Chapter 1-7: Employee Motivation Theories

Flashcards covering key vocational terms and definitions related to employee motivation theories, Maslow's hierarchy, McGregor's X and Y theories, Herzberg's two-factor theory, job characteristics model, equity theory, total quality management, and employee stock option plans.

Motivation

The willingness to do something to satisfy a need; formally, the processes that account for your intensity, direction, and persistence of effort towards attaining a goal.

Maslow's Hierarchy of Needs

A psychological theory proposed by Abraham Maslow in 1943, suggesting that unsatisfied needs motivate people, and satisfied needs do not. It proposes a pyramid of human needs.

Physiological Needs (Maslow)

The most basic level in Maslow's hierarchy, including universal human needs such as water, oxygen, shelter, food, and warmth.

Safety and Security Needs (Maslow)

The second level in Maslow's hierarchy, focusing on personal and financial security, health, and well-being.

Loving and Belonging Needs (Maslow)

The third level in Maslow's hierarchy, involving social connections, friendship, intimacy, and family bonds.

Self-Esteem Needs (Maslow)

The fourth level in Maslow's hierarchy, related to personal worth, achievement, recognition, and respect from others.

Self-Actualization (Maslow)

The highest level in Maslow's hierarchy, representing the realization of one's full potential, or 'being all that you can be'.

Douglas McGregor

A professor at the MIT Sloan School of Management known for proposing Theory X and Theory Y, which describe managers' perceptions of their employees.

Theory X and Theory Y

Douglas McGregor's theories suggesting that managers' perceptions of their employees' attitudes toward work significantly impact employee motivation and management style.

Pygmalion in Management

An article discussing how managers' expectations influence employee performance; high managerial expectations tend to lead to high employee performance due to supportive behavior and self-fulfilling prophecy.

Theory X Worker (Manager's Perception)

A manager's perception that employees are inherently lazy, dislike work, avoid responsibility, seek formal direction, desire job security, have little ambition, and are motivated by fear and punishment.

Theory Y Worker (Manager's Perception)

A manager's perception that employees are self-motivated, ambitious, view work as natural and desirable, can exercise self-control, seek responsibility, and make innovative decisions, motivated by rewards.

Herzberg's Two-Factor Theory

(Also Motivation-Hygiene Theory) A theory stating that an employee's attitude directly influences their success or failure, distinguishing between motivating factors and hygiene factors as separate influences on satisfaction and motivation.

Motivating Factors (Herzberg)

Intrinsic elements of work that lead employees to be satisfied and truly motivated, such as opportunities for promotion, personal/professional growth, recognition, responsibility, and achievement.

Hygiene Factors (Herzberg)

Extrinsic elements of work that can lead to dissatisfaction and demotivation if absent or inadequate, but do not necessarily motivate employees if present (e.g., quality supervision, pay, company policies, physical working conditions, relationships, job security).

Job Characteristic Model of Motivation

A model identifying five core job characteristics: skill variety, task identity, task significance, autonomy, and feedback, which lead to critical psychological states and improved work outcomes for employees.

Skill Variety (Job Characteristic)

A job characteristic involving the utilization of many different skills on the job.

Task Identity (Job Characteristic)

A job characteristic referring to the involvement in the completion of an entire project or work unit, from beginning to end, rather than just small parts.

Task Significance (Job Characteristic)

A job characteristic where the work performed has a substantial impact on the lives or work of other people, whether inside or outside the organization.

Autonomy (Job Characteristic)

A job characteristic that provides the freedom and discretion to figure out how to get the work done, allowing for independence in scheduling and procedures.

Feedback (Job Characteristic)

A job characteristic involving obtaining direct, clear information about the effectiveness of one's performance, allowing for continuous improvement.

Equity Theory

A theory stating that employees are looking for fairness, comparing their job inputs (effort) and outcomes (rewards) to those of others, and adjusting behavior if perceived inequality exists.

Total Quality Management (TQM)

A management philosophy, popularized by Edward Deming, focused on building quality into all processes of an organization from the beginning to ensure high-quality products or services.

Theory Z Level of Motivation (Deming)

A concept, attributed to Edward Deming's work on TQM, emphasizing treating employees like royalty to achieve high productivity, longevity, morale, job satisfaction, and ultimately better organizational performance.

Employee Recognition

A powerful motivational tool involving formally acknowledging and rewarding employees for good performance or going above and beyond expectations, with the aim of repeating desired behaviors.

Employee Stock Option Plans (ESOPs)

Benefit plans provided by companies that allow employees to purchase company stock, designed to encourage employees to act like owners, increasing job satisfaction, motivation, and wealth accumulation.

Option (in ESOPs)

The right, but not the obligation, to purchase a company's stock at a fixed price (the option price) over a predefined period of time.

Vesting Period (in ESOPs)

A specified period over which an employee gradually gains full ownership or the right to exercise their stock options, designed to promote employee longevity and retention.

Trigger (in ESOPs)

The specific event or condition that makes an employee eligible to participate in the employee stock option plan, often tied to a period of employment or performance.

Option Price (in ESOPs)

The predetermined fixed price at which an employee can purchase shares through an employee stock option plan; often based on the share price at the time the option was granted.

Price-Earnings (PE) Ratio

A valuation ratio that compares a company's current share price to its per-share earnings, used here to illustrate how additional net income can significantly increase stock value.