Contemporary Theories of Motivation

Gonzalo Campuzano Enrique Flores

OUTLINE
Introduction Early Theories of Motivation (Overview) Goal Setting Theory

MBO Programs

Equity Theory Expectancy Theory Integrating Contemporary Theories of Motivation References Questions & Answers

55% of U.S. employees have no enthusiasm for their job.

As cited in D. Jones, Firms spend Billions to Fire Up Workers With Little Luck, USA Today, May 10, 2001

INTRODUCTION
Motivation is the result of the interaction of the individual and the situation. Individuals differ in their basic motivational drive.

i.e. Texbook Vs. Novel

The level of motivation varies both between individuals and within individuals at different times. Motivation: The process that account for an individuals intensity, direction, and persistence of effort toward attaining a goal. [1]

EARLY THEORIES OF MOTIVATION

1950s:

Hierarchy of needs theory Theories X and Y The two-factor theory.

They represent a foundation from which contemporary theories have grown. Practicing managers still regularly use this theories and their terminology in explaining employee motivation. Contemporary way of thinking

GOAL-SETTING THEORY
Goals tell an employee what needs to be done and how much effort will need to be expended. In order to increase performance:

Set specific goals. Difficult goals, when accepted, result in higher performance than does easy goals. Provide feedback.

An individual is committed to the goal when he believes he can achieve the goal, and wants to achieve it.

MBO PROGRAMS: Putting Goal-Setting T. Into Practice

Converting overall organizational objectives into specific objectives for organizational units and individual members. Four ingredients common to MBO programs:

Goal specification. Participation in decision making. An explicit time period. Performance feedback.

Failures may come from:

Unrealistic expectations regarding results. Lack of commitment by top management. Cultural incompatibilities.

Fujitsu

EQUITY THEORY

Employees make comparison of their job inputs and outcomes relative to those of others:

When employees perceive inequity, the can:

Change their inputs. Change their outcomes. Distort perceptions of self. Distort perception of others. Choose a different referent Leave the field

EQUITY THEORY

Given payment by time:

Overrewarded employees will produce more than will equitably paid employees. Underrewarded employees will produce less or poorer quality of output.
Overrewarded employees will produce fewer, but higher-quality, units than will equitably paid employees. Underrewarded employees will produce a large number of low-quality units in comparison with equitably paid employees.

Given payment by quantity of production:

EQUITY THEORY: Conclusions

Motivation is influenced significantly by others rewards as well as by ones own rewards. Inequities created by overpayment do not seem to have a very significant impact on behaviour. Most research has focused on pay, but employees seem to look for equity in the distribution of other rewards. Historically, equity theory focused on distributive justice. But increasingly equity is thought of from the standpoint of organizational justice. Managers should consider openly sharing information on how allocation decisions are made, following consistent and unbiased procedures.

EXPECTANCY THEORY

The strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that the outcome to the individual.
1 2 3

Indivudual Effort

Individual Performance

Organizational Rewards

Personal Goals

The theory focuses on three relationships:

1. Effort-performance. 2. Performance-reward. 3. Rewards-personal goals.

EXPECTANCY THEORY
Giving maximum effort not always means being recognized. Good performance appraisal not always leads to organizational rewards. Rewards are not always found attractive by employees:

Managers limited in the rewards they can distribute. Managers incorrectly assume that all employees want the same.

EXPECTANCY THEORY: Conclusions

The key is the understanding of an individuals goal and the linkage between the three relationships.

There is no universal principle for explaining everyones motivations.

INTEGRATING CONTEMPORARY THEORIES OF MOTIVATION

Many theories are complementary. Its basic foundation is the expectancy model.
Job Design High Achievement Need Equity Comparison/ Organizational Justice
O O : I A IB

Opportunity

Ability

Performance Evaluation Criteria

Indivudual Effort

Individual Performance

Organizational Rewards

Personal Goals

Objective Performance Evaluation System

Reinforcement

Dominant Needs

Goals Direct Behavior

Job Design

High Achievement Need

Equity Comparison/ Organizational Justice
O O : I A IB

Opportunity

Ability

Performance Evaluation Criteria

Indivudual Effort

Individual Performance

Organizational Rewards

Personal Goals

Objective Performance Evaluation System

Reinforcement

Dominant Needs

Goals Direct Behavior

REFERENCES
Robbins and Judge, Organizational Behavior, 12th Edition, Pearson Prentice Hall, 2007. D. Jones, Firms spend Billions to Fire Up Workers With Little Luck, USA Today, May 10, 2001 [1] T.R. Mitchell, Matching Motivational Strategies with Organizational Contexts, Research in Organizational Behavior, vol. 19, pp 60-62 P.C. Early, P. Wojnaroski, and W. Prest, Task Planning and Energy Expended: Explorations of How Goals Influence Performance, Journal of Applied Psychology, Feb 1987. J. Greenberg and S. Ornstein, High Status Job Title as Compensation for Underpayment: A Test of Equity Theory, Journal of Applied Psychology, May 1983.

ERG THEORY
Clayton Alderfer introduced ERG theory
It is similar to Maslows hierarchy theory. Alfred argues that there are 3 groups of core needs. They are

1. Existence, or physiological, needs are at the base. These include the needs for things such as food, drink, shelter, and safety.

2.Relatedness Needs, the need to feel connected to other individuals or a group. These needs are fulfilled by establishing and maintaining relationships.

3.Growth Needs, the needs for personal achievement and self-actualization

If a person is continually frustrated in trying to satisfy growth needs, relatedness needs will remerge. This phenomenon is known as the frustration-regression process.

Questions & Answers

ERG Theory: Conclusion

Multiple needs can be operating as motivators at the same time. Frustration in attempting to satisfy a higher level need can result in regression to lower-level It doesnot assume that there exists rigid hieraarchy in which a lower need must be substantially gratified before one can move on.