Theories of Motivation: Understanding Employee Behavior

This report provides an in-depth analysis of motivation theories, differentiating between content and process theories. It explores key concepts such as McClelland's Theory of Needs, Goal Setting Theory, Equity Theory, and Expectancy Theory. The report explains the core principles of each theory, offering examples of how they can be applied to enhance employee motivation and improve organizational performance. It also provides insights into the strengths and limitations of each theory, offering a comprehensive understanding of how managers can leverage these theories to foster a motivated and productive workforce. The report emphasizes the importance of understanding individual needs, setting clear goals, ensuring fairness, and creating a work environment where employees believe their efforts will lead to desired outcomes. The report is a valuable resource for students and professionals seeking to understand and apply motivation theories in a practical context.

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MANAGEMENT AND
ORGANISATIONS IN A GLOBAL
ENVIRONMENT – 980387

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Executive Summary
The report has been prepared to gain a deeper insight into the concept of motivation and how
it affects employees at work. The report includes a differentiation between content theories of
motivation and process theories of motivation. The report also explains some of the most
widely used motivational theories, such as the expectancy theory, McClelland’s theory,
Equity theory and the goal setting theory with examples.

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Table of Contents
Introduction.......................................................................................................................3
Motivation...................................................................................................................................3
Process Theories and Content Theories..............................................................................3
Content Theories..........................................................................................................................4
Process Theory.............................................................................................................................4
McClelland’ Theory of Motivation......................................................................................6
Goal Setting Theory...........................................................................................................7
Equity Theory of Motivation..............................................................................................8
Expectancy Theory of Motivation.......................................................................................9
Conclusion.......................................................................................................................11
References.......................................................................................................................12

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Introduction
Motivation
Motivation is a feeling in the employees that makes them direct their efforts towards the
achievement of individual and organisational goals and objectives (Lăzăroiu, 2015). The
contemporary business world has become highly complex and competitive, which is making
market survival difficult for business organisations. In such a situation, business
organizations are relying heavily upon their human resources to perform adequately and help
them in achieving a competitive edge in the market. To optimise the performance levels of
the employees, it is important to keep them motivated so that they remain engaged in their
jobs and committed to their organizations (Kuranchie-Mensah & Amponsah-Tawiah, 2016).
Further, the positive effects that employee motivation can have on the job attributes of
employees, such as job satisfaction, organisational and job commitment, performance,
psychological contract, retention rates, etc. make it even more important for managers to be
able to ensure high motivation levels in the workplace.
Employee motivation results because of a number of factors, which leads to different
behavioural patterns amongst them. There have been a lot of studies that have been carried
out in the field of employee motivation (Cook & Artino Jr, 2016). Motivation theories, such
as Maslow’s need hierarchy, ERG theory, McClelland’s theory, etc. are some of the pioneer
theories that are used by business organisations to ensure motivation in the workplace. In this
report, we will gain a deeper insight into the concept of motivation and the theories that are
available in the field of employee motivation. The report will discuss some of the pioneer
motivation theories in detail and how they can be helpful to business organisation in
motivating their employees. The report contains a deep insight into four theories of
motivation i.e. McClelland’s Need Theory, Goal Setting Theory, Equity Theory and
Expectancy theory and will discuss the factors that can lead to employee motivation by using
specific examples.
Process Theories and Content Theories
As discussed above, motivation is a field that has been studied extensively by scholars and
academic writers. There are a large number of theories that have been prepared in relation to

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employee motivation, such as Maslow’s need hierarchy, Vroom’s expectancy theory,
Herzberg’s two factor theory, Goal Setting theory, etc. These theories have been
distinguished on the basis of content and process. A detailed account of the two types of
theories is given below:
Content Theories
The theories that fall under the content theories category aim at studying the impact that
behaviour and psychology of a person on his motivation level, which directs the person to act
in a certain manner. In simple words, these theories are related to the needs of a person and
how the needs of a person can affect his or her behaviour to achieve a desired goal or an
objective. Content theories suggests business organizations to identify and fulfil employee
needs, which would lead to motivation amongst them.
Content theories of motivation allows an organisation to get a deeper insight into work
motivation by defining it in very general terms. It focuses on the importance of understanding
individual needs and providing the employees with an opportunity to fulfil those needs by
achieving a specific goal or objective. Content theories also provide an insight into the factors
that can lead to job satisfaction in a workplace (Business Essay, n.d.).
A limitation of the content theory is that they are culture bias. Some of the scholars have
argues that inclusion of self-actualisation in the need hierarchy by Maslow made the theory
more Western oriented as self-actualisation was a western concept, which is not prevalent in
other cultures. Further, the content theories fail to explain the reasons behind the behaviour
choice made by an individual from the multiple behaviour options that are open to them
(Hammond, 2018).
Process Theory
These theories of motivation are concerned with the cognitive antecedents that result into
motivation and also establishes a relation between the antecedents. In simple words, process
theories of motivation are aimed at studying the way in which motivation in individuals is
driven by their needs (Brent, 2018). These theories are based on the fact that individuals
require a sense of fair play in the workplace and have a requirement to gain an understanding
of the benefit that a certain behaviour would bring for them.

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One of the major benefits of using process theories to motivate employees is that they are
able to related performance and employee satisfaction. They are also able to relate cognitive
variables with one another, which makes it easier to understand employee needs. Process
theories have their cons as well. Unlike the content theories, process theories are complex and
can be difficult to be applied in a practical scenario. Further, these theories also fail to meet
the goals of prediction and control (Joy, 2016).

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McClelland’ Theory of Motivation
McClelland’s Theory of Motivation or the Three Needs Theory was developed on the
original theory of Need Hierarchy developed by Abraham Maslow. This theory was
developing in the 1960s and is one of the content theories in which McClelland identified
certain needs that the employees have while working in a company (Rybnicek, Bergner, &
Gutschelhofer, 2019). The three needs that were identified by McClelland were the need for
achievement, power and affiliation. McClelland proposed that all the people have different

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characteristics, which are influenced by their dominant motivator. Irrespective of gender,
caste, culture or age, everyone would be driven by one of the dominant motivator or one of
the three needs that have been listed above. The need theory proposes that in order to
motivate individuals, it is important to understand the dominant motivator that governs their
behaviour and fulfilling their needs accordingly. A similar theory is the Sirota’s Three Factor
Theory which also proposed three needs i.e. equity, achievement and camaraderie (Sirota &
Klein, 2013). The different in the two theories is that Sirota believes that an individual starts a
job with a motivation to do good in it but loses motivation with time because of poor
company policies and work conditions whereas McClelland’s theory is based on the fact that
a dominant motivator is a factor of a person’s culture and life experience and can play a huge
role in motivation.
People who are dominated by the need for achievement as a motivator have a greater
preference to work on tasks that have a moderate difficulty. They demand a feedback on the
efforts that they put in and also avoid taking both high-risk and low-risk. Such people feel
motivated through accomplishments in the workplace and through promotions in the
organisational hierarchy. People with a higher need for affiliation or having affiliation as a
dominant factor prefer to spend more time in building and maintaining relationship at work
(Ball, 2012). Such people enjoy to be a part of a group and have a need to be loved by others.
They have a greater tendency to abide by the norms of their workplace and their fear of being
rejected makes them resist changes that are targeted at transforming workplace norms. They
show a greater inclination towards collaboration and working in a team rather than being part
of a competitive environment. People with affiliation as a dominant motivator avoid high risk
and high uncertainty situations and are motivated to work well in areas that are based more
upon social interactions, such as customer services, client interactions, etc. The third
dominant motivator is the need for power. People with this type of a need are those who
enjoy work and are very disciplined. They are highly ambitious and believe that for a person
to win, another person would have to lose. They believe in competition and give little value
to group goals. People whose behaviour is directed by their need for power generally feel
motivation when they receive recognition and a status in the workplace (Management Mania,
2016). They are motivated when they win arguments, competitions or whenever they are able
to influence others at work. They have a need to rise in the organisational hierarchy and
achieve personal prestige as well.

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McClelland suggested that as 86% of the population is dominated by either one, two or all
three types of motivators, these motivators can be used to fulfil their needs and direct them to
behave in a desired manner. Based on the needs of a person, managers or senior level
management can assign them job duties and responsibilities that would keep them motivated.
Goal Setting Theory
Edwin Locke, in the 1960s, developed a motivation theory which came to be known as the
Goal Setting Theory. Locke in his theory suggested the importance of goal setting in
motivating individuals. The theory is based on the principal of developing an action plan that
is designed to motivate and guide a person towards the achievement of a specific goal. The
theory is based on the principal of linking employee performance with goal setting by
formulating challenging goals along with appropriate performance feedback can be helpful
for the employees in achieving better task performance (Rucker, 2014). Locke suggested that
in order to set goals that can motivate individuals, it is important for the goals to have certain
characteristics. The five important characteristics of a goal are:
- A goal should be clear and measurable
- A goal must be able to challenge the competencies or the skills of an employee and should
also lead to an achievement (Fusion, 2019)
- The employees must be engaged in the goal setting process to ensure commitment to the
goals
- There should be a system of feedback present in the workplace that can allow the employees
to get a regular review on their progress
- The goal should be complex but not overwhelming and necessary resources required for
achieving the goal should be made available to the employees
- The theory states that an organisation’s ability to formulate to formulate goals, with the above
mentioned characteristics, for its employees can be a deciding factor in its ability to motivate
its workforce. According to Locke, an efficient goal leads to the creation of a positive energy
in the employees and they are able to direct greater efforts towards the achievement of that
goal. Further, the theory also places an emphasis on employee commitment to the goals
established for them (Locke & Latham, 2019). An efficient part of the goal setting theory is

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the review and agree process. In the goal setting theory, Locke suggested that involving the
employees in the designing of goals can have a positive impact on their behaviour. Involving
the employees by asking them to review and agree on the goals being set up for them offers
them a certain degree of empowerment and accountability, which leads to motivation
amongst them (Lee, Murrmann, & George, 2012). The success of this theory can be judged
from the fact that even top global companies like Google and Apple have been using goal
setting theory in designing performance objectives of their employees (Sun, 2017).
Equity Theory of Motivation
Equity theory is a process theory of motivation that is based on the principle of balance or
equity. This theory, developed by Adam, suggests that the level of motivation of an employee
is largely corelated to his or her perception of equity, fairness and justice practiced by the
company. In simple words, higher an organisation is able to remain faire, higher will be the
motivation levels in its workforce (O., 2018). A perfect example of this theory, when an
employee perceives that his or peer is receiving a greater compensation in exchange for the
same job services, he or she become more likely to do less work in order to create a fairness.
Extrapolating this example, the theory suggests that the higher an individual perceives his
organisation to be fair, higher will be his motivation level (Bowman, 2016).
To offer a better understanding of the concept, Adam defined inputs and outputs in relation to
an organisational context. According to the theory, inputs are defined as the tasks or the
things that an employee does in order to achieve a desired outcome, which is termed as an
output. The inputs commonly comprise of working hours, commitment towards job and
company, enthusiasm, personal sacrifices made, psychological contracts, job roles and
responsibilities, etc. whereas the outputs comprise of salary, incentives, pension, insurances,
allowances, well-being initiatives, development opportunities, recognition, holidays, etc.
Adam proposes that individuals are not able to understand the concept of equity in isolation.
Rather, they have a tendency to look around at their peers and make a comparison. In case
their comparison makes them feel that an inequity exists in the workplace, they will adjust
their inputs to restore a balance or to create an equity (Osabiya, 2015). Adam also used an
equation to further explain the concept of equity:

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Another example of equity theory is that at times, even if an employee compares himself with
the CEO of the company, he will find that his compensation might be 20 times lesser than
that of the CEO. But, he would also be able to check for the existence of an equity by
recognizing the difference in inputs made by him and the CEO. He might be enjoying 2
holidays a week whereas the CEO never gets an off. This example is a perfect demonstration
of the broad sense in which the equity theory of motivation can be used.
Expectancy Theory of Motivation
One of the most widely used process theories is the expectancy theory of motivation that was
developed by Victor H. Vroom. In his theory of expectancy, Vroom proposes that employees
or individuals are motivated to perform certain tasks or demonstrate a certain behaviour only
if they feel or expect that it would lead them to achieve a specific goal or an outcome (Lloyd
& Mertens, 2018). Vroom’s theory was based on an assumption that the behaviour of an
individual is a factor of the choices made by him by choosing a specific course of action over
the others. Conversely, it also can be determined from the assumption that the choice made
by an individual, to act in a particular way over the other options, is based on the expectations
that only that choice could lead to a particular result. Vroom also used an equation to
represent his theory: Motivation (force) = ∑Valence x Expectancy (Miner, 2015)
According to Vroom, Expectancy is the belief amongst individuals that their efforts will help
them in achieving a desired performance goal. The level of difficulty also plays a role in
expectancy, which makes it important for business organizations to find out the factors that

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can help an employee in achieving the best possible performance. Valence is the value that an
individual attaches to a particular reward of an outcome,. This value attached to the outcome
is generally a factor of the needs, goals, values and sources of motivation that a person has.
Vroom proposed the value of valence to lie between -1 to +1 where, -1 means to avoid an
outcome, 0 means indifferent to the outcome and +1 means the need to welcome an outcome.
Ultimately, the level of motivation of an employee is determined by the equation, where
valance and expectancy play an important role. Another concept introduced by Vroom is the
concept of instrumentality. Instrumentality is a belief of receiving a reward in exchange for
meeting a performance objective. For example, let us take up a case of two students with
exceptionally high communication and management skills. The students undergo a training
program that would allow them to lean new theories and techniques which they will be able
to apply in a business setup. The expectancy of the students i.e. to perform well when they
work in an organisation is high. The instrumentality of the students i.e. the time they will
invest in the training program, their effort, energy, etc. are also high. Lastly, they are also
able to achieve promotions and reputation in the organisation that they start working with,
which implied that the valence is high as well. Summarizing the example, expectancy +
instrumentality + valence = motivation. This is the prime reason that kept the students
motivated.
According to this theory, if the management of an organisation can efficiently determine the
factors that are perceived of some value by the employees, they can motivate their employees
in a better way by providing them with the expectancy that they require and by increasing
their valence (Parijat & Bagga, 2014). To sum it up, this theory suggests that the employees
become motivated to put in extra efforts at work when they feel that the reward is of some
personal value to them. In order to motivate the employees, the following three conditions
have to be met:
- Increased efforts leading to better performance
- Increased performance leading to better rewards
- Better rewards being appreciated by the employees
According to Vroom, motivation cannot occur even if two of the above conditions are
fulfilled while a third condition is not. The ultimate implication of the theory is that people

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change their level of efforts in accordance with the value that they attach to a bonus, which
they would receive in exchange for their efforts.
Conclusion
Employee motivation, over a period of time, has become one of the most important non-core
function of human resource management. Academic studies have proved the benefits that
employee motivation can have on employee performance levels, job satisfaction,
organisational commitment, retention rates, etc. As a result, business organizations are
leaving no stone unturned to ensure high motivation levels in the workplace.
From the above information, we can clearly differentiate between the content theories and
process theories of motivation and how each of the theory can have an impact on employee
motivation level. The theories discussed above provide a clear insight into the concept of
employee motivation and factors that can be helpful for human resource managers in
instilling motivation amongst their employees. The theories discussed above also provide a
detailed idea on the effect of fulfilling employee needs on their behaviour and how human
resource managers can use performance, results, rewards, etc. to keep their employees
motivated.

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