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11 Apr 2012
Commerce 3S03
Chapter 4: Motivation
Motivation: One of the most perplexing, but potentially rewarding aspects of a management role
Myths of Motivation
- Money is not the only effective motivator
- Everyone is motivated by the same things I am
- Punishment does not motivate
- Low performance is always attributable to low motivation
- Lack of motivation stems largely from lazy and apathetic people
Relationship between motivation, ability, and performance
Performance= f (Motivation x Ability x Opportunity
- The multiplicative nature of the equation correctly captures that all 3 aspects are essential to
performance and that one can only modestly compensate for the other
- While ability tends to remain stable over time, motivation and opportunity are more subject to
managerial influence
- Effective motivation strategies always depend on the people involved, their history, and context
Framing Motivation Challenges and Ideas: The Expectancy Theory
- The most encompassing and applicable theory of motivation for this type of practical diagnosis
is the expectancy theory
- Serves as both our starting point for diagnosing and framing motivational challenges, and our
structure for integrating a variety of other motivational models and concepts
- Based on 3 beliefs: expectancy, instrumentality, and valence
Expectancy: The understanding of what performance is desired and the person’s belief that
effort will lead to desired level of performance
Instrumentality: The belief that a given level of performance will lead to specific outcomes
- Instrumentality perceptions can range from zero to certain
- Motivation will be high only when people believe that there are meaningful consequences,
positive or negative, from their efforts (or lack thereof)
- From a managerial perspective, instrumentality beliefs point to the critical importance of linking
rewards directly to desired performance
Valence: The value of a person places on future outcomes
- The most intuitive of expectancy theory elements and is another way of saying “What’s in it for
- People will place different valences on the same outcome
- 2 important ideas of expectancy theory warrant special emphasis
1) The Motivating Force: MF= E x I x V
*High motivation will come only in the case of high levels of all 3 beliefs
2) Always remember that expectancy theory is based on individual’s beliefs and perceptions, not
necessarily on a manager’s beliefs or sometimes-objective reality
- An individual must believe that effort will lead to good performance, believe performance will be
rewarded, and believe the reward will be personally valued
Why Capable People Are Not Motivated
- The expectancy theory is not adequate
- Use the bucket analogy
- When a person’s bucket is full, she optimally motivated, and assuming sufficient ability,
performance will follow
- When a person’s bucket is low, greater managerial effort will be required to fill that bucket
- There are 3 primary faucets or sources available to fill an employee’s motivational bucket:
1) Personal drives
2) Managerial actions
3) The job or work itself
The Person as a Source of Motivation
Maslow’s Hierarchy of Needs
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- Suggests each of us is motivated by 5 basic needs, which can be arranged in a hierarchy from
lower order (physiological) to highest order (self-actualization)
- According to Maslow, only when the lower order needs of survival and physical and emotional
well being are satisfied will we be concerned with the higher order needs of esteem and self-
- If the things that satisfy our lower order needs are taken away, we will no longer be concerned
about the maintenance of our higher order needs
- Is useful in highlighting that not only will be different people be motivated by different needs but
even the same people can have very different needs at various points in time
- Has limitations, and is certainly not a complete prescriptive guide to managing complex
motivation issues
Maslow’s Hierarchy of Needs
Level 5: Self-Actualization needs: Realizing personal potential, self-fulfillment, seeking personal
growth and peak experiences
Level 4: Esteem Needs: Self-esteem, achievement, mastery, independence, status, dominance,
prestige, and managerial responsibility
Level 3: Belongingness and Love needs: Work group, family, affection, and relationships
Level 2: Safety needs: Protection from elements, security, order, law, limits, and stability
Level 1: Biological and Physiological needs: Air, food, drink, shelter, warmth, sex, and sleep
An Equity Approach to Motivation
- Equity refers to worker’s perceptions of the fairness of outcomes they receive on the job
- These personal equity judgments are based on a social comparison by which people compare
what they are getting our of their job (their outcomes) to what they are putting into their job
- Outcomes include pay, fringe, benefits, increased responsibility, and prestige, while inputs may
include hours worked and work quality, as well as education and experience
Potential Actions to Restore Equity
- Behaviorally, workers can increase their outcomes or decrease their efforts to balance the
equity equation
- Perceptually, they may rationalize they weren’t working as hard as they though, thus reducing
the perceived value of their own inputs
Equity Sensitivity
- Those high in equity sensitivity are more outcome-oriented and want more than others for the
same level of inputs.
- Those low in equity sensitivity pay more attention to their inputs and are less sensitive to equity
- Additional findings suggest people who are high in equity sensitivity place a great deal of
importance on extrinsic outcomes such as pay, status, and fringe benefits
- Employees with low equity sensitive place more importance on intrinsic outcomes such as
feelings of personal worth, using one’s abilities, a sense of personal accomplishment
What Managers Need to Do to Maintain Equity
- Keep in mind peoples perceptions or other people’s perceptions
- An understanding of equity theory is why excellent managers do not treat or reward all workers
exactly the same
The Platinum Rule
- Treat others how they wish to be treated
McClelland’s Learned Needs
- People would do well to learnt he predominant needs in themselves and in others in order to
find those roles and situations where success is most likely
- Focuses particularly on 3 needs or motives
- Focuses mainly on achievers- people who perform tasks be cause of a compelling need for
personal achievement
1) Need for Achievement (nAch)
- The drive to excel, to achieve in relation to a set of standards
2) Need for Power (nPow)
- The need to make others behave in a way they would have not behaved otherwise
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