EMPLOYEE MOTIVATION IN PROJECT MANAGEMENT

EMPLOYEE MOTIVATION IN PROJECT MANAGEMENT


Approved:
Date: 7 May 2009
Paper Advisor

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Motivation in Project Management ii

EMPLOYEE MOTIVATION IN PROJECT MANAGEMENT




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A Seminar Research Paper

Presented to

the Graduate Faculty

University of Wisconsin-Platteville

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In Partial Fulfillment of the

Requirement for the Degree

Master of Science

in

Project Management

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by

FangMin Yang

2009

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ABSTRACT
The purpose of this paper was to discuss motivation theory and explore the
application of motivation theory in project management. There are numerous
differences between project management and traditional management, but, when it
comes to motivating employees, the same motivation theories that are used in
traditional management can be used to motivate employees working on projects.
Nowadays, motivation theory has become a central tenet of management theory, such
that the effective use of motivation theory has a significant impact on the dedication
and performance of employees and, as a result, the overall success of a company.
This seminar paper presents a summary of some of the most popular
motivation theories, and a review of their application to management of employees, in
general, and to project management teams, specifically. Each motivation theory has
advantages and disadvantages. The motivation theories discussed in this paper are
Maslow’s Hierarchy of Needs, Herzberg’s Two-Factor Theory of Motivation, and
McGregor’s Theory X and Theory Y. When these theories are applied in organizations,
managers must take into account the situation and make the decision of which
motivation theory will work best given the situation.
My research findings suggest that there is a difference between motivating
employees in project management and traditional management. In addition, this paper
describes how to motivate mangers and leaders, and provides several constructive
proposals for building a motivated project team.
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TABLE OF CONTENTS
ABSTRACT ................................................................................................................. iii
INTRODUCTION ......................................................................................................... 1
Statement of Problem ................................................................................................. 1
Purpose of the Research ............................................................................................. 2
Significance of the Problem ....................................................................................... 2
Assumptions ............................................................................................................... 2
Delimitation of the Research ...................................................................................... 2
Method of Approach .................................................................................................. 3
Definition of Terms .................................................................................................... 3
LITERATURE REVIEW .............................................................................................. 4
History of Motivation Theories .................................................................................. 4
Introduction to Maslow’s Hierarchy of Needs ....................................................... 4
Application of Maslow’s Hierarchy of Needs ........................................................ 7
Introduction of Herzberg’s Two-Factor Theory of Motivation .............................. 8
Application of Herzberg’s Two-Factor Theory of Motivation ............................. 10
McGregor’s Theory X and Theory Y ................................................................... 11
Application of Motivation Theories in Project Management................................... 13
Motivation in Project Teams ................................................................................ 14
SUMMARY ................................................................................................................. 18
Conclusions .............................................................................................................. 18
Limitations ............................................................................................................... 20
Recommendations for Future Research ................................................................... 21
REFERENCES ............................................................................................................ 24

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TABLE OF FIGURES
Figure 1. Maslow’s Hierarchy of Needs ........................................................................ 5
Figure 2. Factors that led to extreme satisfaction according to Herzberg ..................... 9
Figure 3. Factors that led to extreme dissatisfaction according to Herzberg ................. 9



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INTRODUCTION
Competition between organizations is becoming more and more fierce, it
requires organizations to operate efficiently in the present while innovate effectively
for the future. Managers and leaders within these organizations not only focus on the
market success and profitability of each project, but also augment their continued
global competitiveness. Therefore, managers and leaders do need to motivate their
employees in order to be profitable and successful.
“Motivation is the driving force within individuals that compels them
physiologically and psychologically to pursue one or more goals to fulfill their needs
or expectations,” (Lam and Tang, 2003, p. 61). There is general understanding of
employee motivation, but it has not been thoroughly investigated in the project
management setting. So this paper will introduce some popular motivation theories
and investigate their application to project management by reviewing existing
literature.
Statement of Problem
The problem presented in this paper was to identify how motivation theory is
applied in project management. Project management has differences from traditional
management, but employees working on projects also can be motivated if managers
properly use these motivation theories. Yet, there is a lack of consensus of in project
management as to how to properly motivate project managers and team members.

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Motivation in Project Management 2

Purpose of the Research
As there has been little research aimed at understanding motivation in project
management, the purpose of this research paper is to introduce some popular
motivation theories and their applications in business in general, and specifically in
project management. Another purpose of this paper is to outline what is known about
motivating employees in project management and to identify gaps in research into
motivation of project management personnel.
Significance of the Problem
As project management is becoming a more and more popular in organizations,
research investigating how to motivate project management employees is of great
importance to organizations and project managers. Research has shown that motivated
employees are more productive than unmotivated workers, which can improve an
organizations competitive position.
Assumptions
For the purpose of this paper, it was assumed that all research and reviews of
the current literature were accurately reported. Also, it was assumed that the literature
made recommendations on how best to use the research presented therein.
Delimitation of the Research
The research was conducted in and through the Karrmann Library at the
University of Wisconsin-Platteville, over a period of thirty (30) days. Primary
searches were conducted through the Internet using the ABI/Informs Global database
and the EBSCO host databases with Academic Source Elite, Business Source Elite,

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and Academic Search Complete as the primary sources. Key search topics included
“motivation theory”, “motivating employees”, “motivation theory in project
management”, and “motivating project management employees”.
Method of Approach
A brief review of literature on the studies of Maslow’s Hierarchy of Needs,
Herzberg’s Two-Factor Theory, McGregor’s Theory X and Theory Y motivation
theories was conducted. A second review of literature focused on application of these
theories was conducted. The findings were summarized and recommendations made.
Definition of Terms
Motivation：“Motivation is the driving force within individuals that compels them
physiologically and psychologically to pursue one or more goals to fulfill their needs
or expectations,” (Lam and Tang, 2003, p. 61).
Project: A project is a finite endeavor (having specific start and completion dates)
undertaken to create a unique product or service which brings about beneficial change
or added value. This finite characteristic of projects stands in contrast to processes, or
operations, which are permanent or semi-permanent functional work to repetitively
produce the same product or service (Dinsmore et al., 2005).
Project management: Project management is the discipline of planning, organizing
and managing resources to bring about the successful completion of specific project
goals and objectives (Cleland & Gareis, 2006).

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Motivation in Project Management 4

LITERATURE REVIEW
History of Motivation Theories
Motivation is one of the most popular topics in organizational behavior
(Stephen, 2005). Nowadays, managers are trying to find useful theories to motivate
their employees. While there are a wide variety of theories on human motivation,
these theories do not conflict, which means that managers can use any or all those
motivation theories to motivate their employees. Managers can use these motivation
theories in ways that complement each other. A brief history of motivation theory is
presented in order to outline the current understanding of employee motivation.
Introduction to Maslow’s Hierarchy of Needs
In 1943, psychologist Abraham Maslow published a paper titled, A Theory of
Human Motivation, and later Maslow expanded on his theory of human motivation in
a 1943 book, Toward a Psychology of Being. In the 1943 article, Maslow formulated
a need-based framework of human motivation, which was based upon his clinical
experiences with human patients.
According to Maslow’s motivation theory, the answer to the question, “why
people are motivated?” is that they are motivated by a variety of needs (Maslow,
1971). Maslow (1943) grouped all human needs into five “need” categories that can
then be arranged in levels by importance. Thus, Maslow’s Hierarchy of Needs is
arranged from the lowest level to the highest level as follows: physiological needs,
safety needs, social needs, esteem needs, and self-transcendence (Fig. 1).

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Figure 1. Maslow’s Hierarchy of Needs

Physiological needs: Physiological needs are the lowest level of needs, which
are the most basic needs for people. Physiological needs are also considered the
requirements for human survival. If these requirements are not met, people cannot
continue to function. Physiological needs include: breathing, homeostasis, water,
sleep, food, excretion, and sex.
Safety needs: When people’s physical needs have satisfied, they will pursue
higher level needs, such as safety needs. Safety needs are driven by the need for
security and protection from physical and emotion harm. Safety needs include:
personal security, financial security, health and well-being, and a safety net or
insurance for accidents/illness and the adverse impacts.
Social needs: Social needs are the third level of human needs, and include
one’s needs for affection and a sense of belonging and acceptance. Humans need to

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