CHAPTER 8 • SOCIAL NEEDS

- Since people are social beings,

MOTIVATION IN INDUSTRY
they need to belong and be
MOTIVATION IN INDUSTRIAL accepted by others. People try to
MANAGEMENT satisfy their need for affection,
acceptance and friendship
- Motivation is the word derived
from the word 'motive' which
• ESTEEM NEEDS
means needs, desires, wants or
- once people begin to satisfy their
drives within the individuals. It is
need to belong, they tend to want
the process of stimulating people
to be held in esteem both by
to actions to accomplish the
themselves and by others. This
goals. In the work goal context the
kind of need produces such
psychological factors stimulating
satisfaction as power, prestige
the people's behavior can be -
status and self-confidence. It
desire for money & success.
includes both internal esteem
- It is the job of industrial and
factors like self-respect, autonomy
organizational psychologists to
and achievements and external
determine what these various
esteem factors such as states,
motivations are and how jobs and
recognition and attention.
working conditions can be
designed to satisfy them.
• NEED FOR SELF-ACTUALIZATION
IMPORTANCE OF MOTIVATION IN - Maslow regards this as the highest
INDUSTRY need in his hierarchy. It is the drive
to become what one is capable of
- Motivated employees put in their 1. ABRAHAM MASLOW’S “NEED becoming; it includes growth,
maximum effort for achieving HIERARCHY THEORY” achieving one’s potential and self-
organizational goals. Motivation - Maslow saw human needs in the fulfillment. It is to maximize one’s
improves the work performance form of a hierarchy, ascending potential and to accomplish
by bridging the gap between the from the lowest to the highest, something.
ability and willingness to work. and he concluded that when one
Better performance results in set of needs is satisfied, this kind 2. MCCLELLAND’S HUMAN
higher productivity and of need ceases to be a motivator. MOTIVATION THEORY
consequently lower cost of - David McClelland built on this
production. • PHYSIOLOGICAL NEEDS work in his 1961 book, "The
THEORIES OF MOTIVATION - These are important needs for Achieving Society." He identified
sustaining the human life. Food, three motivators that he believed
• CONTENT THEORIES water, warmth, shelter, sleep, we all have: a need for
- Explain the specific factors that medicine and education are the achievement, a need for
motivate people and answers the basic physiological needs which affiliation, and a need for power.
question “what drives behavior?” fall in the primary list of need People will have different
- assume that all individuals possess satisfaction. Maslow was of an characteristics depending on their
the same set of needs and opinion that until these needs dominant motivator.
therefore prescribe the were satisfied to a degree to - According to McClelland, these
characteristics that ought to be maintain life, no other motivating motivators are learned, also
present in jobs. factors can work. known as Learned Needs Theory
o Maslow’s Hierarchy of Needs - McClelland says that, regardless of
o Herzberg’s 2 Factor Theory • SECURITY OR SAFETY NEEDS our gender, culture, or age, we all
o Theory X and Theory Y - These are the needs to be free of have three motivating drivers, and
o Clayton Alderfer’s ERG physical danger and of the fear of one of these will be our dominant
o McClelland’s Achievement, losing a job, property, food or motivating driver. This dominant
Power and Affiliation Needs shelter. It also includes protection motivator is largely dependent on
against any emotional harm. our culture and life experiences.
• ACHIEVEMENT • POWER
- People motivated by achievement - Those with a high need for power • EXISTENCE NEEDS
need challenging projects. They work best when they're in charge. - the lowest level needs and are
thrive on overcoming difficult Because they enjoy competition, concerned with physical survival.
problems or situations, so make they do well with goal-oriented They include the obvious needs for
sure you keep them engaged this projects or tasks. They may also be food, water, shelter, and physical
way. People motivated by very effective in negotiations or in safety. An employer can satisfy
achievement work very effectively situations in which another party these needs through salary,
either alone or with other high must be convinced of an idea or benefits, safe working
achievers. When providing goal. When providing feedback, be environment and some measure
feedback, give achievers a fair and direct with these team members. of job security. Existence needs
balanced appraisal. They want to And keep them motivated by relate to tangible environmental
know if they’re doing right – and helping them further their career goals such as being able to buy
wrong – so that they can improve. goals . food and shelter.
o CHARACTERISTICS OF THIS o CHARACTERISTICS OF THIS
PERSON PERSON • RELATEDNESS NEEDS
- Has a strong need to set and - Wants to control and influence - involve interactions with other
accomplish challenging goals. others. people and the satisfaction they
- Takes calculated risks to - Likes to win arguments. can bring in the form of emotional
accomplish their goals. - Enjoys competition and winning. support, respect, recognition, and
- Likes to receive regular feedback - Enjoys status and recognition. a sense of belonging. These needs
on their progress and can be satisfied on the job by any
achievements. 3. THE ERG THEORY OF MOTIVATION social relationships with co-
- Often likes to work alone - The ERG needs are not rigidly workers and off the job by friends
hierarchical. More than one of the and family.
• AFFILIATION ERG needs can operate at the
- People motivated by affiliation same time. Satisfaction of one • GROWTH NEEDS
work best in a group environment, need does not lead automatically - focus on the self and include the
so try to integrate them with a to the emergence of a higher need for personal growth and
team whenever possible. They need. development, which can be
also don't like uncertainty and risk. satisfied only by using one’s
When providing feedback to these - Frustration of one of Alderfer’s capabilities to the fullest. This
people, be personal. It's still higher needs may lead to a conception includes Maslow’s self-
important to give balanced reversion to a lower need. For esteem and self-actualization
feedback, but if you start your example, in Alderfer’s theory, if a needs. Both aspects-esteem and
appraisal by emphasizing their worker’s relatedness need is not growth- must be satisfied. A job
good working relationship and being satisfied, he or she may give can provide satisfaction of the
your trust in them, they'll likely be up on it and focus instead on the growth needs if it involves
more open to what you say. existence needs.. challenge, autonomy, and
Remember that these people creativity.
often don't want to stand out, so it - Alderfer suggest that satisfaction
might be best to praise them in of a need may increase in its
private rather than in front of intensity. If, for example, a job
others. affords a great deal of challenge,
o CHARACTERISTICS OF THIS autonomy, and creativity, the
PERSON growth needs, instead of being
- Wants to be liked, and will often go fulfilled, might become stronger,
along with whatever the rest of necessitating additional
the group wants to do. autonomy, and challenge for
- Favors collaboration over satisfaction.
competition.
- Doesn't like high risk or
uncertainty.
4. THE MOTIVATOR-HYGIENE little power to produce 3. Give employees additional
THEORY OF MOTIVATION AND satisfaction. authority and freedom in their
JOB SATISFACTION work.
- The motivator- hygiene theory, - In Herzberg's theory, hygiene 4. Provide reports on production on
combining motivation and job needs must be satisfied before a regular basis directly to the
satisfaction, was proposed by attention is paid to motivator workers instead of to their
Frederick Herzberg in 1959. needs. It is important to supervisors.
remember, however, that 5. Encourage workers to take on new
- The premise of the motivator- satisfaction of hygiene needs will and difficult tasks. 6. Assign highly
hygiene theory is that lower-level not produce job satisfaction, specialized tasks so that workers
needs have generally been merely an absence of can become expert in a particular
satisfied in contemporary society. dissatisfaction. task or operation
Where they have not, job
dissatisfaction is the result. The - The primary criticism of • EXAMPLE OF HERZBERG’S TWO-
fulfilment of basic needs does not Herzberg’s theory is directed FACTOR THEORY
produce job satisfaction. Only against the alleged mutual - This concept puts forward two
higher order needs such as self- independence of the two factors factors that motivate employees:
actualization are capable of or needs, motivator and hygiene. job satisfaction and job
producing satisfaction. But, failure In Herzberg’s view, only motivator dissatisfaction. While these might
to find self-actualization in a job needs can produce job satisfaction seem like opposites, they work
does not necessarily lead to and only hygiene needs can together in a cycle. For example,
dissatisfaction. produce job dissatisfaction. And, when an employee is unhappy
as we discussed, achievement is a with their job, they may exhibit
- 2 sets of needs: those that motivator need. It is possible, low performance or consider
produce job satisfaction and those therefore, that the distinction quitting the company.
that produce job dissatisfaction. between motivator and hygiene
They are separate; the presence or factors is not as rigid as Herzberg • IMPORTANCE OF HERZBERG’S
absence of one set of needs does indicated. Some aspects of the THEORY
not produce the opposite work environment may serve as - Understanding Herzberg's theory
condition. Herzberg calls the motivators in addition to the recognizes the intrinsic
factors that produce job intrinsic aspects of the job. satisfaction that can be obtained
satisfaction motivator needs they from the work itself. It draws
motivate the worker to the highest • JOB ENRICHMENT attention to job design and makes
level of performance. These - Because so much of a person's managers aware that problems of
motivators are an integral part of satisfaction and motivation derive motivation may not necessarily be
the work itself and include the from the nature of the work, it directly associated with the work.
nature of the work and the follows that a job could be Problems can often be external to
person's sense of achievement, redesigned to maximize the the job.
level of responsibility and personal motivator factors. This effort,
development and advancement. known as job enrichment, has • IMPLICATION OF HERZBERG’S
The motivator needs can be been a major impact of Herzberg's TWO-FACTOR THEORY AT THE
satisfied only by stimulating, theory. WORK SETTING
challenging and absorbing work. o WAYS OF ENRICHING A JOB - The Two-Factor theory implies
1. Remove some of the controls over that the managers or supervisors
- Herzberg's theory has helped to employees and increase their must stress upon guaranteeing the
focus interest on the importance personal accountability or adequacy of the hygiene factors to
of the intrinsic aspects of the job responsibility for their own work. avoid employee dissatisfaction.
and their ability to motivate 2. Provide employees with complete Also, the managers must make
workers. It also spawned the or natural units of work where sure that the job is stimulating and
concept of job enrichment. possible. For example, instead of rewarding so that the employees
- The factors that produce job having them make one are motivated to work and
dissatisfaction are the hygiene (or component of a unit; let them perform harder and better.
maintenance) needs. They have produce the whole unit.
5. “THEORY X AND THEORY Y” OF - An organization that is run on • WHO PROPOSED EXPECTANCY
DOUGLAS MCGREGOR Theory X lines tends to be THEORY?
- McGregor, in his book “The authoritarian in nature, the word - Author. In 1964, Victor H. Vroom
Human side of Enterprise” states “authoritarian” suggests such developed the expectancy theory
that people inside the ideas as the “power to enforce through his study of the
organization can be managed in obedience” and the “right to motivations behind decision-
two ways. The first is basically command.” In contrast Theory Y making. This theory is relevant to
negative, which falls under the organizations can be described as the study of management.
category X and the other is “participative”, where the aims of
basically positive, which falls the organization and of the 2. PORTER AND LAWLER THEORY OF
under the category Y. After viewing individuals in it are integrated; MOTIVATION – REWARDS
the way in which the manager individuals can achieve their own - Porter and Lawler extended
dealt with employees, McGregor goals best by directing their efforts Vroom's work by examining more
concluded that a manager’s view towards the success of the closely the traits and perceptions
of the nature of human beings is organization of the individual and the nature
based on a certain grouping of and impact of rewards on
assumptions and that he or she motivation. The Porter and Lawler
tends to mold his or her behavior • PROCESS THEORIES model is a process model that
towards subordinates according to - helps explain how an individual’s explains the conditions and
these assumptions. behavior is energized, directed, processes by which motivation to
sustained, and stopped. work takes place.
• ASSUMPTIONS OF THEORY X - stress the difference in people’s
- Employees inherently do not like needs and focus on the cognitive - The Porter and Lawler theory of
work and whenever possible, will processes that create these motivation is based on the
attempt to avoid it. differences. These are: Goal assumption that rewards cause
- Because employees dislike work, setting, Expectancy etc. satisfaction and that sometimes
they have to be forced or o Expectancy Theory performance produces reward.
threatened with punishment to o Porter Lawler Extension of
achieve goals. Expectancy Theory - They hypothesize that the
- Employees avoid responsibilities o Equity Theory relationship between satisfaction
and do not work till formal o Goal-setting Theory and performance is linked by
directions are issued. another variable rewards. They
- Most workers place a greater 1. EXPECTANCY THEORY OF see good- performance leading to
importance on security over all MOTIVATION reward which lead to satisfaction.
other factors and display little - Originated by Victor Vroom, states It is a multi-variable model and
ambition. that people make choices based explains the complex of
on their perceived expectancy that relationship among motivation,
• ASSUMPTIONS OF THEORY Y rewards will follow if they behave performance and satisfaction.
- Physical and mental effort at work in a certain way. In the work
is as natural as rest or play. situation, this means that people - They argue that satisfaction does
- People do exercise self-control and will work hard if they expect this not always lead to performance.
self-direction and if they are effort to lead to desirable rewards Rather is reverse is true, because
committed to those goals. such as higher pay or promotion. people can become complacent
- Average human beings are willing after having achieved satisfaction
to take responsibility and exercise - Expectancy theory suggests that once. On the other hand,
imagination, ingenuity and individuals are motivated to performance can lead to
creativity in solving the problems perform if they know that their satisfaction if the reward systems
of the organization. extra performance is recognized are effective
- it can be detected that theory X and rewarded. Companies using
assumes that lower-order needs performance-based pay can
dominate individuals and theory Y expect improvements.
assumes that higher-order needs
dominate individuals.
• 2 TYPES OF REWARD 3. GOAL-SETTING THEORY OF • LOCKE & LATHAM’S 5 PRINCIPLES
o INTRINSIC REWARDS MOTIVATION - goal setting principles that can
- given to an individual by himself - Developed by Edwin Locke, goal- improve our chances of success
for good performance. They setting theory also has a common- o SETTING CLEAR GOALS
include feelings of sense appeal and is clearly - When your goals are clear, you
accomplishment and satisfaction relevant to the world of work. know what you're trying to
of higher-level needs as defined by achieve. You can also measure
Maslow. Intrinsic reward are - Locke argues that our primary results accurately, and you know
directly related to good motivation in a work situation can which behaviors to reward. This is
performance only if the job be defined in terms of our desire why SMART is such useful.
structure is varied and challenging to achieve a particular goal. The o SETTING CHALLENGING
so an individual can reward goal represents what we intend to GOALS
himself if he feels he has do at a given time in the future. - People are often motivated by
performed well For example, we may have as a challenging goals, however it's
o EXTRINSIC REWARDS goal graduating from college with important not to set a goal that is
- given by the organization and honors. so challenging it can't be achieved.
satisfy mainly lower-level needs. o SECURING TEAM
They include such things as pay, - Goals are important in any COMMITMENT
promotion, status, and job endeavor, motivating and guiding - To be effective, your team must
security. extrinsic rewards are our behavior so that we perform in understand and agree to the goals
weekly connection to the most effective way. Studies of
performance work behavior have shown how - This doesn't mean that you have
goals influence our motivation. For to negotiate every goal with your
- This variable refers to the amount example, having goals results in team members and secure their
of rewards an individual feels he higher performance than not approval. They're likely to commit
should receive as a result of his having goals. to it as long as they believe that
performance. This variable can the goal is achievable, it is
also be expanded to include the - Goals facilitate job performance in consistent with the company's
amount of rewards an individual four ways: they direct attention ambitions, and the person
feels should be attached to a and action, they mobilize energy assigning it is credible.
particular position within the and effort, they increase o GAINING FEEDBACK
organization. Satisfaction is persistence, and they motivate the - In addition to selecting the right
determined by the difference development of the behaviors that goals, you should also listen to
between actual rewards and are appropriate and necessary to feedback, so that you can gauge
perceived equitable rewards. If attain the goals. how well you and your team are
actual reward exceeds perceived progressing.
rewards, then it results in - The goal-setting theory is probably
satisfaction. If opposite occurs, it the most thoroughly researched. - Feedback gives you the
results in dissatisfaction. The The evidence is highly supportive. opportunity to clarify people's
degree to which a person is either In case after case, goal-setting has expectations and adjust the
satisfied or dissatisfied depends been found to produce substantial difficulty of their goals.
on the size of the difference increases in employee output.
between the actual and perceived Further, the theory is high in both - Keep in mind that feedback
equitable rewards scientific validity and usefulness doesn't have to come from other
on the job people. You can check how well
you're doing by simply measuring
• SMART your own progress.
- Specific, Measurable, Attainable,
Relevant, and Timebound - Goal setting is something that
many of us recognize as a vital part
of achieving success.
- By understanding goal-setting
theory, you can apply Locke and • EQUITY THEORY SUMMARY
Latham's principles to your goals. - the Equity Theory of Motivation
Their research confirms the proposes that high levels of
usefulness of SMART goal setting, employee motivation in the
and their theory continues to workplace can only be achieved
influence the way that we when each employee perceives
measure performance today. their treatment to be fair relative
to others. Employees will compare
- To use this tool, set clear, themselves to other groups both
challenging goals and commit inside and outside of the
yourself to achieving them. Be organization. In doing so, they will
sure to provide feedback to others compare the total of all inputs
on their performance towards against the total of all outputs. If
achieving their goals, and reflect they perceive unfairness they will
on your own progress as well. adjust their inputs to compensate,
working more or working less,
- If you follow these simple rules, depending on if their situation is
your goal setting will be much positive or negative relative to the
more successful, and your overall group or person being compared.
performance will improve.

4. EQUITY THEORY – KEEPING

EMPLOYEES MOTIVATED
- Adam’s Equity Theory, also known
as the Equity Theory of
Motivation, was developed in
1963 by John Stacey Adams, a
workplace behavioral
psychologist.

- Equity Theory is based on the idea

that individuals are motivated by
fairness. In simple terms, equity
theory states that if an individual
identifies an inequity between
themselves and a peer, they will
adjust the work they do to make
the situation fair in their eyes. As
an example of equity theory, if an
employee learns that a peer doing
exactly the same job as them is
earning more money, then they
may choose to do less work, thus
creating fairness in their eyes.

- Adam’s Equity Theory tells us that

the higher an individual’s
perception of equity (fairness),
then the more motivated they will
be. Conversely, an individual will
be demotivated if they perceive
unfairness