Motivation in Theory Ch 13

Productivity
 The ratio of outputs to inputs in a production process, such as the output of a given amount
of Capital.
 A measure of a production process’s efficiency in transforming input resources into output
goods or services.

 Total Factor productivity

This is measured by using the formula
Goods and Services (output)
Labour + Capital + Energy + Technology + Motivation (all inputs)
 Partial Factor productivity
This is the ratio of total output to one partial input. E.g. to check the productivity of
Labour only
Goods and Services (output)
Labour (input)
 Efficiency
 How well the inputs, such as raw material, Labour or Capital can be changed
into outputs, such as goods and services.
 It is the ability to minimize waste of the resources available to the organization.
 Effectiveness
 The ability to accomplish the organization’s goals.
*** Real increase in productivity can happen only when work is done efficiently and
that work should be effective.
Productivity = Efficiency + Effectiveness

 Different ways to improve Productivity

 Better, Quick and more reliable machinery
 Better training of workers
 Effective management
 Change in Business size
 Quality of Production process
 Factory and Office layout (Security issues in working area)
 By Improving Motivation

Motivation
 It is the force that initiates, directs and sustains personal behavior and action.
In simple words, a force that moves the employees and managers to higher performance.

 Motivators --- Factors that influence satisfaction

 Motivated --- Being encouraged to do something
 Motive --- A reason for performing well
Advantages of Motivated Staff
High Productivity
Prepared to accept responsibility
Suggestions for improvements
Low Labour turnover
Low absenteeism
 Indicators of De-motivated Staff
High level of absenteeism
Poor performance
Accidents
Poor response
Types of Motivation
Intrinsic (built-in) Motivation
Self-Generated factors like feeling responsibility, Personal behavior etc.
 Extrinsic Motivation
What is done by others to motivate people through rewards, Punishments etc
Theories of Motivation
I. Instrumentality Theory
It assumes that a person will be motivated to work if rewards and penalties are tied directly
to his / her performance. This theory is based on “Scientific Management Methods” by
Taylor.
 Background
At the beginning of the 20th century, U.S.A. has a rapid expansion in industries. At
that time, there was few training programme for workers. Most of the decisions in
production were in the hands workers and foremen. Management did not
understand the situation at the assembly lines and allowed wasteful practices to
continue.
 Aim of theory
Taylor’s scientific principles were designed to reduce inefficiency of workers and
managers.
 Taylor Scientific Approach
Taylor worked to highlight the best way to increase the performance and
productivity by rewarding workers financially. (How did he discover that what the
best way was of carrying out a task? Go to Page 227)
(Pay workers on the basis of results – based on the theory of economic man)
 Problems
Problem with Taylor’s approach is that as Individuals are different and so there is
no guarantee that the theory will suit every one. Also, Taylor ignored factors other
than money e.g. social factors, human needs etc.
II. Content (needs) Theory
The basis of this theory is the belief that an unsatisfied need creates tension and state of
disequilibrium. To restore the balance, a goal that will satisfy the needs is identified, and a
behavior pathway that will lead to the achievement of the goal is selected.
Not all needs are equally important for a person at any time. Some may provide a much
more powerful drive towards a goal than other, depending on the individual’s background
and present situation.
There is no simple relationship between needs and goals. The same need can be
satisfied by a number of different goals. At the same time, one goal may satisfy a number
of other needs.
Example: A new car provides transport as well as an opportunity to impress neighbors.
Maslow’s hierarchy of needs
The most famous classification of needs is the one formulated by Maslow (1954). (See
page 229 in text book figure 13.2.)
Maslow’s theory of motivation states that when a lower need is satisfied, the next highest
becomes dominant and then people turn their attention towards satisfying that need.
Maslow said “Man is a wanting animal”. Only unsatisfied needs can motivate behavior and
the dominant need is the primary motivator of behavior.
  Problems/Limitations
 Different people may have different priorities.
 Some levels do not appear to exist for certain individuals.
 Some rewards appear to fit into more than one levels. e.g. money can be used
to purchase basic needs like food, land etc. but it can also be seen as a status
symbol.
 A big problem is that how can we decide when a level has actually been satisfied.

III. Two Factor Model (Herzberg)

In 1966 Herzberg attempted to find out that what motivate people at work. He asked a
group of professional engineers and accountants to describe incidents in their job which
gave
 Strong feelings of satisfaction
 Strong feelings of dissatisfaction
The result was classified into 2 groups. One is called Motivators and the other is called
Hygiene Factors.
 Motivators --- those things that can lead to workers being satisfied
 Hygiene Factors --- those things that can lead to workers being dissatisfied
 Motivators
 sense of achievement
 sense of promotion
 sense of improvement
 recognition of effort
 responsibility
 nature of the selected job
 Hygiene Factors
 pay
 working conditions
 company policies
 relationship with higher levels of the hierarchy such as managers
The research method adopted by Herzberg is criticized because no attempt was made to
measure the relationship between satisfaction and performance. There is no evidence to
suggest that the satisfaction helps to improve productivity.
 These two concepts should be clear
 Job Enlargement - An increase in the content of a job in order to reduce
demotivation. In Job Enlargement tasks are from the same level
of hierarchy. (No additional responsibility)
 Job Enrichment - An attempt to give employees greater responsibility and
recognition by “vertically” extending their role in the
production process.
IV. Human Relation Theories (Mayo)
Mayo suggested that the most important influence on the way in which people behave at
work was the people they were in contact with during the work.
When people felt they were appreciated for their efforts and when they enjoyed the
company of the people they worked with, they would work more productively. These
experiments gave weight to the ideas of man as a social animal.
The most publicized experiment in this case is known as the “Hawthorne Experiment”.

This theory is based on an experiment between 1927 and 1932 at the Hawthorne Plant of
Western Electricity Company in Chicago. Over a five year period, changes were made in
incentives, schemes, rest periods, working hours, lighting and heating and the effect on
 workers’ productivity was examined. Whatever the changes were made, including a return
to the original condition, output rose.
A Business aiming to maximize productivity must also work and communicate with
informal work groups, making sure that their goals fit in with the goals of the business.
Criticism --- Assuming that workers and the management share the same goals, the idea
may not always exist.
Summary of Motivational Theories

Category Type Theorist Summary of Theory Implications

Instrumentality Taylorism Taylor If we do one thing it Basis of crude
leads to another. attempts to motivate
People will be people by incentives.
motivated to work if Often used as the
rewards and implied reason for
punishments are performance related
directly related to their pay although this is
performance. seldom an effective
motivator.
Content Hierarchy Maslow A hierarchy of five Focuses attention on
(needs) theory of needs needs exist: the various needs that
physiological, safety, motivate people and
social, esteem, self- the notion that a
fulfillment. Needs at a satisfied need is no
higher level only longer a motivator.
emerge when a lower The concept of a
need is satisfied. hierarchy has no
practical significance.
Two-factor Satisfiers/ Herzberg Two groups of factors Identifies a number of
model Dissatisfiers affect job satisfaction fundamental needs i.e.
(1) those intrinsic to achievement,
the job (intrinsic recognition,
motivators or satisfiers) advancement,
such as achievement, autonomy and the
recognition, the work work itself. Strongly
itself, responsibility influences approach to
and growth; (2) those job design (job
extrinsic to the job enrichment). Drew
(extrinsic motivators or attention to the
hygiene factors) such concept of intrinsic
as pay and working and extrinsic
conditions. motivation and the fact
that intrinsic
motivation mainly
derived from the work
itself will have a
longer-lasting effect.
Therefore underpins
the proposition that
reward systems should
provide for both
financial and non-
financial rewards
 Relationship between Motivation and Performance
The basic requirements for job satisfaction may include comparatively higher pay, an
equitable payment system, real opportunities for promotion, considerate management, a
reasonable degree of social interaction at work, interesting and varied tasks and a high
degree of autonomy: control over work pace and work methods.
The degree of satisfaction obtained by individuals, however, depends largely upon their
own needs and expectations and the working environment.
Research has not established any strongly positive connection between satisfaction and
performance.
A satisfied worker is not necessarily a high producer and a high producer is not necessarily
a satisfied worker. The claim that good performance results in satisfaction rather than vice
versa has not been proved.

 Motivation and Money

Money in the form of pay or some other sort of remuneration is the most obvious extrinsic
reward. Money provides the incentive that most people want.
Doubts have been cast by different people on the effectiveness of money because, they
claimed, while the lack of money can cause dissatisfaction, its provision does not result in
lasting satisfaction.