Intrinsic vs. Extrinsic Motivation
- As long managers can understand what drives employees, they can create better working environments, improve efficiency, and enhance job satisfaction.
- Several motivation theories help explain how businesses can encourage their workforce, all of which hinge on two main facets: intrinsic, and extrinsic motivation.
Definition
Intrinsic motivation
Intrinsic motivation comes from within, employees find satisfaction in the task itself (e.g., solving complex problems, learning new skills).
Definition
Extrinsic motivation
Extrinsic motivation comes from external rewards, such as salary, promotions, or bonuses.
Effective motivation strategies balance intrinsic and extrinsic motivators to maintain employee engagement.
Taylor’s Scientific Management: Efficiency Through Financial Incentives
- Frederick Winslow Taylor believed that money is the primary motivator for workers.
- His scientific management approach focused on efficiency, standardization, and financial incentives to boost productivity.
Key Principles of Taylor’s Theory
- Work Study: Taylor analyzed tasks using time-and-motion studies to identify the most efficient methods.
- Division of Labor: Tasks were broken down into small, repetitive actions, allowing workers to specialize.
- Piece-Rate Pay: Workers were paid based on output, incentivizing higher productivity.
- Close Supervision: Managers closely monitored workers to ensure adherence to standards.
Example
Henry Ford applied Taylor’s principles in his assembly lines, revolutionizing car production by reducing costs and increasing output.
Where It’s Commonly Used
- Manufacturing & Assembly Lines: Industries like automotive production apply Taylor’s methods to increase efficiency.
- Fast-Food Chains: Companies like McDonald's use standardized processes to ensure speed and consistency.
- Sales & Call Centers: Performance-based incentives reward high productivity.
Strengths and Limitations
- Strengths:
- Increased productivity and efficiency.
- Laid the foundation for modern management practices.
- Limitations:
- Overemphasis on financial incentives ignored social and psychological needs.
- Repetitive tasks led to worker dissatisfaction and strikes.
Hint
While Taylor’s methods may seem outdated, elements like performance-based pay are still used in industries like manufacturing and sales.
Maslow’s Hierarchy of Needs: A Human-Centered Approach
- Abraham Maslow introduced a more holistic view of motivation, focusing on human needs beyond just money.
- His hierarchy of needs suggests that employees have five levels of needs, progressing from basic survival to personal growth.
The Five Levels of Maslow’s Hierarchy
- Physiological Needs: Basic survival needs like food and shelter, met through fair wages.
- Security Needs: Job security and a safe working environment.
- Social Needs: Relationships and a sense of belonging, fostered by teamwork and social activities.
- Esteem Needs: Recognition and achievement, achieved through promotions and responsibility.
- Self-Actualization: Personal growth and fulfillment, supported by opportunities for creativity and innovation.
Example
A tech company might offer competitive salaries (physiological), job security (security), team-building events (social), promotions (esteem), and opportunities for innovation (self-actualization).
Where It’s Commonly Used
- Corporate Workplaces: Firms like Google & Apple provide competitive salaries (physiological), job security (safety), and career growth (esteem).
- Healthcare & Education: Employees seek fulfillment in service-oriented work.
- Startups & Entrepreneurship: Autonomy and creativity motivate founders and innovators.
Strengths and Limitations
- Strengths:
- Recognizes the diverse needs of employees.
- Encourages a personalized approach to motivation.
- Limitations:
- Assumes a linear progression through the hierarchy, which may not apply to everyone.
- Difficult to measure and apply universally.
Common Mistake
- A common mistake is assuming that once a need is fulfilled, it no longer motivates.
- In reality, higher-level needs like esteem may continue to motivate even after being partially satisfied.
Herzberg’s Motivation–Hygiene Theory: Two Sides of Job Satisfaction
- Frederick Herzberg distinguished between hygiene factors (which prevent dissatisfaction) and motivators (which actively drive satisfaction).
- He argued that these two sets of factors influence job satisfaction differently.
Herzberg’s Two Factors
- Hygiene Factors: Elements like salary, company policy, and working conditions. While they prevent dissatisfaction, they do not actively motivate.
- Motivators: Factors such as achievement, recognition, and personal growth, which drive true motivation and satisfaction.
Where It’s Commonly Used
- Tech & Creative Companies: Google & 3M focus on motivators like autonomy and career growth.
- Corporate Offices: Competitive pay (hygiene) prevents dissatisfaction, while promotions and leadership opportunities (motivators) drive engagement.
- Retail & Hospitality: Hygiene factors like fair pay are crucial, but recognition improves motivation.
Example
A company might offer competitive pay (hygiene factor) to prevent dissatisfaction, but it’s the opportunities for career advancement (motivator) that truly inspire employees to excel.
Strengths and Limitations
- Strengths:
- Highlights the importance of intrinsic motivators.
- Provides actionable insights for improving job satisfaction.
- Limitations:
- Overlooks cultural differences, pay may be a stronger motivator in some contexts.
- Based on a limited sample of professionals, which may not generalize to all workers.
Note
- Herzberg’s theory emphasizes that simply increasing pay won’t motivate employees long-term.
- Instead, focus on creating meaningful work experiences.
Applying Motivation Theories in Business
| Theory | Best For | Key Insight |
|---|---|---|
| Taylor (Scientific Management) | Manufacturing, sales, fast food | Efficiency through financial incentives |
| Maslow (Hierarchy of Needs) | Corporate, healthcare, startups | Employees need more than money to stay motivated |
| Herzberg (Two-Factor Theory) | Tech, corporate offices | Eliminating dissatisfaction isn’t enough, motivators are key |
Self review
Which of these theories do you think would be most effective in a creative industry like advertising? Why?
Exam technique
- Be sure to connect motivation theories to business strategy:
- Taylor → Best for roles that require productivity-based incentives.
- Maslow → Useful for designing HR policies that support employee well-being.
- Herzberg → Explains why salary alone doesn’t create engagement.
