CHAPTER 11: MANAGING PEOPLE

MOTIVATION

Reporters:

Encierto, Jenecelle C.

Fabro, Claren Jean

Fernandez, Mary Joy M.

October 12,2021
 Table of Contents

I. Managing People Motivation

II. Definition of Motivation
III. History of Motivation
IV. The Era of Industrial Psychology
V. Motivation Theories
VI. Maslow’s Hierarchy of Needs
VII. Herzberg’s Motivational- Hygiene Theory
VIII. Douglas McGregor’s Theory X and Y
IX. McClelland’s Learned Need Theory
X. Equity Theory
XI. Expectancy Theory
XII. Reinforcement Theory
XIII. Incentive Plans
XIV. Fun in the Workplace
XV. Summary
XVI. Sources
 I. Managing People Motivation

How to manage people motivation?

 Human resources are the heart and soul of the organization. In order for the
business to succeed, it is important that you should manage them effectively.

Where does globally competitive business success depends on?

 In today’s globally competitive business, success depends on the people to

optimize the full utilization of their talents. It is not enough to attract and
retain talented people; you should motivate them to use their talents.

What is the ultimate goal of employee motivation?

 Keeping an employee to work at full potential is the ultimate goal of

employee motivation.

What does an employment contract carry?

 The employment contract carries with it a contract of mutual expectations.

The Mutual Expectations

Employers Employees

Employers expect employees to:. Employees expect that they

should be:

1. Work hard, committed to. 1. Rewarded well and equitably

values of the organization 2. Treated fairly and humanely
2. Loyal and dependable 3. Provided with opportunities
for career
3. Keep the work standard set development and promotion
by the management. 4. Given work that suits their
abilities and
4. Observe the rules and regulations 5. Have a happy and safe
working environment.
and
5. Provide output in terms of
products or services that are

II. Definition of Motivation

What is motivation?
 Motivation is the internal condition that activates behavior and gives it
direction; energizes and directs goal- oriented behavior.

What is the heart of motivation?

 The heart of motivation is to give people what they really want most from
work. The more you are able to provide what they want, the more you should
expect what you really want, namely: productivity, quality, and service.

III. History of Motivation

1. Carrot and stick method

2. Psychology and well-being of worker

Carrot and stick Method

 Is the oldest technique used to motivate others.

 The name evolved from the stubbornness of donkeys that could only be moved
by taunting them with a carrot. Early managers regularly offered economic “
carrots” to entice people to work harder. This technique was passed on from
generation and was deeply rooted part of society for hundred years.

Disadvantage
° This theory created the misconception that money always motivated persons to
work harder.

° Hence, the awakening field of psychology was looking for new ways to
motivate people, and in a short time, managers would begin looking for
psychologist for new methods of management.

Psychology and Well being of Worker

In 1923, Elton Mayo made clear the inadequacy of the pure carrot and stick
motivation that psychological theory began to trickle down. Performing an
experiment in Philadelphia textile mill, Mayo concluded that the reason for the
low productivity was the spinners had few opportunities to communicate with one
another. Financial incentives failed to increase productivity. Mayo felt that the
solution to this productivity problem was to change the atmosphere of the
workplace.

IV. The Era of Industrial Psychology

The Proponent

Douglas McGregor – was on a of the few Americans in the 1950’s who

believed that workers actually cared about doing good work. He felt workers
would be much more productive if management is smart enough to align jobs with
worker needs.

The Era of Industrial Psychology

 This new era of industrial psychology led to a sensitive understanding of people
and their symbiotic relationship with organizations. The human resource
framework is built on core assumptions that highlight this linkage:

1. Organization exist to serve human needs rather than the reverse.

2. People and organizations needs each other.
3. When the fit between individual and system is poor, one or both suffer.
4. A good fit benefits both. Individuals find meaningful and satisfying work and
organizations get the talent and energy they need to succeed.

V. Motivation Theories

Needs become the central element in everyday psychology that gaves rise to the
development of Motivation Theories and these theories help provide insight into
why people behave the way they do and what organizes them.

VI. Maslow’s Hierarchy of Needs

Abraham Maslow’s hierarchy of needs is a theory of psychology explaining

human motivation based on pursuit of different levels of needs. It is often depicted
as a pyramid consisting of the five levels listed from the basic to most complex.
Physiological Needs

They are the literal requirements for human survival. It includes breathing,
food, sex, water, sleep, homeostasis and excretion.

Safety Needs
 These needs relate to a person’s needs to feel safe and secure in their life and
surroundings. It includes personal security, financial security, health and well-
being.

Social Need

It involves emotionally-based relationships in general, such as friendship and

intimacy.

Esteem

Also known as the belonging need, esteem presents the normal human desire to
be accepted and valued by others.

Self-Actualization

The motivation to realizes one’s own maximum potential and possibilities that
relates to the realization of an individuals full potential.

VII. Herzberg’s Motivation-Hygiene Theory

 Frederick Herzberg’s two factor theory, also known as intrinsic/extrinsic
motivation. Certain factors in the workplace result in job satisfaction, but if absent,
leads to dissatisfaction.

Herzberg distinguished between :

[Link] – (challenging work, recognition, responsibility) which give positive

satisfaction and,

[Link] Factors –(status, job security, salary and fringe benefits) that do not
motivate if present, but if absent, result in demotivation.

To move an employee from dissatisfaction to no dissatisfaction, a set of factors,

referred to as hygienes is used. These factors are extrinsic to the work itself.

The real job satisfiers which motivate employees are recognition, achievement,
advancement, responsibility and personal growth. These factors are intrinsic to the
job itself.

VIII. Douglas McGregor’s Theory X and Y

 McGregor in his book, “The Human Side of the Enterprise” published in 1960
has examined theories on behavior of individuals at work, and has formulated two
models which he calls Theory X and Theory Y.

Theory X

Management assumes employees are inherently lazy and will avoid work if
they can and because of this, workers need to be closely supervised and
comprehensive systems of controls developed.

Theory Y

Management assumes that employees maybe ambitious and self-motivated.

Theory Y managers believe that employees to seek out and accept responsibility
and exercise self control and direction in accomplishing objectives to which they
are committed.

For McGregor, Theory X and Y are not different ends of the same continuum.
Thus, a manager needs to apply Y principles but that does not prelude him from
being a part of Theory X and Y.
 IX. McClelland’s Learned Need Theory

Proposed that an individual’s specific needs are acquired over time and are
shaped by ones life experiences. Sometimes referred as three needs theory

Classified as:

1. Achievement – people with high need of achievement seek to excel and they
prefer 50% chance of success. This gives regular feedback to monitor progress
of their achievements and prefer to work individually or with other high
achievers
2. Affiliation- people with high need of affiliation tend to conform to the norms of
their work group and prefer work that provides significant personal interaction
3. Power
• Personal power- want to direct others and often perceived as undesirable
• Institutional power (social power)- want to organize efforts of others to
further the goals of the organization
• High achievers should be given challenging projects with reachable
goals and should be provided with frequent feedbacks
• Money may not be an important motivator, it is an important form of
feedback
• High affiliation people performs best in cooperative environment
• Management should provide power seeker opportunities to manage
others

McClelland’s theory allows for the shaping of a person’s needs; training programs
can be used to modify one’s need profile.
 X. Equity Theory

Developed by John Stacey Adams in 1962, a workplace and behavioral

psychologists. The theory attempts to explain relational satisfaction in terms of
perceptions of fair or unfair distribution of resources within interpersonal
relationships.

Considered as one of the justice theories. The idea is to have employees with
same input must be rewarded the same so workforce realize that the organization is
fair, observant and appreciative .

Has wide- reaching implications for employee morale, efficiency, productivity

and turnover.

Input

- Structure of equity in the workplace is based

- Contributions made by the employees for the organization (work done,
behavior, skills and experiences)

Primary assumptions applied to most business application

1. Equity norm- fair return for what they contribute to their jobs
2. Social comparison- workers comparing inputs and outcomes to their co-
workers
3. Cognitive distortion- employees that perceived themselves in an inequitable
situations will seek to reduce inequity either by distorting inputs or outcomes in
their minds or by leaving the organization

XI. Expectancy Theory

Developed by Victor Vroom, a psychologist and professor of organization and

management at Yale University. The theory predicts that employees will be
motivated when they believe that:

 putting in more effort will yield better job performances

 better job performance will lead to an organizations rewards
 these predicted organizational rewards are valued by the employees in
question

Emphasizes on the need for organization to relate rewards directly to

performance and ensure rewards provided are well deserved and wanted by the
recipients. One of the more widely accepted theories of motivation.

Three variables within expectancy theory

1. Expectancy probability- based on the perceived effort performance

2. Instrumentality probability- based on the perceived performance- reward
relationship
3. Valence- refers to the value the individual personally places on the rewards
 XII. Reinforcement Theory

This theory is a combination of rewards and/or punishments to reinforce

desired behavior or extinguish unwanted behavior. Any behavior that elicits a
consequence is called operant behavior, because the individual operates on his
environment.

Generally, there are two types of reinforcement which is the positive and
negative.

[Link] Reinforcement

It results when the occurrence of a valued behavioral consequence has the

effect of strengthening the probability of being repeated. For example, if you stay
late to complete a report for your boss which you are being a reward for doing so,
you are more likely to stay late again.

[Link] Reinforcement

It often confused with punishment, but they are not the same. Punishments
attempts to decrease the probability of specific behaviors while negative
reinforcement attempts to increase desired behavior.
 Thus, both positive and negative reinforcements have the effect of increasing the
probability that a particular behavior will be learned and repeated.

The best known application of the principles of reinforcement theory is called

Behavioral Modification, or Behavioral Contingency Management. A behavioral
modification program is consists of 4 steps :

[Link] the desired behavior as objectively as possible.

[Link] the current incidence of desired behavior.

[Link] behavioral consequences that reinforce desired behavior.

[Link] the effectiveness of the program by systematically assessing

behavioral change.

XIII Incentive Plans

- It is a tool management use

- Rewards to employees
- Can be monetary, non- monetary (gift certificates, plaques of
appreciation, overseas trip and others
- Linked to employees performance

Step in designing incentive plan

 • Understand what the ideal end results would be
• Assess the behaviors, task and decision making actions the management
wants to encourage and discourage

Key fundamental in any successful incentive plan

1. Keep it simple and easy to measure

Employees need to know what they can do to earn the incentive and what
will the incentives be.

3. Reward only for surpassing business goal

Incentives should be given only for superior performance
4. Reward great individual effort
Individual superstars serve as models for others to follow and emulate
5. Encourage team results

Track down outstanding performance by unit/ department results

6. Extraordinary Rewards
Reward must be something unusual that awardees would love to cherish and
keep

XIV. Fun in the Workplace

 Robert Haft International 1985 survey in US “only 15% of workers are fired
because of incompetence and the remaining 85% let go because of inability to get
along with fellow employees”.

Humor

 Should be quality of an effective employee

 communication, refreshes the spirit, builds relationships, reduce stress,
provides perspective, promotes attendance and reduce anger
 Builds strong ties of friendship and camaraderie, a sense of team effort and
staff cohesion
 Makes work interesting and enjoyable
 In trainings, humor can increase learners attention and retention of a concept
 Related to creativity
 Workers with humor are given more opportunities of promotion than
humorless people
 Can lead to increase productivity

“Laughter is the best medicine”

“Humor and laughter reduces stress by activating the physiological systems

including muscular, respiratory, cardiovascular and skeletal. When we laugh we
feel physically better, and after laughter we feel lighter and more relaxed” Steven
Sultanoff.

Unwritten limit on humor

 Toilet humor
 Co- workers physical impairments
 About your boss

XV. Summary

 Managers must brush up with all theories of motivation and understand

what motivates people
 Managers must create the environment in which employees will be
motivated to perform task to the maximum
 Humor and levity can help remove tension in workplace relationship
 Poor performance cannot always be ascribed to lack of motivation, it can be
physical environment or faulty equipment.

XVI. Source

Payos, Ranulfo P. (2010), Human Resource Management from the Practitioners

Point of View