Motivation is the internal process leading to behavior to satisfy needs. Performance is determined by the formula: Performance = Ability x Motivation x Resources. There are several theories of motivation including: content theories like Maslow's hierarchy of needs and ERG theory that focus on identifying people's needs; process theories like expectancy theory that examine how motivation works; and reinforcement theories based on positive and negative consequences influencing behavior. Effective motivation techniques include setting objectives, job enrichment, praise, and management by objectives. Cross-cultural differences also impact motivation.

1. Motivating Performance
Matthew L. Eisenhard, Psy.D.
Week 8: Psychology for Business & Industry

2. Defining Motivation
• Daniel Pink TED talk
• MOTIVATION = the internal process leading to
behavior to satisfy needs (the REASON you do anything).
▫ Q = Why do people do what they do?
▫ A = To meet their needs & wants.
▫ It is a process – and a continuous one.
 Need > Motive > Behavior > Satisfy/or
Not
• IMPORTANCE = being able to motivate
yourself and others is critical to your career
success (and life over-all).

3. Performance Formula
Emotions > Behavior > Performance
The Formula:
Performance = Ability X Motivation X
Resources
All 3 factors need to be HIGH.
If any one is weak = performance will suffer.
When people’s needs are not met – generally they
become dissatisfied and low performers.
Theories for Motivation help us understand and
Techniques for Application help us implement them.

4. Theories of Motivation
• Content
Theories
• Process
Theories
• Reinforcement
Theories

5. Content Theories of Motivation
Content Theories = focus on identifying
people’s needs in order to understand what
motivates them.
◦ Maslow’s Hierarchy of Needs
◦ ERG Theory (Existence –
Relatedness – Growth)
◦ Two-Factor Theory
◦ Manifest Needs Theory

7. Maslow’s Hierarchy
Shown in a Pyramid (Exhibit 8.1)
 Needs are in order – from basic to more complex.
 You cannot meet higher needs until basic ones are
attained.
Five Basic Needs
1. PHYSICAL – food, water, shelter, sex.
2. SAFETY – safe working conditions, security.
3. SOCIAL – love, friendship, affection, acceptance.
4. ESTEEM – ego, status, self-respect, recognition
(titles, raises, promotions, etc).
5. SELF-ACTUALIZATION – your full potential.

9. ERG Theory
Classification of needs is
highly debatable.
Some say only 2 – others
say 7.
ERG is a well-known
simplification.
Alderfer reorganized
Maslow’s into 3 categories
that correlate.
◦ Existence =
physical & safety
needs
◦ Relatedness =
social needs
◦ Growth = esteem &
self-actualization
needs

10. How to Motivate Using
Hierarchy & ERG Theories
• General rule of thumb: meet lower-level needs
so people can work on upper-levels.
• With ERG ask:
▫ What are this persons needs?
▫ What needs have been met?
▫ What are the lowest ones that haven’t been met?
▫ Have any higher needs been frustrated & how?
▫ Is the person refocusing on lower levels?
▫ How can the unmet needs be attained?

11. Two-Factor Theory
• Herzberg’s (1950’s) Classification of Needs

12. Motivators & Hygienes
Self-assessment exercise 8.1.
◦ HYGIENES (lower level needs).
 Physical, Safety, Social
 a.k.a. EXtrinsic - external to job itself.
 Pay, job security, job titles, etc.
 Keep people from being dissatisfied – but do not
motivate them.
◦ MOTIVATORS (higher level needs).
 Esteem, Growth, Self-Actualization.
 a.k.a. INtrinsic – internal to individual.
 Achievement, recognition, challenge, etc.
 To be truly motivated and satisfied you must seek and
attain INTERNAL REWARDS – your job must have
meaning to you beyond $$ and titles.

13. Manifest Needs Theory
• McClelland’s Classification
Of Needs.
▫ PERSONALITY based
approach to motivation.
• Self-assessment exercise 8.2.
• Three needs.
▫ ACHIEVEMENT.
▫ POWER.
▫ AFFILIATION.

14. Need for Achievement
• High = problem solvers –
goal-oriented – like
challenges – strive for
excellence – realistic risk
takers – hard workers –
high performers.
• To Motivate = give non-
routine challenging tasks
– lots of feedback and
often – increasing
responsibilities.

15. Need for Power
• High = want to control –
are competitive – don’t
like loosing – willing to
confront others – low
need for affiliation.
• To Motivate = give lots
of autonomy – include in
decision making – work
alone rather than in teams
– give them the whole
task, not just a part of it.

16. Need for Affiliation
• High = like close relationships – need to be
liked – enjoy socializing – like to belong to
groups and organizations – tend to be low Power
people – prefer to follow instead of lead.
• To Motive = work as part of a team – give lots
of praise and recognition – let them train new
people on the job – great mentors.

17. Content Theories

19. Process Motivation Theories
• Attempt to understand How And
Why people are motivated.
• Focus more on
behavior than
need.
▫ Expectancy
Theory
▫ Equity
Theory

20. Expectancy Theory
• Vroom’s Formula
▫ Motivation = Expectancy X Valence
 Depends on how much someone wants
something.
• Expectancy
▫ A person’s perception of their own ability &
what they foresee as outcomes.
▫ Higher expectations = higher motivation.
• Valence
▫ The value placed on the outcome or reward.
▫ Higher value = higher motivation.

21. Expectancy Theory
How To Motivate Using This Theory
◦ Give clear precise goals.
◦ Tie performance to rewards.
◦ Make sure the reward is of value to the
person (remember what one person values
another may not).
◦ Make sure people believe
you will give them the
reward.

22. Equity Theory
Based on the perception of inputs and outputs.
“Does what I put into this job equal what I get out of it?”
“Am I getting what I deserve for the work I do?”
“Am I getting paid equally in comparison to others doing
the same work I am doing?
People must perceive they are being treated equal to
others.
If they perceive they are not - then trouble comes knocking.
When people think they are being treated with equity they
are more motivated to perform.
Most people tend to inflate their own efforts and
performance over others – and also overestimate what
others earn.

24. Motivating with Equity Theory
Be aware equity is based on perception.
◦ Perceptions can be right or wrong.
◦ Some managers have favorites – inequity.
Rewards need to be fair.
◦ If people think they are not being treated fairly then
resentment and retaliation can occur.
High performance needs rewarding.
◦ Must have clear understanding of what they need to do
(input) to get reward (output).
How people feel is what counts most.
◦ What people “know” isn’t as important as how they “feel.”
◦ Inequity makes for high emotionality.

25. Reinforcement Theory
• B.F. Skinner = behavior can be controlled through
the use of positive or negative consequences.
• A.K.A. Behavior Modification or Operant
Conditioning.
• Three Components:
▫ STIMULUS – the event/
something that happens.
▫ RESPONSE – behavior/
performance.
▫ CONSEQUENCES –
reinforcement – positive/
negative.

26. Types of Reinforcement
POSITIVE
◦ Rewarding desired behavior.
◦ Increases possibility of repeated behavior.
NEGATIVE (Avoidance)
◦ Removal of something unpleasant.
◦ Increases possibility of repeated behavior.
EXTINCTION
◦ When reinforcers are not given.
◦ The desired behaviors disappear.
PUNISHMENT
◦ Least effective method of controlling behaviors.
◦ Lowers morale, productivity.
◦ Encourages acts of sabotage, theft, etc.

27. Schedules of
Reinforcement
CONTINUOUS = Every Time.
INTERMITTENT:
◦ FIXED INTERVAL
 Reinforcement after set time.
 Weekly pay check.
◦ VARIABLE INTERVAL
 Reinforcement after a unpredictable time lapse.
 Fishing.
◦ FIXED RATIO
 Reinforcement after a set number of events occur.
 Piecework.
◦ VARIABLE RATIO (HIGHEST PREDICTOR )
 Reinforcement after an average or variable or unpredictable
number of events occur.
 Slot machines.

28. Motivating with Reinforcement
• Make expectations and objectives
clear.
• Use appropriate rewards.
• Use the right reinforcement
schedule.
• Never reward undesired behaviors.
• Focus on positives – reward them.
• Never go a day without praising.
• Do things FOR people not TO them.

30. Motivation Techniques
• Praise
• Objectives and
Management By
Objectives (MBO)
• Job Enrichment
• Job Design

31. Praise
• Research since 1940’s show appreciation and
recognition motivate more than anything else
• Even $$$!

32. Objectives
◦ State what is to be accomplished within
a Certain Time Frame (goals with
deadlines) – should be written.
◦ It Is a Plan for Success.
 Criteria For Objectives (Goals)
 Difficult But Doable.
 Challenging but not impossible.
 Observable And Measurable
 Ability to see and evaluate (keeping score).
 Specific – Target Dates
 Know exactly what and when .
 Participative (When Possible)
 Employee input = better performance.
 Accepted
 Employees must accept and be willing – buy in.

34. Motivation Techniques
• Management By Objectives
(MBO)
▫ The process where managers and
employees Jointly Set Objectives for the
employee.
▫ Three Steps:
 Set Individual Objectives and Plans.
 Give Feedback and Evaluate
Performance (frequently).
 Reward According to Performance.

35. Motivation Techniques
JOB ENRICHMENT
◦ Process of building motivators into the job itself by making
it more interesting and challenging.
 Ways To Do That:
 Delegate More Variety And Responsibility.
 Learn new skills – relieves boredom.
 Form Natural Work Groups.
 Allowing teams to work together instead of in separate
offices – tear down the cubicles?
 Make Employees Responsible For Their Own
Identifiable Work.
 Put the worker’s name on the label!
 Give Employees More Autonomy.
 Flexibility to plan and organize your own job.

36. Motivation Techniques
Job Design
◦ The employee’s system for transforming inputs into outputs.
◦ The more effective the method – the productive the employee.
◦ Job Simplification:
 ELIMINATE
 If something isn’t productive – quit doing it just because
that’s the way it’s always been done.
 COMBINE
 Some tasks can be done at the same time as others – good
time management.
 CHANGE SEQUENCE
 Just changing the order in which things get done sometimes
makes a huge difference in saving time.
 Do the dreaded task first and get it over with!

37. Self Motivation
• Feeling bored…or trapped?
• Try these techniques
(Model 8.3).
▫ Set Objectives
 Decide what you want – get a destination.
▫ Develop Plans – Willpower Alone Fails
 Make a step-by-step plan – prioritize it.
▫ Measure Results
 Get feedback – compare performance to goal.
▫ Reinforce Results
 Reward yourself for successes – and if you slip
start again!

38. Motivation Around the Globe
Cross-Cultural Differences in Motivation
◦ Hierarchy Needs
 Countries at risk may place Security high.
 Countries that value relationships over possessions may
place Social Needs higher.
 Obviously higher-level needs are more relevant to wealthy
societies than to poor ones.
◦ Achievement Needs
 High quantity of life countries value high performance.
 High quality of life countries are not as interested in
performance.
 Individualist societies focus on self-accomplishments.
 Collective societies focus on group-accomplishments.

39. Motivation Around the Globe
Cross-Cultural Differences in Motivation
◦ Individualistic –v- Collective
 Equity is more of a motivator in Individualistic cultures –
with higher producers earning more.
 But even in U.S. (Individualistic) – Worker Unions
(including teachers) tend to prefer equal pay as opposed
to merit pay.
◦ Expectations
 This motivation is flexible and works well within a variety
of countries because it is all relative.
◦ Goal Setting
 Not as important in countries where quality of life is
valued over quantity of life issues.

40. Chapter Review
• Motivation Process
& Performance
• Motivation Theories
▫ Content Theories
▫ Process Theories
▫ Reinforcement
Theories
• Motivation
Techniques