PD Lecture 3 motivation

All Rights ReservedOrganizational Behaviour
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 1
PEOPLE DYNAMICS IN MALAYSIAN
ORGANISATIONS
UCM60303U3

Lecture 3Lecture 3
Motivation principles at work

Learning Outcomes
 Define motivation and its nature
 Explain the importance of motivation
 Describe the relationship between motivation
and performance
 Explain the classical theories of motivation
 Explain the contemporary theories of
motivation

Definition
Motivation is a set of forces that
causes people to behave in certain
ways.

The Importance of Motivation
• Leads to achievement of organizational goals
• Builds friendly relationship
• Improves employees’ level of efficiency

Motivation and Performance
The relationship between motivation
and performance:
P = M x A
P = performance
M = motivation
A = ability

Theories of Motivation
• Maslow’s Hierarchy of Needs Theory
• Theory X and Theory Y
• Two-factor Theory
• ERG Theory
• McClelland’s Theory of Needs
• Goal-setting Theory
• Reinforcement Theory
• Equity Theory
• Expectancy Theory

Maslow’s Hierarchy Of Needs Theory

Physiological Needs
These are the most basic needs that every person has
and they are critical for your ability to survive. These
include needs like water, food, air and sleep. You can see
how these are important for personal development because
without them nothing else matters.
These are instinctive needs, according to Maslow. Until
you complete these needs, everything else is secondary and
will be pushed off to the side.
Maslow also believed that sexual reproduction is among
the various physiological needs that a person needs to
satisfy.

Security Needs
You have to feel secure and safe in life or
else you are not able to focus on other parts
of your life. While they are not as critical as
the various physiological needs, they are a
close second because when people do not feel
safe, they put their focus on the danger that
they see coming.
This needs also puts emphasis on being able to
create order and control in your life. It includes
things like having a safe and stable home,
physical safety, financial security and stable
health. These needs give you a number of
goals that you can work on for your
development.

Social Needs
Humans are social creatures by nature, so socialization is a critical needs
in your life. If you are working on a personal development plan for improving
your relationships, addressing this need is of the utmost importance.
When you are looking at your social needs, you have to look at all of your
relationships, including your romantic endeavors, your friendships and the
connection you have to your family.
Things like your involvement in your community, social organizations and
religious groups will also play a role in fulfilling your social needs.

Esteem Needs
This needs becomes very important after you have
satisfied the three needs above. Humans naturally
concern themselves with self-esteem, social recognition,
personal worth and accomplishment.
People want others to appreciate and respect them for
the things that they do. When it comes to your personal
development plan, this is where you are going to focus on
things like career and education. You also want to
consider your hobbies when it comes to this need.
When people improve their self-esteem and they start to
gain acceptance, they naturally start to become more
confident. Those who do not accomplish this need are at
risk for experiencing feeling inferior or feeling like they are
a failure, so it is important to address this need.

Theory X and Theory Y
Theory XTheory X
Managers See Workers As…Managers See Workers As…
Disliking WorkDisliking Work
Avoiding ResponsibilityAvoiding Responsibility
Having Little AmbitionHaving Little Ambition
Theory YTheory Y
Managers See Workers As…Managers See Workers As…
Enjoying WorkEnjoying Work
Accepting ResponsibilityAccepting Responsibility
Self-directedSelf-directed

Self-Actualizing Needs
Maslow states that not everyone is capable of
achieving this level of the Hierarchy. You can
achieve it if you put forth the effort necessary to do
so. Once you reach this level, you are concerned with
your personal growth, interested in fulfilling your
potential, you are self-aware and you do not care
much about the opinions that other people have.
This makes you far more confident and capable of
being yourself and not giving into the various societal
pressures
Now you have a better idea about what Maslow's Hierarchy of Needs is and what you
need to do to ensure that you can work it into your personal development plan. You can
also see how your personality type plays into your needs and which ones are most critical to
you. Make sure that when you are setting your goals, you are keeping these needs in mind
because it ensures that your goals are more realistic and that they are something that will benefit
you. It also helps to make sure that you can create better plans to accomplishing them.

Theory X workers
Theory X Assumptions
The average human being has an inherent dislike of work and will
avoid it if he can.
• Because of their dislike for work, most people must be controlled and
threatened before they will work hard enough.
• The average human prefers to be directed, dislikes responsibility, is
unambiguous, and desires security above everything.
• These assumptions lie behind most organizational principles today, and
give rise both to “tough” management with punishments and tight
controls, and “soft” management which aims at harmony at work.
• Both these are “wrong” because man needs more than financial rewards
at work, he also needs some deeper higher order motivation - the
opportunity to fulfill himself.
• Theory X managers do not give their staff this opportunity so that the
employees behave in the expected fashion.

Theory Y workers
Theory Y Assumptions
• The expenditure of physical and mental effort in work is as natural as
play or rest.
• Control and punishment are not the only ways to make people work,
man will direct himself if he is committed to the aims of the
organization.
• If a job is satisfying, then the result will be commitment to the
organization.
• The average man learns, under proper conditions, not only to accept
but to seek responsibility.
• Imagination, creativity, and ingenuity can be used to solve work
problems by a large number of employees.
• Under the conditions of modern industrial life, the intellectual
potentialities of the average man are only partially utilized.

Characteristics of Theory X and Theory Y Employees
Theory X (0%) Theory Y (100%)
Attitude
People dislike work, find it boring , and will avoid it if
they can
People need to work and want to take an interest in it.
Under right conditions, they can enjoy it.
Direction
People must be forced or bribed to make the right effort People will direct themselves towards a target thay they
accept.
Responsibility
People would rather be directed than accept
responsibility, which they avoid
People will seen and accept responsibility, under the
right condition.
Motivation
People are motivated mainly be money and fears about
their job security
Under the right condition, people are motivated by the
desire to realize their own potential.
Creativity
Most people have little creativity – except when it
comes to getting round rules.
Creativity and ingenuity are widely distributed and
grossly underused.

TWO-FACTOR THEORY
• Motivator factors (intrinsic factors)
a factor related to job content: associated with an
individual’s positive feelings about the job, i.e. the job
itself, responsibility, achievement, growth.
when adequate, give satisfaction
• Hygiene factors (extrinsic factors)
a factor related to job context or the environment in which
the job is performed, i.e. company policy, supervision, and
salary
when inadequate – feel dissatisfied

Hygiene factors
The hygiene factors symbolized the physiological needs which the individuals wanted and
expected to be fulfilled. Hygiene factors include:
Pay- The pay or salary structure should be appropriate and reasonable. It must be
equal and competitive to those in the same industry in the same domain.
Company Policies and administrative policies- The company policies should not
be too rigid. They should be fair and clear. It should include flexible working hours,
dress code, breaks, vacation, etc.
Fringe benefits- The employees should be offered health care plans (mediclaim),
benefits for the family members, employee help programmes, etc.
Physical Working conditions- The working conditions should be safe, clean and
hygienic. The work equipments should be updated and well-maintained.
Status- The employees’ status within the organization should be familiar and
retained.
Interpersonal relations-The relationship of the employees with his peers, superiors
and subordinates should be appropriate and acceptable. There should be no conflict
or humiliation element present.
Job Security- The organization must provide job security to the employees.
Supervision- Employees prefer nice and friendly managers the most

Motivator Factors
Recognition
The employees should be praised and recognized for their
accomplishments by the managers.
Sense of achievement
The employees must have a sense of achievement. This depends on the
job. There must be a fruit of some sort in the job.
Growth and promotional opportunities
There must be growth and advancement opportunities in an organization
to motivate the employees to perform well.
Responsibility
The employees must hold themselves responsible for the work. The
managers should give them ownership of the work. They should
minimize control but retain accountability

TWO-FACTOR THEORY

ERG THEORY
• The E, R and G stand for three basic need
categories:
Existence needs (E)
Relatedness needs (R)
Growth needs (G)

Existence Needs
This group of needs is concerned with providing the basic requirements for material
existence, such as physiological and safety needs. In a work context this need is satisfied by
money earned in a job for the purchase of food, shelter, clothing, etc.
Relatedness Needs
This group of needs focuses on the desire to establish and maintain interpersonal relationships
with family, friends, co-workers and employers. This need includes the need to interact with
other people, receive public recognition, and feel secure around people.
In a work context and given the amount of time most people spend at work this need is
normally satisfied to some extent by their relationships with colleagues and managers.
Growth Needs
These needs are about the fulfilment of desires to be creative, productive and to complete
meaningful tasks in order to build and enhance a person’s self-esteem through personal
achievement. These needs are all about by personal development. In a work context a person's
job, career, or profession can provide a significant satisfaction of growth needs.

McClelland’s Theory of Needs

Achievement Motivation [n-ach]
The n-ach person is 'achievement motivated' and seeks the achievement and attainment of realistic but
challenging goals, and upwards progress in their job. They have strong need for feedback and a feeling of
accomplishment.
According to David McClelland, people with strong 'achievement motivation' make very good leaders. There
weekness is their tendency to expect too much of their staff believing that their staff have the same
achievement-focus - but of course most people aren't like this.
Authority/power motivation [n-pow]
The n-pow person is 'authority motivated'. This motivational driver produces a need to be influential,
effective and to make an impact. These people have a powerful need to lead and take charge and are driven
towards enhancing their personal status and prestige.
Whilst people with a strong n-pow 'authority-motivation' will work hard work and be commited to the
organisation, they may not possess the necessary emotional intelligence and people awareness and thus lack
flexibility and the necessary people skills.
Affiliation motivation [n-affil]
The n-affil person is 'affiliation motivated' and is a team player motivated by a need to be liked and for
friendly relationships and interactions with others.
David Mcclelland suggested that a a manager's objectivity is underminded by a strong n-affil 'affiliation-
motivation' because of the desire to be popular affects and interferes with the decision-making capability of a
manager.
He suggested that most of us possess and demonstrate a combination of these characteristics, and some some
of us show a a strong bias to a particular motivational need that will inevitably influence and affect our
working behaviour and management style.

Goal-setting Theory
• Intentions to work toward a goal are a major source of
motivation.
• Five criteria, known as SMART must be considered in
setting the goal.
 Specific
 Measurable
 Action-oriented
 Realistic and Relevant
 Time-based

Reinforcement Theory
• The process of shaping behaviour by controlling the
consequences of the behaviour.
• Tools used to control the behaviour of employees are:
 Positive Reinforcement
 Negative Reinforcement
 Extinction
 Punishment

Positive reinforcement
Positive reinforcement involves making sure that
behavior is met with positive consequences. For
example, praising an employee for treating a
customer respectfully is an example of positive
reinforcement.
If the praise immediately follows the positive
behavior, the employee will see a link between the
behavior and positive consequences and will be
motivated to repeat similar behaviors.

Negative reinforcement
Removal of unpleasant outcomes once desired behavior is
demonstrated. is also used to increase the desired behavior.
Negative reinforcement involves removal of unpleasant
outcomes once desired behavior is demonstrated.
Nagging an employee to complete a report is an example of
negative reinforcement. The negative stimulus in the
environment will remain present until positive behavior is
demonstrated.
The problem with negative reinforcement is that the
negative stimulus may lead to unexpected behaviors and
may fail to stimulate the desired behavior. For example, the
person may start avoiding the manager to avoid being
nagged.

Extinction
Is used to decrease the frequency of negative behaviors. Extinction is the
removal of rewards following negative behavior. Sometimes, negative
behaviors are demonstrated because they are being inadvertently rewarded. For
example, it has been shown that when people are rewarded for their unethical
behaviors, they tend to demonstrate higher levels of unethical behaviors.
Thus, when the rewards following unwanted behaviors are removed, the
frequency of future negative behaviors may be reduced. For example, if a
coworker is forwarding unsolicited e-mail messages containing jokes,
commenting and laughing at these jokes may be encouraging the person to keep
forwarding these messages. Completely ignoring such messages may reduce
their frequency.

Punishment
Presenting negative consequences following unwanted
behaviors. is another method of reducing the frequency of
undesirable behaviors.
Punishment involves presenting negative consequences
following unwanted behaviors. Giving an employee a
warning for consistently being late to work is an example
of punishment.

Equity Theory
• Equity Theory, according to George and Jones(2005), is defined as “ a
theory of motivation that focuses on people’s perceptions of the fairness
of their work outcomes relative to their work input.
• The equity theory focuses on an individual’s perceived relationships
between outcomes they perceive from their organisation and the inputs
that they contributed (Inputs are resources contributed in performing the
job, such as time, efforts, skills experiences, etc.
• Outcome can be the salary and also other rewards received from the
organisation (bonus, promotion, recognition, achievement, etc).

Referent Comparisons
Four types of Referent a person can make a
comparison with:
•Self-inside
Comparing himself with his own self in the same
organisation
•Self-outside
Comparing himself with his own self in an another
organisation
•Other-inside
Comparing his input and outcome with another person in
the same organisation.
•Other-outside
Comparing his input and outcome with another person in
a different oragnisation

Three Probabilities of outcome may arise:
Under-rewarded (Inequity)
The inequity that exists when a person perceives that his
or her own outcome-input ration is less than the ration of
a referent.
Equity
An individual perceives his or her own outcome-input
ratio to be equal to a referent’s outcome-input ration
Over-rewarded (Inequity)
A person perceives that his or her outcome-input ratio
is greater than the ration of a referent.

Feeling Inequity?
Employees may choose to do the following to respond to
inequity:
•Change in input (Don’t over excert energy and effort)
•Change outcome (Producing high quantity output and sacrificing
quality)
•Choose a different referent
•Quit the job
•Change self-perception
•Change the perception of others

Expectancy Theory
• Proposed by Victor Vroom in 1964. Vroom focuses on outcomes, not
on needs
• Focuses on three relationships:
 Effort-performance relationship (Expectancy)
Perceived by an individual that by giving some amount of “effort”
will lead to some degree of “performance”.
 Performance-reward relationship (Instrumentality)
Perception that by performing at a particular level it will lead to
obtaining a desired reward.
 Reward-personal goals relationship (Valence)
An individual believes that the reward obtained can satisfy personal
goals

PD Lecture 3 motivation

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