O.B. CHAPTER 7
Department of Public Health
• MOTIVATION : The processes that account for
an individual’s intensity, direction, and
persistence of effort towards attaining a goal.
• 1. Intensity describes how hard a person
tries. Needs to be in the right direction.
• 2. Direction needs to be right.
• 3. Persistence measures how long a person
can maintain effort.
• EARLY THEORIES OF MOTIVATION :
• 4 theories, now questionable in terms of validity, but as
managers you need to know them for 2 reasons :
• 1. They are the foundation from which contemporary
theories have grown.
• 2. Practicing managers still regularly use them and their
terminology in explaining employee motivation.
• 1. ABRAHAM MASLOW’S HIERARCHY OF NEEDS THEORY
• 2. THEORY X AND THEORY Y
• 3. TWO FACTOR THEORY
• 4. McCLELLAND’S THEORY OF NEEDS
• 1. ABRAHAM MASLOW’S HIERARCHY OF NEEDS THEORY
• The best known theory
• Hierarchy of 5 needs:
• 1.Physiological : Hunger, thirst, shelter, sex.
• 2.Safety : Physical and emotional safety.
• 3.Social : Affection, belongingness, acceptance, friendship
• 4.Esteem :
• Internal factors – Self respect, autonomy, achievement
External factors – Status, recognition, attention
• 5.Self-actualisation : Drive to become what we are capable of becoming.
Includes growth, achieving our potential, and self fulfillment.
• The first 2 are LOWER ORDER NEEDS. The next 3 are higher order needs.
• Lower order needs predominantly satisfied externally(pay, contracts,
• Higher order needs satisfied internally (within the person)
• A substantially satisfied need no longer motivates.
• Thus as each of these needs becomes substantially
satisfied, the next one becomes dominant.
• So as managers, if you need to motivate someone, you
need to understand what level of the hierarchy that
person is currently on and focus on satisfying the needs
at or above that level.
• Research does not validate the theory.
• But old theories die hard.
• 2. Theory X and Theory Y – Douglas McGregor
concluded that managers tend to mould their behavior
towards employees according to certain assumptions.
• Under Theory X, managers believe that employees
inherently dislike work and must therefore be directed
or coerced into performing it.
• Under Theory Y, managers believe employees can view
work as being as natural as rest or play, and therefore
the average person can learn to accept, and even seek
• Unfortunately, there is no evidence.
• 3. Two-Factor theory ( Motivation-hygiene theory ) – Frederick Herzberg.
• He asked - “What do people want from their jobs?”.
• He asked people to describe, in detail, situations in which they felt
exceptionally good or bad about their jobs.
• Respondents who felt good about their work tended to attribute it to
(advancement, recognition, responsibility, achievement) which they
attributed to themselves.
• Dissatisfied respondents tended to cite EXTRINSIC FACTORS ( HYGIENE
FACTORS ), such as supervision, pay, company policies, working
• So, Herzburg said - The opposite of “satisfaction”
is “no satisfaction”, and the opposite of
“dissatisfaction” is “no dissatisaction”.
• Managers who seek to eliminate factors that can
create job dissatisfaction may bring about peace
but not necessarily motivation.
• Not well supported in literature.
• As managers, “If you want to build a ship, make
the men yearn for the sea”
• 4. McClelland’s Theory of Needs : A theory that states that there are 3
important needs that help explain motivation :
• Need for Achievement is the drive to excel
• Need for Power is the need to make others behave in a manner in which
they would not have behaved otherwise.
• Need for Affiliation is the desire for friendly and close interpersonal
• Illustration: You have a ball and 5 targets. Each target is farther away than
• Target A is a cinch. Rs.20
• Target B – 80% chance – Rs.40
• Target C – 50% chance – Rs.80
• Target D – 20% chance – Rs.160
• Target E – 1% chance - Rs.320
• Which one would you go for?
• High achievers perform best when they
perceive their probability of success as 50%.
• They dislike high odds...WHY?
• Because they get no achievement satisfaction
from success that comes from pure chance.
• They dislike low odds...WHY?
• Because then there is no challenge to their
• 1. Self-determination theory.
• A theory of motivation that is concerned with the
beneficial effects of intrinsic motivation and the
harmful effects of extrinsic motivation.
• Eg: Maria worked 15 hours a week at the Humane
society as a volunteer without pay for 3 months. Then
she was hired full time for rs.50 an hour. But she is not
finding it to be as much fun as earlier. Why?
• People prefer to feel they have control over their
actions, so anything that makes a previously enjoyed
task feel more like an obligation than a freely chosen
activity will undermine motivation.
• 2. Cognitive evaluation theory.
• A version of self - determination theory which holds that
allocating extrinsic rewards for behaviour that had been
previously intrinsically rewarding tends to decrease the
overall motivation if the rewards are seen as controlling.
• Extrinsic rewards reduce intrinsic interest in a task. When
people are paid for work, it feels less like something they
want to do and more like something they have to do.
• As managers, we should understand that people are driven
by a need for autonomy, and seek ways to achieve
• 3. Self concordance theory.
• The degree to which peoples’ reasons for pursuing goals are
consistent with their interests and core values.
• If individuals pursue goals because of an intrinsic interest, they are
more likely to attain their goals and are happy even if they do not.
• Because the process of striving towards them is fun.
• In contrast, people who pursue goals for extrinsic
reasons(money, status or other benefits) are less likely to attain
their goals and less happy even when they do achieve them. WHY?
• Because the goals are less meaningful to them.
• So, choose your job for reasons other than extrinsic rewards.
• As managers, provide intrinsic as well as extrinsic incentives.
• 4. Goal setting theory – Specific and difficult goals, with
feedback, lead to higher performance.
• Strong supportive research findings.
• Eg: 1. You are told to do your best.
• 2. You are specifically told to score more than 75 % on all
• When will you do better?
• Specific goals increase performance.
• Difficult goals, when accepted, result in higher performance
than do easy goals.
• Feedback leads to higher performance than does non
• Difficult :
• Challenging goals get our attention and thus tend to help us focus.
• Difficult goals energise us because we have to work harder to attain
• Do you study as hard for an easy exam as you do for a difficult one?
• When goals are difficult, people persist in trying to attain them.
• Difficult goals help us to discover strategies that help us to perform
the job or task more effectively
• Feedback :
• All feedback is not equally potent – Self generated feedback, with
which employees are able to monitor their own progress – has
been shown to be a more powerful motivator than externally
• Management By Objectives (MBO) has 4 key
• 1. Goal specificity.
• 2. Participation in the setting of goals or objectives.
• 3. Explicit time period.
• 4. Performance feedback.
• The only area of possible disagreement between MBO
and goal setting theory is participation : MBO strongly
advocates it while goal setting theory says managers
assigning goals is usually just as effective.
• The organisation’s overall objectives are translated into specific objectives
for each succeeding level in the organisation (divisional, departmental ,
• 5. Self-efficacy theory
• Self efficacy : An individual’s belief that she or he
is capable of performing a task.
• The higher your self efficacy, the more confidence
you have in your ability to succeed.
• So, in difficult situations, people with low self
efficacy are more likely to lessen their effort or
give up all together, while those with high self
efficacy will try harder to master the challenge.
• Albert Bandura, who developed the self
efficacy theory, proposed 4 ways self efficacy
can be increased.
• 1. Enactive mastery
• 2. Vicarious modeling
• 3. Verbal persuasion
• 4. Arousal
• 1. Enactive mastery – most important way – gaining relevant experience with the task or
• Training programs often make use of enactive mastery by having people practice and build
their skills. Training increases self efficacy.
• 2. Vicarious modeling – becoming more confident when you see someone like yourself
doing the task.
• 3. Verbal persuasion – when someone convinces you that you have the skills necessary to
• The Pygmalion effect is a form of self fulfilling prophecy in which believing something can
make it come true. Eg. In some studies, teachers were told that their students had very I.Q.
scores when in fact they spanned a range – some high, some low, some in between.
Consistent with the Pygmalion effect, the teachers spent more time with the students they
thought were smart, gave them more challenging assignments, and expected more of them
–all of which led to higher student self efficacy and better student grades.
• The Galatea effect occurs when high performance expectations are communicated directly
to an employee. Eg.: Sailors who were told convincingly that they would not get seasick in
fact were much less likely to do so.
• 4. Arousal – When the person gets “psyched up”. But if the task requires a steady, lower
key perspective(eg.manuscript editing), arousal may hurt performance.
• 6. Reinforcement theory says that behaviour is
a function of its consequences.
• People learn to behave to get something they
want or to avoid something they don’t want.
Goal setting theory Reinforcement theory
1. Cognitive approach – An
individual’s purposes direct
1. Behaviouristic approach –
2. Internal cognitive events are
2. Environmentally caused.
• B.F.Skinner – Behaviorism: Behaviour follows
stimuli in a relatively unthinking manner.
• Creating pleasing consequences to follow
specific forms of behaviour would increase the
frequency of that behaviour.
• Rewards are most effective if they follow the
• Behaviour that is not rewarded, or is
punished, is less likely to be repeated.
• Social learning theory : The view that we can learn through both
observation and direct experience.
• 4 processes determine the influence of models on an individual :
• 1. Attentional processes: People learn from a model only when they
recognise and pay attention to its critical features. We tend to be
most influenced by models that are attractive, repeatedly available,
important to us and similar to us in our estimation.
• 2. Retention processes: A model’s influence depends on how well
the individual remembers the model’s action after the model is no
• 3. Motor reproduction processes: Watching must be converted to
• 4. Reinforcement processes: Behaviours that are positively
reinforced are given more attention, learned better, and performed
• 7. Equity theory / Organisational Justice.
• Ashish Mohapatra graduated last year with an M.H.A. from
Manipal. Got placed with Pfizer in Marketing. He was very pleased.
Challenging work, prestigious firm, an excellent opportunity to gain
valuable experience, and the highest package in his class. Ashish
was mature and articulate.
• 12 months later, the work has proved to be as challenging and
satisfying as he had hoped for. He has just received a 15% raise. But
his motivational level has dropped dramatically in the last 1 week.
• His employer has just hired a fresh graduate from IHMR, Jaipur, for
Rs.4,000 more per month than what Ashish is drawing now. Ashish
is upset. He is even talking about looking for another job.
• Employees perceive what they get from a job (salary,
recognition) in relationship to what they put into it (
Education, Effort, Experience, Competence ).
• They then compare their outcome-input ratio with that of
• If we perceive the ratio to be equal, a state of equity exists.
• When we perceive inequality, we experience Equity
• When we see ourselves as underrewarded, the tension
• When we see ourselves as overrewarded, it creates guilt.
• There are 4 referent comparisons:
• 1. Self-inside. An employee’s experiences in a
different position inside the current organisation.
• 2.Self-outside. An employee’s experiences in a
position outside the current organisation.
• 3.Other-inside. Another individual or group of
individuals inside the employee’s organisation.
• 4.Other-outside. Another individual or group of
individuals outside the employee’s organisation.
• Some observations:
• Employees with short tenure in their current
organisations tend to have little information about
others inside the organisation, so they rely on their
• Employees with long tenure rely more heavily on co-
workers for comparison.
• Upper-level employees, those in the professional ranks,
and those with higher amounts of education tend to
have better information about people in other
organisations and will make other-outside
• Employees who perceive inequity will make one of 6 choices:
• 1. Change their inputs (exert less effort if underpaid, or more if overpaid)
• 2. Change their outcomes(individuals paid on a piece rate basis can increase their
pay by producing a higher quantity of units of lower quality)
• 3. Distort perceptions of self (I used to think I work at a moderate pace, but now I
realise I work a lot harder than everyone else)
• 4. Distort perceptions of others ( Raja Hussain’s job isn’t as desirable as I thought)
• 5. Choose a different refferent (“I may not make as much as my brother in law,
but I am doing a lot better than my Dad did when he was my age”)
• 6. Leave the field (quit the job)
• Some of these have support from research, others don’t.
• Inequities created by overpayment do not seem to have a very significant impact
on behaviour in most work situations. People seem to tolerate it very well.
Definition: Perceived fairness of
Example: I got the pay raise I
Definition: Perceived fairness of
process used to determine outcome.
Example: I had input into the process
used to give raises and was given a
good explanation of why I received the
raise I did.
Definition: Perceived degree to which
one is treated with dignity and respect.
Example: When telling me about my
raise, my supervisor was very nice and
perception of what
is fair in the
Example: I think
this is a fair place
• 8. Expectancy theory (Victor Vroom): The strength of a tendency to act in a
certain way depends on the strength of an expectation that the act will be
followed by a given outcome and on the attractiveness of that outcome to
• One of the most widely accepted explanations of Motivation.
• The theory focusses on 3 relationships:
• 1. Effort-performance relationship: The probability perceived by the
individual that exerting a given amount of effort will lead to performance.
• 2. Performance-reward relationship: The degree to which the individual
believes performing at a particular level will lead to the attainment of a
• 3. Rewards-personal goals relationship: The degree to which
organisational rewards satisfy an individual’s personal goals or needs and
the attractiveness of those potential rewards for the individual