1. MGT 162
Fundamentals of
Management
Unit 5 – Motivating
Organizational
Members
MOHAMMAD FIRDAUS BIN MOHAMAD

2. Learning outcome
1. Define motivation
2. Discuss the process of motivation.
3. Explain and identify the theories of
motivation

3. Motivation
• Process that account for an individual’s
intensity, direction and persistence of effort
toward attaining a goal.
• The forces acting upon or within a person
that cause that person to behave in a specific,
goal-directed manner.
• A psychological process that gives purpose
and direction to behavior.
• Motivation Ability = Performance
M A=P

4. The Relationship between Motivation
and Performance

5. Definition
• Defined as the psychological forces within
a person that determine:
1) direction of behavior in an organization;
2) the effort or how hard people work;
3) the persistence displayed in meeting goals.
– Intrinsic Motivation: behavior performed for
its own sake.
• Motivation comes from performing the work.
– Extrinsic Motivation: behavior performed to
acquire rewards.
• Motivation source is the consequence of an action.

6. Motivation process
NEEDS (UNFUFILLED)
TENSION
DRIVE
SEARCH BEHAVIOR
SATISFIED NEEDS (NEEDS
FULFILLED
REDUCE TENSION

7. Needs-Based Approaches to
Motivation
Maslow’s Herzberg’s
Hierarchy of Needs Two-Factor Model
Motivation
Acquired-Needs Model
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Western. All rights
reserved.

8. 1) Maslow Hierarchy of
needs
• Founded by Abraham Maslow
• He stated that people possess a set of five
needs in them.
• Any deprived need will dominate the
attention of people and will determine
their attitude & behavior.

9. Hierarchy of Needs
Need Level Description Examples
Self- Realize one’s Use abilities
Actualization full potential to the fullest
Feel good Promotions
Esteem
about oneself & recognition
Social Interpersonal
Belongingness
interaction, love relations, parties
Job security,
Safety Security, stability
health insurance
Food, water, Basic pay level
Physiological
shelter to buy items
Lower level needs must be satisfied before higher needs are
addressed.

10. 2) Herzberg - Factor Theory
Theory assume there are two group of
factors;
• Motivators account for high level of job
satisfaction and motivation
• Hygiene factors can cause dissatisfaction
with work.

11. MOTIVATERS HYGIENE FACTORS
(Lead to job (Lead to job
satisfaction) Dissatisfaction)
ACHIEVEMENT INTERPERSONAL RELATIONSHIP
RECOGNITON COMPANY POLICY/
ADMINISTRATION
WORK ITSELF SUPERVISION
RESPONSIBILITY SALARY
ADVANCEMENT WORKING CONDITION

12. 3) David McLelland Acquired
• Proposed that people develop a profile of
needs that influence behavior.
• These needs are learned through life
experiences.
• Employees with high achievement needs
enjoy challenges and strive in stimulating
environment.

13. Needs Elaboration
1 Need for -A person’s desire to be
achievement independent, to accomplish
complex tasks & to resolve
problems.
2 Need for -A person’s desire to influence &
power control behavior in others, to
complete and to exercise authority.
3 Need for -A person’s desire to associate with
affiliation others. To form friendly relationship
and to avoid conflict.

14. Process-Based Approaches to
Motivation
Expectancy Model
Equity Model
Goal Setting
Reinforcement
Theory
© 2007 Thomson/South-
Western. All rights
reserved.

15. 1) Expectancy Theory
• Developed by Victor Vroom and is a very
popular theory of work motivation.
• Vroom suggests that motivation will be
high when workers feel:
– High levels of effort lead to high
performance.
– High performance will lead to the
attainment of desire outcomes.
• Consists of three areas:
– Expectancy, Instrumentality, & Valence.

16. Expectancy, Instrumentality, & Valence
Effort Performance Outcomes
Expectancy:
Instrumentality Valence:
Person’s
perception that How desired
perception that
performance are the outcomes
their effort will
results in from a
result in
outcomes job
performance

17. Expectancy Theory
High Expectancy High High Valence
Instrumentality
(Worker desires the
(Worker knows that
(Worker perceives that outcomes resulting
if they try, they can
high performance from high
perform)
leads to outcomes) performance)
High
Motivation

18. 2) Equity Theory
Considers worker’s perceptions of the fairness of
work outcomes in proportion to their inputs.
• Adams notes it is the relative rather than the
absolute level of outcomes a person receives.
– The Outcome/input ratio is compared by
worker with another person called a
referent.
– The referent is perceived as similar to the
worker.

19. Equity Theory
Equity exists when a person perceives
their outcome/input ratio to be equal to
the referent’s ratio.
–If the referent receives more
outcomes, they should also give
more inputs to achieve equity.

20. ADAM’S EQUITY THEORY
PERCIEVED RATIO EMPLOYEE’S
COMPARISON ASSESSMENT
Outcomes A Outcomes B
Inequity
< (Under rewarded)
Inputs A Inputs B
Outcomes A Outcomes B
= Equity
Inputs A Inputs B
Outcomes A Outcomes B
Inequity
> (Over rewarded)
Inputs A Inputs B
* Person A is the employee, and Person B is a relevant other or referent

21. 3) Reinforcement theory
Based on the idea that people learn to repeat
behaviors that are positively rewarded (reinforced)
and avoid behaviors that are punished (not
reinforced).
Application of reinforcement theory (also called
behavior modification) involves changing one’s
own behavior or the behavior of another.
Managers should reward desirable employee
behavior (e.g., high performance) and punish
behavior (e.g., poor performance) that is not.

22. Increasing Desired Behavior
• Positive Reinforcement
– The administration of positive and rewarding
consequences following a desired behavior.
• Negative Reinforcement
– Also called avoidance learning, strengthens
desired behavior by allowing escape from an
undesirable consequence.
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Western. All rights
reserved.

23. Decreasing Desired Behavior
• Extinction
– The withdrawal of the positive reward or
reinforcing consequences for an undesirable
behavior.
• Punishment
– The administration of negative consequences
following undesirable behavior.
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Western. All rights
reserved.

24. Four Types of Reinforcers
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Western. All rights
reserved.

25. 4) Goal Setting Theory
– A process intended to increase efficiency
and effectiveness by specifying the
desired outcomes toward which
individuals, groups, departments, and
organizations work.

26. Goals setting serves three
purposes:
1. To guide and direct behavior toward
overall organizational goals and
strategies.
2. To provide challenges and standards
against which the individual can be
assessed.
3. To define what is important and provide
a framework for planning.
© 2007 Thomson/South-
Western. All rights
reserved.

27. SMART Goal Setting
• Effective goal setting should be:
– Specific
– Measurable
– Achievable
– Results oriented
– Time-related
© 2007 Thomson/South-
Western. All rights
reserved.