Contemporary Issues in HR: Motivation Theories & Performance Review

This literature review delves into the intricate relationship between motivation theories and their impact on human resource performance management. It explores content theories such as Maslow's hierarchy of needs, Alderfer's ERG theory, McClelland's achievement motivation, and Herzberg's two-factor theory, as well as process theories including Skinner's reinforcement theory, Adam's equity theory, Vroom's expectancy theory, and Locke's goal-setting theory. The paper emphasizes that employee motivation is crucial for organizational success and that various monetary and non-monetary factors play a significant role in enhancing employee performance. It also highlights the importance of HR policies that are dedicated to boosting employee motivation in unique ways. This assignment is available on Desklib, where students can access a wealth of study resources, including past papers and solved assignments.

Running head: HUMAN RESOURCE MANAGEMENT
HUMAN RESOURCE MANAGEMENT
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Table of Contents
Introduction......................................................................................................................................2
Motivation Theories and their impact on performance management..............................................3
Conclusion.......................................................................................................................................9
Reference.......................................................................................................................................10

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Introduction
One of the most efficient methods of maximizing the performance of the employees of an
organization or a group includes the process if increasing the motivation of the employees in
various ways. There are multiple number of theories, ideas and proposed methods to increase the
motivation of the employees in order to achieve the desired results the organization wants to
achieve through its employees.
The goal of every organization is to increase the productivity and maximize the revenue.
This goal is to be monitored by the top management that the employees are working collectively
in a way that the final goal of increased productivity and revenue generation can be achieved.
Increased employee motivation is one of the primary reasons why the company may achieve a
noticeable increase in performance. The total organization performance depends upon the
individual employee performances. The collective performance of all the employees result in
boosted organizational performance.
This paper mainly aims at understanding the relationship between motivation and
employee performance and how various researches have highlighted the same issue. A number
of research papers are sited so that the final result can be drawn.
All the important companies are trying their best to maximize employee motivation as
much as they can, they are using various monetary and non-monetary benefits in this regards.
This has led to the separate drafting of new HR policies that are dedicated towards employee
motivation often in very unique ways.

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Motivation Theories and their impact on performance management
There are two kinds of motivational theories, content motivation theories and process
motivation theories. The content motivation theory depends upon what are the contents of the
motivation theory and the process motivation theory depends upon the “How” factors, mainly
about how the human beings can be motivated in their organizational context. These can be
further explained by stating that the content theories mainly describe what are the ingredients and
components that can be utilized within the organizational context so that the employees are
motivated to come to the workplace and give their best and be more productive. This is the
content theory of motivation that gives importance on the why factors of the motivation, why
will a person be interested in coming to the workplace and what are the factors that will draw
that particular person to the workplace and make him or her perform to the best of his
productivity. The various content theories are Maslow’s needs hierarchy, McClelland’s
achievement motivation, Alderfer’s ERG theory, and Herzberg’s two-factor theory.
The other kind of motivational theory includes the process theory. The process theory is
mainly how the employee may be motivated in various ways in the workplace setting. This is
based on the process of motivation. The processes that may be followed in this regards are
decided by the management by going through various case studies and by analyzing the need of
the employees. The various kinds of process theories are Skinner’s reinforcement theory,
Adam’s equity theory, Victor Vroom's expectancy theory and Locke’s goal setting theory
It is a fact that a single motivation theory is not enough to explain the motivational needs
of a person. There may be multiple number of complicated reasons that may lead to a person not
being motivated enough in workplace or losing his or her productivity in the course of time.

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One of the important aspects that the companies should keep in mind that money is not
the only motivating factor that drives a person to work productively. There are various other
factors that acts as important factors that motivate a person in a number of ways. These may
include encouraging the employees through compliments, non-monetary perks, helping in
boosting self-actualization, giving job security to the person, and making the person feel to be a
part of the organization through love and warmth.
The first among the content theory is the Maslow’s Hierarchy Needs. The Maslow’s
hierarchy of needs, is one of the most established and famous theories of motivation (Robertson
2016). It was formulated in the 1950s. The main summary of this theory is to condense the
various needs of motivation into five categories. These are categories into hierarchy, and
according to the nature of needs. The first is the psychological needs which are the basic needs of
a person that helps in the existence of the person. This includes the basic necessities like water,
shelter, food and capacity to sleep. These are the basic necessities for the individuals to survive.
It is stated that the normal activities of a person cannot be continued and the mind cannot
function normally if any of the above factors are not available (Lester 2013). Therefore to
motivate a person on a basic level it is important that these needs are taken care of. The next
comes the factor of safety and security. This is a notch higher than the stage of psychological
needs. These are the factors that ensure that a person lives a comfortable life (Jerome 2013).
Constitutes of Income security, employment and a comfortable place to stay and support the
family. Next comes the feeling of belongingness and love which is necessary for a person to
thrive properly in a social setting. These are the motivating factors that helps a person properly
develop and thrive. The next two factors in the Maslow’s hierarchy are Self-esteem and self-
actualization. These are related to respect of the individual in the workplace and in the society at

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large and how the individuals are realizing their own potential and abilities supported by the
workplace (Lazaroiu 2015).
Another motivational theory in this regards is the Alderfer- ERG theory. The ERG refers
to the Existence needs, relatedness needs and the growth needs. The three classes of needs are
existence, relatedness and growth (Turabik and Baskan 2015). The class of existence can be
related to Maslow’s psychological and safety needs. Relatedness is alike the belongingness of
Maslow’s model and growth is alike the self-esteem and self-actualization of Maslow.
Another important theory in this regard is the McClelland- Need for achievement,
affiliation and power theory which was formulated in the 1960s. The researcher mainly described
the human motivators (Wahba, M.A. and Bridwell 1976). McClelland argued that the human
beings are driven by some motivation factors and these factors are acquired and learned over
time, therefore this is also known as “Learned Needs Theory”. The three motivating factors
discussed in this context do not have dependence on gender, age or any other physiological
factors (McClelland 2015). The difference between Maslow’s model and McClelland’s theory is
that Maslow gives emphasis on satisfying the existing needs however on the other hand
McClelland’s theory depends on the experiences, education and culture. The three motivators in
the case of McClelland are achievement, affiliation and power. Achievement is the desire to
accomplish or get some mastery and competence. Affiliation is the desire of a person to be loved
and belonged. Power is the desire of a person to have some control on the work that a particular
person himself or herself doing. Hertzberg has formulated his two factor theory (Uduji and
Ankeli 2013). This theory states that some factors are there, which are the motivating factors that
causes satisfaction in the workplace and there are various factors which are the causes for
dissatisfaction in the workplace. The theory argues that the opposite idea of satisfaction is not

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dissatisfaction but no satisfaction. Remuneration, environment of the work, working conditions
and job security which are also known as hygiene factors, and when these are unsuitable the
employees will become demotivated. Motivating factors on the other hand are those which
increase the satisfaction of job. The motivational factors are helpful in increase the level of
performance of the employees. Therefore it can be stated that Herzberg’s theory has two factors,
the Hyegine factor and the Motivating factor. The hygiene factor has two levels, dissatisfaction
and no dissatisfaction. On the other hand the motivating factors also has two levels, no
satisfaction and satisfaction. The five motivating factors or factors of job satisfaction are
achievement, work, recognition, advancement and responsibility. On the other hand the 5
hygiene factors or factors of job dissatisfaction are company policy and administration, salary,
supervision, interpersonal relationships and working conditions. These are the various factors
that has been used by Herzberg.
The other set of motivational theories that can be used in this regards is the process
theory of motivation. The process theory of motivation consists of the various factors such as the
Skinners reinforcement theory, Vrooms expectancy theory, Adam’s equity theory, and Locke’s
goal setting theory. The Reinforcement theory which is composed by Skinner states that the
consequences can from behavior (Skinner 2014). It is often more obvious that the employees
would endeavor in performing well when they get rewarded. It is the natural consequence that a
person is more interested in repeating their successes when they are getting rewarded. Rewards
ensure that the successful activities are repeated. One example can be given of the students who
get good results or who are rewarded, this is a common trend that has been seen to be happening
all over world. On the off chance that an understudy gets positive verbal criticism and a decent
evaluation for his test, this fortification supports the execution of the conduct to repeat. On the

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off chance that the educator doesn't tell definitely what he expects, the encouraging comments
can drive the conduct nearer to the favored. For instance, when an understudy who is typically
late to class gets positive input when he touches base on time, the understudy turns out to be
increasingly prompt. Encouraging feedback rouses to get the foreseen support of required
behavior. Punishment can be undesired fortification, or fortify undesired conduct. For instance, if
an understudy is in every case late to class and subsequently he gets negative verbal input and
furthermore dependably needs to clean up the classroom toward the day's end, for this situation
the unfortunate conduct is strengthened with a bothersome reinforce. The discipline decreases
the inclination to be late. As evident from the hypothesis, uplifting feedback is comparatively
more improved a persuasive strategy as compared to discipline. It is because discipline attempts
to discourage the unwanted conduct. It also does not offer an elective conduct. On contrary to
this, it makes terrible sentiments. It also produces a mind with pessimistic frames toward the
movement. In addition, those who gives the discipline do stifles the conduct. However, they do
not dispense with it for a longer period of time. It is to be noted that when certain conduct is put
to dreary support, it helps in the disposal of the fortification. This will hamper the inspiration
needed to deal with such conduct. Therefore, this can be said that it is much better not to give
away a reward inevitably. Notably, protection at the work place often happens on an
unpredictable or incomplete support plan. This takes place when reactions are not rewarded with
compensation. The support hypothesis has also been found to be incorporated with many other
inspiration speculations also. Most importantly, reward must be addressing to somebody's
desires, and issues. It must also be connected impartially to make it a reliable approach.
The expectancy theory says that an individual acts in a certain way and select the specific
behavior over the many others. This behavior carry an unexpected result attached to it.

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Therefore, Victor Vroom's (1964) expectancy theory communicates how individuals normally
look over different activities (Parijat and Bagga 2014). Vroom defines inspiration as a process,
which administers decision making and considers it a willful conduct of elective types. The
fundamental basis of this hypothesis conveys that inspiration comes from the beliefs. It further
adds to it by saying that choices will expectedly have their desired outcomes. Three elements
(SUCIU, Mortan and LAZĂR 2013) can be evaluated to dictate the inspiration needed to take
part in a movement. These three variables are Expectancy, Valence, and Instrumentality.
Expectancy, – it communicates a man's conviction about the results and says that these will be
obtained highly by giving the task a hard work. In the event that one who works harder, will have
the better execution. Instrumentality – it says that that there is an association between movement
and objective. It means those who perform well will be rewarded. Valence – it calculates the
value, which people give to their rewards. These rewards are the consequences of their
achievement.
The equity theory says that individuals should be dealt with impartiality, and that they
should get what they deserve for their efforts and contribution (Tseng and Kuo 2014). Adams
(1965) recommended this theory that depends on the Social Exchange theory. The theory says
that individuals contrast their commitment against different variables such as work, the
advantages, and activities’ expenses. These advantages are related with individuals’ contribution
to it. According to this theory, the moment individuals observe that there are unjust between data
of different individuals, they can opt to diminish the inequity. It further says that at the work
place, the laborers contribute with different activities. For example, encounter, instruction,
vitality, exertion, and hope to get a few results. Results for example include remunerate,
compensation, verbal acknowledgment, advancement, and intriguing and testing work. These all

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be in equivalent sums. The equity theory is suitable to both schools and the work place. For
instance, inequity exists there when similar oral test rewards two understudies with the
distinctive credits. Considering this to be the situation, it can be said that the understudy that who
is wrongly rewarded may lose his/her inspiration to learn. The individual may also create a
necessity for the instructor to give him/her a superior check. They can also impact on the
observation made by the reference individual's execution. At the school level, it can be
demotivating for other students if understudies are given the undue leverage. It is never ethical
that somebody who hardly studies or performs is superior to many others in regards to checking
of their works. Inequity can be considered to be in direct proportion with the pain felt by
individuals who are not blessed with partiality. Indeed, the rate of inequity will result in more
pains to the disadvantaged group of students. This will also affect the overall result of the
institution.
Conclusion
It can be stated from the above discussion that motivation is very important to manage
performance in the organizational context. Performance management is a key to an improved
performance in organizations that a particular organization endeavors to achieve to maximize the
productivity of the individual employees. And motivation is very important in this regards.
Motivation is increasingly becoming a part of various performance management practices in
organizations. It is, therefore, important to take the help of theoretical fundamentals to be able to
appropriately deal with the range of motivating factors. The different motivational theories are
formulated to achieve similar or different goals. This is the reason that the organizations must
have a separate body to understand and apply the motivational theories in the organizational
context and to make it a successful venture.

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