MOTIVATION Academic Materials for MBA

Compiled by:Gopal Salim

056-7123960

MOTIVATION

Starbucks Corporation

FoundedPike Place Market in Seattle, Washington (March 30, 1971 (1971-03-30))

Founder(s)Jerry BaldwinGordon BowkerZev Siegl

Headquarters Seattle, Washington, U.S.Number of locations 17,009 (FY 2010)Area served 50 countries

Key peopleHoward Schultz(Chairman, President and CEO)

Motivation - Meaning• The word ‘Motivation’ is derived from the Latin Term

‘Movere’ which means ‘Move’.• Motivation is “the processes that account for an individual’s

INTENSITY, DIRECTION and PERSISTENCE of effort towards attaining a goal” ( Stephen P. Robbins)

• Motivation means to move. It includes three common characteristics:

1. It concerns with what activates human behavior2. It involves what directs this behavior towards a particular

goal.3. Motivation concerns how this behavior is sustained or

supported.

INTENSITY How hard a person tries.

DIRECTION Orientation towards goals

PERSISTENCE How long can maintain effort

• Motivation has got three common characteristics:1. It concerns with what activates human

behavior2. It involves what directs this behavior towards a particular goal3. Motivation concerns how this behavior is

sustained (supported)

Motivation ProcessNeed Drive/Goal Directed

BehaviorGoal

Incentive/Relief

BASIC CHARACTERISTICS OF WORK MOTIVATION

• Direction of behavior & is psychological• Level of effort• Level of persistence• Intrinsic and extrinsic motivation• Dynamic and situational• Not easily observed phenomenon• Motivation is goal oriented process• Motivation is influenced by social and cultural

norms

THEORIES OF MOTIVATION• Theories categorized into two groups.• CONTENT THEORIES

– McGregor’s Theory X and Theory Y– Maslow’s Hierarchy of Needs Theory– ERG Theory– Two Factor Theory– McClelland’s Achievement Motivation Theory

• PROCESS THEORIES– Expectancy Theory– Equity Theory– Porter & Lawler Theory

MASLOW’S HIERARCHY OF NEEDS

• People are not merely controlled by mechanical forces (stimuli and reinforcement) or unconscious instinctual impulses of psychoanalysis.

PHYSIOLOGICAL NEEDS

SAFETY NEEDS

LOVE, AFFECTION & BELONGINGNESS (SOCIAL)

ESTEEM

SELF ACTUALIZATION

BASIC NEEDS ( PAY )

SECURITY NEEDS ( Seniority plan, health insuranceemployee assistance plan, pension etc)

SOCIAL NEEDS ( Formal or informal workGroups, Teams etc)

STATUS ( Titles, symbols, Promotion etc)

SELF ACTUALIZATION(Personal Growth,

realization of potential)

LOW

ER L

EVEL

NEE

DSHI

GHER

LEV

EL N

EEDS

ERG THEORY ( Alderfer 1972)

EXISTENCE(Survival)

RELATEDNESS(Interpersonal social

relationship)

GROWTH(Intrinsic Desire for

Personal Development)

2.ERG THEORY &MASLOW’S THEORY

EXISTENCE(Physiological Needs & Safety Needs)

RELATEDNESSSocial Needs & Esteem Needs

GROWTHExternal Esteem &Self Actualization

Difference Between ERG Theory and Maslow’s Theory

• More than one need may be operative at the same time

• If the gratification of a higher level need is stifled, the desire to satisfy a lower level need increases

• ERG Theory does not assume that there exists a rigid hierarchy. A person can be working on growth even though existence or related needs are unsatisfied or all three need categories could be operating at the same time

3.HERZBERG’S TWO FACTOR THEORY

• According to Herzberg , the factors leading to job satisfaction are separate and distinct from those that lead to job dissatisfaction.

• He makes the following contention about satisfaction and dissatisfaction.

Contrasting Views of Satisfaction and Dissatisfaction

SATISFACTION DISSATISFACTION

SATISFACTION NO SATISFACTION

NO DISSATISFACTION DISSATISFACTION

TRADITIONAL VIEW

HERZBERG VIEW

Contrasting Views of Satisfaction and Dissatisfaction

DISSATISFACTION & DEMOTIVATION

EMPLOYEE NOT DISSATISFIED, BUT NOT MOTIVATED

POSITIVE SATISFACTION &

MOTIVATION

Major Components of Herzberg Two Factor Theory

EXTRINSIC/HYGIENEFACTORS

Company Policy & Admn.Relationship with supervisorWorking conditionsPersonal LifeStatusSecuritySupervision etc

INTRINSIC/MOTIVATORSFACTORS

AchievementRecognitionWork itselfResponsibilityAdvancementGrowth

• Motivators are associated with long term positive effects in job performance

• Hygiene factors consistently produced only short term changes in job attitude and performance

• Satisfiers describe a person’s relationship with what he or she does and it relates to the tasks being performed

• Dissatisfiers have to do with a person’s relationship to the context or environment in which he or she performs the job

3.McClelland's Theory

OfNeeds

McClelland's theory is based on TAT McClelland identified three themes on such

TAT stories, with each corresponding to an underlying need that he believes is important for understanding individual behavior.

These needs include: Need for Achievement (nAch) Need for Power (nPow) Need for Affiliation (nAff)

nAch (High n Achievers)

• nAch• Derive satisfaction

from reaching goals• Feeling of successful

task accomplishment• Immediate feedback

on performance• Moderate risk takers• Work independently

High n Achievers

• Joint Walt Disney in 1996

• Made turnaround for Disney’s ABC Family channel

• Became President of ABC Television in 2004

High n Achievers

• Indra Krishnamurthy Nooyi

• CEO of Pepsi

nPow (High n Powerful)• nPow• Derives satisfaction from

his or her ability to control others

• Actual achievement of goal is not very important but the means are of primary importance

• Derive satisfaction from being in positions of influence and control

nPow (High n Powerful)

nAff (High n Affiliated)

• nAff• Satisfaction from

social and interpersonal activities

• Strong interpersonal ties and to get close to people psychologically

nAff (High n Affiliated)Muhammad Yunus : Micro Banking

: BangladeshNelson Mandela : South Africa

Assumptions of the theory• Individuals with a high need to achieve prefer job

situations with personal responsibility, feedback, moderate risk

• A high need to achieve does not necessarily leads to being a good manager, especially in large organizations as they are more interested in how well they do personally

• The needs for affiliation and power tend to be closely related to managerial success. The best managers are high in their need for power and low in their need for affiliation

4. Goal Setting Theory (Locke & Latham 1990)

• Challenging goals produce a higher level of output than do the generalized goals

• More difficult the goal, the higher the level of performance

• People do well when they get feedback• Goal serves as a motivator, because it causes

people to compare their present capacity to perform with that required to succeed at the goal

Goal Setting Theory

• There are four contingencies in goal setting theory:

1. Goal Commitment2. Adequate self-efficacy3. Task characteristics4. National culture ( North American)

5. EQUITY THEORY (Adams)

• Employees make comparisons of their job inputs and outcomes relative to those of others

• If an individual feels that his input-output is equal to that of others, a state of equity exists

• He will perceive the situation as fair• If ratio is unequal, the individual experience

inequity

Referent comparisons used by employees

• SELF-INSIDE• An employee’s experiences in a different position inside his or her

current organization• SELF-OUTSIDE• An employee’s experiences in a situation or position outside his or

her current organization• OTHER-INSIDE• Another individual or group of individuals inside the employee’s

organization• OTHER-OUTSIDE• Another individual or group of individuals outside the employee’s

organization

Crucial Issues in Equity Theory

• Employees with short tenure in their current organizations tend to have little information about others

• Employees with long tenure rely more heavily on co-workers for comparison

• Upper level employees will make more other-outside comparisons

Choice in Inequity

• Change their inputs• Change their outcomes• Distort perceptions of self• Distort perceptions of others• Choose a different referent• Leave the field

Organizational Justice

1. DISTRIBUTIVE JUSTICE• The perceived fairness of the way rewards are

distributed among people2. PROCEDURAL JUSTICE• Perceptions of the fairness of the procedures used to

determine outcomes3. INTERACTIONAL JUSTICE• The perceived fairness of the interpersonal treatment

used to determine organizational outcomes

6. EXPECTANCY THEORY – Victor H. Vroom

VALENCY X EXPECTANCY

MOTIVATION

ACTION

GOAL ACHIEVEMENT

SATISFACTION

Determinants of Motivation• EXPECTANCY• The belief that one’s efforts will positively influence one’s

performance• INSTRUMENTALITY• An individual’s beliefs regarding the likelihood of being

rewarded in accord with his or her own level of performance• VALENCE• The value a person places on the rewards he or she expects to

receive from an organization• OTHER DETERMINANTS• Skills, abilities, role perceptions, opportunity to perform etc

MOTIVATIONAL FORCE

EXPECTANCY

INSTRUMENTALLITIES

OUTCOME 1

OUTCOME 2

OUTCOME 1A

OUTCOME 1B

OUTCOME 2A

OUTCOME 2B

OUTCOME 2C

FIRST LEVEL OUTCOME

SECOND LEVEL OUTCOME

Key Relationships in Expectancy Theory

Individual Effort

Individual Performance

Organizational Rewards

Personal Goals

Three Key Relationships

• EFFORT – PERFORMANCE RELATIONSHIP• PERFORMANCE – REWARD RELATIONSHIP• REWARDS – PERSONAL GOALS RELATIONSHIP

PERFORMANCE FORMULA

• Performance of an employee is based on ABILITY, OPPORTUNITY AND MOTIVATION

• Therefore PERFORMANCE = f ( A X M X O )Where A is ability

M is motivationO is opportunity

PERFORMANCE IMPACT

ABILITY

MOTIVATION OPPORTUNITY

PERFORMANCE

Application of Motivation Theories

1. Goal Setting Goal setting is used to motivate staff in

organization The use of goal to motivate task

accomplishment draws on two primary attributes: (i) The Content of Goal and (ii) Level of Intensity in Working Towards it.

Application of Motivation Theories(i) Current Level of Difficulty Goal should be challenging enough to induce high levels of

effort So the managers should take this factor into consideration while

setting goals to the employees.(ii) Level of Intensity in Working Towards Goal There can be three ways in which goals can be set. They are:a. When goals are assigned by the management b. Where members are asked to participate in goal settingc. When members are told to do their best Studies prove that the first two methods are more effective in

motivating the people to achieve their targets and goals.

Goals IMPORTANCE OF GOALS Goals guide and direct behavior Goals serve as an organizing function Goals provide benchmarks Goals may define the basis for organizational design. LIMITATIONS OF GOAL SETTING If employees lack skill and ability, they may not be

able to achieve the goals When the employees are given complicated task, goal

setting fails

Goals

REACTION OF DISSATISFIED EMPLOYEES1. Job avoidance ( quitting)2. Work avoidance (absenteeism, arriving late or

leaving early)3. Psychological defenses ( alcohol, drug abuse

etc)4. Constructive protest (complaining)5. Defiance (Refusing to do what is asked)6. Aggression (theft or assault)

REWARD SYSTEM FOR HIGH PERFORMANCE

Reinforcement or reward system is the process of managing behavior or reshape behaviors by having a contingent consequence follows behavior

The ability of the reward to motivate individuals or a team of high performance depends on the following factors:

a. Availability of rewardsb. Timeliness of rewardsc. Performance contingency: Linkage between performance and

rewardsd. Durability of rewardse. Equity in providing rewardsf. Visibility of rewards