© 2013 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. CLO 1 Motivation and Reward Management 8-* The Field of Organizational Behavior Organizational Behavior Interdisciplinary field dedicated to better understanding and managing people at work Organizational Behavior Interdisciplinary field dedicated to better understanding and managing people at work * 8-* CLO 1 Compare motivation theories and reward management techniques that influence employee behaviour and job satisfaction at work. 8-* Learning Objectives Theories of Motivation – content theories and process theories Maslow’s Need Hierarchy theory Alderfer’s ERG theory McClelland’s Need theory Herzberg Hygiene theory Adam’s Equity theory Locke’s Goal Setting theory Importance of Rewards LO.1 Contrast Maslow’s, Alderfer’s, and McClelland’s need theories. LO.2 Explain the practical significance of Herzberg’s distinction between motivators and hygiene factors. LO.3 Discuss the role of perceived inequity in employee motivation. LO.4 Explain the differences among distributive, procedural, and interactional justice. LO.5 Describe the practical lessons derived from equity theory. * 8-* Employee Motivation Motivation psychological processes cause the arousal, direction, and persistence of voluntary actions that are goal directed Motivation psychological processes cause the arousal, direction, and persistence of voluntary actions that are goal directed * 8-* Employee Motivation Content theories of motivation focus on identifying internal factors such as instincts, needs, satisfaction, and job characteristics that energize employee motivation. Process theories of motivation focus on explaining the process by which internal factors and cognitions influence employee motivation Content theories of motivation focus on identifying internal factors such as instincts, needs, satisfaction, and job characteristics that energize employee motivation. Process theories of motivation focus on explaining the process by which internal factors and cognitions influence employee motivation * 8-* Overview of Motivation Theories Table 8–1 provides an overview of the various content and process theories discussed in this chapter. As you study these seven theories, remember that they offer different recommendations about how to motivate employees because they are based on different sets of assumptions regarding the causes of motivation. * 8-* Maslow’s Need Hierarchy Theory Motivation is a function of five basic needs – physiological, safety, love, esteem, and self-actualization Human needs emerge in a predictable stair-step fashion Motivation is a function of five basic needs – physiological, safety, love, esteem, and self-actualization Human needs emerge in a predictable stair-step fashion * 8-* Maslow’s Need Hierarchy Maslow proposed that motivation is a function of five .

1. © 2013 The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc.
All rights reserved.
CLO 1
Motivation and Reward Management
8-*
The Field of Organizational Behavior
Organizational Behavior
Interdisciplinary field dedicated to better understanding and
managing people at work
Organizational Behavior
Interdisciplinary field dedicated to better understanding and
managing people at work
*
8-*
CLO 1
Compare motivation theories and reward management
techniques that influence employee behaviour and job
satisfaction at work.

2. 8-*
Learning Objectives
Theories of Motivation – content theories and process theories
Maslow’s Need Hierarchy theory
Alderfer’s ERG theory
McClelland’s Need theory
Herzberg Hygiene theory
Adam’s Equity theory
Locke’s Goal Setting theory
Importance of Rewards
LO.1 Contrast Maslow’s, Alderfer’s, and McClelland’s need
theories.
LO.2 Explain the practical significance of Herzberg’s
distinction between motivators and
hygiene factors.
LO.3 Discuss the role of perceived inequity in employee
motivation.
LO.4 Explain the differences among distributive, procedural,
and interactional justice.
LO.5 Describe the practical lessons derived from equity theory.
*
8-*
Employee Motivation
Motivation
psychological processes cause the arousal, direction, and
persistence of voluntary actions that are goal directed
Motivation
psychological processes cause the arousal, direction, and

3. persistence of voluntary actions that are goal directed
*
8-*
Employee Motivation
Content theories of motivation
focus on identifying internal factors such as instincts, needs,
satisfaction, and job characteristics that energize employee
motivation.
Process theories of motivation
focus on explaining the process by which internal factors and
cognitions influence employee motivation
Content theories of motivation
focus on identifying internal factors such as instincts, needs,
satisfaction, and job characteristics that energize employee
motivation.
Process theories of motivation
focus on explaining the process by which internal factors and
cognitions influence employee motivation
*
8-*
Overview of Motivation Theories
Table 8–1 provides an overview of the various content and
process theories
discussed in this chapter. As you study these seven theories,
remember that they
offer different recommendations about how to motivate

4. employees because they
are based on different sets of assumptions regarding the causes
of motivation.
*
8-*
Maslow’s Need Hierarchy Theory
Motivation is a function of five basic needs – physiological,
safety, love, esteem, and self-actualization
Human needs emerge in a predictable stair-step fashion
Motivation is a function of five basic needs – physiological,
safety, love, esteem, and self-actualization
Human needs emerge in a predictable stair-step fashion
*
8-*
Maslow’s Need Hierarchy
Maslow proposed that motivation is a function of
five basic needs. These needs are
1. Physiological. Most basic need. Entails having enough food,
air, and water to
survive.
2. Safety. Consists of the need to be safe from physical and
psychological harm.
3. Love. The desire to be loved and to love. Contains the needs
for affection and
belonging.
4. Esteem. Need for reputation, prestige, and recognition from

5. others. Also
contains need for self-confidence and strength.
5. Self-actualization. Desire for self-fulfillment—to become the
best one is capable
of becoming.
Maslow said these five needs are arranged in the prepotent
hierarchy shown
in Figure 8–1 .
*
8-*
Alderfer’s ERG Theory
Existence needs (E)
the desire for physiological and materialistic wellbeing;
Relatedness needs (R)
the desire to have meaningful relationships with significant
others
Growth needs (G)
the desire to grow as a human being and to use one’s abilities to
their fullest potential
Existence needs (E)
the desire for physiological and materialistic wellbeing;
Relatedness needs (R)
the desire to have meaningful relationships with significant
others
Growth needs (G)
the desire to grow as a human being and to use one’s abilities to
their fullest potential
Managers should keep in mind that employees may be motivated
to pursue lower-level needs because they are frustrated with a
higher-order need.
People are motivated

6. by different needs at different times in their lives
*
8-*
McClelland’s Need Theory
Need for achievement
Desire to accomplish something difficult.
Need for affiliation
spend more time maintaining social relationships, joining
groups, and wanting to be loved
Need for power
Desire to Influence, coach, teach, or encourage others to
achieve.
Need for achievement
Desire to accomplish something difficult.
Need for affiliation
spend more time maintaining social relationships, joining
groups, and wanting to be loved
Need for power
Desire to Influence, coach, teach, or encourage others to
achieve.
*
8-*
Question?
Rachel has the desire to accomplish something difficult? This
relates to McClelland's need for
Affiliation
Achievement
Power

7. Glory
*
The answer is “B” – achievement. See next slide.
AACSB: Group-individual dynamics
Bloom's Taxonomy: Application Difficulty: Medium
Page: 148
8-*
Herzberg’s Motivator-Hygiene Model
Herzberg hypothesized that motivators
cause a person to move from a state of no satisfaction to
satisfaction (see Figure 8–2 ).
Therefore, Herzberg’s theory predicts managers can motivate
individuals by incorporating
“motivators” into an individual’s job. At best, according to
Herzberg’s interpretation, an
individual will experience no job dissatisfaction when he or she
has no grievances
about hygiene factors (refer to Figure 8–2 ).
*
8-*
Herzberg’s Motivator–Hygiene Theory
Motivators
job characteristics associated with job satisfaction
Hygiene factors
job characteristics associated with job dissatisfaction

8. Motivators
job characteristics associated with job satisfaction
Hygiene factors
job characteristics associated with job dissatisfaction
*
8-*
Negative and Positive Inequity
Negative inequity
Comparison in which another person receives greater outcomes
for similar inputs.
Positive inequity
Comparison in which another person receives lesser outcomes
for similar inputs.
Negative inequity
Comparison in which another person receives greater outcomes
for similar inputs.
Positive inequity
Comparison in which another person receives lesser outcomes
for similar inputs.
*
8-*
Adams’s Equity Theory
of Motivation
Equity theory
model of motivation that explains how people strive for fairness

9. and justice in social exchanges or give-and-take relationships
Equity theory
model of motivation that explains how people strive for fairness
and justice in social exchanges or give-and-take relationships
*
8-*
Question?
At work, if Jamal's outcome to input ratio is greater than that of
Tony's (his relevant co-worker), Jamal will experience
Equity.
No satisfaction.
Positive inequity.
High dissatisfaction.
*
The correct answer is “C” – positive inequity.
AACSB: Group-individual dynamics
Bloom's Taxonomy: Application
Difficulty: Hard Page: 214-5
8-*
Goal Setting theory - How Does Goal Setting Work
Goals direct attention
Goals regulate effort
Goals increase persistence
Goals foster the development and application of task strategies

10. and action plans
Goals direct attention
Goals regulate effort
Goals increase persistence
Goals foster the development and application of task strategies
and action plans
*
8-*
Practical Lessons from Goal-Setting Research
Specific high goals lead to greater performance
Goal specificity – quantifiability of a goal
Feedback enhances the effect of specific, difficult goals
Participative goals, assigned goals, and self-set goals are
equally effective.
Specific high goals lead to greater performance
Goal specificity – quantifiability of a goalFeedback enhances
the effect of specific, difficult goalsParticipative goals,
assigned goals, and self-set goals are equally effective.
*
8-*
Practical Lessons from Goal-Setting Research
Action planning facilitates goal accomplishment.
Action plan outlines the activities or tasks that need to be
accomplished in order to obtain a goal.
Goal commitment and monetary incentives affect goal-setting
outcomes
Goal commitment – extent to which an individual is personally

11. committed to achieving a goal
Action planning facilitates goal accomplishment.
Action plan outlines the activities or tasks that need to be
accomplished in order to obtain a goal.Goal commitment and
monetary incentives affect goal-setting outcomes
Goal commitment – extent to which an individual is personally
committed to achieving a goal
*
8-*
Question?
Julia wants to become a successful heart surgeon. This reflects
Julia's
Expectancy
Perception
Goal
Personality
The correct answer is “C” - goal
AACSB: Group-individual dynamics
Bloom's Taxonomy: Application
Difficulty: Easy Page: 222
*
8-*
Motivation
Are people fundamentally different today than in the past? Why
do workers need to be “buttered up” more today?
What are some different types of incentives employees are

12. given today to “motivate” them? What have you received in
terms of different incentives from your employers?
Why is motivating employees so important - do you think it
makes that big of a difference?
*
Employees today are knowledge workers and new generations
are entering the workforce. This requires employers to provide
different and often creative incentives to be motivated.
Employers can’t simply tell their employees to do it or else…
The labor market will soon be a sellers market favoring the
worker - employers have to retain their employees and keep
them happy…
Employers are offering their employees everything from food
items to barbeque grills to vacation packages as incentive. As
illustrated in the video case, a little personal touch by way of a
picture of the employee on a chocolate is sure to “sweeten them
up”…
Motivation is crucial to the organization’s survival. We are in a
global marketplace and organizational efficiency and
effectiveness is necessary for its survival in these market
conditions. The key to efficiency and effectiveness is the
employee - it is the employee who makes the organization run
and if they are not motivated, the firm will not be as good as it
could be…
8-*
Motivation theories videos
https://www.youtube.com/watch?v=RfDS9r4Tz_g
https://www.youtube.com/watch?v=wBhEXpi1IZE
https://www.youtube.com/watch?v=dIEcsHYNRuA

13. https://www.youtube.com/watch?v=_yj2wsPJEWs
8-*
REWARDS; MOTIVATION; PERFORMANCE
8-*
A General Model of Organizational Reward Systems
Despite the fact that reward systems vary widely, it is possible
to identify and
interrelate some common components. The model in Figure 9–2
focuses on three
important components: (1) types of rewards, (2) distribution
criteria, and (3) desired
outcomes.
*
8-*
Types of Rewards
Extrinsic rewards
financial, material, or social rewards from the environment
Intrinsic rewards
self-granted, psychic rewards
Extrinsic rewards

14. financial, material, or social rewards from the environment
Intrinsic rewards
self-granted, psychic rewards
*
8-*
Question?
Angelo derives pleasure from the task of book writing itself.
He can be described as __________ motivated.
Extrinsically
Financially
Materially
Intrinsically
The correct answer is “D” - intrinsically
AACSB: Group-individual dynamics
Bloom's Taxonomy: Application Difficulty: Hard
Page: 250
*
8-*
Why Do Extrinsic Rewards Too Often Fail to Motivate?
Too much emphasis on monetary rewards.
Rewards lack an “appreciation effect.”
Extensive benefits become entitlements.
Counterproductive behavior is rewarded.
Too long a delay between performance and rewards.
Too many one-size-fits-all rewards.

15. 1. Too much emphasis on monetary rewards.
2. Rewards lack an “appreciation effect.”
3. Extensive benefits become entitlements.
4. Counterproductive behavior is rewarded. (For example, “a
pizza delivery
company focused its rewards on the on-time performance of its
drivers, only
to discover that it was inadvertently rewarding reckless
driving.”) 68
5. Too long a delay between performance and rewards.
6. Too many one-size-fits-all rewards.
7. Use of one-shot rewards with a short-lived motivational
impact.
8. Continued use of demotivating practices such as layoffs,
across-the-board
raises and cuts, and excessive executive compensation.
*
8-*
Pay for Performance
Pay for performance
monetary incentives linking at least some portion of the
paycheck directly to results or accomplishments
Pay for performance
monetary incentives linking at least some portion of the
paycheck directly to results or accomplishments
*
8-*
Getting the Most out of Extrinsic Rewards and Pay for

16. Performance
Tie praise, recognition, and noncash awards to specific results.
Make pay for performance an integral part of the organization’s
basic strategy
Base incentive determinations on objective performance data.
Have all employees actively participate in the development of
the performance-pay formulas
Reward teamwork and cooperation whenever possible
Tie praise, recognition, and noncash awards to specific results.
Make pay for performance an integral part of the organization’s
basic strategy
Base incentive determinations on objective performance data.
Have all employees actively participate in the development,
implementation, and revision of the performance-pay formulas
Reward teamwork and cooperation whenever possible
*
8-*
Video Case: Slacking Off
Are workers from today’s generations exhibiting a “slacker”
attitude at work?
Do you think more is being expected of workers today than
there was in the past?
Are workers today less productive as a result of having
“slacker” attitudes?
Is the nature of work different today than it was in the past?
Could this be part of the issue?
https://www.youtube.com/watch?v=HsskYyiKXR8
*
This questions is almost impossible to universally answer. The

17. answer will be directly tied to one’s view of work as well as
their generation. One has to consider that we have a knowledge
based economy today and there is often times no tangible
product of our work. People from the days of a manufacturing
economy may just not be able to recognize the products of a
knowledge worker as being productivity.
One could argue that more is expected of workers today given
that technology can serve as an electronic leash for some
people. As mentioned in the case, people allow their social life
to bleed into their work life and their work life to bleed into
their home life. In the past, when the worker left work, they
were done for the day.
The question concerning whether or not we are less productive
today is also difficult to answer. This may also be the product
of one’s vantage point (i.e. what generation they belong to).
Work today is very different than it was in the past. As
previously mentioned, we are working in a knowledge based
economy that has different products of “labor” than did a
manufacturing economy. This could certainly be part of the
issue as was previously mentioned.
MGT 2103
Organizational Behavior
Assessment 1 – ESSAY
Week of Assessment – Week 4
Weightage – 15%
Submission on – BB Learn; Safe Assign and hard copy to your
instructor
The assessment is based on Individual Essay based on concepts
related to CLO-1:
Compare motivation theories and reward management
techniques that influence employee behaviour and job

18. satisfaction at work.
Name of the Student
ID Number
Submission Date
In CLO 1, you discussed motivational theories and rewards
systems. Based on your learning and HCT library search, you
are required to write a 750-word essay (typed, double-spaced,
Times New Roman, 12 font size, 1-inch marking, not including
figures, charts or any bibliography). The essay should dig
deeper to reflect on your learning. It must connect to academic
concepts, theories, model, while critically examining your own
understanding. You will be graded based on the rubric provided
at the end of this document.
The scope of the essay is divided into three parts:
1. Analyse any two motivation theories: One content theory and
one process theory. Describe the pros and cons of each theory.
(20 marks)
2. Evaluate different types of rewards. Analyse the model of
organizational reward systems. (20 marks)
3. Applying the motivational theories identified in section 1,
suggest different rewards that organisations can apply to
motivate employees. In this section, you are required to
establish the relationship between rewards and motivation. (10
marks)
Your essay will be divided into three parts:
1. Introduction – Write a short introduction, which includes a
summary of the CLO and the basic concepts of motivation and
rewards. It should be no more than a few sentences.
2. Evaluation and Analysis – This section is where you will
address the three points mentioned in the ‘scope of the essay’.

19. 3. Conclusion – This should simply reiterate your main points
and conclusions. It should be no more than a few sentences
long.
Remember to properly cite your references and provide
bibliography as an appendix, using APA referencing style.
MARKING RUBRIC FOR ESSAY
Criteria
Inadequate (less than 60 marks)
Adequate (60 – 76)
Above Average (77 – 86)
Exemplary (above 86)

20. Organization
The writing lacks logical organisation. It shows some coherence
but ideas lack unity. Serious errors.
Writing is coherent and logically organized. Some points remain
misplaced and stray from the topic. Transitions evident but not
used throughout the essay.
Writing is coherent and logically organized with transitions
used between ideas and paragraphs to create coherence. Overall
unity of ideas is present.
Writing shows a higher degree of attention to logic and
reasoning of points. Unity clearly leads the reader to the
conclusion and stirs thoughts regarding the topic.
Level of content
Shows some thinking but most ideas are underdeveloped and
unoriginal.
Content indicates thinking and reasoning applied with original
thoughts on a few ideas.
Content indicates original thinking and develops ideas with
sufficient and firm evidence.
Content indicates a synthesis of ideas, in-depth analysis and
evidence original thought and support for the topics.
Development
Main points lack detailed development. Ideas are vague with
little evidence of critical thinking.
Main points are present with limited detail and development.
Some critical thinking is present.
Main points well developed with a quality supporting details
and quantity. Critical thinking is weaved into points.
Main points well developed with high quality and quantity
support. Reveals high degree of critical thinking.
Grammar & Mechanics
Spelling, punctuation, and grammatical errors create a
distraction, making reading difficult, fragments, comma splices,
run-ons evident. Errors are frequent.
Most spelling, punctuation, and grammar are correct allowing
reader to progress through the essay. Some error remains.

21. The essay has a few spelling punctuation, and grammatical
errors allowing the reader to follow ideas clearly. Very few
fragments or run-ons.
The essay is free of distracting spelling, punctuation, and
grammatical errors; absent of fragments, comma splices, and
run-ons.
Style
Mostly in elementary form with little or no variety in sentence
structure, diction, rhetorical devices or emphasis.
Approaches bachelors’ level usage of some variety in sentence
patterns, diction, and rhetorical devices.
Attains college level style; tome is appropriate and rhetorical
devices used to enhance content, sentence variety used
effectively.
Shows outstanding style going beyond usual bachelors’ level;
rhetorical devices and tone used effectively; creative use of
sentence structure and coordination.
Format
Fails to follow format, APA referencing and assignment
requirements; incorrect margins, spacing and indentation;
neatness of essay needs attention.
Meets format, APA referencing and assignment requirements;
generally correct margins, spacing, and indentations; the essay
is neat but may have some assembly errors.
Meets format, APA referencing and assignment requirements;
margins, spacing, and indentations are correct; the essay is neat
and correctly assembled.
Meets all format, APA referencing and assignment
requirements; and evidence attention to detail; all margins,
spacing and indentations are correct; the essay is neat and
correctly assembled with a professional look.
Marker’s Comments:
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