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Background
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Defining the Research Topic
Various researches have been conducted in the field of motivation and its link to employee
performance and productivity. This was an area that had given interest to the author of this report
motivation theories within the current organisational settings”. The assignment reviewed already
published literature about main motivational theories and motivation reward theories. One of the
conclusions was that the theories need to be more practically applied to the author’s organisation, in
X has introduced an innovative staff benefits package called “Flex”, where the company’s employees
can pick and choose various benefit options to design their own package suitable for individual needs.
Examples of this include: buying or selling annual leave days, opting for one benefit instead of
another etc. This was a considered a great practical example of a motivational tool applied to the
organisation.
The aim of this research is to investigate the orgnisation’s benefits package ”Flex” as a motivational
“The extend of the effect of the staff benefit package on employee motivation in the current
organisational setting”
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Critical Review
Motivation Defined
In psychology, motivation refers to the initiation, direction, intensity and persistence of behaviour
(Hackman & Oldham, 2000). Argyris (1957) defines motivation as a concept used when forces acting
on or within an individual to initiate and direct behaviour are described. For the purpose of this
research, motivation means the desire and willingness to achieve personal and organisational goals.
Motivation Theories
The purpose of motivation theories is to help explain the “why” of human behaviour (Kanfer &
Ackerman, 1989). The objective of these theories is to create an environment for individuals and work
Extant research in social as well as consumer psychology has examined the mechanics of motivation
through a variety of lenses including rewards and incentives (Deci 1971; Kivetz 2005), drive
reduction theory (Hull 1951; Mowrer 1960) and hedonic versus utilitarian motives (Shiv and
Fedorikhin 1999; Dhar and Wertenbroch 2000; Kivetz and Simonson 2002). The basic concept of
motivation refers to internal factors that impel action and to external factors that can act as
inducements to action (Troetschel, 2001). The three aspects of action that motivation can affect are
direction (choice), intensity (effort), and duration (persistence). Motivation can not only affect the
acquisition of people’s skills and abilities but also how and to what extent they utilize their skills and
abilities (Kivetz, 2005). The level of motivation an individual and/or team applies can affect all
aspects of organizational results, Knowing this, it is in the manager’s best interest to understand the
reason for de-motivation in order to achieve project success through the creation and maintenance of a
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Maslow’s Five Needs
One of the first behavioral approaches to management was proposed by Maslow in 1943 (this was
preceded by the scientific management principles proposed by Taylor and Weber in the 19th century).
The objective of the behavioral approach was to identify the different factors that motivated people to
make them more productive. Maslow (1943) put forward the “Hierarchy of Needs Theory” which saw
human needs in the form of a hierarchy, ascending from lowest to the highest. He argued that needs
must be satisfied in priority order and stated that the lower level needs should be satisfied before the
higher level needs and once the lower level needs are satisfied, they no longer serve as a motivator.
• Physiological needs – Maslow defined these as the most basic needs important for
sustenance. The needs included basic needs such as food, water, warmth, shelter, sleep. It was
• Safety or Security needs – These were another set of basic needs which included freedom
from physical and emotional harm. These needs related to fear of losing a job, property,
• Social Needs – By social needs, Maslow pointed to the need for affection and belongingness.
Maslow’s belief was that the most basic need for a social acceptance needed to be satisfied
• Esteem – By esteem, Maslow referred to reputational needs of each individual. These needs
included internal esteem factors like self-respect, autonomy, achievements and external
esteem factors such as recognition and attention as well as personal sense of competence
• Self actualization – Once all of the above needs were satisfied, the need for growth and
success and to make the most of one’s abilities was required to motivate individuals. Maslow
referred to these needs as the need for self-fulfillment by achieving one’s potential to
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Herzberg’s Two-Factor Theory
Maslow’s motivation theory has been widely accepted within industry circles. His theory was
followed by Frederick Herzberg’s (1959, cited in Terpstra, 2005) Two-Factor theory. Herzberg and
colleagues (Herzberg, Mausner, & Snyderman, 1959) focused primarily on sources of work
satisfaction and, within that domain, mainly on ways in which the job could be designed to make the
work itself enriching and challenging. Herzberg believed that people needed to be given a good job
for them to do a good job. The basis of the theory was the difference between satisfaction and
dissatisfaction. Herzberg believed that the presence of “Hygiene Factors" (which included factors
such as, security, status, relationship with subordinates) did not lead to motivation; however their
absence lead to de-motivation. There are contrasting views on Herzberg’s theory. Proponents argue
that in the current competitive environment, the theory can be made to good use and has the potential
Vroom’s expectancy theory was that motivation was based on values and beliefs of individuals. Both
Vroom and Porter-Lawler examined motives through the perception of what a person’s belief are and
based on the belief that employee effort leads to performance and performance leads to rewards
(Vroom, 1964). The theory paid much emphasis on ‘reward’ and its association with motivation.
Porter-Lawler believed that individuals can be motivated if they believed there was a positive
correlation between the efforts they put in and their performance, and when that favourable
performance led to a reward (Ryan & Deci, 2000). Expectancy theory has been applauded within HR
circles but critics believe that it lays too much emphasis on extrinsic awards. Questions have also
been raised about the validity of the motivation equation as a product of expectancy, instrumentality
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and valence. Other researchers like Elton Mayo (through “Hawthorne Experiments”) believed
Theorists like Skinner stressed on the importance of external environment and its role in motivating
encourage motivation and stated that suitable work environment should be made suitable to the
individuals to keep them motivated (Bedeian, 2003). While Vroom and Porter-Lawler theory focused
more on behaviour choices, Skinner’s Reinforcement Theory focused on the consequences of those
choices (Terpstra, 2005). There are other motivational theories proposed by Adams (Theory of
While every theorist has their version of motivation, there is considerable overlap among these
theories. E.g. every theory, directly or indirectly, concentrates on the basic human needs first.
Maslow’s needs hierarchy demonstrates the importance of these needs in more detail. Herzberg’s Two
Factor Theory brings out the distinction between motivation and de-motivation and depicts the
difference between the two. Vroom and Porter-Lawler’s theory is more of a quantitative nature and
Conclusions
The results from the secondary research suggested that no one motivation theory can be categorically
said to be more effective than the other. Although Maslow’s theory is the most widely adapted, the
require different ways to motivate people. In environments where employees are involved in a
monotonous role like assembly line workers or contact centre employees, Herzberg’s two-factor
theory might be more effective than Vroom’s expectancy theory. Vroom stressed the importance of
reward in encouraging motivation but reward would seize to be a motivator for employees where the
job role remains static. Employees doing a monotonous role would get better motivation from job-
redesign and training. Herzberg’s theory of ‘if you want employees to do a good job, give them a
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good job to do’ is more applicable in such circumstances. Similarly, Skinner’s motivation theory
might be more appropriate in the current economic climate as motivation might be more related to the
external environment. With the economic and financial crisis and recession looming large on most
economies, motivation is more dependent on external circumstances rather than internal. McGregor’s
theory was found to be more effective under project management settings. A project manager using a
Theory X motivational approach will have to create an authoritative and controlling work
environment. The role assumed by project team members within a Theory X environment is to evade
added responsibility and do as minimal amount of work as possible to achieve the project goals
without punishment (Fishbach et al., 2005). On the other hand, Theory Y motivation naturally creates
a participative environment with strong manager-employee relations. Within the project manager role
of a Theory Y environment, the project manager will seek input and assistance from the project team
to obtain the best possible alternative for project implementation (Kerzner, 2003, pp. 194–195).
Motivation remains a challenge for organisations today and they need to evolve into more
sophisticated, customer responsive business units. The rapid pace of the changing competitive and
organisational landscape has meant that the solutions to motivation problems have become even more
complex. To keep employees motivated and for motivation to have a direct effect on performance,
organisations like X have to understand the process, theories, and fundamental components of
motivation. The need for belongingness was found to improve motivation and is better satisfied in a
company with a strong organisational culture, where people accept and support each other and form
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Methodology
The philosophy adopted for the purpose of this research is Interpretivisim using Phenomenology as
the study tries to assess the effectiveness of motivation theories and determine its practical use within
the X organisation. This would entail reliance on drawing inferences from the data collected,
therefore, the approach adopted for most of this study is Inductive and the data collected will mostly
Qualitative in nature.
Saunders et al (2006; pg 43) define qualitative data as: “non-numerical data, or data that have not
been quantified”. The quantitative technique, on the other hand, involves collecting and analysing the
numerical data by using statistical techniques (Gordon & Langmaid 2006; pg 71). Primary data is
collected in different forms. Some of the most common forms of primary data collections are
Before embarking on a definitive research methodology, the purpose was taken into consideration
separately and an analysis was done for each data collection approach against each objective. A
rationale was established behind each research method before going ahead. It was ensured that the
data collection methods were more or less interdependent so that each method filled the hole or
For the fulfillment of Objectives, interviews will be conducted to reveal different aspects of
motivation. The objectives of the interviews were to try gather organisational viewpoint and
perception.
For the purpose of this research, the researcher believed it is best to have some sort of structure to the
interview to guide the course of it. It was decided to have a pre-set list of questions before the start of
the interview. Saunders et al., (2007) point out that “the purpose of semi-structured interviewing is not
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to put things in someone’s mind...but to access the perspective of the person being interviewed”.
Questions were devised only after sufficient information was collected from secondary research.
Other data collection techniques were not considered because the objective of this study is to probe
the respondent to get closer to the findings. In-depth face-to-face interviews are going to give more
opportunities to probe the respondent than any other qualitative data collection methodology. Also,
the researcher knew people through her network; it will not be difficult to convince people to spare
some time for the interview. Focus groups will also be taken into consideration.
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Data Collection
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Appendix 1
Conceptual Framework
Flexible Benefits
Context
Characteristics
Employees
Context Motivation
Behaviour Effects on Motivation
Characteristics
Employers
Context
Behaviour
Characteristics
Results
Review
Consultation
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Appendix 2
Gantt Chart
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References and Bibliography
4. Beer, M. (2000) Lead organizational change by creating dissatisfaction and realigning the
8. Fishbach, Ayelet and Ravi Dhar (2005), “Goals as Excuses or Guides: The Liberating Effect
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9. Hackman, J.R. and Oldham, G.R. (1976) ‘Motivation Through the Design of Work: Test of a
10. Judge, T., Thoreson, C., Bono, J., & Patton, G. (2001) The job satisfaction-job performance
11. Kanfer, R., & Ackerman, P. L. (1989) Motivation and cognitive abilities: An
13. Kingston University (Annan-Diab, F. editor) (2008) Foundation Degree in Business and
Business School.
14. Kivetz, Ran (2005), “Promotion Reactance: The Role of Effort- Reward Congruity,” Journal
16. Maslow, A. H. (1943). A theory of human motivation. Psychological Review, July 1943. 370-
396.
17. Richer, S.F., Blanchard, C. and Vallerand, R.J. (2002) ‘A Motivational Model of Work
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18. Ryan, R. and Deci, E. (2000) ‘Self-determination Theory and the Facilitation of Intrinsic
19.Saunders, M., Lewis, P. and Thornhill, A. (2003) Reasearch Methods for Business Students
20. Terpstra, D. E. (2005). Theories of motivation: borrowing the best. Personnel Journal, 58.
376.
21. Troetschel, R. (2001) The automated will: Nonconscious activation and pursuit of behavioral
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