This document provides an overview of motivation theories and concepts. It discusses: - Intrinsic and extrinsic motivation - Expectancy theory, which posits that effort leads to performance and performance leads to outcomes - Need theories like Maslow's hierarchy of needs and ERG theory - Equity theory and the importance of fair outcomes - Goal-setting theory and specific, difficult goals - Learning theories like operant conditioning and social learning theory - The relationship between pay and motivation It provides examples and explanations of key motivation concepts to understand employee motivation.

1. Brian Hynous

2. Key points we will cover:
The Nature of Motivation
Expectancy Theory
Need Theories
Equity Theory
Goal-Setting Theory
Learning Theories
Pay & Motivation

3. mo·ti·va·tionˌmōtəˌvāSHən
The reason or reasons one has for acting or behaving
in a particular way.
The general desire or willingness of someone to do
something.
Psychological forces that determine the direction of a
person’s behavior in an organization, a person’s level
of effort, and a person’s level of persistence in the
face of obstacles.

4.  Motivation Problems Scene from Office
Space Movie (1999) | MOVIECLIPS
 Office Space - Friday is Hawaiian Shirt
Day – YouTube
 How To Motivate Your Employees -
YouTube

5. “Even with the BEST strategy in place and an
appropriate organizational architecture, an
organization will be effective only if it’s members are
motivated to perform at a high level.
One reason why leading is such an important
managerial activity.”

6. THE NATURE OF MOTIVATION
*Intrinsically motivated behavior: behavior that is
performed for it’s own sake, motivation is derived
from actually performing the behavior. IE.
Elementary school teacher who loves teaching
children, commercial photographer who relishes in
taking creative photographs, the musician who
enjoys playing guitar every week at the coffee shop.

7. *Extrinsically motivated behavior: is behavior
performed to acquire material or social rewards, or
to avoid punishment. IE. A car salesman who is
motivated by receiving commission on all cars
sold, a lawyer who is motivated by the high salary
and status that go along with the job, a factory
worker who is motivated by the opportunity to earn
a stable secure income.

8. INTRINSIC & EXTRINSIC CO-EXIST.
PEOPLE ARE MOTIVATED BY BOTH.
Examples:
A Nurse who is highly motivated by both caring for patients
well-being AND having a secure job with great benefits.
A Walsh graduate student taking courses to complete
his/her education (however in this example, it may lean
more towards the extrinsic rewards that come with a higher
education, rather than the love of learning itself)
*Prosocially motivated behavior: behavior that is
performed to benefit or help others

9. Outcome: Anything a person gets from a job or
organization
Input: Anything a person contributes to his or
her job or organization

10. EXPECTANCY THEORY
Belief is that high levels of effort lead to high
performance and high performance leads to
the attainment of desired outcomes.
One of the most popular theories on work
motivation. Because it focuses on all three
parts of an equation: inputs, performance, and
outcomes. People are motivated to put forth
more effort only if they think that their effort will
pay off in high performance.

11. •Expectancy: perception (paradigm) about the extent
to which effort results in a certain level of performance
•Instrumentality: a perception about the extent to
which performance results in the attainment of
outcomes
•Valence: how desirable each of the outcomes available from a job or
organization is to a person
According to this theory: if ALL
THREE are high, HIGHER
motivation will be a result.

12. NEED THEORIES
basic premise is that people are motivated to
obtain outcomes at work that satisfy their
needs.
Maslow’s Hierarchy of Needs
1. Self actualization – Need to realize one’s full potential as a human being
2. Esteem Needs- Need to feel good about oneself and capabilities,
recognition
3. Belongingness needs – Social interaction, friendship, affection, love (BLUE
on the color chart)
4. Safety needs – Security, Stability, Safe environment
5. Psychological needs – food, water, shelter, survival/primal

13. Alderfer’s ERG Theory
As lower level needs (existence) are satisfied, a person is
motivated to satisfy higher level needs (growth). When a
person is UNABLE to satisfy higher level needs (or is
frustrated), motivation to satisfy lower level needs increases.

14. Herzberg’s Motivator – Hygiene Theory
This theory of motivation is known as a two factor theory. It is based upon the notion that
motivation can be split into hygiene factors and motivation factors. He concluded that
there were two types of motivation:
Hygiene Factors which can demotivate when not present. Hygiene Factors affect the
level of dissatisfaction, but are rarely quoted as creators of job satisfaction.
*supervision
*interpersonal relations
*physical working conditions
*salary
Motivation Factors which will motivate when present. Job dissatisfaction isn't usually
blamed on Motivation Factors, but they are cited as the cause of job satisfaction.
*achievement
*advancement
*recognition
*responsibility
These two separate 'needs' are the need to avoid unpleasantness and discomfort and, at
the other end of the motivational scale, the need for personal development. A shortage of
the factors that positively encourage employees (the motivating factors) will cause
employees to focus on other, non-job related 'hygiene' factors.

15. Equity Theory
A theory of motivation that focuses on people’s perceptions of the
fairness of their work outcomes relative to their work inputs.
Inequity, or the perception of a lack of fairness
Underpayment inequity vs. Overpayment inequity
MOTIVATION IS HIGHEST WHEN AS MANY PEOPLE AS
POSSIBLE IN AN ORGANIZATION PERCEIVE THAT THEY ARE
BEING TREATED EQUITABLY – MEANING, THEIR
OUTCOMES & INPUTS ARE IN BALANCE

16. GOAL-SETTING THEORY
Theory that focuses on identifying the types of goals that are
most effective in producing high levels of motivation and
performance and explaining why goals have these effects.
*Goals must be specific & difficult to stimulate high motivation
(difficult does not mean unattainable)
*Difficult goals also cause people to be more persistent than easy
or vague goals.

17. LEARNING THEORIES
Focus on the linkage between performance and outcomes in the
motivational equation
•Operant Conditioning Theory: people learn to perform behaviors that
lead to desired consequences and learn not to perform behaviors that
lead to undesired consequences.
1. Positive Reinforcement
2. Negative Reinforcement
3. Extinction
4. Punishment

18. Micromanaging makes you
frantic and less productive
(USA Today)
•Get Feedback (360 degree feedback session)
•Avoid Going Overboard –Some managers have an “on/off” switch and
either micromanage or delegate and forget.
•Realize that sometimes you still need to Mmanage
•Develop Good Infrastructure (SYSTEMS THINKING ANYONE?)

19. *Organizational Behavior Modification (OB MOD): systematic application
of operant conditioning techniques to promote the performance of
organizationally functional behaviors and discourage the performance of
dysfunctional behaviors.
Works best for behaviors that are specific, objective, and countable –
such as attendance and punctuality, making sales, or assembling
something, all of which lend themselves to careful scrutiny and control.

20. FIVE STEPS IN OB MOD:
Mangers identify an important
behavior
Measure frequency the behavior
occurs
Determine if people know whether they should be performing
the behavior and what consequences they receive if perform
it
Develop & apply strategy entailing use
of PR/NR/P/E
Re-measure the frequency of behavior,
and maintain using the strategy

21. *SOCIAL LEARNING THEORY
Suggests that motivation results not only from direct experience
of rewards and punishments but also from a person’s thoughts
and beliefs.
Vicarious Learning: Also known as Observational Learning. Watch and
learn. Learner becomes motivated to perform a behavior by watching
another person, and the same person being reinforced for doing so.
Self-Reinforcement: Any desired or attractive outcome or reward
that a person gives to him or herself for good performance.
Self-Efficacy: A person’s belief about his or her ability to
perform a behavior successfully..(SELF EFFACING
PROPHECY)
Michael Jordan motivational look me in the eyes - YouTube

22. PAY AND MOTIVATION
Merit Pay: A compensation plan based on
performance
1. Commission Pay – paid a % of their sales
2. Profit Sharing – employees receive a share of an
organizations profits.
Salary increase or Bonus?
Bonus in form of Employee Stock Options – used as a
motivational tool, predicated on the implied notion that the better
the employee does, it will have a ripple effect, and the company
will overall do better – sending stock prices up.

23. Carrots, Sticks & Peter Scholtes

24. It is Management conceit to believe that one can motivate
others. Managers can demotivate, but not motivate.
The carrot and the stick approach was developed for use
with jackasses and donkeys in mind, and it’s legitimate
use is limited to just that species.
People all start out motivated. It is legitimate to discover
what happened to that original, intrinsic motivation
To believe that pay motivates is to believe, quite
cynically, that people reserve a certain amount of effort
to be left unused until it is bribed out of them.
Imagine that beginning next Monday you will be paid
twice what you are now paid. Will you work any more
effectively?
(No, though you may be happier…in the short term)

25. QUICK EXERCISE
Break into two groups.
Elect a spokesperson for your group.
Keep the discussion amongst your group, careful not to let
the other group overhear.
Take 5 minutes to quickly brainstorm.

26. High Motivation Rules at SAS
Institute
•Has won the coveted “100 best companies to Work for 11 years in a row”
(2008)
•World’s largest privately owned software company, 10,000 employees
worldwide, with $1.9 billion in revenues.
•Employees all work 35 hour work weeks.
•Managers strive to meet intrinsic needs that motivate employees, even if that
means encouraging changing jobs within the company to prevent boredom.
•All new product development is in-house, so employees have the opportunity to
experience the excitement of seeing their product come to life.
•Work/life balance is a top priority, on-site daycare, medical care, unlimited sick
days, high chairs in the cafeteria, and 200 acres that surround HQ for
employees to spend time with their families.

27. So what does this mean to
you?

28. LEADERSHIP IS KEY.
Where in the organization must I exercise control?
•Leaders should not seek to control the individual
employees job performance. Leaders won’t succeed, and
if they try, they are liable to make things worse
•Leaders have usually sought to control finances. These
indeed, must be in control, but leaders are probably not
the right people to do it.
•The same applies to marketing and sales. When leaders
get involved, they are just as likely to mess things up as
to affect them positively.

29. WHAT SHOULD LEADERS
DO?
•Promote Systems Thinking. This includes a fixation on the customers and
the smooth flow of interdependent activities and events that serve the
customers well.
•Work with all the managers and employees to control the systems,
processes, and methods. Control these and continuously improve them.
•Seek to create and maintain outstanding systems. The ideal is:
outstanding systems, achieving excellent results, with the ordinary
efforts of average people.

30. Have you heard anyone complain about the EXXXXX Book being too big? We started developing
NSS16 because we heard many complaints that the book was too big. We heard things like “why
can’t we just pull the coupons we like out of the EXXXX book that are in our area?” We saw our
competitors creating custom products for sports teams and we “couldn’t” because of our “system”. .
.
3 ½ years later we are a part of a Division specializing in High School fundraising. We have Football
Trifold product, customizable with a national coupon book, a football card, and online membership
that allows people to take advantage of 90% of what’s in the book printable online. We have
customizable SS16 where we can pull 16 top offers within core areas of our Ebook and members can
utilize our online Ebook. We have customizable SS40, developed for competitive situations and
within high content areas of the Ebook. We can pull 40 top offers for these situations and people can
utilize our online Ebook. In addition, we just launched the FV key tag, a mobile companion, and a
mobile coupon app that will eventually be a game changer once the public fully understands what
and how they can be used. . .
We now have “home grown experts” all over the country that are raising teams more money than our
competitors did the year before. . . Tim Smith, Michele Kish, Dave Baker, Stephanie Webb, Sara Dyke,
Lew Gumbiner, Mindy Cleeland, Cam Cleeland, Rachael Neely, Ed Myers, and Steve Grande are all
people who consistently drive VDP products toward $40- $50 per student average. This is a major
victory when 3 years ago our VDP averages were around $5 per student. . .
Although our products are not perfect, they are very good! Remember when signing for your
SS16/SS40 products to keep within areas where we have strong book content. That’s how the
products were developed. Our merchant partners will do their best to help but these two programs
are not like the football cards where we start from scratch and have to sign unique ongoing offers.
Look at how far we have come in such a short period of time. Imagine where we will be 2 years from
now with all these game changing concepts we have going on right now. . . You have made our
division and these product lines successful. Thank you.
Management

31. Be the catalyst and inspiration for
systemic change – leadership that
will help bridge personal/shared
visions with deep intrinsic motivation
& personal mastery within your
organization and watch your
company take off!!!!

32. If Inspiration is the
spark…Motivation is the fuel
that keeps us going…
 YouTubeMotivational...Period! – YouTube
 Inspirational Sport Speeches – YouTube
 How to Win at Life, Lessons from Rocky -
YouTube
 Inches - YouTube

33. Discussion Topic: