Motivation Theories

© Operational Excellence Consulting. All rights reserved.
This presentation is a compilation of PowerPoint descriptions and
diagrams used to convey 8 of the most popular motivation theories
and models.
Motivation Theories
Descriptions and Diagrams of Motivation
Theories & Models

© Operational Excellence Consulting. All rights reserved. 4
Contents
• Introduction to Motivation
Theories
• Content Theories
Maslow’s Hierarchy of Needs
Alderfer’s ERG Theory
Herzberg’s Two-Factor Theory
McClelland’s Acquired Needs
Theory
• Process Theories
Adams’ Equity Theory
Vroom’s Expectancy Theory
Locke’s Goal-Setting Theory
• Reinforcement Theory
Skinner’s Reinforcement
Theory
• Challenges of Motivation in the
New Workplace
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Basic concepts of motivation
• Reward - a work outcome of positive value to the
individual
• Extrinsic rewards - valued outcomes given to someone
by another person
• Intrinsic rewards - valued outcomes that occur naturally
as a person works on a task

Types of motivation theories
• Content theories
Focus on profiling the needs that people seek to fulfill.
• Process theories
Focus on people’s thought or cognitive processes.
• Reinforcement theories
Emphasize controlling behavior by manipulating its
consequences.

What are the different types of individual needs?
• Needs
Unfulfilled physiological and psychological desires of an
individual.
Explain workplace behavior and attitudes.
Create tensions that influence attitudes and behavior.
Good managers and leaders facilitate employee need
satisfaction.

Maslow’s hierarchy of needs theory
• Developed by Abraham Maslow
• Lower-order and higher-order needs affect workplace
behavior and attitudes
• Lower-order needs:
Physiological, safety, and social needs
Desires for physical and social well being
• Higher-order needs:
Esteem and self-actualization needs
Desire for psychological growth and development

Opportunities for satisfaction in Maslow’s hierarchy of
human needs
Self-actualization needs
What satisfies higher order needs?
Esteem needs
Social needs
Safety needs
Physiological needs
What satisfies lower order needs?
Creative and challenging work
Participation in decision making
Job flexibility and autonomy
Responsibility of an important job
Promotion to higher status job
Praise and recognition from boss
Friendly coworkers
Interaction with customers
Pleasant supervisor
Safe working conditions
Job security
Base compensation and benefits
Rest and refreshment breaks
Physical comfort on the job
Reasonable work hours

Alderfer’s ERG Theory
• Any/all needs can influence behavior at one time
• Frustration-regression principle
An already satisfied lower-level need becomes reactivated when
a higher-level need is frustrated.

Herzberg’s two-factor theory
• Developed by Frederick Herzberg.
• Herzberg’s research led to the conclusion that employee
satisfaction and dissatisfaction stem from different
sources.
Dissatisfaction results from the absence of hygiene factors
In contrast, satisfaction results from the presence of motivating
factors

Herzberg’s two-factor theory
Improving the
motivator factors
increases
job satisfaction
Improving the
hygiene factors
decreases
job dissatisfaction
Herzberg’s
Two-Factor
Principles
Job Dissatisfaction Job Satisfaction
Influenced by
Hygiene
Factors
_________________
Working conditions
Coworker relations
Policies and rules
Supervisor quality
Base wage, salary
Influenced by
Motivator
Factors
_________________
Achievement
Recognition
Responsibility
Work itself
Advancement
Personal growth

McClelland’s acquired needs theory
• Need for Achievement (nAch)
Desire to do something better or more efficiently, to solve
problems, or to master complex tasks.
• People high in (nAch) prefer work that:
Involves individual responsibility for results.
Involves achievable but challenging goals.
Provides feedback on performance.

Work preferences of persons high in need for Achievement,
Affiliation and Power
Individual Need Work Preferences Job Example
High need for
Achievement
Individual responsibility
Challenging but achievable
goals
Feedback on performance
Field sales person with
challenging quota and
opportunity to earn
individual bonus
High need for
Power
Control over other persons
Attention
Recognition
Formal position of
supervisory responsibility
Appointment as head of
special task force or
committee
High need for
Affiliation
Interpersonal relationships
Opportunities to
communicate
Customer service
representative
Member of work unit
subject to group wage
bonus plan

Process theories and individual motivation
• Process theories
Focus on the thought processes through which people choose
among alternative courses of action.
Individual preferences.
Available rewards.
Possible work outcomes.
• Types of process theories
Equity theory.
Expectancy theory.
Goal-setting theory.

Equity theory and the role of social comparison
Personal rewards
vis-à-vis
personal inputs
Others’ rewards
vis-à-vis
others’ inputs
are compared to
with the result
Perceived Equity
_________________________
The individual is satisfied and
does not change behavior
Perceived Inequity
_________________________
The individual is discomfort and
acts to eliminate the inequity

Equity theory
• Managerial implications of equity theory
Underpaid people experience anger.
Overpaid people experience guilt.
Perceptions of rewards determine motivational outcomes.
Negative consequences of equity comparisons should be
minimized, if not eliminated.
Do not underestimate the impact of pay as a source of equity
controversies in the workplace.
− Gender equity
− Comparable worth

Expectancy theory
• Developed by Victor Vroom
• Key expectancy theory variables:
Expectancy — belief that working hard will result in desired level
of performance.
Instrumentality — belief that successful performance will be
followed by rewards.
Valence — value a person assigns to rewards and other work
related outcomes.

Managerial implications of expectancy theory
• To maximize expectancy, managers should:
Select workers with ability.
Train workers to use ability.
Support work efforts.
Clarify performance goals.

Goal-setting
Theory
Process Theories

Goal-setting theory
• Participation in goal setting…
Unlocks the motivational potential of goal setting.
Management by objectives (MBO) promotes participation.
When participation is not possible, workers will respond positively
if supervisory trust and support exist.

Reinforcement theory
• Operant conditioning strategies:
Positive reinforcement
− Increases the frequency of a behavior through the contingent
presentation of a pleasant consequence.
Negative reinforcement
− Increases the frequency of a behavior through the contingent removal
of an unpleasant consequence.
Punishment
− Decreases the frequency of a behavior through the contingent
presentation of an unpleasant consequence.
Extinction
− Decreases the frequency of a behavior through the contingent
removal of an pleasant consequence.

Applying reinforcement strategies: case of total quality
management
High-quality
production
Manager’s
Objective
Praise employee;
recommend pay
increase
Stop
complaints
Withhold praise
and rewards
Reprimand
employee
Positive
reinforcement
Negative
reinforcement
Extinction
Punishment
Type of
Reinforcement
Reinforcement
Strategy
Individual
Behavior
Meets production goals with
zero defects
Meets production goals but
with high percentage defects

Ethical issues with reinforcement usage
• Is improved performance really due to reinforcement?
• Is the use of reinforcement demeaning and
dehumanizing?
• Will managers abuse their power by exerting external
control over behavior?
• How can we ensure that the manipulation of
consequences is done in a positive and constructive
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Challenges of motivation in the new workplace
• Incentive compensation systems:
Skill-based pay
− Links pay to the number of job-relevant skills an employee masters.
Bonus pay plans
− One-time or lump-sum payments based on the accomplishment of
specific performance targets or some extraordinary contribution.
Profit-sharing plans
− Some or all employees receive a proportion of net profits earned by
the organization.

Empowering people to meet higher needs
• Information
Employees receive information about company performance
• Knowledge
Employees have knowledge and skills to contribute to company
goals
• Power
Employees have the power to make substantive decisions
• Rewards
Employees are rewarded based on the company performance

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