1. Theories of Motivation
Overview of Maslow’s need hierarchy theory, Herzberg’s two-factor theory and Theory X and Y.
Adam’s Equity theory;
Vroom’s Expectancy theory;
ERG theory;
McClelland’s Need theory.

3. Theory X and Theory Y (Douglas McGregor)

4. Theory Y Theory X Work is Natural Self- Direction Seek Responsibility
Good Decisions
Widely Dispersed
Avoid
Work
Must be
Controlled
Seek Security

5. ERG Theory (Clayton Alderfer)
Concepts:
More than one need can be operative at the same time.
If a higher-level need cannot be fulfilled, the desire to satisfy a lower-level need increases.
Core Needs
Existence: provision of basic material requirements.
Relatedness: desire for relationships.
Growth: desire for personal development.

6. Expectancy Theory
Vroom suggests that an employee's beliefs about Expectancy, Instrumentality, and Valence interact psychologically. In this way they create a motivational force, such that the employee will act in a way that brings pleasure and avoids pain. This force can be 'calculated' via a formula:  
Expectancy Theory formula
  Motivation = Valence x Expectancy x Instrumentality
This formula can be used to indicate and predict things as: job satisfaction, occupational choice, the likelihood of staying in a job, and the effort that one might expend at work.

7. Expectancy, Instrumentality, & Valence
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Expectancy, Instrumentality, & Valence
Effort
Expectancy:
Person’s
perception that
their effort will
result in
performance
Instrumentality
results in
outcomes
Valence:
How desired
are the outcomes
from a
job
Performance
Outcomes

8. Amity Business School
High Motivation:
According to the Expectancy Theory, high motivation results from high levels of Expectancy, Instrumentality, & Valence.
If just one value is low, motivation will be low.
This means that even if desired outcomes are closely link to performance, the worker must feel the task is possible to achieve for high motivation to result.
Managers need to consider this relationship to build a high performance firm. The multiplier effect means that all must be high for high motivation, yet even one low factor can destroy motivation.

9. (Worker perceives that
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Expectancy Theory
High Expectancy
(Worker knows that
if they try, they can
perform)
High
Instrumentality
(Worker perceives that
high performance
leads to outcomes)
High Valence
(Worker desires the
outcomes resulting
from high
performance)
High
Motivation

10. MOTIVATION Thought Processes and Decisions
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MOTIVATION Thought Processes and Decisions
Vroom’s Expectancy Theory

11. Adams' equity theory
The Adams’ Equity Theory is named for John Stacey Adams, a workplace and behavioral psychologist, who developed this job motivation theory in 1963.
Adams’ Equity Theory calls for a fair balance to be struck between an employee’s inputs (hard work, skill level, tolerance, enthusiasm, etc.) and an employee’s outputs (salary, benefits, intangibles such as recognition, etc.).
According to the theory, finding this fair balance serves to ensure a strong and productive relationship with the employee, with the overall result being contented, motivated employees.

12. Motivation Equation Figure 12.1 Inputs from Organizational members
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Motivation Equation
Figure 12.1
Inputs from
Organizational
members
Performance
Outcomes
received by
members
Time
Effort
Education
Experience
Skills
Knowledge
Work Behav.
Contribute to
organization
efficiency,
effectiveness
and
attain goals
Pay
Job Security
Benefits
Vacation
Autonomy
Responsibility

13. Equity Theory Relationships
PERCEIVED RATIO COMPARISON* EMPLOYEE’S ASSESSMENT
Outcomes A Outcomes B
Inputs A Inputs B
Outcomes A Outcomes B
Inputs A Inputs B
<
Inequity (under-rewarded) =
Equity
>
Inequity (over-rewarded)

14. Amity Business School
Inequity
Inequity exists when worker’s outcome/input ratio is not equal to referent.
Underpayment inequity: ratio is less than the referent. Worker feels they are not getting the outcomes they should given inputs.
Overpayment inequity: ratio is higher than the referent. Worker feels they are getting more outcomes then they should given inputs.
Restoring Equity: Inequity creates tension in workers to restore equity.
In underpayment, workers reduce input levels to correct.
Overpayment, worker can change the referent to adjust.
If inequity persists, worker will often leave the firm.

15. Perceived Inequities May Lead To:
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Equity Theory
This CTR relates to the material on pp
Equity Theory
Inputs
Referents
Equity Theory
Outcomes
Equity Theory
Developed by J. Stacey Adams, Equity Theory states that an employee compares his or her job’s inputs-outcomes ratio to that of relevant others and then corrects any inequity. How employees choose to correct inequities has direct implications for managers.
Key Concepts
Inputs. This is the employee’s contribution to the organization.
Outcomes. This is what the employee receives from the organization and includes mainly compensation, but also such factors as recognition & status.
Referents. Referents consist of the source against which the individual compares themselves to in assessing equity. Categories of referents include: Other - or an individual with the same job in the organization. System - or the organizational pay policies and procedures that administer outcomes. Self - or the unique expectations the individual has regarding the size of the inputs-outcomes ratio that is considered equitable. This is based on experience, contacts, and past jobs and family commitments.
When Employees perceive inequities between themselves and their referent, they may do one of the following: (1) Distort either their own or others’ inputs and outcomes; (2) behave in some way to induce others to change their inputs and outcomes; (3) behave in some way to change their own inputs and outcomes; (4) choose a different comparison referent; (5) quit their jobs.
Inequitable Pay: Equity theory establishes four propositions relating to inequitable pay: (1) Overrewarded employees will produce more than equitably paid employees (2) Overrewarded employees will produce fewer but higher-quality units than equitably paid employees (3) Underrewarded employees will produce less or poorer quality output (4) Underrewarded employees will produce a large number of low-quality units in comparison with equitably paid employees.
Perceived Inequities May Lead To:
Distort
Change
Others
Self
New
Referent
Quit

16. McClelland’s Needs Theory Affiliation Achievement Power
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McClelland’s
Needs Theory
Affiliation
Achievement
Power
David McClelland proposed the three-needs theory which asserts that there are three relevant motives or needs that motivate behaviour in the workplace:
1. The need for achievement (nAch) is the need to excel, to achieve in relation to a set of standards, to succeed.
2. The need for power (nPow) is the need to shape and control the behaviour of others.
3. The need for affiliation (nAff) is the desire for interpersonal relationships. He believed that these needs are acquired from the culture of a society.
Some people have a compelling drive to succeed, but they strive for personal achievement, not for the rewards of success, per se (nAch). These high achievers seek situations in which they can take responsibility for solving problems, can receive rapid unambiguous feedback on performance, and can set moderately challenging goals.
Persons with a high need for power (nPow) desire to be influential, in charge, and seek competitive, status-oriented situations.
Those who have a high need for affiliation (nAff) want to be liked and accepted by others; so, they strive for friendships, cooperation, and high-trust situations. 9

17. Acquired Needs Theory
Emphasizes importance of three needs acquired through experiences:
Need for achievement (nAch)
Need for power (nPower)
Need for affiliation (nAff)
McClelland encourages managers to identify the presence of these needs through observation and create appropriate work environments.

18. Acquired Needs Theory Needs are associated with work preferences
High nAch: individual responsibilities, challenging goals, performance feedback.
High nAff: interpersonal relationships, opportunities for communication.
High nPower: attention, recognition, opportunity for influence over others.
Senior executive success associated with high need for power and low need for affiliation.