1. Interpersonal Skills for Managers
– Psychology in Business
Class 3
Karol Wolski

2. Motivation
• Motivation is the process used to allocate
energy to maximize the satisfaction of needs
(Pritchard i Ashwood, 2008).

3. Motivation
• We allocate time and energy to different
actions by deciding direction, effort and
persistence:
– Direction: Which actions we will work on
– Effort: How hard we will work on those actions
– Persistence: How long we will work on those
actions

4. Motivation – general model
The
Energy Pool Motivation Needs
Process

5. Motivation at work – 9 features
• Motivation Is Understandable
– The components of motivation make sense. By
understanding how these components work
together, you can see your group’s motivation as
a logical process, that you can diagnose and
influence

6. Motivation at work – 9 features
• Motivation Is a Process
– Motivation is a process in the sense that
manufacturing is a process: a series of
interconnected steps produces the end product. If
one step goes awry, the whole process breaks
down.

7. Motivation at work – 9 features
• Motivation Is a Fundamental Issue, Not a Fad
– The history of management includes many fads
that have become popular and then died out.
Focus on motivation is not a fad; motivation is
basic. Understanding motivational principles can
help you understand behavior and identify in
advance what is going to work, no matter what
changes in the work environment.

8. Motivation at work – 9 features
• Motivation Is a Long-Term Issue
– So called "motivational speakers" may get people
excited about work, but the high is temporary.
Managing motivation is less emotional and more
long-lasting. A sustained effort to continually
monitor, diagnose, and make improvements is
needed.

9. Motivation at work – 9 features
• Motivation Is Logical
– Motivation operates on logical, understandable
principles. With a good model of motivation, you
can diagnose a situation and know what to do to
improve it. Think about quality: there was a time
when quality was seen as vague and difficult to
manage, but now it can be
defined, measured, and improved. You can
understand and encourage motivation, just as you
can understand and encourage quality.

10. Motivation at work – 9 features
• Motivation Is Manageable
– Because motivation is understandable, you can manage it.
You can affect the amount of time and energy people
spend on different tasks to increase their effectiveness.
– Think about a person whose motivation seems to be
low, who exerts minimal effort with little apparent interest
in how much gets done or how well it is done. On
weekends, that same person spends hours diligently
working as a volunteer in the community. This is the same
person; the difference is the work environment. It's not
that you're lucky to have motivated people working for you
or unlucky to have unmotivated people. How you manage
has a significant influence on motivation.

11. Motivation at work – 9 features
• Motivation Is Also Work Strategy
– Motivation is more than the overall effort that
goes into a job; it is also work strategy. Work
strategy is choosing what to work on, what not to
work on, how much effort to put into each
possible task, and how to sequence this effort
over time.

12. Motivation at work – 9 features
• Motivation Is a Collaboration
– Motivation is a collaboration between the organization
and its employees: staff members are asked to devote time
and energy to the organization in exchange for pay and
benefits. Thus, motivation is something the organization
does with people not to people. Managing motivation is
not manipulating people—in fact, it's just the opposite.
Managing motivation means learning how to optimize staff
contributions to the organization while at the same time
improving how staff needs are satisfied. With knowledge
and skill, you can work with the people you supervise to
create a work environment that is highly motivating to
them.

13. Motivation at work – 9 features
• With High Motivation, Everybody Wins
– Maximizing motivation benefits people as well as
the organization. Think of jobs where you haven't
felt strongly motivated. That kind of work is
unpleasant, frustrating, boring, stressful, and
fatiguing. In contrast, jobs that are highly
motivating are more stimulating and more fun.
When people can convert energy into satisfied
needs efficiently, their energy actually increases.
When they can't, energy decreases.

14. THEORIES OF MOTIVATION

15. Maslow's Need – Hierarchy Theory
• A tension – reduction hypothesis
– A T-R hypothesis is used to explain the process of
motivation. In this, an unsatisfied need creates an
uncomfortable state of tension in the person.
Tension spurs individual into action in an effort to
reduce the uncomfortable state.
– Action in maintained until the need is satisfied
and the tension is reduced.

16. Maslow's Need – Hierarchy Theory

17. Maslow's Need – Hierarchy Theory

18. Maslow's Need – Hierarchy Theory

19. Maslow's Need – Hierarchy Theory
• Criticism:
– There is a little research evidence supporting
Maslow’s theory
– This theory is difficult to test
• Popularity
– Theory and its term were very well publicized to
an extend that the terms are incorporated in
everyday language. Self-actualization is now a wor
in the dicitionary.

20. Maslow's Need – Hierarchy Theory
• Popularity
– The theory treats humans sympathetically and
shows that people work not only for money.
– Is quite easy to apply in the workplace

21. Herzberg’s Two-Factor Theory
Hygiene Factors Motivators
Salary,
Job Security, Nature of Work,
Working Conditions, Sense of
Level and Quality of Achievement,
Supervision, Recognition,
Company Policy and Responsibility,
Administration, Personal Growth and
Interpersonal Advancement
Relations

22. Herzberg’s Two-Factor Theory
The motivator factor motivates toward satisfaction;
the hygiene factor motivates away from dissatisfaction.

23. Achievement Theory – McClelland
• The central feature of this theory is need for
achievement (nAch)
• People with high nAch wants to have high ability
for certain activities. McClelland proposed that
these activities are such that:
– There is a standard of excellence
– A person can succeed or fail
• The second important feature is a need to avoid
failure
• Individuals are thought to have varying amounts
of each need, with one being dominant.

24. Achievement Theory – McClelland
Achievement Theory Predictions of the Individuals with a Need
to Gain Success or to Avoid Failure

25. Achievement Theory – McClelland
• McClelland suggested other characteristics and attitudes of
achievement-motivated people:
– achievement is more important than material or financial reward.
– achieving the aim or task gives greater personal satisfaction than receiving praise
or recognition.
– financial reward is regarded as a measurement of success, not an end in itself.
– security is not prime motivator.
– feedback is essential, because it enables measurement of success, not for reasons
of praise or recognition (the implication here is that feedback must be
reliable, quantifiable and factual).
– achievement-motivated people constantly seek improvements and ways of doing
things better.
– achievement-motivated people will logically favor jobs and responsibilities that
naturally satisfy their needs, ie offer flexibility and opportunity to set and achieve
goals, eg., sales and business management, and entrepreneurial roles.

26. Expectancy Theory - Vroom
• Force = Expectancy * Instrumentality * Valence
• Expectancy
– Expectancy is the belief that one's effort (E) will result
in attainment of desired performance (P) goals.
Usually based on an individual's past experience, self
confidence (self efficacy), and the perceived difficulty
of the performance standard or goal. Factors
associated with the individual's Expectancy perception
are self efficacy, goal difficulty, and control.
– Expectancy: Effort → Performance (E→P)

27. Expectancy Theory - Vroom
• Instrumentality
– Instrumentality is the belief that a person will
receive a reward if the performance expectation is
met. This reward may come in the form of a pay
increase, promotion, recognition or sense of
accomplishment. Instrumentality is low when the
reward is given for all performances given.
– Instrumentality: Performance → Outcome (P→O)

28. Expectancy Theory - Vroom
• Valence
– Valence refers to our emotional response to an
anticipated outcome. Some outcomes are more
attractive than others. These varied
positive, neutral or negative feelings about the
outcomes of performance are what is meant by
valence.

29. Expectancy Theory - Vroom
• Force = Expectancy * Instrumentality *
Valence
• For motivational force to be greater than
zero, all components also must have a value
greater than zero.
• Person will be motivated only if
– Expectancy > 0
– Instrumentality > 0
– Valence > 0

30. Expectancy Theory - Vroom

31. Expectancy Theory - Vroom

32. Equity Theory - Adams
• Background:
– Cognitive Dissonance – coined by Festinger – is an
inconsistency in the cognitive structure that
produces tension, which in turn motivates actions
to restore consistency and reduce the tension.
– Example: I thought I’m best runner. I lost the
competition. I have dissonace. Am I the best
runner?

33. Equity Theory - Adams
• Adams called personal efforts and rewards and
other similar 'give and take' issues at work
respectively 'inputs' and 'outputs'.
• Inputs are logically what we give or put into our
work. Outputs are everything we take out in
return.
• Adams used the term 'referent' others to
describe the reference points or people with
whom we compare our own situation, which is
the pivotal part of the theory

34. Equity Theory - Adams
Inputs Outputs
Time Job security
Effort Salary
Loyalty Employee benefit
Hard Work Expenses
Commitment Recognition
Ability Reputation
Adaptability Responsibility
Flexibility Sense of achievement
Tolerance Praise
Determination Thanks
Enthusiasm Stimuli
Personal sacrifice
Trust in superiors
Support from co-workers
and colleagues
Skill

35. Equity Theory - Adams
• People compare their inputs with outputs
• People need to feel that there is a fair balance
between inputs and outputs.
• Crucially fairness is measured by comparing
one's own balance or ratio between inputs
and outputs, with the ratio enjoyed or
endured by relevant ('referent') others.

36. Equity Theory - Adams
• If we feel that our inputs are fairly rewarded by
outputs (the fairness benchmark being
subjectively perceived from market norms and
other comparable references) then generally we
are happier in our work and more motivated to
continue inputting at the same level.
• If we feel that our ratio of inputs to outputs is less
beneficial than the ratio enjoyed by referent
others, then we become demotivated in relation
to our job and employer.

37. Equity Theory - Adams
• People respond to a feeling of inequity in different ways.
• Generally the extent of demotivation is proportional to the
perceived disparity with other people or inequity, but for
some people just the smallest indication of negative
disparity between their situation and other people's is
enough to cause massive disappointment and a feeling of
considerable injustice, resulting in demotivation, or
worse, open hostility.
• Some people reduce effort and application and become
inwardly disgruntled, or outwardly difficult, recalcitrant or
even disruptive. Other people seek to improve the outputs
by making claims or demands for more reward, or seeking
an alternative job.

39. Self-determination theory –
Deci and Ryan

40. Self-determination theory –
Deci and Ryan
• Need of Competence
– Refers to being effective in dealing with the
environment in which a person finds oneself
• Need of Relatedness
– Is the universal want to interact, be connected to, and
experience caring for others
• Need of Autonomy
– Is the universal urge to be causal agents of one's own
life and act in harmony with one's integrated self;
however, Deci and Vansteenkiste note this does not
mean to be independent of others

41. Self-determination theory –
Deci and Ryan
• Main assumptions:
– Humans are inherently proactive with their
potential and mastering their inner forces (such as
drives and emotions)
– Humans have inherent tendency toward growth
development and integrated functioning
– Optimal development and actions are inherent in
humans but they don’t happen automatically

42. Self-determination theory –
Deci and Ryan
• Intrinsic motivation is the natural, inherent
drive to seek out challenges and new
possibilities that SDT associated with cognitive
and social development.
• Intrinsic motivation refers to motivation that
is driven by an interest or enjoyment in the
task itself, and exists within the individual
rather than relying on any external pressure.

43. Self-determination theory –
Deci and Ryan
• Students are likely to be intrinsically
motivated if they:
– attribute their educational results to factors under
their own control (e.g., the effort expended),
– believe they can be effective agents in reaching
desired goals (i.e. the results are not determined
by luck),
– are interested in mastering a topic, rather than
just rote-learning to achieve good grades.

44. Self-determination theory –
Deci and Ryan
• Extrinsic motivation comes from outside of
the individual. Common extrinsic motivations
are rewards like money and grades, coercion
and threat of punishment. Competition is in
general extrinsic because it encourages the
performer to win and beat others, not to
enjoy the intrinsic rewards of the activity.

45. Self-determination theory –
Deci and Ryan
• Rewards (Money) undermine intrinsic
motivation
• undermining effect - When people received
rewards for working on an interesting
activity, they tended to display less interest in
and willingness to work on that activity after
termination of the rewards than did people
who had worked on the activity without
receiving a reward.

46. Self-determination theory –
Deci and Ryan
• Task-contingent rewards—those made contingent
on doing the activity—have been consistently and
reliably shown to undermine intrinsic
motivation, presumably because their controlling
function is salient (need of autonomy is not
satisfied).
• Rewards can enhance intrinsic motivation when
the controlling aspect is minimized and
competence cues are emphasized (reward is
treated as a feedback of competence level)