Management & Organizational Theory: Theories of Motivation and Reward Systems

This assignment discusses the theories of motivation and application of these theories in different rewards. It also explores the reward system in Maslow’s Theory of Motivation and Goal Setting Theory.

Running Head: MANAGEMENT & ORGANIZATIONAL BEHAVIOUR
MANAGEMENT & ORGANIZATIONAL BEHAVIOUR
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Motivation Theories...............................................................................................................3
Content Theory of Motivation...........................................................................................3
Process Theory of Motivation............................................................................................4
Conclusion..................................................................................................................................6
Reference....................................................................................................................................8

2MANAGEMENT & ORGANIZATIONAL THEORY
Introduction
In the business organization, the motivation plays vital role in driving the employees
for achieving the goals of the organization. The theory of the motivation affects the theories
of the motivations. Motivation is referred as desire for achieving the goal or the certain level
of the performances that leads to the behavior that is directed towards goal. Further, the
system of reward is identified as the practices of the human resource management, which
affects the motivation. It consists of the various components that include financial as well as
non-financial rewards in the amounts, which is fixed and variable. These systems of the
reward have the differential effects of the motivations in the different cultures (Jung & Yoon,
2015). Hence, this assignment includes the discussion on theories of the motivation and
application of these theories in different rewards.
Discussion
Motivation is defined as one’s direction to the behavior or it is the set of the force,
which acts behind motives. It is desires for acting as well as moving towards the goal.
Maryam has stated that the motivation of the employee is the intricate as well as sophisticated
subject that is once applied in right way in the organization then it is bound for achieving the
success that is long lasting (Abbah, 2014). Further, Hashim has stated that human needs play
the important role in the motivating of the employees of any of the business organization. The
author has stated that job security, job enrichments, reasonable salary as well as other
additional incentives, automatically increases the performance of the employees (Zameer et
al., 2014).
a)

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Motivation Theories
There are three theories in the motivation, which are content theory, process theory as
well as reinforcement theory. The content theories of the motivation deals with the fact that
what helps in motivating the people as it is related with the individual goals as well as needs.
It is with the perspective of content; Maslow, Herzberg, Alderfer and Mc Clelland have
studied motivation. Alternatively, the process theories of motivation deals with processes of
the motivation and it is related with the how the motivation occurs.
Content Theory of Motivation
Maslow’s Theory
Abraham Maslow was the psychologist who has developed the theory, which has
suggested that human being are motivated with the help of satisfying the five basic needs and
all these needs are arranged in the hierarchy. As per Maslow, firstly lower level of the needs
should be satisfied and then followed by the higher level of the needs (Danish et al., 2015).
The hierarchy of the needs is as follows:
 Physiological Needs: This need is minimum basic needs that are required for survival
of human beings.
 Security and Safety Needs: This type of needs includes keeping safe from any type
of harm such as security of job as well as healthy and safe environment.
 Social Needs- This is the need for having relationship with others.
 Esteem Needs- These needs are tied to the image of the employees in himself as well
as the desires for recognition and respect.
 Self-Actualization Needs- This is the need for the personal growth as well as
development, which exists throughout the life (Osabiya, 2015).
Pros of Maslow Theory

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 The theory by Maslow is simple and easy for understanding.
 This theory takes into the account human nature.
 This theory is almost relevant in all the fields of the life.
 This theory helps the marketers for focusing their appeals of advertising as per the
specific needs of the large segment of the target market (Osabiya, 2015).
Cons of Maslow Theory
 The major drawback of Maslow theory is that not all the individual thinks in similar
way. Therefore, individual may find social needs more important than safety needs
and others.
 There may be differences in the culture of the different nation, which affects the
application of this theory.
 There is little evidences that has suggested that people exclusively satisfies one
motivating need at one time.
Process Theory of Motivation
Goal Setting Theory
The Edwin Locke developed the theory of goal setting in 1960s. He stated that goal
setting is linked essentially to the performance of the task. The specific as well as challenging
goals, which is along the appropriate feedback helps in contributing towards the higher as
well as better performance of task. The goals helps in indicating what is required to be done
as well as how much efforts is required for putting into it (Osabiya, 2015). There are certain
eventualities of the goal setting that are as follows:
 Self-Efficiency- It includes self-confidence as well as faith of the individual that he or
she is having potential for performing task.

5MANAGEMENT & ORGANIZATIONAL THEORY
 Goal Commitment: The theory assumes that the individuals are committed towards
goals.
Pros of Goal Setting Process
 This theory is the technique for raising the incentives for the employees for
completing the work effectively as well as quickly.
 It leads towards better performance with the help of increasing efforts as well as
motivation.
 This theory helps in establishing the commitments with clear and quantified goal.
 The goal creates impetus for the strategic planning as well as assignment of the task.
Cons of Goal Setting Process
 There are may be situation in which organizational goals are conflicted with
managerial goals.
 The goals that are complex as well as difficult stimulate riskier behavior.
 There exist no evidences, which can prove that the goal setting helps in improving the
job satisfaction (Zameer et al., 2014).
b)
Reward System in Maslow’s Theory of Motivation
 Responsibilities: In this reward system, the responsibilities of the employees are
increased that helps them for accelerating growth as well as achieving the targets.
 Freedom for acting: In this system of reward, the employees are given freedom for
acting beyond the degree as it helps in to enhance their capabilities.

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 Fringe Benefits: This is the reward system, which helps in providing the employees
with the forms of the compensation that are outside of their stated salary (Shahzad,
2014).
 Job security: In this, employees are given assurances regarding continuity of the
gainful employments that arises from terms of employment contract and others.
 Promotions: It includes advancement of the employee within the position of the
company or the tasks of job (Terera & Ngirande, 2014).
Application of Reward System in Goal Setting Theory
 Monetary Rewards: This reward system includes rewarding the workers for the
productivity as well as productivity with the help of money such as bonus, employee
stock options and others.
 Job Recognition: This involves honoring as well as recognizing the employees for
their service level for encouraging repeat actions.
 Other Recognition- This includes giving awards time-time to the employees for their
effort, behavior as well as other aspects for supporting goals and the values of
organization.
 Social Enhancement- The purpose of this reward is for streamlining the goals as well
as boosting the participations of the employees in the affairs of the organizations.
 Status Elevation- The purpose of this reward system is for driving the employees
towards the common goals and objective by enhancing their social needs (Ajmal et
al., 2015).
Conclusion
Therefore, it is concluded from the analysis of the various theories of the motivation
that the development of the these motivation theories helps in driving to force the individual

7MANAGEMENT & ORGANIZATIONAL THEORY
for working in the certain way with the help of encouraging to work hard for accomplishing
the goals as well as objectives. It is done by applying various rewards system in the
organization, which may be financial or non-financial.

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Reference
Abbah, M. T. (2014). Employee motivation: The key to effective organizational management
in Nigeria. IOSR Journal of Business and Management, 16(4), 01-08.
Ajmal, A., Bashir, M., Abrar, M., Khan, M. M., & Saqib, S. (2015). The effects of intrinsic
and extrinsic rewards on employee attitudes; mediating role of perceived
organizational support. Journal of Service Science and Management, 8(04), 461.
Danish, R. Q., Khan, M. K., Shahid, A. U., Raza, I., & Humayon, A. A. (2015). Effect of
intrinsic rewards on task performance of employees: Mediating role of
motivation. International Journal of Organizational Leadership, 4(1).
Jung, H. S., & Yoon, H. H. (2015). Understanding pay satisfaction: The impacts of pay
satisfaction on employees’ job engagement and withdrawal in deluxe
hotel. International Journal of Hospitality Management, 48, 22-26.
Osabiya, B. J. (2015). The effect of employees motivation on organizational
performance. Journal of public administration and policy research, 7(4), 62-75.
Shahzad, F. (2014). Impact of organizational culture on employees’ job performance: An
empirical study of software houses in Pakistan. International Journal of Commerce
and Management, 24(3), 219-227.
Terera, S. R., & Ngirande, H. (2014). The impact of rewards on job satisfaction and
employee retention. Mediterranean Journal of Social Sciences, 5(1), 481.
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.