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Chapter 7
Motivation Concepts
Click on the title to access video teaching notes.
Chapter Overview
Motivation is one of the major areas of interest in OB. Properly
motivating a workforce can lead to gains in productivity, innovation, and employee
Chapter Objectives
After studying this chapter, the student should be able to:
1. Describe the three key elements of motivation.
2. Identify early theories of motivation and evaluate their
applicability today.
3. Contrast goal-setting theory and management by objectives.
Suggested Lecture Outline
I. INTRODUCTION
Motivation is a problem in the U.S. workforce. Poorly motivated workers express
themselves through detrimental behaviors such as time wasting, absenteeism, and high
II. DEFINING MOTIVATION
Motivation: the processes that account for an individual’s
intensity, direction, and persistence of effort toward attaining a
goal, specifically for OB, toward attaining an organizational goal.
A. Three Key Elements in the Definition:
1. Intensity: how much effort a person puts forth to meet a goal.
2. Direction: efforts are channeled toward organizational goals.
3. Persistence: how long a person maintains effort toward a goal.
III. EARLY THEORIES OF MOTIVATION
These early theories have been heavily attacked and are now
considered questionable in terms of validity. However, it is still
important to learn them both as the basis for current theories and
because many practicing managers still use these theories. It is
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A. Maslow’s Hierarchy of Needs Theory. In this, perhaps best
known (and least supported) of all motivational theories,
1. Physiological: lower order need, includes hunger, thirst, shelter, sex, and other
2. Safety: lower order need, includes security and protection from physical and
emotional harm.
3. Social: upper order need, includes affection, belongingness, acceptance, and
5. Self-actualization: upper order need, defined as the drive to “be all one can be” it
includes growth, achieving one’s potential, and self-fulfillment.
B. McGregor’s Theory X and Theory Y. Douglas McGregor’s theory
proposed that there were two basic views of human nature, one
1. Theory X. In this negative view of human nature, workers are inherently dislike
work and must be directed or even coerced into performing it.
3. In Maslow’s terms:
a. A Theory X viewpoint means that lower-order needs dominate individual
4. Unfortunately, as with Maslow’s theory, there is no research evidence that either
view of human nature is valid or that taking actions based on Theory Y will
increase motivation in workers.
C. Herzberg’s Two-Factor (Motivation-Hygiene) Theory. Frederick
Herzberg proposed that an individual’s relation to work is basic
and that one’s attitude toward work can very well determine
1. In his research, Herzberg realized that the opposite of
satisfaction is not dissatisfaction; rather there are two different factor scales,
one ranging from satisfaction to no satisfaction and the other from
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He called the first set of factors motivation factors and the second hygiene
factors.
a. Hygiene Factors. These workplace factors, when not met, lead to job
dissatisfaction. When they are met, they do NOT lead to job satisfaction, but
b. Motivation Factors. These are intrinsically rewarding factors in the work
environment such as promotion and personal growth opportunities,
2. As with the other two main motivational theories, this very popular theory is
also not well supported in the research literature. There are many criticisms of
the Two-Factor Theory, mostly dealing with the methodology Herzberg used in
his initial studies.
D. McClelland’s Theory of Needs. David McClelland and his associates created a theory
based on three subconscious needs:
1. Need for Achievement (nAch): the drive to excel and to
achieve in relation to a set of standards. High achievers
b. A high need for achievement does not necessarily mean
2. Need for Power (nPow): the need to make others behave in a way they would
not have behaved otherwise.
4. The best managers appear to be those with a high need for power and a low
need for affiliation.
5. The need for achievement presupposes certain cultural characteristics such as
6. McClelland’s theory has the best research support, but has the least practical
effect of any of the early motivational theories.
IV. CONTEMPORARY THEORIES OF MOTIVATION
A. Unlike the historic theories of motivation, these current
theories of motivation do have a reasonable degree of supporting documentation. It
is important to remember that these are still theories. None of these has been
totally proven true.
B. Self-Determination Theory
1. Self-determination theory, which proposes that people
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2. Much research on self-determination theory in OB has focused on cognitive
evaluation theory, which hypothesizes that extrinsic rewards will reduce
3. Self-determination theory also proposes that in addition to being driven by a
need for autonomy, people seek ways to achieve competence and positive
connections to others.
1) If you’re reading a novel a week because your English literature
instructor requires you to, you can attribute your reading behavior to an
external source.
4. Goal setting is more effective in improving motivation, for instance, when we
provide rewards for achieving the goals.
5. The original authors of self-determination theory acknowledge that extrinsic
6. Deadlines and specific work standards do, too, if people believe they are in
7. What does self-determination theory suggest for providing rewards? Consider
two situations.
a. If a senior sales representative really enjoys selling and making the deal, a
commission indicates she’s been doing a good job at this valued task.
b. The reward will increase her sense of competence by providing feedback
8. A recent outgrowth of self-determination theory is self-concordance, which
considers how strongly peoples’ reasons for pursuing goals are consistent with
their interests and core values.
a. If individuals pursue goals because of an intrinsic interest, they are more
likely to attain their goals and are happy even if they do not. Why? Because
9. OB research suggests that people who pursue work goals for intrinsic reasons
10. What does all this mean?
1) They need to make the work interesting, provide recognition, and
support employee growth and development. Employees who feel what
they do is within their control and a result of free choice are likely to be
more motivated by their work and committed to their employers.
C. Job Engagement.
1. Job engagement is the investment of an employee’s
physical, cognitive, and emotional energies into job
performance.
2. When employees are engaged, organizations have higher levels of productivity,
fewer safety incidents, and lower turnover.
3. People are more likely to be engaged in their jobs if they believe that it is
4. In some cases, individuals may become so engaged in their work that family
responsibilities become an unwelcome intrusion.
D. Goal-Setting Theory.
1. This theory studies the effects goal specificity, challenge,
and feedback has on performance. The study of goal
setting has created the following general rules:
2. Specific goals produce a higher level of output than do generalized goals.
3. Typically, the more difficult the goal, the higher level of performance, assuming
that goal has been accepted by the employee. This is because:
4. Feedback is important in goal-setting theory, especially self-generated feedback.
5. The question of whether participative goal-setting increases motivation has not
yet been resolved. The assumption is that when employees are involved in
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setting the goals, they have greater buy-in and therefore will have a higher level
of commitment. When employees don’t participate in goal setting, the manager
must take pains to explain the purpose and importance of the goal.
6. Contingencies in goal-setting theory:
a. Goal Commitment. Commitment increases when goals are made public,
when the individual has an internal locus of control, and when goals are self-
set rather than assigned.
b. Task Characteristics. Goals are better in terms of performance on simple
rather than complex tasks, when tasks are familiar, and when they are
7. Implementing Goal-Setting. Setting specific, challenging goals for employees is
the best thing managers can do to improve performance. However, it appears
that few managers actually set goals for their employees. One of the ways an
organization can ensure this happens is through Management by Objectives
(MBO).
E. Management by Objectives (MBO). To formalize goal-setting theory into an
organization one of the more effective ways to do this is
through management by objectives. MBO emphasizes
1. Four ingredients common to MBO programs:
a. goal specificity,
2. MBO and Goal-Setting. The primary difference between MBO programs and
goal-setting theory relates to the issue of participation. MBO strongly advocates
it, while goal-setting theory demonstrates that having managers assign goals is
usually just as effective.
F. Bandura’s Self-Efficacy Theory (also known as “social cognitive theory” or “social
learning theory“). Typically, people with high self-efficacy respond better to
challenges and negative feedback than those with low self-efficacy.
Self-efficacy: an individual’s belief that he or she is capable of performing a task.
1. Goal-Setting Theory and Self-Efficacy Theory Complement Each Other. When
managers set difficult goals for employees, this leads employees to have a higher
2. Four Ways to Increase Self-Efficacy:
b. Vicarious Modeling: becoming more confident because
another person is observed doing the task.
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Research has shown that overpayment does not have a very significant effect on
behavior in most work situations and that not all people are equally equity
sensitive.
5. Justice and Equity. Equity is closely tied to a desire for fairness
and fairness is normally associated with justice. Four views of
justice relate to equity theory.
a. Distributive Justice. The historical type of justice used in equity theory,
distributive justice is the perceived fairness of the amount and allocation of
rewards among individuals. This form of justice is most strongly related to
satisfaction with outcomes and organizational commitment.
b. Organizational Justice. In this, more recently accepted view
of justice, justice is the employee’s overall perception of
what is fair in the workplace.
1) One key element in organizational justice is perception, and since we’ve
2) Another important element of organizational justice is that its view of
justice is multidimensional. It includes both distributive justice and
procedural justice.
c. Procedural Justice. This view of justice focuses on the fairness of the process
used to distribute rewards. The two key elements of procedural justice are:
2) Explanations: the clear reasons given to a person by managers for the
outcome.
4) In the absence of distributive justice, research has shown that
5) Procedural justice relates most strongly to overall job satisfaction,
employee trust, withdrawal from the organization, job performance, and
citizenship behaviors.
d. Interactional Justice. Defined as the individual’s perception of the degree to
which he or she is treated with dignity, concern, and respect. This is a more
interpersonal view of justice, normally related directly between supervisor
and employee.
H. Equity theory is very closely tied to American pay practices and may not be relevant
in collectivistic or former socialistic cultures in which there is more of a sense of
entitlement or the desire to be paid based on need rather than performance.
I. To promote fairness in the workplace, managers should consider openly sharing
J. Vroom’s Expectancy Theory.
1. This widely accepted theory explains motivation as a coupling
of three beliefs:
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a. effort will lead to a good performance appraisal,
b. good appraisals will lead to organizational rewards, and
2. The Three Key Relationships:
a. Effort-Performance Relationship.
2) If the employee believes that effort will not result in successful
performance or that the performance will not be accurately reflected in
the performance appraisal, little effort will be expended.
b. Performance-Reward Relationship.
1) The degree to which the individual believes that performing at a
particular level will lead to the attainment of a desired outcome. Unless
the relationship between strong performance appraisals and rewards is
clear, little effort will be expended to achieve those high appraisal marks.
c. Rewards-Personal Goals Relationship.
1) The degree to which organizational rewards satisfy an individual’s
2) Unless organizational rewards are tailored to individual employee wants
and needs, they will not be very motivational and little effort will be
expended.
d. While the research results are mixed, there is reasonable support for this
theory.
1) It may be considered somewhat idealistic, considering the current
realities of the workplace.
2) This theory may explain why such a large portion of the workforce
exhibits low levels of effort in carrying out job responsibilities as most
companies do not reward for performance.
V. IMPLICATIONS FOR MANAGERS
A. An important consideration for managers when reviewing
these motivational theories is to determine their relevance,
which outcomes they are measuring or influencing, and their
relative predictive power.
1. Need Theories (Maslow, Hertzberg, and McClelland). In general, need theories
2. Self-determination Theory and Cognitive Evaluation Theory. Research shows
3. Goal-Setting Theory. This theory is very effective in explaining the effect of clear
and difficult goals and productivity.
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4. Equity Theory/Organizational Justice. While this theory does address a number
5. Expectancy Theory. A relatively powerful tool to explain employee productivity,
absenteeism, and turnover. However, it may not be directly applicable as many
of its assumptions, similar to those of the rational model of decision-making, are
not very realistic.
B. Overall, motivation theories of the most research, and the most recent support,
probably deserve the most attention by managers. Fortunately, these theories
(goal-setting, organizational justice, and expectancy) do contain within them
practical suggestions for how to make workplaces more motivating.
VI. Keep in Mind
A. Make goals specific and difficult.
B. Motivation can be increased by raising employee confidence in
their own abilities (self-efficacy).
C. Openly share information on allocation decisions, especially when the outcome is
likely to be viewed negatively.
VII. Summary
Discussion Questions
1. Describe the three key elements of motivation.
2. Describe one of the four early theories of motivation and evaluate its applicability
today.
3. Describe the relationship between goal-setting theory and self-efficacy theory.
4. Explain why organizational justice can be considered a refinement of equity theory.
5. Describe the key relationships in expectancy theory.
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a. Effort-Performance Relationship. Defined as the probability perceived by
the individual that exerting a given amount of effort leads to successful
performance. If the employee believes that effort will not result in
6. How are motivational theories culturally bound?
Answer: The motivational theories described in the text were created out of the U.S.
culture and significantly reflect its values. For instance, both goal setting and
Exercises
1. Self-analysis. After reviewing all of the motivational theories of this chapter, select
the one you believe to be the most accurate in describing human behavior. Justify
your selection and describe how the motivational theory would explain the actions
you have taken in your own life.
2. Web Crawling. Using your favorite search engine, find webpages that relate to
McGregor’s Theory X and Theory Y. Read five of the most interesting pages. What
overall impressions do you get on the perceived validity of this theory on those
pages? Did everyone explain the theory in the same way? What may have caused
the differences if there were any?
3. Teamwork. In small groups, discuss the motivations that each of you had when you
made the decision to attend this college and this class in particular. Were they the
same motivations? What motivates you to expend more effort in this class? What
motivates you to continue to attend college and expend the effort necessary to
graduate?
What motivational suggestions would your team make to your professor or the
college administrators to increase the likelihood of student performance, that is,
successful graduation or increased study?
4. Analyzing Your Organization (Cumulative Project). Discuss with your manager the
various motivational theories outlined in this chapter. Interview the manager to
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determine his or her beliefs regarding the validity of each of these theories. How
might these beliefs affect organizational effectiveness? Be prepared to present your
findings either orally in class or as a paper.
5. An Application of Motivation—MBO. Instructor notes: The goal here is to help
students apply MBO. The emphasis should be on creating measurable realistic
objectives. You may wish to use this as part of your grading for the course by
holding the students accountable for their objectives at the end of the term.
Review the principles of MBO with the class. Carefully describe the nature of
Suggested Assignment: