Motivation theories


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Motivation theories

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  • 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.
  • 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.
  • Owning stock options can be financially motivating to employees and serve as an incentive to contribute to the organization’s success.
  • 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.
  • Motivation theories

    1. 1. What is motivation?What can we learn from the needs theories of motivation? Copyright © 2010 John Wiley & Sons, Inc. 5-2
    2. 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
    3. 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
    4. 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
    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
    6. 6. Copyright © 2010 John Wiley & Sons, Inc. 5-7
    7. 7. Alderfer’s ERG Existence: Theory of Desire for Motivation physiological and material well-being Growth: Relatedness: Desire for continued Desire for personal growth satisfyingand development. interpersonal relationships Copyright © 2010 John Wiley & Sons, Inc. 5-8
    8. 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
    9. 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
    10. 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
    11. 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
    12. 12. • Policies • SalaryHygiene • SupervisionFactors • Work conditions • Relationships • Status • Achievement • RecognitionMotivator • Meaningful work Factors • Responsibility • Advancement • Growth Copyright © 2010 John Wiley & Sons, Inc. 5-13
    13. 13. 6-15Copyright © 2010 John Wiley & Sons, Inc.
    14. 14. • 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 linkageorganizational behavior: among ‘effort>performance>reward’. Copyright © 2010 John Wiley & Sons, Inc. 6-16
    15. 15. 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.
    16. 16. 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
    17. 17. 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.
    18. 18. 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.
    19. 19. 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.
    20. 20. Skill-based pay  Rewards people for acquiring and developing job relevant skills. 6-22 Copyright © 2010 John Wiley & Sons, Inc.
    21. 21. 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
    22. 22. 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