Session 3 : Motivational Theories

1. Maslow’s Theory :- Maslow's hierarchy of needs is a motivational theory in psychology

comprising a five-tier model of human needs, often depicted as hierarchical levels within a
pyramid.
Needs lower down in the hierarchy must be satisfied before individuals can attend to needs
higher up. From the bottom of the hierarchy upwards, the needs are: physiological, safety,
love and belonging, esteem and self-actualization.

Physiological needs - these are biological requirements for human survival, e.g. air, food,
drink, shelter, clothing, warmth, sex, sleep.
2. Safety needs - protection from elements, security, order, law, stability, freedom from
fear.
3. Love and belongingness needs - the third level of human needs is social and involves
feelings of belongingness.
Examples include friendship, intimacy, trust, and acceptance, receiving and giving affection
and love. Affiliating, being part of a group (family, friends, work).
4. Esteem needs - dignity, achievement, mastery, independence, status, prestige.
5. Self-actualization needs - self-fulfilment, seeking personal growth. A desire “to become
everything one is capable of becoming”.
 2. The Adam's Equity Theory:-
This theory was introduced by John Adams. This theory tells us that individuals
compare their job inputs and outcomes with those of others and then respond to
eliminate any inequalities.
posits that people maintain a fair relationship between the performance and
rewards in comparison to others.
Inputs typically include:
Effort.
Loyalty.
Skill.
Adaptability.
Flexibility.
Acceptance of others.
Determination.
Outputs typically include:
Financial rewards (such as salary, benefits, perks).
Intangibles that typically include:
Recognition.
Reputation.
Responsibility.
Praise.
Job security.
Practical concepts of variable pay?

i. Under rewarded employees produce larger quantities of lower-quality piece work than
equitably rewarded employees.
ii. Over rewarded hourly employees produce more than equitably rewarded employees.
iii. Over rewarded piece-work employees produce less, but does higher quality piece work.
iv. Under rewarded hourly employees produce lower quality work.
 3. Vrooms expectancy theory or valence theory: -
This theory is given by Victor Vroom. This theory says that Expectancy theory is basically
based on the idea that work effort need to be and people believe in desire outcomes.

The expectancy theory says that individuals have different sets of goals and can be
motivated if they have certain expectations.

Vroom realised employee’s performance is based on individual factors such as

personality, skills, knowledge, experience and abilities.
Vrooms theory is based on 3 beliefs: -

Valence – The depth of the want of an employee for extrinsic (money, promotion, time off, benefits)
or intrinsic (satisfaction rewards). Management must discover what employees’ value.

Expectancy – Employees have different expectations and levels of confidence about what they are
capable of doing) management must discover what resources, training or supervision employees
need.

Outcome - Result

1. Effort to performance: - It is an individual’s probability that specific effort will result to

specific performance level
2. Performance to Outcome – An individual’s probability that specific performance level will
result to specific outcome
3. Outcome – It is anticipated satisfaction from the outcome.

Practical implication – First person should be clear about its own goals like it directly happens in goal
setting perspective in which individual set self-goals and discuss with manager. It’s a linkage of goal
with overall objective and after which comes KPI’s

4. Hertzberg Theory :- Frederick Herzberg's Two-Factor Theory, also known

as Motivation-Hygiene Theory or intrinsic vs. extrinsic motivation, concludes that
there are certain factors in the workplace that can cause job satisfaction and a
separate set of factors that can cause dissatisfaction.

Based on this, he developed the theory that people’s job satisfaction depends on
two kinds of factors. Factors for satisfaction (motivators/satisfiers) and factors
for dissatisfaction (hygiene factors/ dissatisfiers).
Performance, recognition, job status, responsibility and opportunities for growth all fall
under motivators/ satisfiers.
Hygiene factors/dissatisfiers are about salary, secondary working conditions, the
relationship with colleagues, physical work place and the relationship between supervisor
and employee.
 5. ERG theory:-

This theory is developed by Clayton Alderfer. He condenses Maslow’s five human needs into three
need levels:

i. Existence needs- This stage is the provision of basic material requirements. It includes

physiological and safety needs.

ii. Relatedness needs-This stage involves the desire for relationships. It includes social and

external esteem needs.

iii. Growth needs- This stage involves the desire for personal development. It includes

internal esteem and self-actualization needs.

6. Oldham hackman model -

The job characteristics model, designed by Hackman and Oldham, is based on the idea that the task
itself is key to employee motivation. Specifically, a boring and monotonous job stifles motivation to
perform well, whereas a challenging job enhances motivation.

It states that there are five core job characteristics (skill variety, task identity, task significance,
autonomy, and feedback) which impact three critical psychological states (experienced
meaningfulness, experienced responsibility for outcomes, and knowledge of the actual results), in
turn influencing work outcomes (job satisfaction, absenteeism, work motivation, etc.).

The five core job characteristics can be combined to form a motivating potential score (MPS) for a
job, which can be used as an index of how likely a job is to affect an employee's attitudes and
behaviors.

They identified the following job characteristics that must be in place to achieve employee
satisfaction:

 Skills variety: do tasks vary, and are they challenging? Or are they monotonous and
too easy?
 Task identity: do tasks have a defined beginning, middle and end? Without this, it’s
hard to achieve the satisfaction of an attained goal. (when he/she is successfully
completing task)
 Task significance: does the employee feel that their role has meaning?
 Task autonomy: can individuals have a say in how they carry out their work?
 Job feedback: are employees receiving feedback on their performance?

 Concept of linking motivational theory to respective performance (concepts of reward that

can be linked with Adams equity theory)

a) Piece rate pay –

 b) Merit based pay – It is Pay as per merit that has been decided by the organisation.
Merit can be on 3-point scale, 5-point scale. So to sum up it is a pay as per the
performance scale circulated by the organisation.

c) Sales incentives & Bonuses –

d) Profit sharing plan -

e) Employee stock ownership plans -

f) Gain sharing plans –

 Difference between KRA/KPI’S: -

KRA’s – Key result area. It is very generic. They are basically the responsibilities and task which are
given to a person

KPI’S – Key Performance Indicator. They are means through which these tasks can be achieved.

Example – During a recruitment process, Primary responsibility is to achieve a target. certain

number of positions within given time frame.

Number of positions will be KRA and Time frame here given is KPI.

Example - In amazon, there are levels. From level 1- 3 turnaround time for onboarding should be
30 days post submission of requisition

For managerial level it should be 60 days post

For executive level it should be 90 days post submission requisition

These are indicators (specifics are the indicators)

 How can be a person’s self-actualization be increased by rewards?

By providing opportunities to the individual in the organization through job redesign. This can be
bifurcated into 3 aspects:

i. Job rotation- The employees are shifted between two or more assignments or jobs at
regular intervals of time in order to expose them to all verticals of an organization.

ii. Job enlargement- Task, duties and responsibilities in the same horizontal level is job
enlargement

iii. Job enrichment – Addition of responsibilities for a person to grow vertically upwards. It
might be development plan for next position. A person gets more authorities to perform
and make people work on it
  Self-Efficacy- The individual’s belief that he or she is capable of performing a task.

 Reinforcement Theory: Reinforcement Theory of motivation aims at achieving the desired

level of motivation among the employees by means of reinforcement, punishment and
extinction. Reinforcement approach, which can be both positive and negative, is used to
reinforce the desired behavior.

 Attribution Theory: This theory is given by Bernard Weiner. Weiner’s attribution theory

states that an individual causal attributions of achievement affect subsequent behaviors and
motivation. One of the primary assumptions of attribution theory is that people will interpret their
environment in such a way as to maintain a positive self- image.

Example: When one fails or makes mistakes, we will more likely use external attribution, attributing
causes to situational factors rather than blaming ourselves. When others fail or make mistakes,
internal attribution is often used, saying it is due to their internal personality factors.