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Human Resource Management (MGT501)
Lesson 31
After studying this chapter, students should be able to understand the following:
A. Explain Motivation
The focus is on managing motivation and outcomes to boost performance, one of the most important roles
of any manager. This chapter explores the elements of motivation and introduces the expectancy model,
discussing individual, job-related, and organizational influences on motivation. In addition, the chapter
investigates how managers can use opportunities and outcomes to manage employee performance on the
A. Motivation
Motivation is the inner drive that directs a person's behavior toward goals. Motivation can be defined as a
process which energizes, directs and sustains human
behavior. In HRM the term refers to person's desire
to do the best possible job or to exert the maximum
More money for
effort to perform assigned tasks. An important feature
unexpected medical expenses
of motivation is that it is behavior directed towards
Goal-directed behavior
Why is motivation important?
Ask for a raise
Motivation is important in getting and retaining
Work harder to gain a promotion
people. Motivation tools act as the glue that links
Look for a higher-paying job
individuals to organizational goals, In addition, make
individuals go beyond the job and be creative.
Need Satisfaction
I. The Motivation Process
More money
In its simplest form, the motivation process begins
with a need, an individual's perception of
a deficiency .For instance, an employee
might feel the need for more challenging
work, for higher pay, for time off, or for
2 .. E m p lloy e e
2  E m p o ye e
the respect and admiration of colleagues.  1 .. E m p llo y e e
3 .. E m p lloy e e
3  E m p o ye e
1  E m p oyee
S e a rrch e s fforr
c hes o
S e llec tt s G o a ll-
See c s Goa-
S ea
IId e n ttiiffiie s
These needs lead to thought processes
W a y s tto S a ttisffy
W a y s o S a is y
D iirec tted
D re c e d
N eeds
These N eeds
that guide an employee's decision to
B e h a v iiorr
B ehavo
Th ese N eeds
satisfy them and to follow a particular
course of action. If an employee's chosen
course of action results in the anticipated
55 . E m p lo yye e
.  E m p lo e e
4 .. E m p llo y e e
4  E m p o yee
out come and reward, that person is likely
6 .. E m p lloy e e
6  E m p o ye e
R ee c evv e sE itth e r
R c e ii e s E ih e r
R eassesses N eed
P e rrffo rrm s
R ee waa rd so rr
w rd s o
to be motivated by the prospect of a   R eD eefsiiecisieenncsiieNs e d
Pe  o m s
D fc
c es
P u n iss h mee n ts
P u n i h m n ts
similar reward to act the same way in the
future. However, if the employee's action
does not result in the expected reward, he or she is unlikely to repeat the behavior. Thus, the reward acts as
feedback mechanism to help the individual evaluate the consequences of the behavior when considering
futures action.
II. Core Phases of the Motivational Process:
1. Need Identification: First phase of motivation process is need identification where the employee feels
his/her some unsatisfied need. The motivation process begins with an unsatisfied need, which creates
tension and drives an individual to search for goals that, if attained, will satisfy the need and reduce the
Human Resource Management (MGT501)
2. Searching Ways to satisfy needs: Second phase is finding the different alternatives that can be used
to satisfy the needs, which were felt in first stage. These needs lead to thought processes that guide an
employee's decision to satisfy them and to follow a particular course of action
3. Selecting Goals: Once if the need is assessed and employee is able to find out the way to satisfy the
need than next phase is selection of goals to be performed.
4. Employee Performance: These needs lead to thought processes that guide an employee's decision to
satisfy them and to follow a particular course of action in form of performance.
5. Consequences of performance Reward/punishments: If an employee's chosen course of action
results in the anticipated out come and reward, that person is likely to be motivated by the prospect of a
similar reward to act the same way in the future. However, if the employee's action does not result in
the expected reward, he or she is unlikely to repeat the behavior
6. Reassessment of Need deficiencies: Once felt need is satisfied through certain rewards in response
to performance than employee reassesses any deficiencies and entire process is repeated again.
III. Motivational Theories
Motivation theories seek to explain why employees are motivated by and satisfied with one type of work
than another. It is essential that mangers have a basic understanding of work motivation because highly
motivated employees are more likely to produce a superior quality product or service than employee who
lack motivation
a. Maslow's Need Hierarchy
Abraham Maslow organized five
major types of human needs into
a hierarchy, as shown in Figure.
The need hierarchy illustrates
Maslow's conception of people
satisfying  their  needs  in  a
specified order, from bottom to
top. The needs, in ascending
The desire for
order, are:
The desire for
a fulfilling life
status and
and to fulfill
one's potential
The desire for
affiliation and
1. Physiological (food, water,
The desire
and shelter.)
for job security
The desire for
2. Safety or security
food, shelter,
(protection against threat
and clothing
and deprivation)
3. Social (friendship,
Maslow's Hierarchy of Needs
affection, belonging, and
4. Ego (independence,
achievement, freedom, status, recognition, and self-esteem)
5. Self-actualization (realizing one's full potential; becoming everything one is capable of being.)
According to Maslow, people are motivated to satisfy the lower needs before they try to satisfy the higher
need. Also, once a need is satisfied it is no longer a powerful motivator. Maslow's hierarchy, however, is a
simplistic and not altogether accurate theory of human motivation. For example, not everyone progresses
through the five needs in hierarchical order. But Maslow makes three important contributions. First, he
identifies important need categories, which can help managers create effective positive rein forcers. Second,
it is helpful to think of two general levels of needs, in which lower-level needs must be satisfied before
higher-level needs become important. Third, Maslow sensitized managers to the importance of personal
growth and self-actualization.
Self-actualization is the best-known concept arising from this theory. According to Maslow, the average
Human Resource Management (MGT501)
person is only 10 percent self-actualized. In other words, most of us are living our lives and working at our
lives and working at our jobs with a large untapped reservoir of potential. The implication is clear: Create a
work environment that provides training, resources, gives people a chance to use their skills and abilities in
creative ways and allows them to use their skills and abilities kin creative ways and allows them to achieve
more of their full potential.
b. Existence Relatedness Growth (ERG) Theory
Alderfer focuses on three needs: existence, relatedness, and growth.  Existence needs are similar to
Maslow's physiological needs, and to the physical components of Maslow's security needs. Relatedness
needs are those that require interpersonal interaction to satisfy the needs for things like prestige and esteem
from others. Growth needs are similar to Maslow's needs for self-esteem and self-actualization.
c. McGregor's Theory-X and Theory-Y
McGregor's Theory-X represented the traditional management view that employees are lazy, was
uninterested in work, and needed to be prodded to perform. In contrast his theory Y viewed employees as
creative, complex, and mature individuals interested in meaningful work. McGregor believed that under the
right circumstances, employees would willingly contribute their ingenuity and their talents for the benefits
of the organization. He suggested that the mangers motivate em-0loyees by giving them the opportunity to
develop their talents more fully and by giving them the freedom to choose the methods they would use to
achieve organizational goals. In McGregor's view the mangers role was not to manipulate employees but to
align their needs with needs of the organization so that employees would regulate their own actions and
performance. These insights lead researches to investigate the origins and processes of motivation more
d. Expectancy Theory
Expectancy theory states that a person's motivation to exert a certain level of effort is a function of three
things: expectancy (E), instrumentality (I), and valance (V). Motivation = E x I x V. "E" is the person's
expectancy that his or her effort will lead to performance, "I" represents the perceived relationship between
successful performance and obtaining the reward, and "V" refers to the perceived value the person attaches
to the reward.
e. Reinforcement Theory
In 1911, psychologist Edward Thorndike formulated the law effect: Behavior that is followed by positive
consequences probably will be repeated. This powerful law of behavior laid the foundation for country
investigations into the effects of the positive consequences, called rein forcers that motivate behavior.
Organizational behavior modification attempts to people's actions.
Four key consequences of behavior either encourage or discourage people's behavior
Positive Reinforcement- applying a valued consequence that increases the likelihood that the
person will repeat the behavior that led to it. Examples of positive reinforcers include
compliments, letters of commendation, favorable performance evaluations, and pay raises. Equally
important, jobs can be positively reinforcing. Performing well on interesting, challenging, or
enriched jobs (discussed later in this chapter) is much more reinforcing, and therefore motivating,
then performing well on jobs that are routine and monotonous.
Negative Reinforcement- removing or withholding an undesirable consequence. For example, a
manager takes an employee (or a school takes a student) off probation because of improved
performance. Frequent threatening memos admonished people to achieve every one of their many
performance goals
Punishment- administering an aversive consequence. Examples include criticizing or shouting at
an employee, assigning an unappealing task, and sending a worker home without pay. Negative
reinforcement can involve the threat of punishment, but not delivering it when employees
perform satisfactorily. Punishment is the actual delivery of the aversive consequence.
Human Resource Management (MGT501)
Extinction ­withdrawing or failing or failing to provide a reinforcing consequence. When this
occurs motivation is reduced and the behavior is extinguished, or eliminated. Examples include
not giving a compliment for a job well done, forgetting to say thanks for a favor, or setting
impossible performance goals so that the person never experiences success. The first two
consequences, positive and negative reinforcement, are positive for the person receiving them:
The person either gains something or avoids something negative. Therefore, the person who
experiences these consequences will be motivated to behave in the ways that led to the
reinforcement. The last two consequences, punishment and extinction, are negative outcomes for
the person receiving them: Motivation to repeat the behavior that led to the undesirable results
will be reduced.
Thus, effective managers give positive reinforcement to their high-performing people and negative
reinforcement to low performance. They also punish or extinguish poor performance and other unwanted
Herzberg's Two-Factor Approach
Herzberg Two-Factor theory divides Maslow's Hierarchy into a lower-level and a higher-level set of needs,
and suggests that the best way to provide motivation for an employee is to offer to satisfy the person's
higher-order needs, ego and self-actualization. Herzberg said that lower-order needs, or hygiene factors, are
different from higher-order needs, or motivators. He maintains that adding more hygiene factors to the job
is a very bad way to motivate because lower-order needs are quickly satisfied.
g. McClelland (Needs for Affiliation, Power, and Achievement) Theory
McClelland agrees with Herzberg that higher-level needs are most important at work. He believes the needs
for affiliation, power, and achievement are most important. He and his associates use the Thematic
Apperception Test to identify a person's needs for achievement, power, and affiliation. People with a high
need for achievement strive for success, are highly motivated to accomplish a challenging task or goal,
prefer tasks that have a reasonable chance for success, and avoid tasks that are either too easy or too
difficult. People with a high need for power enjoy roles requiring persuasion. People with a strong need for
affiliations are highly motivated to maintain strong, warm relationships.
h. Adam's Equity Theory
Adams's equity theory assumes that people have a need for fairness at work, and therefore, value and seek
it. People are motivated to maintain a balance between what they perceive as their inputs or contributions
and their rewards as compared to others. This theory seems to work when people feel they are underpaid,
but inequity due to overpayment does not seem to have the positive effects on either quantity or quality that
Adams's equity theory would predict.
IV. Methods for Motivating Employees for Employee Satisfaction
a. Rewards: People behave in ways that they believe are in their best interest, they constantly look
for payoffs for their efforts. They expect good job performance to lead to organizational goal
attainment, which in turn leads to
satisfying their individual goals or needs.
Organization,  then,  use  rewards  to
motivate people.
C hallllengiing
Cha eng ng
Equ ab e
R ew ards
R ew ards
b. Challenging Jobs: Job design refers to
the number and nature of activities in a
job. The key issue is whether jobs should
be more specialized or more enriched and
G ood W ork
G ood W ork
Suppor ve
non-routine.  Job  design  has  been
Enviironm entt
C o lllleagues
En v ronm en
C o eagues
implemented in several ways.
enlargement assigns workers to additional
same-level tasks to increase the number of
Human Resource Management (MGT501)
tasks they have to perform. Job rotation systematically moves workers from job to job. Job
enrichment means building motivators like opportunities for achievement into the job by making it
more interesting and challenging. Forming natural work groups, combining tasks, establishing
client relationships, vertically loading the job, and having open feedback channels may implement
Job enrichment.
Using Merit Pay: A merit raise is a salary increase, usually permanent, that is based on the
employee's individual performance. It is a continuing increment rather than a single payment like a
bonus. Relying heavily on merit rewards can be a problem because the reinforcement benefits of
merit pay is usually only determined once per year.
d. Using Spot Awards:  A spot award is one given to an employee as soon as the laudable
performance is observed. These awards are consistent with principles of motivation because they
are contingent on good performance and are awarded immediately.
Using Skill-Based Pay: With skill-based pay, employees are paid for the range, depth, and types
of skills and knowledge they are capable of using rather than for the job they currently hold. Skill-
based pay is consistent with motivation theory because people have a self-concept in which they
seek to fulfill their potential. The system also appeals to the employee's sense of self-efficacy
because the reward is a formal and concrete recognition that the person can do the more
challenging job well.
Using Recognition: Some employees highly value day-to-day recognition from their supervisors,
peers and team members because it is important for their work to be appreciated by others.
Recognition helps satisfy the need people have to achieve and be recognized for their achievement.
g. Using Job Redesign: Job design refers to the number and nature of activities in a job. The key
issue is whether jobs should be more specialized or more enriched and nonroutine. Job design has
been implemented in several ways. Job enlargement assigns workers to additional same-level tasks
to increase the number of tasks they have to perform. Job rotation systematically moves workers
from job to job. Job enrichment means building motivators like opportunities for achievement into
the job by making it more interesting and challenging. Job enrichment may be implemented by
forming natural work groups, combining tasks, establishing client relationships, vertically loading
the job, and having open feedback channels.
h. Using Empowerment:  Empowerment means giving employees the authority, tools, and
information they need to do their jobs with greater autonomy, as well as the self-confidence to
perform new jobs effectively. Empowerment boosts employees' feelings of self-efficacy and
enables them to use their potential more fully.
Using Goal-Setting Methods: People are strongly motivated to achieve goals they consciously
set. Setting goals with employees can be a very effective way of motivating them. Goals should be
clear and specific, measurable and verifiable, challenging but realistic, and set with participation.
Using Positive Reinforcement: Positive reinforcement programs rely on operant conditioning
principles to supply positive reinforcement and change behavior. Experts claim it is better to focus
on improving desirable behaviors rather than on decreasing undesirable ones. There are a variety
of consequences including social consequences (e.g., peer approval or praise from the boss),
intrinsic consequences (e.g., the enjoyment the person gets from accomplishing challenging tasks),
or tangible consequences (e.g., bonuses or merit raises).
k. Using Lifelong Learning: Lifelong learning can be used to deal with problems of downsizing
and employee commitment, and to counterbalance their negative effects. It provides extensive
continuing training and education, from basic remedial skills to advanced decision-making
techniques, throughout the employees' careers, which provide employees the opportunity to boost
Human Resource Management (MGT501)
their self-efficacy and self- actualization.
V. Challenges of motivating employees:
Motivation is not a simple subject; no two people respond to precisely the same set of motivators. Mangers
face several pressing issues that complicate the challenges of motivating their employees.
a.  Workforce Diversity: the composition of the workforce becoming less homogeneous.
This diversity complicates the task of motivating employees because mangers must
consider so many more motivational variables
b. Organizational Restructuring: The wave of mergers and acquisitions is followed by
massive layoffs that represent another challenge. Employees who have been let go for
reason unrelated to their performance may question whether initiative and creativity are
now less important than political survival skills. Moreover, employees who have seen
colleagues' loss their jobs may concentrate on keeping their own jobs and may stop taking
risks ­risk that might lead to new products, new markets, or other advances.
c.  Fewer Entry-level Employees: The labor force is growing at half the rate of the previous
decade; the number of qualified candidates for most entry-level positions is decreasing. In
such a tight labor market, mangers face new challenges in attracting; retaining and
motivating qualified entry-level employees. Managers must also determine how to motivate
under qualified candidates to upgrade their skills and education so that they can handle the
entry-level tasks.
d. An oversupply of managers: In the middle and top ranks of management, quite different
phenomenon is causing organizational headaches. The number of senior management
positions is far fewer than the number of deserving candidates, and the trend toward flatter
organizations only makes matters worse for people who want to climb the hierarchal
As managers in organizations come to grips with these increasingly urgent challenges, they must understate
the forces that derive employees' actions, how employees channel their actions towards goals, and how high
performance behavior can be sustained.
Key Terms
withdrawing or failing or failing to provide a reinforcing consequence.
administering an aversive consequence.
Positive Reinforcement
applying a valued consequence that increases the likelihood that the
person will repeat the behavior that led to it.
Motivation is the inner drive that directs a person's behavior toward goals.
Table of Contents:
  1. INTRODUCTION TO HRM:Growing Importance of HRM, Road Map of the Course
  2. ESSENTIALS OF MANAGEMENT:Concepts and Essential of Management, Managerís Roles
  3. ORGANIZATION AND COMPONENTS OF ORGANIZATION:Open versus Closed Systems, The Hawthorne Studies
  4. PEOPLE AND THEIR BEHAVIOR:Why to work in organizations?, The Goals of Organizational Behavior
  5. INDIVIDUAL VS. GROUP BEHAVIOR:What Are Roles?, Problem solving Team
  6. PERSONNEL MANAGEMENT TO HUMAN RESOURCE MANAGEMENT:Records and Administration, Competitive Advantage
  7. HRM IN A CHANGING ENVIRONMENT:Productivity, New Trends at Work Place
  8. How organization Cultivate a Diverse Workforce, STEPS TOWARD MANAGEMENT OF DIVERSITY
  9. FUNCTIONS AND ENVIRONMENT OF HRM:Compensation and Benefits, Safety And Health, Interrelationships of HRM Functions
  10. LINE AND STAFF ASPECTS OF HRM:Authority, Line versus Staff Authority, Staff Manager
  11. LEGAL CONTEXT OF HR DECISIONS:Doing the Right Thing, Affirmative Action, Unintended Consequences
  12. HUMAN RESOURCE PLANNING (HRP):Benefits of HR Planning, Forecasting Human Resource Availability
  13. STRATEGIC PLANNING AND HRIS:HRís Strategic Role, Human Resource Information System, Common HRIS Functions
  14. JOB ANALYSIS:Purposes of the job Analysis, Questions Job Analysis Should Answer
  15. JOB ANALYSIS:Methods of Collecting Job Analysis Information, Observation, Source of Data
  16. JOB ANALYSIS (CONTD.):SURPLUS OF EMPLOYEES FORECASTED, Diversity through Recruiting Efforts
  17. SOURCES OF RECRUITMENT:ALTERNATIVES TO RECRUITMENT, Quantity of the Applicants, Quality of the Applicants
  18. SELECTION:Initial Screening, Advantages of Successful Screening
  19. SELECTION TESTS:Characteristics of Properly Designed Selection Tests, Guidelines for Conducting an Interview
  20. SELECTION PROCESSÖ CONTD:Background Investigations, Physical Exam, Selecting Managers
  21. SOCIALIZATION:Compensation and Benefits, Team Membership, Stages in socialization Process, Training and Development Trends
  22. TRAINING AND DEVELOPMENT:Learning, Phases of Training, Why Transfer of Training Fails
  23. MAXIMIZING LEARNING:Following up on Training, Repetition, Feedback, Purposes of T & D
  24. CAREER MANAGEMENT:Individual career planning, Career Planning and Development Methods
  25. PERFORMANCE:Determinants of Job Performance, Why is performance measured?, Performance Management
  28. COMPENSATION SYSTEM:Pay, Job Pricing, Compensation: An Overview, Compensation Surveys
  29. BENEFITS:Total Compensation, Discretionary Benefits (Voluntary), Workplace Flexibility
  30. ROLE OF MONEY IN PERFORMANCE OF EMPLOYEES:Types of Pay-for-Performance Plans, Empower Employees
  31. MOTIVATION:The Motivation Process, Motivational Theories, Challenges of motivating employees
  32. OCCUPATION, HEALTH & SAFETY:Physical Conditions, Accident Investigation, Smoking in The work place
  33. STRESS MANAGEMENT:Symptoms of Stress, Managing Stress,
  34. COMMUNICATION IN ORGANIZATION:Burnout, Social Support at Work & Home, Communication in organization, Meetings
  35. TRADE UNIONS:Collective Bargaining, The HRM Department in a Nonunion Setting, Phases of Labor Relations
  36. CONFLICT AND NEGOTIATION:Transitions in Conflict Thought, Individual Conflict Management Styles
  37. POWER AND POLITICS:Sources of Power, Advantages and Disadvantages of PowerPower and Politics in Context
  38. EMPLOYEE RIGHTS AND DISCIPLINE:Contractual Rights, Management Rights, Disciplining Employees,
  39. DISCIPLINE (CONT...):Factors to Consider when Disciplining, Disciplinary Guidelines, Employee Separations
  40. LEADERSHIP:The Leaderís Behavior, Situational Theories of Leadership, Becoming a Leader
  41. REVISION (LESSON 12-21):Plans, Job Specification, Human resource planning, Selection Process, Corporate Culture
  42. REVISION (LESSON 22-26):Training, Case Study Method, Training, Performance
  43. REVISION (LESSON 27-35):Classification Method, Compensation, Empowerment, Mediation
  44. INTERNATIONAL DIMENSIONS OF HRM:Global Corporation, Type of staff members, Approaches to Global Staffing
  45. CONCLUSION & REVIEW:Strategies for Gaining Competitive Advantage, High-performance Work System