Types of Motivational Theories of Management

Employee motivation is an integral part of organization’s success. As such, managers of all types of organizations, big or small, should motivate their employees to perform better and evolve both individually and professionally.

theories of management

There are multiple theories that explain how employees are motivated in an organization. Once you understand which theory best fits your workers, it might help you boost employee retention rates and improve worker productivity, which ultimately will improve your small business.

Have a look at the three popular theories of management:

Maslow’s Hierarchy of Needs

This theory was given by Abraham Harold Maslow that revolved around motivation based on various sets of needs like safety, physiological, self-actualization, and social- esteem. The theory also emphasizes on higher lever and lower needs. It states that no individual can satisfy their higher-level needs (esteem and self-actualization) until they satisfy their lower-level needs (physiological, safety and social). To fulfill employees’ self-actualization needs, the manager might need to develop the potential of their employee and reward a promotion on meeting performance requirements.

Equity Theory

Stacy Adams’ equity theory explains that employees are motivated and adjust their performance by fairness. If an employee, for instance, believes that he will be rewarded less than his co-workers for the same amount of effort, he is likely to perform less. The theory is based on employee equity – the higher the individual’s perception of equity, the more motivated they will be and vice versa. Managers can apply this theory to motivate employees by paying them equal for same amount of work.

Herzberg’s Two-Factor Theory

Also known as the x and y theory, this Frederick Irving Herzberg’s theory consists of two separate categories. The first category lists certain hygiene factors creating high levels of dissatisfaction if they are lacking. Examples of these factors are pay, working conditions, job stability, status or title, benefits, and organizational culture. However, if these factors are positive, they create a state of neutrality. Motivational factors of Herzberg theory include achievement, personal growth, recognition, and personal investment. The theory states that these factors can stimulate employees’ performance at a higher level.

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