1. Chapter 5: Motivation McGraw-Hill/Irwin
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Learning Objectives Define motivation.
Describe four early theories of motivation
Maslow’s Hierarchy of Needs Theory
Herzberg’s Two Factor Theory
McClelland’s Acquired Needs Theory
Describe three contemporary motivation theories
Expectancy Theory
Goal Setting Theory
Equity theory
Understand how motivation affects job performance and organizational commitment.
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3. What is Motivation? Forces that initiate work-related effort.
Determine direction, intensity, and persistence of the effort.
Originates within and outside an employee.
Is critical because performance is a function of motivation and ability.
Motivating employees is an important organizational concern in the U.S. workforce. 
73 percent of American employees are not excited about their work.
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4. Motivation and Effort
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5. Motivation Theories Early (Need-Based) Theories
Deal with the question of what determines work motivation.
In other words, focus on profiling the needs that people seek to fulfill (e.g. need for power).
Contemporary (Process) Theories
Explain how and why motivation occurs but that do not indicate any specific values or needs.
In other words, focus on people’s thought or cognitive processes (e.g. expectancy).

6. Content Theories
Focus on profiling the needs that people seek to fulfill.
Maslow’s Hierarchy of Needs Theory
Herzberg’s Two-Factor (Motivatior-Hygiene) Theory
McClelland’s Acquired Needs Theory
They were formulated during the 1950s and 1960s.
Although they have been heavily attacked, they are the main basis for contemporary motivation theories.
Many practicing managers still use these theories.

7. Maslow’s Hierarchy of Needs Theory (certain needs must be met before other needs can motivate)
Humans are motivated by multiple needs and those needs exist in a hierarchical order.
A satisfied need may lose its motivational potential

8. Herzberg’s Two-Factor Theory
“If you want people to do a good job, give them a good job to do.”

9. McClelland’s Acquired Needs Theory
Need for achievement (nAch)
The desire to do something better or more efficiently, to solve problems, or to master complex tasks.
Need for affiliation (nAff)
The desire to establish and maintain friendly and warm relations with others.
Need for power (nPower)
The desire to control others, to influence their behavior, or to be responsible for others.

10. McClelland’s Acquired Needs Theory
Managerial Implications:
Achievement, affiliation, and power needs can be considered during the selection process, for better placement.
Managers should create challenging task assignments or goals.
Effective managers have
high need for power,
high need for achievement;
low need for affiliation.

11. Content theories Critique
Content theories are considered questionable in terms of validity.
Content theories failed:
to account for individual differences
to link motivation and needs to both satisfaction and performance
to consider cultural and professional differences

12. Contemporary (Process) Theories
Explain the process by which internal factors and cognitions influence a person’s motivation
In other words, focus on the thought processes through which people choose one action over another in the workplace.
Process theories:
Expectancy theory
Equity theory
Goal-setting

13. Expectancy Theory
Describes cognitive processes in choosing among voluntary responses.
Is based on the idea that behavior is directed toward pleasure and away from pain
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14. Expectancy Theory
Expectancy - belief that a high level of effort will result in successful performance
(Effort → Performance).
Is influenced by self-efficacy (belief that you have the capabilities needed to perform a certain task).
Based on:
Past accomplishments
Vicarious experiences
Verbal persuasion
Emotional cues
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15. Expectancy Theory
Instrumentality - belief that successful performance will result in certain outcomes (Performance → Outcomes).
Valence - the value of the outcomes.
Outcomes are positively valenced (attractive) when they satisfy needs (e.g. existence, safety, relatedness, esteem, meaning).
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16. Expectancy Theory
Factors that influence the Expectancy Theory Process:
Type of Motivation/What Outcomes are at Work:
Extrinsic motivation – comes from external factors (e.g., pay, bonuses, promotions).
Intrinsic motivation – comes from inside the individual (e.g., enjoyment, interest, knowledge gain).
How Much the Person Values Money
Meaning of money - the degree to which money is seen as having symbolic value.

17. Expectancy Theory

18. Goal Setting Theory
Goal Setting Theory views goals as the primary drivers of the intensity and persistence of effort.
Goals increase performance when the goals are:
Specific
Difficult, but accepted by employees
Accompanied by feedback (especially self- generated feedback)
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19. Goal Difficulty and Task Performance
What is a difficult goal?
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20. Goal Setting Theory
Why do specific, difficult goals have positive effects?
Assignment of a specific and difficult goal shapes people’s own self-set goals — the internalized goals that people use to monitor their own task progress.
Goals trigger the creation of task strategies, defined as learning plans and problem-solving approaches used to achieve successful performance.
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21. Goal-Setting Theory

22. Equity Theory
Suggests motivation depends on what happens to other people.
Employees create a “mental ledger” of their outcomes & inputs.
Employees compare their outcomes-to-inputs ratio to the ratio of a comparison other.
Referred to as “Cognitive calculus.”
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23. Three Outcomes of Equity Theory Comparisons
Equity: Your ratio is equal to your comparison other’s.
Underrewarded: Your ratio is less than your comparison other’s.
Overrewarded: Your ratio is greater than your comparison other’s
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24. Equity Restoration Behaviors
Any imbalance in ratios triggers equity distress —an internal tension that can only be alleviated by restoring balance to the ratios.
Equity Restoration Behaviors
:Change work inputs (e.g., reduce performance efforts)
Change the outcomes received (e.g., ask for a raise)
Leave the situation (e.g., quit)
Change the comparison person
Psychologically distort the comparisons
Take actions to change the inputs or outputs of the comparison person

25. Global Implications Are motivation theories culture-bound?
Most were developed for and by the United States
Goal-setting and expectancy theories emphasize goal accomplishment and rational individual thought
Maslow’s Hierarchy may change order
McClelland's nAch presupposes acceptance of a moderate degree of risk concern for performance
Equity theory closely tied to American pay practices
Hertzberg’s two-factor theory does seem to work across cultures

26. What Do These Theories Tell Us About Compensation Systems?
Designing Compensation Systems
Provide specific, difficult goals (Goal Setting Theory).
Lump sum bonuses & gainsharing create goals which increase productivity.
Use individual monetary outcomes.
Employees feel higher instrumentality (Expectancy Theory).
Employees are likely to feel their ratio is equal to their comparison others’ (Equity Theory).
Focus on employees’ self-efficacy (Expectancy Theory).

27. Effects of Motivation on Performance and Commitment
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28. Takeaways Motivation: forces that initiate work-related effort.
Content theories deal with the question of what determines work motivation.
Expectancy theory: describes cognitive process in making choices among voluntary behaviors.
Includes: expectancy, instrumentality, valence
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29. Takeaways
Goal setting theory: suggests specific, difficult goals lead to higher performance.
Equity theory: suggests rewards are equitable when a person’s outcomes-to-inputs ratio matches those of a comparison other.
Motivation has a positive relationship with job performance and organizational commitment.