Chapter 14 : Motivation and Performance
Variables affecting Job performance:
Organizational and Social variables
Type of Incentives
Type of Training and Supervision
Characteristics of Organization
Physical and Job variables
Methods of work
Work space and arrangements
Designing and condition of work equipment
Individual (non work) variables
Personality and individual Development:
(Individuals are different because their personality is difference and personality differences affect work behavior).
Personality is the total patterns of thinking; feeling and behaving that constitute the individual’s distinctive method of relating to
According to Chris Argyris, as people mature they display certain characteristics:
1. Increasing self awareness
2. Acceptance of equal or superior relationship to others
3. A tendency to move from dependence towards independence
4. Diversification of behavior patterns
5. An increasing tendency to activity, rather than passivity
6. Deepening and more stable interests
Factors affecting personality differences:
- Authoritarinism - Need of achievement
- Self-esteem - Attitude
- Feedback on performance - controls and standard
- Moderately difficult tasks - levels of risk taking
- Psychological success - challenging goals and achievement
- Commitment - willingness
Motivation (Content theories VS Process Theories)
McGregor’s theory X and theory Y: Theory X---People dislike work and responsibility, they have to be controlled, threatened, punished to
get work done.
Theory Y---Work is as natural as play and rest, they accept responsibility, they give way to consultation
and self growth.
Maslow’s hierarchy of needs:
( A ranked structure of behavior stimulating within individual which explains motivation)
Self actualization (fulfillment of personal potential, freedom, fairness, justice)
Esteem needs (Independence, status, respect, gaining knowledge)
Social needs (relationship, affection, belonging)
Safety needs (security, threat)
Physiological needs (food, cloth, shelter)
Alderfer’s ERG theory:
Need for achievement, Need for power, Need for affiliationp management Power
These needs could be taught from top to lower managers. Entrepreneur
Herzberg’s two factor theory:
There are 2 groups of work related factors.
Hygiene factors (remove dissatisfaction e.g. Salary, Job security, Working conditions, Interpersonal relations)
Motivators (creates satisfaction e.g. Status, growth in job, power authority and responsibility)
Vroom’s expectancy theory:
Motivation shall depend upon expected results of his efforts i.e value attached to an outcome.
F (Force i.e. motivation) = V (valence i.e. strength for preference of outcome) * E (Expectancy i.e. expectation that performance
will lead to outcomes)
Porter and lawler’s model: (extension of expectancy theory)
Valence Force Expectancy
Satisfaction Actual Performance
Importance of Success/Failure
Intrinsic rewards Extrinsic rewards
(interest, enjoyment) (pay, bonus)
Reward of 1/Output of 2 = Reward of 2/ Output of 2
Satisfaction = (atleast fair reward, not maximum reward)
- people compare results and rewards
- people get upset if inequity in rewards
Goal theory: Goals can motivate.
“Members will expend efforts and organization will reward them in exchange”
Coercive contract (returns are inadequate compensation; involuntary contribution)
Calculative contract (returns are defined; voluntary contribution)
Cooperative contract (employees participate also in decision making)
Pay and Job satisfaction
Under Herzberg’s theory, Pay is the most important of all hygiene factors.
Under Expectancy theory, Pay motivates if pay is linked with performance and is valued by individual.
Difficulties in incentive schemes:
No motivation if employee already enjoys good package.
External factors may affect output and reward.
Not suitable in groups
Assessment of satisfaction and moral:
Through Productivity, Absenteeism and Turnover.
Types of incentive schemes:
- performance related pay (PRP) i.e commission
- bonus schemes
- profit sharing e.g opportunity of being member of the company.
Job Design (with parameters of Mintzberg)
“Job design is the process of
determining the specific tasks to be performed (Job specialization),
methods used in performing these tasks (training and indoctrination in organizational values), and
how job relates to other works in organization (regulation of behavior).
Change in job design may be :