This document discusses various theories and approaches for motivating employees. It begins by defining motivation as the processes that energize, direct, and sustain a person's efforts towards attaining a goal. It then outlines early theories like Maslow's hierarchy of needs, McGregor's Theory X and Y, and Herzberg's motivation-hygiene theory. Contemporary theories covered include the three needs theory, goal-setting theory, reinforcement theory, job design models, equity theory, and expectancy theory. The document concludes by discussing current issues in motivation and providing suggestions for applying motivation concepts in practice, such as recognizing individual differences, linking rewards to performance, and using recognition programs.

1. Motivating
Employees
1

2. Sessions Outlines
Group Members : Topics
1. K. Raheel Akbar: Introduction and ETM
2. Yasir Mehmood : CTM 1-3
3. Hammad Naeem : CTM 4-6
4. Noor Alam Khan : Integrating CTM and
Current issues in Moti.
5. M. Wajahat Ullah : Suggestions and
Summary.
2

3. Meet our protagonist
we‘ll call him “The Manager”
3

4. The Manager works for an
Organization
U-Fone
Pakistan
4

5. But there is a
problem…
5

6. The Employees are not
motivated
6

7. When the employees are not
motivated
There will be
• Break over
• Ineffectiveness
• Inefficiency
• Less productivity
• Organization will not be
able to achieve the goals.
7

8. The manager needs to figure out how to
increase employee motivation
8

9. 9

10. •
10

11. What Is Motivation?
• Motivation
– “The processes by which a person’s efforts
are energized, directed and sustained
towards attaining a goal.”
• The energy: “A measure of intensity or drive.”
• Direction: “Toward organizational goals.”
• Persistence Dimension: “Prolong and sustain
forth efforts to achieve those goals.”
– Motivation works best when individual needs are
compatible with organizational goals.
11

12. The Motivation Process
Exhibit 16.1
12

13. The Motivation Process
• Need
– An internal state that makes certain outcomes
appear attractive.
– An unsatisfied need creates tension which is
reduced by an individual’s efforts to satisfy the
need.
13

14. Early Theories of Motivation
–Maslow’s Hierarchy of Needs
–MacGregor’s Theories X and Y
–Herzberg’s Motivation-Hygiene
Theory
14

15. Early Theories of Motivation
• Maslow’s Hierarchy of Needs Theory
• Physiological,
• Safety Need
• Social Need
• Esteem Need
• Self actualization Need
15

16. Early Theories of Motivation (Cont’d)
Maslow’s Hierarchy of Needs Theory (Cont’d)
– Needs were categorized as five levels of lower- to
higher-order needs.
• Individuals must satisfy lower-order needs before they
can satisfy higher order needs.
• Satisfied needs will no longer motivate.
• Motivating a person depends on knowing at what level
that person is on the hierarchy.
– Hierarchy of needs
• Lower-order (external): physiological, safety
• Higher-order (internal): social, esteem, self-actualization
16

17. Maslow’s Hierarchy of Needs
Exhibit 16.2
17

18. Early Theories of Motivation
(cont’d)
• McGregor’s Theory X and Theory Y
– Theory X
Assumes that workers have little ambition,
dislike work, avoid responsibility, are lazy and
and require close supervision.
I WONT WORK!
18

19. Early Theories of Motivation
(cont’d)
– Theory Y
• Assumes that employees are creative,
enjoy work, seek responsibility and can
exercise self direction.
– Motivation is maximized by participative
decision making, interesting jobs, and
good group relations.
HURRAY!!...WORK!
19

20. Early Theories of Motivation (cont’d)
Herzberg’s Two-Factors Theory
“The motivation theory that intrinsic
(Motivators) factors are related to job
satisfaction and motivation, where as
extrinsic (Hygiene) factors are associated
with job dissatisfaction.”
20

21. Early Theories of Motivation (cont’d)
• Herzberg’s Two-Factors Theory (cont’d)
– Hygiene factors: extrinsic (environmental)
factors that eliminate job dissatisfaction, but
don't motivate.
– Motivators: intrinsic (psychological) factors
that create job satisfaction and motivation.
21

22. Herzberg’s Motivation-Hygiene
Theory
Exhibit 16.3
22

23. Contrasting Views of Satisfaction-
Dissatisfaction
•The opposite of satisfaction is not dissatisfaction, but rather no satisfaction.
Exhibit 16.4
23

24. Contemporary Theories of
Motivation
Three-Needs Theory
Goal-Setting Theory
Reinforcement Theory
Designing Motivating Jobs
Equity Theory
Expectancy Theory
24

25. Contemporary Theories of Motivation (cont’d)
• Three-Needs Theory
– There are three major acquired (not innate)
needs that are major motives in work.
– Need for achievement (nAch)
• The drive to excel and to achieve in relation to
set standards and strive to succeed.
– Need for power (nPow)
• The need to influence the behavior of others
– Need of affiliation (nAff)
• The desire for interpersonal relationships
25

26. Pictorial Example of the Three
Needs Theory
Exhibit 16.5
26

27. Contemporary Theories of Motivation (cont’d)
• Goal-Setting Theory
– The Proposition that specific goals increase
performance and that difficult goals, when
accepted in higher performance than to easy
goals.
27

28. Contemporary Theories of Motivation (cont’d)
Goal Setting theory (cont’d)
• Benefits of Participation in Goal-Setting
– Increases the acceptance of goals.
– Fosters commitment to difficult, public goals.
– Provides for self-feedback (internal locus of
control) that guides behavior and motivates
performance (self-efficacy).
28

29. Goal-Setting Theory
Exhibit 16.6
29

30. Contemporary Theories of Motivation (cont’d)
Reinforcement Theory
Assumes that a desired behavior is a
function of its consequences, is
externally caused, and if reinforced, is
likely to be repeated.
30

31. Contemporary Theories of Motivation (cont’d)
• Reinforcement Theory (cont’d)
– Rewards are most effective if they
immediately follow a desire behavior.
– Behavior that is not rewarded or is
punished, is less likely to be repeated.
31

32. Contemporary Theories of Motivation (cont’d)
• Designing Motivating Jobs
• Job Design
– The way tasks are combined to form complete jobs.
Some ways that managers can design motivating jobs.
– Job enlargement
• The horizontal expansion of a job by increasing
job scope.
– Job enrichment
• The vertical expansion of a job by adding
planning and evaluating responsibilities.
32

33. Designing Motivating Jobs (Cont’d)
Job Characteristics Model (JCM)
– A framework for analyzing and designing jobs
that identifies five primary job characteristics,
their interrelationship, and their impact on
outcomes.
– Five primary job characteristics:
• Skill variety
• Task identity
• Task significance
• Autonomy
• Feedback
33

34. Job Characteristics Model
Exhibit 16.7
34

35. Guidelines for Job Redesign
Exhibit 16.8
35

36. Designing Motivating Jobs (Cont’d)
Suggestions for Using the JCM
– Combine tasks (job enlargement) to create more
meaningful work.
– Create natural work units to make employees’ work
important and whole.
– Establish external and internal client relationships to
provide feedback.
– Expand jobs vertically (job enrichment) by giving
employees more autonomy.
– Open feedback channels to let employees know how
well they are doing.
36

37. Equity Theory
– The theory that an employee compares his or
her job’s input-outcomes ratio with that of
others and then correct any inequity.
• If the ratios are perceived as equal then a state of
equity (fairness) exists.
• If the ratios are perceived as unequal, inequity
exists and the person feels under- or over-
rewarded.
• When inequities occur, employees will attempt to do
something to rebalance the ratios (seek justice).
37

38. Equity Theory (cont’d)
– If an employee perceives any inequity he might,
• Distort own or others’ ratios.
• Induce others to change their own inputs or
outcomes.
• Change own inputs (increase or decrease efforts)
or outcomes (seek greater rewards).
• Choose a different comparison (referent) other
(person, systems, or self).
• Quit their job.
– Employees are concerned with both the absolute
and relative nature of Organizational rewards.
38

39. Equity Theory (cont’d)
Exhibit 16.9
39

40. Equity Theory (cont’d)
– Distributive justice
• The perceived fairness of the amount and
allocation of rewards among individuals (i.e., who
received what).
– Influences an employee’s satisfaction.
– Procedural Justice
• The perceived fairness of the process used to
determine the distribution of rewards (i.e., how who
received what).
– Affects an employee’s organizational commitment.
40

41. Expectancy Theory
– States that an individual tends to act in a certain
way based on the expectation that the act will be
followed by a given outcome and on the
attractiveness of that outcome to the individual.
– Key to the theory is understanding and managing
employee goals and the linkages among and
between effort, performance and rewards.
• Effort: employee abilities and training/development
• Performance: valid appraisal systems
• Rewards (goals): understanding employee needs
41

42. Simplified Expectancy Model
Exhibit 16.10
42

43. Expectancy Theory (Cont’d)
• Expectancy Relationships
– Expectancy (effort-performance linkage)
• The perceived probability that an individual’s
effort will result in a certain level of performance.
– Instrumentality
• Degree to which the individual believes that
performance at a particular level is instrumental
in attaining the desired outcome.
– Valence
• The attractiveness/importance of the
performance reward (outcome) to the individual.
43

44. Integrating
Contemporary
Theories of
Motivation
Exhibit 16.11
44

45. • Integrating Contemporary Theories of Motivation (cont’d)
45

46. It is all about people
46

47. Current Issues in Motivation
• Understanding the current issues and
predicting employee motivation is one of
the most popular areas in management.
There are significant current workplaces
issues exist in the current age that affect
the employee motivation.
47

48. 1. Cross-Cultural Challenges
– Motivational programs are most applicable in
cultures where individualism and quality of
life are cultural characteristics
• Uncertainty avoidance of some cultures inverts
Maslow’s needs hierarchy.
• The need for achievement (nAch) is lacking in other
cultures.
• Collectivist cultures view rewards as “entitlements”
to be distributed based on individual needs, not
individual performance.
48

49. Current Issues in motivation (cont’d)
• Cross-Cultural Consistencies
– Interesting work is widely desired in many
cultures, as is growth, achievement, and
responsibility.
49

50. 2. Motivating Unique Groups of Workers
• Motivating a diverse workforce
• Motivating Professionals
• Motivating Contingent workers
• Motivating Low-Skilled, Minimum wage
employees
50

51. Motivating Unique Groups of Worker (cont’d)
Motivating a diverse workforce
• Flexibility
 Men desire more autonomy than do women.
 Women desire learning opportunities, flexible
work schedules, and good interpersonal
relations.
51

52. Motivating Unique Groups of Workers (Cont’d)
• Flexible Work/Job schedules
– Compressed work week
• Longer daily hours, but fewer days
– Flexible work hours (flextime)
• Specific weekly hours with varying arrival, departure,
lunch and break times around certain core hours
during which all employees must be present.
– Job Sharing
• Two or more people split a full-time job.
– Telecommuting
• Employees work from home using computer links.
52

53. Motivating Unique Groups of Workers (Cont’d)
• Motivating Professionals
– Characteristics of professionals
• Strong and long-term commitment to their field of
expertise.
• Loyalty is to their profession, not to the employer.
• Have the need to regularly update their
knowledge.
• Don’t define their workweek as 8:00 am to 5:00 pm.
– Motivators for professionals
• Job challenge
• Organizational support of their work
53

54. Cross-Cultural Challenges (Cont’d)
• Motivating Contingent Workers
– Opportunity to become a permanent
employee
– Opportunity for training
– Equity in compensation and benefits
• Motivating Low-Skilled, Minimum-Wage
Employees
– Employee recognition programs
– Provision of sincere praise
54

55. Designing Appropriate Rewards Programs
– Open-book management
• Involving employees in workplace decision by
opening up the financial statements of the
employer.
– Employee recognition programs
• Giving personal attention and expressing interest,
approval, and appreciation for a job well done.
– Pay-for-performance
• Variable compensation plans that reward employees
on the basis of their performance:
– Piece rates, wage incentives, profit-sharing, and
lump-sum bonuses
55

56. Designing Appropriate Rewards Programs (cont’d)
– Stock option programs
• Using financial instruments (in lieu of monetary
compensation) that give employees the right to
purchase shares of company stock at a set
(option) price.
• Options have value if the stock price rises above
the option price; they become worthless if the
stock price falls below the option price.
56

57. Recommendations for Designing Stock
Options
Exhibit 16.12b
57

58. Recommendations for Designing Stock
Options
Exhibit 16.12b
58

59. From Theory to Practice:
Guidelines for Motivating Employees
Recognize
Match people
individual
to jobs
differences
Don’t ignore
Use goals
money Suggestions
for
Motivating
Ensure that goals
Check the system Employees are perceived as
for equity
attainable
Link rewards Individualize
to performance rewards
59

60. Suggestions (cont’d)
The following remedial steps can be effective in
the theory and practices of motivating
employees.
1. Recognize Individual Differences – almost
every contemporary theory recognizes that all
employees are not identical. They have different
needs, attitudes, personality etc.
60

61. Suggestions (cont’d)
• Match People to Jobs – employees are
carefully matched with the jobs. That is
high achiever should have jobs that allow
them to participate in setting challenging
goals, involve autonomy and feedback.
61

62. Suggestions (cont’d)
. Use Goals – managers should assure that
employees have hard specific goals and
feedback on how well they are doing in
achieving those goals.
• Ensure that Goals are perceived as
Attainable – actually goals are attainable,
employees who see goals as unattainable will
reduce their effort because they will be thinking
“Why bother”.
62

63. Suggestions (cont’d)
Individualize rewards – every employee
have different needs, what act as a
reinforcer for one may not for other. So,
manager should use their knowledge of
employee differences to individualize the
reward they control such as pay,
promotion, autonomy etc.
63

64. Suggestions (cont’d)
Link Rewards to Performance – managers
need to make reward associated with
performance.
Check the System for Equity – employee
should perceive the rewards or outcomes
are equal to the inputs. Simply separated
rewards for each job.
64

65. Suggestions (cont’d)
Use Recognition – recognize the power of
recognition. Using recognition is a low cost
means to reward employees.
Show Care & Concern of Your
Employees – employee perform better for
managers who care about them.
65

66. Suggestions (cont’d)
Don’t Ignore Money – Creating interesting
jobs and providing opportunities for
participation, remember that money is the
major reason why most people work.
66

67. Chapter Summary
Motivating Employees
67

68. What is Motivation?
The process by which a person’s efforts are
energized, directed, and sustained toward
attaining a goal.
Energy – intensity or drive
Direction – effort channeled in a way that
benefits the organization
Persistence – sustained effort to achieve
goals
68

69. What are the Early Theories of
Motivation?
• Maslow’s hierarchy of Needs
• Five needs: physiological, safety, social,
esteem, & self-actualization.
• Person moves up hierarchy as needs are
substantially satisfied.
• Substantially satisfied need no longer
motivates.
69

70. What are the Early Theories of
Motivation? (cont…)
• McGregor’s Theory X and Y
• Theory X – assumes people don’t like to work,
won’t seek out responsibility, and have to be
threatened & coerced to put forth effort.
• Theory Y – assumes people like to work, seek
out responsibility, and will exercise self-
direction.
70

71. What are the Early Theories of
Motivation? (cont…)
• Herzberg’s two-factor Theory
• Factors associated with job satisfaction
(motivators) were intrinsic.
• Factors associated with job dissatisfaction
(hygiene) were extrinsic
71

72. What are the Contemporary Theories
of Motivation? (cont…)
• Goal-setting Theory – specific goals
increases performance and difficult goals,
when accepted, result in higher performance
than do easy goals.
• Intension to work toward a goal is a major source
of job motivation
• Specific hard goals produce higher levels of output
than generalized goals
72

73. What are the Contemporary Theories
of Motivation? (cont…)
• Goal-setting Theory
• Goal setting (difficult goals) versus need for
achievement (moderately challenging
goals)
• Participation is probably preferable to
assigning goals, but not always
• Feedback guides and motivates behavior –
especially self-generated feedback
• Contingencies in goal setting: goal
commitment, self-generated feedback
73

74. What are the Contemporary Theories
of Motivation? (cont…)
• Reinforcement Theory – behavior is a
function of its consequences
– Use positive reinforces to reinforce desirable
behaviors
– Ignore undesirable behavior rather than
punish it
74

75. What are the Contemporary Theories
of Motivation? (cont…)
• Designing Motivating Jobs
Describe the job characteristics, model as a way to –
design motivating jobs.
Job Enlargement – horizontally expanding job scope –
(variety of task required in a job)
Job Enrichment – vertically expanding job depth –
(degree of control)
Jon Characteristic Model – identify 5 primary job –
dimensions to motivating jobs (skill variety, task
identity, task significance, autonomy & feedback
75

76. What are the Contemporary Theories
of Motivation? (cont…)
• Equity theory - focus on how employees
compare there inputs-outcome ratios to
relevant others’ (referents) input-outcome
– Perception of inequality will cause distortion of
employees, or other’s input or outcomes
– Induce others to change there inputs or
outcomes
– Change there own input or outcomes
76

77. What are the Contemporary
Theories of Motivation? (cont…)
• Expectancy Theory – an individual tends
to act in a certain way based on the
expectation that the act will be followed by
given outcome and the attractiveness of
that outcomes to the individual.
– Effort-performance linkage
– Performance-Reward linkage
– Attractiveness of Rewards
77

78. Current Motivational Issues
• Cross-Cultural Challenges
• Motivating Unique Groups of Workers
– Motivating a Diverse Workforce
– Motivating Professionals
– Motivating Contingent Workers
– Motivating Low-Skilled, Minimum-Wage Employees
• Designing appropriate reward Programs
– Open-Book Management
– Employee Recognition Programs
– Pay-for-performance
– Stock Option Programs
78

79. QUESTIONS AND ANSWERS
79

80. For your Information
• The presentation slides and notes are
uploaded to
www.scribd.com
80