Module - II : Motivation

Definition, motivation theories:- Marlow_s Need

hierarchy theory, Herybery theory, theory X
theory Y, Equity theory. Financial and Non
Financial motivation.

MOTIVATION

In an organisation, management tries to
coordinate various Iactors oI production to achieve
organisational goals. The eIIiciency oI non human
Iactors like materials, machines etc, depends on the
type oI technology being used and also the
perIormance level oI human Iactors used. Thus to
make total Iactors eIIicient and eIIective, one has to
improve the perIormance level oI human beings in the
organisation.

This is determined by two important Iactors.-- Ability
and Motivation. The challenge Iaced by a modern
manager now a days, is how to motivate employees to
display behaviour consistent with organisational
goals; such as reducing cost, increasing revenues and
satisIying customers. Motivation is a challenge Ior
managers, because it requires to understand 'how an
employee thinks?'. Motivation arises Irom within
employees, and motivational Iactors diIIer Ior each
individual within an organisation. When managers
analyse their workers, they always discover that some
people invariably out perIorm others oI equal skill ,
eIIiciency, and ability.

A close scrutiny oIten reveals that in some situations a
person with outstanding talents is consistently out
perIormed by some one having lesser talents. The
reason seems to be that the latter employees
voluntarily put more eIIort, try harder, in order to
accomplish their goals. These hard workers are oIten
described as motivated workers.

Since people are the most important resource oI an
organisation, their behaviour has to be studied,
analysed, and interpreted properly. Among behaviour
processes, motivation is generally treated as one oI
strategic importance. It is because lack oI motivation
results in ineIIective perIormance and high levels oI
absenteeism and labour turnover.

DeIinition.
The tem 'Motivation' has come Irom motives, which
are the expression oI human needs by a human being.
The activities oI human beings are caused; and behind
every action there is a particular motive or need. The
need can be deIined as Ieeling oI lackness Ior some
thing, and human being tries to get satisIy their needs.
Motivation is the process oI inducing persons to
experience needs Ior certain desired behaviour so that
the organisational eIIiciency is achieved. Scott has
deIined motivation as " a process oI stimulating
people to action to accomplish desired goals".

McFarland says " the concept oI motivation is mainly
psychological. It relates to those Iorces operating
within the individual employees or subordinates
which compel them to act ot not to act in certain
ways."

Motivation is a process, which inspires the human
eIIorts oI an organisation to perIorm their duties in the
best possible manner so that the pre- determined
objectives may be achieved.

THEORIES OF MOTIVATION.

From the very beginning, when human organisations
were established, people hard tried to Iind out the
answer to what motivated people maximum. Since
various people have been engaged in Iinding out
the motivational Iactors, their approaches have
diIIered resulting in to a number oI theories
concerning motivation.

MASLOW's NEED HIERARCHY THEORY.
Psychologist, Abraham Maslow has developed
the theory oI the hierarchy oI needs in 1943.
According to him, there seems to be a hierarchy in to
which human needs are arranged. The needs are
ranked in a hierarchy in which one need is important
than others until it is satisIied. Once the most
important need is satisIied, the next high need
becomes important, and a satisIied need can no longer
motivate human behaviour. According to Maslow, the
needs are satisIied in the Iollowing sequence.

1. Physiological Needs.
These are shown at the top oI the hierarchy because
they tend to have the highest strength until they
are reasonably satisIied. The primary needs consist oI
water, air, Iood, avoidance oI pain etc and human
beings Iirst try to acquire necessities Ior survival. The
manager attempts to satisIy these needs in the
workplace primarily through salary and by eliminating
threats to physical saIety.
2. SaIety and Security Needs.
When physiological needs are satisIied, saIety
needs get most important priority as motivator. such
needs get expression through employee unions,
permanent job, and desires Ior insurance and
retirement programmes. Arbitrary management
actions such as Iavouritism, or discrimination and
unpredictable application oI policies oIten become
powerIul threats to satisIy needs oI any employee at
any level.

3. Social Needs.
At this stage people desire Iriendship, and a place in a
group. When social needs become dormant, person
will strive Ior meaningIul relations with others. II
the opportunity oI association with the other people is
reduced, men oIten take vigorous action against the
obstacles to social intercourse. In the organisation,
workers Iorm inIormal group environment.

4. Esteem needs.
These are concerned with selI respect, selI conIidence,
a Ieeling oI personal worth, Ieeling oI being unique
and recognition. satisIaction oI these needs produces
Ieeling oI selI conIidence, prestige, power and
control. However, unlike lower needs, these are rarely
Iully satisIied. Most oI the organisations oIIer Iew
opportunities Ior the satisIaction oI these needs at
lower levels.

5. SelI Actualisation Needs.
SelI actualisation is the need to maximise ones
abilities and potential, whatever it may be. This is
necessary Ior continued selI development. As Maslow
has put it- "this need might be phrased as the desire to
become more and more what one is, to become
everything that one is capable oI becoming". Maslows
Need hierarchy theory has been highly appreciated by
the managers because it oIIers some useIul ideas Ior
helping managers think about motivating their
employees. As a result oI their Iamiliarity with the
model, the managers are more likely to identiIy
employee needs, recognise that they may be diIIerent
across employees, oIIer satisIaction Ior the particular
needs, and realise that giving more oI the same reward
may have diminishing impact on motivation.

HERZBERG's TWO FACTOR THEORY
( Motivation Hygiene Theory)
This theory is developed by Frederick Herzberg and
his associates, aIter conducting a series oI interviews
with 200 engineers and accountants, Iocusing on
Iactors considered to be important as sources oI
motivation. During the interview they were asked to
describe a Iew job experiences in which they Ielt
'exceptionally good' and 'exceptionally' bad. From the
replies received, Herzberg concluded that there were
two categories oI needs, essentially independent oI
each other aIIecting the behaviour in diIIerent ways.
There are some job conditions which operates
primarily to dissatisIy employees when the conditions
are absent, but their presence doesn`t motivate them in
a strong way.

Another set oI conditions operates primarily to build
strong motivation and high job satisIaction, but their
absence rarely proves strongly dissatisIying. The Iirst
job conditions are called as 'maintenance' or 'hygiene'
Iactors and the second set as ' motivational Iactors'.
Hygiene or Maintenance Iactors. These Iactors are the
primary cause oI unhappiness on the job. When the
employer is unable to provide enough oI these Iactors
to its employees, there will be job dissatisIaction.

However, iI they are provided in suIIicient quantity,
they will not necessarily act as motivators. They are
not parts oI jobs, but they are related to conditions
under which a job is perIormed. These Iactors are
necessary to maintain a reasonable level oI
satisIaction in employees. Some oI these Iactors are -
company policies and administration, Quality oI
supervision, interpersonal relationships, job security,
working conditions, employee beneIits etc.

Motivational Factors.

These Iactors are capable oI having a positive eIIect
on job satisIaction, oIten resulting in an increase
in ones total output. These are achievements,
recognition, advancement, work itselI, possibility oI
growth, and responsibility. An increase in these
Iactors will satisIy the employees, however, any
decrease will not aIIect their level oI satisIaction.
Herzberg's model is based on the Iact that most
oI the people are able to satisIy their lowerneeds
considerably. As such they are not motivated by any
Iurther addition oI satisIaction oI these needs.
Herzberg's model has been applied in the industry and
has given several new insights. One oI them is job
enrichment.

McCLELLANDS NEEDS ACHIEVEMENT
THEORY.
Shortly aIter the second world war, David McClelland
oI Harvard University developed achievement theory
which places great emphasis on needs and individual
diIIerence. He has identiIied three types oI basic
motivating needs. They are need Ior power, need Ior
aIIiliation and need Ior achievement. McClelland
believes that each person has a need Ior all the 3
needs, but people diIIer in the degree to which various
needs motivate their behaviour.

Power motive.
The ability to induce or inIluence behaviour is power.
McClelland Iound that people with a higher power
need have a great concern Ior exercising inIluencing
and control. They derive satisIaction Irom being in
positions to inIluence and control. Such individuals
are generally seeking positions oI leadership, they
involve in conversation, and they are IorceIul. Eg.
Supervisors, Military oIIicers etc.

AIIiliation Motive.
Since people are social animals, most individuals
like to interact and be with others in situations where
they Ieel they belong and are accepted. McClelland
has suggested that people with high need Ior
aIIiliation usually derive pleasure Irom being loved
and tend to avoid the pain oI being rejected. They are
concerned with maintaining pleasant social
relationships, enjoying a sense oI intimacy and
understanding. Eg. Customer relations executives.


Achievement Motive.
Some people have an intense desire to achieve. The
need Ior achievement is a distinct human motive that
can be distinguished Irom other needs. McClelland
has identiIied Iour basic characteristics oI high
achievers. They take moderate risk, desire immediate
Ieed back, Iind accomplishing a task satisIying and
they tend to be totally pre-occupied with the task, until
it is successIully completed. E.g. Sales managers with
Challenging quotas.

McClelland believes that the need Ior achievement
can be learned, and economically backward cultures
can be changed by it. Although the people with a high
need Ior achievement are oIten wealthy, their wealth
comes Irom their ability to achieve goals. According
to the research conducted by McClelland, managers
show high on achievement and power and low on
aIIiliation. Achievement motivated people can be the
backbone oI most organizations because they progress
much Iaster.

THEORY 'X' & THEORY 'Y'
The management actions oI directing human beings in
the organisation, according to McGregor, involves
certain assumptions and generalizations relating to
human behaviour and nature. The basic assumptions
about human behaviour may diIIer considerably,
because oI the complexity oI Iactors inIluencing this
behaviour. McGregor has characterized these
assumptions in two extreme points.


Theory X and Theory Y.

Theory X.
This is the traditional theory oI human behaviour. In
this theory McGregor, has certain assumptions about
human behaviour.


1. Management is responsible Ior organising the
elements oI productive enterprise. - Money,
materials, people,- in the interest oI economic needs.
2. With respect to people, this is a process oI directing
their eIIorts, motivating them, controlling actions,
and modiIying their behaviour.
3. Without active intervention by the management,
people would be passive to organisational needs.
They must be persuaded, rewarded, punished,
controlled, and directed.
4. The average man works as little as possible.
5. He lacks ambition, dislikes responsibility, preIers to
be led.

These assumptions about human nature are
negative in their approach; however much
organizational process has developed on these.
Mangers having these views attempt to control and
closely supervise their employees. These managers
Ieel that external control is clearly appropriate Ior
dealing with unreliable and irresponsible persons.
AIter describing these views, McGregor questioned
these views and concluded that Theory X assumptions
when universally applied, are oIten inaccurate and that
management approaches that develop Irom these
assumptions may Iail to motivate many individuals.
Management by direction and control may not
succeed, because it doesn`t motivate people whose
physiological and saIety needs are reasonably
satisIied.

Theory Y
McGregor Ieels that management needed practice
based on more accurate understanding oI human
nature and motivation. Because oI these Ieelings he
developed an alternative theory called Theory Y.
The assumptions oI theory Y are:-
1. The physical and mental eIIort in work is natural as
play or rest. The average human being does not
dislike work.
2. Man will exercise selI direction and selI control in
the service oI objectives to which he is committed.
3. The average human being learns to accept and to
seek responsibility.
4. The capacity to exercise high degree oI imagination
and creativity is widely distributed in population.
5. The intellectual potentialities oI the average human
being are only partially utilised.

The assumptions oI theory Y suggest a new approach
in management. Theory Y organisations have united
work Iorce whose goals parallel organisational goals.
In such organisations, there is high productivity and
people come to work gladly.

Both theories have certain assumptions about human
nature. In Iact they are the reverse side oI a coin.


THEORY Z
Theory Z describes the Japanese management
practices and how these can be adopted to the
environment oI the United States and other countries.
Ouchi; who has given Theory Z, has made a
comparative study oI American and Japanese
management practices and has recommended that
many management practices can be adopted in
American context.

Features of Theory Z
1.Trust.
Trust is the most important Ieature oI this theory
and by trust Ouchi means trust between employees,
supervisors, work groups, unions, management and
government. According to him trust, integrity and
openness are closely related and these are essential
ingredients oI eIIective organisations. When an
organisation relies o these principles, employees tend
to cooperate to the maximum extent.

2.Strong bond between organisation and employees.
Theory Z suggests strong bond between organisation
and employees. Ouchi has suggested certain methods
Ior this, including the liIe time employment and iI
there is a situation oI lay oII, it should not be resorted
to and owners can share the resultant loss by
accepting less proIit or even moderate loss Ior a short
period oI time. A career planning Ior employees
should be prepared so that every employee is suitably
placed.

3.Employee involvement.
Employee involvement is an important Iactor and this
comes through meaningIul participation. Any decision
aIIecting employees in any way should be taken
jointly and iI there is any decision which the
management wants to take individually, the
employees should be inIormed about this so that they
do not Ieel ignored.


4.No Iormal structure.
Theory Z provides no Iormal structure Ior the
organisation. Instead it must be a perIect teamwork
with co operation along with sharing inIormation,
resources and plans. It places emphasis on rotational
aspect oI employee placement which provides
opportunities to him to understand how his work
aIIects others or is aIIected by others. This enables
him to develop group spirit.

5.Coordination oI human beings.
The leaders role is to coordinate people and not
developing peoples skills and also the creation oI new
structures, incentives and new philosophy oI
management. To develop trust, there should be a
complete openness in the relationships.


ERG Theory of Motivation.
In 1969, Clayton AlderIer's revision oI Abraham
Maslow's Hierarchy oI Needs, called the ERG Theory
appeared in Psychological Review in an article titled
"An Empirical Test oI a New Theory oI Human
Need." AlderIer's contribution to organizational
behavior was the ERG theory (Existence, Relatedness,
and Growth), and was created to align Maslow's
motivation theory more closely with empirical
research. The letters # represent these three levels
oI needs:

Existence reIers to our concern with basic material
existence motivators.
Relatedness reIers to the motivation we have Ior
maintaining interpersonal relationships.
Growth reIers to an intrinsic desire Ior personal
development.

AlderIers ERG theory demonstrates that more than
one need may motivate at the same time. A lower
motivator need not be substantially satisIied beIore
one can move onto higher motivators. The ERG
theory acknowledges that iI a higher-order need is
Irustrated, an individual may regress to increase the
satisIaction oI a lower-order need which appears
easier to satisIy. This is known as the frustration-
regression5rinci5e.

Financial and Non Financial Motivation.

When we take human beings in organizations Ior
analysing motivational pattern, we identiIy two
groups oI individuals. Managers and workers. Some
oI the studies have Iocussed on the motivation oI
managers and some other, on workers. An analysis oI
these studies reveals that there is wide scope oI
variability in the Iactors oI motivation. Various Iactors
oI motivation can be grouped in to two broad
categories.
Financial and Non Financial.


FINANCIAL FACTORS.
There is hardly any doubt that money is an important
motivator. Money not only satisIies basic needs, but
also provide social position and power. Money has its
special signiIicance in the motivational scheme. It can
provide recognition Ior high perIormance and lead to
improved goal settings. As a medium oI exchange,
money is the thing by which employee can buy need
satisIying goods and services. It will be a powerIul
motivator Ior a person who is anxious about lack oI
money. Financial Iactors oI motivation can be
grouped in to two categories.


Individual and collective.
1. Individual Financial Motivators .

This group includes all such plans which induce
an individual to achieve higher output to earn higher
Iinancial rewards. Piece rate wages, Taylors
diIIerential Piece rate system, Halseys eIIiciency plan
etc are examples oI such incentives. The basic
assumption behind this is that an individual will be
motivated Ior higher output to earn more money,
which satisIies his need.

2. Collective Financial Motivators .
This group oI motivators tries to motivate individuals
collectively. The basic idea oI these incentives is that
the same as in the case oI individual Iinancial
motivators, however the employees are given these
collectively. E.g. Bonus, ProIit sharing, pension
plan etc.



NON FINANCIAL MOTIVATORS.
People at higher level oI managerial hierarchy
give more importance to socio, psychological needs,
which can`t be satisIied by money alone. Thus
management; in addition to Iinancial incentives,
provides non-Iinancial incentives to motivate people
in the organisation. These provide psychological and
emotional satisIaction rather than Iinancial
satisIaction. The non-Iinancial incentives can be
grouped in to three parts.

A. INDIVIDUAL NON FINANCIAL FACTORS .
These Iactors motivate people on individual
basis. They are:-
1 . Status .
In general terms, it is the ranking oI the people in the
society. In an organisation, status means ranking oI
positions, rights and duties in the Iormal organisation
structure. It is an instrument oI motivation, because
status is extremely important Ior most oI the people.
2. Promotion.
It is the movement to a position in
which responsibilities and prestige are increased.
Promotion is a good motivator Ior all employees.
Since it depends upon capabilities and good
perIormance, people will try Ior that, iI chances oI
promotion exist.
3. Responsibility.
Most oI the people preIer challenging and responsible
jobs. II the job is a responsible one`, it satisIies
peoples natural characteristics and esteem needs, and
they put more eIIorts Ior completing the work.
4. Making the job interesting.
The work can be made enjoyable and pleasant, iI it is
so designed that it allows the employees to satisIy
their natural instincts. This creates interest in the work
and employees take it as natural as play.
5.Recognition oI work .
Most people Ieel that what they do should be
recognised by others. Recognition means
acknowledgement with a show oI appreciation. When
such appreciation is given to employees, they Ieel
motivated to perIorm work at higher level.
6. Job security.
Most oI the employees preIer a secure job.
They want certain stability about Iuture income and
work, so that they do not Ieel worried on these
aspects. In India this aspect is more important
considering the inadequate job opportunities.
B. COLLECTIVE NON FINANCIAL FACTORS.
People may be motivated in groups also. They
perIorm their duties in groups and are aIIected by the
group. II the group in general is eIIective, an
individual tends to become eIIicient. Some oI the
collective non Iinancial Iactors are :-
1. Social Importance oI work.
People generally preIer a work, which is
socially acceptable. II society gives importance and
praise to the work, people like to perIorm. Some times
people preIer a job oI high social importance, event
though the Iinancial compensation would be less.
2 . Team spirit.
The management should encourage team spirit, i.e., to
work in co-operation and co-ordination. II there is
team spirit among the employees, they will try to put
in maximum eIIort to achieve the objective.
3 . Compensation .
Some times competitions are organised between
diIIerent individuals or diIIerent groups in an
organisation. There may be a case oI selI competition,
where an individual tries to improve his earlier
perIormance. When a person perIorms well because oI
such competition, he should be given some advantage,
not necessarily in terms oI money, but it may be in
terms oI recognition, prestige, praise etc.
4 . InIormal Groups .
When people work together, they develop some
sort oI aIIiliation among themselves. These
relationships are not oIIicially prescribed, but created
on the basis oI some Iactors like personality and other
social Iactors. Creation oI these groups provide social
satisIaction to employees. Management should
provide the way Ior creation oI such inIormal groups;
so long as they are not against organisational
eIIiciency.

C. INSTITUTIONAL INCENTIVES.
These are related with the environmental Iactors in the
organisation.
1. Human relations in an industry .
This is related with the policy to be adopted in the
organisation to develop a sense oI belongingness in
the employees, improve their eIIiciency, and treat
them as human beings. The emphasis is on providing
greater psychological and physiological satisIaction to
the employees.
2. Participation.
Participation oI subordinates in the decision making
process will motivate an employee to take proper and
prompt action on decision implementation. This will
also increase his responsibility.
3. Communication .
Communication is the process oI passing ideas Iro one
person or groups to another person or groups. A Iree
and adequate Ilow oI communication is necessary Ior
successIul organisational Iunctioning. This provides
satisIaction to workers, as they want to be inIormed
properly about the matters concerning their interest.
4. Discipline .
The quality oI an organisations climate is reIlected in
the discipline oI its employees. Discipline is the
employees selI control to meet organisation standards
and objectives. Managements maintain discipline by
applying standards in a consistent, Iair and Ilexible
manner. Discipline has a positive role in satisIying
employees by providing them proper atmosphere.
In an organisation all these Iactors should be used Ior
motivating the employees. Previously there was
an assumption that higher money would bring higher
productivity. But now a day`s social and
psychological satisIaction is getting more importance.
5. Management by objectives.
6.Job SatisIaction
7.Job enlargement
8. Job enrichment.