Employee motivation concepts and theories

Employee Motivation / Concepts & Theories

Employee Motivation: Theories and Concepts

The issue of employee motivation is one that has become a central concern of management and leadership in modern business. There has been an increased realization in theory and praxis that employees are motivated by much more than salary and that in order to get the most from an employee there are many theories and practical motivational aspects that need to be considered. These range from psychological theories, which view motivation in terms of variables such as self - esteem and self - understanding, to more sociological and organizational theories about motivation

Motivational theory in an employment context is a relatively new field of inquiry and research. The importance of motivational aspects in terms of improving productivity and work atmosphere is a comparatively recent factor in leadership and management concerns. Prior to this situation the view was prevalent that the employee should simply follow the rules and that their primary motivation was the payment that they received. This refers to the old fashioned "carrot and stick" approach to motivation.

This view had a rather negative understanding of human behaviour and the employee and assumed that, "...people are lazy; they hate work to the extent that they avoid it; they have no ambition, take no initiative and avoid taking any responsibility; all they want is security, and to get them to do any work, they must be rewarded, coerced, intimidated and punished. "(Motivation Theorists and Their Theories)

This view if of course not generally accepted by most experts and contemporary managers and business leaders have realized that in order to get the best from their employees, it is imperative to create the working environment and the personal incentives which encourages individuals to work. Conversely, managers also realise that research into motivation and motivation theory is important to do away with or reduce those factors or elements that can negatively impact on the desire to work for the company or business. For example, theorists like McGregor believe that, "... people want to learn and that work is their natural activity to the extent that they develop self-discipline and self-development." (Motivation Theorists and Their Theories)

1.1. The importance of motivational theories and concepts.

Although this aspect has been briefly referred to above, it is important to establish why an understanding of motivation and motivational strategies are of such importance in the modern business environment. As a study from the Harvard Business School states;

Motivated employees are crucial to a company's success -- this has never been truer than today, when margins are thin (or nonexistent) and economic recovery remains elusive. These hard bottom-line realities may also mean that managers can't rely as much as they might have in the past on using financial incentives to drive employee engagement.

Getting a Handle on Employee Motivation)

In other words, in the very competitive and intense commercial world of today, the manager or the business owner has to rely on his or her staff to be fully motivated to carry out their tasks. The uses of motivational theories that can be put into practise have assumed a very high significance in the modern entrepreneurial and corporate world.

There is a clear consensus in the modern entrepreneurial environment that "Success in any undertaking requires more than ability and resources; it also depends on motivation." (Jeffords, Scheidt, and Thibadoux) More significantly, in term of the theories of motivation in the workplace, "...managers must understand that annual raises and promotion opportunities aren't always enough. Managing the changing needs of professional staff requires individualized attention, specialized incentive programs and compensation plans more closely tied to individual achievement and performance. " (Jeffords, Scheidt, and Thibadoux)

2. Theories of employee motivation

2.1. Overview.

The significance of motivation theory and its application in specific environments can be gleaned from this very succinct but apt definition of human motivation.

Psychologists define motivation as 'that which gives impetus to our behavior by arousing, sustaining, and directing it toward the attainment of goals' "(Creech)

There are numerous theoretical perspectives relating to the subject of employee motivation. As mentioned, the issue of motivation in the workplace is at the center of modern leadership and managerial strategies. The different theories of motivation are based on psychological and sociological research and rely heavily on contemporary behavioral psychology.

Each theory and theorist attempts to discern and isolate those aspects that are seen to be of critical importance in understanding the facets and factors that create a structure that is conducive to personal motivation.

Motivation theory in general refers to the ubiquitous motivational aspects that are discerned in human nature.

However, it must be noted at the outset that the subject of employee motivation refers mainly to the motivation factors that can be inculcated within a certain environment or, more specifically, within the work place. Therefore there are other factors that must be taken into account in terms of theory. These include the social and cultural aspects that may affect and impact on employee motivation. Motivation theory attempts to answer questions such as: to what extent are the environment and managerial policies a motivating or de-motivating factor in the work place?

Questions like these must also include research and inquiries into the individual and personal psychological elements that motivate the employee.

A central aspect therefore in understanding motivation theory is the wide array and variety of variables that have to be taken into account. The manager or employer therefore has to be aware of the way that various factors in the workplace interact and relate to one another in the process of employee motivation. "... The manager should be able to motivate employees. But that's easier said than done! Motivation practice and theory are difficult subjects, touching on several disciplines." (Employee Motivation; Theory and practice)

This central trajectory in motivation theory leads to the issue of praxis. Theory has to be implemented. The following overview of some of the central theories and concepts in motivational theory will also provide insight into this important aspect. What should always be borne in mind is that when one speaks about motivation one is dealing with complex psychological and sociological issues in human nature. As one study reminds us; "To understand motivation one must understand human nature itself. And there lies the problem!" (Employee Motivation; Theory and practice)

The following sections will attempt to deal with some of the central and most important contemporary motivational theories. However, this is not meant to be an exhaustive list of the theories but is intended rather as a discursive overview.

2.2. Theories of human and employee motivators.

Those in managerial and leadership positions are aware that motivation requires more than just the payment of a salary. The CEO of General Electric, Jack Welch, once stated that employees have to be rewarded both financially and with sustenance for "....the soul." (Neff)

In other words, Welch was referring to the view that, "...Companies must also empower their employees and provide incentives for them to perform at high levels. Motivating employees and understanding the psychology behind employee motivation are essential to any successful organization..." (Neff) This refers to the most basic understanding of motivation in that employees, if they feel that their needs on different levels are being met, will usually be better and more productive workers.

In general the majority of theories on motivation follows central and common threads or tends. One of these is that that mental and intellectual enrichment should also form part of any understanding of employee motivation. "An employee who is able to learn from the daily interaction with work will know that he is receiving a benefit above that of simple pay, and will be willing to put much more effort into a process that is making him a more interesting and educated person..." (Creech)

Another aspect that features in the various theories is the issue of employee achievement and sense of purpose. "Achievement comes from the sense of accomplishment felt when an employee meets either long-term or short-term goals." (Creech) a further aspect that fosters a motivational environment is employee recognition. These and many other aspects will be discussed in the overview of some of the most significant theories and concepts on motivation.

Maslow and the Hierarchy of Needs

It is obvious that when one speaks about employee motivation one is in reality talking about human motivation in a certain context.

Therefore the basic factors seen as central driving factors in general human motivation also apply to the workplace and working environment. One of the most important and influential theories which deals the central human motivational factors is Maslow's Hierarchy of Needs. This is also one of the most established and well-known of the foundational motivational theories.

Abraham Maslow was in essence a humanist theorist and as such was of the opinion that there was a close and essential links between human motivation and human meaning.

In other words, the human individual is best motivated when the work that he or she is engaged in is meaningful to that individual in both a psychological and social sense. "Maslow's central theme revolves around the meaning and significance of human work..." (Motivation Theorists and Their Theories) This is a theme that in encountered repeatedly in many existential views of human motivation.

Maslow therefore developed his elegant but essentially simple theory of the different levels of human motivation.

The basic human needs, according to Maslow, are:

physiological needs safety needs; love needs; esteem needs; self-actualization needs

Motivation Theorists and Their Theories)

It must be noted that these needs are in progression or in a hierarchy of needs for the lowest to the highest. The highest level is self - actualization, which is the point at which the human being has the most meaning in terms of his or her personal development. "The highest state of self-actualization is characterized by integrity, responsibility, magnanimity, simplicity and naturalness. Self-actualizers focus on problems external to themselves." (Motivation Theorists and Their Theories)

Maslow's hierarchy of needs provides an important outline of the different aspects that motivates the individual and hence the employee. The most basic of these needs refers to the physiological needs of the human being; for example, hunger and thirst. After these needs have been met, the need for safety and security arises.

After the need for protection and the assurance against danger has been met, the individual in Maslow's theory seeks love or a sense of belonging to a group or social organization. Subsequent to the fulfillment of this need the important need for self-esteem and self-respect has to be met. This is the need within the individual for recognition or appreciation.

Following this is the need for self - actualization, or self - fulfillment.

This need involves the issue of an inner psychological and deeply felt sense of self-development and creative achievement.

The last two needs are of particular important in modern management and the industrial working environment.

Managers and leaders have realized that satisfying the most basic needs in their employees is not sufficient to fully motivate and get the best performance and creativity from their staff. Therefore there has been an emphasis in modern theory and practice on the issue of self - esteem and self-actualization as primary motivating factors.

In the past, management reward systems have attempted to satisfy an individual's lower level needs for safety and physiological security, for protection against deprivation and the threat to a worker or his family....However, management reward systems are now, or should be, endeavoring to satisfy the individual's higher level needs for esteem and self-fulfillment.

Abraham Maslow's Hierarchy of Needs)

Furthermore, Marlow's Hierarchy of Needs has particular application and importance for contemporary society.

This is due to the previously mentioned fact that modern managers and leaders in commerce are aware that although the first and second levels of the hierarchy of needs have been met, this is not sufficient to engender employee motivation. "...pay alone is no longer the universal motivator. Now the workforce is more educated and able to handle creative, mental work. In fact, the employees demand it in order to satisfy the upper-level needs..." (Creech)

Expectancy Theory

One of the most respected and an accepted modern theory of motivation is Expectancy Theory.

In essence the theory states that "...motivation depends on how much an individual wants something (the strength of the valence) relative to other things, and the perceived effort-reward probability (expectancy) that they will get it." (Neff) the important aspect here is the focus on is the "effort-reward probability" factor.

In other words the individual is motivated in terms of the expectation that he or she has in relation to the time and resources that they expend. In one sense this theory is based principles of economy. "The exchange is economic in nature and it is assumed that individuals will have expectations regarding the rewards they receive vs. The resources and time they must expend in getting them." (Neff)

Expectancy Theory is attributed to V.H. Vroom (1964). The basis of the theory lies in the view that people "...consciously choose particular courses of action, based upon perceptions, attitudes, and beliefs, as a consequence of their desires to enhance pleasure and avoid pain." (Isaac, Zerbe, and Pitt 212) the original theory suggested by Vroom was expanded on by other theorists. The modern theory of expectations takes account of the fact that, "... expenditure of an individual's effort will be determined by expectations that an outcome may be attained and the degree of value placed on an outcome in the person's mind." (Isaac, Zerbe, and Pitt 212) the essence of this view is that people create expectations in their minds which are measured against " valences" or factors that can impede or enhance the chances of these expectation being met.

The theory is also known as the "...process theory of motivation." (Isaac, Zerbe, and Pitt 212) This is due to the fact that Expectation Theory has as its central focus the way that the individual or the employee perceives or reacts to his or her environment. This differs to a certain extent from other theories of motivation which place more emphasis on the inner or internal psychological aspects of motivation. "By contrast, content theories constitute the other major classification of motivation theories and they focus upon internal attributes of the person." (Isaac, Zerbe, and Pitt 212) Expectancy theory on the other hand "...mainly relies upon extrinsic motivators to explain causes for behaviours exhibited in the workplace." (Isaac, Zerbe, and Pitt 212) Therefore, this is an extremely good theory for managers and business leaders to be aware of in terms of the way that the working environment affects motivation.

2.5. Frederick Herzberg

Frederick Herzberg's theory of motivations is also a well respected theory in this field and takes cognizance of external or outer aspects as well as intrinsic motivational factors, in an attempt to understand motivation. To a certain extent we can see this theory as having both process and inner psychological content dimensions

Herzberg's theory of employee motivation is based on two central theoretical aspects. These are referred to as Hygiene theory and Motivation. While Hygiene theory is not directly related to motivation in the workplace, yet it is an essential background or underpinning to motivation.

Hygiene theory refers to the aspects of the organization or business, the business and working environment, which affect motivational criteria. These would therefore include aspects such as business and staff policies, the level and types of staff supervision and general working conditions. Other factors which would be included under the rubric of Hygiene Theory are the value of interpersonal relations among employees and between employees and management; as well as the obvious factor of salary. Employee status and job security are also relevant aspects of the Hygiene component of Herzberg's theory. (Frederick Herzberg)

The other component of Herzberg's theory is the actual theory of motivation; which is indirectly related in numerous ways to the Hygiene factors. In other words, the various motivational facets are dependent on the status and quality of the Hygiene factors. For example, if there is a poor relationship between staff and management this will have an adverse affect on employee motivation. Therefore the various motivational aspects are deeply intertwined with the structure and other aspects of the working environment.

Herzberg indicates a number of central motivators in the working environment. These are;

Achievement

Recognition

Growth / advancement

Interest in the job

Human Relations Contributors: Frederick Herzberg)

Herzberg's theory therefore revolves around two related dimensions of motivation in the workplace; namely the variables that constitute the employees working environment (Hygiene) and direct motivational aspects. For instance,

Herzberg was also of the opinion that the main way to motivate employees was "....to give them challenging work where they can assume responsibility." (Neff)

This theory also places emphasis on the Hygiene facets as possible elements in a working situation that could be "...areas of potential dissatisfaction." (Neff) Therefore, "... if, in addition to providing the requisite "hygiene," employers also put in place various tools for motivating their employees, the employees will be even more content and more productive." (Neff)

It is also obvious from this theory that there is a complex relationship between the environmental and " Hygiene" factors and the elements that promote positive motivation among employees. A Hygiene factor in this theory, such as the policy of the company, will have a related impact on a motivating factor such as achievement and recognition.

2.6. Career Anchors.

A view that has achieved some recognition is the concept of career anchors. This as an employee motivational theory put forward by Edgar Schein. Schein was a Sloan Fellows Professor of Management at the Massachusetts Institute of Technology. In this theory he suggested that employees are essentially motivated by certain "career anchors" and these are determined and defined by the way view themselves in relation to their work. The employee will usually be motivated by one of these anchors or central motivating factors.

There are eight career anchors.

Technical/functional competence. A person influenced by this anchor will have a desire to excel in a certain area or direction of his or her work. Often people with this predilection are not as motivated by salary or promotions.

General managerial competence. A person who focuses on this anchor is "....Someone who is most closely allied with the traditional career path of the corporation." (Getting a Handle on Employee Motivation)

He or she is, "... The polar opposite of the person for whom technical/functional competence is preeminent. " (Getting a Handle on Employee Motivation) the motivating factor in this type of employee is based on interpersonal skills and the desire to "climb the ladder" of company success.

Autonomy/independence. The motivating factors in this case are a sense of individuality, self-dependence and independence. These employs are motivated by finding their own path and not by subscribing to the rules.

Security/stability. Employees with this career anchor value above all "...a predictable environment, one in which tasks and policies are clearly codified and defined. They identify strongly with their organization, whatever their level of responsibility." (Getting a Handle on Employee Motivation)

Entrepreneurial creativity. People that fall into this motivational category are essentially creative and prefer to find new and stimulating ideas and modes of work. They can be easily de-motivated by humdrum routine.

Sense of service. The motivating factor here is a sense of purpose in providing a service. This is closely aligned to the idea of self-actualization of meaning as being an important motivating factor.

Pure challenge. This refers to those employees who are motivated by changing tasks and who thrive on problem and difficult jobs.

Lifestyle. Employees who fall into this category are focused on the way that work relates to their personal life and lifestyle. "Their most pressing concern is for their jobs to give them the freedom to balance those other concerns with their work. "(Getting a Handle on Employee Motivation)

Getting a Handle on Employee Motivation.)

The important aspect of these different personality types is that, once the manager or leader understands these types and the motivating factors that are related to each type of individual, then they can better understand the factors that will motivate and de - motivate that worker. "Once you understand what each anchor is, you can determine the career anchor for each employee in your department." (Getting a Handle on Employee Motivation.)

2.7. Various other theories and concepts.

An interesting and useful theoretical theory was put forward by David McClelland on the subject of achievement as a motivating factor. He found that research showed that some employees were motivated by achievements while others were not. "Over the years behavioral scientists have observed that some people have an intense need to achieve; others, perhaps the majority, do not seem to be as concerned about achievement." (David McCelland) an interesting finding in this regard was that those individuals who are motivated by achievement "... seem to be more concerned with personal achievement than with the rewards of success. They do not reject rewards, but the rewards are not as essential as the accomplishment itself." (David McCelland)

This view therefore adds to the categories discussed above and, secondly, it emphasizes the central thesis that many employees are not motivated only be salary; and that self-actualization factors play an important role in motivation.

Another theorist, Chris Argyris, is of the view that at present most organizations are not structured for the optimum motivation of their employees. He stresses that "...organization needs to be redesigned for a fuller utilization of the most precious resource, the workers, in particular their psychological energy." (Chris Argyris)

He sees the common pyramid structure of most organizations as a central factor in decreasing the degree of motivation among employees. He therefore posts that the organizations should redesign and restructure the way they function in order to encourage and motivate employees. He is also of the opinion that, "Satisfaction in work will be more valued than material rewards. Work should be restructured in order to enable individuals to develop to the fullest extent. At the same time work will become more meaningful and challenging through self-motivation." (Chris Argyris)

The views that Argyris posits are particularly interesting in relation to the theories that have been already been discussed. His view places the emphasis on the way that the business or organizations is structured and run as the primary factor in employee motivation. This view would also concur with elements of the Hygiene Theory that Herzberg has suggested. Furthermore Argyris states that the implementation of the democratic principle within the business environment would greatly increase motivation and productivity. "If... humanistic or democratic values are adhered to in an organization, Argyris claims that trusting, authentic relationships will develop among people and will result in increased interpersonal competence, intergroup cooperation, flexibility, and the like and should result in increases in organizational effectiveness." (Chris Argyris)