DR. MRS.
ABIGAIL OPOKU MENSAH
CHAPTER 5
MOTIVATION
Motivation
The processes that account for an individual’s intensity, direction, and
persistence of effort toward attaining a goal
• Intensity: how hard a person tries (varies from person to person)
• Direction: where effort is channeled
• Persistence: how long effort is maintained
Motivation is concerned with why people choose a particular course of action
in preference to others and why they continue with that action
Motivation
Motivators
Theories of Motivation
It falls into two main categories
1. Content/ needs theories- what motivate
people ie their needs
2. Process theories- how motivations
occur.
Content Theories
These theories explains the things that motivate individuals at
work ( by identifying peoples needs)
• Maslow’s hierarchy of needs
• Two factor theory (motivation-hygiene theory)
• Alderfer’s ERG theory
• McClelland’s theory of needs
❖ Maslow’s Hierarchy of Needs
This theory assumes that people are motivated to satisfy
five levels of needs. Maslow’s theory is one of the ancient
and best-know content theories that expanciate why
individuals have different needs at a time.
❖ Maslow’s Hierarchy of Needs
❖ Criticisms of Maslow’s Hierarchy of Needs
Maslow's concept of the need hierarchy possesses a certain intuitive
logic and has been accepted universally by managers. But research has
revealed several shortcomings of the theory such as:
• Some research has found that five levels of needs are not always
present and that the order of the levels is not always the same as
assumed by Maslow.
• Moreover, it is difficult for organizations to use the need hierarchy
to enhance employee motivation.
❖ Herzberg Two-Factor Theory
Herzberg, suggested that, there are different set of factors that
entirely are associated with satisfaction and dissatisfaction from
research;
▪ Motivating factors and
▪ Hygiene factors
❖ Criticisms of Herzberg Two-Factor Theory
• The procedure that Herzberg used is limited by its methodology
• The reliability of Herzberg’s methodology is questioned
• Herzberg did not really produce a theory of motivation
• No overall measure of satisfaction was used
• The theory is inconsistent with previous research
❖ Alderfer’s ERG Theory
ERG theory was spearheaded by Clayton Alderfer to overcome the
problems Maslow faced in his theory. Alderfer’s theory groups human
needs into three main categories
• Existence Needs
Concerned with providing basic material existence requirements
• Relatedness needs
Desire for maintaining important interpersonal relationships.
• Growth needs
Intrinsic desire for personal development or growth on the job .
❖ McClelland Theory of Needs
McClelland came out with three basic needs which to some degree
correspond to Maslow’s self actualization, esteem, and social needs.
❖ Summary of Content Theories
Maslow Alderfer Herzberg McClelland
Self-Actualization
Growth Motivators Need for Achievement
Esteem
Need for Power
Affiliation Relatedness
Hygiene Need for Affiliation
Security Factors
Existence
Physiological
Process Theories
These theories explain how motivation occurs;
• Expectancy theory
• Goal-setting theory
• Equity theory
❖ Expectancy Theory
This theory was spearheaded by Victor Vroom (1964) and states that, the amount
of effort employees exert on their job depends on their expectation that their
effort will lead to rewards.
The theory focuses on three relationships:
• Effort-performance relationship (expectancy)
• Performance-reward relationship (instrumentality)
• Rewards-personal goals relationship (valence)
❖ Expectancy Theory
❖ Increasing Motivation Using Expectancy Theory
Improving Expectancy Improving Instrumentality Improving Valence
Improve the ability of the Increase the individual ’s belief that Make sure that the reward is
individual to perform performance will lead to reward meaningful to the individual
• Make sure employees have skills • Observe and recognize performance • Ask employees what rewards they
for the task • Deliver rewards as promised value
• Provide training • Indicate to employees how previous •
Give rewards that are valued
• Assign reasonable tasks and goals good performance led to greater
rewards
❖ Equity Theory
This motivational theory states that individuals compare their job
inputs and outcomes with those of others and then respond so as to
eliminate any inequalities.
❖ Equity Theory
There are four main elements of equity theory and they are:
• Outcome/input ratio; Some consider valuable inputs that deserve more
organizational outcome in return.
• Comparison other; e.g. people in senior most positions mostly compare
themselves with senior members in other organizations.
• Equity evaluation; the point that you have been tasked to accomplish a specific
task and which the resultant outcome is the same for both parties.
• Consequences of inequity; usually occurs in an organization where top
management realizes that employees have the feeling of being treated subjectively,
bias or unequal (inequity).
❖ Goal Setting Theory
Goal setting is the process of motivating employees and clarifying
their role perception by establishing performance objective. Goal
setting strongly improves employees’ performance in two ways:
❖ By stretching the intensity and persistence of effort.
❖ By giving employees clearer role perception so that their effort is
channeled towards behaviours that will increase work performance.
Goal setting theory is based on the notion that individuals sometimes have a drive to
reach a clearly defined end state. Often this end state is a reward in itself.
❖ Characteristics of Effective Goals
REWARD SYSTEMS
Definition
Reward system refers to all the monetary, non-monetary and
psychological payments that an organisation provides for its
employees in exchange for the work they perform.
Rewards schemes may include extrinsic and intrinsic rewards.
❖ Extrinsic rewards are items such as financial payments and
working conditions that the employee receives as part of the job.
❖ Intrinsic rewards relate to satisfaction that is derived from
actually performing the job such as personal fulfilment, and a sense
of contributing something to society
Types of Reward Systems
Membership and seniority based reward system
This type of reward system is based on length of service in the
organisation
Merits
• Attracts job applicant particularly when the size of the job rewards increase with
seniority
• Reduces labour turnover
Demerits
• They do not directly motivate employees job performance.
• Membership and seniority based reward systems discourage poor performers
from leaving the organisation.
Types of Reward Systems
Job Status –Based Rewards System
Organizations reward employees for the nature and type of work they do. Firms
with many employees, typically use job evaluation to evaluate their employees in
terms of their required skills.
Merits
• Job status rewards maintain a feeling of equity and also maintain equality
• Minimizes pay discrimination.
• Motivates employees to compete for positions
Demerits
• It motivates employees to increase their job status by exaggerating duties and hoarding of materials
and resources.
• It induces employees to focus on a narrowly defined tasks rather than broader organizational goals.
• It also inhibits communication between groups.
Types of Reward Systems
Competency Based Reward System
This refers to abilities, values, personality traits, and other characteristics that lead
people to superior performance. This rewards people for their skills, knowledge
and traits that lead to a desired performance in the organization.
Merits
• It is recognised for developing a better skilled and more flexible workforce.
• Customer needs are met more quickly because employee can move to different job as demand
requires
• Products or service quality tend to improve because employees who have several experiences tend
to know where problem originate.
Demerits
• It results to subjective personality assessment.
• It is difficult to measure personality traits through scientific methods.
• Plans are expensive and people must learn more skills, which has its own cost associated with it.
Types of Reward Systems
Performance based reward system .
Performance-related pay is a generic term for reward systems where
payments are made based on the performance, either of the
individual (individual performance-related pay) or a team of
employees (group performance-related schemes).
Incentive Schemes Under Performance based Reward Systems
