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Chapter 4

BUS 272 Chapter Notes - Chapter 4: Performance Appraisal, Job Satisfaction, Motivation

Business Administration
Course Code
BUS 272
Christopher Zatzick

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Chapter 4 – Theories of Motivation
Motivation: process that accounts for an individual’s intensity, direction, and persistence of effort
toward reaching a goal
Intensity – how hard a person tries
Direction – channeling the effort at the right place
Persistence – how long you maintain your effort\
Douglas McGregor’s view of human beings
Theory X: employees dislike work, will attempt to avoid it, and must be coerced, controlled, or
threatened with to achieve goals (negative)
Theory Y: employees like work, are creative, seek responsibility, and will exercise self-direction
and self-control if they are committed to their objectives (positive)
Neither theory fully accounts for employee behavior
Motivation is the result of the individual and the situation interacting
Intrinsic motivators: from person’s internal desire to do something, due to interest, challenge, and
personal satisfaction
When they genuinely care about their work
Extrinsic motivators: from outside the person (e.g. pay,, bonuses, other tangible rewards)
Needs Theories of Motivation – describe the types of need that must be met to motivate individuals
Maslow’s Hierarchy of Needs theory, ERG theory, Herzberg’s two-factor theory, and theory of
Maslow’s Hierarchy of Needs Theory: within every human being there exists a 5 needs
Physiological: hunger, thirst, shelter, and bodily needs (Salary/rewards)
Safety: security and protection from physical/emotional harm (job security)
Social: affection, belongingness, acceptance, and friendship (culture)
Esteem: self-respect, autonomy, and achievement, status, attention (recognition)
Self-actualization: growth, achieving, one’s potential, and self-fulfillment (results)
In order to motivate someone, you have to know what level of the hierarchy a person is on and
try to satisfy needs at that or above level
Separated the needs into different orders
oLower-order needs  physiological, safety needs
Satisfied externally
oHigher-order needs  social, esteem and self-actualization
Satisfied internally
Little research supporting this theory
Clayton Alderger’s ERG Theory: there are three groups of core needs (existence, relatedness, &
-Existence – similar to Maslow’s physiological and safety needs
-Relatedness – similar to Maslow’s social needs
-Growth – similar to Maslow’s esteem needs and self-actualization
A individual could focus on all three need categories simultaneously
Still no empirical research
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Motivation-Hygiene theory: relates intrinsic factors to job satisfaction and associates extrinsic factors
with dissatisfaction
Aka. two-factor theory
Factors that lead to job satisfaction (motivators) are distinct from those that lead to job
dissatisfaction (hygiene factors)
oEliminating factors causing JD does not necessarily motivate
Hygiene factors: conditions such as quality of supervision, pay, company policies, physical
working conditions, relationships w/ others and job security
oDissatisfied or not dissatisfied
Motivating factors: associated w/ the work itself or w/ outcomes directly derived from it
oSatisfied or not satisfied
oherzberg’s procedure is limited by its methodology
oreliability of methodology is questionable
ono overall measure of satisfaction used
ohe assumed there is a relationship between satisfaction and productivity
David McClelland’s Theory of Needs:
Need for achievement (nAch): the drive to excel, to achieve in relation to a set of standards ,
to strive to succeed
oDon’t like high odds because no satisfaction from achieving those goals
Need for power (nPow): the need to make others behave in a way that they would not behave
oThe best managers have a high need for power and affiliation
Need for affiliation (nAff): The desire for friendly and close interpersonal relationships
Of all the need theories, this one has the most research support
oHe argued the 3 needs are subconscious
Process Theories of Motivation: Expectancy Theory, Goal-Setting Theory, and Equity Theory
Expectancy Theory: employees will be motivated to exert a high level of effort when they believe
-That it will lead to good performance
-That good performance will lead to organization rewards (bonus, salary increase,
promotion, etc)
-That the rewards will satisfy employees’ personal goals
Effort-Performance Relationship  expectancy
oIf I give a maximum effort, will it be recognized in my performance appraisal?
oCan be expressed as probability from 0 to 1
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