MNGT1001 Lecture Notes - Lecture 8: Equity Theory, Merit Pay, Productivity Commission
2 Jul 2018
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Motivation and Rewards: Chapter 15.
LO1: What is motivation?
Motivation refers to the forces within an individual that accounts for the level, direction and
persistence of effort expended at work. A highly motivated workforce is indispensable to the
achievement of sustained high-performance results.
A reward is a work outcome of positive value to the individual. Extrinsic reward are externally
administered. They are valued outcomes given to someone by another person. Intrinsic rewards are
self-administered- such as the feeling of competency and control.
Theories of motivation:
Content theories of motivation help us understand human needs.
Process theories of motivation offer additional insights into how people give meaning to
rewards.
Reinforcement theory of motivation focuses attention on the environment as a major source
of rewards.
LO2: What are the different types of individual needs?
Needs are the unfulfilled physiological or psychological desires of an individual. All people have
needs, and engage in behaviours to obtain extrinsic and intrinsic rewards to satisfy these needs.
Needs cause tensions that influence attitudes and behaviours. Good managers and leaders establish
conditions in which people are able to satisfy important needs through their work.
Maslow’s Hierarchy of Needs Theory:
Lower order needs include physiological, safety and social concerns.
Higher order needs include self-esteem and self-actualisation concerns.
The deficit principle states that a satisfied need is not a motivator. People are expected to
act in ways that satisfy deprived needs.
The progression principle states that a need at one level does not become activated until the
next need is already satisfied. People advance through the hierarchy step-by-step.
Maslow’s theory advises managers to recognise that deprived needs may negatively influence
attitudes and behaviours. By the same token, providing opportunities for need satisfaction may have
positive motivational consequences. Higher order self-actualisation needs are served entirely by
intrinsic rewards. The esteem needs are served by both intrinsic and extrinsic rewards. Lower order
needs are served solely by extrinsic rewards.
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The ERG Theory:
The Existence, Relatedness and
Growth (ERG) Theory
collapses Maslow’s five needs
categories into three.
Existence needs are
desires for
physiological and
material wellbeing.
Relatedness needs are desires for satisfying interpersonal relationships.
Growth needs are desires for continued psychological growth and development.
This theory does not assume that lower needs need to be satisfied before higher needs become
activated.
Herzberg’s Two-Factor Theory:
Satisfier factors found in job content, such as sense of achievement, recognition,
responsibility, advancement and personal growth.
Hygiene factors are found in job context, such as working conditions, interpersonal relations,
organisational policies and salary.
Improving hygiene factors can make people less dissatisfied with these aspects of work, but
do not in themselves increase satisfaction.
Herzberg’s advice to managers is still timely; always correct poor context to eliminate actual or
potential sources of job dissatisfaction, and be sure to build satisfier factors into job content to
maximise opportunities for job satisfaction.
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Motivation refers to the forces within an individual that accounts for the level, direction and persistence of effort expended at work. A highly motivated workforce is indispensable to the achievement of sustained high-performance results. A reward is a work outcome of positive value to the individual. They are valued outcomes given to someone by another person. Intrinsic rewards are self-administered- such as the feeling of competency and control. Content theories of motivation help us understand human needs. Process theories of motivation offer additional insights into how people give meaning to rewards. Reinforcement theory of motivation focuses attention on the environment as a major source of rewards. Needs are the unfulfilled physiological or psychological desires of an individual. All people have needs, and engage in behaviours to obtain extrinsic and intrinsic rewards to satisfy these needs. Needs cause tensions that influence attitudes and behaviours.
