multiplicative model, as follows:
Motivational Force (Intention to Give Effort) = Expectancy ×
Instrumentality × Valence
Values can then be assigned to each variable. Expectancy may
be rated from 0 to 1 or 0% to 100%. A score of zero means the
individual believes no linkage
between effort and performance exists, or "No matter how hard
I try, I can't do it." A score of 0.5 or 50% indicates the person
believes he or she has a 50–50
chance of success, given a speci�ic level of effort. A rating of
1 or 100% indicates the person has complete con�idence that,
given a certain level of personal effort,
the individual can complete the task or achieve the goal.
The same formulation applies to instrumentality. A score of
zero means the person does not believe a reward will be
delivered for successful performance. A

score of 50% suggests the individual is uncertain about whether
the reward will be delivered. A value of 100% means the person
expresses complete con�idence
that achieving a goal or successful performance will be
rewarded.
Assigning values to valence will be more problematic. Scales
can be used to indicate the value of a reward from 1 = no value
to 7 = great value, or sets can be used
to indicate low, medium, and high degrees of valence. This
means that some valences are more powerful than others.
Using this approach, it will be possible to see differences in the
degree of motivational force and make predictions about the
level of effort that will be given.
Expectancy theory then explains the following: The highest
level of effort would be expected when the individual believes
he or she can successfully complete a
task (high expectancy); that successful completion of the task
will result in a reward (high instrumentality); and that the
reward itself has value (high valence).
Under any other circumstance, the degree of motivation
diminishes (see Table 4.7). Notice also that if a score of zero is
assigned to any of the three variables, the
resulting level of motivation will also be zero.
Table 4.7: Degrees of motivational force
Motivational force = Valence × Instrumentality ×
Expectancy
High = High × High × High
Moderate = High × Moderate × High or moderate
Low = Low or moderate × Low or moderate × Low or moderate

Source: Szilagyi, A. D., & Wallace, M. J. (1980).
Organizational behavior and performance (2nd ed.).
Santa Monica, CA: Goodyear,118.
As an example, a company's management team decides to hold
its annual sales contest. Winners and prizes are determined
using three criteria: (1) new clients,
(2) increase over previous year's sales as a percentage, (3)
number of sales calls made that resulted in new prospects, even
though no �inal sale was made. Three
prizes are awarded each year: (1) an all-expense paid trip to
Hawaii during the winter season, (2) a $2,000 gift certi�icate to
any store of the salesperson's
choosing, and (3) a $500 cash award.
One salesperson has been the winner of the top prize for the
past three years. The individual has a territory ripe with
prospective new buyers that have not yet
been contacted. The person knows she has the ability to turn
prospects into customers while increasing sales orders from
existing clients. She loves Hawaii.
A second salesperson has �inished fourth for the past two
years. One of the previous top three winners has retired. The
salesperson has no problem making
contacts but has been disappointed a few times when a sale
looked good but then fell through and also thinks her territory is
less favorable than those serviced
by others. The person would be thrilled to win any of the three
prizes but worries about competition from new hires, especially
those in more favorable
territories.
The third salesperson has �inished last, or next-to-last, for the
past �ive years. Although he would love winning, he has
concluded that his territory is not suited to

gaining new prospects or clients. He is exceptional at increasing
sales from existing clients and makes a solid level of earnings
from his commissions.
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The company has a solid history of fairly granting the prizes to
winners. In this situation, the �irst salesperson's motivation
would remain quite high, because
valence, instrumentality, and expectancy all are high. The
second salesperson would have had some doubts regarding
instrumentality, even though valence and
expectancy are high and may exhibit diminished effort as a
result. The third salesperson would probably not change his
behavior. While valence and expectancy
are high, instrumentality is quite low.
Advantages of Expectancy Theory
Expectancy theory has been well respected as an approach to
understanding motivation in the workplace for several decades.
There are several reasons for its
popularity. First, the theory concentrates on workplace
motivation rather than motives in other circumstances. It applies
to speci�ic employment activities, goals,
and rewards.
Second, using the formulation shown in the previous section or
a similar version, expectancy theory explains circumstances in
which employees will be

motivated as well as situations in which they will not be
motivated. A company that has not given pay raises or any other
incentives for performance over the
past three years should not be surprised by the low levels of
effort exhibited by employees. When no link between effort and
performance can be identi�ied,
motivational levels will decline. Also, managers who fail to
recognize the things employees value may offer rewards that
have no meaning.
Third, the concept that value exists in successfully completing a
task or achieving a goal suggests the role that intrinsic valences
play in motivation. An intrinsic
valence is the reward you give yourself for achieving a goal,
such as a feeling of pride, accomplishment, or self-ef�icacy.
Intrinsic valences often are accompanied
by extrinsic valences, or rewards given by others (Porter &
Lawler, 1968). For example, a musician composes a song he or
she really likes. One self-reward
comes from simply �inishing the song. Then, if a local radio
station hears the song and plays it, a greater sense of
accomplishment results. The valences are
intrinsic in nature. Should the song be picked up by a recording
studio and make money, an extrinsic valence has been awarded
and the intrinsic reward of
knowing other people like the song has been strengthened.
Managers should never underestimate the importance of
intrinsic valences in the workplace.
Fourth, expectancy theory enjoys consistent research support
(Donovan, 2001; Van Eerde & Thierry, 1996). Although some
criticism of the research methods
exists (Mitchell & Daniels, 2003), many managers believe that
the theory offers down-to-earth, concrete methods for seeking to
improve employee effort and
levels of motivation. Applying expectancy theory requires

managers to do three things: (1) work to make sure employees
can complete assigned tasks, (2) link
performance to the reward system, and (3) make sure employees
are rewarded with the things they value.
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Summary and Resources
Chapter Summary
Motivation is what starts, maintains, and stops behaviors.
Content theories examine factors within individuals, notably
needs, that lead to behaviors. Operant
process theories of motivation explore external factors that
increase and decrease behaviors using Skinner's behaviorism
principles. Cognitive process theories
examine the thought processes or mental reasoning processes
that lead to behaviors.
Early motivation theories begin with Maslow's hierarchy of
needs, which notes a progression of needs as follows:
physiological, safety, social, esteem, self-
actualization. Maslow's work applies humanism, the concept
that people are essentially good and that they seek to improve
throughout life. Alderfer's ERG
theory simpli�ies the hierarchy of needs by breaking it down

into existence, relatedness, and growth needs (or physical,
social, and psychological needs). Alderfer
builds on the concept of satisfaction–progress by noting
frustration–regression, in which the movement to a higher-order
need cannot be achieved and results in
frustration and regression to the previous need as a result.
McClelland's need theory examines the roles that achievement,
power, and af�iliation play in a person's behaviors. Herzberg's
two-factor theory notes that
hygiene factors, including wages, hours, working conditions,
supervision, and relationships with peers, increase
dissatisfaction if inadequate, but cannot
motivate, even if adequate. Motivators, including achievements,
recognition, the actual work, responsibility, and the chance to
be promoted, should be built into
the job. Motivators range from no satisfaction to satisfaction in
terms of their impact.
Operant process theories include Skinner's concepts and an
applied program called organizational behavior modi�ication.
OB Mod consists of six steps, including
identifying critical, performance-related behaviors; �inding
ways to count and observe those behaviors; conducting a
functional analysis associated with those
behaviors; designing a program; running the program; and
following up. The program primarily relies on positive
reinforcement and extinction to modify
behaviors. Punishment is reserved for extreme circumstances.
Content process theories include equity theory and expectancy
theory. Equity theory notes that workers create psychological
contracts with employers
regarding inputs and outcomes. Employees also make social
comparisons with other referents, considering personal
inputoutcome ratios to those generated by

others. When the comparisons yield perceptions of fairness,
distributive justice, or equity, behavior is maintained. When the
comparisons result in perceptions
of inequity, a strong motivation force driven by cognitive
dissonance emerges, seeking to rectify the injustice. An
employee can adjust personal inputs and
outcomes, try to in�luence the inputs and outcomes obtained by
referent others, change to a new referent other, rationalize or re-
analyze the comparison, or
leave the �ield. Equity theory explains employee dissatisfaction
with the organization's justice system as well as different levels
of effort and intentions to quit.
Expectancy theory primary components include expectancy,
instrumentality, and valence. Expectancy is the individual's
belief that a task can be completed given
a speci�ic level of effort. Instrumentality is the individual's
belief that a linkage exists between performance and rewards or
outcomes. Valence speci�ies the value
associated with the reward itself (extrinsic valence) as well as
the feelings of accomplishment associated with successfully
completing the task (intrinsic
valence). The strongest motivational force results from high
levels of all three variables. Under any other circumstances the
level of motivation declines. As a
result, the theory explains both worker motivation and the lack
of worker motivation.
CASE STUDY: Accounting for Success
Michelle Jefferson was about to open a tax preparation of�ice
to serve customers in the greater Detroit area. Michelle's goal
was to serve individual clients
on personal income taxes along with small business owners in
the area. She employed two accountants and two clerical
workers in her of�ice.

Michelle had spoken with employees from the major accounting
�irm H&R Block. She also visited with an entrepreneur in the
same type of operation in
Lansing, Michigan. She wanted to be fully prepared for any
challenges that might arise.
The interviews revealed key information. She learned that the
primary problem such �irms encountered were labeled "service
failures," where clients
believed the accounting �irm had not delivered performance as
expected. Three basic causes of service failures were (a) time
pressures, (b) human error,
and (c) relationship problems.
The nature of the taxation calendar explains time pressures. At
key points during the year, forms must be �iled and mailed,
including W-2 forms,
statements of interest earned, statements of dividends paid, and
other �inancial information that would be needed to submit an
individual or company tax
report. These documents were to be mailed by the end of
January each year. Then, the April 15 tax deadline looms.
The bulk of Michelle's clients would be found in two groups.
First, one set of individuals wants to �ile taxes as early as
possible following receipt of all
documents. Many are expecting refunds and want the cash
quickly. Second, another set of clients simply waits until the
last possible minute to seek out
tax service providers. Then, they want taxes prepared rapidly to
meet the deadline. Both groups create time pressures for tax
preparers, and the
customers become easily upset if they are not served �irst and
fast.

Human errors result from improperly recorded numbers, such as
transposed �igures on tax forms. Forms can be mailed to the
wrong address or
mishandled in some other way. The number of actual
miscalculations of taxes had diminished due to tax preparation
software; however, it was still
possible to miss a deduction or expense and cost the client
money.
Relationship problems emerge from the nature of the service.
Tensions result from having to send money to the government,
and often that resentment
transfers to the person who prepared the tax form. Also,
someone who misses a deadline tends to blame the company,
even when the person has created
the problem.
Michelle knew that members of her staff would need to be
technically pro�icient in accounting procedures and
knowledgeable about tax law. They would
need to be gifted at scheduling, could expect to work long hours
during certain parts of the year, must understand that they
would run into more than a
few unhappy people during peak seasons, and still should be
willing to maintain pleasant and professional relationships with
all clients. Finding the right
people and motivating them properly would be the keys to
success in her �ledgling organization.
Case Questions
1. Explain the situation in Michelle's company using concepts
from Herzberg's two-factor theory.
2. Would Luthans's organizational behavior modi�ication
program be appropriate for this company? Explain your answer.
3. What types of equity comparisons would Michelle's

employees likely make? What would happen if they felt
underpaid?
4. Using the components present in expectancy theory, explain
the motivational process that might take place in Michelle's
company.
1/8/2019 Print
Review Questions
Click on each question to see the answer.
De�ine motivation and explain the threecategories of
motivation theories.
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ns/cover/books/Baack.3633.17.1/sections/cover/books/Baack.36
33.17.1/sections/cover/books/Baack.3633
Motivation is what starts, maintains, and stops behaviors.
Content theories examine factors within individuals, notably
needs, that lead to behaviors. Operant
process theories of motivation explore external factors that
increase and decrease behaviors using Skinner's behaviorism
principles. Cognitive process theories
examine the thought processes or mental reasoning processes
that lead to behaviors.
What are the four content theories of motivation?

Maslow's hierarchy of needs, Alderfer's ERG theory,
McClelland's need theory, and Herzberg's two-factor theory
What needs are noted in Maslow's hierarchy
and in Alderfer's ERG model?
Maslow notes physiological, safety, social, esteem, and self-
actualization needs. Alderfer proposes existence, relatedness,
and growth needs.
What threeneeds receive the most attention in
McClelland's need theory?
The needs for achievement, power, and af�iliation.
What hygiene factors and motivators are
identi�ied in Herzberg's two-factor theory?
Hygiene factors include wages, hours, working conditions,
relationships with supervisors, and relationships with peers.
Motivators are achievements,
recognition, the actual work or job, responsibility, and the
chance for advancement and growth.
What are the stepsof an organizational behavior

modi�ication program?
OB Mod consists of �ive steps, including identifying critical,
performance-related behaviors; �inding ways to count and
observe those behaviors; conducting a
functional analysis associated with those behaviors; designing a
program; and following up. The program primarily relies on
positive reinforcement and
extinction to modify behaviors. Punishment is reserved for
extreme circumstances.
Describe ABC and SOBC in an organizational
behavior modi�ication program.
ABC is antecedent, behavior, and consequence. SOBC is
stimulus, organism, behavior, and consequence. Both describe
paths to repeated behaviors, both desired
ones and those not wanted by managers.
Explain the nature of a comparison of a
person with a referent otherin Adams's equity
theory.
These comparisons show "give-get" relationships, or, "what I
give and get versus what my referent other gives and gets," or
Personal outcomes

versus
When an individual perceives inequity, what types of
reactions can take place?
Reactions to perceptions of inequity include
Activity Example
Change personal outcomes Ask for a pay raise.
Change personal inputs Try harder; reduce effort.
In�luence referent other outcome Encourage referent other to
ask for a raise.
In�luence referent other inputs Encourage referent other to try
harder; reduce effort.
Change referent other Look at outcomes and inputs of someone
different.
Rationalize Add elements to the formula, such as time horizon.
Leave the �ield Quit the job.
What are the threemain elements of Vroom's
expectancy theory?

Expectancy theory primary components include expectancy,
instrumentality, and valence. Expectancy is the individual's
belief that a task can be completed given
a speci�ic level of effort. Instrumentality is the individual's
belief that a linkage exists between performance and rewards or
outcomes. Valence speci�ies the value
associated with the reward itself (extrinsic valence) as well as
the feelings of accomplishment associated with successfully
completing the task (intrinsic
valence). The strongest motivational force results from high
levels of all three variables.
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1/8/2019 Print
Analytical Exercises
1. Compare the needs listed in Maslow's hierarchy, Alderfer's

ERG theory, and McClelland's need theory and
those implied by Herzberg's two-factor theory. What common
elements do they contain? What are the
primary differences?
2. In Herzberg's two-factor theory, the terms "motivation" and
"satisfaction" are used interchangeably, which
may not always be the case. Provide speci�ic examples of the
following circumstances in each of three
workplace settings: (1) a manufacturing operation, (2) an
insurance company, and (3) a fast-food restaurant
chain.
Employees are satis�ied and motivated.
Employees are satis�ied but not motivated.
Employees are dissatis�ied and motivated.
Employees are dissatis�ied and unmotivated.
3. In this chapter, Luthans's OB Mod model demonstrated a
method that could be used to improve sales and
reduce inventory shrinkage in an upscale retail store, �irst
using cash prizes and later by holding a contest. If
six months after the contest was over, employees were still
maintaining the three basic performance-related
behaviors (staying on station, greeting customers, arranging
merchandise) at very high levels, without the
presence of extrinsic rewards, what would explain this
outcome?
4. Using the variables outlined in Adams's equity theory,
describe how you believe feelings of inequity would
evolve in the following circumstances:
non-union workers in a manufacturing company comparing
themselves to union workers in another
manufacturing plant in the same town

a Hispanic worker passed over for promotion three times in
favor of a Caucasian worker with less
experience
the glass ceiling in any company
5. In Vroom's expectancy theory model, both intrinsic and
extrinsic valences are related to higher levels of
motivation. Explain the relationships of these motives to the
following:
ful�illing a need
Herzberg's list of hygiene factors and motivators
positive reinforcement
organizational justice
Key Terms
Click on each key term to see the de�inition.
1/8/2019 Print
cognitive process theories
33.17.1/sections/co
Motivation theories that examine the thought processes or
mental reasoning processes that lead to behaviors.
content theories

33.17.1/sections/co
Motivation theories that examine factors within individuals,
notably needs, that lead to behaviors.
distributive justice
33.17.1/sections/co
Concept that people should receive in proportion to what they
give in society.
equity sensitivity
33.17.1/sections/co
The extent to which someone reacts to perceptions of inequity
expectancy
33.17.1/sections/co
The belief that a given level of effort will result in the
successful performance of a task.
extrinsic valence
33.17.1/sections/co
A reward given by others.

hygiene factors
33.17.1/sections/co
A series of factors associated with the work context that are
related to job dissatisfaction.
instrumentality
33.17.1/sections/co
The belief that successful performance of a task will result in a
speci�ic outcome or reward.
intrinsic valence
33.17.1/sections/co
The reward a person gives himself or herself for achieving a
goal, such as a feeling of pride, accomplishment, or self-
ef�icacy.
motivation
33.17.1/sections/co
What starts, maintains, and stops behaviors.
motivators

33.17.1/sections/co
A set of factors that is derived from personal effort and
performance and affects job satisfaction.
need for achievement
33.17.1/sections/co
The degree to which an individual exhibits the drive to excel
and generate accomplishments.
need for af�iliation
33.17.1/sections/co
The need for close interpersonal relationships, including joining
groups and seeking love or friendship.
need for power
33.17.1/sections/co
The drive to make others behave in ways they would not
otherwise choose.
operant process theories
33.17.1/sections/co
Motivation theories that explore external factors that increase
and decrease behaviors.

procedural justice
33.17.1/sections/co
The fairness of processes, such as a performance appraisal or
pay raise system.
process theories
33.17.1/sections/co
Motivation theories that examine the progression of events that
lead to motivated behavior.
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