Motivation Theory and Performance Management Systems

Introduction: Performance Management and Motivation Theory

Performance management systems attempt to answer questions about employee work objectives and their overall role within an organization. A performance management system is designed to assist managers in developing, assessing, and monitoring a plan by which an employee's contributions to the organizational strategy and strategic objectives are identified, measured, and reviewed. The questions that a performance management system addresses are: What is the role of the employee? What are the employee's objectives? How well is the employee meeting those objectives? What could be done to help the employee meet them more effectively? In encouraging employees to reach their goals, motivation theory can be seen as underpinning performance management systems to a high extent.

Motivation theory is based on the concept developed by Abraham Maslow (1943) in "A Theory of Human Motivation." Maslow (1943) constructed a Hierarchy of Needs with five levels, each one preparing the ground for the next. The most fundamental needs must be met first before a person can be motivated upward. The most fundamental needs that motivate human behavior are physiological—that is, shelter, food, and water. The second level consists of needs relating to safety, including personal and financial security. The third level consists of love and a sense of belonging—the need for relationships and friendships. The fourth level consists of esteem—the need to be respected and to feel confident. The highest level consists of self-actualization—the need to achieve one's goals and fulfill one's highest potential as a skilled, capable, and talented individual (Maslow, 1943).

In a performance management system, assessing the level of need at which an employee operates can help a manager determine the type of motivation that employee requires. For example, if an employee is still at the second level—safety—then the motivation that the worker will likely need will be based on feelings of security. The worker may need incentives such as healthcare or a pension plan in order to be adequately motivated to apply himself at work and progress toward greater levels of achievement.

Maslow's Hierarchy of Needs and Its Challenges

The difficulty of testing Maslow's theory of the hierarchy of needs was demonstrated by Wahba and Bridwell (1976) in a review of the empirical evidence available at the time. The researchers examined ten factor-analytic studies along with three ranking studies that tested Maslow's theory and found that the evidence provided only partial support "for the concept of need hierarchy" (Wahba & Bridwell, 1976, p. 212). The researchers found that cross-sectional studies did not offer specific evidence to support Maslow's "deprivation/domination proposition except with regard to self-actualization," the highest of the needs levels (Wahba & Bridwell, 1976, p. 212). The researchers also examined evidence regarding the gratification/activation proposition put forward by Maslow's theory and found no support for it either.

Additionally, Wahba and Bridwell (1976) noted that the limited support for Maslow's theory may be disputed because of the measurement methods employed in the various cross-sectional studies. Ultimately, they concluded that Maslow's theory of motivation is difficult to accurately test because of conceptual, methodological, and measurement issues related to identifying the extent to which human motivation is a factor in performance.

Motivational Theory Applied Across Industries and Cultures

The study by Schyns and Schilling (2013) focused on the negative impact that poor leadership can have on employee performance. The researchers found that leaders who demonstrated a disregard for their workers, failed to utilize emotional intelligence, or subjected their employees to harsh criticism without offering any support generally produced a reduced output of performance among workers. Workers began to show less interest in supporting the objectives of the firm, did not promote a positive or healthy workplace morale, and in some cases deliberately sought to undermine organizational goals as a reaction to poor leadership. Schyns and Schilling (2013) showed that by disregarding the needs of employees—from the most basic concepts articulated in Maslow's theory to the highest—managers were denying workers the motivation they required to perform at a high level, or even at a basic level in some cases.

Benson and Dundis (2003) applied Maslow's model to the nursing industry to show how motivation theory can help advance the aims of performance management systems. The researchers showed that "a new perspective related to how Maslow's Model, as used in business/organizational settings, can be directly related to current workforce concerns: the need for security and freedom from stress, social belongingness, self-esteem, self-actualization, altered work/social environments, and new opportunities for learning and self-definition" (Benson & Dundis, 2003, p. 315). The researchers demonstrated that motivational theory provides management with the means of understanding workers, their needs, and what is required to support and/or incentivize them to perform at desired levels. Benson and Dundis (2003) concluded: "How does one motivate employees in the face of increased demands, particularly when they are being asked to meet these demands with fewer resources? The answer is, in large part, to make the employee feel secure, needed, and appreciated. This is not at all easy, but if leaders take into consideration the needs of the individual, the new technology that provides challenges and opportunities for meeting those needs, and provides the training to meet both sets of needs, enhanced employee motivation and commitment is possible" (p. 315). By investing in their employees and offering emotional, social, and intellectual support, managers can better ensure stronger employee performance.

Zameer, Ali, Nisar, and Amir (2014) show that these findings are universal and that motivational theory can be used to support performance enhancement strategies in Pakistan just as they are in the West. Zameer et al. (2014) obtained data from workers in five Pakistani cities using a structured questionnaire method. They found that motivation is very important to workers and that workers perform at higher levels when effectively motivated. When the needs of workers are met—whether defined according to Maslow's model or other motivation models such as Alderfer's ERG model—workers respond favorably by dedicating themselves to fulfilling the needs of the organization that employs them. In this sense, motivation theory operates in a quid-pro-quo type of transaction.

The researchers measured performance using a general performance management system linking together four factors: "1. Organization objective; 2. Day by day performance; 3. Professional development; 4. Rewards and incentives" (Zameer et al., 2014, p. 294). From this linkage, they developed a measurement method that included evaluating performance by assessing "job knowledge, quality and quantity of output, leadership abilities, supervision, dependency, cooperation, judgment, versatility" (Zameer et al., 2014, p. 294). The researchers found that employees who were more effectively motivated by their managers—in terms of having their needs met—were more likely to demonstrate higher levels of on-the-job performance.

Lazaroiu (2015) further supports the universality of motivational theory's application in performance management systems. His study, based in Europe, follows a similar approach to that of Zameer et al. (2014). Lazaroiu (2015) focuses on analyzing motivational determinants, job performance, and motivation-oriented behavioral factors, highlighting the causal relationship between motivation—that is, needs being met—and workplace performance. The more that needs are met, the more workers are motivated to perform well at their jobs.

Conclusion: Implications for Strategic Human Resource Management

The application of motivational theory in this organization demonstrates that the strategic human resource management function can benefit significantly from taking time to know its workers, showing that they are appreciated and respected, and making an effort to ensure that their most basic needs are met. By helping workers meet needs identified by motivational theorists, human resource management teams can better ensure positive outcomes with respect to performance levels.

Human resources managers could improve their own systems of management by incorporating motivational theory into their approach. Motivational theory, when applied, can help improve workplace morale and create a more positive workplace culture that supports performance and drives workers to achieve organizational objectives. The evidence from both the academic literature and direct workplace observation strongly supports the conclusion that motivation theory underpins effective performance management systems to a substantial degree.

References

Benson, S. G., & Dundis, S. P. (2003). Understanding and motivating health care employees: Integrating Maslow's hierarchy of needs, training and technology. Journal of Nursing Management, 11(5), 315–320.

Bruere, H., Allen, W., Cleveland, F., & Baker, S. (1912). Efficiency in city government. Annals of the American Academy of Political and Social Science, 41, 3–22.

Lazaroiu, G. (2015). Employee motivation and job performance. Linguistic and Philosophical Investigations, 14, 97.

Maslow, A. H. (1943). A theory of human motivation. Psychological Review, 50(4), 370.

Schyns, B., & Schilling, J. (2013). How bad are the effects of bad leaders? A meta-analysis of destructive leadership and its outcomes. The Leadership Quarterly, 24, 138–158.

Wahba, M. A., & Bridwell, L. G. (1976). Maslow reconsidered: A review of research on the need hierarchy theory. Organizational Behavior and Human Performance, 15(2), 212–240.

Zameer, H., Ali, S., Nisar, W., & Amir, M. (2014). The impact of the motivation on the employee's performance in beverage industry of Pakistan. International Journal of Academic Research in Accounting, Finance and Management Sciences, 4(1), 293–298.