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Motivation Theory

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This presentation is useful for MBA students , HR professionals. It includes all Motivational Theories required to be known,

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Motivation Theory

  1. 1. By Pratibha Mishra
  2. 2. What is Motivation
  3. 3. What is MotivationIt is a process which begins with a physiologicalor psychological need or deficiency whichtriggers a behavior or a desire that is aimed at agoal or an incentive.FredLuthansneeds drives incentives
  4. 4. MotivationNeedHungry
  5. 5. • MOTIVATION: theprocesses that account foran individual’s intensity,direction, and persistenceof effort towards attaining agoal
  6. 6. Components of MotivationDirection relates to what an individualchooses to do when presented with anumber of alternativesConti…
  7. 7. Components of MotivationIntensity refers to the strength ofresponse once the alternative is chosenConti…
  8. 8. Components of MotivationPersistence refers to the staying power ofbehavior or how long a person willcontinue to devote effort
  9. 9. • Once upon a time there were 2 brothers. One wasa drug addict and a drunk who frequently beat uphis family. The other one was a very successfulbusinessman who was respected in society andhad a wonderful family. Some people wanted tofind out why two brothers from the same parents,brought up in the same environment, could be sodifferent. The first one was asked, "How come youdo what you do? You are a drug addict, a drunk,and you beat your family. What motivates you?"He said, "My father." They asked, "What aboutyour father?" The reply was, "My father was adrug addict, a drunk and he beat his family. Whatdo you expect me to be? That is what I am.“ Theywent to the brother who was doing everythingright and asked him the same question.
  10. 10. • "How come you are doing everythingright? What is your source ofmotivation?" And guess what hesaid? "My father. When I was a littleboy, I used to see my dad drunk anddoing all the wrong things. I made upmy mind that that is not what I wantedto be." Both were deriving theirstrength and motivation from thesame source, but one was using itpositively and the other negatively.
  11. 11. Motivation TheoriesContent MotivationTheories• Theories that focuson factors within aperson that:– Energize behavior– Direct behavior– Sustain behavior– Stop behaviorContent MotivationTheories• Theories that focuson factors within aperson that:– Energize behavior– Direct behavior– Sustain behavior– Stop behaviorProcess MotivationTheories• Theories thatdescribe and analyzehow behavior is:– Energized– Directed– Sustained– StoppedProcess MotivationTheories• Theories thatdescribe and analyzehow behavior is:– Energized– Directed– Sustained– Stopped
  12. 12. NEED THEORIES OF MOTIVATIONMotivation theories thatspecify the kinds of needspeople have and theconditions under whichthey will be motivated tosatisfy these needs in away that contributes toperformance.
  13. 13. Basic idea:Individuals have needs that, when unsatisfied,will result in motivation
  14. 14. Needs Theories of Motivation• Maslow’s hierarchy of needs• Herzberg’s two factor theory (motivation-hygienetheory)• Alderfer’s ERG theory• McClelland’s theory of needs
  15. 15. MASLOW’S HIERARCHY OF NEEDSPHYSIOLOGICALSAFETYBELONGINGNESSESTEEMSELF-ACTUALIZATION
  16. 16. Maslow’s Hierarchy of Needs:• Physiological :– Food , clothing, Shelter and other bodilyneeds.• Safety:– includes security and protection from physicaland emotional harm• Social:– Affection, belongingness , acceptance ,Friendship etc ..Conti…
  17. 17. • Esteem– includes internal esteem factors such as self-respect, autonomy, and achievement; andexternal esteem factors such as status,recognition, and attention• Self-actualization– the drive to become what one is capable ofbecoming; includes growth, achieving one’spotential, and self-fulfillment
  18. 18. What the Organization Can DoWhat the Organization Can Do1. Physiological Needs2. Safety Needs3. Belongingness Needs4. Esteem Needs5. Self-actualizationneedsOffer adequateventilation, heat,water, base payConti…
  19. 19. 1. Physiological Needs2. Safety Needs3. Belongingness Needs4. Esteem Needs5. Self-actualizationneedsOffer safe workingconditions, jobsecurity, health andretirement benefitsConti…What the Organization Can Do …What the Organization Can Do …
  20. 20. 1. Physiological Needs2. Safety Needs3. Belongingness Needs4. Esteem Needs5. Self-actualizationneedsOffer interaction withothers, participation inworkgroup, goodrelations withsupervisorsConti…What the Organization Can Do …What the Organization Can Do …
  21. 21. 1. Physiological Needs2. Safety Needs3. Belongingness Needs4. Esteem Needs5. Self-actualizationneedsOffer recognition,status, merit pay.Conti…What the Organization Can Do …What the Organization Can Do …
  22. 22. 1. Physiological Needs2. Safety Needs3. Belongingness Needs4. Esteem Needs5. Self-actualizationneedsOffer training,creativity,promotions,employee controlover jobsWhat the Organization Can DoWhat the Organization Can Do
  23. 23. – Effective managers can anticipate emergingneeds based on individual need profiles andprovide opportunities for fulfillment.– The esteem level of needs satisfied by jobs andrecognition provides managers with the greatestopportunity to motivate better performance.Relevance of Maslow’s Theory forManagers
  24. 24. Organizational RelevanceFinancial Incentives• Stock Option• Profit Sharing• Raise• BonusEmployee Recognition• Celebrate Employee ofthe month• Display Name on noticeboard• Distribute badge fordifferent recognitions(doesn’t cost Much )
  25. 25. Herzberg Two Factor Theory
  26. 26. Contrasting Views ofSatisfaction-DissatisfactionSatisfaction DissatisfactionTraditional ViewHerzberg’s ViewSatisfaction No Satisfaction No Dissatisfaction DissatisfactionMotivators Hygiene Factors
  27. 27. Herzberg’s Motivation-Hygiene Theory• Hygiene factorsnecessary, but not sufficient, for healthyadjustment– extrinsic factors; context of work• company policy and administration• unhappy relationship with employees supervisor• poor interpersonal relations with ones peers• poor working conditions
  28. 28. Motivators• The sources of satisfactionIntrinsic factors; content of work• achievement• recognition• challenging, varied or interesting work• responsibility• advancement
  29. 29. – Satisfaction is not the opposite of dissatisfaction.– Meaningful, interesting, and challenging (enriched)work is needed to satisfy and motivate employees.Implications of Herzberg’sTheory
  30. 30. Problems with Herzberg’s theory• It ignores situational variables.• No overall measure ofsatisfaction was utilized.• The reliability of Herzbergmethodology was questioned.
  31. 31. Alderfer’s ERG Theory
  32. 32. Alderfer’s ERG Theory• Existence– concerned with providing basic materialexistence requirements• Relatedness– desire for maintaining important interpersonalrelationships• Growth– intrinsic desire for personal development
  33. 33. Cartoon
  34. 34. McClellands THEORY OFNEEDSDavid McClelland
  35. 35. McClellands THEORY OF NEEDSA need theory of motivation that outlines theconditions under which certain needs result inparticular patterns of motivation.
  36. 36. McClellands THEORY OF NEEDSPerformanceResultsNeed forAchievementNeed forAffiliationNeed For PowerHigher theneedsMust win at any cost.Must be on top andreceive credit.Demands blindloyalty andharmony, Doesnot toleratedisagreementDesires control oneveryone and oneverything.Exaggerates overposition andresourcesLower theneedsFears failure , AvoidresponsibilitiesRemains aloof ,Maintains socialdistanceMinimizes ownsposition andpower.
  37. 37. McClelland’s Theory of Needs• Need for Achievement– The drive to excel, to achieve in relation to aset of standards, to strive to succeed• Need for Affiliation– The desire for friendly and close interpersonalrelationships• Need for Power– The need to make others behave in a waythat they would not have behaved otherwise
  38. 38. A Comparison of the Content TheoriesMaslowMaslow(need hierarchy)(need hierarchy)Self-actualizationSelf-actualizationEsteemEsteemBelongingness,Belongingness,social, and lovesocial, and loveSafety and securitySafety and securityPhysiologicalPhysiologicalMaslowMaslow(need hierarchy)(need hierarchy)Self-actualizationSelf-actualizationEsteemEsteemBelongingness,Belongingness,social, and lovesocial, and loveSafety and securitySafety and securityPhysiologicalPhysiologicalHerzbergHerzberg(two-factor theory)(two-factor theory)The work itselfThe work itself•ResponsibilityResponsibility•AdvancementAdvancement•GrowthGrowthAchievementAchievementRecognitionRecognitionQuality of inter-Quality of inter-personal relationspersonal relationsamong peers, withamong peers, withsupervisors, withsupervisors, withsubordinatessubordinatesJob securityJob securityWorking conditionsWorking conditionsSalarySalaryHerzbergHerzberg(two-factor theory)(two-factor theory)The work itselfThe work itself•ResponsibilityResponsibility•AdvancementAdvancement•GrowthGrowthAchievementAchievementRecognitionRecognitionQuality of inter-Quality of inter-personal relationspersonal relationsamong peers, withamong peers, withsupervisors, withsupervisors, withsubordinatessubordinatesJob securityJob securityWorking conditionsWorking conditionsSalarySalaryAlderferAlderferGrowthGrowthRelatednessRelatednessExistenceExistenceAlderferAlderferGrowthGrowthRelatednessRelatednessExistenceExistenceMcClellandMcClellandNeed forNeed forachievementachievementNeed forNeed forpowerpowerNeed forNeed foraffiliationaffiliationMcClellandMcClellandNeed forNeed forachievementachievementNeed forNeed forpowerpowerNeed forNeed foraffiliationaffiliationMotivatorsMotivatorsHygieneHygieneconditionsconditionsHigherHigherorderorderneedsneedsBasicBasicneedsneeds
  39. 39. MANAGERIAL IMPLICATIONS OFNEED THEORIES• Appreciate diversity – Managers must be adeptat evaluating needs of individual employees andoffering incentives or goals that correspond to theirown needs.• Appreciate intrinsic motivation– Survival in the organization requires creative andinnovative behaviour by organizational members.
  40. 40. – Each of the theories is conceptually flawed andculturally bound to the individualism of Westernculture.– The theories do not provide leaders with a clear,unambiguous means of predicting specific followerbehavior to satisfy a particular need.– Empirical findings often contradict theirassumptions that the same needs motivate allindividuals, regardless of their sex or ethnicity.Limitations of Content Theories
  41. 41. PROCESS THEORIESMotivation theories that specify the details ofhow motivation occurs.
  42. 42. Process Theories ofMotivation– Goal-setting theory– Equity theory– Expectancy theory
  43. 43. Goal setting: the process of improvingperformance with objectives, deadlines, or qualitystandards.• A General Goal-Setting Model– Properly conceived goals trigger a motivationalprocess that improves performance.Goal-Setting Theory
  44. 44. – Challenging goals produce higher performancethan less challenging goals.– Specific challenging goals produce higherperformance than no goals or vague or generalgoals such as “Do your best.”– Feedback on goal attainment combined withgoal setting will produce higher performance– Follower participation in goal setting produceshigher performance.Goal-Setting Theory’sAssumptions
  45. 45. A Model of How Goals Can ImprovePerformance
  46. 46. • Personal Ownership of Challenging Goals– Characteristics of effective goals:• Specificity makes goals measurable.• Difficulty makes goals challenging.• Participation gives personal ownership of the goal.• How Do Goals Actually Motivate?– Goals are exercises in selective perception.– Goals encourage effort to achieve somethingspecific.– Goals encourage persistent effort.– Goals foster creation of strategies and action plans.
  47. 47. MANAGERIAL IMPLICATIONS OFGOAL SETTING THEORY• Set specific and challenging goals.• Provide ongoing feedback so that individualscan compare their performance with the goal.
  48. 48. OutcomesInputsEquity TheoryA theory thatindividuals comparetheir job input andoutcomes with thoseof others & thenrespond to eliminateany inequities.
  49. 49. Terms• Person• Comparison other• Inputs (effort, experience, education)• Outputs (salary raises, salary level,recognition)
  50. 50. The four referent comparisons:• Self-inside: an employee’s experiences ina different position inside his currentsituation• Self-outside an employee’s experienceson a position outside his currentorganization• Other-inside another individual inside theemployee’s organization• Other-outside another individual outsidethe employee’s organization
  51. 51. Motivation toMaintainOutcome-to-Input RatioSatisfactionConsequences of EquityPerceivedEquity
  52. 52. Consequences of InequityPerceivedInequityDissatisfactionUnder-rewardMotivationto ChangeTensionAngerOver-rewardTensionGuiltMotivationto Change
  53. 53. Alternatives to Restore Equity• Change their Inputs• Change their Outcomes• Distort their Perception• Distort perceptions of others• Changing the reference person• Leave the field
  54. 54. MANAGERIAL IMPLICATIONS OFEQUITY THEORY• Perceived underpayment will have a varietyof negative motivational consequences forthe organization.• Attempting to solve organizational problemsthrough overpayment might not have theintended motivational effect.
  55. 55. Expectancy TheoryThe strengths of the tendency to act in acertain way depends on the strengths of anexpectation that the act will be followed bya given outcome to the individual.
  56. 56. Prentice Hall, 2001 Chapter 6 61Expectancy Theory(Vroom)3. Rewards-Personal goals relationship = Valence1. Effort-Performance relationship = Expectancy2. Performance-Rewards relationship = InstrumentalityIndividualEffortIndividualPerformancePersonalGoalsOrganizationalRewards1 23
  57. 57. ComponentsIf I try, will Isucceed?If I succeed,what are theconsequences?How do I feelabout theconsequences?ExpectancyInstrumentalityValenceExpectancy Theory
  58. 58. A ModelExpectancyInstrumentalityValenceForce(Effort orMotivationLevel)
  59. 59. Motivation in Organizations• In Order to Motivate Employees– Recognize individual differences– Use goals and feedback– Allow employees to participate in decisionsthat affect them– Link rewards to performance– Check the system for equity
  60. 60. Application of Motivation InOrganizations• Job Characteristic Model• Alternative Work Arrangements• Employee Involvement• Rewarding Employees
  61. 61. Job Characteristics Model• Job Characteristics Model: Identifies five jobcharacteristics and their relationship topersonal and work outcomes.Characteristics:1. Skill variety2. Task identity3. Task significance4. Autonomy5. Feedback
  62. 62. Guidelines for Enriching a Job
  63. 63. Alternative Work Arrangements• Flextime• Job Sharing• Telecommuting
  64. 64. Employee Involvement Program:• Employee Involvement Program: Aparticipative process that uses the entirecapacity of employees and is designed toencourage increased commitment to theorganization’s success.For example:• Quality Circle• Representative Participation• Board Representative
  65. 65. Rewarding Employees• Piece Rate Pay Plans: Workers are paida fixed sum for each unit of productioncompleted.• Profit Sharing Plans: Organization-wideprograms that distribute compensationbased on some established formuladesigned around a company’s profitability
  66. 66. • Gain Sharing: An incentive plan in whichimprovements in group productivitydetermine the total amount of money thatis allocated.• Employee Stock Ownership Plans(ESOPs): Company-established benefitplans in which employees acquire stock aspart of their benefits.

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