The Significance of Motivation in Modern Management

Motivation is an essential aspect of modern management and often overlooked until issues arise. Sanjeev Sharma emphasizes that "Pain captures people's attention," highlighting the significance of motivation in driving human actions. Managers should be able to identify and address their employees' most urgent needs, along with other needs, to maintain satisfaction, reduce stress, and foster high motivation levels. Having content and motivated employees is valuable as it decreases staff turnover and associated training costs since they are less likely to quit.

Additionally, these employees will possess the necessary skills and experience, resulting in enhanced performance and overall company success.

This essay examines the theories put forth by Alderfer and Adams, emphasizing both their similarities and differences. Additionally, it investigates how these theories can be integrated to enhance effectiveness and decrease the chances of mistakes or ambiguity in motivating employees.

Employee motivation can be divided into two categories: content and process theories. Content theories focus on the idea that individuals have a set of needs that must be satisfied.

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One prominent example is Maslow's Hierarchy of Needs (1954), which organizes human needs into a pyramid with five levels. The first level encompasses physiological needs such as food, shelter, and clothing, which must be fulfilled before moving on to the next level. The subsequent levels include security needs, social needs, self-esteem (including recognition and self-belief), and self-actualization (the realization of one's full potential) (R. Fincham, P Rhodes, 2005 p.195). Another similar theory is Alderfer's ERG (Existence, Relatedness, and Growth) theory developed in 1972.

Alderfer's theory posits that there are three sets of needs: Existence, which encompasses basic necessities such as food, shelter, clothing, and safety (similar to Maslow's first and second levels); Relatedness, which includes social activities, family, and a friendly work environment (similar to Maslow's third and fourth levels); and Growth, which involves recognition from supervisors/managers, occasional bonuses or salary increases, and promotions (similar to Maslow's fourth and fifth levels).

Unlike Maslow's Hierarchy of Needs, Alderfer's theory does not prescribe a specific sequence for satisfying these needs. However, if individuals have unmet needs, they will seek fulfillment or strive to eliminate the need (Kotler et al., 2005). This concept aligns with the Frustration - Regression principle in Alderfer's theory. When a need is satisfied, it becomes stronger (as shown in the chart below) (12manage.com). Over time and due to changes in lifestyle or circumstances, individuals may revisit previously fulfilled needs while establishing new ones that are more demanding to address their current situation.

Companies have limited influence on the Existence set of needs, apart from providing sufficient pay to cover bills and provide for a family's basic needs. In some cases, companies have built worker villages to provide accommodation and other necessities, thereby exerting some control over workers' lives. However, there are various ways to satisfy the Relatedness and Growth sets of needs. Relatedness can be fulfilled by fostering a friendly and open work environment, organizing non-work related social activities with colleagues, and offering additional holidays for spending time with families. Growth, which is arguably the most important and work-related need, relies heavily on supervisors for factors such as promotions and salary increases. Furthermore, receiving praise and recognition from a supervisor is generally more impactful than receiving similar feedback from co-workers. Nonetheless, being acknowledged as an unofficial leader by co-workers can also serve as a strong motivator and provide satisfaction.

Process theories acknowledge that individuals have different needs and focus on how employees perceive themselves and their treatment in relation to their coworkers and performance. For instance, Adams' Equity theory examines the input and output of workers to establish a sense of balance. Inputs encompass the effort and performance an employee puts into their job, such as dedication, long hours, and high efficiency. On the other hand, outputs consist of what the employee expects to receive in return, such as recognition from supervisors in the form of praise, salary increases, promotions, bonuses, and similar rewards. Adams emphasizes that maintaining a balance between inputs and outputs is crucial. When an imbalance occurs, an employee may experience a decline in self-esteem and motivation or face pressure to perform better, leading to stress and ultimately a decrease in performance. While the impact of feeling overpaid is not extensively studied, it is believed to have minimal effect on the worker but may affect other employees who may perceive themselves as underpaid or undervalued. (SIOP)

Therefore, it is important to balance additional inputs with corresponding outputs. However, it is crucial to keep in mind that employees will primarily compare themselves to their colleagues. If one employee receives higher rewards, such as a promotion, others will seek justification for this discrepancy. If no justification is found, it may result in feelings of neglect, leading to a decrease in performance or a request for a promotion. Alternatively, employees may encourage the individual receiving higher rewards to work harder or convince themselves that they are not deserving of such rewards _(SIOP)_. These outcomes can be mentally detrimental and create stress in the workplace. In the worst-case scenario, they can also cause tension among the workforce, resulting in strikes or violent outbursts. Consequently, this will ultimately lead to a decline in overall company performance _(Fincham, Rhodes, 2005)_.

The primary distinction between Alderfer's and Adams' theories lies in their respective focuses. Alderfer's theory centers on satisfying needs, while Adams' theory emphasizes establishing a balanced relationship between inputs and outputs for workers, as well as fostering equality and fairness among colleagues. Within Alderfer's theory, the specific methods for determining when and why to motivate employees are not specified. In contrast, Adams' theory considers these factors more closely. This clear difference in foundation underscores the complete dissimilarity of these two theories. Additionally, Alderfer's theory includes the principle of Frustration-Regression, whereby an unfulfilled need is compensated for by satisfying other needs. Similarly, if the balance within Adams' theory is unfair, employees will experience discomfort. Both scenarios divert employees' attention from their job responsibilities, leading to a decline in performance.

Both Alderfer's and Adams' theories emphasize the importance of finding balance, although they focus on different aspects. According to Alderfer, employee needs should be equally addressed within each of the three sets, ensuring that no needs are overlooked. However, a need can be disregarded if it has been recently fulfilled. In contrast, if one need or set of needs has been recently satisfied, it takes precedence in terms of satisfaction level, justifying its temporary neglect until other needs reach the same level. This process may take time and does not require immediate adjustment of the scales. On the other hand, Adams' scales should always be leveled. The longer it takes to achieve balance, the greater the discomfort employees feel about injustice, which ultimately leads to decreased satisfaction, motivation, or increased stress levels.

In fact, Alderfer's theory can easily be integrated into Adams' theory as a means of determining outputs. For instance, friendly relationships in the workplace are part of the Relatedness set of needs and outputs, which are provided by management. Alderfer's theory does not consider inputs. This distinction makes Adams' theory more complex and better suited for understanding when and why employees should be rewarded. If a manager aims to enhance worker motivation and job satisfaction, they can assess the inputs of a worker in comparison to their co-workers and determine an appropriate output on a scale. However, in order to make this comparison between past employee performance and their co-workers' current performance, constant monitoring is necessary, and records need to be kept. On the other hand, applying Alderfer's theory requires the manager to grasp the employee's needs and situation to identify which needs should be fulfilled and determine the best approach for satisfying those particular needs. As a result, it provides a deeper understanding of how and why to reward or motivate employees.

Adams's theory is a valuable approach for large companies with numerous users who need to be motivated. By utilizing a substantial and comprehensive database of employees and their inputs (such as working time, punctuality, performance, etc.) and outputs (such as wages, recognition methods, etc.), one can compare workers effectively. Furthermore, it is possible to create and customize a specialized program for recording and analyzing data objectively, without any bias, to aid in decision-making regarding additional outputs for employees. In contrast, Alderfer's theory is more applicable to managerial positions or smaller companies, as it requires a deep understanding of individual employees and their unique circumstances.

The combination of these two theories could result in a theory where workers' activity is continuously observed and documented in order to compare it to their past performance and the performance of their colleagues. This would help determine the inputs based on Adams' theory. On the other hand, the outputs would be determined based on the requirements specified in Alderfer's theory. Another possible substitution for Alderfer's theory is Hertzberg's two-factor theory.

Although content theories and process theories have different foundations, they share the same goal. They can be combined or integrated to provide a more comprehensive and efficient explanation or maximize efficiency. However, it is important to note that while Alderfer's theory can complement Adams' theory, the key aspect of Adams' theory revolves around equality among workers and their inputs/outputs. This is because excessive outputs may lead to a feeling of being overpaid, causing stress for employees as they strive to increase their inputs to balance things out. "Alderfer's theory focuses on identifying which needs need satisfaction and how, while Adams' theory examines when and why needs should be satisfied." This statement effectively highlights the difference between these two theories and underscores the importance of both working together optimally.

REFERENCES

Books:

P. Kotler, V. Wong, J. Saunders, G. Armstrong, Principles of Marketing, (2005 4th European Edition) p. 8, published by Pearson Education Ltd, Harlow, England

R. Fincham and P. Rhodes authored the book Principles of Organizational Behaviour, which was published by Oxford University Press in 2005, with its fourth edition released in New York, United States.

Online:

Sanjeev Sharma believes that the best way to motivate an employee is to win their heart. According to Sharma, winning an employee's heart can be achieved through various strategies. These strategies are discussed in further detail in an article titled "A right way to motivate an employee" available at http://www.bpoindia.org/research/win-heart.shtml. Accessed on 24/11/05.

12manage.com ERG Theory (Alderfer) [online] url:http://www.12manage.com/methods_alderfer_erg_theory.html Accessed:24/11/05

Society for Industrial and Organizational Psychology inc. (SIOP), Justice lecture notes 4, [online]

The URL for accessing the lecture notes on justice is http://siop.org/Instruct/Justice/Justice%20Lecture%20Notes%204.doc. This link was accessed on 26th November 2005.