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Chapter 13
Motivation and
Performance
The Nature of Motivation

Motivation
– The psychological forces that determine
• The direction of a person’s behavior
• A person’s level of effort
• A person’s level of persistence
– Explains why people behave the way they
do in organizations
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The Nature of Motivation

Intrinsically Motivated Behavior
– Behavior that is performed for its own sake

Extrinsically Motivated Behavior
– Behavior that is performed to:
• Acquire material or social rewards
• Avoid punishment
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The Motivation Equation
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Maslow’s Hierarchy of Needs
Highest-level
needs
Lowest-level
needs
Needs
Description
Examples
Selfactualization
Realize one’s
full potential
Use abilities
to the fullest
Esteem
Feel good
about oneself
Promotions
and recognition
Belongingness
Social
interaction, love
Interpersonal
relations, parties
Safety
Security, stability
Job security,
health insurance
Physiological
Food, water,
shelter
Basic pay level
to buy items
Lower-level needs must be satisfied
before higher-level needs are
addressed.
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Alderfer’s ERG Theory
Needs
Highest-level
needs
Lowest-level
needs
Description
Examples
Growth
Self-development,
creative work
Continually
improve skills
Relatedness
Interpersonal
relations, feelings
Good relations,
accurate feedback
Existence
Food, water,
clothing, and shelter
Adequate pay
for necessities
After lower level needs satisfied, person seeks higher needs. When
unable to satisfy higher needs, lower needs motivation is raised.
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Herzberg’s Motivation-Hygiene
Theory

Motivator needs
– Relate to the nature of the work itself
– Autonomy, responsibility, interesting work

Hygiene needs
– Relate to the physical and psychological
context of the work
– Comfortable work environment, pay, job
security
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McClelland’s Needs

Achievement
– A strong need to perform challenging
tasks well

Affiliation
– Establishing and maintaining good
interpersonal relations

Power
– A desire to control or influence others
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Equity Theory

Equity Theory
– Focuses on people’s perceptions of the
fairness (or lack of fairness) of their work
outcomes in
proportion to
their work
inputs.
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Equity Theory
Condition
Equity
Underpayment
Equity
Overpayment
Equity
Person
Outcomes
Inputs
Outcomes
Inputs
Outcomes
Inputs
Referent
Example
= Outcomes
Inputs
Worker contributes
more inputs but also
gets more outputs
than referent
< Outcomes
Inputs
Worker contributes
more inputs but also
gets the same outputs
as referent
> Outcomes
Inputs
Worker contributes
same inputs but also
gets more outputs
than referent
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Equity Theory

Restoring Equity: Inequity creates tension in
workers causing them to attempt to restore
equity.
– In underpayment, workers may reduce input levels
to correct (rebalance) the ratio or seek a raise.
– In overpayment, workers may change the referent
person and readjust their ratio perception.
– If inequity persists, workers will often choose to
leave the organization.
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Expectancy Theory
Motivation will be high
when workers believe:
– High levels of effort will
lead to high performance.
– High performance
will lead to the
attainment of
desired outcomes.
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Expectancy Theory
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Expectancy Theory
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Operant Conditioning

Operant Conditioning
– People learn to perform behaviors that lead
to desired consequences

Organizational Behavior Modification
– Using operant conditioning techniques to
promote the performance of desired
organizational behaviors
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Operant Conditioning
Reinforcement
(desireable
behavior)
Punishment
(undesireable
behavior)
Positive
Consequences
Apply
Withhold
Negative
Consequences
Withhold
Apply
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Social Learning Theory

Social Learning Theory
– Modeling the behavior of others

Self-Reinforcement
– Any attractive outcome or award that a
person can give himself/herself

Self-efficacy
– A person’s belief about his or her ability to
perform a behavior successfully
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Pay and Motivation

Need Theory
– Pay is used to satisfy many needs

Equity Theory
– Pay is given in relation to inputs

Expectancy
– Pay must be valued as an outcome

Learning Theory
– Pay is distributed upon performance of
functional behaviors
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Merit Pay and Performance

Compensation that bases pay on based on
performance.
 Individual
– When individual performance can be accurately
measured

Group
– When a group that works closely together is
measured and rewarded as a group

Organization
– When group or individual outcomes are not easily
measured
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Examples of Merit Pay Plans

Piece-rate Pay
– Employee’s pay is based on the number of units
that the employee produces

Commission Pay
– Employee’s pay is based on a percentage of sales
that the employee makes.

Organization-based Merit Plans
– Scanlon plan—focuses on reduced expenses or
cutting costs
– Profit sharing—employees receive a share of an
organization’s profits
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