PROCESS THEORIES OF MOTIVATION

People are not only motivated by needs. They go through a decision making process that
explores the validity of goals that they are pursuing examining the extent to which they are
likely to achieve objectives by pursuing a particular course of action; compares their situation
with those of others; investigates the differences between what they get out or in some way
considers the benefits associated with devoting energy to a particular set of activities at work.

These theories describe the process by which behaviour is initiated, guided, sustained and
stopped (Gibson et al 2000).

The process theories emphasize how and by what goals individuals are motivated. They
attempt to identify the relationships among the dynamic variables which make up motivation.
They provide a further contribution to our understanding of the complex nature of work
motivation.

Significant contributors to the process theories of motivation include;

 Expectancy theory – Vroom and Porter and Lawler

 Equity theory- Adams
 Goal Theory- Locke

1. EXPECTANCY THEORY

Basic to the process theories of motivation is the concept of expectancy .i.e. what is a person
anticipating is likely to occur as a result of this behaviour.

There are a number of expectancy theories of motivation. The basic argument of expectancy
theory is that the strength of an individual’s motivation to act and exert effort is dependent
upon the person’s perceived probability that the behaviour will result in a desired outcome
and on the value of the outcome of the person (Lawler 1994, Mckenna , 2000).

The most well-known expectance theories are by Vroom and the other by Porter and Lawler.

i. VROOM’s EXPECTANCY THEORY (1964)

It is a cognitive process theory of motivation. One of the most widely accepted explanations
of motivation is offered by Vector Vroom in his Expectancy Theory. The theory is founded
on the basic notions that people will be motivated to exert a high level of effort when they
believe there re relationships between the effort they put forth, the performance they achieve
and the outcomes/rewards they receive.

This theory is specifically for motivation in the workplace and is referred to as Valance
Theory or VIE Theory after the core concepts used in explaining the theory, valence,
instrumentality and expectancy.

The key construct in the expectancy theory of motivation are:

1. Valence. Means the value/ importance or strength one places on a particular

outcomes or reward.
2. Expectancy. It relates efforts to performance. The belief that effort leads to
performance. (For example if I try harder, I can do better).
3. Instrumentality. It is the belief that performance is related to rewards. Belief that
performance is related to rewards. (For example if I perform better, I will get more
pay).

It can also be expressed in the form of an equation

Motivation = Valance x Expectancy x Instrumentality

Being the model multiplicative in nature, all the three variables must have high positive
values to imply motivated performances choice. If any one of the variables approaches to
zero level, the possibility of the motivated performance also touches zero level.

The argument is that it is the person’s belief about the relationships between effort,
performance and reward that is important rather than the actual nature of the relationship. A
person’s motivation increases if he believes that effort leads to performance and that
performance leads to rewards, assuming the person wants rewards. However, a motivational
problem arises when there is a disbelief in a relationship between performance and rewards
and lack of desire for the rewards offered. The solution is to alter these beliefs. For example
an insurance broker who does not believe greater sales will lead to overall high commission
(rewards), might be shown computationally or graphically that a direct relationship does
exist.
The expectancy theory notes that where there is a clearly recognized goal and a relationship
between performance and outcome, motivation (M) is a function of the expectancy (E) of
attaining a certain outcome in performing multiplied by the value (V) of that outcome for the
performer.

It can as well be expressed as follows;

M∞ E x V

When an outcome is highly valued and a worker has high expectations of the outcome being
realized he will make the necessary greater effort in his work.

To explain the theory in more detail

At any point in time, an individual has preferences among outcomes which Vroom (1964)
calls valence. The individual may prefer attaining an outcome to not attaining it (positively
valent) prefer not to attaining it to attaining it (negatively valent), or be indifferent towards
attaining it or not. The extent to which these outcomes (called first level outcomes related to
performance) are desired or avoided is based on the anticipated satisfaction or dissatisfaction
associated with their consequences. These consequences are called second level, outcomes or
rewards, which are related to personal needs.

In other words, motivation is a multiple function of the perceived expectancy that a given
behavioral act will be followed by a particular first level outcome and the valence of the
outcome. The valence of the first level outcome includes the instrumentalities and valences of
the second level outcomes (Nadler & Lawler 1983).

According to David Naler and Edward Lawler the expectancy/valence approach is based on
four assumptions about behavior in organizations.

1. Behavior is determined by a combination of forces on the individual and on the

environments. For example, people react in different ways to the work environment as
a result of different needs and expectations formed by past experience.
2. Individuals make conscious decisions about their own behavior in organisations e.g.
how much effort they will put into their jobs.
3. Individuals have different needs, desires and goals. Only by understanding individual
needs can one expect to know how best each individual can be motivated.
4. Individuals decide how they will behave to achieve a desired result.

An individual’s decision to make the effort to achieve a certain outcome is influenced by:
  The value of the reward. This includes intrinsic outcomes experienced i.e. increased
self-esteem, satisfaction for a good job and extreme outcome such as bonuses, praise,
and promotion.
 The individual’s expectations of how difficult it will be to perform successfully.

ii. PORTER AND LAWLER’S EXPECTANCY THEORY

The model suggested by Porter and Lawler encounters some of the simplistic traditional
assumptions made about the positive relationship between satisfaction and performance. In
fact, Porter and Lawler’s theory is an improvement over Vroom’s expectancy theory. They
posit that motivation does not equal satisfaction or performance.

They proposed a multivariate model to explain the complex relationship that exists between
satisfaction and performance. What is the main point in Porter and Lawler’s model is that
effort or motivation does not lead directly to performance. It is, in fact, facilitated by abilities
and traits and by role perceptions. Ultimately, performance leads to satisfaction.

Components of Porter and Lawler’s theory

Effort: It refers to the amount an employee exerts on a given task. How much effort an
employee will put in a task is determined by two factors;

(i) Value of reward, and

(ii) Perception of effort reward probability.

Performance: The amount of performance is determined by the amount of labour and the
ability and role perception of the employee. Thus if an employee possess less ability and/or
make wrong role perception, his/her performance may be low in spite of his putting in great
efforts.

Satisfaction: The level of satisfaction depends upon the amount of rewards one achieves.
Performance leads to satisfaction if the amount of actual rewards met or exceed perceived
equitable rewards, the employee will feel satisfied. On the contrary, if actual rewards fall of
perceived ones, he/she will be dissatisfied.

Application of expectancy theory

Expectancy theory assists managers in understanding the cognitive thought processes of an

individual at work and the way these influence individual behaviour. The challenge is for the
manager to influence what individuals believe will happen in the future. By doing this that
manager is able to influence performance through the cognitive thought process of the
individual.

The expectancy model presents managers with a number of clear implications on how to
motivate subordinates. On the basis of expectancy theory, managers need;
 To know what rewards are valued by each subordinate, to ensure that the work
outcomes (performance) valued by individuals are also valued by the organization, in
that they contribute to the organization meeting its strategic objectives. This can be
done simply by asking the worker what reward he desires more.
 Select the person with the right characteristics/traits and abilities for the right job and
clarify role expectations to ensure a match between the individual and the
requirements of the job. Understand the individual requirements of the job.
Understanding the formation of the psychological contract between an individual and
an organization and orientation of an individual into the job is important.
 To explain clearly the performance levels and not for them to be impossible. If the
levels cannot be reached, there is no motivation. Design the job so that it poses
challenge, variety and autonomy (see Hertzberg’s theory and job enrichment theory)
 Ensure that the person has the ability to perform the job as well as the necessary
support in the form of resources and that there are no constrains or organizational
obstacles. The manager needs to be able to identity training needs and ensure that
appropriate skills development and education of individuals occurs. Relevant skills
development legislation needs to be considered when managing the development of
individuals in the workplace.
 Clarify the relationship between effort and performance (expectancy). Define
performance in terms of objectives and standards (see goal – setting theory), and
clarify whether individuals feel they can attain the objectives establish how
performance will be measured.
 Influence instrumentality by clarifying the performance – reward relationship (see
reinforcement theory). Communicate rewards contigent upon performance, and then
confirm the performance – reward expectation by actually rewarding the desired
performance when it occurs. This will result in the belief that hard work and good
performance results in the rewards preferred.
 Align rewards (see need theories) with what individuals value (valence). Understand
and identify the second – level outcomes or needs, both intrinsic and extrinsic, of
individuals (see need theories).
 Use rewards to encourage and maintain required behaviour and eliminate behaviour
that is not desired (see reinforcement theory). Also utilize punishment (discipline) and
extinction to obtain the required behaviour.
  Allocate rewards fairly (see equity theory). Rewards with high valence should be used
as incentives.
 To give the rewards as quickly as possible once the performance level has been
reached and to examine if there are factors that discourage performance towards the
attainment of rewards.
 To know how to make the reward adequate
 Provide feedback (see job enrichment theory).
 To know that people are rational and calculative.

Criticisms of Vroom’s expectancy theory

(i) Critics like Potter and Lawler on Vroom Expectancy theory they labeled it as
theory of cognitive hedonism (pleasure seeking) which proposes that individual
cognitively chooses the course of action that leads to the greatest degree of
pleasure or the smallest degree of pain.
(ii) The assumption that people are rational and calculating makes the theory
idealistic. On the other hand however, Individuals are not always self-centered and
calculative. Sometimes individuals are not calculative.
(iii) The expectancy theory does not describe individual and situational differences.

But the valence or value people places on various rewards vary. For example one employee
prefers salary benefits, whereas another person prefers to just the reverse. The valence for the
same reward varies from situation. In spite of all of these critics, the greatest point in the
expectancy theory is that it explains why a significant segment of workforce exerts low levels
of efforts in carrying out job responsibilities.

2. STACY ADAMS THEORY OF INEQUITY (1963)

This theory (Adams 1963) describes the process an individual follows in determining the
equity of treatment in the workplace. Equity theory is concerned with the perceptions people
have about how they are being treated compared with others.

To be dealt with equitably is to be treated fairly in comparison with another group of people
(a reference group) or a relevant other person. Equity involves feelings and perceptions and is
always a comparative process. It is not synonymous with equality, which means treating
everyone the same, since this would be inequitable if they deserve to be treated differently.
Equity theory states, in effect, that people will be better motivated if they are treated
equitably and demotivated if they are treated inequitably. It explains only one aspect of the
process of motivation and job satisfaction, although it may be significant in terms of morale.

Unlike other theories, which explain motivation in terms of intrapersonal comparisons

(‘what I now have compared to what I want’), equity theory explains motivation in terms of
interpersonal comparisons (‘what I have compared to what other have’) (Tosi et al, 1994).
This process of comparison is about comparing what others put into their work (personal
costs in terms of effort, time, skills and education) with what you put in and what you get out.
The outcome of this social comparisons process is perceptions of equity or inequality.

As suggested by Adams (1965), there are two forms of equity:

 i) Distributive equity, which is concerned with the fairness with which people feel
they are rewarded in accordance with their contribution and in comparison with
others; and
ii) Procedural equity, or procedural justice, which is concerned with the perceptions
employees have about the fairness with which procedures in such areas as
performance appraisal, promotion and discipline are being operated. Interpersonal
factors are closely linked to feelings about procedural fairness

Five factors that contribute to perceptions of procedural fairness have been identified by
Tyler and Bies as:

1. Adequate considerations of an employee’s viewpoint;

2. Suppression of personal bias towards the employee;
3. Applying criteria consistently across employees;
4. Providing early feedback to employees concerning the outcome of decisions;
5. Providing employees with an adequate explanation of the decision made.

Again, there are two forms of inequality based on distributive equity;

i) An individual may experience feeling underpayment inequality. This is where the

person feels that he or she gets out than someone else does relative to what they
both put in (Tosi et al)
ii) Alternatively, feelings of overpayment inequality may be experienced. This is an
individual feels that he or she gets more out than someone else, relative inputs.

Equity theory is based on the principle that a major factor in job motivation is the individual’s
evaluation of the equity or fairness of the reward (such as effort and skill) and the job rewards
(such as pay and promotion) compared to the rewards others are receiving for similar job
inputs.

Wages and salaries are the easiest factors to consider and hence people compare what they
are being paid for their efforts with what others doing similar tasks get for theirs. When there
is a perceived inequity, a state of tension arises. The worker’s reaction is to adjust his
behavior.

Where an individual perceives inequity, the person is motivated to behave in a manner that
reduced the feelings of inequality to restore a feeling of equality basic behavioral responses
of an individual to feelings of inequality including following (Schermerhorn, Hunt & Osborn
1994 Robbins 2001).

 Adjusting work inputs (reducing the effort being put into work)- individual may lower
his/her input by putting in less effort or time if they feel they are being treated worse
 off than others. However, if they feel they are being treated better than others they
may increase inputs by working harder.
 Adjusting outcomes-if people feel that their outcomes are less than other people in the
same situation they may try to increase their outcomes by appealing to their bosses,
supervisors/trade unions. They may bring their inequity to public attention in order to
restore a level of equity i.e. complaining to management about the compensation
package or lodging a grievance.
 Leaving the situation if the inequality cannot be resolved (resigning to find fairer
situation, a less extreme option is absenteeism).

 Changing other’s outcomes- efforts to make other’s outcomes be the same with yours.
 Justifying the inequality by rationalizing the inputs and outputs (the other is/are more
qualified than I am).
 Taking action against the other(s); addressing the issue (taking up the issue with the
person(s) and persuading them to take on a greater workload or put in longer hours.

 To use a different person as a comparison other- where perceptions can be changed

one may restore feelings of inequity by ceasing to consider certain individuals as
comparable to them. For example someone may be picked for special treatment (e.g.
the boss’s son or girlfriend)- the idea is that you stop comparing yourself with them
and start realizing the special circumstances surrounding this individual.

Application of equity theory

Equity theory provides some insight into the management of performance organizations and
into the determination of the remuneration for a job. Management need to understand the
process of individual perceptions and acknowledge individual will form perceptions of equity
based on comparisons will affect work behaviour of visible rewards in particular. These
perceptions will affect work behaviour the manager needs to manage the allocation, careful
communicate appraisal of performance and the nature of the reward made. A policy on
compensation and rewards will assist managers in allocating rewards and assist employees in
understanding the process and allocation of rewards.
 3. GOAL SETTING THEORY

Unlike reinforcement theory which focuses on the consequences of behaviour, goal setting
theory (Locke & Latham 1984) argues that the sources of work motivation are conscious
intentions (goals or objectives a person aims to accomplish)

Goal-setting theory is the proposition that specific goals increase performance, and difficult
goals, when accepted, result in higher performance than easy goals.

Robbins (2001:177) points out that ‘there is little dispute that appear and difficult goals lead
to higher levels of employment performance.’

Principles underlying the theory include:

 Specific goals direct action more reliably than vague or general goals.
 Goals specify results in clear expectations
 The harder or more challenging the goal, the better the results performance.

What is known about goals as motivators?

1. Intention to work toward a goal is a major source of job motivation. Specific and
challenging goals are superior motivating forces. Specific hard goals produce a higher
level of output than do generalized goals.
2. Is there a contradiction between achievement motivation and goal setting? No, as the
following points explain:
a) Goal-setting theory deals with people in general; achievement theory is based
only on people who have a high need for achievement. Difficult goals are still
recommended for the majority of employees.
b) The conclusions of goal-setting theory apply to those who accept and are
committed to the goals. Difficult goals will lead to higher performance only if
they are accepted.
3. Will employees try harder if they participate in the planning and formulation of goals?
a) It cannot be said that participation is always desirable.
b) However, participation is probably preferable to assigning goals whenever a
manager expects resistance.
4. Will people do better when they get feedback on how well they are progressing
toward their goals?
a) Feedback acts to guide behavior
b) Self-generated feedback has been shown to be a more powerful motivator than
externally generated feedback.
 5. What four contingencies exist in goal-setting theory?
a) Feedback influences the goal-performance relationship.
b) Goal commitment is most likely to occur when goals are made public, when the
individual has an internal locus of control, and when the goals are set by the
individual rather than assigned.
c) Self-efficacy is an individual’s belief that he or she is capable of performing a
task.
d) National culture is a contingency that also affects goal-setting theory.
6. One may conclude that intentions, as defined by hard and specific goals, are a
powerful motivating force in goal-setting efforts.
a) In the proper conditions, intentions can lead to higher performance.
b) However, no evidence exists that such goals are associated with increased job
satisfaction.

The diagram summarizes the relationships among goals, motivation, and performance. Our overall
conclusion is that the intention to work toward difficult and specific goals is a powerful motivating
force. Under the proper conditions, it can lead to higher performance. However, no evidence
indicates that such goals are associated with increased job satisfaction.

Seven key steps involved in setting goals (Locke & Latham 1984)

 Clarify specific goals to be achieved (a job description and profile are helpful in
guiding the manager in this step)
 Specify the specific goals to be achieved. (A job Description and profile are helpful in
guiding the manager in this step).
  Specify how the performance in question will be measured. Outcomes can be
measured in terms of physical units (quantity and quality), time (being punctual,
meeting deadlines, time to complete project) money (sales, costs, profits, income),
and behaviour.
 Specify the specific standard to be reached. (not only a quantitative measure as in
Step 2, but also the degree of performance to be achieved)
 Specify the time span involved. (set deadlines)
 Prioritize goals. (rank goals in terms of their importance if there is more than one)
 Rate goals according to difficulty
 Determine coordination requirements. (Ensure that goals of other people are not
conflicting.)

Application of goal setting theory

Goal setting is an effective motivational tool that is at the core of Management by Objectives
(MBO) and has important implications for managing performance Based on goal setting
theory managers should ensure the following:

 Set specific performance goals in collaboration with each individual. These goals
need to be understood and accepted by the individual. The goals will direct work
behaviour
 The goals should be measurable
 The goals be challenging yet realistic
 Goals should have a time frame
 Provide feedback on goal accomplishment and revise goals if necessary.
The objectives-setting approach

The objectives setting approaching is typified by management by objectives (MBO), a phrase

first coined by Peter Drucker in 1954, whereby the needs of the individual manager would be
integrated with organizational goals. (Humble 1972). It seeks to link strategic intent with day
to day organizational needs to achieve in order to be successful.

The starting point in this approach is to ensure that the organization has a clear purpose and
vision. This then needs to be broken down into supporting goals, objectives and strategy.
These goals and objectives are then cascaded down to the various divisions, sections or
departments of the organization. The manager plays an important role in this and is
essentially engaged in translating the business objectives into departmental strategy and
objectives.

MBO is therefore a system of management that relies on the manager and the employee
collaborating in the setting of objectives, allowing the employee to be involved in, and to
manage his or her own performance. This is motivational for the employee. The setting of
personalized objectives with individuals defines performance, provides direction by
establishing performance targets and establishes a course of action in meeting the targets. The
setting of objectives with the employee also clarifies the standard of performance expected,
the means by which performance will be measured, the development and resources necessary
to achieve the objectives and the rewards associated with achieving the agreed objective at
relevant standard levels. To ensure the desired performance will be measured and values the
rewards that are contingent on performance.

THE REINFORCEMENT THEORIES / OPERANT CONDITIONING.

Skinner’s reinforcement theory (Skinner’s 1975 Hilgrad and Atkinson 1979, et al) is a
learning approach and not strictly speaking a theory of motivation. The theory not only
provides insight into the way that people learn, but also provides valuable insight into what
influences behaviour and into the tools a manager can use to motivate staff. Based on the
application of extrinsic rewards such as pay, benefits and praise the argument underlying the
reinforcement theory is that reinforcement (any environmental consequences that
immediately follows a behavioral response) conditions behaviour. That is, both positive
reinforcement (desirable or valued consequence) and negative reinforcement (removal of an
adverse consequence) increase the likelihood of behaviour being repeated. A manager can
consequently shape an employee towards desired behaviour by using punishment (use of a
negative consequence) or extinction (the withdrawal of a positive desirable consequence
valued by the employee, particularly in cases where the likelihood of behaviour needs to be
reduced.
Reinforcement theory is counter to goal-setting theory. It proposes that behavior is a
function of its consequences

1. Reinforcement theory argues that behavior is externally caused.

2. Reinforcers are consequences immediately following a response that increase the
probability that the behavior will be repeated.
3. Reinforcement theory ignores factors such as goals, expectations, and needs; it
focuses on what happens when a person takes an action.
4. How can the concept of reinforcement be used to explain motivation?
a) People will most likely engage in a desired behavior if they are rewarded for
doing so.
b) These rewards are most effective if they immediately follow a desired
response.
c) Behavior that isn’t rewarded or is punished is less likely to be repeated.
5. Managers can influence employees’ behavior by reinforcing the work behaviors they
desire.

These theories hold that the consequences of past actions influence future actions. People
behave in a certain way because in the past, they learnt that certain behavior was associated
with pleasant outcomes and other behaviour led to unpleasant experiences.

This learning approach to behavior is based on the law of effect, which states that behavior
that has rewarding consequences has a good chance of being repeated whereas behavior that
led to negative or punishing consequences is not repeated. Thus the law may be expressed as

Stimulus Response Consequence Future response

As a result, managers who have to teach a new skill can reward every sign of progress
positively and by so doing ensure repetition.

Reinforcement theories propose that managers can modify the behavior of subordinates in
four ways:

1. Positive reinforcement

Positive reinforcement encourages behavior. The reinforcement may be primary or

secondary.

 Primary reinforces are those which met biological needs.

 Secondary ones are those like promotion or merit increments which are pleasant
enough to make individual repeat their behaviour in order to earn these rewards.

Managers must be perceptive enough to develop a reward system that is appropriate to each
individual and a reward that is acceptable to the work group.
 2. Avoidance learning

This sort of learning takes place when individuals want to avoid or escape unpleasant
consequences. Trainees are taught to have the right attitude towards work safety by being
shown the consequences of industrial accidents on video. The message has been ‘Industrial
accidents will cost you an eye or arm’ rather than ‘Industrial accidents cost our economy $20
million a year.”

3. Extinction

Extinction is the absence of reinforcement following undesired behavior. For example if a

worker at a meeting speaks simply for the sake of speaking, the chairman and the other
members can simply signore him till he learns to speak only when he has something useful to
contribute.

4. Punishment

Punishment should be employed only when a person persists in negative behaviour in spite of
being what is positive. When punishing, the manager must keep punishment to the absolute
minimum. Most psychologists advocate the use of positive reinforcement rather than
punishment to change behavior.

Application of reinforcement theory

Any manager who wants to influence the behaviour of the employees in the organization can
do so by changing the consequences of their behaviour. For example, if the manager praises
employee employees who go the extra mile in serving customers, this act as a positive
reinforcement for this behaviour and the employee is likely to be of service to the next
reinforcing for this behavior and the employee is likely to be of service to the next customer
encountered as well. The manager also needs to be aware that his or her responses (or a lack
of response) on a day to day basis to employee behaviour will serve to encourage (or
discourage) that behaviour. This draws attention to the importance of emotional intelligence
in managers, in their becoming more aware of their own behaviour and its effects on others.

Requirements of a good system of motivation a good system of motivation must be:

1. Flexible enough to cover the different motivators that driver people to achieve goals.
For instance, if money is only the motivator, people who want status and recognition
will not be motivated.
2. Comprehensive. When different motivators are provided, there must be provision for
meeting all needs from the physiological to those involving self – development.
3. Reassuring. People like to receive positive feedback rather than to say ‘no news is
good news’. At job performance appraisals, workers must be told how they stand with
regard to their work.
4. Progressive in the sense that the level of output must be able to be increased to meet
the demands of the competitive environment, and to meet the needs of workers for
more difficult and challenging work.

Summary Table for Motivation Theories

Instrument Content Theories Process Theories Reinforcemen

ality t Theories
Theory
Needs Models Of Expectance Theory
Theories behaviour
Maslow McGregor Vroom’s Porter & Albert Bandura’s
Hierarchy Theory X & Expectan Lawler Social Learning
of needs Y ce Expectanc Theory
Theory y Theory
Taylor’s Herzberg’s
Scientific Two Factor Theory Z
Management Theory Adams Equity Theory
Aldefer’s Agryis
ERG Theory of Skinner
Theory Maturity
McCleland Lockek’s Goal Theory
Needs
Theory

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MOTIVATION MODELS

Traditional motivation

The traditional model of motivation is associated with Fredrick Taylor and scientific
management, which held that an important aspect of the manager’s job was to make sure that
workers perform repetitive tasks in the most efficient way

According to Taylor’s deferential rate system, managers determined how the jobs should be
done and used a system of wage incentives to motivate workers- the more they produced the
more they earned.

This perspective assumed that workers were essentially lazy and that managers understood
the workers’ jobs better than the workers did.

Workers could only be motivated by financial rewards and had little to contribute beyond
their labour.

Human Relations

Eventually, it became apparent that the traditional approach to motivation was incomplete
Elton Mayo and other human relations researchers found that the social contacts employees
had at work were also important and that the boredom and repetitiveness of many tasks were
themselves factors reducing motivation.

Mayo and others also believed that managers could motivate employees by acknowledging
their social needs (satisfaction) and by making them feel useful and important. As a result,
employees were given some freedom to make their own decisions on the job, greater
attention was paid to the organisation’s informal work groups.

More information was provided to employees about manager’s intentions and about the
operations of the organisation.

The researchers also discovered that employees tended to set such group norms and
acceptable behaviour patterns as the rate at which group production would proceed.

In this model workers were expected to accept management’s authority because supervisors
treated them with consideration and were attentive to their needs.

The Neo-Human Relation Model

Douglas McGregor, as well as other theorist such as Abraham Maslow, Chris Agyris
criticized the human relation model as simply a more sophisticated approach to the
manipulation of employees. These theorists suggested that employees were motivated by
many factors not only money or desire for satisfaction, but also by the need for achievement
and meaningful work.

They argued that most people are already motivated to do good job and that they do not
automatically see work as undesirable.
 They suggested that employees are likely to derive satisfaction from good performance,
rather than performing well because they have been satisfied, as in the human relations
model.

Thus, employees can be given far more responsibility for making decisions and carrying out
their tasks.

General patterns of managerial approaches to motivation

Traditional Model Human Relations Neo-Human Relations

Assumptions
1. Work is inherently People want to feel useful Work is no inherently distasteful,
distasteful to most and important people want to contribute to
people meaningful goals that they have
2. What they do is less People want to belong and to helped establish.
important than what be recognized as individuals
they earn for doing it. Most people can exercise for more
3. Few want or can handle These needs are more creativity, self-direction and self-
work that requires important than money in control, than their present jobs’
creativity, self-direction motivating people to work demand.
or self-control.
Policies
1. The manager should The manager should make The manager should make use of
closely supervise and each worker feel useful and under-utilised human resource.
control subordinates. important. He/ she must create an
2. He/ she must break He/ she should keep environment in which all members
down tasks into simple subordinates informed and may contribute to the limits of
repetitive, easily listen to their objections to their ability.
learned operations. his/ her plans. He/ she must encourage full
3. He/ she must establish The manager should allow participation in important matters,
detailed work routines subordinates to exercise continually broadening
and procedures and some self-direction and self- subordinates self-direction and
enforce these fairly but direction on routine matters. self-control.
firmly.
Expectations
1. People can tolerate Sharing information with Expanding subordinates influence,
work if pay is decent subordinates and involving self-direction and self-control will
and the boss is fair them in routine decisions will lead to direct improvements in
2. If tasks are simple satisfy their basic needs to operating efficiency.
belong and feel important
enough and people are
Satisfying these needs will
closely controlled, they improve morale and reduce
Work satisfaction may improve as
will produce up to resistance to formal authority- a “by product” of subordinates’
standard. subordinates will ‘willingly making full use of their resources.
TOOLS OF MOTIVATION

Financial and Non-financial Motivation

Various motivational tools used to motivate employees in business organizations are broadly
classified into monetary and in monetary tools or incentives. Here we will focus on why
motivational tools need to be appropriate to activate people to action. Motivational tools are
instruments that prompt people to action. Hence, while using motivational tools, there should
be adequate and capable enough to motivate employees to make their maximum efforts to
accomplish the set goals.

Man works to satisfy his needs in a prepotency order. Therefore motivational tools should be
effective enough to satisfy human needs. As human needs vary between people and between
different points of times in case of the same person, motivational tools are, therefore, bound
to vary accordingly. For example, while increase in salary may satisfy one’s physiological
needs, recognition may satisfy the esteem needs. When needs are not satisfied, people
become frustrated. Yes, there may be both environmental and personal factors resulting in
one’s frustration.

Apathy, indifference, aggression, antagonism, open conflict, physical violence etc. are
common responses to frustration observed in organizations. These are detrimental to
organizational efficiency. It is true that reaction to frustration may vary from person to person
yet the behavioral pattern of individuals is likely to be identical situations. As such, it makes
easier for the motivatory manager to apply the appropriate motivational tools. If the
behavioral pattern of the individuals known to him.

It can be concluded that motivation tools are expected to be need satisfying and hence to be
person oriented. Better the motivational tools, greater would be effect on the individual
behavior. This would in turn lead to organizational effectiveness. And in this lies the need for
and significance of motivational tool to be used to motivate employees in business
organizations.

Incentives

The term incentive means an inducement which stimulates one to action in a desired
direction. An incentive has a motivational power, a large number of incentives the modern
organizations use to motivate their employees may be broadly grouped into (i) financial
incentive and (ii) non-financial incentive. These are discussed one by one.

1. Financial incentives
Money is an important motivator. Common uses of money as incentive are in the
form of wages and salaries, bonus, retirement benefits, medical reimbursement etc.
Management needs to increase these financial incentives making wages and salaries
competitive between various organizations so as to attract and hold force. Money
plays a significant role in satisfying physiological and security/social needs. As
money is recognize as a basis of status, respect and power, it also helps satisfy the
social needs of the money ceases to be motivator.

Money then becomes, what Herzberg termed, hygiene and maintenance factor. The
presence of hygiene factor, of coursed prevents job dissatisfaction but o not provide
‘on the job satisfaction’ to the employees the organization. In such case, money
 cannot be considered as motivator then in order to motivate employees, according to
Herzberg, it is necessary to provide other incentives for the satisfaction of ego, status,
and self-actualization needs. However, these needs are experienced generally by
employees working at higher levels in the organizations.

People in higher positions getting monetary rewards are not motivated by increased
monetary rewards. Yes them and status in the society to which they belong to. What
follows from above discussion can be summed up as that money is not the only
motivator and also it is not always a motivator. In order to satisfy different kinds of
human needs, management needs to provide non-financial incentives such as job
enlargement, participative management, recognition, praise etc. thee also motivate
employees at their work.

2. Non-financial incentives
Once money satisfy his/her physiological and security needs, it ceases to be a
motivate force. Then higher order needs for status and recognition and ego in the
society emerge.
The following non-financial incentives help management satisfy its employees’ these
needs:
i. To increase job satisfaction for the benefit of both, the organisation and its workers,
management should consider job design. This can be defined as the application of
motivation theories to the structure of work so as to improve productivity, and the
sense of satisfaction
a) A well designed job will;
b) Be reasonably challenging
c) Provide some variety
d) Be considered worth-while and meaningful by employees
e) Provide some degree of autonomy
f) Provide opportunities for working as a team

In designing or redesigning jobs, one or more of the following strategies should be developed

Job Rotation

This involves the systematic and planned movement of employees from one job to another to
provide them with variety and stimulation. It increases the experience of employees and
provide for individual development. In itself job rotation provides some enrichment to work.

Job enlargement

This involves a redesign of the job so that a series of tasks are combined into a new, broader
job which gives variety and challenge to employees
By increasing the scope of the job, the sense of wholeness of job will increase, thereby
motivating the workers

However, job enlargement should not result in over burdening the worker

Job enrichment

This is defined as a job design that incorporates achievement, recognition and other high
level motivators, in essence, it means increased job satisfaction through greater autonomy and
participation in the process of decision making

Job enrichment simply means adding the contents to a job leading to increased responsibility,
scope and challenge in its performance. Particularly, the executives working at the higher
levels often prefer to job enrichment because it makes job more challenging. They derive
higher satisfaction by performing more and more challenging jobs. Thus, job enrichment as
an incentive motivates the executives to exert for accomplishment of their goals. Job
enrichment is a by-product o job design which is discussed subsequently.

Recommended practices include;

a) Increasing the responsibility of individual workers

b) Giving people a complete unit of work and thereby reducing specialization
c) Providing workers with more information
d) Encouraging participation
e) Giving workers scope to vary methods, sequence and pace of work
f) Providing greater autonomy and responsibility
g) Allowing workers to increase their expertise

By these methods the employee is able to satisfy the social, self-esteem and actualizing needs
that are the essence of the neo-human relations theory

ii. Appreciation of work done: appreciation or praise for work done be it at home, at
school/university or at work place, serves as an effective non-financial incentive.
Appreciation satisfies one’s ego needs. However, managers need to use this incentive
with great degree of caution because praising an incompetent employee may create
resentment among competent employees.
iii. Healthy competition: if there exist a healthy competition among the employees both
at individual and group levels, it will prompt them to exert more to achieve their
personal or group goals. Thus, competition serves as a non-financial incentive for
employees to put in more efforts at their works.
iv. Group incentives: sometimes group incentives act as more effective than individual
incentives to motivate the employees. Particularly when the prestige or even existence
of a group is at stake, the group members work with a team spirit. This results in high
morale and in turn increases in its productivity.
 v. Appreciation: knowledge of the results of work one leads to employee satisfaction.
An employee derives satisfaction when his/her boss appreciates the work he/she has
done just as an MBA student gets satisfaction when his/her professor appreciates the
seminar he/she presented in the class.
vi. Workers’ participation in management: inviting workers to participate in
management gives workers; psychological satisfaction that their voices are also heard.
This imbibes a sense of importance among the porkers.
vii. Opportunity for growth: main is not a wanting animal but an ambitious creature
also. People always need to grow in their career. So, if the employees are provided
proper opportunities for growth and career advancement and chance to develop their
personality, they fell much satisfied and become more committed to the
organizational goals.
viii. Suggest system: suggestion system is yet another non-financial incentive to be used
to motivate employees. Following this, some organization sake use of cash awards for
giving useful suggestions, they sometime publish the worker’s name with his/her
photograph in the company’s magazine with a motive to encourage other workers to
search for useful suggestions for the company. Thus suggestion system acts as an
incentive for the workers to be in search of something useful for the company.

Knowledge Management

What is knowledge Management?

Knowledge management is ‘any process or practice of creating, acquiring, capturing, sharing

and using knowledge, wherever it resides, to enhance learning and performance in
organizations’ (Scarborough et al, 1999). They suggest that it focuses on the development of
firm-specific knowledge and skills that are the result of organizational learning processes.
Knowledge management is concerned with both stocks and flows of knowledge. Stocks
included expertise and encoded knowledge in computer systems. Flows represent the ways in
which knowledge is transferred from people to people or from people to a knowledge
database. Knowledge management has also been defined by Tan (2000) as: ‘The process of
systematically and actively managing and leveraging the stores of knowledge in an
organization’. Knowledge management involves transforming knowledge resources by
identifying relevant information and then disseminating it so that learning can take place.
Knowledge management strategies promote the sharing of knowledge by linking people with
people, and by linking them to information so that they learn from documented experiences.
Two approaches to knowledge management which are used in most organizations

According to Hansen et al (1999) as cited in Armstrong (2006) there are two approaches to
knowledge management which most organizations use, which are the codification and
personalization strategy. The codification strategy is whereby knowledge is carefully codified
and stored in databases where it can be accessed and used easily by anyone in the
organization. Thus knowledge is said to be explicit. Explicit knowledge is knowledge that
can be codified, it is recorded and available, and is held in databases, in corporate intranets
and intellectual property portfolios. Knowledge is extracted from the person who developed
it, made independent of that person and re-used for various purposes. It will be stored in some
form of electronic repository for people to use. This allows many people to search for and
retrieve codified knowledge without having to contact the person who originally developed it.
This strategy relies largely on information technology to manage databases and also on the
use of the intranet. Thus consultancy organizations such as Ernst &Young, using knowledge
to deal with recurring problems, may rely mainly on codification so that recorded solutions to
similar problems are easily retrievable.

`The personalization strategy is whereby knowledge is closely tied to the person who has
developed it and is shared mainly through direct person-to-person contacts. This is a ‘person-
to-person’ approach which involves sharing tacit knowledge. Tacit knowledge is knowledge
that exists in people’s minds. It is difficult to articulate in writing and is acquired through
personal experience. As suggested by Hansen et al (1999), it includes scientific or
technological expertise, operational know-how, insights about an industry, and business
judgment. Knowledge exchange is achieved by creating networks and encouraging face-to-
face communication between individuals and teams by means of informal conferences,
workshops, brainstorming and one-to-one sessions. Organizations that rely on this strategy or
approach are able to tackle high level strategic problems they are presented with which
demand the provision of creative and analytical advice. These organisations channel
individual expertise by finding and developing people who are able to use a person-to-person
knowledge-sharing approach effectively. In this sort of firms, directors or experts can be
established who can be approached by consultants by telephone, e-mail or personal contact.
Employee Voice
Employee voice’ refers to the say employees have in matters of concern to them in their
organization (Armstrong, 2006).
Employee voice is the term increasingly used to cover a whole variety of processes and
structures which enable, and sometimes empower employees, directly and indirectly, to
contribute to decision-making in the firm.’ (Boxall and Purcell 2003)
Employee voice can be seen as ‘the ability of employees to influence the actions of the
employer’ (Millward et al 2000).
Concept covers the provision of opportunities for employees to register discontent and
modify the power of management.
Employee voice embraces involvement and participation and is very much influential in
employee motivation
Worker Involvement (WI) and Worker Participation (WP)
Although the difference is subtle; Armstrong (2006) notes that there is a difference between
WI and WP.
 Involvement means that management allows employees to discuss with it issues that
affect them but management retains the right to manage. It is primarily a
management-driven concept.
 Participation on the other hand is about employees playing a greater part in the
decision making process. Participation is much closer to the concept of employee
voice systems, that is, arrangements for ensuring that employees are given the
opportunity to influence management decisions and to contribute to the improvement
of organizational performance
• Direct participation- personal presence
• Indirect participation- through representation

Purpose of employee voice

• Articulation of individual dissatisfaction – to rectify a problem with management or
prevent deterioration of relations.
• Expression of collective organization – to provide a countervailing source of power to
management.
• Contribution to management decision making – to seek improvements in work
organization, quality and productivity.
Demonstration of mutuality and cooperative relations – to achieve long term viability for the
organization and its employees (Armstrong, 2006

Degree of voice
• The degree to which employees have a voice will vary considerably. At one end of the
scale there is unilateral management, where employees have no voice at all.
• At the other end, employees might have complete self-management and control as in a
cooperative,
• In between, there are varying degrees to which employees have voice

Forms of Participation Practised

Direct Participation
Meetings- a regular formal meeting of management and subordinates to discuss work related
issues, This can be done at any level or department
Quality Circles-
Representative participation
• Joint consultation – a formal mechanism which provides the means for management
to consult employee representatives on matters of mutual interest
• Partnership schemes – these emphasize mutual gains and tackling issues in a spirit of
cooperation rather than through traditional adversarial relationships.
• European Works Councils – these may be set up across European sites as required by
EU legislation.
• Collective representation – the role of trade unions or other forms of staff association
in collective bargaining and representing the interests of individual employees and
groups of employees. This includes the operation of grievance procedures
Upward problem solving
 Electronic media – the intranet.
• Two way communication – meetings between managers and their staff, or briefing
group
• Attitude surveys – seeking the opinions of staff through questionnaires
• Suggestion schemes – the encouragement of employees to make suggestions, often
accompanied by rewards for accepted ideas
• Joint consultation machinery should be in line with any existing systems of
negotiation and representation
 • It should not be supported by management as a possible way of
• Project teams – getting groups of employees together with line managers to develop
new ideas, processes, services or products or to solve problems (quality circles and
improvement groups).

JOINT CONSULTATION
• Joint consultation enables managers and employee representatives to meet on a
regular basis in order to exchange views, to make good use of members’ knowledge
and expertise, and to deal with matters of common interest that are not the subject of
collective bargaining..
• Consultation should take place before decisions are made. Management must believe
in and must be seen to believe in involving employees.
• For joint consultation to work well it is first necessary to define, discuss and agree its
objectives.
• objectives be related to tangible and significant aspects of the job, the process of
management, formulation of policies that affect the interests of employees etc.
• Not just with peripheral matters only such as welfare, social amenities or the quality
of the sausages in the staff restaurant
• Actions speak better than words, and management should demonstrate that it will put
into effect the joint decisions made during discussions.
• The unions must also believe in participation as a genuine means of giving them voice
and advancing the interests of their members, and not simply as a way of getting more
power.
• They should show by their actions that they are prepared to support unpopular
decisions to which they have been a party.
Attitude surveys
• Attitude surveys are a valuable way of involving employees by seeking their views on
matters that concern them.
• Attitude surveys can provide information on the preferences of employees, give
warning on potential problem areas, diagnose the cause of particular problems, and
compare levels of job satisfaction, commitment and morale in different parts of the
organization.
Suggestion schemes
 • Suggestion schemes can provide a valuable means for employees to participate in
improving the efficiency of the company.
• Properly organized, they can help to reduce the feelings of frustration endemic in all
concerns where people think they have good ideas but there are no recognized
channels of communication.
• Managers and team leaders must be stimulated to encourage their staff to submit
suggestions, and publicity in the shape of posters, leaflets and articles in the company
magazine should be used to promote the scheme
• One person should be made responsible for administering the scheme
• It is desirable to have a suggestion committee consisting of management and
employee representatives, to review suggestions in the light of the comments of any
specialist functions or executives who have evaluated them.
• This committee should be given the final power to accept or reject suggestions, and be
able if necessary to call for additional information or opinion before making its
decision.

REACTIONS TO FRUSTRATION AND CONFLICT

Defence mechanisms arise to protect the individual’s feelings of self-worth in the face of
continued motivational frustration. It is important for the manager to understand defence
mechanisms because employees who frequently experience on – the – job frustrations resort
to them.

The four reactions are:

- Aggression
- Withdrawal
- Compromise
- Rationalization

1. Aggression
a) Direct aggression occurs when a very strong response is directed at the barrier to goal
attainment or something closely associated with it. For example, an operative who is
on piece- wage gets angry with a quality control inspector.
b) Indirect aggression is directed at a scapegoat who has no direct connection with
reasons for frustration for example an executive who takes out his work frustrations
on his wife because of work stress.

2. Withdrawal
 This occurs when the individual withdraws from the kind of problem solving effort of
which he is capable and turns to less mature behaviour.

Another type of withdrawal occurs when a person withdraws into emotional insulation to
protect an unrealistic self concept. For instance, a manager may believe that he has to
maintain cordial relations with his staff and he does so, but he never extends himself
personally to get to know them as people.

3. Compromise

These defence mechanisms are so named because they are neither simply aggressive nor
of the withdrawal type. When a person substitutes a different goal for the one he desires,
this is an example of compromise. For example , a salesman who produces
comprehensive sales reports may be substituting this form of achievement for actual
sales.

Rationalization

Rationalization describes the need to give related but irrelevant reasons to explain away
performance that are below standard.

The sour – grape rationalization tries to explain away a goal that was not achieved as
being really not worth-while.

The sweet-lemon rationalization tends to see something positive from the failure to meet
targets. For example, a company that was unable to sell old oil it’s an old ship’.

MOTIVATION AND MORALE

Motivation and moral the two expressions are not synonymous or interchangeable. As may be
clear from the description on motivation given earlier in this chapter, motivation is the
process of steering a persons inner drive and actions towards certain goals and committing his
energies to achieve these goals. The concept of ‘morale’ is defined as an overall state group’s
emotional health, arousal and enthusiasm.

Morale is a composite attitude of various individuals employed by an organization. It is

generated by the group and may be considered as a by product of the group. It must be noted
that it is not an average of individual attitudes. M. S. Vitels defines morale as an attitude of
goals of a particular group or organization. Morales is the summation of feeling of employees
as a group towards various aspects of their work/job the company working condition, fellow
workers, supervisors and so on.

If the attitude of employees towards all these aspects is more positive than negative, the
moral of the group can be said to be high otherwise it is low. Research studies in India show
that high morale among workers may not be necessarily an indication of high productivity.
For example Morale of union members may enable them to continue to strike and fight out
the issue.

Components of morale

The following important components determine the morale of a work group.

(i) A feeling of togetherness

(ii) A need for a clear goal or objective to be achieved expectation of success towards
the attainment of the goal. Feeling of each member within the group that he has a
meaningful task to perform for achieving the goal and he also matters whatever
may be the goal assigned to him.
(iii) Supportive and simulative leadership

Distinction between motivation and morale

Motivation and morale are conceptually different. They could be distinguished along the
following lines.

(i) Motivation is an individual’s state of disposition, and decision to do or not to do

things to behave or not to behave in a particular way, in response o given stimuli,
whether internal o external, while morale is more a group situation.
(ii) Motivation is only one of the factors which explains ‘why’ of individual behavior
and performance. Morale represents the totality of impact of several interacting
factors and forces in the atmosphere of a group.
(iii) A well motivated individual tends t5o experience a high degree of moral also. As
regards this a group characterized by a high state of moral may or may not have a
high degree of motivation to perform.
(iv) It is possible to build up motivation in an individual or group by a combination of
rewards and penalties. But morale can be built up by positive and favourable
means only.
(v) Organizations in general devote more direct attention towards motivational
aspects of people’s behavior than to aspects of morale.

The field of motivation is extensively explored and