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MOTIVATION

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Published in: Business Studies | MBA
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This note covers motivation theories along with real examples and figures.

Debarati M / Kolkata

13 years of teaching experience

Qualification: M.Sc (Calcutta University - 1999), ICWA ( - 2003), M.Com (Calcutta University - 1997), MBA/PGDM (MAKAUT - 2012), Ph.D (MUMBAI IIT - 0)

Teaches: Accountancy, Business Mathematics, Commerce Subjects, Economics, B.Com Tuition, Bachelor of Tourism Administration, BBA Tuition, BTTM, Hotel Management, Bank Clerical, Bank PO, Bachelor of Hospital Administration (BHA), BBA Subjects, Management Subjects, MBA Entrance, CAT Exam, CMAT, Hotel Management Entrance, IBSAT, MAT, NMAT

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  1. MOTIVATION Meaning : Motivation is a basic psychological process, Technically, the term 'motivation' can be traced to the Latin word 'movere', which means "to move". This meaning is evident in the following comprehensive definition: "A motive is an inner state that energizes, activates or moves (hence) motivation" and that directs or channels behaviour towards goals". The key to understanding motivation lies in the meaning of, and relationship between, needs, drives, and goals. THE BASIC MOTIVATION PROCESS NEEDS - -- DRIVES - (Deprivation with Direction) -- GOALS (Reduction of drives) 1. 2. 3. Needs: The best one-ward definition of a need is deficiency. For example, a need exists when a cell in the body is deprived of food and water. Drives:Drives or motives are set up to alleviate needs. A drive can simply be defined as a deficiency with direction. The examples of the needs for food and water are translated into the hunger and thirst drives, and the need for friends becomes a drive for affiliation. Goals: At the end of the motivation cycle is the goal. A goal in the motivation cycle can be defined as anything which will alleviate a need and reduce a drive. Food, Water andFriends are the goals in our examples. TYPES OF MOTIVES Primary Motives: Hunger, thirst, sleep, avoidance of pain, sex etc, are classified as primary motives. General Motives: The motives of competence, curiosity, manipulation activity, and affection are called general motives. Secondary Motives: Power, achievement, affiliation, security and status are important secondary motives. FINANCIAL AND NON - FINANCIAL REWARDS FINANCIAL REWARDS: 1. 2. 3. 4. 5. 6. Basic pay Dearness Allowance (DA) House Rent Allowance (HRA) City Compensatory Allowance (CCA) Overtime Allowance (OT) Leave Travel Concession (LTC) 7. Incentive Plans (Piece rates, Bonus or Profit sharing) NON - FINANCIAL REWARDS:
  2. The following table summarizes some of the major categories of non financial rewards. Even though these are considered non financial, they may still cost the organization. THEORIES OF MOTIVATION 1. THE CONTENT THEORIES OF WORK MOTIVATION The content theories of work motivation attempt to determine what it is that motivates people at work. They are concerned with the types of incentives or goals that people strive to attain in order to be satisfied and perform well. Now, let us discuss four important content theories of motivation in the following section. 1. Maslow's Hierarchy of Needs: Abraham Maslow thought that a person's motivational needs can be arranged in a hierarchical manner. In essence,he believed that once a given level of need is satisfied,it no longer serves to motivate. The next higher level of need has to be activated in order to motivate the individual Maslow identified five levels in his need hierarchy. 1. Physiological needs:The needs of hunger, thirst, sleep and sex are physiological needs. According to the theory, once these basic needs are satisfied, they no longer motivate. 2. Safety needs: Maslow stressed emotional as well as physical safety. The whole organization may become a safety seeking mechanism. For example, membership in a trade union is a safety need. Once these safety needs are satisfied, they no longer motivate. 3. Love needs:Maslow's use of the word love has many misleading connotations, such as sex, which is actually a physiological need. Perhaps a more appropriate word describing this level would be belongingness or affiliation. Membership in formal and informal work groups is a belongingness need. 4. Esteem needs: The esteem level represents the higher needs of humans. The needs for power, achievement, and status can be considered to be part of this level. 5. Needs for self — actualization: This level represents the culmination of all the lower, intermediate, and higher needs of humans. People, who have become self — actualized, are self-fulfilled and have realized all their potential. Self — actualization is the person's motivation to transform perception of self into reality. SELF-ACTUALIZATION ESTEEM NEEDS LOVE NEEDS SAFETY NEEDS PHYSIOLOGICAL NEEDS
  3. 2. Herzberg's Two — Factor Theory According to Herzberg, there are satisfiers and dis-satisfiers in a job for the individuals. Herzberg labeled satisfiers motivators, and he called the dissatisfiers hygiene factors. Taken together, they became known as Herzberg's two factor theory of motivation. Herzberg's theory is closely related to Maslow's need hierarchy. The hygiene factors are preventive and environmental in nature, and they are roughly equivalent to Maslow's lower — level needs. These hygiene factors prevent dissatisfaction, but they do not lead to satisfaction. By themselves, the hygiene factors do not motivate. Only the motivators motivate humans on the job. They are roughly equivalent to Maslow's higher — level needs. According to the Herzberg theory, an individual must have a job with a challenging content in order to be truly motivated. HYGIENE FACTORS Company policy and Administration Technical supervision Salary Inter-personal relations Working conditions 3.Alderfer's ERGTheory MOTIVATORS Achievement Recognition Work itself Responsibility Advancement The most recent extension of the Herzberg and, especially, the Maslow content theories of work motivation come from the work of Clayton Alderfer. He formulated a need category model that was more in line with the existing empirical evidence. Similar to Maslow and Herzberg, he does feel that there is value in categorizing needs and that here is basic distinction between lower — order needs and higher order needs. Alderfer identified three groups of core needs; Existence, Relatedness, and Growth (hence ERG theory). The existence needs are concerned with survival (physiological Well- being). The relatedness needs stress the importance of interpersonal, social relationships. The growth needs are concerned with the individual's intrinsic desire for personal development. Herzberg's Two Factors MOTIVATORS HYGIENE FACTORS Maslow's Hierarchy of Needs SELF - ACTUALIZATION ESTEEM LOVE SAFETY Alderfer's ERG Needs GROWTH RELATEDNESS EXISTENCE
  4. Alderfer is suggesting more of a continuous of needs than hierarchical levels or two factors of prepotency needs. Unlike Maslow and Herzberg,he does not contend that a lower level need has to be fulfilled before a higher level need is motivating. For example, under ERG theory the person's background or cultural environment may dictate that the relatedness needs will take precedence cover unfulfilled existence needs and that the more the growth needs are satisfied, the more they will increase in intensity. 4. McGregor's 'Theory X' and 'Theory Y' Douglas McGregor propounded two contrasting theories of human behavior which he called theory X and theory Y. Theory X: Theory X indicates the traditional approach to managerial motivation and control. It represents old stereo typed and authoritarian management style of motivation. It suggests that threats of punishment and strict control are the ways to manage people. Theory Y: Theory Y indicates that if people are properly motivated, they could really be creative. The main task of management is to unleash the potential in the employees. An employee who is properly motivated can achieve his goals by directing his own efforts and, thus, he can help in accomplishing the organizational goals. This theory emphasizes the satisfaction of need of the workers. It does not rely heavily on the use of authority as an instrument of command and control. It suggests that decentralization and delegation, job enlargement, participation and consultative management style are the ways to motivate people. Comparison of Theory X and Theory Y Theory X Based on the assumption that people are basically lazy and so shirk work People do not take initiative. They like to be Directed. People avoid responsibility whenever Possible. For getting things done, people must be Supervised strictly. Autocratic style of leadership is likely to be more effective Applicable to illiterate, unskilled and lower level workers Believes in mental sickness and so negative motivation of employees Theory Y Based on the assumption that people like work as children like play People like to take initiative. They seek self Direction. People assume responsibility gladly if Conditions are favorable. People do not require close and strict supervision for properly performing their Jobs. Democratic or participative style of Leadership is likely to be more effective. Applicable to educated and skilled employees who occupy high positions in the Organizations. Believes in mental health and so positive and Intrinsic motivation of employees.
  5. Appraisal of McGregor's contribution Douglas McGregor's Theory X and Theory Y represent extremes to draw the fencing within which the organizational man is seen to behave. No man would belong completely to either Theory X or Theory Y. He possesses the traits of both in varying degrees under different situations. Thus, these theories are important tools in understanding the behaviour of human beings and in designing the incentive schemes to motivate the employees. Neither of the two theories is fully applicable in all the situations and to all types of human beings. Therefore,the management should use an amalgamation of both the theories to motivate the different kinds of employees at different levels in the organization. 11. THE PROCES S THEORIES OF WORK MOTIVATION The content models attempted to identify what motivates people at work (for example, self actualization, responsibility, and growth); they tried to specify correlates of motivated behaviour. The process theories on the other hand, are more concerned with the cognitive concepts that go into motivation or effort and, more important, with the way they relate to one another. Now, let us discuss two important process theories of motivation. 1. Vroom's Expectancy theory of Motivation: INSTRUMENTALITIES EXPECTANCY MOTIVATIONAL FORCE F=VALANCE x EXPECTANCY OUTCOME OUTCOME 2 OUTCOME la OUTCOME OUTCOME OUTCOME 2b OUTCOME
  6. It briefly summarises the vroom model. As shown, the model is built around the concepts of Valence, Instrumentality and Expectancy and is commonly called the VIE theory. By Valence, Vroom means the strength of an individual's preference for a particular outcome. In order for the valence to be positive, the person must prefer attaining the outcome to not attaining it. A Valence of Zero occurs when the individual is indifferent towards the outcome; the valence is negative when the individual prefers not attaining the outcome to attaining it. According to Vroom, there are tow levels of outcome namely first level outcome and second level outcome. The first level outcome is instrumental in obtaining the second level outcome. Therefore, the first — level outcome is called instrumentality input in valence. For ex, assume past performance is the first level outcome and promotion is the second level outcome. Past performance is instrumental in obtaining promotion. Therefore, past performance (first — level outcome) is known as instrumentality input in our example. Another major variable in the Vroom motivational process is expectancy. Expectancy is the probability that a particular action or effort will lead to a particular first — level outcome. Expectancy is different from instrumentality input in valence. Expectancy relates efforts to first level outcome whereas instrumentality relates first — level outcome to second — level outcome. 2. The Porter — Lawler Model: Porter and Lawler start with the premise that motivation (effort or force) does not equal satisfaction and/or performance. Motivation, satisfaction, and performance are all separate variables and relate in ways different from what was traditionally assumed. EFFO RTS INTRINSIC REWARDS PERFORMA NCE EXTRINSIC REWARDS SATISFACTI ON
  7. Effort: Effort is defined as the amount of energy exerted by an employee on a given task. Performance: Effort leads to performance. But both may not be equal. Rewards and Satisfaction: According to Vroom, there are two types of rewards, viz., intrinsic rewards and extrinsic rewards. Intrinsic rewards refer to a sense of self — accomplishment and self actualization. Extrinsic rewards include working conditions and status. Both intrinsic and extrinsic rewards lead to satisfaction. 111. CONTEMPORARY THEORIES OF MOTIVATION I.THEORY 'Z' International attention is being focused on the outstanding performance of the Japanese economy and the success of management practices being adopted by Japanese firms. Interest in Japanese management has rapidly increased in America and other countries. William Ouchi made a comparative study of American and Japanese management practices. He came to the conclusion that many of the Japanese management practices can be adapted in American context. He suggested the adoption of Theory Z which represents an integration of American and Japanese management practices. Japanese Management Japanese Management is characterized by the following principles. 1. 2. 3. Emphasis on the group rather than the individual. Emphasis on human relations rather than functional relationships. Role of top management as generalists and facilitators rather than as decision makers. Comparison of Japanese and American Management styles Japanese Organizations Lifetime Employment Slow Advancement Collective Decision Making Group Responsibilities Holistic concern for Employees General career American Organizations Short — term Employment Rapid Advancement Personal Decision Making Individual Responsibilities Segmented concern for Employees Specialization in Career
  8. Features of Theory Z 1. 2. 3. 4. 5. Strong bond between the company and the employees Employees' participation Mutual trust Integrated organization — Team work Human Resources Development Appraisal of theory Z Theory Z may suffer from the following drawbacks: 1. 2. 3. 4. Provision of life time employment to employees to develop a strong bond between the organizations and its employees seems to be misplaced. An entrepreneur may not like to keep a less productive employee. Moreover, an employee may leave the organization, if he gets higher emoluments and other benefits somewhere else. Thus, theory Z fails to motivate those having higher level needs. Theory Z emphasizes a common culture in the organization. But people have different backgrounds; they differ in attitudes, values, habits, languages, religion, etc. Thus, it may not be possible to develop a common culture in the organization. Involvement of workers through participation in decision — making is very difficult. The management may dislike this idea because of Theory X assumptions about people, or the workers may be reluctant to participate in decision making because of fear of criticism and lack of proper motivation. Theory Z emphasizes organization without any structure. But in a large organization,the absence of any structure may bring about chaos in the organization as nobody will know who is responsible to whom. 2. EQUITY THEORY Many employees are concerned not only with satisfying their own needs but also compare what others receive. They feel satisfied or dissatisfied with comparative observations of their friends, neighbours and colleagues. The equity theory was developed on this hypothesis. Employees feel they are lacking with the comparison of others possessions. This lacking tension motivates people to work hard to reach the levels of others. J. Stacy Adams has propounded that this negative tension provides motivation to employees to exert themselves. People are motivated by the inequity they note with others.
  9. Person 's Outcomes Person 's Inputs Other's Outcomes Other's Inputs Inequity due to being under rewarded Person 's Outcomes Person 's Inputs Person 's Outcomes Person 's Inputs Equity Other's Outcomes Other's Inputs Other's Outcomes Other's Inputs Inequity due to being over rewarded
  10. Inputs refer to education, seniority, work experience, capacity to contribute, commitment, efforts and job performance. Outcomes refer to direct pay, bonus, awards, rewards, fringe benefits, recognition and socio — psychological satisfaction. The equity theory is a cognitive based motivation theory. Perception plays a great role in motivating a person. If a person is getting less than another, inequity exists because of being under rewarded. He tries to improve himself so that he can reach the level of others. In case both the ratios are equal, equity exists and the person is at a constant level. He is not motivated on this ground. On the other hand, if a person's outcome as compared to his input is more than others in terms of his inputs, the person is over rewarded and tries hard to remain higher than those of others. 3. THEACHIEVEMENT MOTIVATION Characteristics of high achievers: David C McClelland, a Harvard psychologist is most closely associated with study of the achievement motive. Beginning in 1947, McClelland thoroughly investigated and wrote about all aspects of n(Ach)(achievement). Out of this extensive research has emerged aclearprofile of the characteristics of the high achiever. Verysimply,theachievementmotivecanbeexpressedasadesiretoperforminterms of a standard of excellence or to be successful in competitive situations. The specific characteristics of a high achiever can be summarized as follows: 1. Moderate risk taking: Low achievers take either a high or low risk, and high achievers take a moderate risk. 2. Need for immediate feedback: People with high n Ach prefer activities which provide immediate and precise feedback information on how they are progressing towards a goal. High achievers tend to be more satisfied in jobs or careers, such as sales or certain managerial positions, in which they are frequently evaluated by specific performance criteria. On the other end of the scale, high achievers tend to be frustrated in research and development or teaching, where feedback on performance is very imprecise, vague. 3. Satisfaction with accomplishment perse: High achievers find accomplishing a task intrinsically satisfying in and of itself or they do not expect or necessarily want the accompanying material rewards. A good illustration of this characteristic involves money, but not for the usual reasons of wanting money for its own sake or for the material benefits that it can buy. Rather, high n Ach people look at money as a form of feedback or measurement of how they are doing. Given the choice between a simple task with a good payoff for accomplishment, and a more difficult task with a lesser payoff, other things being equal, high achievers generally choose the latter. 4. Preoccupation with the tasks: Once high achievers select a goal, they tend to be totally preoccupied with the task until it is successfully completed. They cannot stand to leave a job half- finished and are not satisfied with themselves until they have given their maximum efforts. High achievers often strike others as being unfriendly and as "loners". They tend to be very realistic about their abilities and do not allow other people to get in the way of their goal accomplishments. Obviously, with this type of approach, high achievers do not always get along well with other people. The four characteristics noted above have evolved out of McClelland's basic research over the years. More recently, Jay Hall and his colleagues have reported the results of a comprehensive
  11. study that compared the managerial styles and methods of 16,000 high medium low achieving managers. The following are some of their major finding. 1. 2. 3. 4. 5. Low n Ach mangers are pessimistic and have a basic distrust of the intent and competence of their subordinates. High n Ach managers are optimistic and view their subordinates favourably. High n ach managers are concerned with aspects of the job that provide personal fulfillment; they talk to their subordinates about these things and attempt to structure the job so that their subordinates can receive such fulfillment. On the other hand, moderate achievers are concerned mainly with status symbols, and low achievers with job security, and both try to motivate their subordinates the same way. High n Ach managers readily use participative methods with their subordinates, while moderate and low n Ach managers do not tend to involve their subordinates in the decision making process. High n Ach managers tend to be very open in their interactions and communications with others (both bosses and subordinates), while moderate achievers are preoccupied with their own ideas and feelings and low achievers tend to avoid interacting and communicating altogether. High achievers show concern for both people and production, whereas moderate achievers show high concern for production and low concern for people, and low achievers are concerned mainly with self-preservation and do not seem to care about people or production.