The Nature of Motivation

Motivation
The psychological forces that determine the
direction of a persons behavior in an
organization, a persons level of effort, and
a persons level of persistence
Explains why people behave the way they
do in organizations

The Nature of Motivation

Direction - possible behaviors the
individual could engage in
Effort - how hard the individual will work
Persistence - whether the individual will
keep trying or give up

The Nature of Motivation

Intrinsically Motivated Behavior
Behavior that is performed for its own sake.
The source of the motivation that comes
from actually performing the behavior.
The sense of accomplishment and
achievement
derived from
doing the work
itself

The Nature of Motivation

Extrinsically Motivated Behavior
Behavior that is performed to acquire
material or social rewards or to avoid
punishment.
The source of the motivation is the
consequences of the behavior and not
the behavior itself.

Outcomes and Inputs

Outcome
Anything a person gets from a job or an
organization
Pay, job security, autonomy,
accomplishment

Input
Anything a person contributes to his or her
job or organization
Time, effort, skills, knowledge, work
behaviors

The Motivation Equation

Figure 13.1

Need Theories
Need
A requirement or
necessity for
survival and wellbeing.

Need Theories
People are
motivated to
obtain outcomes
at work that will
satisfy their needs

Maslows Hierarchy of Needs

Needs
Highest-level
needs

Lowest-level
needs

Table 13.1

Description

Examples

SelfSelfactualization
actualization

Realize
Realizeones
ones
full
fullpotential
potential

Use
Useabilities
abilities
to
tothe
thefullest
fullest

Esteem
Esteem

Feel
Feelgood
good
about
oneself
about oneself

Promotions
Promotions
and
andrecognition
recognition

Belongingness
Belongingness

Social
Social
interaction,
interaction,love
love

Interpersonal
Interpersonal
relations,
relations,parties
parties

Safety
Safety

Security,
Security,stability
stability

Job
Jobsecurity,
security,
health
insurance
health insurance

Physiological
Physiological

Food,
Food,water,
water,
shelter
shelter

Basic
Basicpay
paylevel
level
to
buy
items
to buy items

Lower-level needs must be satisfied

before higher-level needs are addressed.

Equity Theory

(Adams, 1963; Landy, 1989;

Beehr, 1996)

Equity Theory
Equity Theory
Focuses on peoples perceptions of the
fairness (or lack of fairness) of their work
outcomes in
proportion to
their work inputs.

Equity Theory (Adams, 1963)

People develop beliefs about what is a fair
reward for one job contribution - an exchange
People compare their exchanges with their
employer to exchanges with others-insiders
and outsiders called referents
If an employee believes his treatment is
inequitable, compared to others, he or she will
be motivated to do something about it -- that
is, seek justice.

Equity Theory
A relative outcome to input ratio
comparison to oneself or to another
person (referent) perceived as similar to
oneself.
Equity exists when a person perceives
that their outcome/input ratio to be equal
to the referents ratio.
If the referent receives more outcomes, they
should also give more inputs to achieve
equity.

Equity Theory
Social comparison takes place
Perceived discrepancies between ratios may
produce tension or dissonance
Amount of discrepancy corresponds to the
amount of tension the individual experiences
Amount of tension corresponds to the amount
of energy an individual expends to alleviate
the discrepancy

Equity Theory
Condition

Equity
Equity

Underpayment
Underpayment
Equity
Equity

Overpayment
Overpayment
Equity
Equity

Table 13.3

Person

Referent

Example

Outcomes
Outcomes == Outcomes
Outcomes
Inputs
Inputs
Inputs
Inputs

Worker
Workercontributes
contributes
more
inputs
more inputsbut
butalso
also
gets
more
outputs
gets more outputs
than
thanreferent
referent

Outcomes
Outcomes << Outcomes
Outcomes
Inputs
Inputs
Inputs
Inputs

Worker
Workercontributes
contributes
more
inputs
more inputsbut
butalso
also
gets
the
same
outputs
gets the same outputs
as
asreferent
referent

Outcomes
Outcomes >> Outcomes
Outcomes
Inputs
Inputs
Inputs
Inputs

Worker
Workercontributes
contributes
same
inputs
same inputsbut
butalso
also
gets
more
outputs
gets more outputs
than
thanreferent
referent

Equity Theory
Inequity exists when workers outcome/input
ratio is not equal to referent.
Underpayment inequity: ratio is less than the
referent.
Workers feel they are not getting the outcomes
they should for their inputs.
Overpayment inequity: ratio is higher than the
referent.
Workers feel they are getting more outcomes
than they should for their inputs.

Equity Theory
Restoring Equity: Inequity creates tension in
workers causing them to attempt to restore
equity.
In underpayment, workers may reduce input levels
to correct (rebalance) the ratio or seek a raise.
In overpayment, workers may change the referent
person and readjust their ratio perception.
If inequity persists, workers will often choose to
leave the organization.

Equity Theory - Exchange Scenarios

Case 1: Equity -- pay allocation is perceived
to be to be fair - motivation is sustained
Case 2: Inequity -- Underpayment.
Employee is motivated to seek justice. Work
motivation is disrupted.
Case 3: Inequity - Overpayment. Could be
problem. Inefficient. In other cultures
employees lose face.

Consequences of Inequity
The employee is motivated to have an equitable
exchange with the employer.
To reduce inequity, employee may
Reduce inputs (reduce effort)
Try to influence manager to increase
outcomes (complain, file grievance, etc.)
Try to influence co-workers inputs (criticize
others outcomes or inputs)
Withdraw emotionally - or physically (engage
in absenteeism, tardiness, or quit)

BALANCING THE SCALES

Workers can change their inputs
Workers can change their outcomes
Workers can try to change others
outcomes and inputs
Workers can change their perceptions
Workers can change their reference
person
Workers can change jobs

IMPLICATIONS OF EQUITY THEORY

Avoid underpayment
Avoid overpayment
Be sensitive to inequity perceptions
Monitor regularly for creeping
inequity
When sacrifices are needed distribute
equally from top to bottom

Equity Theory Applications

Develop tools to pay people in proportion to
their contributions
Let employees know who their pay referents
are in the pay system: identify pay
competitors and internal pay comparators.
Strive for consistent pay allocations
Monitor internal pay structure and position in
the labor market for consistency.