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REVIEW OF MOTIVATIONAL THEORIES
Abstract
Human resources are the most important among all the resources owned by any organization.
As organizations continue to face mounting competitive pressures, they seek to do it with
less, and do it with better quality. To retain efficient and experienced workforce in an
organization is extremely crucial in overall performance of an organization. Motivated
employees can help make an organization competitively more value added and profitable.
This paper provides human resource professionals with a broad understanding of the
importance of pay in motivating employees and in improving their productivity. A new
motivational model has been proposed for the organizations belonging to the IT sector in this
paper. Limitations and guidelines for future research are also provided.
Keywords
Motivation, human, resource, IT sector
1. Introduction
In organizations, motivating people is a highly researched subject as it contributes to both the
quality of working life and the productivity of the organization. Consequently, it is extremely
important for managers to perform a vital role of identifying what motivates an individual,
create an environment to positively support and meet the needs of employees. The present
study is an attempt to find out the applications of certain motivational theories and also the
major factors that motivate employees. The various theories of motivation that have been
considered for this study are given below:
1.1 McClellands Theory of Needs
McClelland, a Psychologist, developed this theory in the late 1940‘s whose research shows
motives are acquired by an association with an internal state of positive or negative affect and
that once an external or internal cue, becomes associated with, and results in a motive.(Trash
& Elliott, 1985). McClelland (1985) describes motivation as the end product of all forms
of action and is anything that influences the tendency to respond. David McClelland, in his
acquired-needs theory, proposed that an individual's specific needs are acquired over time
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and are shaped by one's life experiences. Most of these needs can be classified as either of the
three, namely, achievement, affiliation, or power. A person's motivation and effectiveness in
certain job functions are influenced by these three needs.
Need for Achievement: Characteristics of a person high in achievement are competition,
imagery and high investment. People with a high need for achievement seek to excel and thus
tend to avoid both low-risk and high-risk situations. Achievers avoid low-risk situations
because according to them, the easily attained success is not a genuine achievement. They
need regular feedback in order to monitor the progress of their achievements. They prefer
either to work alone or with other high achievers.
Need for Affiliation: A need for relating to others for opportunities to communicate and
spend time with (Wood et al, 2010). Those with a high need for affiliation need harmonious
relationships with other people and need to feel accepted by other people. They tend to
conform to the norms of their work group. Individuals with traits of high affiliation prefer
work that provides significant personal interaction. They perform well in customer service
and client interaction situations.
Need for Power: A person's need for power can be one of two types, namely, personal and
institutional. Those who need personal power want to direct others, and this need often is
perceived as undesirable. Persons who need institutional power (also known as social power)
want to organize the efforts of others to further the goals of the organization. Managers with a
high need for institutional power tend to be more effective than those with a high need for
personal power.
1.2 Equity Theory
According to equity theory, it is the perception of equitability and in-equitability that
motivates people to work. Equity theory focuses on two sides: the input and the outcome. An
employee compares his or her job‘s inputs with an outcomes ratio. Many times inequities can
lead to an increase in absenteeism and sometimes resignation of an organization (Greenberg,
1999). Equity theory deals with human motives and has wide applications in understanding
organizational behaviour. The Human Resources Development Team of an organisation takes
equity theory under serious consideration when dealing with people, whether in cases of
administering simple tasks like pay, promotions, and recognition or in cases of training,
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improvements, and development. Equity theory will help HRD explain employee‘s behaviour
and provide them with the possible factors that might decrease efficiency and performance.
In this paper, equity theory has been examined in regard to pay, assuming that it is one of the
most important factors responsible for satisfaction and motivation of the employee. This
paper will provide human resource professionals with a broad understanding of the
importance of pay in motivating employees and in improving their productivity.
1.3 Expectancy Theory
Developed by Victor Vroom, expectancy theory predicts how much effort a person will exert
to achieve a task (Wood et al, 2010), is from an individual decision making basis model
(Geiger & Cooper, 1996) which is determined by a person‘s beliefs about effort-performance
relationship and work outcomes (Wood et al, 2010).This theory is called a process theory,
which is based on understanding the cognitive processes a person uses that influences their
behaviour. This includes a person‘s beliefs and reasoning for needing rewards to fill desired
needs (Wood et al, 2010).
Vroom's expectancy theory assumes that the behaviour of the person results from conscious
choices among alternatives whose purpose it is to maximize pleasure and to minimize pain.
Vroom realized that an employee's performance is based on individual factors such as skills,
knowledge, personality, experience and abilities. He stated that effort, performance and
motivation are linked in a person's motivation, and thus, used the variables Expectancy,
Instrumentality and Valence to account for this.
Expectancy is the belief that increased effort will lead to increased performance. It refers to
employees‘ different expectations and levels of confidence about what they are capable of
doing – the belief that effort will lead to first order outcomes.
Instrumentality refers to the perception of employees whether they will actually receive what
they desire, even if it has been promised by a manager. It is the perceived link between first
order and second order outcomes.
1.4 Job Characteristic Model
The Job Characteristics Model (JCM) was designed to evaluate and improve the ―jobs‖ of
those employed by others. The primary purpose was to diagnose the existing jobs, and
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evaluate the effects of job changes on employees for outcomes such as productivity,
motivation and satisfaction (Hackman & Oldham, 1975). This approach focused on the work
of the job itself as opposed to other job design focused perspectives (Hackman & Oldham,
1980).
1.5 Maslow’s Hierarchy of Needs
Maslow's hierarchy of needs is a theory in psychology proposed by Abraham Maslow in his
1943 paper "A Theory of Human Motivation" in Review. According to him if people grew in
an environment in which their needs are not met, they will be unlikely to function as healthy
individuals or well-adjusted individuals.
Maslow theorised that people have five types of needs and that these are activated in a
hierarchical manner. This means that these needs are aroused in a specific order from lowest
to highest, such that the lowest-order need must be fulfilled, before the next order need is
triggered and the process continues. According to Maslow we need to know where a person is
on the hierarchical pyramid in order to motivate him/her. Then we need to focus on meeting
that person‘s needs at that level (Robbins, 2001).
Below is a summary of these needs that in this thesis are divided into Hygiene needs
(Physiological, safety, social needs) and Growth needs (esteem, self-actualisation needs).
Physiological needs are the needs at the bottom of the triangle. This includes the need to
satisfy the fundamental biological drives such as food, air, water and shelter. According to
Maslow says, organisations must provide employees with a salary that enable them to afford
adequate living conditions. The rationale here is that any hungry employee will hardly be
able to make much of any contribution to his organisation.
Safety needs occupies the second level of needs. Safety needs are activated after
physiological needs are met. They refer to the need for a secure working environment, free
from any threats or harms. The rationale is that employees working in an environment free of
harm do their jobs without fear of harm.
Social needs represent the third level of needs. They are activated after safety needs are met.
Esteem needs represent the fourth level of needs. It includes the need for self-respect and
approval of others. Organisations introduce awards banquets to recognise distinguished
achievements.
Self-actualisation needs occupy the last level at the top of the triangle. This refers, need to
become all that one is capable of being to develop ones fullest potential. The rationale here
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holds to the point that self-actualised employees represent valuable assets to the organisation
human resource.
1.6 Goal Setting Theory
According to the theory, there are two cognitive determinants of behaviour: values and
intentions (goals). A goal is defined simply as what the individual is consciously trying to do.
Locke and Latham postulate that the form in which one experiences one‘s value judgments is
emotional. That is, one‘s values create a desire to-do things consistent with them. Goals also
affect behaviour (job performance) through other mechanisms. Goals motivate people to
develop strategies that will enable them to perform at the required goal levels. Finally,
accomplishing the goal can lead to satisfaction and further motivation, or frustration and
lower motivation if the goal is not accomplished.
Goals Need to Be Specific: Organization members perform at higher levels when asked to
meet a specific high-performance goal. Specific goals (often quantified) let organization
members know what to reach for and allow them to measure their own progress.
Goals Must Be Difficult but Attainable: A goal that is too easily attained will not bring
about the desired increments in performance. The key point is that a goal must be difficult as
well as specific for it to raise performance. However, there is a limit to this effect. Although
organization members will work hard to reach challenging goals, they will only do so when
the goals are within their capability. As goals become too difficult, performance suffers
because organization members reject the goals as unreasonable and unattainable. A major
factor in attainability of a goal is self-efficacy (Bandura, 1997). This is an internal belief
regarding one‘s job-related capabilities and competencies. If employees have high self
efficacies, they will tend to set higher personal goals under the belief that they are attainable.
The first key to successful goal setting is to build and reinforce employees ‗self-efficacy.
Goals Must Be Accepted: Goals need to be accepted. Simply assigning goals to organization
members may not result in their commitment to those goals, especially if the goal will be
difficult to accomplish. A powerful method of obtaining acceptance is to allow organization
members to participate in the goal-setting process. Some individuals may reject imposed
goals, but if they have self-efficacy, they may still maintain high personal goals to
accomplish the imposed goals (Bandura, 1997).
Feedback Must Be Provided on Goal Attainment: Feedback helps organization members
attain their performance goals. Feedback helps in two important ways. First, it helps people
determine how well they are doing. For example, sports teams need to know the score of the
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game; a sharpshooter needs to see the target; a golfer needs to know his score. The same can
be said for a work team, department, or organization. Performance feedback tends to
encourage better performance. Second, feedback also helps people determine the nature of
the adjustments to their performance that are required to improve.
Deadlines Improve the Effectiveness of Goals: For most employees, goals are more
effective when they include a deadline for completion. Deadlines serve as a time-control
mechanism and increase the motivational impact of goals. Being aware that a deadline is
approaching, the typical employee will invest more effort into completing the task. In
contrast, if plenty of time remains for attaining the goal, the employee is likely to slow down
his or her pace to fill the available time. However, when deadlines are too tight, particularly
with complex tasks, the quality of work may suffer.
2. Literature Review
The purpose of this literature review is to present an overview of the theories that explain
motivation in the workplace and address the factors that contribute to job satisfaction
(motivation) or cause job dissatisfaction. The various theories of motivation presented in this
paper focus on how each theory supports the other and how they are applicable in the
workplace. The three most important areas for motivation, namely, training and development,
appraisal, and compensation and benefits have been included.
2.1 McClelland’s Theory
Motivation plays an important role in today‘s work environment as motivated employees are
more productive employees. However, the ways in which the organization motivates its
employees have to be improved from time to time. ‗A motivational strategy is any effort to
induce employees to initiate and sustain activities that can directly or indirectly improve
service productivity‘ (Greiner 1986, p. 82). Motivation can have an effect on the output of
your business and concerns both quantity and quality.
McClelland proposed that an individual‘s particular needs are obtained over time as a result
of life experiences. Most of these needs fall into three general categories of needs which can
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be class as need for achievement, affiliation or power. The strengths of the McClelland‘s
acquired needs theory is that it provides a clear picture for the organization and the managers
to know which type of job are suitable for the employees and which types of people that can
make the organizations more successful.
McClelland and Burnham have identified two types of power managers: those who seek
personal power and those who seek institutional power‘ (Lyden 1976, p. 201). However,
managers who seek for institutional power are more successful as they can create favourable
condition at work. Wagner and Swanson (1979, p. 66) have attributed the success of higher
power needs people to their ability to create a greater sense of responsibility and team spirit
in their organizations. This gives the organization, a clear picture of the employees that are
suitable to be promoted and become a manager. Therefore, management should provide
people with high need for power the opportunity to manage other. In addition, this will also
give the manager a guideline on how to become a good manager because as stated manager
who seek institutional power are more successful.
Furthermore, a major problem with affiliative managers is that due to the concern of the well-
being of the subordinates, he/she might be willing to make exceptions to the company‘s rule
in responding to his employees‘ needs, thus violating one of the bureaucracy‘s basic
principles of fairness (Lyden 1976, p. 201). However, this could be stated as a weakness for
the theory, as managers should not always look at fairness when judging, because different
situation require different types of decision. For example, two employees with different
situation at the same time wanting to apply for leave, one saying that he want to go for a
vacation and one saying that he needs to go back to his home town to attend his parent‘s
funeral. If the manager were to be fair both of the employees are not to be given any leave,
however the manager should act accordingly.
Besides that, the weaknesses of the McClelland‘s acquired needs theory is that it serves little
purpose in the public sector. As stated in the article, public sector employees are being
motivated by job security and stability, teamwork and worthwhile service to society, while
eschewing monetary rewards, prestige and the desire for challenge and autonomy
(Jurkiewicz, Massey & Brown 1998, p. 231). From here, we can see that public sector
employees are only high in affiliation and low in achievement and power. When this happen,
superiors will find it hard to delegate task and to create a competitive environment between
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the employees in public sector, because they do not like challenging task and that most of
them are very high in affiliation which are suitable in providing customer service.
People with different needs should be motivated differently and this makes it extremely
important for the organisation to identify the type of employee, so that he can be motivated
using the appropriate methods. High achievers should be given challenging projects with
reachable goals, and provided frequent feedback. While money is not an important motivator,
it is an effective form of feedback. Employees with high affiliation need perform best in a
cooperative environment. On the other hand, management should provide power seekers the
opportunity to manage others.
A way of using McClelland‘s theories in organisational development could be through
analysing the employees needs and through that their personalities in order to create an
effective team, where each team member could do the best according to his or her needs.
People with a high need for affiliation identify themselves as good socialisers with
strong social skills. This can be shown by a test measure called the ‗affiliative choice
measure‘ where people are asked to rate how highly they liked doing fifteen different types of
activities with friends and how high they rated themselves in social situations (McClelland,
1985).
2.2 Equity theory
Studies bearing on equity theory divide conveniently into two groups: those studying the
effects of underpayment and those dealing with the effects of overpayment. Equity theory
suggests that employee perceptions of what they contribute to the organization, what they get
in return, and how their return-contribution ratio compares to others inside and outside the
organization,' determine how fair they perceive their employment relationship to be (Adams,
1963). Perceptions of inequity are expected to cause employees to take actions to restore
equity; such actions (e.g., quitting or lack of cooperation) may not be helpful to the
organization.
Two recent empirical studies provide good examples of the types of counterproductive
behaviours that can occur as a result of perceived inequity. In the first study,
Greenberg(1990) analysed how an organization communicated pay cuts to its employees, and
its effects on theft rates and perceived equity. In this study, two organization units received
15% across-the-board pay cuts. A third unit received no pay cut and served as a control
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group. Also, the reasons for the pay cuts were communicated to the two pay-cut groups in
different ways. In the "adequate explanation" pay-cut group, the management expressed
remorse, and also provided a significant degree of information to explain its reasons for the
pay cut. In contrast, the group with "inadequate explanation" received much less information
and there was no indication of remorse for the same. The control group received no pay cut,
and thus no explanation was provided.
The control group and the two pay-cut groups began with the same theft rates and equity
perceptions. After the pay cut, the theft rate in the adequate explanation group was 54%
higher than in the control group. However, in the "inadequate explanation" condition, the
theft rate was 141% than in the control group. In this case, communication had a large and
independent effect on employees' attitudes and behaviours.
Cowherd and Levine (1992) used a sample 102 business units in 41 corporations to examine
whether the size of the pay differential between lower-level employees and top
management had any impact on product quality. According to Cowherd and Levine,
individuals often compare their pay to that of people higher in the organization structure. If
lower-level employees feel inequitably treated, they may seek to reduce their effort to achieve
equity. Quality was defined in their study as customer perceptions of the quality of goods and
services. They hypothesized that citizenship-behaviours, such as freely offering to help others
and correcting errors that would ordinarily escape notice, would be less likely if pay
differentials between hourly and top managerial employees were large. Their results
supported this hypothesis, thus suggesting that organizations need to take care of the potential
adverse motivational consequences of executive pay for the motivation of other employees.
Organizations are attempting to develop a work force that is self-managing and autonomous,
a sense of justice becomes even more essential as the glue that holds the organization
together and maintains teamwork (Cropanzano & Kacmar, 1995). The essential idea behind
equity theory is that when individuals work for an organization they present certain inputs
(e.g., abilities or job performance). Based on their input, people expect to get something in
return. For example, when people input high performance they expect to get a high pay level
(Cropanzano, 1993). Adams (1965) expressed this as a ratio of outcomes per inputs. The
difficult thing for workers is to determine when a given ratio is fair. Adams argued that
individuals determine fairness by comparing their ratio to the ratio of some comparison other;
this allows someone to see if a reasonable amount were obtained.
Equity theory predicts that low rewards produce dissatisfaction; this would in turn motivate
people to take action and reduce the discrepancy between their ratio and the ratio of the
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comparison other. For example, one might reduce inputs (lower performance), or if possible,
increase outcomes. According to Adams (1965) when a person is over-rewarded he/she might
experience guilt, shame, or remorse instead of anger or resentment. These emotions are
negative and therefore should motivate individuals to move toward reducing the imbalance.
Because individuals do not usually forego positive outcomes, people are generally likely to
respond by increasing inputs. That is, they are expected to work harder.
For the purpose of this research paper an attempt would be to determine the effect pay
would have on employees. Pay in the workplace is considered a potentially motivating force
or learning device, and a highly rewarding outcome. It is considered important because it
refers to decisions made by the employee as to how high or good his/her contribution to the
organization will be. Pay is important to the extent it provides performance feedback
(Thierry, 1992). In the United States, a capitalistic society, money plays an important role in
the society. Equity theory deals with this issue as a source of motivation (Rice, 1993).
Employees realize that pay will lead to some security in living, recognition by peers, and
status in his or her professional group. In other words, pay is important to the extent that it is
seen as a way to realize more motives; even those employees who are dissatisfied with other
factors in their job (e.g., working conditions), will accept more pay to compensate for that
lack of satisfaction. According to Thierry (1992), pay will represent the following:
1. Salient motives: Pay is often seen as the vehicle that leads to the satisfaction, and is
expected to provide more security, more status, less anxiety, and more recognition.
2. Relative position: Pay may refer to the degree of progress in the employee‘s task
performance relative to task goals set, and thus informs us about the effectiveness of
performance behaviour. It also provides more opportunity to correct one‘s course of action.
Pay reflects how well someone‘s performance has been relative to others.
3. Control: Pay may convey to an employee how effective he or she has been in affecting the
behaviours of others.
Most of the research reviewed emphasized that underpayment inequity is associated with
negative attitude and dissatisfaction. Management needs to be concerned mainly with pay
equity since it is one of the most important outcomes for employees (Huseman, R. C. &
Hatfield, J. D, 1990) identified the top ten system outcomes and rated pay third after sense of
accomplishment and doing meaningful work.
Due to underpayment inequity, individuals may follow different approaches to restore equity,
one of which redefines their reference group (Watson, Storey, Wynarczyk, Keasey, & Short,
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1996). Data was collected from 721 employees (553 employees and 168 managers) to
investigate the role of reference groups outside and inside the organization within the
framework of equity theory. Attitude towards pay was used as the base for comparison.
Therefore, the findings indicated that comparison to others outside and inside the
organization, contributes to pay satisfaction for employees (Ronen, 1986).
Goodman (1974) studied 214 managers in a single firm. The purpose of the study was to
show the relationship between comparison with referents and pay satisfaction. He used three
classes of referents (other, self, and system). ―Other‖ represents someone in the same
organization, but in a different designation. ―Self‖ refers to the input/outcome ratio from the
past job. ―System‖ refers to the contract between the employer and the employee. The
employees when comparing themselves to referent other, were the major determinant in their
pay satisfaction (Goodman, 1974).
Summers and DeNisi (1990) retested the Goodman study but tested the study on nationwide
level. The study involved 1043 managers from all levels of restaurant chain. Sixty-five
percent (65%) reported have feelings underpaid and the majority (34.5%) used self as a
comparison group. This study supports the hypothesis that comparison with referent (other,
self, system) is a major determinant of pay satisfaction. This supports Adams equity theory
that people tend to use a number of various referents simultaneously.
Equity theory has received more attention lately from human resource professionals,
especially regarding the fairness of outcome. Inequity is a major concern of industry, labour,
and government. It is not enough for the fairness of exchange between employees and
employer to be perceived by the employees as simply as an economic matter, an element of
relative justice is involved as well.
2.3 Expectancy theory
While Maslow and Herzberg look at the relationship between internal needs and the resulting
effort expended to fulfil them, Vroom's expectancy theory separates effort (which arises from
motivation), performance, and outcomes.
According to Igalens and Roussel (1999, p. 1006), the expectancy theory clearly indicates
that during the motivational process, the attitudinal factors drive the individual to produce
effort to perform better. Examples of attitudinal factors are the extrinsic or intrinsic rewards
felt by the employee, and the expectancy of whether the employee will succeed or fail in his
or her task. Therefore, in the process of motivating the employees, the manager might work
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on the attitudinal factors which can drive the individual to perform better. Thus, in order for
the employee to produce effort to perform better, the manager can either discuss with the
employee on the reward he or she wants, and have two-way communication when the task is
being carried out. This will help the manager find out if the employee is facing any problem
and try to eliminate the problem to increase productivity of the employee.
The weakness of expectancy theories is that the relationship between effort and performance
is not be perfect, since it is moderated by both intrinsic and extrinsic factors, ie, one‘s skills
and knowledge and by the difficulty of the task (Ferris, Beehr & Gilmore 1978, p. 342). The
difficulty of the job can only be determine by the employees himself or herself, because each
of the employees have different level of skills and knowledge and that the manager cannot
assume that the job which is easy for a particular employee, is also easy for the other
employees.
Another weakness of the expectancy theories is that the specification of an outcome from
some choice of job behaviour is more complex and open ended (Connolly 1976, p.39). A
manager might assume that giving several positive outcomes is enough to motivate their
employees. However, this may be wrong because one outcome may lead to another in an
extended sequence. For example, choosing to work hard may be associated to increase in
wages, however, this does not stop there because demand for the employees will increase
from time to time. Managers might find it hard to cope with employees demand as their
demands might change or remain the same; and the only way to know is through two way
communication or having feedback from time to time.
2.4 Job Characteristic Model
More than two decades of empirical research has inspired over 200 studies conducted on
attitudinal and behavioural outcomes, based on job characteristic model (Ambrose and Kulik
1999). Based on these researches, two main conclusions have been proposed by Parker et al.
(2001). First, the collective effects of the core job characteristics on affective responses
(satisfaction and motivation) have been largely supported, but those for behavior (i.e. work
performance, turnover and absence) less consistently. Second, the more particular features of
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the model remain unproven. For example, the specified links between the job characteristics
and the critical psychological states have not been confirmed.
Hackman and Oldham had developed the job characteristics model as an alternative to job
design for conceptualizing traditional jobs, and took into account the utility of certain aspects
of work in achieving positive outcomes, such as motivation and satisfaction. Previous
findings on job characteristics, show that certain job characteristics can lead to desirable
outcomes, such as performance, high levels of motivation and satisfaction (Fried & Ferris,
1987). Another study confirmed the same, that if the mentioned job features are present in a
job, the job incumbent will be more likely to have high internal work motivation, high quality
and performance, high satisfaction with the work and thus, low absenteeism and turnover rate
(Gomez-Mejia, Balkin, & Cardy, 2005; Matteson, 2002). Research within the field of
entrepreneurship has been carried out as well, concluding that the promise of more desirable
job characteristics can motivate those currently employed by others to start their own
ventures (Cromie, 1987).
Table 1: Brief List of JCM Milestones Relevant to the Current Study
Author Year Contribution
Hackman & Oldham 1974 Job Diagnostic Survey (Assessment tool for JCM)
Hackman & Oldham 1975 Model for diagnosing job
Hackman & Oldham 1976 Motivating Potential Score – Score for motivating
potential of a job
James & Tetrick 1986 Established relationship for job characteristics and
satisfaction
Fried & Ferris 1987 Stronger relationship between job characteristics and
psychological outcomes than behavioral outcomes (meta-analysis)
Behson, Eddy, & Lorenzet 2000 Two stage model of JCM without critical psychological
states results in better fit than three stage model (SEM)
Humphrey, Nahrgang, & Morgeson 2007 Proposed expanded JCM
In this study, work characteristics are subdivided into three clear categories. The division is
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developed from classification from the study by Janssen, Jonge & Bakker (1999) and Houkes
et al. (2001). The first category in this study is called internal job factors, which are directly
related to the job activity. This category focuses on the work content and draws heavily from
Hackman and Oldham‘s work characteristics model.
Autonomy: In individualist cultures, autonomy is among the most strongly held values (Hulin
and Judge 2003). However, we have to consider that autonomy is only important in those
jobs where the work is not routine or predictable (Latham and Pinder 2005). Three aspects of
work autonomy and responsibility are clarified in Morgeson and Campion (2003): timing
control, method control and production responsibility. Timing control reflects the opportunity
to determine the scheduling of work. Method control refers to the choice of how to carry out
tasks. Production responsibility concerns the extent to which an individual can make errors
that can result in loss of output. This research focuses on all the three aspects of autonomy.
The second category characterizes factors outside the job activity, thus focusing on the
conditions of employment. The relevant and selected variables of this factor are salary and
job security, that are assumed to influence the outcome variables (Houkes, Janssen, Jonge and
Nijhuis (2001), Morgeson and Campion (2003)).
The third category, called as social job factors, focuses on the social environment
at work. Social environment is considered as an important factor in work design. Research
conducted in the stress literature has emphasized the importance of social support. Social
support can come from co-workers or supervisors and might serve to buffer workers from a
number of negative outcomes. The social environment dimension has received less research
attention, but recent research on job and task interdependence has begun to address this gap.
More work is clearly needed into other features of the social environment, such as feedback
from others related to important work design outcomes (Morgeson and Campion 2001).
Within the category of social job factors, the selected variables are feedback from others and
co-worker relations.
Feedback from others: The work of Hackman and Lawler (1971) suggested that feedback
from others, i.e., co-workers, leaders etc., represents an important aspect of work. Also
Parker et al. (2001) highlighted feedback as an important job characteristic.
Co-worker relations: Co-worker relations is included as a factor within the social job factor
category due to results from the qualitative pilot study and due to demand from literature to
give social environment more attention in a work design setting (Morgeson and Campion
2003).
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Today, JCM is identified as one of the key employee motivation theories for organizations
(Ramlall, 2004). The tenets of this approach are that the characteristics of a job lead to critical
psychological states, which lead to personal and work outcomes with each step being
moderated by one‘s need for growth. There are five core job characteristics, namely, skill
variety, task identity, task significance, autonomy, and feedback. Skill variety is ostensible
variety and intricacy of skills and talents required by a job to perform it (Buys, Olckers, &
Schaap, 2007). Task identity requires from a worker to perform all the tasks
necessary to complete the job from beginning to the end of the production process; whereas
the worker‘s feeling for his job regarding its meaningful for his colleagues and organization
is termed as task significance (Hackman & Oldham, 1976). Autonomy refers to the situation
where the job provides its owner the freedom and power to exercise his own authority while
taking the decision
(Buys et al., 2007). When the employee gets direct and clear information about his
performance on his job, it is known as the feedback characteristic of job (Hunter, 2006).
All these job characteristics are specified as determinants of three ‗critical psychological
states‘: skill variety, task identity and task significance together contributing to ‗experienced
meaningfulness‘; autonomy to ‗experienced responsibility‘; and feedback to ‗knowledge of
results. In turn, the critical psychological states are cast collectively as promoting work
satisfaction, internal work motivation, performance and reduced absenteeism and employee-
turnover. The job characteristic model assumes that autonomy and feedback are more
important than the other work characteristics.
The personal and work outcomes are high internal work motivation, high quality work
performance, high satisfaction with work, and low absenteeism and turnover (Hackman &
Oldham, 1975, 1976). While these characteristics had been originally designed for the jobs of
those employed by others, they also apply to the self-employed. In particular, autonomy is
identified as a primary motivator by entrepreneurs for creating their own venture (Kuratko,
Hornsby, & Naffziger, 1997).
2.5 Maslow’s hierarchy of needs
Maslow proposed that if people grew up in an environment in which their needs are not meet,
they would be unlikely to function healthy, well-adjusted individuals. Research testing
Maslow‘s theory has supported the distinction between the hygiene and growth needs but
Page 16
showed that not all people are able to satisfy their higher-order needs on the job. Maslow‘s
theory has not received a great deal of support with respect to specific notion it proposes
(Greenberg &Baron 2003, p195). To them this model is theorised to be especially effective in
describing the behaviour of individuals, who are high in growth need. Employees who are
different to the idea of increasing their growth will not realise any physiological reaction to
their jobs.
Centers & Bgental (1966) in their survey carried out among a cross-section of the working
population in Los Angeles, posited ―background factors, altitudes and aspirations affects
workers needs, expectations and situation assessment‖. According to Graham & Messner
(1998, p.196) there are generally three major criticisms directed to the need theory and other
content theories of motivation. (A) There is scant empirical data to support their conclusions,
(b) they assume employees are basically alike, and (c) they are not theories of motivation at
all, but rather theories of job satisfaction. This was supported by the views of Nadler &
Lawler (1979) in Graham & Messner (2000, p 188).
Nadler & Lawler (1979) cited in Graham & Messner (2000,p.198) were also critical of the
need theory of motivation. They argue that the theory makes the following unrealistic
assumptions about employees in general that: (a) all employees are alike (b) all situations are
alike and that (c) there is only one best way to meet needs. Another critic to this view was
Basset-Jones & Lloyd (2004, p 961).Basset-Jones & Lloyd (2004, p 961) presents that in
general, critics of the need theory argue that it is as a result of the natural feeling of
employees to take credit for needs met and dissatisfaction on needs not met.
2.6 Goal setting theory
Goal setting is a general theory that can be applied in a multitude of work situations. Support
for the theory comes from individual and group settings, laboratory and field studies, across
different cultures and involves many different tasks. Research indicates that specific goals
help bring about other desirable organizational goals, such as reducing absenteeism,
tardiness, and turnover (Locke & Latham, 2002)
Edwin Locke and Gary Latham (1990), leaders in goal-setting theory and research, have
incorporated nearly 400 studies about goals into a theory of goal setting and task
Page 17
performance. The strongest support relates to the relationship between specific, difficult goals
and task performance. A meta-analysis performed by Tubbs (1986) supported the concept
that specific, difficult goals are positively correlated to improved performance. Other
research obtained similar conclusions and further stated that, ―If there is ever to be a viable
candidate from the organizational sciences for elevation to the lofty status of a scientific law
of nature, then the relationships between goal difficulty, specificity/difficulty, and task
performance are most worthy of serious consideration‖ (Mento, Steel, & Karren, 1987, p.
74). DeWalt, et al. (2009) found a direct correlation between those who achieve set goals and
the motivation to create additional goals or add more challenging aspects to the current goal
based on feedback. Parker, Jimmieson, & Amiot (2009) found that autonomy in the
workplace improves self-efficacy, which improves performance towards reaching goals.
Within this idea is the vision and structure that goal setting provides, which helps to motivate
individuals and teams to perform better and do more (Sorrentino, 2006).
Goal setting is not without its critics. Ordóñez, Schweitzer, Galinsky, and Bazerman (2009)
stated that the theory is over-prescribed and can potentially cause harm to an organization.
Care should be taken in applying goal setting due to the possible unintended side effects. The
arguments levied against the theory are not new and have been discussed by previous
researchers. For example, Ordóñez, et al. (2009) argued that unethical behaviour can result
from motivating employees to meet specific and challenging goals. In an effort to reach a
sales quota, salespeople may either fudge numbers or lie to customers in order to reach their
monetary goal. According to the authors, this focus on goal attainment can actually promote
unethical behaviour by creating a ―focus on ends rather than the means‖ (Ordóñez, et
al., 2009, p. 12). Not only was negative behaviour addressed by Latham & Locke, but the
means to mitigate this issue were offered as well, such as offering progressive awards toward
goal attainment, organizational control systems, and an ethical workplace culture (O'Neil &
Drillings, 1994).
The preponderance of empirical research supporting goal-setting theory illustrates its utility
as a method to motivate individuals and improve organizational outcomes. While some
caution may be in order, Locke and Latham (2002) argue that failures resulting from the
theory are usually due to errors in its application and can often be prevented. The subject of
human motivation is vast and complex. No single theory fully explains every aspect of what
motivates individuals to perform better.
Page 18
2007 Study by Vigoda-Gadot and Angert35
A study conducted in 2007 by researchers EranVigoda-Gadot and Larisa Angert at the
University of Haifa found connections between the aspects of goal-setting theory, specifically
in the realm of feedback, and organizational citizenship behaviour (OCB). This study used
the Management by Objectives (MBO) process to study aspects of goal-setting theory beyond
the goals themselves, by examining desirable types of behaviours in organizations such as the
enhancement of team spirit and job attachment, social support, and bolstering performance
overall beyond the goals set by management (Vigoda-Gadot&Angert, 2007, p.
20).Participants in this study were students working in a social service capacity with needy
children in Israel.
The study set the independent variables of goal setting, job satisfaction, job commitment,
organizational justice, and job feedback against the dependent variables of formal
performance and OCB (Vigoda-Gadot&Angert, 2007, p. 123). Since the researchers were
already in agreement about Locke and Latham's argument that the setting of specific goals
was better than vague ones, their focus was on how behaviours not related to goals would be
increased by the processes of goal setting. The findings concluded that though the process is
important, the key remained in feedback regarding both the formal goals set during the
process as well as feedback regarding other informal behaviours. Specifically, that "managers
should consider the positive effect of feedback on formal performance, but even more
importantly, on informal work behaviours such as altruistic OCB or compliance OCB"
(Vigoda-Gadot & Angert, 2007, p. 127). This is important since it is not only results that
drive an organization, but the people who fit within it and how they conduct themselves with
others both in their own group and throughout the company, both in representation and group
harmony.
3. Methodology
The data were collected from employees of diverse organizational background to gain wide
representation of organizational culture. In all, 110 self-administered questionnaires were
distributed among the employees working in the IT sector. In addition to this, 20 personal
interviews were conducted to obtain detailed insights from the employees. The participation
in survey was voluntary and confidentiality of responses was ensured.
3.1 Data Collection
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A survey research design was used in the current study to examine the effect of training &
development, appraisal and compensation on work motivation. The survey research design
was a suitable choice for two reasons: (a) A cross-sectional study the data was collected at
one point in time, and (b) The study aimed at measuring the importance of the various factors
that are important for motivating employees. The respondents were asked about their
preferences and reactions to various situations that employees face on a daily basis, and their
response was used to deduce the most important factors for motivation.
The current research followed the procedure, which integrated the construction of precise
measuring instrument in shape of a questionnaire, which comprised of 30 questions in the
beginning. In an exploratory phase the questionnaire was pre- tested and the items that
challenged the reliability and validity of the scale were eliminated. The final questionnaire
administered contained 23 questions. The questionnaire was administered to people working
in the IT sector with work experience between 1 to 5 years. The questionnaire was mailed to
most of them, and interviews were conducted for 20 employees.
3.2 Data Processing
Tools used : SPSS,MS-EXCEL, Google-Docs
The questionnaire was floated using google-docs software, which facilitated avoiding
incompleteness and inconsistencies. This helped detect errors and omissions, by correcting
them when possible, and certifying that minimum data quality standards are achieved. It also
helps eliminate initial screening, which is generally carried out to determine if the responses
are legible, consistent and complete. Before the data are tabulated and analysis carried, the
researcher is required to edit the same suitably to make it more meaningful.
The data was entered using SPSS and simple frequencies were run on the summated scores
for both the variables, which showed the minimum, and the maximum summated score for
both the variables and also the frequencies for all the summated scores of the whole data.
Cronbach‘s Alpha Cronbach (1951) was used to check the reliability of the scale and internal
consistency. The value .74 of the Cronbach alpha is a good indicator of the instrument‘s
internal-consistency reliability. In addition to this, a personal interview of 20 employees were
conducted which helped in providing deeper insights about employee motivation.
Page 20
3.3 Handling of Blank Responses
The respondents leave some questions unanswered or blank. De Vaus (2002) has suggested
that the blank responses should be assigned the middle value. According to Converse and
Stanley Presser (1986), it is the editor‘s responsibility to decide which of the responses is
both consistent with intent the of the question and other information in the survey and most
accurate for this individual respondent. In this study in order to avoid any bias or
misunderstanding, the all the questions were made mandatory to answer, ie, the questionnaire
would not be submitted unless the respondent answers all the questions.
4. Data Analysis
4.1 McClelland’s Theory
Based on the response, we found that a vast majority of the people prefer maintaining
friendly rather than professional relations at the workplace. This depicts the need to maintain
good relations with people around one-self, and points out to a strong need for affiliation at
the workplace. However, as far as completion of the work is concerned, most of the people
do not have absolute work preferences. When asked about their work reference, most of them
responded stating that they did not mind working on individual tasks or group assignments as
well.
Another observation made is that a majority of the people prefer to discuss a matter upfront in
case of disagreement. This depicts the need for power among the respondents. However, it
has been observed that the need is stronger when things take place against their will. For
example, a majority of the same sample of respondents do not mind someone else leading the
group most of the times.
Most of the respondents inquire about the progression of the work on a regular basis, and take
necessary inputs from their superiors to do the work in a better manner. Also, the respondents
tend to challenge themselves, to take up work beyond their work description. This depicts a
strong need for achievement among the respondents.
Page 21
4.2 Expectancy Theory
The motivational force of the sample was found out by assigning values to all the three
components, ie, expectancy, instrumentality and valence. The product of the scores of all the
three components was found out to determine the strength of expectancy theory of motivation
in each case. Because the motivational force is the product of the three perceptions, if any one
of their values is zero, the whole equation becomes zero.
Based on the results, we derived that expectancy and instrumentality are more important
motivators, as compared to valence. The score of valence was significantly less, as compared
to expectancy and instrumentality.
4.3 Equity Theory
The need for equity is tested through the questionnaire. The views of the respondents
regarding internal and external equity have not been captured separately. However, the key
issue is capturing the importance of equity in the views of the concerned person. Most of the
responses did acknowledge the importance of equity.
4.4 Goal Setting Theory
A majority of employees clarify their doubts as opposed to using their own judgement if the
given task is ambiguous. This shows that employees believe that their goals should be
specific. When it comes to deadlines, a major proportion of the employees, especially the
ones who perform managerial tasks, feel that goals should have deadlines. The responses also
showed that there are very few employees who want the organisation to set goals for them.
Most employees believe that goal setting process should be participative of both, the
employee and his manager.
4.5 Maslow’s Hierarchy of Needs
The responses show that a vast number of employees believe that compensation, working
conditions and good interpersonal relations are basic requirements. This demonstrates that the
lower order needs forms the hygiene factor which is minimum employee requirement. At the
same time, most employees rated self-respect and growth factors as highest. This shows that
the need for self-esteem and self-actualization is higher in our target group.
Page 22
4.6 Job Characteristic Model
As opposed to gaining expertise in same role, majority of employees preferred working on
different roles to learn new things. This shows that skill variety is important to the
employees. There were very few employees who restricted themselves to working on the
same component for a long period of time. Employees also feel that task identity is an
important factor. Almost all the employees feel that their jobs should be significant and add
value to the company and to the society as well. Another important factor that employees
think affects their motivation is the freedom to work. Responses show that employees tend to
perform better when they have autonomy of their tasks. However, employees also feel that a
certain degree of autonomy should be maintained to avoid absolute ownership. Similarly,
employees feel that feedback mechanism is a crucial factor for enhanced performance. A
majority of employees were open not only to positive feedback but also negative feedback.
5. Proposed model for motivation
Based on our study of both traditional and modern motivational theories, and our research
through questionnaire data, we would like to propose a new model for motivation. Below are
the four factors that are most important to employees having a work experience between one
to five years in Information Technology industry.
5.1 Good Work Environment
Nothing stunts productivity like a sour working environment. Indeed, employee happiness is
directly linked to motivation, according to a study published by the Health. Creating a
positive work environment can potentially have a big impact on employee motivation. One of
the most important factors mentioned by the majority of respondents was having an open,
safe, and welcoming environment. A friendly, supportive, and caring environment drives
employee motivation.
Organizations should try to establish a trusting relationship with employees and provide
them, with the means they need to perform. A supportive and encouraging environment can
be created by providing people the opportunity to expand their minds and abilities, to assume
responsibility for their own actions, and to find innovative ways to do their work and meet
their goals. Organization should create an environment that is interactive and engaging,
paying attention to building relationships and inclusion. Providing regular feedback and
Page 23
taking time to know the needs and expectations of the employees, increases trust and
openness in relationships.
Employees spend a large chunk of their lives working in their office, Hence it is important for
the employer to make the work environment as appealing as possible. A pleasant and
comfortable working environment attracts the employees to work which directly affects their
productivity.
5.2 Autonomy or Empowering employees
Autonomy is particularly critical when it comes to creating and maintaining intrinsic
motivation. It gives them a freedom of choice, which in turn provides a sense of self-
determination. This means giving them more room to make decisions, to think for
themselves, to "own" their jobs.
Command and control environments create an atmosphere that fosters Learned Helplessness.
Employees in this environment feel that thinking for themselves and acting on their own is
pointless, so they passively await orders.
In contrast, when employees get the chance to think and act like small business owners-i.e.
have autonomy, they continuously build confidence and greater self-efficacy. Because of this,
these employees possess far greater resilience which makes them better resources.
Autonomous motivation has proven to promote greater conceptual understanding, generate
higher productivity, less burnout, and greater levels of psychological well-being. Workplaces
can support autonomy by giving people real control over various aspects of their work —
whether it‘s deciding what to work on or when to do it.
5.3 Rewards and Recognition
Rewards are crucial for maintaining employee motivation, however, it is important not to let
the rewards become the main goal. Rewards are feedback that goals are being accomplished.
When organization recognizes exceptional effort or rare achievement, its value for the
employee increases. Simple things such as a company-wide email acknowledgment or pat on
the back will go a long way. Additionally, personal call or shake hands to express
appreciation to the employee, will instil motivation of a surprising level.
Page 24
When management genuinely recognizes an employee‘s contribution to the organization,
they feel, they are vital members of a team working towards a goal. They feel like the
company is more than just a place to work. Recognition is priceless, and status is much more
than money. It increases employee loyalty, enhances performance and generates greater
success.
Recognition can be an incredibly powerful tool to foster a close-knit team environment,
encourage employees to achieve high levels of productivity, increase employee retention
rates, and reduce incidental expenses relating to inattentiveness to job duties that result in
dissatisfied customers, safety issues, or on-the-job downtime.
5.4 Purpose
A dramatic shift is occurring in how employees view their work. In many cases employees
are willing to work harder and work for an employer longer if the intrinsic feeling of purpose
motivates them. People don‘t just want to make money, they also want to be meaningful
contributors to their community and take action to respect and preserve the planet.
People who find purpose in their work unlock the highest level of the motivation game. It
connects to a cause larger than self that drives the deepest motivation. Such deep motivation
drives employees to pursue the most difficult problems. They can go the extra mile if they
care about the outcome and stay engaged. Employees can also be inspired to meet stretch
goals and tackle impossible challenges.
Organizations should make sure employees know and understand the organisation‘s purpose
goals not just its profit goals. Employees, who understand the purpose and vision of their
organisation and how their individual roles contribute to this purpose, are more likely to be
satisfied in their work.
6. Conclusion
The aim of the study was to explore the applicability and impact of motivational theories on
employees, their performance and job satisfaction. Motivational theories attempt to explain
what motivates people to behave the way they do. Motivational theories can be applied to
workplace settings to shed light into why some employees work harder or are more
committed than others. However, in any organization, one size does not fit all. Hence, no
Page 25
individual theory is sufficient to motivate employees by itself. Organizations need to find out
every employees needs and then use a relevant motivator. Many a times, a need may arise to
use various techniques together in order to motivate employees.
7. Limitations and directions for future research
The current study is limited to employees having a work experience between 1-5 years in the
Information Technology sector. The scope of the study will increase if the target group
consists of middle and senior management. The research can further be extended to various
sectors like Manufacturing, FMCG, etc.
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