1. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Chapter 5 Motivation: Background and Theories

2. 5 - 2 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Motivation: Forces acting on an employee that initiate and direct behavior.

3. 5 - 3 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. The Starting Point: The Individual  Need – a deficiency or lack of something of value that an individual experiences at a particular point in time.  Deficiencies may be: Physiological (e.g., a need for food) Physiological (e.g., a need for food) Psychological (e.g., a need for self-esteem) Psychological (e.g., a need for self-esteem) Sociological (e.g., a need for social interaction) Sociological (e.g., a need for social interaction)  When needs are present, the individual will seek to fulfill those needs and may be more susceptible to managers’ motivational efforts.

4. 5 - 4 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. The Motivational Process: An Initial Model The Employee I Need deficiencies II Search for ways to satisfy needs III Goal-directed behavior IV Performance (evaluation of goals accomplished) V Rewards or punishments VI Need deficiencies reassessed by the employee

5. 5 - 5 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Motivation Theories: A Classification System Content Motivation Theories  Theories that focus on factors within a person that: Energize behavior Energize behavior Direct behavior Direct behavior Sustain behavior Sustain behavior Stop behavior Stop behavior These factors can only be inferred. These factors can only be inferred. Content Motivation Theories  Theories that focus on factors within a person that: Energize behavior Energize behavior Direct behavior Direct behavior Sustain behavior Sustain behavior Stop behavior Stop behavior These factors can only be inferred. These factors can only be inferred. Process Motivation Theories  Theories that describe and analyze how behavior is: Energized Energized Directed Directed Sustained Sustained Stopped Stopped Process Motivation Theories  Theories that describe and analyze how behavior is: Energized Energized Directed Directed Sustained Sustained Stopped Stopped

6. 5 - 6 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. For managers to be effective, the content theories suggest that they must:  Determine what needs trigger desired performance, group, and personal behaviors.  Be able to offer meaningful rewards that help the employee satisfy needs.  Know when to offer appropriate rewards to optimize performance behavior.  Not assume that a person’s need deficiencies will repeat themselves in a regular pattern.

7. 5 - 7 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Content Theories of Motivation: Maslow’s Need Hierarchy Maslow defined human needs as:  Physiological: the need for food, drink, shelter, and relief from pain.  Safety and Security : the need for freedom from threat; the security from threatening events or surroundings.  Belongingness, social, and love: the need for friendship, affiliation, interaction, and love.

8. 5 - 8 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Content Theories of Motivation: Maslow’s Need Hierarchy (continued)  Esteem: the need for self-esteem and for respect from others.  Self-actualization: the need to fulfill oneself by maximizing the use of abilities, skills, and potential.

9. 5 - 9 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Content Theories of Motivation: Alderfer’s ERG Theory Alderfer proposes a hierarchy involving three sets of needs:  Existence: needs satisfied by such factors as food, air, water, pay, and working conditions.  Relatedness: needs satisfied by meaningful social and interpersonal relationships.  Growth: needs satisfied by an individual making creative or productive contributions.

10. 5 - 10 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. ERG THEORY RELATIONSHIPS AMONG FRUSTRATION, IMPORTANCE, and SATISFACTION OF NEEDS Frustration of growth needs Frustration Frustration of relatedness needs Frustration of relatedness needs Frustration of existence needs Frustration Importance of growth needs Importance Importance of relatedness needs Importance of relatedness needs Importance of existence needs Importance Satisfaction of growth needs Satisfaction of relatedness needs Satisfaction of existence needs ERG Theory Relationships Among Frustration, Importance, and Satisfaction of Needs

11. 5 - 11 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Extrinsic factors Intrinsic factors Factors within the job context: Factors within the job content: 4 Pay 4 Status 4 Working conditions 4 Achievement 4 Increased responsibility 4 Recognition Dissatisfiers Hygiene factors Dissatisfiers SatisfiersMotivatorsSatisfiersMotivators Content Theories of Motivation: Herzberg’s Two-Factor Theory

12. 5 - 12 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. I. TRADITIONAL High job dissatisfaction High job satisfaction II. HERZBERG’S TWO-FACTOR VIEW Low job satisfaction High job satisfaction Low job dissatisfaction High job dissatisfaction Motivators Feeling of achievement Feeling of achievement Meaningful work Meaningful work Opportunities for advancement Opportunities for advancement Increased responsibility Increased responsibility Recognition Recognition Opportunities for growth Opportunities for growth Hygienes Pay Pay Status Status Job security Job security Working conditions Working conditions Fringe benefits Fringe benefits Policies and procedures Policies and procedures Interpersonal relations Interpersonal relations Traditional and Herzberg Views of Satisfaction - Dissatisfaction

13. 5 - 13 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Content Theories of Motivation: McClelland’s Learned Needs Theory Achievement (n Ach) Affiliation (n Aff) Power (n Pow)

14. 5 - 14 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. A Comparison of the Content Theories Maslow (need hierarchy) Self-actualizationEsteemBelongingness, social, and love Safety and security PhysiologicalMaslow (need hierarchy) Self-actualizationEsteemBelongingness, social, and love Safety and security PhysiologicalHerzberg (two-factor theory) The work itself ResponsibilityResponsibility AdvancementAdvancement GrowthGrowthAchievementRecognition Quality of inter- personal relations among peers, with supervisors, with subordinates Job security Working conditions SalaryHerzberg (two-factor theory) The work itself ResponsibilityResponsibility AdvancementAdvancement GrowthGrowthAchievementRecognition Quality of inter- personal relations among peers, with supervisors, with subordinates Job security Working conditions SalaryAlderferGrowthRelatednessExistenceAlderferGrowthRelatednessExistenceMcClelland Need for achievement power affiliationMcClelland achievement power affiliation Motivators Hygieneconditions Higherorderneeds Basicneeds

15. 5 - 15 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Process Theories of Motivation – describe how employees are motivated or how they select behaviors to meet their needs and determine whether they made the most successful choice. Process explanations of motivation suggest that motivation varies from situation to situation.

16. 5 - 16 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Process Theories of Motivation: Expectancy Theory  Theory in which an employee is faced with a set of first-level outcomes and selects an out- come based on how the choice is related to second-level outcomes.  The individual’s preferences are based on the: Strength (valence) of the desire to achieve a second-level state. Strength (valence) of the desire to achieve a second-level state. Perception of relationship between first- and second-level outcomes. Perception of relationship between first- and second-level outcomes.

17. 5 - 17 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Process Theories of Motivation: Expectancy Theory (continued) Management practices:  Managers need to focus on employee expectations for success.  Managers must actively determine which second-level outcomes are important to employees.  Managers should link desired second-level outcomes to the organization’s performance goals.

18. 5 - 18 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Process Theories of Motivation: Equity Theory  Employees compare their efforts and rewards with those of others in similar work situations.  Individuals, who work in exchange for rewards from the organization, are motivated by a desire to be equitably treated at work.  Equity exists when employees perceive that the ratios of their inputs (efforts) to their outcomes (rewards) are equivalent to the ratios of other similar employees.  Inequity exists when these ratios are not equivalent.

19. 5 - 19 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Compares his/her input/outcome ratio to reference person’s (RP) inputs (I) and outcomes (O) and perceives OPORP IPIRP equity = OPORP IPIRP inequity < OPORP IPIRP inequity > or IP: Inputs of the person OP: Outcomes of the person IRP: Inputs of reference person ORP: Outcomes of reference person A person (P) with certain inputs (I) and receiving certain outcomes (O) The Equity Theory of Motivation

20. 5 - 20 McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Alternatives to Restore Equity Changing inputs Changing outcomes Changing the reference person Changing the inputs or outcomes of the reference person Changing the situation