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Chapter 5



Copyright 2011 by the McGraw-Hill Companies, Inc. All rights reserved.

Learning Objectives

Define the key terms in expectancy theory Distinguish between inputs and outputs in equity theory Understand the different types of organizational justice

Identify the key steps in goal setting

Describe the concept of the psychological contract


Learning Objectives

Describe the three determinants of job performance Identify the need levels in Maslow's hierarchy Explain Alderfer's ERG Theory Compare motivators with hygiene factors

Discuss the factors that reflect a high need for achievement



More than motivation plays a role in performance

Ability Instinct Aspiration level Personal factors (age, education, background)

Determinants of Job Performance


Determinants of Job Performance

Motivation components
Direction Intensity Persistence


The Starting Point: The Individual

Most managers must motivate a diverse and unpredictable group of people

They have varying needs and goals


Deficiencies an individual experiences at a particular time May be physiological, psychological, or sociological

Those with deficiencies are more susceptible to motivational efforts


The Starting Point: The Individual

Needs trigger tension and a search for ways to reduce it

A course of action is selected Goal-directed behavior occurs The behavior triggers either a reward or punishment The deficiencies are reassessed


The Starting Point: The Individual

Three main areas affect employee motivation

Organizational issues

Leader issues

Job issues


The Motivational Process: A General Model


Need deficiencies

Need deficiencies reassessed by the employee

Search for ways to satisfy needs

The Employee

Rewards or punishments

Goal-directed behavior Performance (evaluation of goals accomplished)


Motivation Theories

Content theories focus on

Factors within the person The needs that motivate people

Process theories describe, explain, and analyze how behavior is

Directed Sustained Stopped

Content Motivation Theories

Maslows need hierarchy

Alderfers ERG theory

Herzbergs two-factor theory

McClellands learned needs theory


Maslows Need Hierarchy


Maslows Need Hierarchy

The Need-Hierarchy Approach

A satisfied need ceases to motivate Unsatisfied needs can cause frustration, conflict, and stress People have a need to grow and develop; they strive to move up the hierarchy


Maslows Need Hierarchy

Need-hierarchy issues

Little data proves that a needs hierarchy exists Only two needs levels exist: physiological and then all others Security needs decrease as managers advance

With a corresponding increase in need for social interaction, achievement, and self-actualization


Alderfers ERG Theory

Alderfers ERG needs correspond to Maslows hierarchy

Existence = physiological and safety Relatedness = belongingness, social, love Growth = esteem and self-actualization

A frustration-regression process exists

If one continually fails to satisfy growth needs, relatedness needs reemerge

Efforts will be redirected toward satisfying a lower-order need


Herzbergs Two-Factor Theory

A content theory with two motivation factors

Dissatisfiers-satisfiers (hygiene factors)

Salary, job security, working conditions, status, company procedures, interpersonal relations The job content, achievement, recognition, responsibility, advancement, possibility of growth

Satisfiers-motivators (intrinsic conditions)


Traditional View Versus Herzberg


Criticisms of Herzbergs Theory

Over-simplifies the nature of job satisfaction

Requires people to look at themselves retrospectively

Only self-reports of performance over long period of time were used in original study

Little testing of motivational and performance consequences of the theory


Herzbergs Two-Factor Theory

Job enrichment

Builds personal achievement, recognition, challenge, responsibility, and growth opportunities into a job Increases individual motivation by providing more discretion and accountability

McClellands Learned Needs Theory

McClelland believes needs are acquired from culture

Need for achievement (n Ach) Need for affiliation (n Aff) Need for power (n Pow)

When a need is strong, there is motivation to use behavior that leads to its satisfaction


McClellands Learned Needs Theory

Factors reflecting a high n Ach

Likes to take responsibility for solving problems Sets moderate achievement goals and takes calculated risks Desires feedback on performance

McClellands Learned Needs Theory

Factors reflecting a high n Pow

Concentrates on obtaining and exercising power and authority Concerned with influencing others and winning arguments Power can be negative or positive

McClellands Learned Needs Theory

Factors reflecting a high n Aff

Desires social interaction Concerned about the quality of personal relationships Social relationships take precedence over task accomplishment

Criticisms of Learned Needs Theory

Supporting evidence was supplied by McClelland and his associates

Use of projective psychological personality tests is unscientific Claim that n Ach can be learned counters theory that motive acquisition occurs in childhood and is hard to alter

No proof that acquired needs are sustained over time


Comparison of Content Theories

Maslow (need hierarchy)

Herzberg (two-factor theory)




Higher order needs



The work itself Responsibility Advancement Growth

Achievement Recognition Quality of interpersonal relations among peers, with supervisors, with subordinates Job security Working conditions Salary

Need for achievement

Growth Need for power

Belongingness, social, and love


Safety and security

Need for affiliation

Basic needs

Hygiene conditions



Process Theories of Motivation

Content theories focus primarily on the needs and incentives that cause behavior

They try to explain how behavior is energized, directed, maintained, and stopped

Vrooms Expectancy Theory

Employees are more likely to be motivated when they perceive that effort = successful performance + desired rewards and outcomes

Motivation is a process governing choices among alternative forms of voluntary activity

Most behaviors are under the voluntary control of the individual and consequently are motivated


Vrooms Expectancy Theory

First-level Outcomes Result from behavior associated with doing the job itself Productivity Absenteeism

Second-level Outcomes Result from the rewards and punishments that firstlevel outcomes produce Pay increases Group acceptance or rejection Promotion Termination

Production quality


Vrooms Expectancy Theory


The perception that first-level outcomes (performance) are tied to second-level outcomes (rewards or punishment)


An individuals preferences for outcomes


Belief that a particular behavior will be followed by a particular outcome


Expectancy Theory
E P EXPECTANCY E O EXPECTANCY Perceived probability of successful performance, given effort Perceived probability of receiving an outcome, given performance

First-level outcome

Second-level outcome

Second-level outcome



First-level outcome

Second-level outcome

Second-level outcome

First-level outcome

Second-level outcome Second-level outcome


Equity Theory

Ones perception of being treated fairly in social exchanges can influence motivation

Equity exists when one perceives that the ratio of their inputs (efforts) to their outcomes (rewards) equals the ratios of other employees

Important Equity Theory Terms

Person Comparison Other

The individual for whom equity or inequity is perceived

Any group or persons used as a referent by Person, regarding the ratio of inputs and outcomes
The individual characteristics brought by Person to the job What Person received from the job



Equity Theory


Change Procedures to Restore Equity

Ways to restore equity

Change the inputs or outcomes Change attitudes

Change the reference person

Leave the field Change the inputs or outcomes of the reference person

Organizational Justice

The degree to which individuals feel fairly treated at the workplace


Types of Organizational Justice

Organizational The degree to which individuals feel they are fairly treated at the workplace

Distributive The perceived fairness of how resources and rewards are distributed throughout an organization

Procedural The perceived equity of the processes and procedures used to make resource allocation decisions


Organizational Justice

Positive Reactions to Procedural Justice

Organizational commitment Organizational citizenship Intent to stay with the organization Trust in supervisor

Satisfaction with decision outcome

Work effort



Procedural Justice

People are more inclined to interpret decisions as fair when

They have a voice in the decision Decision making is consistent The process and procedures conform to ethical and moral values


Procedural Justice

Why does it work?

Self-interest Theory People want fair procedures because it enables them to obtain desired extrinsic outcomes

Group Theory
Fair group procedures are a sign of respect and an indication that group members are valued


Procedural Justice

Interpersonal justice

Judgments made by employees as to whether they feel they are treated fairly Perceptions of justice are higher when employees are treated with dignity and respect Abusive supervisors are common Employees who experience bullying and incivility are more likely to quit


Procedural Justice

Informational justice

Perceived fairness of the communication provided to employees from authorities Keep many channels open and communicate frequently Utilize informal chats Dont sugarcoat bad news


Goal Setting

A goal is a result that a person or group is trying to accomplish through behavior and actions

Lockes view An individuals conscious goals and intentions are the primary determinants of behavior Once a person starts something, he/she pushes on until a goal is achieved Harder goals result in higher levels of performance if the goals are accepted by the individual

Goal Setting Terms

Goal specificity

Degree of quantitative precision (clarity) of the goal Level of performance required to achieve the goal

Goal difficulty Goal intensity Goal commitment

Process of setting the goal or determining how to achieve it

The amount of effort used to achieve a goal


Goal Setting Applied to Organizations

Goal Characteristics Clarity Meaningful Challenging

Performance Desired by Organization

Rewards Preferred by Individual or Team

Moderators Ability Commitment Feedback


Implementing Goal Setting Programs

When implementing goal-setting programs, consider individual differences

Personality Career progression Training background Personal health

Monitor goalsetting programs for attitudinal and performance consequences


Motivation and the Psychological Contract

Exchange theory

Organizational members engage in reasonably predictable give-and-take relationships

Per Schein, the degree to which employees exert effort, commit to goals, and derive satisfaction from work depends on

The extent to which employee expectations match the organizations expectations

The specific nature of what is exchanged


The Psychological Contract

Mutual expectations constitute part of the psychological contract

An unwritten agreement between the individual and the organization Specifies what each expects to give and receive from the other Can change over time These implicit agreements may take precedence over written agreements


The Psychological Agreement

These contracts may focus on

Satisfaction Challenging work Fair treatment Loyalty

An opportunity to be creative

Managing the psychological contract is a key aspect of most managers jobs


Reviewing Motivation

Content Theories

Expectancy Theory
Emphasizes individual, jobs, and environmental variables Recognizes differences in needs, perceptions, and beliefs

Equity Theory
Addresses the relationship between attitudes toward inputs and outputs and reward practices

Goal-Setting Theory
Emphasizes the cognitive processes and the role of intentional behavior in motivation


Reviewing Motivation

Managers can influence the motivation state of employees Be sensitive to variations in employees needs, abilities, goals, reward preferences Provide jobs that offer task challenge, diversity, and need satisfaction

Responsibility is shared between managers and the HR dept