MGTB23 & MGTB29 Final Exam Chapter Summary
Chapter 5: Motivation
Motivation is the extent to which persistent effort is directed toward a goal.
Maslow – Five levels of human needs including physiological, safety, social, self-esteem,
self-actualization (refer to pyramid).
First three are deficiency needs, last two are growth needs, i.o.w., people are motivated
when the first three are absent and also to achieve the last two after the first three are
Pre-potency principle states that people will be motivated to satisfy a need, once it is
satisfied, people move onto satisfying the next level motivation. Once satisfied a person
cannot go back to satisfy a lower level need
Aldefer’s ERG – Three level of human needs including Existence, Growth and
Relatedness Needs. This theory states that the satisfaction of motivation needs can occurs
in any order or sequence.
McClelland – states that humans have three needs, namely a need to affiliation (nAff),
power (nPow) and achievement (nAch). People will be motivated as long as their job fits
their motivation need. Remember! In the context of the Needs theories, people are diverse in what motivates
them and managers need to appreciate that intrinsic motivation can be identified and
organizations can address either higher or lower order needs.
Expectancy – Motivation = Expectancy (C) x Instrumentality (I) x Valence(V) where
Expectancy is the probability of effort leading to performance, Instrumentality is the
probability that performance will lead to an outcome and Valence is the value a person
attaches to that outcome.
Equity – This theory states that people will be motivated by the extent that they perceive
fairness in the comparison between their own input and outcomes with the inputs and
outcomes of those with whom they compare themselves.
Goal Setting – This theory states that people will be motivated goals are specific,
challenging and accepted. There also needs to be feedback and commitment to goals.
Exhibit 5.7 (pg 170 is important). Goal commitment has been found to be enhanced
through participation, Rewards and Supportiveness. Chapter 6: Applying Motivation
Blue Collar jobs – piece rate payment and wage incentive plans have been found to be
most effective, but causes problems such as lowered quality, differential opportunity,
reducing cooperation, incompatible job design and restriction of production by
White Collar jobs – Merit pay plans (bonuses) have been found to be effective but are
undermined by problems such as low discrimination, small increases and pay secrecy.
Motivating Teamwork – Strategies that have been found to be effective include profit
sharing, employee stock options, gain sharing and skill based pay.
Motivating through Job Design – Design jobs to be intrinsically motivating e.g. Job
Scope and Job Characteristics Model, which states that 5 components (Task identity,
Task Significance, Skill Variety, Autonomy and Feedback) moderated by three factors
(Growth needs strength, KSA’s and Contextual organizational issues) can lead to critical
psychological states which in turn results in increased performance.
Know the formula for the Motivating Potential Score (MPS) only to recognize it. No
calculations will be required.
Methods to increase individual motivation – 5 factors increase individual motivation,
namely; combining tasks, establishing external and internal client relationships,
expanding job vertically, creating work teams and ensuring open feedback channels.
Alternative Work Schedules – Four work schedules have been found to increase
motivation in diverse workforces, including Flex-time, Compressed Workweek, Job
Sharing and Telecommuting. Chapter 9: Leadership
The influence that particular individuals exert on the goal achievement of others in an
Trait Theories – State that leadership is the result of specific straits that are either
genetically-based or environmentally developed or both. Traits such as emotional
intelligence, motivation to lead, personality, intelligence, etc. The Ohio State studies
found that leadership revolved around two traits, namely Consideration for people and
Initiation for Structure (people vs. performance). The Michigan State studies called these
Task-oriented and Employee-oriented.
Fiedler’s contingency Theory states that successful leadership depends on how
favourable the situation is to exerting influence. He designed the Least Preferred
Coworker diagnostic tool where leaders are asked to describe their least preferred
coworker. If the description is overtly positive, then the leader is relationship oriented. If
the description is overtly negative, then the leader is task oriented.
House’s Path-goal Theory states that people are motivated when they know wh