After studying this chapter, students should be able to understand the following:

The focus is on managing motivation and outcomes to boost performance, one of the most important roles

of any manager. This chapter explores the elements of motivation and introduces the expectancy model,

discussing individual, job-related, and organizational influences on motivation. In addition, the chapter

investigates how managers can use opportunities and outcomes to manage employee performance on the

job.

Motivation is the inner drive that directs a person’s behavior toward goals. Motivation can be defined as a

process which energizes, directs and sustains human

behavior. In HRM the term refers to person’s desire

to do the best possible job or to exert the maximum

effort to perform assigned tasks. An important feature

of motivation is that it is behavior directed towards

goal.

Motivation is important in getting and retaining

people. Motivation tools act as the glue that links

individuals to organizational goals, In addition, make

individuals go beyond the job and be creative.

I. The Motivation Process

In its simplest form, the motivation process begins

with a need, an individual’s perception of

a deficiency .For instance, an employee

might feel the need for more challenging

work, for higher pay, for time off, or for

the respect and admiration of colleagues.

These needs lead to thought processes

that guide an employee’s decision to

satisfy them and to follow a particular

course of action. If an employee’s chosen

course of action results in the anticipated

out come and reward, that person is likely

to be motivated by the prospect of a

similar reward to act the same way in the

future. However, if the employee’s action

does not result in the expected reward, he or she is unlikely to repeat the behavior. Thus, the reward acts as

feedback mechanism to help the individual evaluate the consequences of the behavior when considering

futures action.

1. Need Identification: First phase of motivation process is need identification where the employee feels

his/her some unsatisfied need. The motivation process begins with an unsatisfied need, which creates

tension and drives an individual to search for goals that, if attained, will satisfy the need and reduce the

tension.

2. Searching Ways to satisfy needs: Second phase is finding the different alternatives that can be used

to satisfy the needs, which were felt in first stage. These needs lead to thought processes that guide an

employee’s decision to satisfy them and to follow a particular course of action

3. Selecting Goals: Once if the need is assessed and employee is able to find out the way to satisfy the

need than next phase is selection of goals to be performed.

4. Employee Performance: These needs lead to thought processes that guide an employee’s decision to

satisfy them and to follow a particular course of action in form of performance.

5. Consequences of performance Reward/punishments: If an employee’s chosen course of action

results in the anticipated out come and reward, that person is likely to be motivated by the prospect of a

similar reward to act the same way in the future. However, if the employee’s action does not result in

the expected reward, he or she is unlikely to repeat the behavior

6. Reassessment of Need deficiencies: Once felt need is satisfied through certain rewards in response

to performance than employee reassesses any deficiencies and entire process is repeated again.

Motivation theories seek to explain why employees are motivated by and satisfied with one type of work

than another. It is essential that mangers have a basic understanding of work motivation because highly

motivated employees are more likely to produce a superior quality product or service than employee who

lack motivation

Abraham Maslow organized five

major types of human needs into

a hierarchy, as shown in Figure.

The need hierarchy illustrates

Maslow’s conception of people

satisfying their needs in a

specified order, from bottom to

top. The needs, in ascending

order, are:

1. Physiological (food, water,

and shelter.)

2. Safety or security

(protection against threat

and deprivation)

3. Social (friendship,

affection, belonging, and

love)

4. Ego (independence,

achievement, freedom, status, recognition, and self-esteem)

5. Self-actualization (realizing one’s full potential; becoming everything one is capable of being.)

According to Maslow, people are motivated to satisfy the lower needs before they try to satisfy the higher

need. Also, once a need is satisfied it is no longer a powerful motivator. Maslow’s hierarchy, however, is a

simplistic and not altogether accurate theory of human motivation. For example, not everyone progresses

through the five needs in hierarchical order. But Maslow makes three important contributions. First, he

identifies important need categories, which can help managers create effective positive rein forcers. Second,

it is helpful to think of two general levels of needs, in which lower-level needs must be satisfied before

higher-level needs become important. Third, Maslow sensitized managers to the importance of personal

growth and self-actualization.

Self-actualization is the best-known concept arising from this theory. According to Maslow, the average person is only 10 percent self-actualized. In other words, most of us are living our lives and working at our

lives and working at our jobs with a large untapped reservoir of potential. The implication is clear: Create a

work environment that provides training, resources, gives people a chance to use their skills and abilities in

creative ways and allows them to use their skills and abilities kin creative ways and allows them to achieve

more of their full potential.

Alderfer focuses on three needs: existence, relatedness, and growth. Existence needs are similar to

Maslow’s physiological needs, and to the physical components of Maslow’s security needs. Relatedness

needs are those that require interpersonal interaction to satisfy the needs for things like prestige and esteem

from others. Growth needs are similar to Maslow’s needs for self-esteem and self-actualization.

McGregor’s Theory-X represented the traditional management view that employees are lazy, was

uninterested in work, and needed to be prodded to perform. In contrast his theory Y viewed employees as

creative, complex, and mature individuals interested in meaningful work. McGregor believed that under the

right circumstances, employees would willingly contribute their ingenuity and their talents for the benefits

of the organization. He suggested that the mangers motivate em-0loyees by giving them the opportunity to

develop their talents more fully and by giving them the freedom to choose the methods they would use to

achieve organizational goals. In McGregor’s view the mangers role was not to manipulate employees but to

align their needs with needs of the organization so that employees would regulate their own actions and

performance. These insights lead researches to investigate the origins and processes of motivation more

closely.

Expectancy theory states that a person’s motivation to exert a certain level of effort is a function of three

things: expectancy (E), instrumentality (I), and valance (V). Motivation = E x I x V. “E” is the person’s

expectancy that his or her effort will lead to performance, “I” represents the perceived relationship between

successful performance and obtaining the reward, and “V” refers to the perceived value the person attaches

to the reward.

In 1911, psychologist Edward Thorndike formulated the law effect: Behavior that is followed by positive

consequences probably will be repeated. This powerful law of behavior laid the foundation for country

investigations into the effects of the positive consequences, called rein forcers that motivate behavior.

Organizational behavior modification attempts to people’s actions.

Four key consequences of behavior either encourage or discourage people’s behavior

1. Positive Reinforcement- applying a valued consequence that increases the likelihood that the

person will repeat the behavior that led to it. Examples of positive reinforcers include

compliments, letters of commendation, favorable performance evaluations, and pay raises. Equally

important, jobs can be positively reinforcing. Performing well on interesting, challenging, or

enriched jobs (discussed later in this chapter) is much more reinforcing, and therefore motivating,

then performing well on jobs that are routine and monotonous.

2. Negative Reinforcement- removing or withholding an undesirable consequence. For example, a

manager takes an employee (or a school takes a student) off probation because of improved

performance. Frequent threatening memos admonished people to achieve every one of their many

performance goals

3. Punishment- administering an aversive consequence. Examples include criticizing or shouting at

an employee, assigning an unappealing task, and sending a worker home without pay. Negative

reinforcement can involve the threat of punishment, but not delivering it when employees

perform satisfactorily. Punishment is the actual delivery of the aversive consequence.

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4. Extinction –withdrawing or failing or failing to provide a reinforcing consequence. When this

occurs motivation is reduced and the behavior is extinguished, or eliminated. Examples include

not giving a compliment for a job well done, forgetting to say thanks for a favor, or setting

impossible performance goals so that the person never experiences success. The first two

consequences, positive and negative reinforcement, are positive for the person receiving them:

The person either gains something or avoids something negative. Therefore, the person who

experiences these consequences will be motivated to behave in the ways that led to the

reinforcement. The last two consequences, punishment and extinction, are negative outcomes for

the person receiving them: Motivation to repeat the behavior that led to the undesirable results

will be reduced.

Thus, effective managers give positive reinforcement to their high-performing people and negative

reinforcement to low performance. They also punish or extinguish poor performance and other unwanted

behavior.

Herzberg Two-Factor theory divides Maslow’s Hierarchy into a lower-level and a higher-level set of needs,

and suggests that the best way to provide motivation for an employee is to offer to satisfy the person’s

higher-order needs, ego and self-actualization. Herzberg said that lower-order needs, or hygiene factors, are

different from higher-order needs, or motivators. He maintains that adding more hygiene factors to the job

is a very bad way to motivate because lower-order needs are quickly satisfied.

McClelland agrees with Herzberg that higher-level needs are most important at work. He believes the needs

for affiliation, power, and achievement are most important. He and his associates use the Thematic

Apperception Test to identify a person’s needs for achievement, power, and affiliation. People with a high

need for achievement strive for success, are highly motivated to accomplish a challenging task or goal,

prefer tasks that have a reasonable chance for success, and avoid tasks that are either too easy or too

difficult. People with a high need for power enjoy roles requiring persuasion. People with a strong need for

affiliations are highly motivated to maintain strong, warm relationships.

Adams’s equity theory assumes that people have a need for fairness at work, and therefore, value and seek

it. People are motivated to maintain a balance between what they perceive as their inputs or contributions

and their rewards as compared to others. This theory seems to work when people feel they are underpaid,

but inequity due to overpayment does not seem to have the positive effects on either quantity or quality that

Adams’s equity theory would predict.

a. Rewards: People behave in ways that they believe are in their best interest, they constantly look

for payoffs for their efforts. They expect good job performance to lead to organizational goal

attainment, which in turn leads to

satisfying their individual goals or needs.

Organization, then, use rewards to

motivate people.

b. Challenging Jobs: Job design refers to

the number and nature of activities in a

job. The key issue is whether jobs should

be more specialized or more enriched and

non-routine. Job design has been

implemented in several ways. Job

enlargement assigns workers to additional

same-level tasks to increase the number of

tasks they have to perform. Job rotation systematically moves workers from job to job. Job

enrichment means building motivators like opportunities for achievement into the job by making it

more interesting and challenging. Forming natural work groups, combining tasks, establishing

client relationships, vertically loading the job, and having open feedback channels may implement

Job enrichment.

c. Using Merit Pay: A merit raise is a salary increase, usually permanent, that is based on the

employee’s individual performance. It is a continuing increment rather than a single payment like a

bonus. Relying heavily on merit rewards can be a problem because the reinforcement benefits of

merit pay is usually only determined once per year.

d. Using Spot Awards: A spot award is one given to an employee as soon as the laudable

performance is observed. These awards are consistent with principles of motivation because they

are contingent on good performance and are awarded immediately.

e. Using Skill-Based Pay: With skill-based pay, employees are paid for the range, depth, and types

of skills and knowledge they are capable of using rather than for the job they currently hold. Skillbased

pay is consistent with motivation theory because people have a self-concept in which they

seek to fulfill their potential. The system also appeals to the employee’s sense of self-efficacy

because the reward is a formal and concrete recognition that the person can do the more

challenging job well.

f. Using Recognition: Some employees highly value day-to-day recognition from their supervisors,

peers and team members because it is important for their work to be appreciated by others.

Recognition helps satisfy the need people have to achieve and be recognized for their achievement.

g. Using Job Redesign: Job design refers to the number and nature of activities in a job. The key

issue is whether jobs should be more specialized or more enriched and nonroutine. Job design has

been implemented in several ways. Job enlargement assigns workers to additional same-level tasks

to increase the number of tasks they have to perform. Job rotation systematically moves workers

from job to job. Job enrichment means building motivators like opportunities for achievement into

the job by making it more interesting and challenging. Job enrichment may be implemented by

forming natural work groups, combining tasks, establishing client relationships, vertically loading

the job, and having open feedback channels.

h. Using Empowerment: Empowerment means giving employees the authority, tools, and

information they need to do their jobs with greater autonomy, as well as the self-confidence to

perform new jobs effectively. Empowerment boosts employees’ feelings of self-efficacy and

enables them to use their potential more fully.

i. Using Goal-Setting Methods: People are strongly motivated to achieve goals they consciously

set. Setting goals with employees can be a very effective way of motivating them. Goals should be

clear and specific, measurable and verifiable, challenging but realistic, and set with participation.

j. Using Positive Reinforcement: Positive reinforcement programs rely on operant conditioning

principles to supply positive reinforcement and change behavior. Experts claim it is better to focus

on improving desirable behaviors rather than on decreasing undesirable ones. There are a variety

of consequences including social consequences (e.g., peer approval or praise from the boss),

intrinsic consequences (e.g., the enjoyment the person gets from accomplishing challenging tasks),

or tangible consequences (e.g., bonuses or merit raises).

k. Using Lifelong Learning: Lifelong learning can be used to deal with problems of downsizing

and employee commitment, and to counterbalance their negative effects. It provides extensive

continuing training and education, from basic remedial skills to advanced decision-making

techniques, throughout the employees’ careers, which provide employees the opportunity to boost

their self-efficacy and self- actualization.

Motivation is not a simple subject; no two people respond to precisely the same set of motivators. Mangers

face several pressing issues that complicate the challenges of motivating their employees.

a. Workforce Diversity: the composition of the workforce becoming less homogeneous.

This diversity complicates the task of motivating employees because mangers must

consider so many more motivational variables

b. Organizational Restructuring: The wave of mergers and acquisitions is followed by

massive layoffs that represent another challenge. Employees who have been let go for

reason unrelated to their performance may question whether initiative and creativity are

now less important than political survival skills. Moreover, employees who have seen

colleagues’ loss their jobs may concentrate on keeping their own jobs and may stop taking

risks –risk that might lead to new products, new markets, or other advances.

c. Fewer Entry-level Employees: The labor force is growing at half the rate of the previous

decade; the number of qualified candidates for most entry-level positions is decreasing. In

such a tight labor market, mangers face new challenges in attracting; retaining and

motivating qualified entry-level employees. Managers must also determine how to motivate

under qualified candidates to upgrade their skills and education so that they can handle the

entry-level tasks.

d. An oversupply of managers: In the middle and top ranks of management, quite different

phenomenon is causing organizational headaches. The number of senior management

positions is far fewer than the number of deserving candidates, and the trend toward flatter

organizations only makes matters worse for people who want to climb the hierarchal

ladder.

As managers in organizations come to grips with these increasingly urgent challenges, they must understate

the forces that derive employees' actions, how employees channel their actions towards goals, and how high

performance behavior can be sustained.

Extinction withdrawing or failing or failing to provide a reinforcing consequence.

Punishment administering an aversive consequence.

Positive Reinforcement applying a valued consequence that increases the likelihood that the

person will repeat the behavior that led to it.

Motivation Motivation is the inner drive that directs a person’s behavior toward goals.