Motivating Workers

before you start

Recall that employee engagement describes the sense of belonging and commitment employees have for an organization. Engaged employees perform at a higher level because they know how their contributions are serving the organization and feel valued. Engagement is highly correlated to motivation. A lack of engagement leads to low performance and high turnover, which is expensive for companies. As a leader in operations management, it is important to consider how to motivate employees to reduce turnover, increase employee satisfaction, increase productivity, and achieve high quality products and services.

1. Content-Based Theories of Motivation

1a. Hierarchies of Human Needs

We will look at motivation from two lenses, beginning with content-based theories, which focus on what motivates people. In the next section, we will describe process-based theories, which focus on the psychological aspects of motivation and seek to explain why people may experience different levels of motivation when offered the same rewards.

EXAMPLE

David is highly motivated in his job as a clerk at a clothing store. Content theories would describe sources of his motivation like a paycheck, social recognition for his expertise, and his genuine interest in fashion. Process theories would focus on motivating factors like job design that reinforce his motivation through reward and promotion.

Content theories of motivation are rooted in the work of Abraham Maslow, particularly the hierarchy of human needs. While this has since been critiqued and revised, it is good to know the origins of motivational theory. Maslow divided human needs into a hierarchy of importance and believed that needs must be satisfied in order, starting from the bottom physiological needs and then safety and security needs. That is, according to Maslow, people need to be fed and sheltered and feel safe before they can turn to deeper motivations like social needs (friendship, belonging), ego and esteem needs (recognition, a sense of importance) and finally, self-actualization (personal fulfillment, doing what one loves and feeling appreciated for it).

Image OM436a Maslow’s Pyramid (Check OB)

Caption: Maslow’s hierarchy of needs states lower-level needs, like psychological needs, must be met in order to move up the hierarchy.

Let’s see how Maria, as COO, might tend to the needs of her workers to make sure they are motivated and engaged.

1. Maria ensures that workers are fairly compensated, have health care, and otherwise can have their basic needs met. She also needs to make sure they have breaks to eat, rest, and take care of personal needs. This tends to their long-term and short-term physiological needs so they are not distracted at the job.
2. Maria sees to workers’ safety needs: The company provides protective equipment and clothing and implements safety protocols that go beyond legal compliance. In addition, the company ensures job security.
3. Maria tries to cultivate a friendly work environment by recognizing and mitigating sources of conflict, encouraging small talk on the floor, and hosting social gatherings about once a month so workers can feel more connected.
4. To meet esteem needs, Maria acknowledges workers through a “producer of the month” award that goes to the employee with the fewest defects and fastest production. She emphasizes improvement in performance reviews and acknowledges effort while on the factory floor.
5. Finally, Maria shows an interest in each worker’s ambitions, even if they are not directly related to their work at Gordon’s Bicycle Company. For those who do want to pursue careers within the company or within operations, she makes sure training and guidance are provided.

Similar to Maslow’s theory, Alderfer’s ERG theory compresses Maslow’s needs into three main needs: existence needs, relatedness needs, and growth needs (hence, ERG), which can be met in a similar way as described in Maslow’s hierarchy. A key development of ERG theory is recognizing more fluidity between levels, such as people forming social connections to meet physiological needs or attaining status (ego and esteem needs) to meet social needs.

terms to know

Content-Based Theories

Theories of motivation that are based on the rewards (tangible or intangible) that can be attained from high performance.

Process-Based Theories

Theories of motivation that are based on psychological factors such as perceptions of equity and expectancy.

1b. Learned Needs Theory

David McClelland and his colleagues at Harvard University performed further research on human needs in the 1960s and developed learned needs theory. In this model, human needs are organized into three categories:

• Need for achievement: a desire to excel at tasks one is performing.
• Need for affiliation: a desire to be part of a team and the need for social interaction.
• Need for power: a desire for autonomy and the ability to control things and have influence.

Rather than sort these into a hierarchy, McClelland proposed that different people will emphasize different needs. Some have a high need for achievement, others for affiliation, and others for power. A manager will thus determine what each worker most needs and provide it—feedback and mentorship to someone with a need for achievement, affirmation of being valued and opportunities to work with others for a person with a need for affiliation, and autonomy and opportunities to lead for a person with a desire for autonomy. As the name suggests, McLelland also suggests that the needs people emphasized are learned, not innate. That is, our environment and upbringing will determine if we are motivated by achievement, affiliation, or power.

reflect

Of the three, what do you think is your main motivational driver at work? Does your supervisor motivate you properly based on your driver?

Understanding these human needs in operations management can help us become better managers and leaders. If we can identify one of these three drivers in each of our employees, we can more effectively manage and motivate them.

1c. Motivator-Hygiene Theory

Motivator-hygiene theory, proposed by Frederick Herzberg in the 1950s, offers a two-factor model for understanding employee motivation. According to Herzberg, there are two categories of factors that influence employee motivation:

• Hygiene factors and motivators, also known as extrinsic factors, are related to the job environment and working conditions. These factors, when absent, can lead to dissatisfaction and demotivation but do not necessarily motivate employees when present. Examples of hygiene factors include salary, job security, company policies, and working conditions. Simply put, they must be present for workers to be motivated but do not ensure motivation.
• Motivators, or intrinsic factors, are directly related to the work itself. These factors, when present, can lead to increased satisfaction and motivation. Examples of motivators include achievement, recognition, responsibility, advancement, and growth.

Herzberg's theory suggests that while hygiene factors are essential for preventing dissatisfaction, they alone do not motivate employees. To truly motivate employees, organizations must focus on providing opportunities for growth, recognition, and challenging work. When organizations address both hygiene factors and motivators, they can create a positive work environment that fosters employee satisfaction and productivity.

EXAMPLE

Suppose Ellen is the general manager of a restaurant. She gives everyone a pay raise and is surprised that people aren’t more motivated to come to work. In this case, Ellen attempted to motivate people based on hygiene factors, rather than motivators. Suppose Ellen gives a pay raise but also decides to offer management training programs and sets up a pathway for servers to work into management positions in the franchise. This is what is likely motivating to people, not the pay raise alone.

The important thing to remember about this theory is the fact that hygiene factors must be present, otherwise employees may experience dissatisfaction. Motivational factors are those factors that align with personal goals like the need for growth, challenge, and recognition.

terms to know

Hygiene Factors

Environmental aspects of a work environment; these must exist for a person to be motivated but do not ensure motivation.

Motivators

Intrinsic motivators like challenge, recognition, and personal growth.

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2. Process-Based Theories of Motivation

2a. Equity Theory

The content theories above discuss what motivates people. In contrast, process theories try to understand motivation at a psychological level. For example, a process theory might explain why the same motivators work in one workplace and don’t in another.

EXAMPLE

Say Brenda is in a job where she has her needs met: fair pay and benefits, social recognition, and opportunities for growth. However, she has little motivation and struggles to get her work done. She is often distracted. She finally leaves and takes another job doing similar work for similar pay and benefits. However, now she is highly motivated. The work and extrinsic motivators are the same, so what’s the difference? That is what a process-based theory tries to answer.

One process-based theory is equity theory, a key concept in organizational behavior that states individuals are motivated by a sense of fairness in the organization or are demotivated by a sense of unfairness. This theory suggests that people assess their inputs (contributions) and outcomes (rewards) in relation to others' inputs and outcomes within the same organization.

EXAMPLE

Suppose at the first job, Brenda knew that male coworkers were doing the same job for more money. Although she felt her own pay was in line with the market for her skills, the perception of sexism and unfairness in compensation undermined her ability to be motivated by pay and benefits, or even take pleasure in the job.

When individuals perceive that their input-to-outcome ratio is equal to that of others, they feel satisfied. However, when they believe that their ratio is unequal to that of others, they experience inequity. This inequity can lead to various motivational consequences, such as reduced effort, increased absenteeism, or high job turnover.

To restore balance, the individuals facing the inequity may engage in several strategies. They may adjust their inputs by working harder or less, or they may attempt to change their outcomes by asking for a raise, seeking additional benefits, or changing jobs (as Brenda did).

Alternatively, they may distort their perceptions of their own or others' inputs or outcomes.

EXAMPLE

Brenda might have found some justification for the discrepancy, such as recognizing that while the men in her position did the same work, they all had MBAs, while she did not.

Understanding equity theory is crucial for organizations. First, they must recognize that motivation is influenced by equity and make sure the workplace is indeed equitable. However, they must remember that perceptions of inequity are what influence motivation, meaning that there should be transparency about compensation, qualifications, and performance, and they should provide opportunities for employees to voice concerns and ensure that rewards are aligned with contributions.

EXAMPLE

Say Brenda has the opportunity to voice her discontentment over inequity in pay. Managers acknowledge that there is a pay discrepancy, not from intentional sexism, but because the men negotiated a higher salary when they started. But because this is not fair to Brenda, they redesign their compensation model so that starting salaries are set and raises are fixed.

2b. Expectancy Theory

Expectancy theory is a motivational theory that states that individuals are more likely to exert effort when they believe their effort will lead to performance (expectancy), that performance will lead to rewards (instrumentality), and that the rewards are valuable to them (valence). When all three factors are high, individuals are more motivated to exert effort.

IN CONTEXT

Suppose a small plumbing company is short staffed, and they really want to get some trainees licensed to do plumbing work on their own. To meet this goal, the company offers to give each trainee $150 to take the test and obtain a license within the next month. One trainee considers the offer.

• She does not feel confident that she will pass the exam if she takes it, even if she sets aside time to study for it.
• She is thus not confident she will get the reward, since it is only promised to those who pass the exam.
• The money is desirable but not enough to make the commitment.

However, suppose the company offers to tutor her and help her prepare and will give the bonus pass or fail as long as she gives an honest effort. Furthermore, suppose the plumbing company will reward her with a permanent promotion if she is a licensed plumber, with a pay raise and bonus.

This improves her expectancy; with the tutoring from experts, she feels more confident she will pass the test. The instrumentality is better because she will get the small reward even if her hard work doesn't pay off. Finally, the valence is excellent since she will attain permanent and significant improvements to her position and compensation.

The bottom line in the expectancy theory, like equity theory, is about perceptions. To be motivated, workers must be confident that they can meet the necessary performance goal, that the company will follow through as promised, and that the reward is valuable.

terms to know

Expectancy

The confidence a worker has that they can meet their performance goals.

Instrumentality

The confidence a worker has that they will receive the rewards if they achieve their performance goals.

Valence

The desirability of the rewards to the worker.

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3. Other Considerations for Employees Motivation

While there are many other theories we could discuss, this tutorial only touches on some of the methods to consider when motivating employees, to reduce turnover and increase productivity. Other methods for motivation include considerations related to:

• Diversity & Inclusion: Creating a welcoming environment to all, ensuring advancement and pay is fair, and engaging and listening to all employees is a cornerstone of motivation. If employees do not feel welcomed, any other motivational efforts may not matter.
• Corporate Social Responsibility (CSR): Implementing CSR efforts can help motivate individuals by alignment of goals with personal values. For example, if a company allows employees paid time to volunteer in the community, this can be an alignment of values, which in turn can result in increased motivation.
• Providing Opportunities for Growth and Development: Even in low-paying, unskilled jobs, providing opportunities to develop and showing potential career paths can assist in employee motivation. Remember that this is also crucial to job design.
• Relationship Building: Having open communication and listening to ideas and concerns and supporting employees can go a long way toward motivating people. Empowering employees to make decisions, delegating responsibility, and encouraging initiative are also tools to help motivate.

Many companies simply try to motivate people based on pay and performance-based awards. As you’ve learned, most employees are motivated by a variety of things, and motivation is as much about perceptions of equity and expectancy as it is about the rewards offered. Another common theme is recognizing that people are motivated by different rewards—some primarily seek achievement, others recognition, and some seek advancement.

Managers can work with individuals to find their personal motivators, identify performance goals inside their locus of control, and find appropriate rewards that motivate them. When applied effectively, employee motivation can increase employee satisfaction, reduce turnover, increase productivity, and help organizations create high-quality products and services.