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MGSC30H3 Study Guide - Final Guide: Motivation, Merit Pay, Flextime

Management (MGS)
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MGTB23 & MGTB29 Final Exam Chapter Summary
Chapter 5: Motivation
Motivation is the extent to which persistent effort is directed toward a goal.
Needs Theories:
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.

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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.
Process Theories:
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.
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