Fundamental Management Course

Motivation

Fundamental Management Course

Contents

Table of contents ........................................................................................... 2

Introduction................................................................................................... 3
Needs, Motivation and Job Satisfaction ........................................................ 4
Systematization of the main theories of motivation ...................................... 7
Content and Process Motivation Theories...................................................... 8
Maslows Need Hierarchy .............................................................................. 8
David McClellands Theory of Needs ........................................................... 10
Clayton Alderfer - ERG Theory...................................................................... 11
Herzbergs Two Factor Theory...................................................................... 12
Vrooms Expectancy Theory ......................................................................... 13
Adams Equity Theory .................................................................................. 15
Lockes Goal Theory ..................................................................................... 15
Conclusion ................................................................................................... 16
References ................................................................................................... 17

Introduction
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Motivation was taken from the Latin word 'move' for the first time.
Motivation is the why of behavior. In other words, all human behaviors are
stimulated by a motivation or need. Human motivation, whether conscious or
unconscious, stems from his needs. Therefore, in defining motivation it can be
stated that motivation or need is an inner state and shortage or deprivation
which makes the individual to carry out something. In another definition,
motivation is the desire to make considerable effort in order to meet
organization objectives so that this effort is directed toward satisfaction of some
personal needs (Robbins, 1998).
One of the first duties of manager is to provide the grounds for motivation
of staffs in high levels of performance. That is to say, the manager must ensure
that employees are busy, attend the organization regularly, and possess a
positive share in the mission of organization. Job performance is associated with
ability, environment and motivation.
Motivation is a chain process which is initiated with the feeling of need,
shortage or deprivation. It is followed with desire and leads to tension and
action toward an objective whose outcome is the behavior of movement toward
objective. Continuity of this process may lead to the satisfaction of need.
Therefore, motivation encourages and persuades people to do something or to
show a behavior. However, motivation reflects a general desire. The position of
punishment and encouragement as strong motivations is clear in all studies. In
this regard, money is considered as a tool for giving rewards, but it is not the
only motivational factor.
One of the important responsibilities as the manager of an organization is
to find out the potential talents of staffs and to provide the context for their
growth and flourish which leads to the promotion of productivity. It is now
impossible to take steps toward sustainable development without taking
productivity level and effective factors on its increase into account. As humanbeing plays a key role in the development as its realization factor, eliminating
his mental and psychological needs is of vital importance. Therefore, one of
important duties of manager is to motivate his forces to achieve organization
objectives. Generally, motivation is categorized into physical, social and mental
motivation. Physical motivation is referred to the needs of individuals in work
environment like well-fare facilities (adequate work area, climate, light, etc.).
Those human needs which are associated with behavior of others and manager

Fundamental Management Course

in particular and satisfy social needs are referred to as social motivation. The
needs that lead to mental satisfaction are mental motivation.
The term motivation can be used in different ways, but in essence it refers
to any sort of general drive or inclination to do something. Cognition, which
has dominated psychological theory in recent decades, is ultimately just a tool
in service of motivation. That is, the reason evolution selected in favor of
increased powers of thought is that those increased powers enable people to get
what they want and need. If people did not have wants and needs, there would
be little or no reason to think. Human agency or the selfs executive function,
which includes active initiative, choice and self-regulation, is thus probably an
adaptation to facilitate motivated behavior.

Needs, Motivation and Job Satisfaction

The relationship between job satisfaction and motivation at work has
been one of the widely researched areas in the field of management in relation
to different professions. According to Khan (1997), in the current business
environment, organizations in all industries are experiencing rapid change,
which is accelerating at an enormous speed. Finck (1998) also stated that
companies must recognize that the human factor is becoming much more
important for organizational survival, and that business excellence will only be
achieved when employees are excited and motivated by their work. In addition,
difficult circumstances, such as violence, tragedy, fear, and job insecurity create
severe stress in employees and result in reduced workplace performance (Klein,
2002).
According to Watson, business has come to realize that a motivated and
satisfied workforce can deliver powerfully to the bottom line. Since employee
performance is a joint function of ability and motivation, one of managements
primary tasks, therefore, is to motivate employees to perform to the best of their
ability.
In economic theory and practice, salary is one of motivation tools that
significantly influence people's workloads. Salary is a factor that plays a
particularly important motivation of human resources. The Universal
Declaration of Human Rights adopted and proclaimed by General Assembly on
10 December 1948 stated that: "Everyone has the right to work, to free choice
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of employment, to just and favorable conditions of work and to protection

against unemployment".
Motivation and job satisfaction of human resources consider others
should be one of the main priorities of the management organization to have a
sustainable development of its medium and long term. Along the last years there
is a growing interest for effective wage policy within the organizations. As
some of the scholars pointed out that motivation is not only a consequence but
also a prerequisite for an effective social and economic activities.
One interesting idea is that motivation like a part of the organizational
wages policies has to be judiciously prepared and perfectly damped with the
general policy of the organization in order to stimulate economic efficiency
rather than to affect it.
Job satisfaction is achieved according to a variety of sizes. Over time,
they conducted a series of research that aimed to determine the dimensions or
factors that generate state of satisfaction / dissatisfaction and weight to establish
that they have these dimensions, types and levels of satisfaction/dissatisfaction.
Making ideals, obtaining cash rewards in exchange for work performed, the
development of personality traits, the employee contribution to the production
of goods and services, development of human relations and shaping welfare
state benefits, depend primarily on the relationship between expectations,
abilities and goals of the person, on the one hand and existing conditions at
work on the other hand.
A fair wage and incentive system should be able to meet the following
criteria for assessing the rationality and efficiency:
a) remuneration proportional to the relative importance of the work;
b) consistency levels of pay between jobs with tasks compatible;
c) pay adjustment in accordance with changes in the labor market;
d) recognition of professional capacity and efficiency of the individual;
e) understanding by senior management oversight and payroll system, the
principles of;
f) the existence of rational methods for solving the problems of pay.

Job Satisfaction
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Job satisfaction refers to the pleasurable emotional state resulting from

the appraisal of one's job as achieving or facilitating the achievement of one's
job values (Locke, 1969). Job satisfaction is a multidimensional construct the
conceptualization and measurement of which has long been of interest in the
industrial and organizational psychology literatures where according to Bowling
and Hammond, it has been the most widely studied topic. This is reflected in the
various operationalisations proposed involving for example, perceptions about
work itself, relationships with co-workers and supervisors, job control, job
security and feelings such as self-accomplishment and self-advancement.
Similarly, Rutherfords approach include aspects such as satisfaction with
supervision, satisfaction with overall job, satisfaction with policy and support,
promotion and advancement, satisfaction with pay, co-workers and customers.
While it is evident from the above that various factors can influence job
satisfaction, a misfit between what one expected and what one received, may
cause a decrease in job satisfaction (Robinson and Rousseau, 1994). In fact, Job
satisfaction has been linked to individual outcomes or work related behaviors
such as job performance, absenteeism and turnover.
Regarding the link between motivation and job satisfaction all content
theories link the Herzberg's two- factor theory, that distinguishes between
factors preventing dissatisfaction and affecting motivation: the hygiene and the
motivation factors. Hygiene factors are needed to ensure an employee is not
dissatisfied. Motivation factors are needed to motivate one to higher
performance. More specifically, Herzbergs motivation theory highlights two
kinds of factors in working environments, hygiene factors and motivators. The
hygiene factors presence (e.g. working conditions, job security, pay, company
policies and administration, level and quality of supervision, interpersonal
relationships) cannot motivate employees but prevent dissatisfaction.
Unlike hygiene factors, motivators are intrinsic to a job and create
employee satisfaction (e.g. the work itself, responsibility, sense of achievement,
recognition by others, advancement, personal growth). This is in line with
Hackman and Oldhams (1980) view arguing that job characteristics can
motivate employees and the motivating potential of a job is expected to affect
the resulting job satisfaction, too.

Theories of motivation
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Systematization of the main theories of motivation

Motivation theory development history noted various motivation models
assumed by managers. The most important ones are:
Traditional model
Co-operation relations model
Human resources model
Traditional model is associated with F. Taylor and academic school of
organization. Within this model the maximum number of products
manufactured was the most important issue. Work pay was the main motivator
to make them work faster and better.
Co-operation model. Elton Mayo claimed that, apart from enumeration
it is also relations between employees at work whereas boredom and
repetitiveness of many tasks lowered motivation. A conclusion followed that
managers may motivate employees by recognizing their social needs and
ensuring their usefulness and self-importance.
Human resources model subsequent researchers such as McGregor,
Maslow, Arygis and Likert showed that employee motivation consists of many
elements, not only financial but also needs to have achievements and perform
important work. Employees may therefore derive satisfaction from work, may
be entrusted with a higher rank responsibility for decisions and performing
tasks. Managers shall not only use financial stimuli but also share responsibility
for reaching goals.
At the moment an approach to motivation rules has been changing, F.
Landy and W. Backer (Stoner, 2001) divided modern views on motivation
theory and practice, represented by various authors, into five categories:
Needs category (A.H. Maslow, C.P. Alderfer, J.W.Atkinson,
D.McClelland),
Justice theory (G. C. Homans, Fastinger, V. Pareto, J. S. Adams),
Expectation theory (D. Nadler, E. Lawler, L. Porter),
Reinforcement theory (B. F. Skinner),
Goal setting theory (E. Locke, Ch. Early, Ch. Shally).
Depending upon their views managers and their employees in different way
finalize the following statement: One is motivated if. All those views share
basic level of importance attached to the awareness of each person as to what is
important to him and working conditions.
R. Kanfer in turn divides motivation theories into three groups:
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Cognitive decision theory, they tie motivation problem with individual

decision process (V. Vroom, E. Lawler),
Self regulatory theory, based upon motivation power following goal
orientation (A. Bandura, E. Locke, R. Kanfer, D. Mc Clelland, G. S. Odiorne),
Stress reduction theory, emphasizes the role of personality and particular
motives or needs that constitute basis for human activity (A. Maslow, M.Weber,
M. Richards, P. Grennlaw, F. Herzberg).
Employees motivation is a decisive factor for the success and future of
organization as a whole. All theories, approaches and vies on motivation
mentioned analyse causative factors, deal with motivation initiatives, rules of
motivation, getting to know human needs at work and outside work, getting to
know factors that stir work satisfaction and/or dissatisfaction etc.
Subject literature lacks a holistic approach to include all potential motivating
elements that influence individual well being of employees and the increase of
organizations effectiveness.

Content and Process Motivation Theories

Content theories attempt to explain those specific things that actually
motivate the individual at work. These theories are concerned with identifying
peoples needs and their relative strengths, and the goals they pursue in order to
satisfy these needs. Content theories place emphasis on the nature of needs and
what motivates.
There is the assumption that everyone responds in much the same way to
motivating pressures and that there is, therefore, one best way to motivate
everybody. These theories provide a prescriptive list which managers can follow
in an attempt to increase productivity.
Maslows Need Hierarchy
Abraham Harold Maslow proposed a theory that outlined five
hierarchical needs which could also be applied to an organization and its
employees performance. According to Maslows theory, one does not feel the
second need until the demands of the first have been satisfied or the third until
the second has been satisfied, and so on.
The different levels of needs on Maslows hierarchy are discussed as
follows:
1. Physiological needs
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These are biological needs which consist of the need for oxygen, food, water,
and a relatively constant body temperature. They are the strongest needs
because if a person were deprived of all needs, it is these physiological ones that
would come first in the person's search for satisfaction.
2. Safety needs
When all physiological needs are met and are no longer controlling thoughts
and behaviors, the needs for security can become active. While adults have little
awareness of their security needs except in times of emergency or periods of
disorganization in the social structure (such as widespread rioting), children
often display the signs of insecurity and the need to be safe.
3. Needs for love, affection and belongingness
When the needs for safety and for physiological well-being are satisfied, the
next class of needs for love, affection and belongingness can emerge. Maslow
states that people seek to overcome feelings of loneliness and alienation. This
involves both giving and receiving love, affection and the sense of belonging.
4. Needs for esteem
When the first three classes of needs are satisfied, the needs for esteem can
become dominant. These involve needs for both self-esteem and for the esteem
a person gets from others. Humans have a need for a stable, firmly based, high
level of self-respect, and respect from others. When these needs are satisfied,
the person feels self-confident and valuable as a person in the world. When
these needs are frustrated, the person feels inferior, weak, helpless and
worthless.
5. Needs for self-actualization
When all of the foregoing needs are satisfied, then and only then are the needs
for self-actualization activated. Maslow describes self-actualization as a
person's need to be and do that which the person was "born to do." "A musician
must make music, an artist must paint, and a poet must write." These needs
make themselves felt in signs of restlessness. The person feels on edge, tense,
lacking something, in short, restless. If a person is hungry, unsafe, not loved or
accepted, or lacking self-esteem, it is very easy to know what the person
is restless about. However, it is not always clear what a person wants when
there is a need for self-actualization. The aforementioned theory may be applied
to the roles of organizational cultural and human resource management in
improving employees performance despite some criticism or limitations of the
theory.

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David McClellands Theory of Needs

David McClelland was an American psychologist who developed a
theory in the 1980s that ascribes human motivation into a set of basic needs
often referred to as "the three social motives". According to McClelland
everyone is more strongly motivated by some needs and less strongly by other
needs. Everyone has all three of these motives but simply with a different
relative degree. The result of the needs is a unique mix that gives one its
personality. What McClelland found out during his research was that 80 percent
of the daily mental activity could be related to three social motives. They are
with other words those motives that are most common in the everyday life.
Though the needs for security and nurturing are legitimate and widely studied
motives they do occupy so little of most western civilized people's regular
concerns that McClelland meant that it is possible to ignore them to a wide
extend.
His three social motives are:
Need for achievement:
- The drive to transcend
- The drive to accomplish in relation to a set of standards
- The drive to endeavor to succeed
Need for affiliation
- The need for friendly and close interpersonal relationships
Need for power
- The need to make others behave in a way they would not have behaved
otherwise
The most essential part of McClellands theories is that different people
have different motives and therefor, different personalities. The result of this is
that one is more or less suited to different roles. Everyone has strengths and
weaknesses in different situations and the tendency is that one guides itself
toward situations in which he or she can do its best.

Clayton Alderfer - ERG Theory

An attempt to simplify Maslow's needs theory was put forward by psychologist
Clayton Alderfer with his ERG theory. Both theories see needs as the
motivating force behind behavior. People are motivated to do things by different
needs, of which Alderfer identified three:
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Existence Needs - those which give us physical well-being

Relatedness Needs - the need for social relationships
Growth Needs - the need for personal growth and development.
Besides establishing only three, instead of Maslow's original five needs,
the second difference between Maslow and Alderfer is that Alderfer considered
that people could move around the hierarchy meeting their needs. People do not
start at the bottom and work their way up. People might be meeting their
relatedness or social needs whilst tired or hungry. They might meet their need
for personal growth by studying alone, even though they feel lonely.
Alderfer also argued that people could go backwards in meeting needs. If
people are frustrated in meeting their higher order needs - no recognition of
their work, feeling unvalued, they may start meeting lower order needs even
though these are already satisfied. People may eat too much, drink too much,
concentrate on making money, etc. to compensate themselves for not achieving
the higher order needs.
In a learning environment, recognition of learner achievement and
positive feedback helps to satisfy Maslow's need for recognition and need for
self-actualization, and Alderfers need for personal growth.
Learning itself helps to satisfy Maslow's need for self-actualization and
Alderfer's need for personal growth. Social contact, maybe experienced during
the learning process, helps to satisfy Maslow's social need and Alderfer's
relationship need.
Thus, in order to optimize learning according to the above theories and
principles, the learning environment and experience should be such that both the
learners physical and psychological needs are met.

Herzbergs Two Factor Theory

Herzberg published the two-factor theory of work motivation in 1959.
The theory was highly controversial at the time it was published, claims to be
the most replicated study in this area, and provided the foundation for numerous
other theories and frameworks in human resource development. The theory
states that job satisfaction and dissatisfaction are affected by two different sets
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of factors. Therefore, satisfaction and dissatisfaction cannot be measured on the

same continuum.
Herzberg developed an initial hypothesis that satisfaction and
dissatisfaction could not be reliably measured on the same continuum. Herzberg
next conducted an empirical study to test the hypothesis. After two pilot
programs, the design and hypothesis were further developed and expanded. The
main hypothesis stated that factors leading to positive attitudes and those
leading to negative attitudes will differ. The second hypothesis stated that
factors and effects involved in long-range sequences of events would differ
from those in short-range sequences.
He suggested that there are two kinds of factors affect motivation, and
they do it in different ways:
1) Hygiene factors: A series of hygiene factors create dissatisfaction if
individuals perceive them as inadequate or inequitable, yet individuals will not
be significantly motivated if these factors are viewed as adequate or good.
Hygiene factors are extrinsic and include factors such as salary or remuneration,
job security and working conditions.
2) Motivators: They are intrinsic factors such as sense of achievement,
recognition, responsibility, and personal growth.
The hygiene factors determine dissatisfaction, and motivators determine
satisfaction. Herzberg theory conforms with satisfaction theories which assert
that a satisfied employee tends to work in the same organization but this
satisfaction does not always result in better performance. In other
words, satisfaction does not correlate with productivity.

Process theories (expectancy and goal) change the emphasis from needs to
the goals and processes by which workers are motivated. They attempt to
explain and describe how people start, sustain and direct behavior aimed at the
satisfaction of needs or reduction of inner tension. They place emphasis on the
actual process of motivation.

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Process theories also attempt to identify major variables that explain

behavior, but the focus is on the dynamics of how the variables are interrelated
in explaining the direction, degree and persistence of effort. The major variables
in process models are incentive, drive, reinforcement and expectancy.
Vrooms Expectancy Theory
Vrooms expectancy theory differs from the content theories of Maslow,
Alderfer, Herzberg, and McClelland in that Vrooms expectancy theory does
not provide specific suggestions on what motivates organization members.
Instead, Vrooms theory provides a process of cognitive variables that reflects
individual differences in work motivation.
From a management standpoint, the expectancy theory has some important
implications for motivating employees. It identifies several important things that
can be done to motivate employees by altering the persons effort-toperformance expectancy, performance-to-reward expectancy, and reward
valences.
Expectancy theory is based on four assumptions (Vroom, 1964). One
assumption is that people join organizations with expectations about their needs,
motivations, and past experiences. These influence how individuals react to the
organization. A second assumption is that an individuals behavior is a result of
conscious choice. That is, people are free to choose those behaviors suggested
by their own expectancy calculations. A third assumption is that people want
different things from the organization (e.g. good salary, job security,
advancement, and challenge) A fourth assumption is that people will choose
among alternatives so as to optimize outcomes for them personally.
The expectancy theory based on these assumptions has three key elements:
expectancy, instrumentality, and valence. A person is motivated to the degree
that he or she believes that effort will lead to acceptable performance
(expectancy), performance will be rewarded (instrumentality), and the value of
the rewards is highly positive (valence).
Expectancy is a persons estimate of the probability that job-related effort
will result in a given level of performance. Expectancy is based on probabilities
and ranges from 0 to 1. If an employee sees no chance that effort will lead to the
desired performance level, the expectancy is 0. On the other hand, if the
employee is completely certain that the task will be completed, the expectancy
has a value of 1. Generally, employee estimates of expectancy lie somewhere
between these two extremes.
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Instrumentality is an individuals estimate of the probability that a given

level of achieved task performance will lead to various work outcomes. As with
expectancy, instrumentality ranges from 0 to 1. For example, if an employee
sees that a good performance rating will always result in a salary increase, the
instrumentality has a value of 1. If there is no perceived relationship between a
good performance rating and a salary increase, then the instrumentality is 0.
Valence is the strength of an employees preference for a particular
reward. Thus, salary increases, promotion, peer acceptance, recognition by
supervisors, or any other reward might have more or less value to individual
employees. Unlike expectancy and instrumentality, valences can be either
positive or negative. If an employee has a strong preference for attaining a
reward, valence is positive. At the other extreme, valence is negative. And if an
employee is indifferent to a reward, valence is 0. The total range is from -1 to
+1. Theoretically, a reward has a valence because it is related to an employees
needs. Valence, then, provides a link to the need theories of motivation
(Alderfer, Herzberg, Maslow, and McClelland).
Vroom suggests that motivation, expectancy, instrumentality, and valence
are related to one another by the equation:

Motivation = Expectancy x Instrumentality x Valence

The multiplier effect in the equation is significant. It means that higher
levels of motivation will result when expectancy, instrumentality, and valence
are all high than when they are all low. The multiplier assumption of the theory
also implies that if any one of the three factors is zero, the overall level of
motivation is zero. Therefore, for example, even if an employee believes that
his/her effort will result in performance, which will result in reward, motivation
will be zero if the valence of the reward he/she expects to receive is zero.

Adams Equity Theory

Developed by John Stacey Adams in 1963, Equity Theory suggests that if
the individual perceives that the rewards received are equitable, that is, fair or
just in comparison with those received by others in similar positions in or
outside the organization, then the individual feels satisfied. Adams asserted that
employees seek to maintain equity between the inputs that they bring to a job
and the outcomes that they receive from it against the perceived inputs and
outcomes of others.
When people sense inequities in their work they will be aroused to remove
the discomfort and restore a state of felt equity to the situation by:
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changing work inputs

changing rewards received
leaving the situation
changing the comparison points
psychologically distorting the comparisons
People who feel overpaid (feel positive inequity) have been found to
increase the quantity or quality of their work, whilst those who are underpaid
(feel negative inequity) do the opposite. Feelings of inequity are determined
solely by the individuals interpretation of the situation - the fact that a manager
feels that the annual pay review is fair is immaterial.
Lockes Goal Theory
Edwin Locke proposed Goal Theory in 1968, which proposes that
motivation and performance will be high if individuals are set specific goals
which are challenging, but accepted, and where feedback is given on
performance.
The theory emphasizes the important relationship between goals and
performance. Research supports predictions that the most effective performance
seems to result when goals are specific and challenging, when they are used to
evaluate performance and linked to feedback on results, and create commitment
and acceptance. Deadlines improve the effectiveness of goals. A learning goal
orientation leads to higher performance than a performance goal orientation, and
group goal-setting is as important as individual goal-setting.
The two most important findings of this theory are:
1. Setting specific goals generates higher levels of performance than setting
general goals (e.g. I want to earn a lot of money).
2. The goals that are hard to achieve are linearly and positively connected to
performance. The harder the goal, the more a person will work to reach it.

Conclusion

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In the process of management motivation is considered only as a

management function but management theoreticians and practitioners realize
that without motivating employees, no organization can survive not only while
facing labour market competition but even as a player in the sector. Motivation
understood in a wider perspective is not one word but a continuous process that
changes with time, depends upon employees personality and conditions and,
first of all fast changes on the market that a company must constantly adjust to.
The main challenge of an organization is to establish equivalence
between the general and explicit needs of organization and personal values of its
employees. Therefore, motivation is the outcome of participation and interaction
between the individual and his situation.
Each of the presented theories has potential advantages for management
which can be employed in combination with each other. The similarity between
these theories indicates that duty of manager is to create a work environment
which is answerable to employee's needs. Poor performance, undesirable
behavior and reduction of satisfaction can be explained somehow by blocked
needs or unsatisfied work needs. The motivational value of needs can be
assessed as active areas. The general guidelines of content theories are:
Understand the personal needs from the viewpoint of work needs.
On the whole, motivation is a complicated issue which cannot be easily
clarified. Personal differences of people influence the structure of their needs
and the environment of organization influences motivation. Desirable work
environment and considered reward lead to job satisfaction, high productivity of
employees and their motivation.

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Bibliography
1. A. H. Maslow, A Theory of Human Motivation, 1943;
2. Nadia Ayub, The relationship betweenwork motivation and job
satisfaction, 2011, Department of Business Psychology Karachi;
3. Pamela A. Braden, McClellands Theory of Needs,2000,
Parkersburg University;
4. Fred C. Lunenburg, Expectancy Theory of Motivation: Motivating
by Altering Expectations, 2011, Sam Houston State University.
5. Nancy H. Shanks, Management and motivation, 2009, Jones and
Bartlett Publishers;
6. Weiner B., Graham S., Theories and principles of motivation,
1996, National Science Foundation;

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