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MGF1010: Introduction to Management

Week :Motivation

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• Slideshare

• MGF1010

• http://www.slideshare.net/kirtimishra11

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Aims

• Define motivation and understand its importance

for managers.

• Discuss content and process theories, the basic

concepts behind each and ensure students

understand what theories apply to each.

• Recognise the TWO content theories (Herzberg’s

two-factor theory and Three-needs Theory

McClelland) and TWO process theories (Equity

theory and Expectancy theory).

• Consider the role of money as a motivator based

on the above theories.

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Motivation exercise

• Motivation to work

• Think about your own motivation,

• Compare your own experiences with

Herzberg’s theory of motivation

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What is Motivation

Motivation is the process by which a person’s efforts are

energised, directed and sustained towards attaining a goal.

Three key elements are important to this definition: energy,

direction and persistence.

The energy element is a measure of intensity or drive. A

motivated person puts forth effort and works hard.

High levels of effort are unlikely to lead to favourable job

performance unless the effort is channelled in a direction that

benefits the organisation.

Finally, motivation includes a persistence dimension. We want

employees to persist in putting forth effort to achieve those

goals.

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Theories of Motivation to Work

Content what motivates an individual

• Hierarchy of Needs

– Maslow

• Theory X and Y

– McGregor

• Two-Factor Theory

– Herzberg

• Three-Needs

– McClelland

Processhow motivation is

energised and

sustained

• Goal Setting

• Reinforcement

• Equity

• Expectancy

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Content Theories

• Maslow• Physiological needs (basic food,

drink, water, shelter and sexual

needs),

• Safety needs (security and protection

from physical and emotional harm),

• Social needs (affection,

belongingness, acceptance and

friendship),

• esteem needs (internal factors such

as self-respect, autonomy and

achievement, and external factors

such as status, recognition and

attention)

• Self-actualisation needs (a person’s

drive to become what he or she is

capable of becoming)

• McGregor• Theory X is the assumption that

employees dislike work, are

lazy, seek to avoid responsibility

and must be coerced to perform.

• (lower order needs)

• Theory Y is the assumption that

employees are creative, enjoy

work, seek responsibility and

can exercise self-direction.

• (higher order needs)

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McClelland

• Need for achievement (nAch): is the

drive to excel, to achieve in relation

to a set of standards and to strive to

succeed.

• Need for power (nPow):the need to

make others behave in a way that

they would not behave otherwise

• Need for affiliation (nAff): is the

desire for friendly and close

interpersonal relationships

Herzberg Extrinsic factors = Job Dissatisfaction

Intrinsic factors = job satisfaction.

1. Hygiene factors/ Extrinsic factors: These were

things like, for example, company policy,

relationship with supervisor, working

conditions and salary.

2. Motivators/Intrinsic factors: The factors

associated with satisfaction he termed

motivators. These were, for example,

achievement, recognition, work itself,

responsibility, and advancement and growth.

According to Herzberg, managers who sought to

eliminate job dissatisfaction could bring about

workplace harmony, but not necessarily

motivation. In order to increase job satisfaction,

Herzberg suggested managers look at improving

the motivators in the employee’s work situation.

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Equity Theory

Employees perceive what they get

from a job situation (outcomes) in

relation to what they put into it

(inputs) and then compare their

inputs–outcomes ratio with those of

relevant others (referents).

The referents are the persons, systems

or selves against which individuals

compare themselves to assess equity.

Equity theory recognises that

individuals are concerned with their

absolute rewards as well as the

relationship of those rewards to what

others receive. If employees perceive

inequity, they will act in different ways

to correct the situation.

Expectancy

Individual tends to act in a certain way

based on the expectation that the act will

be followed by a given outcome and on

the attractiveness of that outcome to the

individual. Three relationships are

important to this theory

Effort–performance (EXPECTANCY): is the probability

perceived by the individual that exerting a given amount of

effort will lead to a certain level of performance.

Performance–reward(INSTRUMENTALITY): is the

degree to which an individual believes that performing at a

particular level is instrumental in, or will lead to, the

attainment of a desired outcome.

Attractiveness of reward (VALENCE): Attractiveness of

the reward (valence) is the importance that the individual

places on the potential outcome or reward that can be

achieved on the job.

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Justice

Distributive justiceDistributive justice is the

perceived fairness of the amount

and allocation of rewards among

individuals.

Influences Employee satisfaction

more

Procedural JusticeProcedural justice is the perceived

fairness of the process used to

determine the distribution of

rewards.

Influences employee commitment

& trust in supervisors.

The implication of this is that managers should consider openly sharing

information on how allocation decisions are made, follow consistent and

unbiased procedures, and engage in similar practices to increase the

perception of procedural justice. By increasing the perception of procedural

justice, employees are likely to view their bosses and the organisation as

positive even if they are dissatisfied with pay, promotions and other personal

outcomes.

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Cross-cultural challenges of motivation.

In today’s global environment, motivational programs that work in one location

may not be effective in another.

There is an American bias in some of the motivational theories.

For example, in Japan, Greece and Mexico security needs would be at the top

of Maslow’s hierarchy. The motivation concept of achievement need clearly has

an American bias. Equity theory is also relatively strong in countries where

salaries are based on pay-for-performance systems.

However, there are some aspects of motivation theory that appear to be

transferable. For instance, reinforcement techniques have shown themselves to

be effective in changing performance-related behaviours in different countries.

There also seems to be some universality to the importance of intrinsic factors

identified by Herzberg in his two-factor theory.

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Discuss the challenges managers face in

motivating unique groups of workers

Motivating a diverse workforce requires managers to think in terms of

flexibility.

Employees have different personal needs and goals that they are hoping to satisfy

through their job. A diverse array of rewards is needed to motivate employees with such

varied needs. Offering options such as compressed work-weeks, flexible work hours, job

sharing and telecommuting can be some solutions. There are also particular groups that

may offer special challenges.

For example, special challenges in motivating professionals include their long-term

commitment to their field of expertise, to which they will display greater loyalty than to

any one employer. Money and promotions are typically low on professionals’ priority list.

Contingent workers, on the other hand, lack the security that permanent employees have

and do not identify with or display much commitment to the organisation. Temporary

workers also typically lack benefits such as superannuation. Low-skilled minimum-wage

workers typically have limited education and skills, therefore, offering higher pay is

usually not an option.

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List some practical suggestions for

motivating employees

• recognise individual differences,

• match people to jobs,

• use goals,

• ensure that goals are perceived as attainable,

• individualise rewards,

• link rewards to performance,

• check the system for equity,

• don’t ignore money.

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Lets Discuss

In pairs discuss:

• Most of us have to work for a living, and a job is a central

part of our lives. So, why do managers have to worry so

much about employee motivation issues?

• Describe a task you have done recently for which you

exerted a high level of effort. Explain your behaviour by

using any of the motivation approaches described in the

chapter.

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Class Discussion

• In Groups of 3

• If you had to develop an incentive system

for a small food-manufacturing company

with mostly unskilled employees, which

elements from which motivation

approaches or theories would you use?

Why? Would your choice be the same if it

was a software design firm with mostly

skilled employees?

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Case Study –Auspol Case

• Groups of 2 – 4

• Identify the problems

• Classify the problems (theory)

> Organisational Culture

> Leadership

> Motivation

> What are potential solutions

• Recommendations