The document discusses Douglas McGregor's Theory X and Theory Y of motivation. Theory X assumes workers are lazy and need close supervision, while Theory Y assumes workers want to do a good job and self-direct if given responsibility. The document also summarizes several other motivation theories including Maslow's hierarchy of needs, Herzberg's two-factor theory, equity theory, and expectancy theory. Expectancy theory states that motivation results from expectations of effort leading to performance and performance leading to desired rewards. Managers should link rewards to targeted performance levels to maximize motivation according to expectancy theory.

1. 1
Motivation Principles: Theory X and Y
Douglas McGregor, an American social
psychologist, proposed his famous X-Y
theory in his 1960 book 'The Human Side of
Enterprise'. Theory x and theory y are still
referred to commonly in the field of
management and motivation

2. 2
Motivation Principles: Theory X and Y
Theory X: Assumes the average worker
is lazy, dislikes work and will do as little
as possible.
• Managers must closely supervise and
control through reward and
punishment.

3. 3
Motivation Principles: Theory X and Y
Theory Y: Assumes workers are not lazy,
want to do a good job and the job itself will
determine if the worker likes the work.
• Managers should allow the worker
great latitude and create an
organization to stimulate the worker.

4. 4
Motivation Principles: Theory X and Y
Theory X
• Work is inherently distasteful to most
people, and they will attempt to avoid work
whenever possible.
• Most people are not ambitious, have little
desire for responsibility, and prefer to be
directed.
• Most people have little aptitude for
creativity in solving organizational
problems.

5. 5
Motivation Principles: Theory X and Y
Theory X continued………….
• Motivation occurs only at the physiological
and security levels of Maslow's Needs
Hierarchy.
• Most people are self-centered. As a result,
they must be closely controlled and often
coerced to achieve organizational objectives
• Most people resist change.
• Most people are gullible and unintelligent.

6. 6
Motivation Principles: Theory X and Y
Theory Y
• Effort in work is as natural as work and
play.
• People will apply self-control and self-
direction in the pursuit of organizational
objectives, without external control or
the threat of punishment.
• Commitment to objectives is a function
of rewards associated with their
achievement.

7. 7
Motivation Principles: Theory X and Y
Theory Y continued………………
• People usually accept and often seek
responsibility.
• The capacity to use a high degree of
imagination, ingenuity and creativity
in solving organizational problems is
widely, not narrowly, distributed in the
population.
• In industry the intellectual potential of
the average person is only partly
utilized.

8. 8
Motivation Principles: Theory X and Y

9. 9
Motivation Principles: Theory X and Y
Theory Y
Employee is not lazy
Must create work
setting to build
initiative
Provide authority to
workers
Theory X
Employee is lazy
Managers must
closely supervise
Create strict rules
& defined rewards

10. 10
Reward and Motivation
• Motivation refers to the
individual forces that
account for the direction,
level, and persistence
of a person’s effort
expended at work.
• Level refers to the
amount of effort a person
puts forth.
• Direction refers to an
individual’s choice when
presented with a number
of possible alternatives.
• Persistence refers to the
length of time a person
sticks with a given action.

11. 11
Reward and Motivation
• Manager and Motivation • Without proper
motivation, you cannot
expect best performance
Motivation is a psychological
drive that directs a person
toward an objective

12. 12
Motivation Principles and Applications: Reinforcement Theory
The theories of motivation can be divided into three broad
categories
Reinforcement Theory: Emphasizes means through
which process of controlling an individual’s
behavior by manipulating its consequences
takes place.
“An individual’s behavior is a function of its
consequences"
 Focus is observable rather than what is inside an employees’ mind

13. 13
Motivation Principles and Applications: Reinforcement Theory
• Reinforcement theory was suggested by BF
Skinner.
• Behavior is a “law of effect”, i.e, individual’s
behavior with positive consequences tends to be
repeated, but individual’s behavior with negative
consequences tends NOT to be repeated.

14. 14
Motivation Principles and Applications: Reinforcement Theory
Positive Reinforcement
The administration of positive
consequences that tend to
increase the likelihood of
repeating the desirable
behavior in similar settings.

15. 15
Motivation Principles and Applications: Reinforcement Theory
Negative Reinforcement
The withdrawal of negative
consequences which tend
to increase the likelihood of
repeating the desirable
behavior in similar settings.

16. 16
Motivation Principles and Applications: Reinforcement Theory
Punishment
The administration of negative
consequences or the withdrawal
of positive consequences that
tend to reduce the likelihood of
repeating the undesirable
behavior in similar settings.

17. 17
Motivation Principles and Applications: Reinforcement Theory
• Reinforcement theory of motivation overlooks
the internal state of individual, i.e., the inner
feelings and drives of individuals are ignored
by Skinner. This theory focuses totally on what
happens to an individual when he takes some
action. Thus, according to Skinner, the
external environment of the organization must
be designed effectively and positively so as to
motivate the employee.

18. 18
Motivation Principles and Applications: Content Theory
Content Theory: focus primarily on
individual needs—the physiological or
psychological deficiencies that we feel
a compulsion to reduce or eliminate.
 Managers job is to create a work environment that responds
positively to individual needs
Some Content (Need) Theories
– Maslow’s Need Hierarchy
– Hezberg’s Two-Factor Theory
– Alderfer’s ERG Theory
– McClelland’s Manifest Needs

19. 19
The Need Satisfaction Process
Need
Deficiency
Search for
Potential Need-
Satisfying
Goal
Perception of
Potential Need-
Satisfying
Goal
Attempt to
Attain Goal
Goal
Attainment or
Frustration

20. 20
Motivation Principles and Applications: Content Theory
Maslow’s
Hierarchy
of Needs
Physiological
Safety
Social
Esteem
Self-Actualization

21. 21
Motivation Principles : Content Theory
• Physiological: Most basic of all human
needs; the need for food, sleep, water, air, and
biological
• Safety: Need for physical safety and
security, family, stability, and economic
security and stability in the physical and
inter-personal events
• Social: Need to love, affection, sense of
belongingness in one’s relationships with
other persons

22. 22
Motivation Principles : Content Theory
• Esteem: Need for esteem of others;
respect, prestige, recognition, need for
self-esteem, personal sense of
competence, mastery
• Self-Actualization: Highest need level;
need to fulfill oneself; the need to realize
one’s potential, to grow, to be creative,
and to accomplish

23. 23
Herzberg’s Two Factor Theory
• Based on interviews with 203
engineers and accountants
• Individuals were asked to reveal two
separate job-related events in which
their work satisfaction had improved
or declined

24. 24
Motivation Principles : Content Theory
Hygiene Factors Motivational Factors
• Quality of supervision
• Rate of pay
• Company policies
• Working conditions
• Relations with others
• Job security
•Status
• Career Advancement
• Personal growth
• Recognition
• Responsibility
• Achievement
•Work itself
High High
Job Dissatisfaction Job Satisfaction
0
Herzberg’s Two-Factor Theory

25. 25
Motivation Principles : Content Theory
Hygiene factors are sources of job
dissatisfaction.
• These factors are associated with the job
context or work setting; that is they relate
more to the environment in which people
work than to the nature of the work itself.
• Improving a hygiene factor will not make
people satisfied with their work; it will only
prevent them from being dissatisfied.

26. 26
Motivation Principles : Content Theory
Hygiene factors are sources of job
dissatisfaction continued………….
• Suppose, you are a junior executive in Prime
Bank. You are getting 8,000 taka salary and
you seem you are less paid. It will create
some sorts of dissatisfaction with your work.
Now, your manager has increased your
salary to 10,000 taka. So, it will remove your
dissatisfaction with your work, but not create
any satisfaction or motivation to work.

27. 27
Motivation Principles : Content Theory
Motivator factors are sources of job
satisfaction.
– These factors are related to job
content— what people actually do in
their work.
– According to Herzberg, when these
opportunities are not available, low job
satisfaction causes a lack of motivation
and performance suffers

28. 28
Motivation Principles : Process Theory
Process Theory: Focus on the thought or
cognitive processes that take place within the
minds of people and that influence their behavior.
 Whereas a content approach may identify job security as an
important need for an individual, a process approach probes further
to identify why the person behaves in particular ways relative to
available rewards and work opportunities.
Process Theories
– Learning Theory
– Goal Setting Theory
– Equity Theory
– Expectancy Theory

29. 29
Motivation Principles : Process Theory
Ratio
Comparison*
Employee’s
Perception
Outcomes A
Inputs A
Outcomes A
Inputs A
Outcomes A
Inputs A
Outcomes B
Inputs B
Outcomes B
Inputs B
Outcomes B
Inputs B
<
=
>
Inequity (Under-Rewarded)
Equity
Inequity (Over-Rewarded)
*Where A is the employee, and B is a relevant other or referent.
Equity Theory

30. 30
Motivation Principles : Process Theory
• Equity theory is based on the phenomenon of
social comparison and is best applied to the
workplace.
• Felt negative inequity exists when an individual
feels that he or she has received relatively less
than others have in proportion to work inputs.
• Felt positive inequity exists when an individual
feels that he or she has received relatively more
than others have in proportion to work inputs.

31. 31
Motivation Principles : Process Theory
• When either feelings exist, the individual will likely engage
in certain behaviors to restore a sense of equity.
• Suppose, you and MS. Samina are quality inspectors in
Square Pharmaceutical. You work everyday 10 hours and
inspect 10 batches of samples. You get 20,000 taka salary
and 5,000 taka as workload bonus. MS. Samina also
works 10 hours and inspect 10 batches of samples (same
types). Her salary is also 20,000 taka but workload bonus
is 7,000. You have joined in the company at the same
time. All other performances are equal.
• So, you have negative inequality in reference to Samina.

32. 32
Motivation Principles : Process Theory
• Change work inputs (reduce performance)
• Change outcomes (rewards) received (ask for a
raise)
• Change comparison points (compare self to a
different co-worker)
• Psychologically distort the comparisons
(rationalize that the inequity is only temporarily
and will be resolved in the future)
• Take actions to change the inputs or outputs of
the comparison person (get a co-worker to accept
more work)

33. 33
Expectancy Theory
Developed by Victor Vroom, expectancy
theory defines motivation as a process
governing choices among alternative forms of
voluntary activity. The components of
expectancy theory are instrumentalities,
valences, and expectancies.

34. 34
Motivation Principles : Process Theory
Expectancy of
Expectancy Theory
3. Rewards-personal goals relationship
1. Effort-performance relationship
2. Performance-rewards relationship
Individual
Individual
Effort
Effort
Individual
Individual
Performance
Performance
Personal
Personal
Goals
Goals
Organizational
Organizational
Rewards
Rewards
1 2
3
Expectancy:
Expectancy: Belief that effort leads to a
specific level of performance

35. 35
Expectancy Model of
Motivation
Performance Reward
Effort
Effort
Perceived effort–
performance
probability
Perceived
value of reward
Perceived
performance–
reward probability
“If I work hard,
will I get the job
done?”
“What rewards
will I get when
the job is well done?”
“What rewards
do I value?”

36. 36
Motivation Principles : Process Theory
Effort
Expectancy:
Person’s
perception that
their effort will
result in
performance
Instrumentality
perception that
performance
results in
outcomes
Valence:
How desired
are the outcomes
from a
job
Performance Outcomes

37. 37
Motivation Principles : Process Theory
– Expectancy is the perception that effort
(input) will result in a level of performance.
• You will work hard if it leads to high performance.
– You would be less willing to work hard if you knew that the best
you would get on a paper was a D regardless of how hard you
tried.
–Instrumentality: Performance leads to
outcomes.
• Workers are only motivated if they think
performance leads to an outcome.
– Managers should link performance to outcomes.
– Valence: How desirable each outcome is to a
person.
• Managers should determine the outcomes workers want
most.

38. 38
Motivation Principles : Process Theory
• According to the Expectancy Theory, high
motivation results from high levels of
Expectancy, Instrumentality, & Valence.
– If just one value is low, motivation will be
low.
– This means that even if desired outcomes are
closely link to performance, the worker must
feel the task is possible to achieve for high
motivation to result.
– Managers need to consider this relationship to
build a high performance firm.

39. 39
Motivation Principles : Process Theory
You are working in Citi Bank as the Assistant
Manager. You expect that
• If you work hard you will get high
performance appraisal from the Manager
• If you get high performance appraisal from
your boss, it will help you to get bonus,
reward from the Bank.
• If you get reward, bonus from the Bank, it
will satisfy your personal goals.

40. 40
Motivation Principles and Applications: Process Theory
Managerial Implications of Expectancy Theory
• Determine the outcomes of employees value.
• Identify good performance so appropriate
behaviors can be rewarded.
• Make sure employees can achieve targeted
performance levels.
• Link desired outcomes/reward to targeted
levels of performance.
• Make sure changes in outcomes/reward are
large enough to motivate high effort.
• Monitor the reward system for inequities.