Chapter Outline

• Defining Motivation
• Needs Theories of Motivation
• Process Theories of Motivation
• Responses to the Reward System
• Creating a Motivating Workplace: Rewards and Job
Design
• Evaluating the Use of Rewards in the Workplace

4-1
 Theories of Motivation

1. What is motivation?
2. How do needs motivate people?
3. Are there other ways to motivate people?
4. Do equity and fairness matter?
5. How can rewards and job design motivate
employees?
6. What kinds of mistakes are made in reward
systems?

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 What Is Motivation?
• Motivation
– The intensity, direction, and persistence of effort a
person shows in reaching a goal:
• Intensity: How hard a person tries
• Direction: Where effort is channelled
• Persistence: How long effort is maintained

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 Theory X and Theory Y

• Theory X
– Assumes that employees dislike work, will attempt to
avoid it, and must be coerced, controlled, or threatened
with punishment if they are to perform.
• Theory Y
– Assumes that employees like work, are creative, seek
responsibility, and can exercise self-direction and self-
control.

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 Motivators

• Intrinsic Motivators
– A person’s internal desire to do something, due
to such things as interest, challenge, and
personal satisfaction.
• Extrinsic Motivators
– Motivation that comes from outside the person
and includes such things as pay, bonuses, and
other tangible rewards.

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 Needs Theories of Motivation
• Basic idea
– Individuals have needs that, when unsatisfied, will
result in motivation
• Maslow’s Hierarchy of Needs Theory
• ERG Theory
• McClelland’s Theory of Needs
• Motivation-Hygiene Theory

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 Maslow’s Hierarchy of Needs
• Physiological
– Includes hunger, thirst, shelter, sex, and other
bodily needs.
• Safety
– Includes security and protection from physical
and emotional harm.
• Social
– Includes affection, belongingness, acceptance,
and friendship.
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 Maslow’s Hierarchy of Needs

• Esteem
– Includes internal esteem factors such as self-
respect, autonomy, and achievement, and
external esteem factors such as status,
recognition, and attention.
• Self-actualization
– The drive to become what one is capable of
becoming; includes growth, achieving one’s
potential, and self-fulfillment.

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Exhibit 4-1

Self-
actualization

Esteem

Social

Safety

Physiological

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 Alderfer’s ERG Theory
• Existence
– Concerned with providing basic material existence
requirements.
• Relatedness
– Desire for maintaining important interpersonal
relationships.
• Growth
– Intrinsic desire for personal development.

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 McClelland’s Theory of Needs
• Need for achievement
– The drive to excel, to achieve in relation to a set of standards,
to strive to succeed.
• Need for power
– The need to make others behave in a way that they would not
have behaved otherwise.
• Need for affiliation
– The desire for friendly and close interpersonal relationships.

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 Herzberg’s Motivation-Hygiene
Theory
• Hygiene factors – the sources of dissatisfaction
– Extrinsic factors (context of work)
• Company policy and administration
• Unhappy relationship with employee’s supervisor
• Poor interpersonal relations with one’s peers
• Poor working conditions

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 Herzberg’s Motivation-Hygiene
Theory
• Motivators – the sources of satisfaction
– Intrinsic factors (content of work)
• Achievement
• Recognition
• Challenging, varied, or interesting work
• Responsibility
• Advancement

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Comparison of Satisfiers and Dissatisfiers

Source: Reprinted by permission

of Harvard Business Review. An
exhibit from Frederick
Herzberg, “One More Time:
How Do You Motivate
Employees?” Harvard Business
Review 81, no. 1 (January 2003),
p. 90. Copyright © 1987 by the
President and Fellows of
Harvard College; all rights
reserved.

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Exhibit 4-2 Contrasting Views of
Satisfaction and Dissatisfaction

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Exhibit 4-3 Relationship of Various
Needs 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

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 Summary: Hierarchy of Needs
– Maslow: Argues that lower-order needs must be satisfied before one
progresses to higher-order needs.
– Herzberg: Hygiene factors must be met if person is not to be
dissatisfied. They will not lead to satisfaction, however. Motivators
lead to satisfaction.
– Alderfer: More than one need can be important at the same time. If
a higher-order need is not being met, the desire to satisfy a lower-
level need increases.
– McClelland: People vary in the types of needs they have. Their
motivation and how well they perform in a work situation are
related to whether they have a need for achievement, affiliation, or
power.
 Theories to Apply
• Herzberg Motivation-Hygiene (Two-Factor)
Theory
• Expectancy
• Goal-Setting Theory
• Equity
• Cognitive Evaluation Theory