Theories of Motivation

Presented by:Roel G. Matulac

1. Three Need Theory

2. Goal-Setting Theory

3. Reinforcement Theory

4. Equity Theory5. Expectancy Theory

Three Need Theory by David McCleland

An individual specific needs are acquired over time and are shaped by one’s life experiences.Need For Achievement: Desire to excel and accomplish something difficult.Need For Affiliation: Desire to spend

time in social relationships and activities.

Need For Power: Desire to influence, coach, teach, or encourage others to achieve.

Goal Setting Theory by Edwin Locke

It states that goal setting is essentially linked to task performance. It states that specific and challenging goals along with appropriate feedback contribute to higher and better task performance.

In simple words, goals indicate and give direction to an employee about what needs to be done and how much efforts are required to be put in.

Goal setting theory has certain eventualities such as:1. Self-efficiency- Self-efficiency is the

individual’s self-confidence and faith that he has potential of performing the task. Higher the level of self-efficiency, greater will be the efforts put in by the individual when they face challenging tasks. While, lower the level of self-efficiency, less will be the efforts put in by the individual or he might even quit while meeting challenges.

2. Goal commitment- Goal setting theory assumes that the individual is committed to the goal and will not leave the goal. The goal commitment is dependent on the following factors:

Goals are made open, known and broadcasted.

Goals should be set-self by individual rather than designated.

Individual’s set goals should be consistent with the organizational goals and vision.

Advantages of Goal Setting Theory1. Goal setting theory is a technique

used to raise incentives for employees to complete work quickly and effectively.

2. Goal setting leads to better performance by increasing motivation and efforts, but also through increasing and improving the feedback quality.

Limitations of Goal Setting Theory1. At times, the organizational goals are

in conflict with the managerial goals. Goal conflict has a detrimental effect on the performance if it motivates incompatible action drift.

2. Very difficult and complex goals stimulate riskier behaviour.

3. If the employee lacks skills and competencies to perform actions essential for goal, then the goal-setting can fail and lead to undermining of performance.

4. There is no evidence to prove that goal-setting improves job satisfaction.

Reinforcement Theory by BF Skinner

It states that individual’s behaviour is a function of its consequences. It is based on “law of effect”, i.e, individual’s behaviour with positive consequences tends to be repeated, but individual’s behaviour with negative consequences tends not to be repeated.

Reinforcement theory of motivation overlooks the internal state of individual, i.e., the inner feelings and drives of individuals are ignored by Skinner. This theory focuses totally on what happens to an individual when he takes some action. Thus, according to Skinner, the external environment of the organization must be designed effectively and positively so as to motivate the employee. This theory is a strong tool for analyzing controlling mechanism for individual’s behaviour. However, it does not focus on the causes of individual’s behaviour.

The managers use the following methods for controlling the behaviour of the employees: Positive Reinforcement- This implies

giving a positive response when an individual shows positive and required behaviour. For example - Immediately praising an employee for coming early for job. This will increase probability of outstanding behaviour occurring again. Reward is a positive reinforce, but not necessarily. If and only if the employees’ behaviour improves, reward can said to be a positive reinforcer. It must be noted that more spontaneous is the giving of reward, the greater reinforcement value it has.

Negative Reinforcement- This implies rewarding an employee by removing negative / undesirable consequences. Both positive and negative reinforcement can be used for increasing desirable / required behaviour.

Punishment- It implies removing positive consequences so as to lower the probability of repeating undesirable behaviour in future. In other words, punishment means applying undesirable consequence for showing undesirable behaviour. For instance - Suspending an employee for breaking the organizational rules. Punishment can be equalized by positive reinforcement from alternative source.

Extinction- It implies absence of reinforcements. In other words, extinction implies lowering the probability of undesired behaviour by removing reward for that kind of behaviour. For instance - if an employee no longer receives praise and admiration for his good work, he may feel that his behaviour is generating no fruitful consequence. Extinction may unintentionally lower desirable behaviour.

Implications of Reinforcement Theory

Reinforcement theory explains in detail how an individual learns behaviour. Managers who are making attempt to motivate the employees must ensure that they do not reward all employees simultaneously. They must tell the employees what they are not doing correct. They must tell the employees how they can achieve positive reinforcement.

Equity Theory by John Stacey Adam

Adams' Equity Theory calls for a fair balance to be struck between an employee's inputs (hard work, skill level, tolerance, enthusiasm, and so on) and an employee's outputs (salary, benefits, intangibles such as recognition,and so on).

According to the theory, finding this fair balance serves to ensure a strong and productive relationship is achieved with the employee, with the overall result being contented, motivated employees.

It acknowledges that subtle and variable factors affect an employee's assessment and perception of their relationship with their work and their employer.

The theory is built-on the belief that employees become de-motivated, both in relation to their job and their employer, if they feel as though their inputs are greater than the outputs. Employees can be expected to respond to this is different ways, including de-motivation (generally to the extent the employee perceives the disparity between the inputs and the outputs exist), reduced effort, becoming disgruntled, or, in more extreme cases, perhaps even disruptive.

How to Apply the Adams' Equity Theory It is important to also consider the

Adams' Equity Theory factors when striving to improve an employee's job satisfaction, motivation level, etc., and what can be done to promote higher levels of each.

To do this, consider the balance or imbalance that currently exists between your employee's inputs and outputs, as follows:

Inputs typically include:1. Effort.2. Loyalty.3. Hard work.4. Commitment.5. Skill.6. Ability.7. Adaptability.8. Flexibility.9. Tolerance.10. Determination.11. Enthusiasm.12. Trust in superiors.13. Support of colleagues.14. Personal sacrifice

Outputs typically include:Financial rewards (such as salary, benefits, perks).Intangibles that typically include: 

1. Recognition.2. Reputation.3. Responsibility.4. Sense of achievement.5. Praise.6. Stimulus.7. Sense of advancement/growth.8. Job security.

While obviously many of these points can't be quantified and perfectly compared, the theory argues that managers should seek to find a fair balance between the inputs that an employee gives, and the outputs received.

And according to the theory, employees should be content where they perceive these to be in balance.

Expectancy Theory by Viktor Vroom

Vroom's expectancy theory assumes that behavior results from conscious choices among alternatives whose purpose it is to maximize pleasure and to minimize pain. Vroom realized that an employee's performance is based on individual factors such as personality, skills, knowledge, experience and abilities. He stated that effort, performance and motivation are linked in a person's motivation. He uses the variables Expectancy, Instrumentality and Valence to account for this.

Expectancy is the belief that increased effort will lead to increased performance i.e. if I work harder then this will be better. This is affected by such things as:1. Having the right resources available

(e.g. raw materials, time)2. Having the right skills to do the job3. Having the necessary support to get

the job done (e.g. supervisor support, or correct information on the job)

Instrumentality is the belief that if you perform well that a valued outcome will be received. The degree to which a first level outcome will lead to the second level outcome. i.e. if I do a good job,there is something in it for me. This is affected by such things as:1. Clear understanding of the

relationship between performance and outcomes – e.g. the rules of the reward 'game'

2. Trust in the people who will take the decisions on who gets what outcome

3. Transparency of the process that decides who gets what outcome

Valence is the importance that the individual places upon the expected outcome. For the valence to be positive, the person must prefer attaining the outcome to not attaining it. For example, if someone is mainly motivated by money, he or she might not value offers of additional time off.

Crucially, Vroom's expectancy theory works on perceptions – so even if an employer thinks they have provided everything appropriate for motivation, and even if this works with most people in that organisation, it doesn't mean that someone won't perceive that it doesn't work for them.

At first glance expectancy theory would seem most applicable to a traditional-attitude work situation where how motivated the employee is depends on whether they want the reward on offer for doing a good job and whether they believe more effort will lead to that reward.

However, it could equally apply to any situation where someone does something because they expect a certain outcome. For example, I recycle paper because I think it's important to conserve resources and take a stand on environmental issues (valence); I think that the more effort I put into recycling the more paper I will recycle (expectancy); and I think that the more paper I recycle then less resources will be used (instrumentality)

Thus, Vroom's expectancy theory of motivation is not about self-interest in rewards but about the associations people make towards expected outcomes and the contribution they feel they can make towards those outcomes.

Expectancy theory predicts that employees in an organization will be motivated when they believe that:1. Putting in more effort will yield

better job performance2. Better job performance will lead to

organizational rewards, such as an increase in salary or benefits

3. These predicted organizational rewards are valued by the employee in question

In order to enhance the performance-outcome tie, managers should use systems that tie rewards very closely to performance. Managers also need to ensure that the rewards provided are deserved and wanted by the recipients. In order to improve the effort-performance tie, managers should engage in training to improve their capabilities and improve their belief that added effort will in fact lead to better performance.

End of Report