Total Rewards Philosophy (Core Types of Motivation)

Question 1

Maslow’s Hierarchy of Needs

Answer 1

1. physiological needs
2. safety and security
3. loving and belonging
4. self esteem
5. self actualization

Question 2

Herzberg’s Hygiene Theory

Answer 2

2 distinct categories
1. extrinsic
2. intrinsic

Question 3

ERG

Answer 3

3 Needs for Motivation

1. Existence,
2. Relatedness
3. Growth

Question 4

McClelland’s Theory

Answer 4

What Drives People

1. achievement
2. affiliation
3. power

Question 5

Adam’s Equity Theory

Answer 5

Adam’s Equity Theory
states that the level of reward an individual receives, compared to their own sense of contribution and those of their co-workers, influences their performance. This happens when one worker evaluates their skills, knowledge, and abilities with their compensation and then also compares their feelings of how they compare to others in their same position or with similar tasks and how those individuals are paid. This is then evaluated, all by the opinions and thoughts of the employee, against how fairly the employee feels they compare to others.

Internal: An employee compares their pay to others within the organization
External: An employee compares their pay to similar jobs outside the organization
Individual: An employee compares their pay to another person doing the same job within the same organization

Question 6

Goal-Setting Theory

Answer 6

Management by Objectives. Mutual Goals are set for the employee and company.

Question 7

Vroom’s Expectancy Theory

Answer 7

________ Theory states that the employee’s expectations of their tasks and related compensation determine their effort and their level of performance in completing those tasks.

Question 8

Reward or Reinforcement Theory

Answer 8

These theories are sometimes called ____ theories because they are intended to reinforce or sometimes discourage behaviors.

Question 9

Reactance Theory

Answer 9

Psychological theory that describes how individuals respond when they perceive that their freedom or autonomy is being threatened or restricted.

Psychological Reactance: Reactance is an emotional state that arises when individuals believe their freedom of choice or behavior is being limited or eliminated. It can lead to feelings of frustration, anger, and resistance.
Motivation to Restore Freedom: When individuals experience reactance, they are motivated to restore the freedom they perceive they have lost. This motivation can manifest in various ways, such as defiance, disobedience, or engaging in the prohibited behavior.
Magnitude of Reactance: The intensity of reactance is influenced by the importance of the threatened freedom and the perceived credibility of the source attempting to restrict it. Reactance is more likely to occur when the threatened freedom is significant and the perceived authority is seen as unjust or controlling.
Boomerang Effect: Reactance theory suggests that attempts to persuade or control people too forcefully can lead to a boomerang effect, where individuals become even more resistant and engage in the forbidden behavior with greater determination.

Question 10

Process Cognitive Theory

Answer 10

This theory helps organizations design, communicate, and adapt total rewards programs in ways that resonate with employees’ level of understanding and behavioral tendencies. By understanding how individuals perceive, process, and respond to reward information, organizations can enhance the effectiveness and impact of their total rewards strategies. The theory has five (5) major pieces that involve various aspects of the employees’ perception.
1. Perception of reward
2. Cognitive Information Processing
3. Cognitive Biases
4. Cognitive Dissonance
5. Feedback and Adaptation