Neo- classical

• Neoclassical Theory


  Recognizes the importance of individual or group behavior and emphasized human relations, also known as Behavioral Theory of Organization, Human Relations, or New Classical Theory of Management
• Neoclassical Theory


  • Based on Elton Mayo, Chester Barnard, and Herbert Simon's Theories
  • Adds a personal or human element to the study of organization, considering the interrelationship between an organization's requirements and the characteristics of its members
  • Productivity was achieved as a result of high morale, which was influenced by the amount of individual, personal, and intimate attention workers received
  • Introduced informal organization and emphasized the: individual, work group, and participative management
• Elton Mayo's Hawthorne Experiment


  1. Conducted in Western Electric Company Hawthorne, Chicago

  2. Study if the workers would be more productive depending on the levels of illumination in the factory

  3. Increased productivity when lighting conditions improved

  4. Workers motivation increased due to interest shown by the company in them and their wellbeing
• Chester Barnard's Comprehensive Theory of Behavior in Formal Organizations


  • People in executive roles must foster a sense of purpose, moral codes, ethical visions, and create formal and informal communication systems
  • People should cooperate, thus making no place for conflicts among workers
• Herbert Simon's Application of Classical Theories to current situations of his time

  • Contradicted Henri Fayol's Administrative Management
• Human Relations Movement


  Social and psychological factors are important in determining worker productivity and satisfaction
• Efficient leaders


  Employee-centric, democratic, and follow a participative style
• Behavioral Movement


  Proposes ideas how managers should behave to motivate the employees
• Argyris' Growth Perspective


  • Growth was a natural and health experience for an individual
  • Organizations that acknowledged and aided this growth would be more likely to prosper than those that are ignored or actively inhibited this growth
  • Passive to active organisms
• Humanistic Theory


  Organizational success in terms of employee motivation and the interpersonal relationships that emerge within the organization
• Theory X


  • Employees are viewed to be lazy, selfish, uninterested in work, lack in ambition, and not very intelligent
  • Managers control and direct employees in order to make outputs
  • Employees is passive and unresponsive to organization needs
  • Most prevalent set of beliefs about employees from the birth of industry
  • Lack of focus would lead to apathy and resistance
• Theory Y


  • Much more humanistic and developmental orientation, emphasizing not only the inherent goodness, capacity, and potential of employees but also their readiness to develop those inherent characteristics
  • Emphasizes management's responsibility for nurturing those qualities and providing employees with opportunities to develop their inherently positive characteristics in the workplace
  • Without unduly constraining organizational or managerial controls
• Motivation


  • The internal force that drives a worker to action as well as the external factors that encourage that action
  • Ability and skill determines whether the worker can do the job, but motivation determines whether a worker can do it properly
• Three Individual differences traits that are most related to work motivation

  • Self-Esteem
  • Intrinsic Motivation
  • Needs for Achievement and Power
• Self-Esteem


  • The extent to which a person views himself as valuable and worthy
  • Employees high in self-esteem are more motivated and will perform better than employees low in self-esteem
  • Consistency Theory: employees who feel good about themselves are motivated to perform better at work than employees who do not feel that they are valuable and worthy people
  • Employees try to perform at levels consistent with self-esteem is compounded by the fact that employees with low self-esteem tend to underestimate their actual ability and performance
  • Chronic Self-Esteem: person's overall feeling about himself
  • Situational Self-Esteem: person's feeling about himself in a particular situation
  • Socially Influenced Self-Esteem: how a person feels about himself on the basis of the expectations of others
  • To increase self-esteem, employees can attend workshops in which they are given insights into their strengths
  • Experience-with-Success: employee is given a task so easy that he will almost certainly succeed
  • Galatea Effect: the relationship between self-expectations and performance
  • Train supervisors to communicate a feeling of confidence in an employee
  • Pygmalion Effect/Rosenthal Effect: if an employee feels that the manager has confidence in him, his self-esteem will increase
  • Golem Effect: occurs when negative expectations of an individual cause a decrease in that individual's actual performance
• Intrinsic Motivation


  They will seek to perform well because they either enjoy performing the actual tasks or enjoy the challenge of successfully completing the task
• Extrinsic Motivation


  They don't particularly enjoy the tasks but are motivated to perform well to receive some type of reward or to avoid negative consequences
• Work Preference Inventory


  Measures the intrinsic and extrinsic motivation
• Needs for Achievement and Power


  • Employees differ in the extent to which they are motivated by the need for achievement, affiliation, and power
  • Employees who have strong need for achievement are motivated by jobs that are challenging and over which they have some control, whereas employees who have minimal achievement needs are more satisfied when jobs involve little challenge and have a high probability of success
  • Employees who have a strong need for affiliation are motivated by jobs in which they can work with and help other people
  • Employees who have strong need for power are motivated by a desire to influence others rather than simply to be successful
• Job Expectations Theory


  • A discrepancy between what an employee expected a job to be like and the reality of the job can affect motivation and satisfaction
  • When expectations from the job was not met, the employee might feel unmotivated
  • Realistic Job Preview is really important
• Hackman and Oldham's Job Characteristics Theory/Model


  • Employees desire jobs that are meaningful, provide them opportunity to be personally responsible for the outcome of their work, and provide them with feedback of the results of their efforts
  • Jobs will have motivation potential if they allow employees to use a variety of skills and to connect their efforts to an outcome which has meaning, is useful, or is appreciated by coworkers as well as by others in society
  • Job Diagnostic Survey
  • Job Enrichment: redesigning jobs to give workers greater responsibility in the planning, execution, and evaluation of their work, raises the level of responsibility
• Core Job Characteristics


  • Skill Variety
  • Task Identity
  • Task Significance
  • Autonomy
  • Feedback
• Abraham Maslow's Need Hierarchy


  • Employees would be motivated by and satisfied with their jobs at any given point in time if certain needs were met
  • This model condenses a long list of previously studied drives into five basic categories (primary needs) Proposed that human beings are motivated by several primary needs (drives) at the same time, but the strongest source of motivation is the lowest unsatisfied need
  • As the person satisfies the a lower-level need, the next higher need in the hierarchy becomes the next strongest motivator and remains so even if never satisfied
  • Motivation can be shaped by human thoughts
• Maslow's Primary Needs


  • Physiological Needs
  • Safety Needs
  • Belongingness/Social needs
  • Ego Needs
  • Self-Actualization
• Clayton Alderfer's ERG Theory


  • Individuals can be motivated by multiple levels of need at the same time, and that the level which is most important to them can change over time
  • Individual's priorities and motivations may be fluid and can move between existence, relatedness, and growth
• Frederick Herzberg's Two-Factor Theory


  • Some factors seemed to cause job satisfaction and dissatisfaction
  • Motivators – related to the work itself, the type of work, level of responsibility, and the chances for recognition, advancement, and personal achievement
  • Hygiene – related to the context in which people perform the job, e.g., benefits, working conditions, type of supervision, salary, company policies
  • Eliminate job dissatisfaction by providing basic hygiene factors (compensated properly, treated well, and provided with job security)
• David McClelland's Achievement Motivation Theory


  • Three needs are central to work motivation: needs for achievement, power, and affiliation
  • Need for Achievement – drive to success and get the job done; love the challenges of work, task-oriented, preferring situations offering moderate levels of risk or difficulty
  • Need for Power – need to direct and control the activity of others and to be influential
  • Personal Power: used toward personal ends
  • Institutional Power: power that is oriented toward organizational objectives
  • Need for Affiliation – desire to be liked and accepted by others
• Four-Drive Theory


  • Emotions are the source of human motivation and that these emotions are generated through four innate and universal drives
  • Drive to acquire – seek out, take, control, and retain objects and personal experiences
  • Drive to bond – variation of the need for belonging and affiliation, motivates the people to cooperate and, essentially, for organizations and societies
  • Drive to Comprehend – need to know, discover answers to unknown
  • Drive to defend – protect ourselves physically, psychologically, and socially
• Self-Regulation Theory


  Employee monitor their own progress toward attaining goals and then make the necessary adjustments: that is to self-regulate
• Reinforcement Theory


  • Draws principles of operant conditioning and states simply that behavior is motivated by consequences
  • Operant Conditioning – employees will engage in behaviors for which they are rewarded and avoid behaviors for which they are punished
• Factors the must be considered in determining the effectiveness of incentive programs


  • Timing of incentive
  • Contingency of the consequences
  • Type of incentive used
  • Use of individual-based versus group-based Incentive
  • Use of positive incentives versus negative incentives
  • Fairness of the reward system
• Types of Reinforcement


  • Positive – addition of something to increase behavior
  • Negative – removing something to increase behavior
• Types of Schedules


  • Fixed Interval
  • Fixed Ratio
  • Variable Interval
  • Variable Ratio
• Organizational Behavior Modification


  Certain target behaviors are specified, measured, and rewarded
• Edwin Locke's Goal Setting Theory


  • Emphasized the role of specific, challenging performance goals and worker's commitment to those goals as key determinants of motivation
  • Difficult or challenging goals will also result in greater levels of motivation, if the goals have been accepted by the workers
  • Specific, Measurable, Attainable, Relevant, Time-Bound
• J. Stacey Adam's Equity Theory

  • Based on the premise that our levels of motivation and job satisfaction are related to how fairly we believe we are treated in comparison with others
  • Inputs – those elements that we put into our jobs
  • Outputs – elements we receive from our jobs
  • Employees subconsciously list all their outputs and inputs and then compute an input/output ratio by dividing the output value by input value
  • When an employee's ratio is lower than those of others, he will become dissatisfied and be motivated to make the ratios equal in one or more ways
  • Our motivation decreases when our input/output ratios are low
• Edwin Locke's Goal Setting Theory


  Emphasized the role of specific, challenging performance goals and worker's commitment to those goals as key determinants of motivation
• Difficult or challenging goals


  • Will also result in greater levels of motivation, if the goals have been accepted by the workers
• SMART goals


  Specific, Measurable, Attainable, Relevant, Time-Bound
• J. Stacey Adam's Equity Theory

  Based on the premise that our levels of motivation and job satisfaction are related to how fairly we believe we are treated in comparison with others