MOTIVATIONAL THEORIES

1. Classical theory ( Frederick Taylor)

Frederick Winslow Taylor (1856 – 1917) put forward the idea that workers are motivated mainly
by pay. His Theory of Scientific Management argued the following:

Workers do not naturally enjoy work and so need close supervision and control Therefore
managers should break down production into a series of small tasks. Workers should then be
given appropriate training and tools so they can work as efficiently as possible on one set task.
Workers are then paid according to the number of items they produce in a set period of time-
piece-rate pay. As a result workers are encouraged to work hard and maximize their productivity.
Taylor's methods were widely adopted as businesses saw the benefits of increased productivity
levels and lower unit costs. The most notably advocate was Henry Ford who used them to design
the first ever production line, making Ford cars. This was the start of the era of mass production.

2. Need or humanistic theory (Abraham Maslow)

Abraham Maslow's (1954), introduced the theory of Hierarchy of Needs. The Hierarchy-of-
Needs theory focused on the idea that human beings are motivated by unsatisfied needs, and that
the attainment of a lower need only leads for the satisfaction of a higher need. Maslow classified
human needs into five levels; physiological, safety, social, self-esteem and self-actualization
needs. As long as the persons are motivated to satisfy these cravings, then they are moving
towards growth, toward self-actualization. In order to present proper motivation at the
organization leaders must be able to determine and understand the active need of the individual.
Maslow's model indicates that fundamentally, lower-order needs like safety and physiological
requirements have to be satisfied in order to pursue higher-level motivators along the lines of
self-fulfillment.
a. Self- Actualization: According to Maslow (1954), self -actualization is the highest need
that could fully satisfy an employee. Maslow (1954) further argues that, just a major
percentage of employee population actually get to this level of self-actualization. This
type of motivation offers employees, the chance to get engaged in activities such as
innovations, creativity, ideas etc. Such need includes truth, justice, wisdom, bravery,
sincerity and meaning.
b. Self Esteem Needs: According to Maslow (1954), it gets to a point in everyone’s life
where one needs belongingness. Employees need to feel that they are part of the
organization. This type of need may come in two forms; satisfying internally and
externally. These include internal motivations such as self-esteem, accomplishment and
self-respect, as well as external motivations such as recognition, reputation, self-image
and social status.
c. Social Needs: Maslow (1954) identifies social needs as needs of getting associated with
social activities such as friendship, love and belongingness, families, interpersonal
relationships, societies, groups or any form of socialized group.
 d. Safety Needs: He notes that safety need is the need that liberates one from harm, fear or
any form of physical threat Maslow (1954). These comprise needs relating to job
security, medical insurance, healthy working environment, etc.
e. Physiological Needs: According to Maslow (1954), physiological needs are the driving
force of any human being, they satisfy the basic needs that one needs to survive or
sustain life. These basic needs include air, water, food, sleep, etc. Without
physiological needs, life is not worth living. If anyone is denied of this need, then one
has not choice than to survive by all means.

APPLICATION OF MASLOW THEORY IN THE ORGANIZATION:

The hierarchy of needs theory is relevant to this study as the theory is applicable to
organizational orientation and employee motivation. They further argue that the theory is able to
suggest how managers can lead their employees or subordinates to become self-actualized. The
idea implies the dual role of the theory first to organizations and second to employees on the
basis that both the organization and the employees must decide on the performance of their
organization, and that when employees put in their best in the service of the organization, the
culture and human resource practice should also ensure that the employees’ level of needs are
reflected in the values the organization holds with high esteem.
 3. : HERZBERG’S TWO-FACTOR MOTIVATION THEORY:
Fredrick Hertzberg (1959) carried out numerous researches on employee motivation. Herzberg
used the critical incidents approach to determine what makes an individual feel good or bad
about their work. The analysis suggested that factors that led to employee satisfaction were
vastly different from those that resulted in dissatisfaction. The theory can be characterized this as
the two-factor theory of motivation and named the categories motivators and health factors.
According to Herzberg, these factors explained the relationship between motivation and job
satisfaction. According to Herzberg (1959), both hygiene and motivation approaches must be
done simultaneously.

HYGIENE FACTORS:
Herzberg argued that the factors which when absent, caused dissatisfaction were the hygiene
factors. The presence of these factors might not necessarily motivate employees but if absent,
may cause dissatisfaction. These factors include:
a. Salary and incentives
b. Working Condition and environment
c. Job Security and safety
d. Level and quality of supervision
e. Company policies and administrative procedure
f. Interpersonal relationships at work.
MOTIVATORS:
The motivating factors were those that could motivate the employee to improve on their work
performance. These factors which termed as intrinsic are primarily concerned the content of the
work, and the way in which it comes together to form a meaningful whole. It asserts that for
managers to achieve improved performance, they need to include certain factors into the job
setting in order to develop intrinsic motivation with the workforce. These factors include:
a. Achievement and success
b. Recognition and popularity
c. Growth, development and advancement
d. Interest in the job and task

IMPLICATION OF HERZBERG’S THEORY IN THE WORK PLACE:

Herzberg (1968) published an article dedicated to the practical implications of his theory. The
article, stressed the difference between management continues to focus on hygiene factors and
results in only short term movement, while management through motivation taps into the
potential of the employees and provides chance to derive satisfaction out of work and results in
long term motivation. This article focuses on job enrichment in the organization.

4. : VROOM’S EXPECTANCY THEORY:

Victor H. Vroom (1964) looked at the whole paradigm of motivation in a slightly different
perspective the expectancy theory of motivation as a function of desirability of the result of
behavior. This is also referred to as the path-goal-theory; which indicates that rewards are
attributed to certain specific behaviors, thus; if an individual believes that behaving in a
particular way will generate rewards that the individual values or seek, they will be motivated to
behave in line with what is expected of them. Unlike Maslow and Herzberg, Vroom notes the
importance of such factors as effort, motivation and performance in motivation. This theory
proposes three factors that account to motivation as:
a. Expectancy
b. Instrumentality
c. Valence

EXPECTANCY:
Expectancy deals with the probability that an outcome will be obtained; that is, putting in more
effort will result in an increase in reward. According to Vroom, expectancy is affected by such
Things as:
a. Having the right resources available, such as; raw materials and time.
b. Having the right skills and efforts to do the job.
c. Having the essential support to get the job done, such as; supervisor support, or correct
working procedures.
INSTRUMENTALITY:
Vroom notes that Instrumentality deals with what you achieve from what you deliver; that is,
receiving a significant outcome after one delivers an expected performance. According to
Vroom, instrumentality is affected by such things as:
a. Clear understanding of the relationship between performance and outcomes – e.g. the rules of
the reward ‘game.’
b. Have faith in the people who will take the decisions on who gets what result.
c. Transparency of the process that decides who gets what outcome or feedback.

VALENCE:
Vroom notes that Valence is the significance that the individual places on the outcome. Valence
is positive if the individual wants to acquire the outcome and negative is what the individual will
like to ignore. If the individual does not place much value on the result, then their level of effort
might change Thus effort is directly proportional to the outcome.
According to Vroom (1964), if an employee perceives that:
a. An increased effort will not increase performance.
b. An increased performance will not increase their rewards.
c. The person does not value the rewards on offer.
Then there is a negative valence. Thus for a positive valence; all three perceptions must be
cleared by the employee. If any one of the perception is possible, then the employee will still not
be motivated, all three doubts must be cleared before a positive valence will be achieved.
 5. REINFORCEMENT THEORY:
Most often linked with reinforcement theory is the work of B.F.Skinner. Skinner’s work is built
on the assumption that behavior is influenced by its outcomes. These consequences are referred
to as“operants,” and so this theory uses the term “operant conditioning.”Behavior modification is
used to describe the learning by reinforcement of an individual. Reinforcement theory is based
on several principles of operant conditioning:

 Positive reinforcement. Anything that increases the strength of response and induces
repetition of the behavior that preceded the reinforcement (adding something positive).
 Negative reinforcement. The removal of a negative reinforce that increases the frequency
of response (taking away something).
 Punishment. An undesirable outcome of a specific behavior (adding a negative
consequence or removing a positive consequence).
 Extinction. Decline in response rate due to non-reinforcement (avoiding).

6. EQUITY THEORY:
Equity theory is based on the assumption that employees compare their efforts and rewards with
those of others in similar work situations. This theory hypothesizes that individuals are motivated
by desire to be treated equitably at work. Equity theory can be viewed as comparing the effort
expended and resulting rewards of one person to the effort expended and resulting rewards of a
referenced person. If these are viewed as same or suitable, then the first person feels the
treatment is fair and is motivated.

7: MCGREGOR X AND Y THEORY

According to McGregor, Theory X resembles a top down approach to management. Theory X
approach perceived people as needing direction and control. According to McGregor, this
perspective assumed that:

THEORY ‘X’ AND ‘Y’ ASSUMPTIONS:

The theory ‘X’ tells about those persons who have lack of integrity, avoid responsibility, work as
little as possible, prefer direction and dislike work.
The theory ‘Y’ tells about those persons who have integrity, work towards objectives, wants to
achieve target, will make decisions and like to do work
 LACK INTEGRITY
AVOID RESPONSIBILITY
THEORY "X" WORK AS LITTLE AS POSSIBLE
PREFER DIRECTION
DISLIKE WORK

HAVE INTEGRITY
WORK TOWARDS OBJECTIVES
THEORY "Y" WANTS TO ACHIEVE
WILL MAKE DECESIONS
LIKE TO DO WORK

8. ERG motivation theory Alderfer

Clayton P. Alderfer's ERG theory from 1969 condenses Maslow's five human needs into three
categories: Existence, Relatedness and Growth.

1. Existence Needs
include all material and physiological desires (e.g., food, water, air, clothing, safety, physical love
and affection). Maslow's first two levels.
2. Relatedness Needs
Encompass social and external esteem; relationships with significant others like family, friends,
co-workers and employers. This also means to be recognized and feel secure as part of a group or
family. Maslow's third and fourth levels.
3. Growth Needs
Internal esteem and self- actualization; these impel a person to make creative or productive
effects on himself and the environment (e.g., to progress toward one's ideal self). Maslow's fourth
and fifth levels. This includes desires to be creative and productive, and to complete meaningful
tasks.

Even though the priority of these needs differ from person to person, Alderfer's ERG theory
prioritises in terms of the categories' concreteness. Existence needs are the most concrete, and
easiest to verify. Relatedness needs are less concrete than existence needs, which depend on a
relationship between two or more people. Finally, growth needs are the least concrete in that
their specific objectives depend on the uniqueness of each person.
9. THEORY Z

William Ouchi’s Theory Z of Motivation: Features and Limitations!

William Ouchi developed Theory Z after making a comparative study of Japanese and American
management practices. Theory Z is an integrated model of motivation. Theory Z suggests that
large complex organisations are human systems and their effectiveness depends on the quality of
humanism used. A type Z organisation has three major features—trust, subtlety and intimacy.

Mutual trust between members of an organisation reduces conflict and leads to team work.
Subtlety requires sensitivity towards others and yields higher productivity. Intimacy implies
concern, support and disciplined unselfishness.

The distinguishing features of Theory Z are as follows:

1. Mutual Trust:

According of Ouchi, trust, integrity and openness are essential ingredients of an effective
organisation. When trust and openness exist between employees, work groups, union and
management, conflict is reduced to the minimum and employees cooperate fully to achieve the
organisation’s objectives.

2. Strong Bond between Organisation and Employees:

Several methods can be used to establish a strong bond between the enterprise and its employees.
Employees may be granted lifetime employment which leads to loyalty towards the enterprise. A
career planning for employees should be done so that every employee is properly placed. This
would result in a more stable and conducive work environment.

3. Employee Involvement:

Theory Z suggests that involvement of employees in related matters improves their commitment
and performance. Involvement implies meaningful participation of employees in the decision-
making process, particularly in matters directly affecting them. Such participation generates a
sense of responsibility and increases enthusiasm in the implementation of decisions, Top
managers serve as facilitators rather than decision-makers.

4. Integrated Organisation:

Under Theory Z, focus is on sharing of information and ‘resources rather than on chart, divisions
or any formal structure. An integrated organisation puts emphasis on job rotation which
improves understanding about interdependence of tasks. Such understanding leads to group
spirit.
5. Coordination:

The leader’s role should be to coordinate the efforts of human beings. In order to develop
common culture and class feeling in the organisation, the leader must use the processes of
communication, debate and analysis.

6. Informal Control System:

Organisational control system should be made informal. For this purpose emphasis should be on
mutual trust and cooperation rather than on superior-subordinate relationships.

7. Human Resource Development:

Managers should develop new skills among employees. Under Theory’ Z, potential of every
person is recognized and attempts are made to develop and utilise it through job enlargement,
career planning, training, etc.

Thus, Theory Z is a hybird system which incorporates the strengths of American management
(individual freedom, risk taking, quick decision-making, etc.) and Japanese management (job
security, group decision-making, social cohesion, holistic concern for employees, etc.) systems.

Limitations of Theory Z:

Theory Z suffers from the following limitations:

(i) Provision of lifetime employment to employees to develop a strong bond between

organisation and employees may fail to motivate employees with higher level needs. It merely
provides job security and may fail to develop loyalty among employees.

(ii) Participation of employees in the decision-making process is very difficult. Managers may
dislike participation as it may hurt their ego and freedom. Employees may be reluctant to
participate due to fear of criticism and lack of motivation. Even if they sit along with
management they may contribute little unless they understand the issues and take initiative.
Involvement of all employees may also slow down the decision-making process.

(iii) Theory Z suggests organisation without any structure. But without structure there may be
chaos in the organisation as nobody will know who is responsible to whom.

(iv) It may not be possible to develop a common culture in the organisation because people differ
in their attitudes, habits, languages, religions, customs, etc.

(v) Theory Z is based on Japanese management practices. These practices have been evolved
from Japan’s unique culture. Therefore, the theory may not be applicable in different cultures.

Thus, Theory Z does not provide complete solution to motivational problems of all organisations
operating under different types of environment. However, it is not merely a theory of motivation
but a philosophy of managing.