CBAR101 Fundamentals of Business: Theories of Motivation PDF

CBAR101: Fundamentals of Business 1- Theories of Motivation Date: October 11, 2024 Presented by: R.Z.S. Sales, D.M.L. Sumayao, L.K.L. Sybingco, & T.M.B. Verdeflor Professor: Ma. Lolita de Castro Motivation Topics Objectives 01. Job Performanc...

CBAR101: Fundamentals of Business 1- Theories of Motivation Date: October 11, 2024 Presented by: R.Z.S. Sales, D.M.L. Sumayao, L.K.L. Sybingco, & T.M.B. Verdeflor Professor: Ma. Lolita de Castro Motivation Topics Objectives 01. Job Performance and Motivation At the end of the session, the learners will be able to: 02. Need-Based Motivational Theories 01. Understand the role of motivation in employee performance. 02. Classify the basic needs of employees. 03. Process-Based Motivational Theories 04. Reinforcement Theory Describe how fairness perceptions are determined and 03. consequences of these perceptions. 04. Understand the importance of rewards and punishments. CBAR101: Fundamentals of Business - Theories of Motivation Job Performance What is Motivation? – Motivation: The desire to achieve a goal or a certain – Motivation is the driving force behind employee performance level. behavior and performance. – Job performance depends on three factors: – Essential for managers to understand how to motivate different individuals. 01. Motivation — Internal drive to accomplish tasks Table 1. Contrasting the Two Types of Motivation 02. Ability — Skills and knowledge to perform the job Intrinsic Motivation Extrinsic Motivation 03. Environment — External factors Motivation from within Driven by external rewards e.g., personal enjoyment, e.g., salary, promotions, pride, and accomplishment bonuses Learning new skills for Taking on extra work for a personal growth raise or recognition Figure 1. Performance is a function of the interaction between motivation, ability, and environment. Overview of the Theories of Motivation Types of Motivation Theories List of Theories 01. Need-Based Motivational Theories Maslow’s Hierarchy of Needs Motivation comes from fulfilling individual needs ERG Theory Herzberg’s Two-Factor Theory 02. Process-Based Motivational Theories McClelland’s Acquired-Needs Theory Focus on cognitive processes and perceptions of fairness Equity Theory 03. Reinforcement Theory Justice Theories Behaviors are shaped by their consequences Expectancy Theory Reinforcement Theory CBAR101: Fundamentals of Business - Theories of Motivation Maslow’s Hierarchy of Needs Abraham Maslow: Motivation comes from satisfying five types of hierarchically ranked needs. – Five Levels or Types of Needs from bottom-up: 01. Physiological: Basic survival needs 02. Safety/Security: Protection from harm 03. Social: Need for relationships 04. Esteem: Need for respect, recognition, status 05. Self-Actualization: Achieving one’s full potential – Once a lower-level need is satisfied, it no longer motivates. Figure 2. Maslow’s Hierarchy of Needs – People may prioritize needs differently, and cultural variations exist. ERG Theory Clayton Alderfer modified Maslow’s hierarchy of needs. – A simpler version of Maslow’s theory with three categories: 01. Existence: Basic needs (physiological; safety needs) 02. Relatedness: Social needs (relationships; belonging) 03. Growth: Personal development (esteem; self-actualization) – More Flexible: than Maslow’s theory. ERG theory does not rank needs in any particular order and multiple needs can be active at the same time. – Frustration-Regression Hypothesis: When frustrated in satisfying a particular need, people may regress to other needs (e.g., if growth is Figure 3. ERG theory includes existence, relatedness, and growth. blocked, focus on social relationships). Herzberg’s Two-Factor Theory Frederick Herzberg asked individuals what satisfies them on the job and what dissatisfies them. – There are two types of factors that influence job satisfaction and motivation: 01. Hygiene Factors: Prevent dissatisfaction 02. Motivators: Factors that are intrinsic but do not motivate. This refers to the to the job. These are what truly work environment or context in which a motivate and increase job job was performed. satisfaction. – Improving hygiene factors only reduces dissatisfaction but does not motivate. Managers should focus on motivators for the workers’ true engagement and better work performance. – However, the classification of the hygiene factors or motivators is not that simple either (i.e. with pay/salary). Figure 4. The two-factor theory includes hygiene factors and motivators. McClelland’s Acquired-Needs Theory David McClelland’s acquired-needs theory is the one that has received the greatest amount of support. – Individuals are said to develop three main needs learned over time from their life experiences. 01. Need for Achievement (nAch): Desire to excel and meet challenging goals. 02. Need for Affiliation (nAff): Desire for friendly and close interpersonal relationships. 03. Need for Power (nPow): Desire to influence others and control resources. – McClelland used Thematic Apperception Test (TAT) to assess the dominant need that drive their work behavior. 01. High Achievement: Thrives in goal-oriented roles (e.g., sales, entrepreneurship). 02. High Affiliation: Enjoys teamwork, prefers jobs requiring social interaction (e.g., teaching, social work). 03. High Power: Suited for leadership positions, enjoys managing and influencing others. Process-Based Motivational Theories These theories focus on how people think and make decisions about their effort and actions. 01. Equity Theory Fairness in input-output comparisons 02. Justice Theories Fairness in distribution, processes, and treatment 03. Expectancy Theory Belief that effort leads to performance and rewards CBAR101: Fundamentals of Business - Theories of Motivation Equity Theory J. Stacy Adams: People compare their efforts and rewards (inputs and outcomes) with others. ** Inputs are the contributions people feel ** Outcomes are the perceived rewards they are making to the environment. someone can receive from the situation. – Fairness motivates people to work harder; – The referent other may be a specific person as well as unfairness demotivates. a category of people that the individual can relate to (i.e. performing similar tasks) for meaningful comparisons. – Here are some possible responses to unfairness: 01. Reduce Inputs: Work less if they feel under-rewarded. 02. Increase Outcomes: Ask for raises or more benefits. 03. Change Referents: Compare with different people. 04. Leave: Quit if fairness cannot be restored. Figure 5. Equity is determined by comparing one’s input-outcome ratio with the input-outcome ratio of a referent. When the two ratios are equal, equity exists. Justice Theories Injustice is directly harmful to employees’ psychological health and well-being and contributes to stress. – Employers would benefit from paying attention to the three types of fairness/justice perceptions people care about: 01. Distributive Justice: Fairness of reward distribution. 02. Procedural Justice: Fairness of the decision-making process (transparent, unbiased). 03. Interactional Justice: Fairness in how people are treated (with respect, dignity). Figure 6. Dimensions of Organizational Justice. – Employees work harder when they feel treated fairly in all three aspects. Expectancy Theory Victor. Vroom’s expectancy theory posits that motivation is a result of three cognitive evaluations. 01. Expectancy: Belief that effort will lead to good performance (Can I do it?). 02. Instrumentality: Belief that performance will lead to rewards/desired outcomes (What is in it for me?). 03. Valence: Value placed on the rewards (Do I care about the reward?). – If all three factors are high, motivation is strong. If any are low, motivation drops. Figure 8. Ways in Which Managers Can Influence Expectancy, Instrumentality, and Valence Figure 7. Summary of Expectancy Theory Reinforcement Theory of Motivation B.F. Skinner’s Reinforcement Theory is rooted in behaviorism; suggesting that an individual’s behavior is shaped by consequences. ** Positive Reinforcement rewards good behavior. ** Negative Reinforcement removes negative outcomes when good behavior is shown. ** Extinction removes rewards for bad behavior. ** Punishment applies negative consequences for bad behavior. Table 2. Different Reinforcement Schedules Continuous Fixed-Ratio Variable-Ratio Reward every time Reward every nth Reward randomly; elicits good behavior occurs; time good behavior long-term behavior Figure 9. Reinforcement Methods. short-term boost is done change; most effective Summary of Theories of Motivation ** Motivation drives performance, but it is influenced by complex factors. ** Need-Based Theories focus on satisfying individual needs. ** Process-Based Theories focus on fairness, thought processes, and rewards. CBAR101: Fundamentals of Business - Theories of Motivation  Summary of Theories of Motivation Need-Based Theories End of the Presentation. Maslow’s Hierarchy of Needs Thank you! ERG Theory R.Z.S. Sales, D.M.L. Sumayao, Herzberg’s Two-Factor Theory L.K.L. Sybingco, & T.M.B. McClelland’s Acquired-Needs Theory Verdeflor Process-Based Theories Reinforcement Theory Equity Theory Reinforcement Theory Justice Theories Expectancy Theory CBAR101: Fundamentals of Business - Theories of Motivation  Main References Chapter 5 theories of motivation. Theories of Motivation. (n.d.). Lumen Learning. (n.d.). Principles of Management. Lumen. https://saylordotorg.github.io/text_organizational-behavior-v1.1/s09- https://courses.lumenlearning.com/wmopen- theories-of-motivation.html principlesofmanagement/chapter/the-importance-of-employee-motivation/ Other References Adams, J. S. (1965). Inequity in social exchange. In L. Berkowitz (Ed.), McClelland, D. C., & Boyatzis, R. E. (1982). Leadership motive pattern and Advances in experimental social psychology (Vol. 2, pp. 267–299). New York: long-term success in management. Journal of Applied Psychology, 67, 737– Academic Press. 743. Alderfer, C. P. (1969). An empirical test of a new theory of human needs. Mitchell, T. R. (1982). Motivation: New directions for theory, research, and Organizational Behavior and Human Performance, 4, 142–175. practice. Academy of Management Review, 7, 80–88. Cropanzano, R., Bowen, D. E., & Gilliland, S. W. (2007). The management of Porter, L. W., & Lawler, E. E. (1968). Managerial attitudes and performance. organizational justice. 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