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What is motivation?
What can we learn from the needs theories of
  motivation?




         Copyright © 2010 John Wiley & Sons, Inc.   5-2
Motivation
   Individual forces that account for the
   direction, level, and persistence of a
   person’s effort expended at work.
     Direction - an individual’s choice when
      presented with a number of possible
      alternatives.
     Level - the amount of effort a person puts
      forth.
     Persistence - the length of time a person sticks
      with a given action.

          Copyright © 2010 John Wiley & Sons, Inc.   5-3
Types of motivation theories
   Content theories
     Focus on individual needs – that is, physiological or
      psychological deficiencies that we feel a
      compulsion to reduce or eliminate.

   Process theories
     Focus on the thoughts, or cognitive processes, that
      take place within the minds of people and that
      influence their behavior.


           Copyright © 2010 John Wiley & Sons, Inc.   5-4
Motivation Across Cultures
   Motivation theories are largely developed from
    a North American perspective.

   They are subject to cultural limitations and
    contingencies.




          Copyright © 2010 John Wiley & Sons, Inc.   5-5
Maslow’s Hierarchy of Needs Theory
   Identifies five levels of individual needs.

   Assumes that some needs are more
   important than others and must be satisfied
   before the other needs can serve as
   motivators.



          Copyright © 2010 John Wiley & Sons, Inc.   5-6
Copyright © 2010 John Wiley & Sons, Inc.   5-7
Alderfer’s ERG
                              Existence:                   Theory of
                          Desire for                       Motivation
                      physiological and
                      material well-being




       Growth:                              Relatedness:
    Desire for
   continued                                   Desire for
 personal growth                               satisfying
and development.                            interpersonal
                                             relationships




 Copyright © 2010 John Wiley & Sons, Inc.                          5-8
Acquired needs theory
    Need for achievement (nAch).
       The desire to do something better or more efficiently, to solve
        problems, or to master complex tasks.

    Need for affiliation (nAff).
       The desire to establish and maintain friendly and warm
        relations with others.

    Need for power (nPower).
       The desire to control others, to influence their behavior, or to
        be responsible for others.



               Copyright © 2010 John Wiley & Sons, Inc.         5-9
Two-Factor Theory
   Identifies two different factors as primary
   causes of job satisfaction and job
   dissatisfaction.

   Also known as the motivator-hygiene theory.




         Copyright © 2010 John Wiley & Sons, Inc.   5-10
Hygiene factors
   Sources of job dissatisfaction associated with
   job context.
   Job dissatisfaction results when hygiene
   factors are poor.
   Improving the hygiene factors only
   decreases job dissatisfaction.


         Copyright © 2010 John Wiley & Sons, Inc.   5-11
Motivator factors
   Sources of job satisfaction related to job
    content.

   Presence or absence of motivators is the key
    link to satisfaction.




          Copyright © 2010 John Wiley & Sons, Inc.   5-12
• Policies
                            • Salary
Hygiene                     • Supervision
Factors                     • Work conditions
                            • Relationships
                            • Status

                            • Achievement
                            • Recognition
Motivator                   • Meaningful work
 Factors                    • Responsibility
                            • Advancement
                            • Growth


    Copyright © 2010 John Wiley & Sons, Inc.    5-13
6-15
Copyright © 2010 John Wiley & Sons, Inc.
• Reinforcement – immediately
                          rewarding positive behaviors with
                          valued outcomes.
                        • Equity – assuring fairness in type and
                          distribution of rewards.
 The Integrated Model • Content – acknowledging individual
   combines four key      differences in motivational value
       theories of      • Expectancy – creating a linkage
organizational behavior: among ‘effort>performance>reward’.




              Copyright © 2010 John Wiley & Sons, Inc.    6-16
Intrinsic rewards
   Positively valued work outcomes that the
    individual receives directly as a result of task
    performance.

Extrinsic rewards
   Positively valued work outcomes that are given
    to an individual or group by some other person
    or source in the work setting.


                                                                  6-17
                       Copyright © 2010 John Wiley & Sons, Inc.
Pay for performance – the concept that
  monetary rewards are in whole, or in
  part, linked to accomplishments (individual or
  team).
   Programs that provide incentives for employees to
    increase their outputs.
   In the 2008-09 economic recession, HRGURU finds
    that employers are finding that ‘cash is still king’
    when it comes to incentives.

           Copyright © 2010 John Wiley & Sons, Inc.    6-18
Merit pay
   Compensation system that directly ties an
    individual’s salary or wage increase to measures of
    performance accomplishments during a specific
    time period.
   Seeks to create a belief among employees that the
    way to achieve high pay is to perform at high levels.
   Bonus – additional monetary award that meets
    specified benchmarks.


                                                                  6-19
                       Copyright © 2010 John Wiley & Sons, Inc.
Gain sharing
   Gives workers the opportunity to earn more
   by receiving shares of any productivity gains
   that they help to create.




                                                              6-20
                   Copyright © 2010 John Wiley & Sons, Inc.
Profit-sharing plans
   Reward employees based on overall
    organizational profit.
     Criticism: organizational profits are not always
     a direct result of employees’ efforts,




                                                                6-21
                     Copyright © 2010 John Wiley & Sons, Inc.
Skill-based pay
   Rewards people for acquiring and
   developing job relevant skills.




                                                               6-22
                    Copyright © 2010 John Wiley & Sons, Inc.
Stock Options
   Provide employees with an opportunity to
   buy shares of stock at a future date at a
   fixed price.




         Copyright © 2010 John Wiley & Sons, Inc.   6-23
Employee stock ownership plans (ESOPs)
   May give stock to employees, or allow stock
   to be purchased at a price below market
   value.




         Copyright © 2010 John Wiley & Sons, Inc.   6-24

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Motivation theories

  • 1.
  • 2. What is motivation? What can we learn from the needs theories of motivation? Copyright © 2010 John Wiley & Sons, Inc. 5-2
  • 3. Motivation  Individual forces that account for the direction, level, and persistence of a person’s effort expended at work.  Direction - an individual’s choice when presented with a number of possible alternatives.  Level - the amount of effort a person puts forth.  Persistence - the length of time a person sticks with a given action. Copyright © 2010 John Wiley & Sons, Inc. 5-3
  • 4. Types of motivation theories  Content theories  Focus on individual needs – that is, physiological or psychological deficiencies that we feel a compulsion to reduce or eliminate.  Process theories  Focus on the thoughts, or cognitive processes, that take place within the minds of people and that influence their behavior. Copyright © 2010 John Wiley & Sons, Inc. 5-4
  • 5. Motivation Across Cultures  Motivation theories are largely developed from a North American perspective.  They are subject to cultural limitations and contingencies. Copyright © 2010 John Wiley & Sons, Inc. 5-5
  • 6. Maslow’s Hierarchy of Needs Theory  Identifies five levels of individual needs.  Assumes that some needs are more important than others and must be satisfied before the other needs can serve as motivators. Copyright © 2010 John Wiley & Sons, Inc. 5-6
  • 7. Copyright © 2010 John Wiley & Sons, Inc. 5-7
  • 8. Alderfer’s ERG Existence: Theory of Desire for Motivation physiological and material well-being Growth: Relatedness: Desire for continued Desire for personal growth satisfying and development. interpersonal relationships Copyright © 2010 John Wiley & Sons, Inc. 5-8
  • 9. Acquired needs theory  Need for achievement (nAch).  The desire to do something better or more efficiently, to solve problems, or to master complex tasks.  Need for affiliation (nAff).  The desire to establish and maintain friendly and warm relations with others.  Need for power (nPower).  The desire to control others, to influence their behavior, or to be responsible for others. Copyright © 2010 John Wiley & Sons, Inc. 5-9
  • 10. Two-Factor Theory  Identifies two different factors as primary causes of job satisfaction and job dissatisfaction.  Also known as the motivator-hygiene theory. Copyright © 2010 John Wiley & Sons, Inc. 5-10
  • 11. Hygiene factors  Sources of job dissatisfaction associated with job context.  Job dissatisfaction results when hygiene factors are poor.  Improving the hygiene factors only decreases job dissatisfaction. Copyright © 2010 John Wiley & Sons, Inc. 5-11
  • 12. Motivator factors  Sources of job satisfaction related to job content.  Presence or absence of motivators is the key link to satisfaction. Copyright © 2010 John Wiley & Sons, Inc. 5-12
  • 13. • Policies • Salary Hygiene • Supervision Factors • Work conditions • Relationships • Status • Achievement • Recognition Motivator • Meaningful work Factors • Responsibility • Advancement • Growth Copyright © 2010 John Wiley & Sons, Inc. 5-13
  • 14.
  • 15. 6-15 Copyright © 2010 John Wiley & Sons, Inc.
  • 16. • Reinforcement – immediately rewarding positive behaviors with valued outcomes. • Equity – assuring fairness in type and distribution of rewards. The Integrated Model • Content – acknowledging individual combines four key differences in motivational value theories of • Expectancy – creating a linkage organizational behavior: among ‘effort>performance>reward’. Copyright © 2010 John Wiley & Sons, Inc. 6-16
  • 17. Intrinsic rewards  Positively valued work outcomes that the individual receives directly as a result of task performance. Extrinsic rewards  Positively valued work outcomes that are given to an individual or group by some other person or source in the work setting. 6-17 Copyright © 2010 John Wiley & Sons, Inc.
  • 18. Pay for performance – the concept that monetary rewards are in whole, or in part, linked to accomplishments (individual or team).  Programs that provide incentives for employees to increase their outputs.  In the 2008-09 economic recession, HRGURU finds that employers are finding that ‘cash is still king’ when it comes to incentives. Copyright © 2010 John Wiley & Sons, Inc. 6-18
  • 19. Merit pay  Compensation system that directly ties an individual’s salary or wage increase to measures of performance accomplishments during a specific time period.  Seeks to create a belief among employees that the way to achieve high pay is to perform at high levels.  Bonus – additional monetary award that meets specified benchmarks. 6-19 Copyright © 2010 John Wiley & Sons, Inc.
  • 20. Gain sharing  Gives workers the opportunity to earn more by receiving shares of any productivity gains that they help to create. 6-20 Copyright © 2010 John Wiley & Sons, Inc.
  • 21. Profit-sharing plans  Reward employees based on overall organizational profit.  Criticism: organizational profits are not always a direct result of employees’ efforts, 6-21 Copyright © 2010 John Wiley & Sons, Inc.
  • 22. Skill-based pay  Rewards people for acquiring and developing job relevant skills. 6-22 Copyright © 2010 John Wiley & Sons, Inc.
  • 23. Stock Options  Provide employees with an opportunity to buy shares of stock at a future date at a fixed price. Copyright © 2010 John Wiley & Sons, Inc. 6-23
  • 24. Employee stock ownership plans (ESOPs)  May give stock to employees, or allow stock to be purchased at a price below market value. Copyright © 2010 John Wiley & Sons, Inc. 6-24

Editor's Notes

  1. ERG theory helps to explain why a lower-level need can become activated when a higher-level need cannot be satisfied. E.g., if an individual is frustrated in trying to move forward in their growth needs (career advancement), relatedness needs can become key motivations.
  2. The essence of performance-contingent pay is that you earn more when you produce more, and earn less when you produce less. However, a recent research study has shown that only 48% of managers agreed that this was the reality.
  3. Owning stock options can be financially motivating to employees and serve as an incentive to contribute to the organization’s success.
  4. The incentive value for the employee who has a financial stake in the company is motivating. Considering the expectancy theory of motivation, there is a strong effort>performance>reward linkage.