Chapter Five: Motivation
Chapter Synopsis
This chapter addresses motivation and the major theories that have been developed and used in
organizations to motivate employees. It begins with a story about an IBM executive who, despite
making every effort to be successful, made a $3 million mistake and how IBM management used the
situation to bolster a positive motivation atmosphere.
It continues with a discussion of job performance determinants (willingness to perform, capacity to
perform, and opportunity to perform) and the need for the motivational process to begin with the
individual.
Learning Objectives
After completing this chapter, students should be able to:
• Describe the role that need deficiencies play in motivating employees.
• Compare the major differences between the four content approaches of motivation.
Key Terms
needs—The deficiencies that an individual experiences at a particular point in time.
flexible (cafeteria) benefits plans—Plans that allow employees to choose benefits that suit them
and to make adjustments to meet their changing needs.
job enrichment—Increases motivation by building challenge, responsibility, recognition, and
growth opportunities into a person’s job.
organizational justice—An area of organizational science research that focuses on perceptions and
judgments by employees regarding the fairness of their organizations’ procedures and decisions.
distributive justice—The perceived fairness of how resources and rewards are distributed
throughout an organization.
procedural justice—The perceived fairness of the processes used by the organization to arrive at
important decisions.
interpersonal justice—Judgments made by employees about the perceived fairness of the treatment
received by employees from authorities.
Lecture Outline
The Chapter outline is organized to correspond with the PowerPoint slides.
The chapter title slide may be used as a background to introduce the class.
Learning objectives
Review the chapter learning objectives. These will be reviewed on the last slide of the pack.
Introduction
No one questions the central role motivation plays in shaping behavior and, specifically, in
influencing work performance in organizations. Nonetheless, as important as motivation is, it
is not the only factor that determines performance. Over the years, a variety of other variables
thought to play an important role in performance have been suggested. These include ability,
instinct, and aspiration level as well as personal factors such as age, education, and family
background.
EXHIBIT 5.1 Determinants of Job Performance
One way of conceptualizing the various determinants of performance is illustrated in Exhibit
5.1. As can be seen from this exhibit, job performance may be viewed as a function of the
capacity to perform, the opportunity to perform, and the willingness to perform. The capacity
to perform relates to the degree to which an individual possesses task-relevant skills, abilities,
No combination of capacity and opportunity will result in high performance in the absence of
some level of motivation or willingness to perform.
Determinants of Job Performance
Motivation Components
In all likelihood, those individuals are already motivated; what that manager really wants is
motivation that results in more or different kinds of behaviors. To understand this distinction, it
is helpful to think of motivation as being made up of at least three distinct components:
direction, intensity, and persistence.
Direction relates to what an individual chooses to do when presented with a number of
possible alternatives
Finally, persistence is an important component of motivation. Persistence refers to the staying
power of behavior or how long a person will continue to devote effort.
Needs Motivate Employees (1 of 2)
Most managers must motivate a diverse and, in many respects, unpredictable group of people.
The diversity results in different behavioral patterns that are in some manner related to needs
and goals. This type of diversity makes the manager’s motivational work very challenging.
Needs refer to deficiencies an individual experiences at a particular time. The deficiencies may
be physiological (e.g., a need for food), psycho-logical (e.g., a need for self-esteem), or
sociological (e.g., a need for social interaction).
EXHIBIT 5.2 The Motivational Process: A General Model
As can be seen in Exhibit 5.2, needs refer to deficiencies an individual experiences at a
particular time. Needs are viewed as energizers or triggers of behavioral responses. The
deficiencies trigger a search process for ways to reduce the tension caused by the deficiencies.
reassessed. This, in turn, triggers the process, and the circular pattern starts again.
Motivation Theories
The motivational process, as interpreted by most theorists, is goal-directed. The goals, or
outcomes, that an employee seeks are viewed as forces that attract the person. The
theories can be classified as representing either a content or a process approach to motivation.
on describing how behavior is motivated.
EXHIBIT 5.3 Managerial Perspective of Content and Process Theories of Motivation
EXHIBIT 5.3 Managerial Perspective of Content and Process Theories of Motivation
Exhibit 5.3 summarizes the basic characteristics of content and process theories of motivation
from a managerial perspective. Both categories of theories have important implications for
managers, who are—by the nature of their jobs—involved with the motivational process.
Content Motivation Theories
The content theories of motivation focus on the factors within the person that energize, direct,
theory. Each of these four theories has had an impact on managerial practices.
EXHIBIT 5.4 Maslow’s Needs Hierarchy Related to the Job
The crux of Maslow’s theory is that needs are arranged in a hierarchy. The lowest-level needs
are the physiological needs, and the highest-level needs are the self-actualization needs. These
needs are defined to mean the following:
1. Physiological. The need for food, drink, shelter, and relief from pain.
2. Safety and security. The need for freedom from threat, that is, security from threatening
events or surroundings.
3. Belongingness, social, and love. The need for friendship, affiliation, interaction, and love.
4. Esteem. The need for self-esteem and for esteem from others.
5. Self-actualization. The need to fulfill oneself by making maximum use of abilities, skills,
and potential.
Exhibit 5.4 shows the hierarchical nature of Maslow’s theory. For each of the five need levels,
the exhibit provides examples of work-related factors that might be associated with need
satisfaction.
The Need-Hierarchy Approach
A satisfied need ceases to motivate.
Unsatisfied needs can cause frustration.
Maslow assumes that people have a need to grow and develop and, consequently, will strive
constantly to move up the hierarchy in terms of need satisfaction. This assumption may be true
for some employees but not others.
Maslow’s Needs Hierarchy
A number of issues remain regarding the need-hierarchy theory. First, data from managers in
two different companies provided little support that a hierarchy of needs exists. The data
Aldefer’s ERG Theory
Alderfer agrees with Maslow that individual needs are arranged in a hierarchy. However, his
proposed need hierarchy involves only three sets of needs:
1. Existence. Needs satisfied by such factors as food, air, water, pay, and working conditions.
2. Relatedness. Needs satisfied by meaningful social and interpersonal relationships.
3. Growth. Needs satisfied by an individual making creative or productive contributions.
Herzberg’s Two-Factor Theory
Herzberg developed a content theory known as the two-factor theory of motivation. The two
factors are called hygiene factors (dissatisfiers) and motivators (satisfiers).Herzberg suggests
that both hygiene factors and motivators, need to be present in order for employees to feel
motivated. Hygiene factors are extrinsic conditions from the job context and include salary, job
security, working conditions, status, company procedures, quality of technical supervision, and
EXHIBIT 5.5 Traditional versus Herzberg View of Job Satisfaction
Referring to Exhibit 5.5, several important managerial implications of Herzberg’s two-factor
theory include:
1. No job dissatisfaction, high job satisfaction. An employee who is paid well, has job
security, has good relationships with co-workers and the supervisor (hygiene factors are
present 5no job dissatisfaction), and is given challenging duties for which he is
accountable will be motivated.
3. High job dissatisfaction, no job satisfaction. An employee who is not paid well, has
little job security, has poor relationships with co-workers and the supervisor (hygiene
factors are not present 5high job dissatisfaction), and is not given any challenging
assignments and is very bored with his job (motivators are absent no job satisfaction)
will not be motivated.
Criticisms of Herzberg’s Theory
Herzberg’s work has been criticized for a number of reasons. For example, some researchers
Herzberg’s Two-Factor Theory
Although the list of criticisms for Herzberg’s model is long, the impact of the theory on
McClelland’s Learned Needs Theory (1 of 4)
McClelland has proposed a theory of motivation that is closely associated with learning
McClelland’s Learned Needs Theory (2 of 4)
Based on research results, McClelland developed a descriptive set of factors that reflect a high
need for achievement. These are:
1. The person likes to take responsibility for solving problems.
McClelland’s Learned Needs Theory (3 of 4)
A person with a high need for power, meanwhile, concentrates on obtaining and exercising
power and authority. He or she is concerned with influencing others and winning arguments.
Power has two possible orientations according to McClelland. It can be negative in that the
person exercising it emphasizes dominance and submission. Or power can be positive in that it
reflects persuasive and inspirational behavior.
McClelland’s Learned Needs Theory (4 of 4)
The need for affiliation reflects a desire to interact socially with people. A person with a high
need for affiliation is concerned about the quality of important personal relationships, and thus,
social relationships take precedence over task accomplishment.
Criticisms of Learned Needs Theory
McClelland’s theory faces a number of criticisms. Not the least of these criticisms is that most
of the available evidence supporting the theory has been provided by McClelland or his
to a large body of literature that argues the acquisition of motives normally occurs in childhood
and is very difficult to alter in adulthood. Finally, McClelland’s theory is questioned on
grounds of whether the needs are permanently acquired. Research is needed to determine
whether acquired needs last.
EXHIBIT 5.6 A Graphic Comparison of Four Content Approaches to Motivation
Exhibit 5.6 compares the four approaches. McClelland proposed no lower-order needs.
Moreover, his needs for achievement and power aren’t identical with Herzberg’s motivators,
Maslow’s higher–order needs, or Alderfer’s growth needs, although there are some similarities.
A major difference between the four content theories is McClelland’s emphasis on socially
acquired needs. Also, the Maslow theory offers a static need-hierarchy system; Alderfer
extrinsic job factors. Each of the content approaches purports to present the clearest, most
meaningful, and most accurate explanation of motivation. In reality, each has strengths and
limitations that practicing managers need to consider; none is clearly inferior or superior to the
approaches to provide insights that can be applied to specific challenges and problems.
Process Theories of Motivation
The content theories we have examined focus mainly on the needs and incentives that cause
behavior. They are concerned primarily about which specific things motivate people. The
process theories of motivation are concerned with answering the questions of how individual
behavior is energized, directed, maintained, and stopped. We will examine three process
theories: expectancy theory, equity theory, and goal-setting theory.
Vroom’s Expectancy Theory (1 of 3)
One of the more popular explanations of motivation was developed by Victor Vroom. Vroom
defines motivation as a process governing choices among alternative activities. In his view,
most behaviors are considered to be under the voluntary control of the employee and
consequently are motivated. To understand expectancy theory, it is necessary to define the
terms of the theory and explain how they operate.
Vroom’s Expectancy Theory (2 of 3)
Four Content Approaches to Motivation
Review definitions on the slide.
of expectancy theory are effort-to-performance (E -P) expectancy, performance-to-outcome (P
-O) expectancy, outcomes, and valence.
Equity Theory
Equity theory explains how people’s perceptions of how fairly they are treated in social
exchanges at work (e.g., amount of the pay raise this year, how well the supervisor treats them,
by a desire to be equitably treated at work. The individual works in exchange for rewards from
the organization
Important Equity Theory Terms
Four important terms in this theory are:
1. Person. The individual for whom equity or inequity is perceived.
2. Comparison other. Any group or persons used by Person as a referent regarding the ratio of
inputs and outcomes.
(e.g., skills, experience, learning) or ascribed (e.g., age, sex, race).
EXHIBIT 5.8 The Equity Theory of Motivation
Exhibit 5.8 illustrates the equity theory of motivation.
Change Procedures to restore Equity
In response to this under rewarded condition, equity theory suggests a number of alternative
methods to restore a feeling or sense of equity vis-à-vis your treatment (as compared to that of
your colleague). Some examples of restoring equity are:
1. Changing inputs. You may decide to put less time or effort into the job.
3. Changing attitudes. Instead of changing inputs or outcomes, you may simply change your
attitude by convincing yourself that the money is less important than other outcomes (e.g.,
nice place to work, job security, etc.).
4. Changing the reference person. In this example, you can change the reference person to
someone who received a raise that was similar to the one you received. This might allow
you to restore equity by comparing your outcomes/input ratio to someone with a similar
ratio.
5. Changing the inputs or outcomes of the reference person. Since the original reference person
6. Leaving the field. Due to the frustration and perceived unfairness of the situation, you may
Organizational Justice ( 1 of 3)
In the 1980s and 1990s, equity theory inspired new streams of research to explain employee
attitudes and behavior. The concept of organizational justice, or the degree to which
individuals feel fairly treated at the workplace, attracted a considerable amount of research
attention.
Organizational Justice (2 of 3)
Exhibit 5.9
The four components of this research domain are: distributive, procedural, interpersonal, and
informational justice
Organizational Justice (3 of 3)
Positive consequences of procedural justice have been found in important organizational
decision contexts, including pay allocation, personnel selection, and performance appraisal.
Since procedural justice can provide benefits to organizations, an important issue involves the
types of decision-making procedures that people consider to be fair.
Procedural Justice (1 of 4)
People are more inclined to interpret decisions to be fair when they have a voice in the
decision, there is consistency in decision making and the process and procedures conform to
ethical and moral values.
Procedural Justice (2 of 4)
Two explanations have emerged regarding why procedural justice works. Self-interest theory
proposes that people want fair procedures because such fairness enables them to obtain desired
extrinsic outcomes. Although a manager may decide not to promote a person, if the process
has been fair it will be accepted and the employee will be more likely to remain committed to
the organization.
Group value theory suggests that people value fairness as a means of realizing such desired
intrinsic outcomes as self-esteem. People have a strong sense of affiliation with groups to
which they belong. Fair group procedures are considered to be a sign of respect and an
indication that they are valued members of the group. This results in a higher sense of self-
esteem.
Procedural Justice ( 3 of 4)
Related to procedural justice is the concept of interpersonal justice, which refers to judgments
made by employees about whether they feel fairly treated by their supervisors and other
authorities in the organization.
Procedural Justice (4 of 4)
A final form of organizational justice, informational justice focuses on whether employees
perceive that decisions and other communication from authorities are explained in a fair
manner.
Goal Setting
Interest in applying goal setting to organizational problems and issues has been growing since
proposed that goal setting is a cognitive process of some practical utility. His view is that an
individual’s conscious goals and intentions are the primary determinants of behavior
Goal Setting Terms
The attributes Locke highlights are goal specificity, goal difficulty, and goal intensity.
Goal specificity is the degree of quantitative precision (clarity) of the goal.
Goal difficulty is the degree of proficiency or the level of performance that is sought.
Goal intensity pertains to the process of setting the goal or of determining how to reach it.
Goal commitment is the amount of effort used to achieve a goal.
EXHIBIT 5.10 Goal Setting Applied to Organizations
Exhibit 5.10 presents a model of individual goal setting using available theoretical research but
that a goal serves as a motivator. It is important for any goal to be clear, meaningful, and
challenging. When goals are not accomplished, an individual faces a sense of dissatisfaction.
Whether there is a relationship between goals and job performance is moderated by a number
of factors, including ability, commitment, and feedback.
Motivation and the Psychological Contract
A conceptual framework that provides a useful perspective for viewing the topic of motivation
is exchange theory. In a very general sense, exchange theory suggests that members of an
organization engage in reasonably predictable give-and-take relationships (exchanges) with
The Psychological Contract
You may recall from chapter one; the psychological contract is an unwritten agreement
between an employee and the organization that specifies what each expects to give to and
receive from the other.
Psychological Contract breach
In the ideal psychological contract, those contributions the individual was willing to give
would correspond perfectly to what the organization wanted to receive; similarly, what the
Such a violation of the psychological contract can lead to decreased job satisfaction and
citizenship behavior.
Reviewing Motivation
This chapter suggests that instead of ignoring motivation, managers must take an active role in
motivating their employees. Four specific conclusions are offered here:
1. Managers can influence the motivation state of employees. If performance needs to be
improved, then managers must intervene and help create an atmosphere that encourages,
supports, and sustains improvement.
2. Managers should be sensitive to variations in employees’ needs, abilities, and goals.
Managers also must consider differences in preferences (valences) for rewards.
4. Managers need to work on providing employees with jobs that offer task challenge,
In review, Did We…
Instructors may wish to use the learning objects to facilitate a high-level review of material.
Summary of Key Points
• Motivation is made up of at least three distinct components. Direction refers to what an
individual chooses to do when presented with a number of possible alternative courses of
action. Intensity relates to the strength of the individual’s response once the choice
(direction) is made. Finally, persistence refers to the staying power of behavior, or how long
a person will continue to devote effort.
• Alderfer’s ERG theory is a need hierarchy comprised of three sets of needs: existence,
relatedness, and growth. In addition to the satisfaction-progression process Maslow
describes, Alderfer suggests that if a person is continually frustrated in trying to satisfy one
level of need, he or she may regress to the next lowest level need. •Herzberg’s research
suggests that there are two important sets of factors. Motivators are intrinsic conditions and
include achievement, recognition, and responsibility. Hygiene factors are extrinsic conditions
and include salary, working conditions, and job security. In Herzberg’s view, it is only the
motivators that contribute to satisfaction and thus have the power to provide motivation.
• Instrumentality refers to the strength of a person’s belief that achieving a specific result or
outcome will lead to attaining a secondary outcome. Valence refers to a person’s preference
for attaining or avoiding a particular outcome. Expectancy refers to a person’s belief
regarding the likelihood or subjective probability that a particular behavior will be followed
by a particular outcome.
• The essence of equity theory is that employees compare their job inputs and outputs with
those of others in similar work situations. Inputs are what an individual brings to the job and
include skills, experiences, and effort, among others. Outcomes are what a person receives
from a job and include recognition, pay, fringe benefits, and satisfaction, among others.
• Employee expectations of what the organization will give them, what they owe the
organization, and the organization’s expectation of what it will give to and receive from
employees constitute the psychological contract. A psychological contract is an unwritten
agreement between the individual and the organization that specifies what each expects to
give to and receive from the other.
Review and Discussion Questions
1. Of the three components of motivation – direction, intensity, and persistence – which do you
believe is the most challenging to maintain when it comes to keeping yourself motivated at
work or in school? Explain.
Ans: Student answers will vary but should include some level of self-reflection and properly apply
the terms of the chapter.
2. Which of the content theories discussed in the chapter do you believe offers the best
explanation of motivation? Which of the process theories? Overall, do you feel that the content
approach or the process approach best explains motivation?
Ans: Student answers will vary. Some will gravitate toward the needs hierarchies, despite their
shortcomings, because they fit “intuitively.” Students will likely see themselves progressing toward
3. Motivation is just of one several factors that influence productivity. What other factors
were discussed in the chapter? What is the relationship between these factors and motivation?
Ans: No one questions that motivation plays a central role in shaping behavior influencing work
performance. However, other variables are thought to play a role in performance as well. These
4. What implications does Herzberg’s two-factor theory have for the design of organizational
reward systems? How can the theory be used to explain differences in the three components of
motivation?
Ans: Herzberg’s two-factor theory implies that organizations must create interesting, intrinsically
rewarding jobs, if they want to motivate people. Manipulating compensation systems alone will not
motivate workers. On the other hand, adequate rewards must be offered or employees will be
5. Assume you are a global manager responsible for an international subsidiary that has
employees from many parts of the world—China, India, Morocco, Brazil, and Spain. How will
you go about learning how to motivate these individuals to perform their jobs well? Which of
the motivation theories discussed in this chapter can help you to understand their work
attitudes and behaviors?
Ans: Student answers will vary, depending on the approach that the student thinks is best suited to
this situation.
6. As a manager, would you rather the people for whom you are responsible be extrinsically or
intrinsically motivated? Explain.
Ans: Some students will prefer intrinsically motivated subordinates because of their belief that such
7. Think back to the last time you felt unfairly treated at work or at school. Which of the four
components of organizational justice, distributive, procedural, interpersonal, or informational,
best explains why you felt this way?
Ans: Student answers will vary. Open the class up for discussion. The exchange of answers will be a
valuable lesson on the justice perspectives of different individuals.
8. How important a role does perception play in determining whether an employee is receiving
equitable treatment? What kinds of things might a manager do to influence those perceptions?
Ans: Perception plays a critical role determining equity or inequity, and it varies substantially
between individuals. It is difficult to accurately measure the person’s perception of a Comparison
9. Goal-setting can be a difficult system to implement effectively. What kinds of problems
might be encountered in an effort to implement a goal-setting program in an organization? As
a manager, what would you do to minimize the likelihood you would encounter these
problems?
Ans: Goal setting can deteriorate into game playing. When management half-heartedly implements
goal setting or participants set goals that do not require challenge, effort, or real involvement in their
1. Securing top-level managerial commitment to a goal setting program;
2. Ensuring that participants set truly challenging (though attainable) goals;
10. Is there a psychological contract between the students enrolled in this course and the
instructor? What are some of the specifics of this contract? How was the contract determined?
Ans: Students will probably suggest that there is a psychological contract between the students and
the instructor and that the contract involves features such as the following:
Exercise 5.1: Goal Setting—How to Do It
Purpose
To enhance students’ understanding of the importance of goal clarity, attainability, and
measurability in effective goal setting.
The Exercise in Class
This activity is useful in developing students’ understanding of the characteristics of effective goal
statements and of the important impact that statement characteristics have on the effectiveness of
goal setting. The technique will not work unless goal statements meet specific criteria stated in
the exercise.
Here’s a brief critique of the four goal statements that students evaluate in the exercise:
Goal statement 1: The statement includes an action verb and a measurable result but no date of
completion nor a cost.
Goal statement 2: The statement includes an action verb and a measurable result but no date of
completion or cost incurred.
Case 5.1: Companies Are Shifting from Evaluating Performance to Developing Talent: Will It
Motivate Employees?
1. What’s your opinion regarding forced ranking performance appraisals? Do they
motivate employees? Explain.
Student answers will vary, depending on their viewpoint. Proponents of the system may claim that
such “forced ranking” systems ensure that managers take a cold look a performance. It can also
2. How would equity theory explain some employees’ negative reactions to forced rankings?
Sample answer: Consider that two groups are being evaluated. Group A consists of high performers,
3. Based on Chapter 5, if you decided not to use forced rankings at your company, how
would you motivate employees?
Student answers will vary. Answers should touch on a variety of motivators, because no single item
Teaching Hints and Tips
Lecture Ideas
1. To generate student interest in motivation theory, ask them to respond to very general
questions about their reasons for choosing this class. For example, what do they expect from
the experience? How committed are they to learning this material? How much time and energy
do they devote to studying and completing exercises? What would be a satisfactory outcome
for them? And so on. As students express their thoughts about the course, record their
2. One way to impress upon students the importance of individual differences in motivation is to
write the major individual-level concepts from chapter 3 on the board (e.g., perception, needs,
3. To illustrate the applied implications of expectancy theory, have your students:
a. Identify a management situation from their own work experience
b. Assume the manager’s role; and
c. Prepare a motivation action plan to motivate subordinates, based on expectancy theory.
Of course, the plan should focus on boosting a subordinate’s expectancy, instrumentally, and
valences. For example, a subordinate’s expectancy (perceived relationship between effort and
Project and Class Speaker Ideas
1. Begin by explaining to the class that sometimes the best way to learn something is to teach it.
Divide the class into groups and assign each group a different motivation theory. Each group
should prepare to teach that theory to the rest of the class. Lay out the following ground rules
for each group:
a. While teaching, the group must explain the theory’s principles (using a diagram, if
preferred).
b. The group must use examples from their own work experience or exercises to
demonstrate to the rest of the class how the theory works.
2. What motivates subordinates? Everyone has a different answer. Have your students develop a
profile of what motivates subordinates based on interviews with a particular group of managers
or subordinates that they have interviewed. For instance, (a) Top executives of a small business
3. Invite a human resources professional from a local business to visit the class to talk about the
organization’s compensation system and its promotional practices. Let the students question the
speaker and/or ask the speaker to explain the underlying motivational logic of the system. For
example:
a. What behavior is critical to competitive strength in this business?
b. To what extent does the compensation system reward this behavior?
Term Paper Topics
1. Needs Hierarchies: A Comparison of Maslow and Alderfer
5. My Motivational Makeup: Its Development and Impact on My Job Performance
6. Topic for Term Paper Debate: Why (selected theory) Theory is Most Useful for Management
7. Topic for Term Paper Debate: Can Needs be Learned?