Importance of Herzberg’s Two Factor Theory and Equity Theory to an Organization.

I think these two motivation theories are very important to the organization. Motivation is a process in which people choose alternative forms of behavior to achieve personal goals. We can study different theories of motivation. It can categorize two major types.

Content Theory of Motivation:

Content theories try to identify what our needs are and related motivation to the fulfilling of these needs. We can identify the following theories including content theories of motivation.

  1. Maslow’s Hierarchy of Needs Theories
  2. Herzberg’s Two Factor Theory
  3. Alderfer’s Modified Needs Hierarchy Theory
  4. X Y Theory

Process Theory of Motivation:

Process theories try to identify the relationship among the dynamic variables, which make up motivation. We can identify the following theories including process theories of motivation.

  1. Expectancy Theory
  2. Equity Theory
  3. Goal Theory
  4. Attribution Theory
Now let's look at Herzberg's Two Factor Theory and Equity Theory.

Herzberg’s Two Factor Theory

Herzberg identified that there were two different sets of factors affecting motivation and work. These factors are hygiene factors and motivators.

Hygiene factors will cause dissatisfaction. It is concerned with the job environment and extrinsic to the job itself. Herzberg identified hygiene factors pay, working conditions, company policy, status, work environment, interpersonal relations etc. These factors are called hygiene or maintenance factors.

Motivator factors serve to motivate an individual to superior effort and a high level of performance. These factors are related to the job content of the work itself. Motivator factors identified factors such as recognition, achievement, responsibility, work position and advancement. These factors are called motivators and growth factors.

In countries with great power distance, "supervision" should not be seen as a hygiene factor, because in these cultures the dependence on stronger individuals is an important need which can be an important motivator. In countries with intense uncertainty avoidance aspects related to the "rule and management of the organization" should not be viewed merely as hygiene factors, because of the motivating potential this aspect may have in those cultures.


Equity theory

Equity theory focuses on people's feelings as to how fairly they have been treated when compared with the treatment received by others in similar positions. This is represented as follows.

Both the inputs and outputs of an individual and another are based on the individual's perception. Examples of perceived variables are age, gender, education, social status, organizational status, qualifications, and how hard a person works. Outcomes primarily consist of rewards such as pay, status, promotions, and intrinsic interest in the job.

When the ratio of a person's total outcomes to total inputs equals the perceived ratio of relevant other person's total outcomes to total inputs, there is equity. Equity theory is embraced in the United States, but in the former socialist countries of Central and Eastern Europe, workers expect their rewards to reflect their interests as well as their performance. This is why US wage practices are considered unfair in these countries. For example,

  • Power Distance: An index that describes the extent to which less powerful people in organizations accept and expect that power is distributed unequally. A higher index number suggests that hierarchy is established and executed in society, while a lower index would indicate that people question authority in that culture.
  • Individualism: This measures the degree to which people in a society are integrated into groups. The United States scores very high in this category.
  • Long-term Orientation vs. Short-term Orientation: This measures the degree to which a society honors tradition. A lower score indicates traditions are kept, while a higher score indicates that society views adaptation and problem-solving as a necessary component of their culture. Asian cultures have a strong long-term orientation, while Anglo countries, Africa and Latin America have a shorter-term orientation.

The Business Life

I am Graduated from the Open University of Sri Lanka with a Bachelor of Management Studies Special in Marketing Degree. I Completed SLIM PCM Course and OUSL Management Diploma. My main objective is to share my experience with you about management, economics, and marketing other related factors.

Post a Comment

Previous Post Next Post