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Chapter 8
Motivation and Empowerment

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Chapter Objectives
Recognize and apply the difference between
intrinsic and extrinsic rewards.
Motivate others by meeting their higher-level
needs.
Apply needs-based theory of motivation.
Implement individual and systemwide rewards.
Avoid the disadvantages of “carrot-and-stick”
motivation.
Implement empowerment by providing the five
elements of information, knowledge, discretion,
meaning, and rewards.
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Motivation
The forces either internal or external
to a person that arouse enthusiasm
and persistence to pursue a certain
course of action

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Ex. 8.1 A Simple Model of

Motivation
Need Creates desire to
fulfill needs (money,
friendship, recognition,
achievement

Behavior Results
in actions to fulfill
needs

Rewards Satisfy
needs: intrinsic or
extrinsic rewards

Feedback Reward informs person whether behavior was appropriate and should
be used again

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Types of Rewards
Intrinsic Rewards
Internal satisfactions a person receives in the
process of performing a particular action

Extrinsic Rewards
Rewards given by another person, typically a
supervisor, such as pay increases and
promotions

Systemwide Rewards
Rewards that apply the same to all people
within an organization or within a specific
category or department
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Ex. 8.2 Examples of Intrinsic and
Extrinsic Rewards

Individual

Systemwide

Extrinsic

Intrinsic

Large merit increase

Feeling of selffulfillment

Insurance benefits

Pride in being part of
a “winning”
organization

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Ex. 8.3 Needs of People and
Motivation Methods
Needs of people
Conventional
management

Leadership

Lower needs

Higher needs

Carrot and stick
(Extrinsic)

Empowerment
(Intrinsic)

Control people

Growth and
fulfillment

Adequate effort

Best effort

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Ex. 8.4 Maslow’s Hierarchy of
Needs
Need Hierarchy
Self-actualization Needs

Fulfillment on the Job
Opportunities for advancement, autonomy,
growth, creativity

Esteem Needs

Recognition, approval, high status, increased
responsibilities

Belongingness Needs

Work groups, clients, coworkers, supervisors

Safety Needs
Physiological Needs

Safe work, fringe benefits, job security
Heat, air, base salary

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Ex. 8.5 Herzberg’s Two-Factor
Theory

Highly Satisfied

Area of
Satisfaction

Motivators
Achievement
Recognition
Responsibility
Work itself
Personal growth

Motivators
influence level
of satisfaction

Neither Satisfied
nor Dissatisfied

Area of
Dissatisfaction

Hygiene
Factors
Work conditions
Pay/security
Co. policies
Supervisors

Hygiene factors

influence level of
dissatisfaction

Interpersonal. relationships

Highly Dissatisfied

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Acquired Needs Theory
McClelland’s theory that proposes that
certain types of needs are acquired during
an individual’s lifetime
Three needs most frequently studied:
Need for achievement
Need for affiliation
Need for power

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Ex. 8.6 Key Elements of
Expectancy Theory
E > P expectancy
Effort
Performance

P > O expectancy
Performance

Outcomes

Valence – value of outcomes
(pay, recognition, other
rewards)

Motivation

Will putting effort into the task lead
to the desired performance?

Will high performance lead to the
desired outcomes?

Are the available outcomes
highly valued?

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Equity Theory
A theory that proposes that
people are motivated to seek
social equity in the rewards they
expect for performance

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