1. Foundations of Employee Motivation
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Standard Chartered Bank
Standard Chartered Bank has improved employee engagement and motivation through goal setting, strengths-based feedback, employee development, and other practices.
Standard Chartered Bank has improved employee engagement
and motivation through goal setting, strengths-based
feedback, employee development, and other practices.

3. Motivation Defined
The forces within a person that affect the direction, intensity, and persistence of voluntary behavior.
Exerting particular effort level (intensity), for a certain amount of time (persistence), toward a particular goal (direction).
The forces within a person that affect direction, intensity, and
persistence of voluntary behavior
Motivated employees are willing to exert a particular level of
effort (intensity), for a certain amount of time (persistence),
toward a particular goal (direction)

4. Employee Engagement
Individual’s emotional and cognitive (rational) motivation, particularly a focused, intense, persistent, and purposive effort toward work-related goals.
High absorption in the work.
High self-efficacy – believe you have the ability, role clarity, and resources to get the job done
The employee’s emotional and cognitive motivation, selfefficacy
to perform the job, perceived clarity of the
organization’s vision and his/her specific role in that vision,
and belief that he/she has the resources to get the job done
• Focused, intense, persistent, and purposive effort toward workrelated
goals
• High level of absorption in the work i.e. intense focus
• High self-efficacy i.e. belief that you have the ability, role
clarity, and resources to get the job done
• Various reports suggest that engagement has a strong effect
on employee and work unit performance

5. Drives and Needs
Drives (primary needs, fundamental needs, innate motives)
Hardwired brain characteristics (neural states) that energize individuals to maintain balance by correcting deficiencies
Prime movers of behavior by activating emotions
Self-concept, social norms, and past experience
Drives (primary needs) are hardwired characteristics of the
brain that correct deficiencies or maintain an internal
equilibrium by producing emotions to energize individuals
• Neural states that energize individuals
• Prime movers of behavior because they generate emotions
• E.g. drive for social interaction, understanding the
environment, competence or status, and defending oneself
Drives
and Emotions
Needs
Decisions and Behavior

6. Drives and Needs Needs Goal-directed forces that people experience.
Drive-generated emotions directed toward goals
Goals formed by self-concept, social norms, and experience
Self-concept, social norms, and past experience
Needs are goal-directed forces that people experience
• Goals-directed forces that people experience
• Motivational forces of emotions channelled toward particular
goals to correct deficiencies or imbalances
• Self-concept, social norms, and past experience also regulate a
person’s motivated decisions and behavior
Drives
and Emotions
Needs
Decisions and Behavior

7. Maslow’s Needs Hierarchy Theory
Self-actual-ization
Physiological
Safety
Belongingness
Esteem
Need to
know
Need for beauty
Seven categories – five in a hierarchy -- capture most needs
Lowest unmet need is strongest. When satisfied, next higher need becomes primary motivator
Self-actualization -- a growth need because people desire more rather than less of it when satisfied
Most widely known theory of human motivation –
physiological, safety, belongingness, esteem, and selfactualization
• Two additional categories not in the hierarchy (need to know
and need for beauty)
• Lowest unmet need has strongest effect
• When lower need is satisfied, next higher need becomes the
primary motivator
• Self-actualization – a growth need because people desire more
rather than less of it when satisfied

8. What’s Wrong with Needs Hierarchy Models?
Maslow’s theory lacks empirical support
People have different hierarchies
Needs change more rapidly than Maslow stated
Hierarchy models wrongly assume that everyone has the same (universal) needs hierarchy
Instead, needs hierarchies are shaped by person’s own values and self-concept
Maslow’s theory ultimately failed to explain human motivation
• people have different hierarchies
• unique to each person and can possibly change over time
• People do not progress through the hierarchy as the theory
predicts
• Needs hierarchies are shaped by the individual’s most
important values and self-concept
Abraham Maslow

9. What Maslow Contributed to Motivation Theory
Holistic perspective
Integrative view of needs
Humanistic perspective
Influence of social dynamics, not just instinct
Positive perspective
Pay attention to strengths (growth needs), not just deficiencies
Holistic perspective
• Integrative view of needs – various needs should be studied
together
Humanistic perspective
• Higher-order needs are influenced by personal and social
influences, not just instinct
Positive perspective
• Pay attention to strengths, not just deficiencies – Maslow is
considered a pioneer in positive organizational behavior i.e.
advocates building positive qualities and perspectives as
opposed to focusing on trying to fix what is wrong
Abraham Maslow

10. Learned Needs Theory
Needs are amplified or suppressed through self-concept, social norms, and past experience
Therefore, needs can be “learned”
strengthened through reinforcement, learning, and social conditions
Needs are shaped, amplified or suppressed through selfconcept,
social norms, and past experience
Needs can be “learned” (i.e. strengthened through
reinforcement, learning and social conditions)

11. Three Learned Needs Need for achievement Need for affiliation
Need to reach goals, take responsibility
Want reasonably challenging goals
Need for affiliation
Desire to seek approval, conform to others wishes, avoid conflict
Effective executives have lower need for social approval
Need for power
Desire to control one’s environment
Personalized versus socialized power
Need for achievement
• High nAch people want to accomplish reasonably challenging
goals through their own effort; prefer working alone; choose
tasks with moderate risk; desire unambiguous feedback and
recognition; and money is a weak motivator
• Low nAch people work better when money is an incentive
• Entrepreneurs have high achievement need
Need for affiliation
• Seek approval of others, conform to their wishes and
expectations, and avoid conflict and confrontation
• People in decision-making positions must have relatively low
need for affiliation so that their choices are not biased by
personal need for approval
Need for power
• People want to control their environment including people and
material resources
• Personalized power – enjoy power for its own sake and use it
to advance personal interests
• Socialized power – desire power as a means to help others
• Effective leaders – should have high need for socialized rather
than personalized power

12. Four-Drive Theory Drive to Acquire Drive to Bond Drive to Learn
• Drive to take/keep objects and experiences
• Basis of hierarchy and status
Drive to Bond
• Drive to form relationships and social commitments
• Basis of social identity
Drive to Learn
• Drive to satisfy curiosity and
resolve conflicting information
Motivation theory that is based on the innate drives to
acquire, bond, learn, and defend and that incorporates both
emotions and rationality
Drive to acquire
• Drive to seek, take, control, and retain objects and personal
experiences – need for status and recognition; foundation of
competition
Drive to bond
• Drive to form social relationships and mutual caring
commitments with others; explains why people form social
identities by aligning their self-concept with social groups
Drive to learn
• Drive to satisfy our curiosity, to know and understand
ourselves and our environment; related to higher order needs
of growth and self-actualization
Drive to defend
• Drive to protect ourselves physically and socially; ‘fight or
flight’ response; includes defending our relationships and belief
systems; always reactive i.e. triggered by threat
Features of Four Drives
Innate and universal – everyone has them
Independent of each other – no hierarchy of drives
Complete set – no drives are excluded from the model
Drive to Defend
• Need to protect ourselves
• Reactive (not proactive) drive
• Basis of fight or flight

13. How Four Drives Affect Motivation
Four drives determine which emotions are automatically tagged to incoming information
Drives generate independent and often competing emotions that demand our attention
Mental skill set relies on social norms, personal values, and experience to transform drive-based emotions into goal-directed choice and effort
1. Four drives determine which emotions are automatically tagged
to incoming information
2. Drives generate independent and often competing emotions that
demand our attention
3. Mental skill set relies on social norms, personal values, and
experience to transform drive-based emotions into goal-directed
choice and effort

14. Four Drive Theory of Motivation
Drive to Acquire
Social norms
Personal values
Past experience
Drive to Bond
Mental skill set resolves competing drive demands
Goal-directed choice and effort
Drive to Learn
Drive to Defend
Drives produce emotions; our self-concept, personal values,
and past experience translate these emotions into goaldirected
needs, and these individual characteristics translate
needs into decisions and behavior
Social norms, personal values, and experience transform drive-based emotions into goal-directed choice and effort

15. Implications of Four Drive Theory
Provide a balanced opportunity for employees to fulfill all four drives
employees continually seek fulfilment of drives
avoid having conditions support one drive more than others
Provide a balanced opportunity for employees to fulfill all four
drives
• Best workplaces for employee motivation and well-being help
employees fulfill all four drives
• Keep fulfillment of all four drives in balance – organizations
should avoid too much or too little opportunity to fulfill each
drive

16. Expectancy Theory of Motivation
E-to-P
Expectancy
P-to-O
Expectancy
Outcomes & Valences
Outcome 1
+ or -
Outcome 2
+ or -
Effort
Performance
Outcome 3
+ or -

17. Increasing E-to-P and P-to-O Expectancies
Increasing E-to-P Expectancies
Develop employee competencies
Match employee competencies to jobs
Provide role clarity and sufficient resources
Provide behavioral modeling
Increasing P-to-O Expectancies
Measure performance accurately
Increase rewards with desired outcomes
Explain how rewards are linked to performance
Increasing E-to-P Expectancies
• Assuring employees they have the necessary competencies
• Person-job matching
• Clear role perceptions and necessary resources
• Behavioral modeling and supportive feedback
Increasing P-to-O Expectancies
• Measure employee performance accurately
• Distribute more valued rewards to those with higher
performance
• Explain how employee’s rewards were based on past

18. Increasing Outcome Valences
Ensure that rewards are valued
Individualize rewards
Minimize countervalent outcomes
Distribute rewards that employees value
Individualize rewards
Minimize countervalent outcomes (e.g. peer pressure)

19. A-B-Cs of Behavior Modification
Antecedents
What happens
before behavior
Behavior
What person
says or does
Consequences
What happens
after behavior
Example
Warning
light
flashes
Machine
operator turns
off power
Co-workers
thank
operator
We “operate” on the environment -- Alter behavior to
maximize positive and minimize adverse consequences
Central objective of behavior modification is to change
behavior (B) by managing its antecedents (A) and
consequences (C).
Antecedents
• Events preceding the behavior
• Informs employees that a particular action will produce specific
consequences – e.g. sound signaling that an has arrived
Behavior
• What people say or do – e.g. completing a task requested by a
supervisor
Consequences
• Events following behavior that influences its future occurrence
– e.g. positive comment when the employee puts on safety
eyewear

20. Four OB Mod Consequences
Positive reinforcement – any consequence that, when introduced, increases/maintains the target behavior.
Punishment – any consequence that decreases the target behavior.
Negative reinforcement –any consequence that, when removed, increases/maintains target behavior.
Extinction – when no consequence occurs, resulting in less of the target behavior
Positive reinforcement
• Introduction of a consequence increases or maintains the
frequency or future probability of a specific behavior e.g.
receiving praise after completing a project
Punishment
• Occurs when a consequence decreases the frequency or future
probability of a behavior e.g. being demoted or ostracized by
our co-workers
Negative reinforcement
• Occurs when the removal or avoidance of a consequence
increases or maintains the frequency or future probability of a
behavior e.g. manager stops criticizing employee when
substandard performance improves
Extinction
• Occurs when the target behavior decreases because no
consequence follows it e.g. performance declines when
manager stops congratulating employees for their good work

21. Reinforcing the Healthy Walk
The British municipality of Stoke-on-Trent, Staffordshire, issued pedometers to its staff and encouraged them to do more walking each day. The pedometers provide instant feedback and positive reinforcement to motivate longer walks. Some organizations also reinforce walking with financial rewards.
The British municipality of Stoke-on-Trent, Staffordshire,
issued pedometers to its staff and encouraged them to do
more walking each day. The pedometers provide instant
feedback and positive reinforcement to motivate longer walks.
Some organizations also reinforce walking with financial
rewards

22. Behavior Modification in Practice
Behavior modification applications:
every day to influence behavior of others
company programs – attendance, safety, etc.
Behavior modification problems:
Reward inflation
Variable ratio schedule viewed as gambling
Ignores relevance of cognitive processes in motivation and learning
Everyone uses organizational behavior modification principles
in one form or another to influence behavior of others
• In every day life e.g. thank people for a job well done
• Formal company programs to reduce absenteeism, improve
task performance, improve safety etc.
Behavior modification problems/limitations include:
• Reward inflation – the reinforcer is eventually considered an
entitlement
• Variable ratio schedule tends to create a lottery-style reward
system which may be viewed as “gambling” or erratic
• Denies relevance of cognitive processes in learning

23. Social Cognitive Theory
Learning behavior outcomes
Observing consequences that others experience
Anticipate consequences in other situations
Behavior modeling
Observing and modeling behavior of others
Self-regulation
People engage in intentional, purposive action – they develop goals, achievement standards, action plans
People form expectancies (anticipate consequences) from others -- not just from their own experiences
People reinforce their own behavior (self-reinforcement)
Learning and motivation occurs by observing and modeling
others as well as by anticipating the consequences of our
behavior
Learning behavior outcomes
• Observing consequences that others experience e.g. hearing
that a co-worker was fired for being rude to a customer
increases your perception that rude behavior will result in
being fired
• Anticipating consequences in other situations – the story about
the fired employee might also strengthen your P-to-O
expectancy about getting fired if you are rude toward coworkers
Behavior modeling
• Observing, imitating and practicing behavior of others –
increases self-confidence
Self-regulation
• People engage in intentional, purposive action
• Set their own short and long-term goals, standards of
achievement, plan of action, consider alternatives, and
anticipate consequences
• People engage in self-reinforcement – reinforce behavior by
rewarding/punishing themselves with consequences within
their control

24. Goal Setting
The process of motivating employees and clarifying their role perceptions by establishing performance objectives
The process of motivating employees and clarifying their role
perceptions by establishing performance objectives

25. Effective Goal Setting Characteristics
Specific – What, how, where, when, and with whom the task needs to be accomplished Measurable – how much, how well, at what cost Achievable – challenging, yet accepted (E-to-P) Relevant – within employee’s control Time-framed – due date and when assessed Exciting – employee commitment, not just compliance Reviewed – feedback and recognition on goal progress and accomplishment M A R T
Apply “SMARTER” goals
• Specific – What, how, where, when, and with whom the task
needs to be accomplished
• Measurable – how much, how well, at what cost
• Achievable – challenging, yet accepted (maintain high E-to-P
expectancy)
• Relevant – within employee’s control
• Time-framed – due date and when assessed
• Exciting – employee commitment, not just compliance
• Reviewed – feedback and recognition on goal progress and
accomplishment E R

26. Balanced Scorecard Organizational-level goal setting and feedback
Attempts to include measurable performance goals related to financial, customer, internal, and learning/growth (i.e., human capital) processes
Usually includes several goals within each process
Organization-level form of goal setting and feedback
• Translates the organization’s vision and mission into specific
measurable performance goals related to financial, customer,
internal, and learning/growth (i.e. human capital) processes
• Goals cascade down to departments and employees – several
goals within each process
• Goals are often weighted and scored to create a composite
measure of success

27. Characteristics of Effective Feedback
Specific – connected to goal details
Relevant – Relates to person’s behavior
Timely – to improve link from behavior to outcomes
Credible – trustworthy source
Sufficiently frequent
Employee’s knowledge/experience
Task cycle
1. Specific – connected to the details of the goal (to specific
metrics) e.g. “Sales increased by 5% this month”
2. Relevant – relates to the individual’s behavior or outcomes within
his or her control
3. Timely – available as soon as possible so employees see a clear
association between their actions and consequences
4. Credible – employees more likely to accept feedback from a
trustworthy source
5. Sufficiently frequent – considers employee’s knowledge,
experience with the task and how long it takes to complete the
task (task cycle) e.g. employees working on new tasks should
receive more frequent feedback

28. Strengths-Based Coaching Feedback
Maximizing the person’s potential by focusing on their strengths rather than weaknesses
Motivational because:
people inherently seek feedback about their strengths, not their flaws
person’s interests, preferences, and competencies stabilize over time
Positive OB approach to coaching and feedback that focuses
on building and leveraging the employee’s strengths rather
than trying to correct his/her weaknesses
Motivational because:
• People inherently seek feedback about their strengths, not
their flaws – consistent with self-enhancement
• A person’s personality becomes quite stable early in his/her
career – this limits the flexibility of the person’s interests,
preferences, and competencies i.e. limits effectiveness of
negative feedback in changing performance

29. Multisource Feedback
Received from a full circle of people around the employee
Provides more complete and accurate information
Several challenges
expensive and time-consuming
ambiguous and conflicting feedback
inflated rather than accurate feedback
stronger emotional reaction to multiple feedback
Received from a full circle of people around the employee e.g.
peers, supervisors, customers etc.
Provides more complete and accurate information
Challenges:
• Expensive and time-consuming
• Can produce ambiguous and conflicting feedback
• Peers may inflate feedback to avoid conflict
• Experience a stronger emotional reaction when receiving
critical feedback from many people rather than just the boss
Goal setting is one of the most respected theories in OB in
terms of validity and usefulness
Goal setting/feedback limitations:
• Focuses employees on a narrow set of measurable
performance indicators i.e. “What gets measured, gets done”
• Employees motivated to set easy goals when tied to pay
(bonus)
• Goal setting interferes with learning process in new, complex
jobs despite being effective in established jobs

30. Organizational Justice
Distributive justice
Perceived fairness in outcomes we receive relative to our contributions and the outcomes and contributions of others
Procedural justice
Perceived fairness of the procedures used to decide the distribution of resources
Distributive justice
• Perceived fairness in the individual’s ratio of outcomes to
contributions compared with a comparison to other’s ratio of
outcomes to contributions
Procedural justice
• Perceived fairness of the procedures used to decide the
distribution of resources

31. Equity Theory Own outcomes Other’s outcomes Own inputs Other’s inputs
Your Own Outcome/Input Ratio
Comparison Other’s Outcome/Input Ratio
Own outcomes
Other’s outcomes
Compare own ratio with Other’s ratio
Own inputs
Other’s inputs
Perceptions of equity are explained by equity theory –
employees develop perceptions of fairness by comparing their
outcome/input ratio to the outcome/input ratio of some other
person
Perceptions of equity or inequity

32. Elements of Equity Theory
Outcome/input ratio
inputs -- what employee contributes (e.g., skill)
outcomes -- what employee receives (e.g., pay)
Comparison other
person/people against whom we compare our ratio
not easily identifiable
Equity evaluation
compare outcome/input ratio with the comparison other
Outcome/input ratio
• Inputs -- what employee contributes e.g. skill, effort,
reputation, performance, experience, hours worked
• Outcomes -- what employee receives e.g. pay, promotions,
recognition, interesting jobs, opportunities to improve skills
Comparison other
• Person/people against whom we compare our ratio
• Not easily identifiable – may be someone in the same job,
another job, or another company, or a “generalized”
comparison other
Equity evaluation
• Compare outcome/input ratio with the comparison other
• Result: Perception of equity, underreward inequity or
overreward inequity

33. Correcting Inequity Tension
Actions to correct underreward inequity
Example
Reduce our inputs
Less organizational citizenship
Increase our outcomes
Ask for pay increase
Increase other’s inputs
Ask coworker to work harder
Reduce other’s outputs
Ask boss to stop giving preferred treatment to coworker
Change our perceptions
Start thinking that coworker’s perks aren’t really so valuable
Change comparison other
Compare self to someone closer to your situation
Leave the field
Quit job
When people believe they are under- or over-rewarded, they
experience negative emotions (inequity tension)
Correcting Inequity Tension – Underreward Inequity
1. Reduce our inputs – e.g. work more slowly, offer fewer
suggestions, engage in less organizational citizenship behavior
2. Increase our outcomes – e.g. ask for a pay raise, make
unauthorized use of company resources
3. Increase the comparison other’s inputs – e.g. ask the better-paid
co-worker to do a larger share of the work
4. Reduce comparison other’s outcomes – e.g. ensuring the coworker
gets less desirable jobs or working conditions
5. Change our perceptions/beliefs i.e. perceptual rather than
behavioral – e.g. believe that the co-worker really is doing more
such as working longer hours
6. Change the comparison other – e.g. compare yourself more with
a friend who works in a similar job than the higher-paid coworker
7. Leave the field – e.g. move to another department, quit

34. Procedural Justice
Perceived fairness of procedures used to decide the distribution of resources
Higher procedural fairness with:
Voice
Unbiased decision maker
Decision based on all information
Existing policies consistently
Decision maker listened to all sides
Those who complain are treated respectfully
Those who complain are given full explanation
Perceived fairness of procedures used to decide the
distribution of resources
Higher procedural fairness with:
• Voice – encourage employees to present their perspectives
• Unbiased decision maker
• Decisions based on complete and accurate information
• Applies existing policies consistently
• Decision maker listened to all sides
• Those who express concerns are treated respectfully
• A full explanation of the decision is provided
Note: Consequences of Procedure Injustice – withdrawal or
aggression

35. Foundations of Employee Motivation