CHAPTER 2
LITERATURE REVIEW
2.1 Theoretical Foundation
This literature review chapter would provide the theories that are cohesive and
relevant as a fundamental of the research. Additionally, Theoretical frameworks, and
definition of the terms used in this research are provided along with explanation of
variable. Lastly, previous research studies regarding the workplace motivational
factors and gen Y are presented in this chapter.
2.1.1 Generation defined
Generational cohort is defined as a group of individual who share the same
experience for both socially and historically in the collective generational framework
(Howe & Strauss, 1991).Furthermore, generation is a cohort of individual who had
been through the same event, situation, culture which shared a function providing
them with communal memory (Eyerman & Turner, 1998). Each particular generation
is associated with shared beliefs, values, morale, and perceptions that differ from
other generations. Multiple of generations have played a role in workplace including
traditionalist, baby boomers, generation X, and generation Y. Each generational
cohort enters and works on their-own styles and beliefs. Each of cohorts is then
explained and provided theoretical explanation.
16
17
Traditionalists
Traditionalists are practically the parents of baby boomer cohort and most of
traditionalist lived in Korean War (Hatkevich, 2008) and they were born between
1922-1943 (Zemke et al., 2000). Furthermore, Hatkevich (2008) added that the
society norms and value they practiced were solid and strong traditional perspective
about country, God, and family. (Unsworth, 2008) She explained the characteristic of
traditionalist were hardworking, conservative, loyal, dutiful, and authority. This
cohort also had been stereotyped as risk averse, old-fashioned, and autocratic
(Unsworth, 2008). Another opinion about traditionalist stated on book entitled
Generations at work: Managing the clash of veterans, boomers, Xers, and nexters in
your workplace breaking down that traditionalist’ generational personality into eight
charateristics as a follow, that tradionalists like:

consitency and uniformity,

thing on grade scale,

conformers,

believe in logic, not magic,

disciplined,

past oriented and history absorbed,

believed in law and order, and

consevative spending style (Zemke et al., 2000).
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Baby Boomers
Baby boomer cohort is the next generation after traditionalist. Term boomer was
given for those who were born in year 1943-1960 (Zemke et al., 2000) or in the
range of age 55 youngest – 72 oldest (as per year 2015). Assuming Indonesia
retirement age is 58 years old (Viqran & Ani, Indonesia extends retirement age,
2014), most of them must have resigned from the company and enjoyed retirement
age. The baby boomer characteristics are youthful self-identity, competitive, team
player, and optimistic (Unsworth, 2008). The core values possessed by this cohort
are team orientation, involvement, youth, optimistic, health and wellness, work,
personal gratification, and personal growth as mention by Zemke et al. (2000).
Generation X
Gen X is addressed for those who were born between 1960 and 1980 (Zemke et
al., 2000). All of them are still working ranging age between 35 years old (youngest)
and 55 years old (oldest), assuming Indonesian retirement age in 2014 are 58 (Viqran
& Ani, Indonesia extends retirement age, 2014). The core values of this generation X
are fun, diversity, balance, informality, self-reliance, thinking globally, pragmatism,
and techno literacy (Zemke et al., 2000). Unsworth (2008) defined the charaterisc of
generation X as balanced (work/life), pragmatic, and self-reliant.
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Generation Y
Born between 1980 and 2000 continues entering the workplace nowdays. They
are confidence, sociability, civic duty, street smarts, optimism, diversity,
achievement, and morality (Zemke et al., 2000).
Unsworth (2008) defined the
characteristics of this cohort as multitasking, techology savvy, and fun-seeking. The
most popular career choices form computer related fields, business, education and
teaching, law, medicine, and psychology (Zemke et al., 2000). Zemke, Raines, &
Filipczak furhter explained that they are more than happy to work side by side with
someone who is committed coworker.
In short, each generational has its own assets and liabilities for company
displayed on Table 2.1. It provides snapshot of generational differences in workplace
that should be handled and recognized properly by management. Furthermore, each
cohort has another title shown on Table 2.2 which some of them are widely used.
Table 2. 1 Assets and liabilities differences among generations in the workplace
On the job
Traditionalist
Assets
Liabilities
Thorough
Reluctant to buck the system
Stable
Uncomfortable with conflict
Loyal
Inept with ambiguity and
Hard working
changes
Detailed oriented
Reticent when they disagree
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Table 2.1 Assets and liabilities differences among generations in the workplace – continued
On the job
Baby Boomers
Assets
Liabilities
Driven
Uncomfortable with conflict
Want to please
May put process ahead of result
Good team players
Not naturally “budget minded”
Good at relationship
Reluctant to go against peers
Service oriented
Self-centered
Willing to “go extra mile”
Overly sensitive to feedback
Judgmental of those who see
things differently
Generation X
Generation Y
Adaptable Independent
Poor people skills
Creative
Inexperienced
Techno literate
Cynical
Intimidated by authority
Impatient
Collective action
Inexperience, particularly with
Heroic spirit
handling difficult people issues
Technology savvy
Need for supervision and
Optimism
structure
Multitasking capabilities
Tenacity
Source: Zemke et al. (2000)
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Table 2. 2 List of title given or popular name of each cohorts and birth years
Generation
Another title given
The Veteran
Traditionalists, GIs Mature, WW II Generation, The Silent
1922–1943
Generation, Seniors
The Baby
Boomers
Boomers
1943–1960
Generation Xer
Xers, Twenty-somethings, Thirteener, Baby Busters, Post-
1960–1980
Boomers
The Nexters
Millennials, Generation Y, Generation 2001, Nintendo
1980–2000
Generation, Generation Net, Echo Boomers, Internet Generation
Source: Zemke et al. (2000)
2.1.2
Motivation
“Motivation is forces acting on an employee that initiate and direct behavior.”
Gibson, Ivancevich, Jr, & Konopaske (2012, p. 126).
Human motivation is indicated by the understanding and knowledge of
potential and expected outcomes and the knowledge of fundamental relationship
among related environmental components (Mayes, 1978). Likewise, research on
individual and group motivation at work (Ellemers, Gilder, & Haslam, 2004, p. 472)
concluded that individual needs and goals are the principal source of motivation
contributing to an independent individual. The concept of motivation is basically a
driver or eager that pushes someone to do more in order to gain more or do it more
intense. Fundamental motive in understanding of motivation is to contribute a
significant impact and excellent performance because of high level of motivation
(Gibson, Ivancevich, Jr, & Konopaske, 2012, p. 127).
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Motivation process is explained by Gibson et al. (2012) showed in Figure 2.1.
Every person is motivated to particulate set of goals. Goals come from need
deficiencies. Need is a “deficiency that individual experience at a particular point in
time” (Gibson et al., 2012, p. 127). Furthermore, they described the motivational
process model with need of promotion for employee in organization. The need of
promotion to get new position is an initial trigger known as need deficiencies. After
the employees know and recognize the needs, they look for the ways in order to
satisfy their needs. For example, the way to get promoted is to show their manager
their performance on work assignment, go extra miles (extra work hours), and help
the co-worker and peers. The third phase is the employee performs the necessary
work performance in order to get promoted called goal-directed behavior. The next
phrase is performance evaluation. Work performance is reviewed and evaluated by
manager that might lead to reward or punishment (phrase 5) shown in figure 2.1.
Regardless they got promoted or not, they might feel need deficiencies again and the
cycle might repeat the same way.
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1. Need deficiences
6. Need deficiencies
reassessed by the
employee
2. Search for ways
to satisfy needs
5. Reward or
punishment
3. Goal- directed
behavior
4. Perfomance
(Evaluation of goal
accomplished)
Figure 2. 1 The Motivational Process: An Initial Model
Source: Gibson et al. (2012, p. 128)
There are several theories discussing motivation. However, in this chapter, few
of motivation theories are going to be explained and described along with the
strengths and weaknesses. They are Maslow’s hierarchy of needs, Herzberg's
motivation-hygiene theory, Alderfer’s ERG theory, and McClelland’s learned need
theory.
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2.1.3
Maslow's Hierarchy of Needs
Abraham Maslow proposed the theory of Maslow’s hierarchy of needs that has
been widely discussed and cited the most. Maslow illustrated human needs in five
categories as stated in Gibson et al. (2012). They are (1) physiological, (2) safety and
security, (3) belongingness, social, and love, (4) esteem, and (5) self-actualization,
displayed on Figure 2.2. Maslow believed that by understanding the unsatisfied need
of the employees which drive motivation may result to enhance employee
performance (Maslow, Stephens, & Heil, 1998).
Self-atucalization
Esteem needs
Belongingsness and love needs
Safety needs
Biological and Physiological needs
Figure 2. 2 Maslow’s pyramid
Source: Chapman (2001)
The physiological needs is known as initial point for motivation theory
(Maslow, A. , 1943). This first level is the lowest and the basic need of every human
being that urgently need to be satisfied. This need includes the need of water, food,
clothes, shelter, and sex. Franklin said in his book, entitled The Psychology of
25
Happiness, that the human are imposiblly interested to pay attention to global
problem such as global warming or world peace, if human do not have enough food
to eat and clothes to keep them warm first (Franklin, 2010). By statisfing the most
essential needs, we can go on to fullfil the next one, safety needs.
Safety need is the next-upper level after physiological needs based on
Maslow’s pyramid. Too many uncertainties surrounding the human life make them
uncomfortable with worries, danger, and fear. It is a human need to feel safe and live
with no harm or threat (Franklin, 2010). They might not develop themselves for
better person and unlock of potential inside them if they are in trap of dangers,
worries, and threat feeling from environment. Employees keep working and stay in
particular company to achieve financial security. People buy insurance and build a
high security home system purely for sole purpose, personal security.
After having enough food to eat, clothes to keep warm, and security to keep
safe, the next need to be satisfied is belongingness and love need. As human being,
they will look for the place where they can love and be loved (relationship). On the
other word, People are social animals (Franklin, 2010) meaning that people cannot
live alone. They want to be involved in the society activities as a part of community.
Communities exist because a group of people who are actively seeking for
togetherness, avoiding loneliness, and solving problems collectively.
The second last need is esteem needs. Once the human living among the
society, working together, and helping each other are achieved, they are going to
look for respect and good image or impression for themselves. Human want to get
recognized and status in the society (Franklin, 2010). It futher explains that
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reputation is the goal of esteem need. Moreover, Maslow believed that human are
more self-confidence and worth by fulfilling esteem need (Maslow, A., 1970).
Powerlessness, helplessness, discouragement, and inferiority are the consequences of
neglecting this need as he further explained (Maslow, A., 1970).
Self-actualization is the highest need of Maslow’s pyramid. Once, all needs
below this level are satisfied, human will focus on his potentials and abilities.
Franklin stated in his book that the self-actualization of the person is driven by
unselfish or self-sacrificing principle unlike the rest of the needs below selfactualization need are motivated by deficiency needs (Franklin, 2010).
Table 2.3 explains the five needs based on Maslow Theory relating to work
motivation. In this theory, Maslow emphasized that person tries to fulfill and satisfy
the basic need (referred to physiological need) and fulfill the upper-level needs until
self-actualization (Gibson et al., 2012); (Medinilla, 2012, p. 71).
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Table 2. 3 Five categories of Maslow’s hierarchy of needs related to work
Physiological
Primary need such as food, drink, shelter.
The need for freedom from threat, being
Safety and security
indepence, security from intimidating
surroundings. For example: comfortable and safety
workplace.
The need for friendship, relationship, interaction.
Belongingness, social, and love For example: sense of belonging to the corporate
or company.
The need for self-esteem. For example: desire to
Esteem
get respect from others.
The need to maximize their potential, skill, and
Self-actualization
abilities. For instance: developing soft and hard
skill for self-development.
Source: Modified from Gibson et al. (2012)
Maslow’s pyramid has its own strengths and weaknesses. The strength of this
theory is that this theory of needs can be strong fundamental theory describing level
of human needs that might be useful for marketing purposes. Additionally, this
theory is highly related to intuitive nature, explaining how human will not be able to
move on to the next level of needs if they are not fully satisfied the basic needs,
physiologic needs (Redmond, 2009).
The weaknesses of Maslow theory, on the other hand, this theory is barely to
be implemented on multicultural work environment due to different standard of each
element in dissimilar culture. Norms and values vary across cultures making it
difficult and tricky to generalize every element in Maslow’s theory (Redmond, 2009).
28
Additionally, Maslow fails to interpret the behavior outside the norms and values
across culture that might happen (Redmond, 2009). For instance, the behavior of
risking one’s life for another and sacrificing family, friend, or even society for
fulfilling self-actualization. Likewise, Maslow’s pyramid has high level of overlap
variables which lead to difficulties in measuring and testing them for instance
variable belongingness and love needs and esteem need, or physiological needs and
safety needs (Reid & Cunningham, 2008).
2.1.4
Herzberg's Two-FactorTheory
Another theory of motivation came from Fredick Herzberg, psychologist and
management consultant. He developed motivation theories entitled two-factor theory,
job satisfaction (and motivator) and job dissatisfaction (Herzberg, 1987). These twofactors are also known as hygiene (dissatisfier) - motivator (satisfiers) and extrinsic
(dissatisfier) – intrinsic (satisfier) (Gibson et al., 2012). His original research was
experimenting on 200 accountants and engineers by interviewing them and came up
with these two factors. The respondents were asked to tell their experience and times
when they felt extremely good and extremely bad regarding their jobs and how long
that feeling lasted (Armstrong, 1999). The result showed that good feelings regarding
the essence of the jobs are achievement, responsibility, the work itself, recognition,
and advancement (Armstrong, 1999). On the other side, the bad feelings regarding
the component of the job are company policy and supervision, salary, working
condition, and supervision (Armstrong, 1999).
29
Frederick further defined between extrinsic factors and intrinsic factors.
Factors motivate employees coming from outside, this is called extrinsic motivation,
whereas intrinsic motivation is motivation factors or variables coming from inside
(Medinilla, 2012). He elaborated which both job satisfaction and job dissatisfaction
operate independently (Medinilla, 2012). On the other word, a significant increase in
any of these two factors does not mean a significant declining or decrease on the
other factor.
The extrinsic (hygiene –dis-satisfier) factors are pay, working condition,
policies and procedures, interpersonal relations, status, fringe benefits, and job
security (Gibson et al., 2012). The existence of these factors may not essentially have
impact to the satisfaction of employees; however, the absence of these factors may
result to dissatisfaction (Gibson et al., 2012). Hence, the purpose of hygiene factors
is to keep up the level of no dissatisfaction as least as possible.
The intrinsic (motivator – satisfier) factors cover meaningful work, recognition,
feeling of achievement, opportunities for growth, opportunity for advancement, and
increased responsibility (Gibson et al., 2012). Unlike extrinsic factors, the lack of the
intrinsic factors does not verify exceptionally on dissatisfaction, however, the
presence of these factors will lead to good job performance because of strong and
high level of motivation to employees (Gibson et al., 2012).
This research has been reviewing three resources consisting one journal and
two textbooks. There are several points of view coming from different sources that
acknowledge the differences variable composing motivator and hygiene factors in
Herzberg theory. The first source is a journal entitled One More Time: How Do You
30
Motivate Employees? composed by Frederick Herzberg in 1987. The second resource
is a book entitled A Handbook of Human Resource Management Practice by Michael
Armstrong in 1999. The third resource is a textbook entitled Organizations Behavior,
Structure, Processes 14th edition by James L. Gibson, John M. Ivancevich, James H.
Donnely, Jr., and Robert Konopaske in 2012. The different perspectives are
presented in Table 2.4 and table 2.5.
The first journal was written by Frederick Herzberg who is the inventor of
Herzberg two-factors theory. This journal is the main reference in this research to
test the variables. However, Armstrong (1999) stated fewer variables in motivator
factors and hygiene factors. He did not mention growth as component of motivator
factors and relationship with supervisor, peers, and co-work, personal life, status, and
job security as a part of hygiene factors shown on the Table 2.4 and 2.5.
Gibson et al. (2012) also stated in textbook of Organization Behavior,
Structure, Processes less variable than Frederick Herzberg mentioned in this journal.
Gibson, Ivancevich, Jr, & Konopaske summarized three-type interpersonal
relationship mentioned by Frederick Herzberg into one variable, interpersonal
relationship. Furthermore, they did not count personal life as a component of hygiene
factor, yet added one variable to this factor which is fringe benefit as shown in table
2.5.
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Table 2. 4 Perspective differences on variables composing motivator factors
Motivator Factors
Michael Armstrong
Frederick Herzberg (1987)
Gibson (2012)
(1999)
Achievement
Achievement
Achievement
Recognition
Recognition
Recognition
Advancement
Advancement
Advancement
Responsibility
Responsibility
Responsibility
Work itself
Work itself
Work itself
Growth
-
Growth
Source: Summarized from Herzberg (1987), Armstrong (1999), and Gibson et al. (2012).
Table 2. 5 Perspective differences on variables composing hygiene factors
Hygiene Factors
Frederick Herzberg (1987)
Michael
Armstrong (1999)
Gibson (2012)
Company policies
Company policies
Company policies
Supervision
Supervision
Recognition
Relationship with supervisor
-
Interpersonal relationship
Relationship with peers
-
Interpersonal relationship
Relationship with subordinates
-
Interpersonal relationship
Working condition
Working condition
Working condition
Salary
Salary
Pay
Personal life
-
-
Status
-
Status
Job security
-
Job security
-
-
Fringe benefit
Source: Summarized from Herzberg (1987), Armstrong (1999), and Gibson et al. (2012).
Herzberg theory demonstrated that job satisfaction is not uni-dimensional
factors (Gibson et al., 2012). Most of people set job satisfaction and job
32
dissatisfaction on the same continuum, called uni-dimensional factors. Removing one
variable caused job dissatisfaction may lead to the other end which is job satisfaction
or it applies on the other way around. . Nevertheless, Herzberg recommended that
job satisfaction and dissatisfaction are two different continua illustrated in Figure 2.3
and Figure 2.4. These two continua are highly needed to construe and analyze job
satisfaction precisely.
High job dissatisfaction
High job satisfaction
Figure 2. 3 Traditional perspective of job satisfaction and dissatisfaction
Source: Gibson et al. (2012).
Low job satisfaction
High job satisfaction
Motivation

Feeling of achievement

Meaningful work

Opportunities for advancement

Increased responsibility

Recognition

Opportunities for growth
Low job dissatisfaction
High job dissatisfaction
Hygiene

Pay

Status

Job security

Working condition

Fringe benefits

Policies and procedures

Interpersonal relations
Figure 2. 4 Herzberg perspective of job satisfaction and dissatisfaction
Source: Gibson et al. (2012)
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After reviewing Figure 2.4, there are some managerial implications relating
to Herzberg theory on how handling employee when under the situation of (1) low
job dissatisfaction, high job satisfaction, (2) low job dissatisfaction, low job
satisfaction, and (3) high job dissatisfaction, low job satisfaction (Gibson et al., 2012)
interpreted in Figure 2.5. The explanations of each situation are provided below.
Figure 2. 5 Quadrant combination of job satisfaction and job dissatisfaction
Source : Developed from Gibson et all. (2012)
In quadrant A describes a combination of low dissatisfaction and low satisfaction.
Low dissatisfaction illustrates employees who get well paid, job security, good
interrelationship with co-workers, peer, and supervisor. This is for companies which
have been fulfilling the hygiene factor for the employee excellently. However, low
job satisfaction defines that the employees are not given a challenging job
assignment and might be bored with their job (the absence of motivator factors leads
to low job satisfaction). For managers who have experienced this situation, they can
reassess subordinate’s job descriptions and job assignment by delivering a
challenging job assignment, increasing job security, and offering additional wages or
salary.
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Quadrant B consists of high job-satisfaction and low job-dissatisfaction. This
describes the companies or managers who have performed or motived their
employees by fulfilling motivator factors and hygiene factors. The company should
maintain its performance by continuously giving or providing challenging and
interesting job assignment along with increase in wages, job security, and other
hygiene factors in order to retain the highly motivated employee as an asset for the
company.
Quadrant C illustrates the combination of high job dissatisfaction and low jobsatisfaction. Both poor motivator factors (not paid well, poor relationship, little job
security) and poor hygiene factors (boring and not challenging job assignment) are
given to the employee will lead to poor job performance, high turnover, and
absenteeism at the work. The managers and companies should take a serious action
and strategy to change and fix this condition.
The strength of Herzberg’s theory is that most of the variables in both hygiene
and motivator factor are in the control of managers such as working condition, salary,
benefits, policies, recognition, and challenging work or job assignment. Herzberg
identified these factors that might benefit for manager in order to improve job
satisfaction and reduce job dissatisfaction among the employee. Herzberg’s theory
also presents the weaknesses which are later explained in this part including limited
sample tested and simplification of job satisfaction (Gibson et al., 2012). The nature
of Herzberg’s study was testing 200 American accountants and engineers. Therefore,
many questions arose such as in limited sample whether can be a strong justification
for generalizing for other occupations across cultures, countries, norms and values in
society.
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In addition to limited sample, other critics focus on simplification of job
satisfaction. Herzberg theory simply said that by changing variables in motivator or
hygiene factors, managers or companies can simply change job satisfaction of the
employee. Based on that factors, it can be said that motivation and job satisfaction
study is quite complex and there are so many variables that involve and contribute to
job satisfaction and motivation.
2.1.5
Alderfer’s ERG Theory
Clayton Alderfer proposed and developed human motivation theory called
ERG theory in 1969 as extended of Maslow’s pyramid (Chang & Yuan, 2008). He
proposed the hierarchy of need that comprises three set of needs; Existence,
Relatedness, and Growth (Gibson et al., 2012). These three needs have their own
characteristics; the existence describe the needs of food, water, air, working
conditions, and pay; the relatedness illustrate the needs of interpersonal relationship
and social relationship; growth define the needs of individual participating on
productive contribution (Gibson et al., 2012). Since Maslow’s pyramid is as
fundamental theory of ERG theory was developed and extended from, there is
similarity category of both theories, showed in figure 2.6 below.
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Maslow’s Theory
ERG Theory
Higher level
Self-actualization
Growth
Esteem
Belongingness and love
Relatedness
Safety
Existence
Lower level
Physiological
Figure 2. 6 Similarity of categorizing needs based on Maslow and ERG
Source: Chang & Yuan (2008)
ERG theory has different perception on how people pass or move through
different stages of needs. In his theory, Clayton Alderfer stated that if the person has
been constantly desperate in fulfilling growth needs, relatedness needs will become a
main motivation force (Gibson et al., 2012).
Eventhough ERG theory was derived from Maslow’ hireachy of needs,
Redmond (2009) wrote that ERG theory are less restrictive and flexible than
Maslow’s. It is because the ERG put these need into bigger picture of group of needs
showed in Figure 2.5. Clayton grouped physiological and safety need into existence
needs, while belongingness and love need are equivalent with relatedness needs,
lastly, esteem and self-actualization needs are grouped to growth need.
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Since ERT theory has not encourage many research studies, the empirical and
experimental authentication and verification is problematic and hard to claim for its
justification and explanation (Gibson et al., 2012). As in any science, theories must
be supported by experiment and research in order to provide the credibility and
validity of the theory itself. That would be the weaknesses of ERG theory. Salancik
and Pfeffer put further explanation that ERG theory and Maslow theory are highly
correlated with theories of rational choice that in a sense of the reason behind human
behavior or action is based on unsatisfied needs that provide goal and purpose
(Gibson et al., 2012).
2.1.6
McClelland’s Learned Needs Theory
Learned needs theory was proposed by David C McClelland (Gibson et al.,
2012). Learned needs theory is also known as acquired needs theory (Daft, 2014). He
associated his theory closely to learning concepts and came up with three types of
learning concepts. They are the need for achievement (n Ach), the need for affiliation
(n Aff), and lastly the need for power (n Pow) stated in Gibson et al. (2012). These
three needs are explain below.
Need for achievement defines as a desire of the human to accomplish
something meaningful and difficult, comprehend in convoluted or complex task,
achieve high standard of success (Daft, 2014). Need for affiliation describes the
human need for socializing with others, have close relationship, participate in society,
and establish friendship (Daft, 2014). The last need is need for power. This need is
38
including the desire to have control over the other human, play as influential person
for others, and have power and authority (Daft, 2014).
McClelland explained that early life experience normally will define the person
to attain these needs (Daft, 2014). For example, the children will develop the need of
achievement if their environment forces them to do something for themselves. On
the other hand, the children might achieve the need for affiliation if the environment
encouraged them to form a good relationship with others and actively participate in
community. Lastly, the children who are reinforced for controlling others will
develop need for power.
The managerial implication of acquired needs theory had been studied for more
than 20 years (Daft, 2014). People who have high need for achievement usually
come out as entrepreneurs. Moreover, people with high need for affiliation are good
at job coordination across several departments in the organization, successful
integrators. Managers who have this kind of employees can put them in the position
with a lot of job coordination with other departments. Finally, employees who are
successfully get a high or top managerial level is characterized by people who have
high need of power.
In order to measure and evaluate the difference among these three needs in
every individual; Thematic Apperception Test (TAT) is proposed (Gibson et al.,
2012). TAT analyzes people by showing or displaying a picture and asking them to
write a story in regards what they see in the picture given to them.
The strength of this theory is about empirical evidences. Much more empirical
studies has examined and supported this theory more than Maslow and Alderfer
39
(Redmond, 2009).
McClelland claimed that these needs are not innate, but
something that people can develop at very young ages.
The weaknesses of this research are about questionable of TAT, perception of
acquiring motive since childhood, and the nature of acquired needs (Gibson et al.,
2012). In fact, the usage of TAT has given some advantages over self-report
questionnaires; however, validation of the analysis should be conducted and not be
displaced. McClelland claimed that motives and driven are obtained in childhood,
and it is hard to change in adulthood. Nevertheless, this theory is contradicted with
the evidence that politics and religion variables involve that adult manners can be
altered. Lastly, the concept of this theory is questioned whether these needs are
attained perpetually.
2.1.7
Comparison of four motivation theories
These four theories explained above are provided to give different perspectives
of motivation theories. From these motivation theories, the theory that is used in this
research theory is Herzberg’s two-factor theory; furthermore, both hygiene and
motivation factors will be tested. The following Figure 2.7 is provided below for
component comparison of these four motivation theories. To sum up table 2.6
presents a content comparison of these four theories of motivation.
40
Maslow
Self-
actualization
need
Esteem need
Belongingness
and love need
Safety need
Physiological
need
Herzberg
Motivation:
- Achievement
- Meaningful work
- Advancement
- Responsibility
- Recognition
- Growth
Alderfer
McClelland
Need for
Growth
achievement
Need for
Hygiene:
- Pay
- Status
- Job security
- Working
conditions
- Fringe benefits
- Policies and
procedures
- Interpersonal
relations
Relatedness
affiliation
Need for
Existence
power
Figure 2. 7 Comparison of the factors of four motivation theories.
Source: Gibson et al. (2012)
This research used Herzberg two-factor theory as a fundamental theory to
further examine the motivational factors percieved by Gen Y undergraduate students.
There are several reasons . First is the theory has been widely used in many
researches, therefore it provides emperical evidence for reliability of the theory.
Second, this theory has quite complex variable to test that lead to deeper and clearer
understanding and insight. In conclusion, this research utilized Herzberg two-factor
theory.
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Table 2. 6 Comparison of four motivation theories (Based on the content).
Motivation
theories
Original assumptions
Maslow’s
Satisfied basic needs first
hierarchy of
before attempting to satisfy
need
higher level of need.
Herzberg’s
Some job variables related to
two-factor
theory
How motivation is
measured
Self-report scales.
Practical application value
Limitation
Give a logic understanding to manager
Failure to address the concern
on how motivation works.
of cultural, individual, norms
and social value differences.
Interviewing
The variables are applicable for
Limited job sample on his
motivation. The rest related to employee to define
managers to develop and use for their
research. Fail to meet
comfortable work.
employees.
scientific measurement
critical job event.
standards
42
Table 2.6 Comparison of four motivation theories. – continued
Motivation
theories
Original assumptions
Alderfer’s
Failure in satisfying growth
ERG theory
How motivation is
measured
Self-report scales.
Practical application value
Limitation
Frustrations can be a second major
Lack of empirical validation
needs, lower-order need
reason aside from need satisfaction
for the theory, rising issue
become major attention to
does not appear.
regarding how reliable and
fulfill one.
good the measurements.
Mc
An individual’s needs are
It is measured and
Training program can be utilized by
Interpretation of TAT is hard
Clelland’s
learned from the community,
identified by
managers in companies and corporates
to claim, furthermore,
learned
thus, enhancing and influence
Thematic
since anindividual’s need can be
insufficient empirical test
needs
an individual’s need strength
Apperception Test
evaluated and assessed with
regarding the effect of
organizational goals.
training to the change of
can be improved by education (TAT).
and training program.
Source: Adopted from Gibson et al. (2012)
needs.
43
2.1.8
Importance of employee motivation toward employee productivity
Research relating to employee motivation and employee productivity done by
Syed, Anka, Jamali, & Shaikh (2012) in the public sector, with one of research
objective was to examine the relationship between motivation and productivity.
They gathered the data by face to face structure interview with 66 respondents
coming from junior, senior, and management staff of Raw Materials Research and
Development Council (RMRDC) in Nigeria. One of the results of the research
regarding the motivation to perform their duties is regular promotion, as it is
perceived as motivation to enhance the employee performance leading to enhance
productivity in Nigeria private sectors (Syed et al., 2012).High level motivation in
workplace helps to improve performance and enhance productivity (Pandey, 2014).
2.1.9
Importance of employee motivation toward employee retention
Nine of ten managers had a though that money was the main reason why
people choose to stay or leave as stated in Havard management update on June 1988
(Kaye, Jordan, & Evans, 2000). On the other hand, Kaye et al. (2000) further stated
that in fact money and incentive matter, however, employees are attracted and
concerned about opportunity for learning and development, challenging work,
meaningful of job assignment, and good bosses. Journal entitled Employee Retention
by Motivation concludes that employee retention can be implemented better by
properly motivating employee (Sandhya & Kumar, 2011). Employee retention is not
only crucial to diminish the company turnover cost and incurred cost of recruiting
and training new employee but also to retain talent as an asset of the companies or
corporate to achieve both long term and short term goals.
44
2.1.10 Importance of talent management
Every business player in every industry has ultimate goals to earn profit and
keep developing their business. Thus, focusing on recruiting, attracting, and retaining
the best employees is quite crucial. A talented employee should be handled and
managed properly by the companies with appropriate management called talent
management.
Avedon define talent management as an integrated set of processes and
procedures used in an organization to attract, onboard, retain, develop, and move
talent, as well as to exit talent to achieve strategic objective stated in Silzer &
Dowell (2010, p. 16).
Cerrone elaborated talent management as “attracting, retaining, and
developing the right people with the right skills in the right roles” stated in Silzer &
Dowell (2010, p. 16).
Talent management plays an imperative role in the companies or corporates.
Strong talents have a positive impact to the company (Silzer & Dowell, 2010).
Moreover, Silzer and Dowell (2010) elaborated further that practicing talent
management practices perceive to have significant connection with higher financial
performance including return on equity (ROE), return on assets (ROA), return on
investment (ROI), sales per employee, total shareholder return, and income per
employee. Talent can be defined as one’s skill and abilities of contributingor
participating to the organization (Silzer & Dowell, 2010).
45
2.1.11 Previous Research Regarding Motivational Factors
This section provides the previous empirical studies conducted by other
researcher relating to motivation factors and Generation Y employee displayed in
table 2.7.
46
Table 2. 7 Summary of previous researches on motivation
No.
Authors, Year
Title
1.
Janice Carter –
Motivating the 21st
To explore Maslow’s
Steward, 2009
Century Worker: A Case
hierarchy of needs as
Study of Maslow’s
motivational theory applied
Hierarchy of Needs as It
Applies to The Current
The purpose of study
for 21st century workers.
Variable
- Physiological
needs
The order of Maslow’s
hierarchy of needs in 21st
century workers is
- Safety needs
- Social needs
Generationally Diverse
Workplace
Findings
physiological, social, safety,
self-esteem, and selfactualization needs. The
- Self-esteem needs most shared needs are
- Self-actualization
needs
physiological, social, safety
needs
47
Table 2.7 the previous research summaries-continued
No.
Authors, Year
Title
2.
J.S.Ky Suh,
Influence of Birth
2005
Decade on Work-Related factors among the multiMotivational Factor
The purpose of study
To explore motivational
Variable
- Achievement
- Control
generation of employee at
workforce (birth years :
1950s, 1960s, 1970s, and
1980s)
Findings
The differences exist
between this birth year
groups of employee.
- Influence
- Affiliation
- Extension
- Dependence
3.
Randee D.
Motivational Factors that
To discover how financial
Janiszewski,
Influence Baby Boomer
and non-financial variables
2004
versus Generation X :
can be implemented as
Independent Insurance
Agents
motivational factors which
influence the career for both
baby boom and generation
X independent insurance
agent.
- Financial
compensation
Slight effect differences
between financial and nonfinancial compensation
- Non-financial
compensation
(recognition and
autonomy)
between baby boomers and
gen X.
48
Table 2.7 the previous research summaries-continued
No.
Authors, Year
4.
Susan
Title
A Comparison of The
The purpose of study
Variable
Findings
To distinguish the
Motivation
There are slight differences
Kornigsknecht, Motivational Factors of
motivation and trust factors
(Challenging work,
between baby boomers and
2002
Baby Boomers and
among Baby Boomer
compensation, and
generation X except for
Generation X Employee
employee and Generation X
feeling valued),
trust variables.
employee.
Trust (Leadership,
communication,
and work
environment).
Source: Developed from Steward (2009), Suh (2005),Janiszewski (2004), Kornigsknecht (2002)
2.2 Construction of Hypotheses
First research question of this research is which motivator factors are perceived
the most important by Gen Y undergraduate students to work as future talents in
companies in Indonesia. Therefore, the first hypothesis will be as follow:
H1 : There is the relationship of each component of motivator factor to work as
future talents in companies in Indonesia as perceived by Gen Y undergraduate
students.
Second research question of this research is which hygiene factors are
perceived the most important by Gen Y undergraduate students to work as future
talents in companies in Indonesia. Thus, the second hypothesis will be as follow:
H2 : There is the relationship of each component of hygiene factor to work as future
talents in companies in Indonesia as perceived by Gen Y undergraduate
students.
The third research question of this research is which factors are perceived more
important between motivator factors and hygiene factors that motivate undergraduate
generation Y students to work as future talents in companies in Indonesia. Hence,
the third hypothesis will be as follow:
H3 : There is difference perception in Gen Y undergraduate students regarding to
motivator factor and hygiene factor to work as future talents in companies in
Indonesia.
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2.3 Research Framework
Independent Variable
Dependent Variable
X
Y
Motivator Factors:
Achievement
Recognition
Advancement
Responsibility
Work itself
Growth
Hygiene Factors:
GEN Y
Undergraduate
Hygiene Factors:
Student
Company policies
Workplace
Supervision
Motivational factors
Relationship with
supervisor
Relationship with
peer
Relationship with
subordinates
Working condition
Salary
Personal life
Job Status
Job security
50