How Useful Are Motivation Theories in Helping Managers Design Reward Policies and Practices. Discuss with Reference to Two Theories of Motivation.

"Motivation is a reason for doing something...It is concerned with the factors that influence people to behave in certain ways"- Michael Armstrong, 2001. Rewards can be either extrinsic (i.e. from the outside where they are delivered by other people or organizations in return for performance and achievements.), or intrinsic (i.e. internally, through 'psychic income'). Motivation theory is concerned with what determines goal-directed behaviour. Increasing motivation and raising levels of commitment and engagement are key organizational imperatives. The development of reward management policies and practices will be underpinned by assumptions of how people can best be motivated to deliver high levels of performance, discretionary effort and contribution.

There are numerous psychological theories of motivation. In practice, these tend to be based around one of three positions: the avoidance of discomfort and difficulties, the desire for benefits and rewards, the intrinsic need for human development. Motivational theories include Maslow's hierarchy of needs, Hertzberg's motivator-hygiene theory (or the two factor theory), the equity theory and Vroom's expectancy theory. Motivation theories are useful in helping managers design policies and practices because it helps sets a guide as to what really motivates employees so they can determine what the reward type should be (Is it money? job satisfaction? or both?). The focus here will be on two of the motivation theories mentioned earlier; Maslow's hierarchy of needs, and Vroom's expectancy theory.

Managers can design reward policies and practices by using Abraham Maslow's 'hierarchy of needs'. Also known as the Drive Reduction Theory, this is a form of Developmental or Content theory. It is represented by a 'pyramid' of needs, and assumes than man is basically a wanting animal seeking to satisfy needs both in social and working life. Motivation, in this scheme, is the satisfaction of needs. By using Maslow’s ideas, it...