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Motivating Employees

Chapter 9

1. What is motivation?

2. How can needs help one be motivated?

3. What are the contemporary theories of motivation?

4. What are some current issues in motivation?

5. What can managers learn from motivation theories?

Learning Objectives

What is Motivation • Motivation

– Is the willingness of an individual to exert high levels of effort to reach organizational goals, conditioned by the effort’s ability to satisfy some individual need

• Effort: a measure of intensity or drive • Direction: effort directed toward organizational goals • Need: personalized reason to exert effort

– Motivation works best when individual needs are compatible with organizational goals

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How can “needs” help motivation?

• Early theories of motivation 1. Maslow’s Hierarchy of Needs Theory 2. McGregor's Theory X and Theory Y 3. Hertzberg’s Motivation-Hygiene

Theory 4. McClelland’s Theory of Needs

Maslow’s Hierarchy of Needs Theory

• Human needs are categorized in five levels – 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

McGregor’s Theory X and Theory Y • There are two distinct views of human nature …

• According to “Theory X” – Employees have little ambition, dislike work, avoid

responsibility, and require close supervision • According to “Theory Y”

– Employees can exercise self-direction, accept and seek out responsibility, and like to work

• Both views are based on two types of motivators: – Extrinsic motivators (external aspects such as pay, bonuses

and tangible rewards) – Intrinsic motivators (internal aspects such as interest,

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Hertzberg’s Motivation-Hygiene Theory • Motivators are intrinsic factors that increase job satisfaction and motivation – Achievement, recognition, and responsibility

• Hygiene factors are extrinsic factors that eliminate job dissatisfaction, but don’t motivate – Supervision, policies, relationships, working

conditions • According to Hertzberg the opposite of

satisfaction is not dissatisfaction – Consequently, removing hygiene factors does not

McClelland’s Theory of Needs • According to McClelland there are three

acquired (not innate) needs that motivate work performance – Need for achievement (nAch)

• Desire to excel, to achieve in relation to set standards and succeed

– Need for power (nPow) • Desire to make others behave in a way they may not have

otherwise

– Need for affiliation (nAff) • Desire for friendly and close relationships

Contemporary Theory of Motivation • Four-Drive Theory

• Reinforcement Theory

• Equity Theory

• Expectancy Theory

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Four-Drive Theory Describes motivation in four categories:

1. Drive to acquire • For material goods, status, accomplishment & power

2. Drive to bond • Engage in mutually beneficial relationships

3. Drive to learn • Satisfy curiosity, understand ourselves & the world

around us

4. Drive to defend • Self-protection

Reinforcement Theory According to Reinforcement Theory … • Behaviour is influenced by consequences • “Reinforcers” are consequences that, when

given immediately following a behaviour, increases the probability that the behaviour will be repeated

• Emphasis is on positive reinforcement, meaning … managers should ignore, not punish, unfavourable behaviour

Equity Theory • An employee compares his or her job’s inputs-

outcomes ratio with that of relevant others – If the ratios are perceived to be 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) • Originally focused on distributive justice • Recent research focused on procedural justice

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Equity Theory (cont’d)

• Employee responses to perceived inequities: – Distort own or others’ inputs or outcomes – Induce others to change their inputs or outcomes – Change own inputs or outcomes – Choose a different comparison person – Quit their job

Expectancy Theory • Individuals tend to act based on the expectation that the act

will be followed by a given outcome and that outcome will be attractive to them

• The relationship between effort, performance and rewards is important – Effort performance linkage (expectancy): Employee expects

that certain amount of effort will lead to a certain performance

– Performance-reward linkage (instrumentality): Belief that a certain performance will lead to the attainment of a desired outcome

– Attractiveness of Rewards (valence): The importance that individuals place on the outcome or reward that can be achieved

Current Issues in Motivation • Motivating a Diverse Workforce

1. Employees from Diverse Cultures • What motivates individuals in one culture may do the opposite in

another culture

2. Minimum-Wage Employees • Money is not the only motivator; recognition, performance awards

and empowerment may also motivate

3. Professional and Technical Employees • This group values challenging work, problem solving and

educational opportunities

4. Contingent workers • Provide opportunity to become a permanent employee or offer

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Designing Effective Reward Programs

• The Role of Money

• Employee Recognition Programs

• Pay-for-Performance Programs

• Stock Option Programs

Improving Work-Life Balance

• Flexible Work Schedules

• Job Sharing

• “Telework”

What can managers learn from motivation theories?

• Recognize individual differences • Match people to jobs • Individualize rewards • Link rewards to performance • Check the system for equity • Use recognition • Don’t ignore money