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A better Employee Motivation through the Application of Public Feedback Processes

Enhancing the Effectiveness of Job Appraisals

©2004 Diplomarbeit 92 Seiten

Zusammenfassung

Inhaltsangabe:Abstract:
The Diploma Thesis at hand considers the interdependence of employee motivation on the one and feedback and job appraisal processes in organisations on the other hand.
Basically, today’s job appraisal procedures have one major disadvantage. They rarely comprise more than a subjective assessment of employee performance. This assessment is normally carried out by an employee’s superior. In this thesis, it will be argued that through the dynamics of bias and politics in organisations, the validity of job appraisal information is significantly distorted. Hereby, the effectiveness of job appraisals is affected negatively since they cannot serve as a reliable basis for personnel decisions. But more important, the distorted information is likely to result in overseeing or ignoring an individual’s achievements in the workplace. Lack of appreciation of one’s effort and, additionally, the feeling of being treated inequitably compared to co-workers may erode an employee’s motivation. However, in a world of accelerating globalisation and thus increasing competition, a motivated workforce is the key to an organisation’s success.
The thesis will propose a potential solution for this dilemma - public feedback. This means that the information gained through job appraisals will not be discussed ‘one-on-one’, involving only superior and subordinate. Rather, the discussion is extended to the latter’s peers. The prerequisites for and the proceeding of this approach to employee evaluation will be provided. Also, the thesis covers the analysis of a survey. This was accomplished to test the acceptance of a public feedback process among a sample of white collar workers. The results show a general acceptance and appreciation of the idea of feedback in public.


Inhaltsverzeichnis:Table of Contents:
List of Charts and TablesIII
List of ChartsIII
List of TablesIII
AbbreviationsIV
1.Introduction1
1.1Choice of the Topic1
1.2Problem and Objectives2
1.3Methodology3
2.Employee Motivation5
2.1Definition5
2.1.1Origin of the Term5
2.1.2Motivation in the Field of Business Administration5
2.2The Need for Employee Motivation7
2.3Theories on the Content of Motivation10
2.3.1Motivation as a Hierarchy of Needs11
2.3.2Motivation as a Twofold Phenomenon13
2.3.3Money as a Motivator15
2.3.4Conclusions16
3.Feedback18
3.1Definition of Feedback18
3.1.1Origin of the Term18
3.1.2Feedback in the Field of Business Administration18
3.1.3Job […]

Leseprobe

Inhaltsverzeichnis


ID 8467
Worsch, Marek: A better Employee Motivation through the Application of Public Feedback
Processes - Enhancing the Effectiveness of Job Appraisals
Hamburg: Diplomica GmbH, 2004
Zugl.: Fachhochschule für Technik und Wirtschaft Berlin, Diplomarbeit, 2004
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Printed in Germany

I
Table of Contents
List of Charts and Tables ... III
List of Charts... III
List of Tables... III
Abbreviations ... IV
1 Introduction... 1
1.1
Choice of the Topic... 1
1.2
Problem and Objectives ... 2
1.3 Methodology ... 3
2 Employee
Motivation... 5
2.1 Definition ... 5
2.1.1
Origin of the Term ... 5
2.1.2
Motivation in the Field of Business Administration... 5
2.2
The Need for Employee Motivation ... 7
2.3
Theories on the Content of Motivation ... 10
2.3.1
Motivation as a Hierarchy of Needs... 11
2.3.2
Motivation as a Twofold Phenomenon ... 13
2.3.3
Money as a Motivator ... 15
2.3.4 Conclusions... 16
3 Feedback ... 18
3.1
Definition of Feedback... 18
3.1.1
Origin of the Term ... 18
3.1.2
Feedback in the Field of Business Administration ... 18
3.1.3
Job Appraisals as Information Basis for Feedback... 19
3.2
The Need for Feedback ... 21
3.3
The Need for Public Feedback... 26
3.3.1
The Significance of Equity ... 26
3.3.2
Sources for Inequity Resulting From Feedback and their Consequences.. 28
3.3.2.1 Distortion Due to Errors Out of the Appraisal Process ... 29
3.3.2.2 Distortion Due to the Person of the Assessor ... 30
3.3.2.2.1 The Affect of Appraisals by Bias ... 30
3.3.2.2.2 The Affect of Appraisals by Politics in Organisations... 32
3.3.2.3 The Consequences of Distorted Feedback ... 35
3.3.3 Implications... 37
3.4 Conclusions... 39
4
A Model for a Public Feedback Process ... 41
4.1
Similar Approaches in Practice... 41
4.1.1
Yellow Springs Instruments (YSI)... 41
4.1.2
National Health Service (NHS)... 42
4.1.3 Critical
Discussion ... 43
4.2
The Development of the Model ... 45
4.2.1 Basic
Prerequisites ... 45
4.2.2
The Job Appraisal ... 46
4.2.2.1 Superior-appraisal ... 47
4.2.2.2 Peer-appraisal ... 48
4.2.2.3 Self-appraisal ... 49
4.2.3
The Public Feedback Discussion ... 50
4.3
Acceptance of the Model in Practice ... 53

II
4.3.1
Conduction of the Survey and Basic Findings... 53
4.3.2
Analysis of Questionnaires ... 56
4.3.2.1 General Analysis ... 56
4.3.2.2 Analysis of Interrelations ... 58
4.3.3 Implications... 61
4.4 Summary ... 62
5 Résumé... 65
5.1 Final
Summary... 65
5.2 Final
Conclusions... 68
5.3
Critical Reflection and Outlook ... 69
Bibliography... 71
Books and Journals ... 71
Internet ... 74
APPENDIX... 75
Questionnaires... 76
German Version ... 76
English Version and Motivation of Questions... 79
Formulas... 84
Comprehensive Overview of the Results of the Survey ... 85

III
List of Charts and Tables
List of Charts
Chart 1 - Stakeholders of an Organisation and their Interests (own creation) ... 7
Chart 2 - Fields of Personal Interest... 8
Chart 3 - Maslow's Hierarchy of Needs ... 11
Chart 4 - Sources of Distortion in Job Appraisals (own creation) ... 36
Chart 5 - Comparison Age Structure German Workforce and Survey (own creation)... 55
Chart 6 - Comparison Sex Structure German Workforce and Survey (own creation)... 55
Chart 7 - Cross-classified Table Preference of Interview in Private and Perception of
Public Feedback Process (own creation)... 59
Chart 8 - Cross-classified Table Preference of Interview in Private and Sex of
Respondent (own creation) ... 59
Chart 9 - Cross-classified Table Preference of Interview in Private and Weight of
Superior-appraisal (own creation)... 60
Chart 10 - Cross-classified Table Perception of Public Feedback Process and Overall
Rating of the Model (own creation)... 60
Chart 11 - Cross-classified Table Adapted Perception of Public Feedback Process
and Overall Rating of the Model (own creation) ... 61
Chart 12 - Model for a Public Feedback Process (own creation) ... 62
Chart 13 - Example: The Calculation of Expected Frequencies of Parameter Values ... 84
Chart 14 - Comprehensive Overview of the Results of the Survey ... 85
List of Tables
Table 1 - Herzberg's Hygiene Factors and Motivators ... 14

IV
Abbreviations
e.g. - exempli gratia
et al - et alia
etc - et cetera
ibid - ibidem
i.e. - id est
ERG - Model - existence, relatedness, growth (after the model of C.P. Alderfer)
NHS - National Health Service
YSI - Yellow Springs Instruments

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1 Introduction
The purpose of this chapter is to lead the reader into the topic that is going to be
addressed by this Diploma Thesis. It provides the motive for the choice of the topic
and outlines its theoretical and practical relevance. Furthermore, a problem will be
formulated which is going to be solved in the course of the research process and the
reader will be provided with the key objectives of the thesis. Lastly, the subsequent
structure of the research process will be outlined in order to reinforce the thread of
thoughts.
1.1 Choice of the Topic
The field of employee motivation in the workplace is, of course, not a novelty in
management studies. Employee motivation can basically be described as the driving
forces for individuals' behaviour in a work context. The field either focuses on the
exploration of the content of employee motivation or seeks ways and processes that
more or less enable its direction. It is widely accepted to have inter alia an effect on
the quality of work, employee performance and work attendance. The currently poor
conditions especially in the German labour market seemingly downplay the
importance of employee motivation since it is reported that employees' fear of job
loss have resulted in the lowest absenteeism in the last ten years.
1
And yet, it is
unlikely that mere higher work attendance necessarily leads to high performance and
quality of work. However, in a world of ever faster globalisation and hence ever
growing competition, these two aspects eventually decide upon an organisation's
success or failure. Therefore, employee motivation continues to be a vital issue for
the management of an organisation. But from an organisation's standpoint,
motivation of employees is only sensible when high employee performance is the
actual result. If there was interdependence between an employee's motivation and his
performance, adjustments of one criterion would produce changes in the other.
Consequently, it is in the interest of an organisation to measure employee
performance. Furthermore, as employee motivation can be affected by other people's
recognition of an individual's achievement in the context of work, feedback
processes take an important role in motivating employees. Basically, feedback can be
described as informing a person about his performance in the work place. Thus,
1
found online at http://www.spiegel.de/wirtschaft/0,1518,301431,00.html on 3 September 2004

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feedback transmits the results of performance measurement to the respective
employee. This information on performance is usually obtained through so-called job
appraisals, a process where a person evaluates employee performance with respect to
predetermined work-related criteria. But what if these methods produced faulty
results? How would the feedback in turn affect employee motivation? Thus, the
choice has been made to explore the relationship between employee motivation and
feedback processes in more detail.
1.2 Problem and Objectives
As a starting point, it is assumed that feedback resulting from job appraisals is an
important determinant of employee motivation. If this is the case, the information
transmitted by feedback has to be perceived as accurate and truthful by the recipient
to accept it. As job appraisals produce the information underlying feedback, they can
be considered effective only when this information meets these quality requirements.
Whereas research has suggested increasingly sophisticated ways for gathering as
much and as broad a spread of information as possible in order to improve the
accuracy of feedback, the proceeding in practice has hardly changed, actually.
Basically, it is almost exclusively in superiors' scope of responsibility to assess their
subordinates' work performance. Superiors then transmit their assessment to the
respective employee through an interview in private. This proceeding entails that, as
the superior is a human being, such assessment is more or less subjective,
representing the superior's individual cognition of the respective subordinate's
performance. Even if superiors take in various sources, such as the opinion of the
subordinates' colleagues, their final and overall judgement remains subjective. This
subjectivity can evolve out of the superiors' individual perception that may bias their
assessment and let them unconsciously pick or overweight information that complies
with their opinion. It is also conceivable that subjective feedback is given on
purpose, for instance in cases in which superiors pursue a certain personal goal. Due
to the confidential character of the feedback and appraisal process, the inaccuracy of
information resulting thereof can hardly be detected.
Whatever the reason for inaccuracy may be, one thing is certain: if afflicted with it,
feedback cannot serve as an adequate acknowledgement of an employee's effort.
Thus, the validity of feedback is likely to be challenged by its recipients, especially
when it deviates negatively from their self-perception. Furthermore, it can be

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assumed that such feedback will negatively affect employee motivation due to the
perceived unfair treatment. The question might be posed as to whether the above
shortcomings of conventional feedback processes are significant. If yes, it should be
attempted to eliminate or at least mitigate potentially negative effects by changing
the way feedback is given and thus improve the effectiveness of job appraisals.
It is the major objective of this Diploma Thesis to seek a method for better employee
motivation by improving the process feedback is given. To succeed in this, the thesis
will have to meet the following minor objectives. Firstly, the thesis will have to
discuss what motivates individuals in an organisation. Secondly, a connection
between feedback and employee motivation has to be established by exploring the
interrelation between the two fields and underlining the importance of feedback for
employee motivation. Thirdly, it will have to be argued whether or not conventional
feedback processes have serious shortcomings that potentially outweigh the
inherently positive effects of feedback on employee motivation. As a fourth, on the
basis of the preceding exploration, the thesis will have to seek an approach for
improving feedback processes that eliminate or at least mitigate the negative effects
of conventional processes. And finally, by conducting empirical research, findings
will have to be substantiated by investigating the acceptance of the developed
feedback process in practice.
1.3 Methodology
In order to solve the problem stated above, the thesis will employ the following
methodology. Starting with a working definition of the key aspects of this research
process, each aspect will be discussed inductively with consideration of relevant
theories. The findings will be related to each other in order to emphasise a linkage
between the fields. Thereby, sources that potentially lead to adverse effects of the
inherently positive intention of feedback processes will be elicited. Thereupon, it is
finally attempted to develop a process that allows for a levelling or even an
elimination of negative consequences. It is intended to subsequently conduct
empirical research. There, it will be quantitatively surveyed by questionnaire how
employees assess the suggested model regarding its suitability, and whether or not
they would feel comfortable with such approach to feedback. The choice for
quantitative research has been made in order to exclude the possibility of interaction
between interviewer and interviewee since this potentially influences results.

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Moreover, a survey by questionnaire produces empirical data that can be processed
by computer relatively easily. The survey will be conducted in German in order to
avoid misunderstandings and distortion of results due to linguistic difficulties. The
questionnaire will contain semi-structured questions to ease analysis, and open
questions to obtain additional information and suggestions from participants that
could otherwise not be taken into consideration. Further information regarding the
survey can be found in chapter 4.3 or the appendix, respectively. Through analysis of
the survey's results, a conclusion will be drawn regarding the appropriateness of the
suggested model, i.e. whether it should be applied as suggested, applied with
changes, or abandoned.

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2 Employee Motivation
The chapter on employee motivation is intended to provide a working definition of
the term and to discuss the need for employee motivation at work. Furthermore,
relevant theories on the subject will be explored, with special consideration of those
referring to the content of motivation since these provide insight into the driving
forces behind certain behaviour. Finally, a comprehensive pattern of essential facili-
tators of employee motivation will be reached in the conclusion.
2.1 Definition
2.1.1 Origin of the Term
Initially, the term motivation derives from the Latin word motivus which stands for
impelling, moving and driving. The term motive is a collective term for many
colloquial expressions such as drive, urge, pursuit or intent. Drive and direction of
human behaviour are determined by motives. Thus, motivation comprises the set of
aspects that make an individual perform a certain action or pursue a certain goal.
2.1.2 Motivation in the Field of Business Administration
The issue of motivation has a long history in the field of basic and applied
psychology. Today, motivational issues are perceived by the majority as being tightly
connected to the challenge of leading organisational members in fulfilling an
organisation's goals. This is probably due to managerial issues offering abundant
possibilities for research, on the one hand, and an urge for the application of
scientifically funded methods in management, on the other hand. In the context of
work, motivation is considered and dealt with by theories, research, and practices
with implications for individual behaviour in the workplace. Hereby, the field
attempts to understand, explain, and predict the
Direction of action, i.e. which one of many goals an individual chooses to
pursue,
Intensity of action, i.e. how much effort an individual puts forth to
accomplish salient goals, and
Persistence of action, i.e. how long an individual perseveres toward goal
accomplishment particularly in the face of difficulties.

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A relatively common objective of the application of motivation theory in an
organisational context is the facilitating of employee behaviours which accomplish
organisational goals.
2
Similarly, according to Pinder, motivation is perceived as "[...]
the set of internal and external forces that initiate work-related behaviour and
determine its form, direction, intensity and duration."
3
As literature does not suggest
a unitary definition of the term, employee motivation will in the following be
understood as the stimulation and cause of work-related behaviour of employees by a
conglomerate of internal and external forces, which can be affected by both,
environmental forces and forces inherent in the person.
In this respect, employee motivation has to be distinguished from will. Recently,
research has focussed on the question what prerequisites it takes to make managers
pursue their goals unshakeably. It was found that managers who are totally
committed to meet their goals develop a strong urge for achievement in their
respective field. That will is seen responsible for triggering enormous mental powers
in an individual, and, along with a feeling of being strongly connected emotionally to
their goal, enables managers to pursue their objectives almost regardless of cost, also
costs on a personal level. In contrast to this, motivation is seen as not requiring such
high a level of personal involvement with work-related issues as it reacts rather
sensitively to changes. This means, for instance, that the interest in accomplishing a
task may motivate, but this interest can easily vanish. In addition, rewards only
motivate if alternatives are not more attractive.
4
This concept of will is not suitable for the purpose of this Diploma Thesis, as it,
firstly, focuses rather on the behaviour of managers than that of `normal' employees,
and, secondly, those findings suggest that it takes more effort from an organisation to
trigger will in each of its employees than it does to achieve motivation. A third, even
more important reason to abandon the concept of will in this context is that it can
also, once established, make people blind, unable to realise that any further pursuing
of objectives will obviously have no benefits, or will even result in failures.
5
Thus,
establishing will as the main driver of employee behaviour entails an immeasurable
potential of risk for a company, whereas comparably negative effects are not reported
for employee motivation.
2
The Blackwell Encyclopaedia of Management (Organizational Behaviour; 1998), page 175
3
Pinder, C.C. (1998), page 231
4
Bruch, H., and Ghoshal, S. (2004), page 74
5
ibid, page 77

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2.2 The Need for Employee Motivation
First of all, the question might be posed as to whether, and if yes, why employee
motivation is an issue management ought to focus on. Generally speaking, the
management of an organisation is responsible for achieving organisational goals,
which are highly dependent on the organisation's purpose. To succeed in this,
management has to consider a variety of interest groups, i.e. the organisation's
stakeholders, as are presented in the chart below.
Chart 1 - Stakeholders of an Organisation and their Interests (own creation)
The chart depicts the various stakeholders of an organisation and their stakes, i.e.
their interest in an organisation. These interests are to a certain degree linked and
interrelated with the respective organisation. For example, whereas a state requires
an organisation to comply with existing legislation and is, of course, at the same time
interested in stable revenues from taxes, the organisation relies on the state to
establish and maintain an entrepreneur-friendly environment. As well, whereas
investors often rely on the organisation to maximise their invested capital, the
organisation itself is dependent on their capital yet at the same time interested to
retain as large a portion of profits for business purposes as possible. Beyond these
conflicting priorities, an organisation also has to balance the sometimes fairly
contradictory interests of its stakeholders. For instance, unions in their role as
advocates of basic employee interests, e.g. employment, salary, and working
conditions, may demand higher salaries because of the company's increased
Organisation
Employees
(highly complex!)
Unions
Customers
(quality, service)
State
(rules & laws,
taxes)
Investors
(dividends, growth,
stability)
Organisation
Employees
(highly complex!)
Unions
Customers
(quality, service)
State
(rules & laws,
taxes)
Investors
(dividends, growth,
stability)

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profitability. Yet, higher costs for personnel contradict the investors' interest of profit
maximisation, thus might negatively affect their willingness to provide equity
capital. However, an `organisation' as such is merely a legal shell, as it takes people
to fill it with life in order to attain organisational goals. In consequence, the members
of an organisation, its employees, form a significant group of its stakeholders. Yet,
whereas most stakeholders' interests in the company can be seen as rather single-
faceted, employees' interests are far more versatile, thus difficult to balance. It would
be superficial to assume that today's employees' most important objectives are still
merely security of employment and sufficient salary, something which might have
been true for the bygone industrial era. Instead, it is common sense that employees
are people with complex needs and interests which must be satisfied or considered
for them to perform effectively in the workplace.
Chart 2 - Fields of Personal Interest
6
To illustrate this with the chart above, a person's interests can be conceived as being
threefold: one area is related to the person's organisational task, one to career and the
third to extramural interests, i.e. interests shaped by employees' personal life. First,
task interests are determined by the work performed, e.g. the planning and designing
of buildings by a civil engineer or the processing of tax declarations by a state
employee. Then, those aspirations and visions about their career employees bring
with them to the workplace build the basis for their career interests, which do not
necessarily have to be dependent on the job performed at that time. For example, the
vision of once becoming the manager of a team of five to ten people is not
6
Morgan, G. (1997), page 162

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necessarily achieved with the current employer, but with a new one. Finally,
employees' personal beliefs, values, preferences, attitudes, etc - their extramural
interests - influence their way of acting in relation to their task and career interests
within.
Now, with these three areas in mind, consider that an individual will attempt to keep
them in balance, to make progress in every area without neglecting the others. Yet,
due to the fact that these interest fields are usually negatively `correlated', it is likely
that the promotion of one interest leads to an impairment of one or both of the others.
An example: if employees seek more leisure and family time and subsequently
decrease their working hours in the company, prospects for a promotion or higher
salary are likely to deteriorate. But, if they are performing well in their job, they
might be offered a position with more responsibilities but also the need for spending
more time at work, thereby leaving the employees' need for enough leisure time
dissatisfied. Thus, these interests do normally not coincide with each other
completely, but only to a certain degree dependent on the respective situation and
employee. This explains why it is likely that employees' goals and interests are
heterogeneous and normally not conform to company goals.
7
This notion reinforces
the findings of several theorists, inter alia those of Dubin
8
, and Goldthorpe
9
, which
suggested that people by no means focus their interests on work but, on the contrary,
try to reduce their commitment at work as far as possible and satisfy their needs and
goals elsewhere.
10
Consequently, the problem of partial inclusion of employee interests within company
interests gains significance. Yet, for the success of an organisation it is important to
balance this partial inclusion, meaning that to a certain degree its members' interests
become aligned with organisational interests, or that the organisation facilitates
behaviours that accomplish organisational goals, respectively.
11
Addressing factors
that motivate people to pursue such goals mitigates the problem of partial inclusion
and therefore supports the process of making people adopt behaviours and attitudes
that facilitate organisational goal achievement. So, as considering the motivation of
7
Morgan, G. (1997), pages 161-164
8
advocated in "Industrial Workers' World: A Study of the `Central Life Interest' of Industrial
Workers" (1956)
9
advocated in "The Affluent Worker: Industrial Attitudes and Behavior" (1968)
10
Burrel, G., and Morgan, G. (1979), page 175
11
Blackwell Encyclopaedia of Management (Human Resource Management, 1998), page 9

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employees is not an end in itself but is a means of fostering other organisational
ends, a need for employee motivation can be stated.
2.3 Theories on the Content of Motivation
Initially, management studies considered employee motivation merely as a matter of
providing economic rewards.
12
It was assumed that money worked as the best
motivator, as it is a means through which other human needs can be fulfilled. This
view was probably shaped by the then prevalent trend to interpret phenomena in the
light of the principles of hedonism which assumes that people will seek pleasure and
avoid pain or inconvenience. Subsequently, the inconvenience experienced when
temporarily giving up pleasure-seeking had to be compensated in a sufficient way. In
consequence, motivating people hardly meant more than implementing systems of
wages linked to the performance of the respective worker, e.g. piecework. The ideas
of Frederick Winslow Taylor
13
, built upon those of Adam Smith
14
, fostered this
development, as they led to highly distinct, highly specialised jobs, executable even
by people with little or no education, and having a clearly determinable and
measurable output.
15
However, with the publication of the Hawthorne Studies
16
in
1941, the attention to the field of motivation increased. The idea occurred that
employee motivation was determined by more than one factor,
17
and an
understanding of motivation required an examination of the importance of people's
motives and social needs, an area on which research concentrated subsequently.
Rather problematic is that motivation is an invisible, internal, and hypothetical
construct. So, it can neither be seen nor measured directly, leaving practitioners to
rely on established theories to measure the observable manifestations of employee
motivation, i.e. behaviour and performance. In this respect, research on motivation
can be classified as focussing on what motivates people, i.e. the content of
motivation, or on how people can be motivated, i.e. the process of motivation. Both
areas are, of course, interrelated. Whereas process theories seek ways of influencing
12
Harris, M.C. (1997), page 161
13
advocated in "The Principles of Scientific Management" (1911)
14
advocated in "The Wealth of Nations" (1776), chapter 1 "Of the Division of Labour"
15
Shafritz, J.M., and Ott, J.S. (2000), pages 29-32
16
Roethlisberger, F.J., studies at the Hawthorne Works of the Western Electric Company (1924-32),
Chicago, Illinois
17
Basically, the studies intended to research the impact of light intensity in a factory on workers'
productivity. They revealed that regardless of the light intensity, productivity increased in almost
every test group, due to the researchers' attention paid to the respective workers and their work.
Roethlisberger, F.J. (1941), pages 158-166

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employee motivation, content theories rather provide insight into the driving forces
of employee motivation. As it is this thesis's objective to explore what affects
employee motivation, it first has to be discussed what constitutes motivation in the
workplace. Therefore, the subsequent discussion will concentrate on content theories.
2.3.1 Motivation as a Hierarchy of Needs
"All discussions of motivation start with Abraham Maslow"
18
One of the first who were concerned about motivation's content was Abraham
Maslow. He outlined the complexity of the issue as he stated: "Typically an act has
more than one motivation."
19
Following Maslow, any motivated behaviour is a
means for satisfying more or less basic human needs. He stressed that none of these
needs can be isolated as each is related to the satisfaction or dissatisfaction of the
others. Maslow concluded that a classification of motivations should be based upon
goals to be achieved rather than on instigating drives or motivated behaviour, as the
latter could not take into account the specific situations an individual is acting in.
Therefore, he built up the following categories of needs: physiological needs, safety
needs, belonging (or love) needs, esteem needs and self-actualization, which can be
perceived as the sets of goals an individual tries to achieve. Then, he took the
respective individual situation into consideration by ranking these needs as shown in
the chart below.
Chart 3 - Maslow's Hierarchy of Needs
18
Shafritz, J.M., and Ott, J.S. (2000), page 147
19
Maslow, A. (1943), page 167
Physiological Needs
Belonging Needs
Safety Needs
Esteem Needs
Self-actualization
Lower-level Needs
Higher-level Needs
Physiological Needs
Belonging Needs
Safety Needs
Physiological Needs
Belonging Needs
Safety Needs
Esteem Needs
Self-actualization
Esteem Needs
Self-actualization
Lower-level Needs
Higher-level Needs

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Employing this hierarchy, Maslow differentiated between lower- and higher-level
needs. He argued that an individual seeks satisfaction of the so-called higher-level
needs only if lower-level needs are relatively well gratified. `Relatively well' in that
sense means that the respective need does not necessarily have to be completely
satisfied, yet the degree of satisfaction of lower-level needs is higher than that of
higher-level needs.
20
That means, for instance, that a hungry and thirsty person is
above all interested in obtaining food and water, yet has rather little interest in his
safety, e.g. social security through a pension plan. Attention to other needs rises
again when physiological ones have been taken care of, i.e. by eating and drinking.
The example might sound plain but it shows why the very same person can act
differently depending on his current situation. So, only the sufficient satisfaction of
the most urgent needs leads to the emergence of the subsequent, higher needs.
Following Maslow's hierarchy, such upper-rank human needs are esteem and self-
actualization. These needs can be deemed of special significance, as at least in
today's so-called Western World, lower needs can be perceived as being fairly
satisfied for the majority of people, hence they do not work as motivators.
21
Esteem needs comprise man's desire for a stable and high evaluation of himself, be it
through self-esteem or esteem of others. Especially the latter is of importance, being
expressed through individuals' reputation, prestige, recognition and appreciation by
others, e.g. for the ability of adapting fast to changing circumstances. Satisfaction of
these needs leads to feelings of self-confidence, worth, strength, capability, in short -
being of use and necessary in the world. On the contrary, their dissatisfaction may
result in feelings of inferiority, uselessness and helplessness.
Self-actualization is on top of the hierarchy, comprising the need for the utmost self-
fulfilment of an individual, to become everything that a person is capable of
becoming potentially. Due to the specificity of this need, the form it can take will
vary extremely from individual to individual, thus making it even harder to affect or
be satisfied.
22
Self-actualization and esteem needs work as far better motivators as
they, unlike lower-level needs, are an ongoing object of interest for man, once they
have become important to him.
23
20
Maslow, A. (1943), page 176
21
McGregor, D.M. (1957), page 181
22
Maslow, A. (1943), page 171
23
McGregor, D.M. (1957), page 181

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Subsequent research basing on Maslow's ideas found his five-layered classification
of motives partly problematic as in practice, those needs could not be differentiated
thoroughly enough. For this reason, Alderfer modified the hierarchy and reduced the
number of layers to three. These are the existence-layer, comprising man's basic
needs like hunger, thirst and safety, the relatedness-layer, standing for people's social
needs like love, affection and esteem, and the growth-layer, representing
advancement needs like achievement. This modification Alderfer named
ERG-model, after the initial letters of the layers existence, relatedness and growth.
Though the number of categories had been reduced, the basic idea of motives
standing in a hierarchical order remained - existence needs being of lowest and
growth needs being of highest motivation for man.
24
To sum up, the need for money as such is not the most important driving force for
man. Rather, there are various categories of human needs that can be ranked by their
importance for an individual. Especially needs like esteem, advancement and self-
actualization, sets of goals which are fairly independent of pecuniary aspects, serve
as higher-level motivators. The reason for this can be seen in today's circumstances
under which lower-level needs are relatively satisfied for most of the people, giving
way for higher-level needs which are continuously sought by man. Money as such is
merely a means of fulfilling the above needs - a mechanism that will be referred to at
a later stage. However, this approach explains motivation on a rather abstract level
and cannot be applied to almost any circumstances. In this respect, hierarchies do not
contribute to unearthing people's motivation specifically in a work environment.
2.3.2 Motivation as a Twofold Phenomenon
A stronger consideration of job-related motivation was achieved by the studies of
Fredrick Herzberg. They were based on a survey among 200 engineers and
accountants in the Pittsburgh industry, who were asked about incidents at work
which had either resulted in an improvement in their job-satisfaction or led to a
marked reduction in it. The assumption underlying this survey was that factors that
lead to job-satisfaction are welcomed by employees, thus provide a motivation.
Herzberg's findings revealed that employee motivation is differently affected by two
distinct sets of factors. One set consists of factors that are rather involved in job
dissatisfaction. All of these factors describe the situation or environment in which an
24
Gebert, D., and Rosenstiel, L. (1996), page 43

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individual performs his tasks. While the provision of such factors has, if ever, only a
slightly positive effect on job satisfaction, their absence or impairment results in
significantly lower job satisfaction. For example, poor conditions in the workplace
result in lower job satisfaction, yet improving those conditions starting from an
appropriate level does not or only shortly increase job satisfaction. Herzberg thus
concluded that satisfaction of these factors, which he termed hygiene factors, serves
to avoid unpleasantness and is necessary to prevent the disturbance of employee
motivation. They are extrinsic to the individual and cannot be influenced by it.
On the contrary, the other set relates to what an individual employee does and
exemplifies significant determiners of job satisfaction. They are intrinsic to the
individual and symbolise man's need for growth. So to speak, they work like internal
generators yielding motivation. An increase of these factors, e.g. interest in the task,
regularly leads to an increase of employees' job satisfaction. As they thus form the
essentials of employee motivation, Herzberg named them motivators.
Both hygiene factors and motivators are presented comprehensively in the table
below.
Hygiene Factors (extrinsic)
Motivators (intrinsic)
Company policy administration
Achievement
Supervision
Recognition for achievement
Working conditions
Interest in the task
Interpersonal relation
Responsibility for enlarged task
Salary
Growth and advancement to higher
level tasks
Table 1 - Herzberg's Hygiene Factors and Motivators
Contrary to Maslow, where a need can either be satisfied or not, Herzberg's
continuum of satisfaction is twofold. Whereas hygiene factors determine whether an
employee is dissatisfied or not dissatisfied, motivators determine whether he is
satisfied or not satisfied.
25
To exaggerate the case: following Herzberg, employee
motivation still can be improved by providing motivators once hygiene factors are
present at the lowest level, which means that an individual is not dissatisfied.
25
Gebert, D., and Rosenstiel, L. (1996), page 45

Details

Seiten
Erscheinungsform
Originalausgabe
Jahr
2004
ISBN (eBook)
9783832484675
ISBN (Paperback)
9783838684673
DOI
10.3239/9783832484675
Dateigröße
1 MB
Sprache
Englisch
Institution / Hochschule
Hochschule für Technik und Wirtschaft Berlin – Wirtschaftswissenschaften I - Fachbereich 3, Betriebswirtschaft
Erscheinungsdatum
2004 (Dezember)
Note
1,3
Schlagworte
equity theory bias politics team cohensivness
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