Motivational Theories and Reward Management


Maslow's Hierarchy of Needs and Reward Management for Employee and Organization

Maslow theory of motivation comprised of five tire-model, that accurately depict the human needs in a hierarchical pyramid. The needs in the bottoms of the pyramid (Physical) are the most fundamental need while at the top of the pyramid (Self-actualization) is the most complex and secondary needs.

 

Physical Needs

Physical needs are primary for the survival of the human body, such as food, water, air, and health. Human being strives for fulfilling the physical need through employment, and spend a productive life. The extrinsic motivation such as wages or salary elicits a particular behavior among human to be consistent with their jobs and perform well. The organizations through attractive salary may enhance the motivation level of the employee to perform well in the workplace.  

 

Security Needs

Security or safety needs refers to the order and control in human lives concerning the safety against injury or accidents, financial and health security as well. The insurance plan, law, and order, stability, freedom from fear and backup are the primary advantage that employee expects from his organization, and as a result, contribute to the productivity of the organization. In contrast, if an employer does not get safety or security in the above areas, his affiliation and motivation towards the organization and task decrease. As a result, he performs below the mark, that is not merely harmful to the employees, but adversely affect the productivity of the organization as well.

Social Needs

Social need indicates a healthy relationship between employee, employer, and owner. The substantial body of researches indicates that collaboration between staff member and owner enhances the productivity of the organization. If the owner is authoritative and dominating, the employee feels hesitation to share their ideas and have a fear of making a mistake or encounter performance anxiety due to pressurizing atmosphere at a workplace, that further decrease their work performance. On the hand, the co-operative staff, owner and manager may facilitate the employee works and ideas that enhance the intrinsic motivation among employees. The organization may enhance the performance level of the employee rising the healthy relationships among employers at the workplace.

Self-Esteem or Ego

Respect and appreciation are fundamental for all human and people strive to gain respect not merely in other eys but their own eyes as well. The recognition at work increases the motivation to perform better in the future to maintain a sense of self-worth. Therefore the organization practices the rewards, awards, and bonuses to promote the desired behavior among employers.

Self-Actualization

Self-actualization people are self-aware about their capabilities, talents, and leggings. They strive for polishing their skills and try to overcome their weakness in the workplace. Such people expect and perform new tactics to enhance productivity and their skills as well. If an organization facilitate people to flourish in their desired area their motivation level increases and they perform well.

Expectancy Theory

Vroom presented the Expectancy theory in 1990 that deals with motivation and management. The expectancy theory is based on the formula, Motivation = Valance x Expectancy, it is also referred to as three basic beliefs of the expectancy theory. The formula predicts and indicates the occupational choice, job satisfaction, performance and affiliation with the job. According to the theory, the performance of an employee depends on individual factors such as experience, ability, knowledge, and skill.
Furthermore, the intrinsic and extrinsic motivation towards desired rewards plays a significant role in the performance level. For example, if an employer put their best effort in work and achieve a reward, but the nature of reward does not match his expectation, may decrease his motivation to perform better in the future. In contrast, a desired and expected result may enhance the performance in a particular task, and increase the probability to perform better in the future as well.

Equity Theory

In 1963, Adam introduced the theory of equity and fairness as a critical component of the motivation. In this theory, Adam signified the importance of equity in developing motivation among employee to perform better at a workplace. If all people are being treated equally, that enhance the sense of self-respect and self-esteem among people. According to researchers high self-respect and self-esteem are positively correlated with the motivational level. The employee treated unfairly or get the least minimum advantage at a workplace, as compared to similarly ranked employee may develop the negative association with the organization that further decreases their motivation to perform better at a workplace. Furthermore, the inequity in input an output ratio adversely affect their sense of self-esteem.

Fredrick Herzberg’s Two Factor Theory

Fredrick Herzberg’s postulate two-factor theory in 1959, also named Motivation-hygiene theory.  The dual factors of the theory comprised of job satisfaction and dissatisfaction, that are highly interlinked to motivation at a workplace. The satisfaction factors such as job status, recognition, performance, growth, and opportunities are well in an organization, the motivation to perform better at a job would increase. The dissatisfier such as salary, relationship with the colleague, company administrative or policies, interpersonal relationship, and job security may demotivate the employee for putting the best effort to work. The improvement in dissatisfier, by the organization, minimize the job dissatisfaction to enhance the motivation t workplace.