MOTIVATION

Definition:
Motivation is the set of forces that cause people to behave in certain ways.
Individual performance is generally determined by three factors:
1. motivation (the desire to do the job),
2. ability (capability to do the job), and
3. The work environment (the resources needed to do the job).
If the employee lacks ability, the manager can provide training or replace the worker. If resources
are a problem, the manager can correct it. But if motivation is the problem, the task for the
manager is more challenging. Individual behaviour is a complex phenomenon, and the manager
may be hard-pressed to figure out the precise nature of the problem and how to solve it. Thus,
motivation is important because of its significance as a determinant of performance and because of
its intangible character.

The Motivation Framework

Need or Search for Choice of

deficiency ways to behaviour to
satisfy need satisfy need

Determination
of future
needs and Evaluation of
search/choice need
for satisfaction
satisfaction

The motivation process progresses through a series of discrete steps. Content and process
perspectives on motivation address different parts of this process.

The purpose of behaviour is to satisfy needs.

Needs are what you must have to survive and live. Needs are the essentials, the "must have's" in
your life.
 Need = must have's
Wants are things that make your life easier or more enjoyable. Wants are not essential; they are
the "would like to have's" or the "nice to have's" in life.

Want = like to have, nice to have

The presence of an active need is expressed as an inner state of tension from which the
individual seeks relief.
The theories of motivation fall into two categories:
1. Content theories (focus on needs)
2. Process theories (focus on behaviours)

CONTENT
CONTENT PERSPECTIVES ON MOTIVATION:
Deals with the first part of the motivation process- needs and need deficiencies. More specially,
content perspectives address the question: “What factors in the workplace motives people?”
Three widely known content perspectives on motivation are the Maslow’s Hierarchy of Needs
the Herzberg’s Two -Factor Theory and McClelland’s Acquired Needs Theory.
The Need Hierarchy Approach /Maslow’s Hierarchy of Needs.
Need hierarchies assume that people have different needs that can be arranged in a hierarchy of
importance. The best known is Maslow’s hierarchy of needs. Pioneering psychologist Abraham
Maslow argued that people are motivated to satisfy five need level.
GENERAL EXAMPLES ORGANISATIONAL EXAMPLES

ACHIEVEMENT Self CHALLENGING

Actualisation JOB

STATUS JOB TITLE

ESTEEM

FRIENDSHIP FRIENDS AT
WORK
BELONGINGNESS NEEDS

STABILITY PENSION
PLAN
SECURITY NEEDS

FOOD BASIC
PHYSIOLOGICAL SALARY

NEEDS
 1. At the bottom of the hierarchy are the PHYSIOLOGICAL NEEDS- things like
food, sex and air that represent basic issues of survival and biological function. In
organisations these needs are generally satisfied by adequate wages and the work
environment itself, which provide restrooms, adequate lighting, comfortable temperatures,
and ventilation.
2. SECURITY NEEDS: people have the need for a secure physical and emotional
environment. For example the need to be free from worry about money and job security. These
needs can be satisfied in the work place by job continuity (no layoffs), a grievance system (to
protect against arbitrary supervisory actions), and an adequate insurance and retirement benefit
package (for security against illness and provision of income in later life).
3. BELONGINGNESS NEEDS relate to social processes. They include the need for love
and affection and the need to be accepted by one’s peers. These are satisfied for most
people by family and community relationships outside of work and friendship on the job. A
manager can help satisfy these needs by allowing social interaction and by making
employees feel like a part of a team or work group.
4. ESTEEM NEEDS: comprise of two different kids of needs- the need for a positive self-
image and self-respect and the need for recognition and respect from others. A manager
can help address these needs by providing a variety of extrinsic symbols of
accomplishment such as job titles, nice offices, and similar rewards as appropriate. At a
more intrinsic level, the manager can provide challenging job assignments and
opportunities for the employee to feel a sense of accomplishment.
5. SELF ACTUALISATION NEEDS: these involve realising one’s potential for continued
growth and individual development. The self-actualisation needs are perhaps that most
difficult for a manager to address. In fact, it can be argued that these needs must be met
entirely from within self-actualisation is possible. For instance, a manager could give
employees a chance to participate in making decisions about their work and the opportunity
to work and the opportunity to learn new things.
Home work:
1. Evaluate the limitations of Maslow’s theory.
2. Read up on the Two -Factor Theory
6. Physiological needs: relate to the normal functioning of the body. They include the needs
or water, food, rest, sex, and air. Until theses needs are met, a significant portion of an
individual’s behaviour will be aimed at satisfying them. In the organisational setting, these
are reflected in the needs for adequate heat, air, and base salary to ensure survival. Once
 the needs are satisfied, however, behaviour is aimed at satisfying the needs of the next level
of the Maslow’s Hierarchy.
7. Security or safety needs: relate to the individual’s desire to be free from harm, including
both bodily and economic disaster. Traditionally, Organisation has best helped employees
satisfy their security needs through safe jobs, fringe benefits and job security.
8. Social or belongingness needs: include the desire for love, companionship, and friendship.
These needs reflect a person’s desire to be accepted by others. In the organisation, these
needs influence the desire for good relationships with co-workers, participation in a work
group, and positive relationship with supervisors. As they are satisfied, behaviour shifts to
satisfying esteem needs.
9. Esteem needs: are concerned with the desire for respect. They are generally divided into
two categorises: self-respect and respect from others. Within Organisations, esteem needs
reflect a motivation for recognition, an increase in responsibility, high status and credit for
contributions to the organisation .Once esteem needs are satisfied, the individual moves to
the pinnacle of the hierarchy and emphasizes satisfying self-actualization needs.
10. Self –actualization needs: refers to the desire to maximize whatever potential an
individual possess. This need can be met in the organisation by providing people with
opportunities to grow, be creative, and acquire training for challenging assignments and
advancement.

B. The Two-Factor Theory.

Fredrick Herzberg developed this theory. Herzberg argues that the process of motivating
employees comprises of two stages. The two- factor theory of motivation suggests that people’s
satisfaction and dissatisfaction are influenced by two independent sets of factors- motivation
factors and hygiene factors.

MOTIVATION FACTORS. HYGIENE FACTORS

• Supervisors
• Achievem
• Working
conditions
en
ent
• Interperson
• Recogniti al relations
on
• Pay and
• The work security
itself
• Company
policies and
administrati
• Responsi on
bility

• Advance

Satisfaction No satisfaction Dissatisfaction No dissatisfaction

First, managers must ensure that the hygiene factors are not deficient. Pay and security must be
appropriate, working conditions must be safe, technical supervision must be acceptable etc. By
providing hygiene factors at an appropriate level, managers do not stimulate motivation but they
merely ensure that employees are ‘not dissatisfied.’ Employees whom managers attempt to
‘satisfy’ through hygiene factors alone will usually do just enough to get by. Thus, managers
should proceed to stage 2- giving employees the opportunity to experience motivation factors such
as achievement and recognition. The result is predicted to be a high level of satisfaction and
motivation. Herzberg also goes a step further than most theorists and describes exactly how to use
the two factor theory in the work place. Specifically, he recommends job enrichment. He argues
that jobs should be redesigned to provide higher levels of the motivation factors.
Although widely accepted by many managers, Herzberg’s two-factor theory is not without critics.
One critism is that the findings of Herzberg’s initial interviews are subject different explanations.
Another critism is that is sample was not represented by a large population and that subsequent
research often failed to uphold the theory.
The theory has had a major impact on managers, however, and has played a key role in increasing
their awareness of motivation and its importance in the workplace.
In addition to these theories, research has also focused on specific individual human needs that are
important in organisations. Theses three most important individual needs are achievement,
affiliation and power.
• Need for achievement: the desire to accomplish a goal or task more effectively than in the
past. People with a high need for achievement have a desire to assume personal
responsibility, a tendency to set moderately difficult goals, a desire for specific and
immediate feedback, and a preoccupation with their task.
• Need for Affiliation: the desire for human companionship and acceptance. People with a
strong need for affiliation are likely to prefer and perform better in a job that entails a lot of
social interaction and offers opportunities to make friends.
• Need for Power: the desire to be influential in a group and to control one’s environment.
People with a strong need fro power are likely to be superior performers, have good
attendance records, and occupy supervisory positions.

MASLOW’S HIERARCHY OF NEEDS

Maslow states that human beings possess the five basic needs, and theorises that these five basic
needs can be arranged in a hierarchy of importance – the order in which individuals generally
strive to satisfy them.

1. Physiological needs: relate to the normal functioning f the body. They include the needs or
water, food, rest, sex, and air. Until theses needs are met, a significant portion of an
individual’s behavior will be aimed at satisfying them. Once the needs are satisfied,
however, behavior is aimed at satisfying the needs of the next level of the Maslow’s
Hierarchy.
2. Security o safety needs: relate to the individual’s desire to be free from harm, including
both bodily and economic disaster. Traditionally, management has best helped employees
satisfy their physiological and security needs through adequate wages and salaries, which
employees use to purchase such things as food and housing.
 3. Social needs: include the desire for love, companionship, and friendship. These needs
reflect a person’s desire to be accepted by others. As they are satisfied, behavior shifts to
satisfying esteem needs.
4. Esteem needs: are concerned with the desire for respect. They are generally divided into
two categorises: self-respect and respect from others. Once esteem needs are satisfied, the
individual moves to the pinnacle of the hierarchy and emphasizes satisfying self-
actualization needs.
5. Self –actualization needs: refers to the desire to maximize whatever potential an
individual possess. For example, in the school system a Principal who seeks t satisfy self-
actualization needs would strive to become the best Principal possible. (reflecting the
human desire to maximise personal potential)

PROCESSES
• PROCESS PERSPECTIVES ON MOTIVATION:
• The process approach emphasizes how and why people choose certain behaviours in order
to meet their personal goals. Process theories focus behaviours that people choose to
meet their needs. Four useful process theories on motivation are the Needs –Goal Theory,
Vroom expectancy theory, Equity theory, Theory X and Theory Y (Douglas
McGregor), Porter – Lawler theory.

PROCESS PERSPECTIVES ON MOTIVATION:

The process approach emphasizes how and why people choose certain behaviours in order to
meet their personal goals. Process theories focus on external influences or behaviours that people
choose to meet their needs. External influences are often readily accessible to supervisors

Process perspectives are concerned with how motivation occurs. Rather than attempting to identify
motivational stimuli, process perspectives focus on why people choose certain behavioural options
to satisfy their needs and how they evaluate their satisfaction after they have attained these goals.
Four useful process perspectives on motivation are the
• Needs –Goal Theory
• Vroom expectancy theory
 • Equity theory
• Theory X and Theory Y ( Douglas McGregor)
• Porter – Lawler theory.

The Needs- Goal Theory of Motivation: is the most fundamental of the motivation theories.
Motivation begins with an individual feeling a need. This need is then transformed into behaviour
directed at supporting, or allowing, the performance of goal behaviour to reduce the felt need.
Theoretically, goal- supportive behaviour and goal behaviour itself continue until the felt need has
been significantly reduced.

FELT NEED
FEEDBACK GOAL

SUPPORTIVE

BEHAVIOUR
GOAL
BEHAVIOUR

For example, when an individual feels hunger, this need is typically transformed first into
behaviour directed at supporting the performance of the goal behaviour of eating. This supportive
behaviour could include such activities as buying, cooking and serving the food to be eaten. The
goal supportive behaviours and the goal behaviour itself- eating- generally continue until the
individual’s hunger substantially subsides. When the individual experiences hunger again, the
entire cycle is repeated.

Expectancy theory
Expectancy theory: ·

Vroom's Expectancy Model suggests that people choose among alternative behaviours because
they anticipate that particular behaviours will lead to one or more desired outcomes and that other
behaviours will lead to undesirable outcomes. Expectancy is the belief that effort will lead to first-
order outcomes, any work-related behaviour that is the direct result of the effort an employee
expends on a job.

Organisational
Wards
 Behaviour Individual Individual
Motivation Effort Performance
Required

Organisational Rewards

Domestic
Problems

Ex1.
Suppose that, late one Friday afternoon, John Dillip’s boss asks him to develop a presentation of six-month
budget results. The presentation is due the following Monday. John realises he can complete the four-hour
project in one of two ways: he can stay at the office and do the work, or he can take the work home over the
weekend.
John evaluates the first option, staying at work for the needed four hours. He realises that staying will result in
a completed presentation by Monday (effort- performance link). He knows from past experience that a
completed project will result in recognition from the boss (performance reward link). John has a high regard
for this recognition, because it will eventually lead to a promotion. Working late on Friday will, however,
interfere with existing plans and my cause domestic problems. (The domestic problems affect the
attractiveness of the reward).
As John evaluates the second option, taking work home, he realises that the effort-performance link and the
performance reward link will be the same as option 1. But, by taking the work home, John can avoid the
negative consequences of interfering with social plans. (This makes the reward seem more attractive).John
chooses the second option.

In his decision making, John asked himself a series of questions. “Can I accomplish the task?” Yes, it will take
four hours, but I can do it. “What’s in it for me?” When I do the task it can bring both positive and negative
results (option1) or just positive results (option2). “Is it worth it” the positive is, but the negative isn’t.

Expectancy theory is based on four basic assumptions:

• It assumes that behaviour is determined by a combination of forces in the individual and in
the environment
• It assumes that people make decisions about their own behaviour in organisations
• It assumes that different people have different types of needs, desires and goals.
 • It assumes that people make choices from among alternative plans of behaviour based on
their perceptions of the extent to which a given behaviour will lead to desired outcomes.

.According to this theory, a manager must understand what employees want such as pay,
promotions or status to begin to motivate them.

Equity theory

Equity theory: is the perception of fairness involved in rewards given. A fair or equitable
situation is one in which people with similar inputs experience similar outcomes. Employees will
compare their rewards with the rewards received by others for their efforts. If employees perceive
that an inequity exists, they are likely to withhold some of their contributions, either consciously or
unconsciously, to bring a situation into better balance.

For example, if someone thinks he or she is not getting enough pay (output) for his or her work
(input), he or she will try to get that pay increased or reduce the amount of work he or she is doing.
On the other hand, when a worker thinks he or she is being paid too much for the work he or she is
doing, he or she tends to increase the amount of work. Not only do workers compare their own
inputs and outputs; they compare their input/output ratio with the input/output ratio of other
workers. If one work team believes they are doing more work than a similar team for the same pay,
their sense of fairness will be violated and they will tend to reduce the amount of work they are
doing. It is a normal human inclination to want things to be fair.

Result: Motivation to
Comparison:
Equity Perform
Self to Others

Result: Inequity Motivation to

rationalise,
Fight Inequality,
The Equity Theory in action or Quit.
Theory X and Theory Y
Douglas McGregor developed this theory based on two assumptions. He called the two sets
Theory X and Theory Y.
Theory X is a philosophy of management with a negative perception of suborinates’ potential for
work and attitudes toward work.
Theory Y on the other hand, is a philosophy of management with positive perception of
subordinates’ potential for and attitude toward work.
Assumptions:
Theory X Theory Y
People basically dislike work and avoid it Most people find work as natural as play and
whenever necessary rest and develop an attitude toward work based
on their experience with it
Because most people dislike work, they have to People do not need to be threatened with
be closely supervised and threatened with punishment; they will work voluntarily toward
punishment to reach objectives organisational objectives to which they are
committed
Most people prefer to be told what to do, have The average person working in the environment
little ambition, want to avoid responsibility, and with good human relations will accept and seek
want security above all else. responsibility.
Most people have little creativity. They are not Most people possess a high degree of
capable of solving problems. Rather, they must imagination, ingenuity and creativity with
be directed which to solve organisational problems
Most people have limited intellectual potential. Although people have intellectual potential,
Contributions above basic job performance modern industrial life utilises only part of it.
should not be expected

The Porter-Lawler Theory of Motivation:

Porter and Lawler suggest that there may indeed be a relationship between satisfaction and
performance but that it goes in the opposite direction- that is; high performance may lead to high
satisfaction.

.
INTRINSIC
REWARD
(OUTCOMES
PERFORMANCE PERCEIVED
SATISFACTION
EQUITY

EXTRINSIC
REWARDS
(OUTCOMES)

The model above summarises, Porter and Lawler’s logic. Performance results in rewards for an
individual. Some of these are extrinsic rewards such as pay and promotions; others are intrinsic
such as self esteem and accomplishment. The individual evaluates the equity, or fairness, of the
rewards relative to the effort expended and the level of performance attained. If the rewards are
perceived to be equitable, the individual is satisfied.

Reinforcement Perspectives:
Reinforcement theory argues that behaviour that results in rewarding consequences is likely
to be repeated, whereas behaviour that results

Reinforcement involves four types of consequence.

• Positive reinforcement creates a pleasant consequence by using rewards to increase the

likelihood that behaviour will be repeated.
• Negative reinforcement occurs when a person engages in behaviour to avoid unpleasant
consequences or to escape from existing unpleasant consequences.
• Punishment is an attempt to discourage a target behaviour by the application of negative
outcomes whenever it is possible.
• Extinction is the absence of any reinforcement, either positive or negative, following the
occurrence of a target behaviour (used to weaken undesired behaviours by simply ignoring
or not reinforcing that behaviour. Employees have questions about their jobs. Can I do
what management is asking me to do? If I do the job, will I be rewarded? Will the reward I
receive be satisfactory to me?
Reinforcement is based primarily on the work of B.F. Skinner, a psychologist, who experimented
with the theories of operant conditioning. Skinner's work shows that many behaviours can be
controlled through the use of rewards. In fact, a person might be influenced to change his or her
behaviour by giving him or her rewards.

Employees who do an exceptionally good job on a particular project should be rewarded for that
performance. It will motivate them to try to do an exceptional job on their next project. Employees
must associate the reward with the behaviour. In other words, the employee must know for what
specifically he or she is being rewarded! The reward should come as quickly as possible after the
behaviour. The reward can be almost anything, but it must be something desired by the employee.
Some of the most powerful rewards are symbolic; things that cost very little but mean a lot to the
people who get them. Examples of symbolic rewards are things like plaques or certificates.

EFFECTS OF ORGANISATIONAL REWARDS.

Organisational rewards can affect attitudes, behaviours, and motivation. Thus is it important for
managers to clearly understand and appreciate their importance.

Effects of rewards on Attitudes: although employees’ attitudes such as satisfaction are not major
determinant of job performance, they are nonetheless important. They contribute ( or discourage)
absenteeism, affect turnover, and help establish the culture of the organisation.

Four major generalisations about employees’ attitudes and rewards:

• Employee satisfaction is influenced by how much is received and how much the individual
thinks he or she thinks should received.

• Employee satisfaction is affected by comparisons with what happens to others.

• Employees often misperceive the rewards of others. when employees believes that
someone else is making more money than that person really makes, the potential for
dissatisfaction increases.
• Overall job satisfaction is affected by how satisfied employees are with both the extrinsic
and the intrinsic rewards they derive from their jobs.

Effect of rewards on behaviours: an organisation’s primary purpose in giving rewards

is to influence employee behaviour. Extrinsic rewards affect employee satisfaction, which, in
turn, plays a major role in determining whether an employee will remain on the job or seek a new
job. Reward systems also influence patterns of attendance and absenteeism, and, if rewards are
based on actual performance, employees tend to work harder to earn those rewards.

Extrinsic and intrinsic rewards are related to job satisfaction. Extrinsic rewards are those that

the organisation provides based on employee performance and effort. Examples of extrinsic

rewards are pay rises, promotions, supervisor praise, job status symbols, and job security.

Intrinsic rewards are those that the employee experiences internally. For example, feelings of

competence, pride, and craftsmanship are intrinsic rewards of a job well done (Dailey 1988:43).

Topic: Motivation

Definition And Purpose

Motivation is the inner state that causes an individual to behave in a way that ensures the
accomplishment of some goal. In other words, motivation explains why people act as they do.
The better manager understands organization members’ behaviour, the more able that manager
will be to influence subordinates’ behaviour to make it more consistent with the accomplishment
of organizational objectives. In essence, since productivity is a result of the behaviour of
organization members, motivating organization members is the key to reaching organizational
goals.

The Role Of Individual Needs:

If managers have any success in motivating employees, they must understand the personal needs
of those employees. When managers offer rewards that are not relevant to employees’ personal
needs, the employees will not be motivated. Managers must be familiar with needs their employees
have and offer hem rewards that can satisfy these needs.

Motivating organization members

People are motivated to perform behaviour to satisfy their personal needs, therefore, from a
managerial point of view, motivation is the process of furnishing organization members with the
opportunity to satisfy their needs by performing productive behaviour within an organization. In
reality, managers do not motivate people. Rather, they create environments in which organization
members motivate themselves.
Strategies for motivating organization members.
Managers have various strategies at their disposal for motivating organization members. Each
strategy is aimed at satisfying subordinates’ needs through appropriate organizational behaviour.
These managerial motivation strategies are as follows:
• Managerial communication
• Theory X and Theory Y
• Job design
• Behaviour modification
• Monetary incentives
• Non-monetary incentives.

Managerial Communication: perhaps the most basic motivation strategy for managers is simply
to communicate well with organization members. Effective managerial- subordinate
communication can satisfy such basic human needs as recognition, a sense of belonging, and
security. Such a simple managerial action as attempting to become better acquainted with
subordinates can contribute substantially to the satisfaction of each of these three needs. Another
example is, a message praising a subordinate for a job well done can help satisfy the subordinates’
recognition and security needs.
As a general rule, managers should strive to communicate often with other organization members,
not only because communication is the primary means of conducting organization activities, but
also because it is a basic tool for satisfying the human needs of organization members.

THEORY X AND THEORY Y

Douglas McGregor identified two sets of assumptions:

Theory X involves negative assumptions about people that McGregor believes managers often use
as the basis for dealing with their subordinates (for example, the average person has an inherent
dislike for work and will avoid it whenever he/ she can)

Theory Y represents positive assumptions about people that McGregor believes managers should
strive to use (for example, people will exercise self-direction and self-control in meeting their
objectives)
McGregor implies that managers who use theory X are ‘bad’ and that those who use theory Y are
‘good’.

The basic rationale for using Theory Y rather than Theory X in most situations is that managerial
activities that reflect Theory Y assumptions generally are more successful in satisfying the human
needs of most organization members than are managerial activities that reflect Theory X
assumptions. Therefore, activities based on Theory Y assumptions are more apt to motivate
organization members than activities based on Theory X assumptions.

Homework: Find out about Theory Z

Job Design.
• A third strategy that managers can use to motivate employees involves designing jobs that
employees perform.

Job rotation: the first major step to overcome job boredom is job rotation. Job rotation is the
process of moving workers from one job to another rather than requiring them to perform only one
simple and specialized job over the long term. Although job rotation programs have been known to
increase organizational profitability, most of them are ineffective as motivation strategies because,
overtime, people become bored with all he jobs they are rotated into. Job rotation programs,
however, are often effective for achieving other organizational objective, such as training, because
they give individuals an overview of how the various units of the organization function.

Job Enlargement
Fredrick Herzberg has concluded from his research that the degree of satisfaction and
dissatisfaction organization members feel as a result of performing a job are two different
variables determined by two different sets of items. The items that influence the degree of job
satisfaction are called motivating factors, or motivators. Hygiene factors relate to the work
environment, and motivating factors to work itself.
Herzberg believes that when the hygiene factors of a particular job situation are undesirable,
workers will become dissatisfied. Making these factors more desirable for e.g. increasing
salary- will rarely motivate people to do a better job, but it will keep them from becoming
dissatisfied. In contrast, when the motivating factors of a particular job situation are high,
employees usually are motivated to do a better. In general, people tend to be more motivated
and productive as more motivators are built into a job situation. The process of incorporating
motivators into a job situation is called job enrichment.

Job Enrichment.
Job enrichment and productivity: Herzberg’s overall conclusions are that the most productive
workers are those involved in work situations that have both desirable hygiene and motivating
factors.
For example, the esteem needs can be satisfied by both types of factors. Esteem needs satisfied
by a hygiene factor is a private parking space- a status symbol and a working condition
evidencing the employee’s importance to the organization.
The esteem needs satisfied by a motivating factor is an award given for outstanding
performance- a public recognition of a job well done that displays the employee’s value to the
organization.

Behaviour modification:
A fourth strategy that managers can use to motivate organisation members is based on the
concept known as behaviour modification.
Although behaviour modification programs typically involve the administration of both
rewards and punishment, it is rewards that are generally emphasized because they are more
effective than punishments in influencing behaviour. According to the law of effect,, behaviour
that is rewarded tends to be repeated, while that which is punished tends to be eliminated.

Monetary incentives:
A number of firms make a wide range of money based compensation programs available to
their employees as a form of motivation. For example, lump-sum bonuses- one time cash
payments- and gain – sharing, a plan under which members of a team receive a bonus when
their team exceeds a goal.

Non –monetary incentives:

A firm can keep its employees committed and motivated by non-monetary means. For example
by promoting from within and emphasizing quality.
 CASE STUDY-JOB SATISFACTION IS A MORE POWERFUL MOTIVATOR

THAN MONEY AT MICROSOFT.

Microsoft Corporation is a world- renowned developer of computer software. This is the
company that has developed such popular software packages as Microsoft windows, a
computer operating system; Microsoft word, word processing package, excel etc.
Microsoft has paid its employees exceeding well over the years. For example, those with more
than six years’ seniority stand a very good chance of becoming independently wealthy. The
typical salaried employee received a grant of 1,500 shares of Microsoft stock in 1982, which,
with regular company stock additions, compounded and untouched, was valued at over $5
million in 1995. there are at present at least 10,000 rank and file employees in the company
who stand to gain over $3 billion altogether simply by exercising their options to buy almost
50 million shares of Microsoft stock.
Despite their incredibly high compensation, which makes many Microsoft employees
financially independent, these employees have remained startling creative and productive over
the years. Just what motivates them to continue to do superb job when they don’t need any
more money? According to Mike Murray, the vice president for human resources and
administration at Microsoft, the fact that these millionaire employees have remained highly
productive proves that providing personally satisfying and interesting jobs is a far more
effective motivator over the long run than simply handing out more and more money.

Empowerment and participation: represent important methods that managers must use to
enhance employee motivation.
• Empowerment is the process of enabling workers to set their own goals, make decisions,
and solve problems within their sphere of responsibility and authority.
• Participation is the process of giving employees a voice in making decisions about their
own work. Thus, empowerment is a somewhat broader concept that promotes participation
in a wide variety of areas, including but not limited to work itself, work context, and work
environment.
The role of participation and empowerment in motivation can be expressed in terms of both the
content perspectives and the expectancy theory. Employees who participate in decision making
may be more committed to executing decisions properly. Furthermore, the successful process of
making a decision, executing it, and then seeing the positive consequences can help satisfy one’s
need for achievement, provide recognition and responsibility, and enhance self esteem. Simply
being asked to participate in organisational decision making also may enhance an employee’s self-
esteem. In addition, participation should help clarify expectancies; that is, by participating in
decision making, employees may better understand the linkage between their performance and the
rewards they want most.

Job sharing: when two part-time employees share one full-time job. Job sharing may be desirable
for people who want to work only part time or when the job market is tight. For its part, the
organisation can accommodate the preferences of a broader range of employees and may benefit
from the talents or more people.

Telecommuting: allowing workers to spend part of their time working off-site, usually at home. By
using e-mail, the internet and other forms of information technology, many employees can
maintain close contact with their organisation and still get just as much work done at home as they
do at the office. The increased power and sophistication of modern communication technology is
making telecommuting easier and easier.
Effects of Organisational rewards.
• Effect of reward on attitudes: although employee attitudes such as satisfaction are not
major determinant of job performance, they are nonetheless important. They contribute to
or discourage absenteeism, affect turnover, and help establish the culture of the
organisation. Four major generalisation can be drawn about employees attitudes and
rewards.
1. employee satisfaction is influenced by how much is received and how much the individual
thinks should be received.
2. employee satisfaction is affected by comparisons with what happens to others
3. employees often misperceive the rewards of others. When an employee believes that
someone else is making more money than that person really makes, the potential for
dissatisfaction increases.
4. overall job satisfaction is affected by how satisfied employees are with both the extrinsic
and intrinsic rewards they desire from their jobs.

• Effect of reward on behaviour: an organisation’s primary purpose of giving rewards is to

influence employee behaviour. Extrinsic rewards affect the employee satisfaction, which,
in turn, plays a major role in determining whether an employee will remain on the job or
seek a new job. reward systems also influence patterns of attendance and absenteeism; and,
 if rewards are based on actual performance, employees tend to work harder to earn those
rewards.
Questions (Motivation):

1. Briefly describe the concept motivation and explain the motivation process. describe a
situation that illustrates the idea that performance is a function of ability and working
conditions , as well as motivation.
2. Explain the hierarchy of needs theory. Assume that you are a manager of a large fast food
outlet. How could this theory help you motivate the various individuals who work for you?
3. Outline the hygiene factors and motivators identified by Herzberg. Why might
managers find this theory appealing and useful?
4. Explain the four main types of reinforcement. For each one, identify a situation in which
you have seen that type used and assess the outcome.
5. What does Maslow’s hierarchy of needs tell us about the relationship between personal
needs and work place needs?
6. Describe Theory X and Theory Y. What does each of these theories tell us about
motivating workers?
7. Describe the relationship of hygiene factors, motivating factors, and job enrichment.
8. List three non-monetary incentives that you personally would find desirable as an
employee. Why would these incentives be desirable to you?
Decision-making.
9. Identify each step in the decision making process and describe briefly what should
happen in each step.
10. What are three (3) strategies a manager can use to create a more effective decision
making environment?
Organisational Change.
11. Describe three reasons that people resist change, and explain what managers can do to
overcome resistance.