Employee Motivation Approaches

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Motivation is a function of the difference between perceived rewards and perceived costs. If costs rise with increased effort expenditure, so must rewards. If one is to be highly motivated, the reward function must have a positive slope sufficient to offset the accelerating costs encountered at high effort levels and to force the point of maximum satisfaction far to the right on the effort (motivation) axis. If the reward function cannot be adequately sloped, then motivation can be achieved through cost function design by reducing the stress, fatigue, boredom, and the like, one experiences at high effort levels or by making costs an inverse function of effort (using penalties) at low effort levels.

One approach, widely known by managers, is set out by Abraham H. Maslow in his book “Motivation and Personality”. Maslow’s theory of motivation claims that human motives develop in sequence according to five levels of needs. These needs are: psychological (hunger, thirst), safety (protection), social (be accepted, belong to a certain group), esteem (self-confidence, achievements, respect, status, recognition), and self-actualization (realizing one’s potential for continued self-development) (Maslow, 1970). This theory underlines that needs follow in sequence and when one need is satisfied it decreases in strength and the higher need then dominates behavior.

This leads to the statement that a satisfied need is not a motivator. There is a doubt whether this applies in practice to the higher needs as it is likely that self-esteem requires continuous stimulation and renewal. Despite its clarity, it has some limitations which make it unacceptable in all situations. Few attempts have been made to test the validity of Maslow’s ideas. A big problem is that people do not necessarily satisfy higher-order needs through their jobs or occupations, and this cannot be tested. Another point is that he viewed satisfaction as a major motivator and this is not directly related to production. In addition, Maslow does not mention the period between various needs (Brown, 1974).

Another motivation theory is the Expectancy theory. According to Expectancy theory employees work act only when they have a reasonable expectation that their actions will lead to desired goals. It is supposed that employees will work better if they believe that money will follow effective performance, so if money has a positive value for an individual, higher performance will follow. This theory emphasizes performance noting that there must be a recognized goal and relationship between performance and outcome. In general, this theory explains that motivation is a function of the expectancy of attaining a certain outcome in performing a certain act multiplied by the value of the outcome for the performer (Armstrong, 2003).

Outcomes that are highly valued and having higher expectations of being realized will direct a person to make a greater effort in his task. Outcomes with high expectations which are less highly valued (or even disliked) will reduce the effort expended. Other studies on expectations and job performance emphasize the greater importance of intrinsic motivation factors (Managerial Attitudes and Performance, 1968).

All of these studies show that money, if properly used and tied to performance, can help to increase motivation – whether or not or to what extent it increases performance can only be surmised. In contrast to other theories, this theory does not take into account the psychological differences of people, their needs, and different behavior patterns. In all societies there is inequality between people, be it based upon physical, economic, intellectual, or social characteristics. It omits such criteria as performance and absenteeism.

Equity theory states that employees’ feelings are the main issues which influence’ motivation. Employees are motivated if they are fairly treated in comparison with the treatment received by others. Employees evaluate their social interactions in the same way as buying things in the supermarket. Employees evaluate their position with that of others. They conclude the perceived equity of their position. Understanding of the equity of the exchange is influenced by the treatment employees receive from management and other employees. According to equity theory, employees value these various outcomes according to how they perceive their significance. When the ratio of a person’s total outcomes to total inputs equals the perceived ratio of other people’s total outcomes to total inputs there is equity.

When there is an unequal comparison of ratios the person experiences a sense of inequity. The feeling of inequity is apparent when an employee ratio of outcomes to inputs is either less than, or greater than, that of other employees (Robbins, 2002). The pros of this theory are that it helps to explain motivation as certain outcomes in exchange for certain contributions, or inputs. For example, a worker expects career development as an outcome of a high level of performance (input) in helping to achieve important strategic goals. On the other hand, even if inequity causes tension it does not mean that a person is less or more motivated.

While Maslow examines social and psychological motives, as well as expectancy theory equity theory, avoids these markers. For example, researchers suggest that workers prefer equitable pay to overpayment and that workers on piece-rate incentive payment schemes who feel they are overpaid will reduce their level of productivity to restore equity. On the other hand, this issue cannot be applied to all workers because according to psychological peculiarities, not all people what to be equal. In contrast to other theories, equity theory omits the understanding of positive motivation and a feeling of well-being that is achieved not by just improving recognition, achievement, responsibility, but reward.

X and Y theory was formulated by Douglas McGregor in the book “The Human Side of Enterprise” which appeared in 1960. X theory, based on direction and control, explains that: “rhe average person inherently dislikes work and will avoid it if at all possible; as a result, most people have to be coerced, controlled and threatened if they are to put in enough effort to achieve the organization’s goals; the average person prefers to be directed, avoids responsibility, isn’t ambitious and simply seeks security” (McGregor, 2005). Within this theory, management approaches involve hard and soft ones.

The hard approach emphasizes the quantitative, calculative, and business strategic aspects of managing the headcount resource in as ‘rational’ as way as for any other economic factor. Another approach is called the soft model and traces its roots to the human-relations school; it emphasizes communication, motivation, and leadership. The main limitation of this theory is that “the only way employees can attempt to satisfy their high level needs, … is by seeking more compensation” (McGregor, 2005).

The example of a car salesman shows that rewards are more important than intrinsic motivation. For a car salesman, it is crucial to understanding factors and forces that motivate employees and force than to work effectively. Effective motivation process is at the heart of organization development and improved performance. Improved results will not be achieved unless workers can also feel a sense of excitement about their work which results in the motivation to perform well.

The case of a police officer allows us to say that motivation and desire to achieve career development and promotion will dominate rewards and financial incentives. For instance, theory Y is based on the integration of individual and organizational goals and states that for employees work is a natural play and rest, people are self-direction and -control towards achieving objectives they are committed to; people learn to accept and seek responsibility; people seek responsibility.

The advantage of this theory is that it examines the personal goals of employees within organizational context and goals. It allows providing different models of employees’ treatment according to the organizational interests. In looking at the job of work, it indicates that to improve the job, it must be enlarged, that is, made more interesting, giving more responsibility and discretion for decision making. Rewards will be less effective because they do not meet personal goals and needs.

Taking into account the theories analyzed above it is evident that all of them have some limitations. To understand and examine the motivation of people at work, it is important to apply different theories to overcome possible inaccuracy. Maslow’s hierarchy of needs is the most detailed characterization of human needs, but it does not allow to examine the motivation of employees through the role of rewards and satisfaction.

On the other hand, expectancy and equity theories limit understanding of natural human needs consider them in a work-related environment only. X and Y theory could be an ideal one, but McGregor states that “command and control environment is not effective” but in real life, these types of leadership are widely practiced according to the needs and goals of organizations. High ability is necessary for high motivation, but before a company invests in training to upgrade abilities a precise determination of training needs should be made. A form such as the following can be of use. Both the employee and manager can fill out one of these and their responses can be compared.

Bibliography

Armstrong, M. 2003, Human Resource Management. Kogan Page.

Brown, J. A. C., 1974, Social Psychology of Industry. Business Library, Penguin.

Managerial Attitudes and Performance, 1968 Irwin.

Maslow, A. H. 1970, Motivation and Personality edn, Harper & Row.

McGregor, D. X and Y theory. Web.

Reed A. 2001, Innovation in Human Resource Management. Chartered Institute of Personnel and Development.

Robbins, S. 2002, Organizational Behavior. Pearson Higher.

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Employee Motivation Approaches

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