Theories of motivation are important to promote a productive and engaged workforce. There are some recognised schools of thought which can offer some insights into ways a first line manager can motivate their team: need-based theories and process-based theories. An understanding of these theories can help managers to identify their team members’ motivation levels, and to modify their leadership strategies accordingly to:
- provide positive working environments,
- foster positive relationships,
- offer opportunities for growth,
- clarify objectives,
- offer meaningful feedback,
- ensure equitable treatment for all.
A need-based approach to first line management provides a framework for managers to understand the needs and motivations of team members. This approach recognises that employees are individuals who have different needs, from basic physiological requirements to higher-level desires for self-actualisation (reaching one’s full potential) and growth. According to a need-based perspective, a manager’s job is to identify what employees need and to make the work environment able to meet these needs. Recognising needs can help:
- the employee
Employees are more likely to feel satisfied and engaged in their work as their intrinsic motivations and aspirations are recognised and met. - the manager
Adopting techniques related to a need-based approach can help a first line manager to foster a more inclusive and supportive work environment leading to higher levels of employee satisfaction and engagement. - the organisation
adopting a need-based approach can benefit the organisation in terms of improved individual performances, better employee retention and overall effectiveness.
Maslow’s Hierarchy of Needs
This is a theory which proposes that we all have a hierarchy of needs which must be fulfilled in a specific order and is represented by a pyramid structure. Abraham Maslow was one of the most prominent psychologists of the last century and his theory is widely known in the business and management worlds. His premise is that all humans have shared needs, which when satisfied lead to higher-level needs becoming motivating factors. This diagram represents the structure, from the most basic of human needs (food, shelter, water) to the highest (self-actualisation):
These are the most basic human needs required for our survival. In the workplace, these needs are as important as anywhere and relate to an environment which provides adequate breaks/rest, appropriate shelter, access to drinking water, somewhere to eat, clean toilet facilities etc.
Safety from a workplace perspective involves job security and health and safety factors which can be addressed by implementing clear safety protocols, job stability and clarity and proper resources for handling emergency situations effectively.
In the workplace, a sense of belonging can include social interactions, friendships and positive relationships. Managers can foster a sense of belonging by facilitating team-building activities, promote collaboration, and creating a supportive work culture.
Esteem in the workplace involves recognition, respect and a sense of accomplishment. Managers can provide regular and effective feedback, acknowledge employees’ contributions and provide opportunities for professional development and advancement.
Self-actualisation is the process of achieving one’s full potential, pursuing personal growth and finding meaning in one’s work. This can be provided by managers encouraging autonomy, creativity and innovation in employees and providing opportunities for self-expression and professional development.
Watch
Abraham Maslow and the Hierarchy of Needs - Content Model of Motivation
A guide to possibly the best-known but probably over-used theory of motivation, Maslow’s Hierarchy of Needs.
Duration: 9:16
The Two-Factor Theory
Also known as Herzberg’s Motivation-Hygiene Theory, this was put forward by Frederick Herzberg and differentiates which aspects of a job satisfy employees and which aspects dissatisfy them. He labelled dissatisfaction factors as “Hygiene” factors and the satisfaction factors as “Motivators” (Saylor Academy, n.d.).
| Hygiene Factors | Motivators |
|---|---|
| Company policy | Achievement |
| Supervision and relationships | Recognition |
| Working conditions | Interesting work |
| Salary | Increased responsibility |
| Security | Advancement and growth |
- Hygiene Factors
Hygiene factors are those which are part of the job environment as opposed to the actual work which is being done. This includes things like company policies, salary, work conditions, work security etc. and examples might include being too hot or cold, workplace harassment or unfair treatment resulting in an unpleasant work experience. Solving these environmental problems would make the workplace more comfortable and pleasant, but would probably not be motivating in themselves, and would soon become the norm. Many environmental factors are taken for granted, and only recognised when they are missing. - Motivators
Motivator factors are those which are intrinsic to the job itself and include achievement, recognition, satisfying work, more responsibilities, promotion and professional development. Herzberg’s research suggested that motivators are what really encourages employees to try harder and to be more productive.
Despite some limitations (for example in how factors are categorised may not be the same for all people), this theory is useful for managers as it shows them that improvements in the physical environment are only partially useful in motivating employees, and they should endeavour to enrich employees’ jobs by improving the employees’ motivator factors.
Watch
Frederick Herzberg and the Two-Factor Theory – Content Models of Motivation
Motivation is not the opposite of demotivation. This video examines Herzberg’s Two-Factor Theory, which is one of the most important models in the psychology of motivation.
Duration: 8:54
Acquired-Needs Theory
This theory was posed by David McClelland and states that we have three types of needs which are acquired through our lives through personal experience and socialisation, and that all individuals have a varying combination of these needs, with the dominant need being that which drives employee behaviour. By recognising and understanding these acquired needs, leadership strategies can be tailored to motivate and engage employees in different ways. The three types of need identified for this theory are:
Some individuals have a strong need for achievement which motivates them to succeed in challenging tasks. Their motivation is in setting and attaining goals, taking on personal responsibilities and receiving performance feedback. These individuals may seek tasks which offer more opportunities for personal accomplishments and growth.
Managers can motivate those with a need for achievement by providing challenging (but attainable) goals, recognising accomplishments and providing opportunities for skill development and advancement.
The need for affiliation is the desire for positive relationships with others, a sense of belonging and social interaction. Individuals with a high need for affiliation are motivated by having harmonious relationships with others, co-operating and being part of a group. They may seek approval, support and acceptance from managers and from their peers.
Mangers can motivate these individuals by creating a supportive team environment, encouraging collaboration and providing opportunities for teamwork and social interaction.
McClelland defined two types of power need: personal power and institutional power. Personal power includes the desire to influence and control others. Institutional power involves the desire to organise and structure efforts of others to achieve organisational goals. People with a high need for power are motivated by opportunities to lead, influence decisions and to make a difference in their organisation and they often look to fill positions of authority, recognition and prestige.
For managers, understanding this need can help them to identify emerging leaders, delegate responsibilities effectively and to provide opportunities for leadership development.
Watch
David McClelland and Three Motivational Needs - Content Theories of Motivation
A guide to McClelland’s Acquired Needs Theory
Duration: 8:12
Theory
The ERG theory is a modified version of Maslow’s Hierarchy which was developed by Clayton Alderfer. The ERG theory proposes that human needs can be grouped into three categories: Existence, Relatedness and Growth. Existence is equivalent to Maslow’s physiological and safety needs; Relatedness corresponds to social needs and Growth corresponds to esteem and self-actualisation.
This theory is a simplified and non-hierarchical version of Maslow’s theory and allows for the possibility that if one need is unable to be satisfied the individual may regress to another. An example of this would be if a person is frustrated in their work opportunities (Growth) they may regress to spending more time socialising with co-workers (Relatedness). Embracing this theory means accepting that in order to understand and motivate them we need to recognise that individuals have multiple needs which drive them at any particular time.
Watch
Clayton Alderfer and ERG Theory - Content Models of Motivation
A guide to the ERG theory, Alderfer’s variation on Maslow’s Hierarchy of Needs
Duration: 5:25
Process-based management theories focus on understanding and optimising processes which drive organisational performance as opposed to actions aimed at satisfying a need. Process-based theories try to explain the process of how individuals show motivated behaviour (University of Minnesota, 2017). They look at the mental processes that underlie choices, goal-setting and what influences the efforts put in to reach them. Process-based theories:
- focus on cognition (individuals think about their environment and analyse situations rationally before deciding how to act)
- are goal-oriented (our motivation is driven by the desire to achieve our goals)
These are three of some of the key theories which come under this heading:
- Equity Theory
- Expectancy Theory
- Theory X and Theory Y
Equity Theory
The Equity Theory was proposed by John Stacy Adams in the 1960s and focuses on the fairness of resource distribution and suggests that we are motivated to maintain a fairness of equity between inputs (such as our effort, time and skills) and outcomes (such as pay, recognition and benefits) compared to others.
An example would be a new employee who has a similar skill-set being hired at a higher pay rate than you but doing exactly the same job. This theory can be shown as a comparison between two ratios:
Key Concepts
- Inputs
Inputs are what an individual contributes to a situation, such as time, effort, skills, loyalty and dedication. This is what the individual invests in their work or relationships. - Outcomes
These represent what the individual receives as rewards or consequences (such as pay, benefits, recognition etc.) gained as a result of their inputs. - Ratio
This is Inputs/Outcomes, which is the ratio of what they contribute to what they receive. - Comparison
Individuals compare their own input/outcome ratio to those of relevant others (e.g. co-workers, friends, peers etc.) and this results in either:- Equitable Situation - the individual perceives that their ratio is similar to that of others the situation is fair and equitable.
- Under-reward Situation– the individual perceives that their ratio is lower than others (i.e. their outcomes are lower than those of others for similar inputs)
- Over-rewards Situation - the individual perceives that they are being rewarded more for their inputs compared to others.
Both under-reward and over-reward situations result in feeling of inequity.
Reactions to Inequitable Situations
| Input | Outcome |
|---|---|
| Experience, skills, knowledge | Salary, reward, bonus |
| Effort, energy | Security |
| Time | Recognition |
| Responsibility | Promotion |
| Flexibility |
Learning and development opportunities Good working conditions |
|
Work characteristics:
|
Work characteristics:
|
|
Bad working conditions:
|
Individuals react to feelings of inequity in different ways. Some of the behaviours may be shown as:
- Distress – the individual experiences feelings of resentment or anger. This can lead to de-motivation and job dissatisfaction.
- Attempt to restore equity – the individual may try to restore the ratio of equity by asking for a pay rise, or decreased effort or even seeking a new job.
- Changing comparisons – the individual adjusts the framework of their comparison model by choosing to compare themselves to others who have a similar input/outcome ratio.
Managing Equity
Managers can apply Equity Theory in the workplace by making sure that rewards, recognition and opportunities are distributed fairly according to employees’ input contributions. Promoting a sense of fairness and equity can help an organisation to improve employee motivation, job satisfaction and commitment. This can be done by conducting regular assessments of their inputs and outcomes through regular feedback and fostering an environment where perceptions of fairness and equity can be discussed.
Managers can redress imbalances in employee ratios by adjusting rewards or opportunities to improve fairness.
The application of Equity Theory can enhance not only employees’ motivation, satisfaction and engagement but also promote a productive, harmonious environment, which in turn benefits the organisation.
Watch
What is John Stacy Adams' Equity Theory? Process of Model of Motivation
This video takes you through Adams’ simple yet powerful motivation model which is built around the fact that human beings are motivated by fairness.
Duration: 14:15
Expectancy Theory
Victor Vroom’s Expectancy Theory is a process-based motivation theory which focuses on an individual’s expectations regarding the relationship between effort, performance and outcomes. According to this theory, motivation to engage in a behaviour or task is influenced by three factors:
Effort to Performance Expectancy - this relates to an individual’s belief that their effort will lead to successful performance. It assesses the likelihood that exerting effort will result in achieving the desired performance level. If they perceive a strong expectancy they are more likely to be motivated to invest effort into the task.
Performance to Outcomes Expectancy. Instrumentality is the belief that successful performance will lead to desired outcomes or rewards. If it is believed that achieving a certain level of performance will result in desired outcomes (e.g. promotions, recognition or pay rises) individuals are more likely to be motivated to exert effort and perform well.
Valence relates to the value or attractiveness that an individual places on the outcomes or rewards associated with performance. Different individuals may assign different levels of importance or desirability to the same outcome. For example, one employee may value monetary rewards highly, while another may prefer opportunities for professional development, or a better work-life balance. The valence of outcomes influences an individual’s motivation to pursue those outcomes.
Expectancy theory states that motivation is a multiplication of these factors.
Application of Expectancy Theory
Applying Vroom’s Expectancy Theory can help to create a motivational environment in which employees are encouraged to exert effort to perform at their best and achieve meaningful outcomes. It can be applied in management by:
- Clarifying Expectations
Clearly communicate performance expectations and provide employees with the necessary resources, training and support to achieve those expectations to ensure that employees believe their efforts will lead to successful performance. - Linking Performance to Rewards
Establish a clear link between performance and outcomes, like rewards, recognition or career advancement opportunities. Employees should perceive that achieving successful performance will result in desirable outcomes. - Understanding Individual Preferences
Recognise that individuals may have different preferences and values when it comes to outcomes. Tailor rewards and incentives to align with employees’ preferences to enhance their motivation. - Providing Feedback and Recognition
Offer regular feedback on performance and recognise employees for their achievements. Positive feedback reinforces the belief that effort leads to successful performance and that successful performance leads to desirable outcomes.
Watch
What is Victor Vroom's Expectancy Theory? Process of Model of Motivation
Vroom’s Expectancy Theory is less well-known than it should be. It won’t tell you what motivates people but will explain why motivation sometimes work and sometimes doesn’t.
Duration: 7:40
Theory X and Theory Y
Theory X and Theory Y are contrasting managerial perspectives on employee motivation and management style which were proposed by Douglas McGregor in the 1960s. These theories represent two distinct management assumptions about human nature and behaviour in the workplace.
- Theory X
Theory X represents a traditional and authoritarian view of management which takes a more controlling and directive approach. It assumes that employees inherently dislike work and will avoid it whenever possible. Theory X proposes that:- Employees have a natural aversion to work and will exert minimal effort unless coerced or controlled.
- Employees lack ambition and prefer to be directed and controlled by management.
- Employees are primarily motivated by external rewards, such as monetary incentives or punishments.
- Management must closely supervise and control employees to ensure that they meet organisational goals.
- Communication is top-down, with little input from employees in decision-making processes.
- Theory Y
Theory Y represents a more modern and participative view of management which assumes that employees are inherently motivated and capable of taking responsibility for their work and emphasises trust, empowerment and employee involvement. According to Theory Y:- Work is seen as a natural and fulfilling aspect of life and employees can find satisfaction in their work if given the opportunity.
- Employees are creative, self-motivated and capable of exercising self-direction and self-control.
- Employees possess untapped potential and are capable of contributing valuable ideas and solutions to organisational problems.
- Management’s role is to create a supportive work environment that encourages employee participation, creativity and personal development.
- Communication is more open and participative, and managers actively seek the input and involvement from employees in decision-making.
McGregor believed that Theory Y assumptions lead to more effective and satisfying management practices and advocated for managers to adopt a Theory Y mindset to unlock the full potential of their employees.
Watch
What are Douglas McGregor's Theory X and Theory Y?: Process of Model of Motivation
A simple explanation of the opposing theories of motivation which are at the two ends of the management spectrum.
Duration: 7:19
Incentives in the workplace are the rewards or benefits which an organisation offers to its employees to motivate them to perform at their best, and to achieve organisational goals. There are different ways an organisation can incentivise employees, but they are all designed to encourage employees by recognising and rewarding efforts, contributions, achievements and accomplishments.
Intrinsic vs Extrinsic Incentives
Intrinsic incentives are motivations relating to the internal thoughts and feelings of an individual as opposed to external promises. This may include factors like the feeling of pride at a job well done, the fulfilment of important work or the satisfaction of completing a project.
Extrinsic incentives are those incentives which originate outside the mind and body of the individual receiving it. These can include positive incentives such as the promise of a reward, or negative incentives such as the threat of being removed from a team. Examples of extrinsic rewards include offering money, or a new job title.
(Indeed editorial team, 2023,b)
Types of Incentive
This is one of the most common types of financial incentive which organisations use to show appreciation. They could be offered for
- Rewarding a job well done
- Achieving an objective outside normal duties and tasks
- Showing recognition for an important employee milestone
- Providing a retention incentive for employees to remain in the organisation’s employ
This is a financial incentive which encourages employees to recommend potential candidates to be recruited to work for their organisation. These programmes are successful because existing staff have the relevant knowledge of the organisation to recommend candidates they know to be a good fit. They also allow the employee to participate in the growth of their company.
Allowances are amounts of money which a company gives individuals for specific purposes. Types of allowance include: transportation allowance, meal allowance, uniform allowance, education allowance and childcare allowance. Some allowances may be specific to a certain city, for example London Weighting is an allowance paid to certain civil servants, teachers, police and teachers in and around London to encourage key workers to stay there, and to counter the higher cost of living associating with living in London.
Commissions are commonly offered to sales professionals which pay them a percentage of the profit from the sales they make and is in addition to their salary.
Some companies allow employees to purchase shares in the company for a discounted price. Stock incentives are beneficial as they can reward the employee with long term financial gains, as well as incentivising the employee to maintain high levels of productivity for the benefit of the organisation.
This is a popular financial incentive which employers may offer to employees in addition to their wages or salary. These schemes offer employees a percentage of profits and can be positive for both the employee and the company itself, as it can act as an effective motivator for employees to exceed profit goals.
These could be offered as an incentive for employees who, for example, work extra hours to achieve a short-term project target, or as a payment for overtime.
Increases in salary are the most common form of financial incentive offered by employers to encourage employees in their career development. They are extremely effective and are often necessary to attract and retain key staff. They are also essential to be offered on a regular basis to compensate for increased cost of living expenses and to discourage staff from looking elsewhere for a better remunerated position.
Retirement benefits provide employees with long-term retirement funds. In New Zealand, employers contribute to employee’s KiwiSaver retirement schemes, with a compulsory minimum rate of 3% of the employee’s pay (Employer Contributions to KiwiSaver Schemes and Complying Funds, n.d.). Other employers may offer workplace retirement savings schemes in addition to KiwiSaver.
Non-financial types of incentive include:
- Status or job title
- Public recognition
- Flexibility
- Autonomy
Read the article linked below for more information on non-financial benefits
Reading
What is Non-Financial Compensation (With Types and Benefits)
An article from indeed.com explaining the different types of non-financial benefits and how they may appeal to employees.
Expected Duration: 20 minutes
URL: indeed.com
In this topic we have covered a few of the best-known theories of motivation.
- What are Need-based and Process-based Theories of Motivation?
- Need-based theories
- Maslow’s Hierarchy of Needs
- Herzberg’s Two-Factor Theory
- McClelland’s Acquired Needs Theory
- Alderfer’s ERG Theory
- Process-based theories
- Adam’s Equity Theory
- Vroom’s Expectancy Theory
- McGregor’s Theory X and Theory Y
- Incentives
- Intrinsic vs extrinsic
- Types of financial incentives
- Types of non-financial incentives
You’ve come to the end of this topic, well done! Before moving on to the next section be sure to complete all the exercises and watch all of the videos.
