Lecture 8

Motivation

Chapter 9
Motivation

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Learning Objectives
1. Explain what motivation is and why managers need
to be concerned about it
2. Describe from the perspectives of expectancy theory
and equity theory what managers should do to have
a highly motivated workforce
3. Explain how needs motivate people
4. Explain why and how managers can use pay as a
major motivation tool

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The Nature of Motivation

Motivation
The psychological forces that determine the direction
of a persons behaviour in an organization, a persons
level of effort, and a persons level of persistence
Direction
possible behaviors the individual could engage in

Effort
how hard the individual will work

Persistence
whether the individual will keep trying or give up
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The Nature of Motivation

Intrinsically Motivated Behavior
Behaviour that is performed for its own sake

Extrinsically Motivated Behavior

Behaviour that is performed to acquire material
or social rewards or to avoid punishment

Prosocially motivated behavior

Behaviour performed to benefit or help others

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The Nature of Motivation

People join organizations to obtain certain outcomes
while organizations hire people to obtain important
inputs.

Outcome
Anything a person
gets from a job or an
organization
Pay, job security,
autonomy,
accomplishment

Input
Anything a person
contributes to his or
her job or organization
Time, effort, skills,
knowledge, work
behaviors
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The Motivation Equation

Figure 9.1

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Expectancy Theory
Formulated by Victor H. Vroom
The theory that motivation will be high when
workers believe that:
high levels of effort lead to high performance
(high value of Expectancy) (E: 0 to 1); and
high performance leads to the attainment of
desired outcomes [high value of Instrumentality (I)
and high positive value of Valence (V)]
(I: 0 to 1) (V: -1 to +1)
Motivation = V I E (Range from -1 to +1)
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Three factors Expectancy,

Instrumentality, and Valence
Figure 9.2

E: 0 to 1

I: 0 to 1

V: -1 to +1
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Expectancy Theory
Figure 9.3

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Expectancy Theory:
Management Implications
Factors

Objective

Management implications

Expectancy

Increase employees
belief that if they do try
hard, they can actually
succeed

Express confidence in the employees

capabilities
Provide training so employees have the
expertise needed for high performance
Increase employees levels of autonomy and
responsibilities

Instrumentality

Increase employees
Link performance to desired outcomes
belief that good
Clearly communicate this linkage to
performance will result in
employees
certain (valued) outcomes Make sure that outcomes available are
distributed on the basis of performance

Valence

Increase the expected

value of outcomes
resulting from desired
performance

Determine which outcomes have high

valence are highly desired - for employees
Make sure those outcomes are provided
when employees perform at a high level

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Need Theories
Theories of motivation that focus on what needs
people are trying to satisfy at work and what
outcomes will satisfy those needs
Basic premise is that people are motivated to
obtain outcomes at work to satisfy their needs
To motivate a person to perform at high level,
manager must

determine what needs the person is trying to satisfy

at work
ensure that the person receives outcomes that help
to satisfy those needs when the person performs at a
high level and helps the organization achieve its goals
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Maslows Hierarchy of Needs

All people seek to satisfy five basic kinds of needs:
physiological needs, safety needs, belongingness
needs, esteem needs, and self-actualization needs,
which constitute a hierarchy of needs
The lowest-level needs must be met before a person
strives to satisfy needs higher up in the hierarchy
Once a need is satisfied, it ceases to operate as a
source of motivation
The lowest level of unmet needs is the prime
motivator of behaviour; if and when this level is
satisfied, needs at the next highest level motivate
behaviour
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Maslows Hierarchy of Needs

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Herzbergs MotivationHygiene Theory

A need theory that distinguishes between
motivator needs and hygiene needs and
proposes that motivator needs must be met
for motivation and job satisfaction to be high.
Motivator needs relate to the nature of the
work itself and how challenging it is
Hygiene needs are related to the physical and
psychological context in which the work is
performed
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Herzbergs MotivationHygiene Theory

Motivator needs:
Achievement
Recognition
Work itself
Responsibility
Advancement & growth

Hygiene needs:
Salary
Working conditions
Interpersonal relationships
Supervisors
Security

Extreme
dissatisfaction

No
dissatisfaction

Neutral

No satisfaction

Extreme
satisfaction
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McClellands Needs for Achievement,

Affiliation, and Power
Need for Achievement
Extent to which an individual has a strong desire to
perform challenging tasks well and to meet personal
standards for excellence

Need for Affiliation

Extent to which an individual is concerned about

establishing and maintaining good interpersonal
relations, being liked, and having the people around
him get along with each other

Need for Power

Extent to which an individual desires to control or

influence others
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Equity Theory
Formulated by J. Stacy Adams
This theory says that employees perceive what they
get from a work situation (outcomes) in relation to
what they put into it (inputs), and then compare
their outcome/input ratio with the outcome/input
ratio of relevant others
Equity
Justice, impartiality, and fairness to which all organizational
members are entitled

Inequity
Lack of fairness
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Equity Theory

Table 9.2

Underpayment inequity
exists when a person perceives that his own outcomeinput ratio
is less than the ratio of a referent

Overpayment inequity
exists when a person perceives that his own outcomeinput ratio
is greater than the ratio of a referent
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Equity Theory
When people experience underpayment
inequity they may be motivated to:
Lower their inputs by reducing their working hours,
putting forth less effort on the job, or being absent
Increase their outcomes by asking for a raise or a
promotion

When people experience underpayment or

overpayment inequity, they may try to restore

equity by changing their perceptions of their
own or their referents inputs or outcomes
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Pay and Motivation

Pay as a Motivator
Expectancy theory:
Instrumentality, the association between performance
and outcomes, must be high for motivation to be high.
Pay is an outcome that has high valence for many
people.

Need Theory: pay is used to satisfy many needs.

Equity Theory: pay should be given in relation to
inputs
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Reference
McGraw-Hill Education (2014). BUS10306
Management customized text, Chapter 8.

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