reward motivational theories
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Theories of Motivation
Theories of MotivationEarly (Content) Theories
“Emphasis on what motivates individuals”
1. Maslow’s Hierarchy of Needs
2. ERG Theory of Alderfer3. Gregor’s Theory X and
Theory Y4. Herzberg’s Two-Factor
Theory5. McClelland’s Theory of
Needs
Contemporary (Process) Theories
“Emphasis on actual process of motivation”
1. Cognitive Evaluation Theory
2. Goal-Setting Theory3. Self-Efficacy Theory4. Reinforcement Theory5. Equity Theory6. Vroom’s Expectancy
Theory2
Behavioural Theories
• Each reward or element of compensation/ reward has abehavioural objective and seeks to fulfill a need( physiologicalor psychological) and achieve a goal.
• Two groups of motivation theories
Content theories
Process theories
Maslow’s Hierarchy of Needs
Lower-Order NeedsSatisfied externally
Higher-Order
Needs
Satisfied
internally
4
Maslow’s Need Hierarchy Theory•Proposed by Abraham Maslow.•There are 5 levels of needs.•Needs are arranged in order of importance•Lower level needs must be met first.•Each level must be at least minimally satisfied before a higher level need occurs•Only unmet needs motivate
Hierarchy of Needs Theory
There is a hierarchy of five needs—physiological, safety, social, esteem and self-actualization; as each need is substantially satisfied, the next need becomes dominant
ERG Theory (Clayton Alderfer)
There are three groups of core needs: existence,relatedness, and growth.Core NeedsExistence: provision of basic material
requirements.Relatedness: desire for relationships.Growth: desire for personal development.
Comparison of Hierarchy of Needs & ERG Theories
Physiological
Safety & Security
Love (Social)
Esteem
SA
Existence
Relatedness
Growth
Theory X and Theory Y (Douglas McGregor)
Theory XNegative view of human-beings: Assumes that employees dislike work, lack ambition, avoid responsibility, avoid leading and prefers to be led and supervised; must be directed and coerced to perform Theory Y
Positive view of human-beings: Assumes that employees like work, seek responsibility, are capable of making decisions, exercise self-direction and self-control; Commitment to goals and objectives is a function of rewards available, especially appreciation and recognition
He believed that assumptions of Theory Y were more valid; and, prescribed ideas such as Participative decision-making, Responsible & Challenging job assignments, etc. to motivate employees
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Hertzberg's Two-Factor Theory• Proposed by Frederick Hertzberg.• Also known as Motivation- Hygiene theory.Hygiene factors avoidjob dissatisfaction
•Company policy &administration• Supervision• Interpersonal relations• Working conditions• Salary• Security
Motivation factorsincrease job satisfaction•Achievement• Achievement recognition• Work itself• Responsibility• Advancement• Growth
Satisfaction is affected by motivators and dissatisfaction by
hygiene factors.
• Hygiene factors/ extrinsic factors are related to lower level
needs
• Motivating factors/ intrinsic factors relates to higher level
needs
David McClelland’s Theory of Needs / Acquired Needs Theory
nAch
nPow
nAffNeed for AchievementThe drive to excel, to achieve in relation to a set of standards, to strive to succeed
Need for AffiliationThe desire for maintaining friendly and close personal relationships
Need for PowerThe need to make others behave in a way that they would not have behaved otherwise; the desire to control others, to influence their behavior, or to be responsible for others
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Content Theories: Summary
Maslow
HygieneFactors
Need for Power
Need for Affiliation
Maslow
Self-Actualization
Esteem
Affiliation
Security
Physiological
Motivators
Relatedness
Existence
Growth
Alderfer Herzberg McClelland
Need for Achievement
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Theory asserts that motivation and performance are in part dependent on the degree to which the individual believes he/she can accomplish the taskSelf-efficacy refers to a person’s belief in his/her ability to perform a given taskThose who have high self-efficacy are more likely to try hard and exhibit high levels of commitment (persistence) on a given task; they are more likely to succeed as a resultSelf-efficacy interacts with goal setting in so far as people with higher self-efficacy tend to set more challenging goals
Self-Efficacy Theory
Ways to increase Self-Efficacy are:1. Enactive Mastery - Relevant Past Experience
2. Vicarious Modeling – Seeing someone else does the task
3. Verbal Persuasion - Someone convincing the individual of possessing necessary skills
4. Arousal – An energized state / mood
Concepts:
Behavior is environmentally caused
Behavior can be modified (reinforced) by providing (controlling) consequences
Reinforced behavior tends to be repeated
Various Reinforcement schedules are in use
Concepts:
Behavior is environmentally caused
Behavior can be modified (reinforced) by providing (controlling) consequences
Reinforced behavior tends to be repeated
Various Reinforcement schedules are in use
The assumption that behavior is a function of its consequences
Reinforcement Theory
•Contradictory to Goal-setting theory which is a cognitive approach (individual’s purposes direct his behaviour)• Theory ignores feelings, expectations, attitude, etc. of a person to affect his behaviour
Equity Theory• Put forward by John Stacey Adams• According to this theory an employee who perceives inequityin his or her rewards seeks to restore equity.• The theory emphasizes equity in pay structure of employeesremuneration.• When the employees perceive inequity it can result in lowerproductivity, higher absenteeism and increase in turnoverDimensions of equity• Internal equityEmployees should feel that pay differentials are fair,given the corresponding differences in jobresponsibilities• External equityJobs are fairly compensated in comparison to similarjobs in the Labour market• Individual equityIt ensures equal pay for equal job
Expectancy Theory• Proposed by Victor Vroom
• Also Known as V-I-E Theory
• The strength of a tendency to act in a certain way depends on
the strength of an expectation that the act will be followed by
a given outcome and on the attractiveness of that outcome to
the individual.
Expectancy Theory of
Motivation: Key Constructs
• Valence - value or importance placed on a particular
reward/outcome
• Expectancy - belief that effort leads to performance
• Instrumentality - belief that performance is related to
rewards/ or the belief that first level of outcome will lead
to second level of outcome
Individual Effort- >individual Performance ->Organizational Rewards-> Personal Goals
• Effort performance relationship
• Performance-Reward relationship
• Rewards- personal goals relationship
Goal Setting Theory of Motivation
In 1960’s, Edwin Locke put forward the Goal-setting theory of motivation
It states that specific and challenging goals along with appropriate feedback contribute to higher and better task performance.
In simple words, goals indicate and give direction to an employee about what needs to be done and how much efforts are required to be put in.
Advantages of Goal Setting Theory•Goal setting theory is a technique used to raise incentives for employees to complete work quickly and effectively.
•Goal setting leads to better performance by increasing motivation and efforts, but also through increasing and improving the feedback quality.
THANK YOU………
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