Chapter Outline

• Defining Motivation
• Needs Theories of Motivation
• Process Theories of Motivation
• Responses to the Reward System
• Creating a Motivating Workplace: Rewards and Job
Design
• Evaluating the Use of Rewards in the Workplace

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-2
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 Theories of Motivation
1. What is motivation?
2. How do needs motivate people?
3. Are there other ways to motivate people?
4. Do equity and fairness matter?
5. How can rewards and job design motivate
employees?
6. What kinds of mistakes are made in reward
systems?

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-3
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 What Is Motivation?

• Motivation
– The intensity, direction, and persistence of effort
a person shows in reaching a goal:
• Intensity: How hard a person tries
• Direction: Where effort is channelled
• Persistence: How long effort is maintained

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-4
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 Theory X and Theory Y
• Theory X
– Assumes that employees dislike work, will attempt to
avoid it, and must be coerced, controlled, or threatened
with punishment if they are to perform.
• Theory Y
– Assumes that employees like work, are creative, seek
responsibility, and can exercise self-direction and self-
control.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-5
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 Motivators
• Intrinsic Motivators
– A person’s internal desire to do something, due
to such things as interest, challenge, and personal
satisfaction.
• Extrinsic Motivators
– Motivation that comes from outside the person
and includes such things as pay, bonuses, and
other tangible rewards.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-6
Copyright © 2007 Pearson Education Canada
 Needs Theories of Motivation

• Basic idea
– Individuals have needs that, when unsatisfied,
will result in motivation
• Maslow’s Hierarchy of Needs Theory
• ERG Theory
• McClelland’s Theory of Needs
• Motivation-Hygiene Theory

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-7
Copyright © 2007 Pearson Education Canada
 Maslow’s Hierarchy of Needs
• Physiological
– Includes hunger, thirst, shelter, sex, and other
bodily needs.
• Safety
– Includes security and protection from physical
and emotional harm.
• Social
– Includes affection, belongingness, acceptance,
and friendship.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-8
Copyright © 2007 Pearson Education Canada
 Maslow’s Hierarchy of Needs
• Esteem
– Includes internal esteem factors such as self-
respect, autonomy, and achievement, and
external esteem factors such as status,
recognition, and attention.
• Self-actualization
– The drive to become what one is capable of
becoming; includes growth, achieving one’s
potential, and self-fulfillment.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-9
Copyright © 2007 Pearson Education Canada
 Exhibit 4-1

Self-
actualization
Esteem

Social

Safety

Physiological

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-10
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 Alderfer’s ERG Theory

• Existence
– Concerned with providing basic material
existence requirements.
• Relatedness
– Desire for maintaining important interpersonal
relationships.
• Growth
– Intrinsic desire for personal development.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-11
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 McClelland’s Theory of Needs

• Need for achievement

– The drive to excel, to achieve in relation to a set of
standards, to strive to succeed.
• Need for power
– The need to make others behave in a way that they would
not have behaved otherwise.
• Need for affiliation
– The desire for friendly and close interpersonal
relationships.
Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-12
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 Herzberg’s Motivation-Hygiene
Theory
• Hygiene factors – the sources of dissatisfaction
– Extrinsic factors (context of work)
• Company policy and administration
• Unhappy relationship with employee’s supervisor
• Poor interpersonal relations with one’s peers
• Poor working conditions

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-13
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 Herzberg’s Motivation-Hygiene
Theory
• Motivators – the sources of satisfaction
– Intrinsic factors (content of work)
• Achievement
• Recognition
• Challenging, varied, or interesting work
• Responsibility
• Advancement

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-14
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Comparison of Satisfiers and Dissatisfiers

Source: Reprinted by
permission of Harvard
Business Review. An exhibit
from Frederick Herzberg,
“One More Time: How Do
You Motivate Employees?”
Harvard Business Review 81,
no. 1 (January 2003), p. 90.
Copyright © 1987 by the
President and Fellows of
Harvard College; all rights
reserved.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-15
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 Exhibit 4-2 Contrasting Views of
Satisfaction and Dissatisfaction

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-16
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Criticisms of Motivation-Hygiene Theory

• The procedure that Herzberg used is limited by its

methodology.
• The reliability of Herzberg’s methodology is
questioned.
• Herzberg did not really produce a theory of motivation.
• No overall measure of satisfaction was used.
• The theory is inconsistent with previous research.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-17
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 Exhibit 4-3 Relationship of Various
Needs Theories
Maslow Alderfer Herzberg McClelland
Self-Actualization
Growth Motivators Need for Achievement
Esteem
Need for Power
Affiliation Relatedness
Hygiene
Need for Affiliation
Security Factors
Existence
Physiological

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-18
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 Summary: Hierarchy of Needs
– Maslow: Argues that lower-order needs must be satisfied
before one progresses to higher-order needs.
– Herzberg: Hygiene factors must be met if person is not to be
dissatisfied. They will not lead to satisfaction, however.
Motivators lead to satisfaction.
– Alderfer: More than one need can be important at the same
time. If a higher-order need is not being met, the desire to
satisfy a lower-level need increases.
– McClelland: People vary in the types of needs they have. Their
motivation and how well they perform in a work situation are
related to whether they have a need for achievement, affiliation,
or power.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-19
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 Summary: Impact of Theory
– Maslow: Enjoys wide recognition among practising managers. Most
managers are familiar with it.
– Herzberg: The popularity of giving workers greater responsibility for
planning and controlling their work can be attributed to his findings.
Shows that more than one need may operate at the same time.
– Alderfer: Seen as a more valid version of the needs hierarchy. Tells us
that achievers will be motivated by jobs that offer personal
responsibility, feedback, and moderate risks.
– McClelland: Tells us that high need achievers do not necessarily make
good managers, since high achievers are more interested in how they
do personally.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-20
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 Summary: Support and Criticism of
Theory
– Maslow: Research does not generally validate the theory. In
particular, there is little support for the hierarchical nature of
needs. Criticized for how data were collected and interpreted.
– Herzberg: Not really a theory of motivation. Assumes a link
between satisfaction and productivity that was not measured or
demonstrated.
– Alderfer: Ignores situational variables.
– McClelland: Mixed empirical support, but theory is consistent
with our knowledge of individual differences among people.
Good empirical support, particularly on needs achievement.

Chapter 4, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 4-21
Copyright © 2007 Pearson Education Canada