CHAPTER 16
MOTIVATING EMPLOYEES
CHAPTER OUTLINE
Are You Engaged or Disengaged?
I. The Concept of Motivation
A. Individual Needs and Motivation
B. Managers as Motivators
II. Content Perspectives on Motivation
III. Process Perspectives on Motivation
A. Goal Setting
B. Equity Theory
C. Expectancy Theory
IV. Reinforcement Perspective on Motivation
ANNOTATED LEARNING OBJECTIVES
After studying this chapter, students should be able to:
1. Define motivation and explain the difference between intrinsic and extrinsic rewards.
Motivation refers to forces either within or external to a person that arouse enthusiasm, and
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2. Identify and describe content theories of motivation based on employee needs.
Content theories of motivation emphasize the needs that motivate people. These needs translate
into an internal drive that motivates an individual’s specific behaviors in an attempt to fulfill the
needs. The organization’s reward system can be designed to meet employees’ needs and
reinforce them in directing their energies and priorities toward attainment of organizational
Herzberg developed the two-factor theory of motivation. He suggested that the work
characteristics associated with dissatisfaction were different from those pertaining to satisfaction,
prompting the notion that two factors influence work motivation—hygiene factor and motivators.
3. Identify and explain process theories of motivation.
Process theories of motivation explain how people select behavioral actions to meet their needs
and determine whether their choices were successful. Important process theories of motivation
are goal-setting theory, equity theory, and expectancy theory.
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4. Describe the reinforcement perspective and social learning theory and how they can be used
to motivate employees.
Reinforcement theory looks at the relationship between behavior and its consequences. It focuses
on changing or modifying the employees’ on-the-job behavior through the appropriate use of
immediate rewards and punishments. Behavior modification involves techniques by which
reinforcement theory is used to modify human behavior. Reinforcement is defined as anything
5. Discuss major approaches to job design and how job design influences motivation.
A job in an organization is a unit of work that a single employee is responsible for performing.
Jobs are an important consideration for motivation because performing their components may
provide rewards that meet the employees’ needs. Job design is the application of motivational
theories to the structure of work for improving productivity and satisfaction. Major approaches to
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6. Describe how managers build a thriving workforce for a high-performing organization.
A thriving workforce is one in which people are just not satisfied and productive but also
engaged in creating the future—their own and that of the organization. Two components of
7. Explain how empowerment heightens employee motivation.
Organizations have adopted new programs that apply motivational theory to improve employees’
satisfaction and performance. The newest trend in motivation is empowerment, which is power
8. Identify three elements of employee engagement and describe some ways that managers can
create a work environment that promotes engagement.
Employee engagement means that people enjoy their jobs and are satisfied with their work
conditions, contribute enthusiastically to meeting team and organizational goals, and feel a sense
way that each person can learn, contribute, and grow.
LECTURE OUTLINE
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ARE YOU ENGAGED OR DISENGAGED?
The term employee engagement is becoming popular in the corporate world. Engagement means
I. THE CONCEPT OF MOTIVATION Exhibit 16.1
Motivation refers to the forces either within or external to a person that arouse enthusiasm and
persistence to pursue a certain course of action. Employee motivation affects productivity, and
part of a manager’s job is to channel motivation toward accomplishment of organizational
goals. The study of motivation helps understand what prompts people to initiate action, what
influences their choice of action, and why they persist in that action over time.
A. Individual Needs and Motivation
1. People have needs—such as for recognition, achievement, or monetary gain—that
translates into an internal tension that motivates specific behaviors with which to
fulfill various needs. Needs motivate specific behavior designed to fulfill those
B. Managers as Motivators
1. The importance of motivation is that it can lead to behaviors that reflect high
performance and profits within organizations. Managers have to find the right
Discussion Question #1: Why do you think making progress ranks as the most important factor
contributing to motivation according to a recent study? How can managers provide a sense of
progress for employees working on long-range projects that might not show results for months
or even years?
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II. CONTENT PERSPECTIVES ON MOTIVATION Exhibit 16.3
Content theories emphasize the needs that motivate people; people have a variety of needs at
any point in time. These needs translate into an internal drive that motivates specific behaviors
A. The Hierarchy of Needs
1. Abraham Maslow’s hierarchy of needs theory proposes that humans are motivated
by multiple needs, existing in a hierarchical order. He identified five general types of
motivating needs in order of ascendance:
a. Physiological needs. The most basic human physical needs including food,
water, and oxygen. In the organizational setting, these needs include adequate
heat, air, and base salary to ensure survival.
d. Esteem needs. Esteem needs relate to the desire for a positive self-image and the
need to receive attention, recognition, and appreciation from others. These needs
are reflected in organizations as a desire for recognition, increased responsibility,
high status, and credit for contributions to the organization.
2. The lower-order needs take priority in that they must be satisfied before higher-order
needs are activated. The needs are satisfied in sequence; once a need is satisfied, it
declines in importance and the next higher need is activated. If a lower-level need
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B. ERG Theory
1. ERG theory was developed by Clayton Alderfer and is a modification of Maslow’s
theory in an effort to simplify it and respond to criticisms of its lack of empirical
verification. ERG theory identified three categories of needs.
2. The ERG model and Maslow’s need hierarchy are similar as both are hierarchical
and presume that individuals move up the hierarchy one need at a time. However,
the ERG model suggests reduced number of need categories and the movement up
3. Many companies find that creating a humane work environment that allows people
to achieve a balance between work and personal life is a great high-level motivator.
C. A Two-Factor Approach to Motivation Exhibit 16.4
1. Frederick Herzberg asserted that work characteristics associated with dissatisfaction
were different from those pertaining to satisfaction. This prompted the idea that two
different factors influenced work motivation and an employee’s behavior at work,
leading to his development of the two-factor theory. The two factors that influence
motivation are hygiene factors and motivators.
a. Hygiene factors relate to lower-order needs and involve the absence or presence
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b. Motivators relate to higher-order needs and include things such as achievement,
2. The manager’s role is to provide hygiene factors to meet basic needs and use
motivators to meet higher-level needs to propel employees toward achievement and
satisfaction.
D. Acquired Needs
1. David McClelland developed acquired needs theory, which proposes that certain
types of needs are acquired or learned during an individual’s lifetime. People are not
born with these needs, but may learn them through life experiences. McClelland
2. McClelland studied human needs and their implications for management. People
with a high need for achievement are frequently entrepreneurs. People with high
Discussion Question #7: A survey of teachers found that two of the most important rewards
were the belief that their work was important and a feeling of accomplishment. According to
Maslow’s theory, what needs do these rewards meet?
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NEW MANAGER SELF-TEST: NEED FOR ACHIEVEMENT, AFFILIATION, AND POWER
David McClelland’s research found that some human needs are learned during early life
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III. PROCESS PERSPECTIVES ON MOTIVATION
Process theories explain how employees select behaviors with which to meet their needs and
determine if their choices were successful. The basic process theories are goal-setting, equity
theory, and expectancy theory.
A. Goal Setting
1. Goal-setting theory proposes that specific, challenging goals increase motivation
and performance when the goals are accepted by subordinates who receive feedback
to indicate progress toward goal achievement. Goal-setting theory includes four key
components:
a. Goal specificity: The degree to which goals are concrete and unambiguous.
toward goal achievement.
2. Goal setting increases motivation because it enables people to focus their energies in
the right direction. People know what to work toward, so they can direct their efforts
3. Recent research indicates the importance of making progress toward goals as a key
to motivation. The making progress principle is the idea that the single most
B. Equity Theory
1. Equity theory, developed by J. Stacy Adams, focuses on individuals’ perceptions of
how fairly they are treated relative to others. People evaluate equity by a ratio of
2. The input-to-output ratio may be compared with another person in the work group or
to a perceived group average. If people perceive that their input-to-outcome ratio is
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3. The most common methods for reducing a perceived inequity are:
a. Change work effort: such as by decreasing the level of effort or increasing
absenteeism
4. The implication of equity theory for managers is that employees evaluate the
perceived equity of their rewards compared to others’. An increase in salary or
promotion will not motivate if it is perceived as inequitable relative to other
employees. Smart managers try to keep employees’ feelings of equity in balance to
keep their workforce motivated.
Discussion Question #6: If an experienced executive assistant discovered that she made the
same amount of money as a newly hired janitor, how do you think she would react? What inputs
and outcomes might she evaluate to make this comparison?
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C. Expectancy Theory Exhibit 16.6
1. Expectancy theory, associated with the work of Victor Vroom, suggests that
motivation depends on individuals’ expectations about their ability to perform tasks
and receive desired rewards. It focuses on the thinking process individuals use to
obtain rewards. Expectancy theory is based on the relationship among the
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2. Managers’ responsibility is to help subordinates meet their needs and at the same
time attain organizational goals. Managers try to find a match between a
subordinate’s skills and abilities, job demands, and available rewards. Companies
IV. REINFORCEMENT PERSPECTIVE ON MOTIVATION Exhibit 16.7
Reinforcement theory looks at the relationship between behavior and its consequences. The
focus is on changing or modifying the employees’ on-the-job behavior through the appropriate
use of immediate rewards and punishments.
A. Direct Reinforcement
1. Behavior modification is the technique by which reinforcement theory is used to
modify behavior. The basic assumption underlying behavior modification is the law
a. Positive reinforcement is the application of a pleasant and rewarding
consequence following a desired behavior. Praise for a job well done increases
the likelihood the excellent work behavior will occur again. Studies show that
positive reinforcement improves performance.
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d. Extinction is the withdrawal of a positive reward following undesirable
Discussion Question #2: One small company recognizes an employee of the month, who is
given a parking spot next to the president’s space near the front door. What theories would
explain the positive motivation associated with this policy?
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B. SOCIAL LEARNING THEORY
1. Social learning theory is related to the reinforcement perspective, but it proposes
2. Vicarious learning, or observational learning, occurs when an individual sees others
perform certain behaviors and get rewarded for them. This can be made used by
JOB DESIGN FOR MOTIVATION
A job in an organization is a unit of work that a single employee is responsible for performing.
Jobs are important because performance of their components may provide rewards that meet
employees’ needs. Job design is the application of motivational theories to the structure of
work for improving productivity and satisfaction. The following are approaches to job design.
A. Job Enrichment
1. Job rotation systematically moves employees from one job to another, increasing
the number of different tasks an employee performs. Job enlargement combines a