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1.1

Employee Motivation

Introduction
An issue which usually generates a great deal of attention from most managers,
administrators and those involved in Human Resources Management is the issue of
how to successfully motivate employee. While it is true that aspects like staff
recruitment, controlling, managing, leading, and many more are of great importance
to the success of an organization, Employee Motivation is generally considered a core
element in running a successful business.
In the organizational setting the word Motivation is used to describe the drive that
impels an individual to work. A truly motivated person is one who wants to work
.Both employees and employers are interested in understanding motivation
if employees know what strengthens and what weakens their motivation, they can
often perform more effectively to find more satisfaction in their job. Employers want
to know what motivates their employees so that they can get them to work harder. The
concept of motivation implies that people choose the path of action they follow. When
behavioral scientists use the word motivation, they think of its something steaming
from within the person technically, the term motivation has its origin in the Latin
word mover which means to move. Thus the word motivation stands for
movement. If a manager truly understands his subordinates motivation, he can
channel their inner state towards command goals, i.e., goals, shared by both the
individual and the organization. It is a well known fact that human beings have great
potential but they do not use it fully, when motivation is absent. Motivation factor are
those which make people give more than a fair days work and that is usually only
about sixty-five percent of a persons capacity .Obviously , every manager should be
releasing hundred percent of an individuals to maximize performance for achieving
organizational goals and at the same to enable the individual to develop his potential
and gain satisfaction. Thus every manager should have both interest and concern
about how to enable people to perform task willingly and to the best of their ability.
At one time, employees were considered just another input into the production

of goods and services. What perhaps changed this way of thinking about employees
was research, referred to as the Hawthorne Studies, conducted by Elton Mayo
from1924 to 1932 This study found employees are not motivated solely by money and
employee behavior is linked to their attitudes.
The Hawthorne Studies began the human relations approach to management, whereby
the needs and motivation of employees become the primary focus of managers.

1.2

Definition of Motivation

Motivation is a process that starts with a physiological or psychological

deficiency or need that activates behavior or a drive that aimed at a goal or an
incentive.
"The only way to get people to like working hard is to motivate them. Today,
people must understand why they're working hard. Every individual in an
organization is motivated by something different." - Rick Pitino
Employee motivation is a reflection of the level of energy, commitment, and
creativity that a company's workers bring to their jobs.
"Psychological forces that determine the direction of a person's behavior in an
organization, a person's level of effort and a person's level of persistence."- G.
Jones and J. George from the book "Contemporary Management."

Basics about Motivation

1. Motivating employees starts with motivating yourself its amazing how, if you
hate your job, it seems like everyone else does, too. If you are very stressed
out, it seems like everyone else is, too. Enthusiasm is contagious. If you're
enthusiastic about your job, it's much easier for others to be, too. Also,
if youre doing a good job of taking care of yourself and your own job, you'll
have much clearer perspective on how others are doing in theirs. A great place
to start learning about motivation is to start understanding your own
motivations. The key to helping to motivate your employees is to understand
what motivates them. So what motivates you? Consider, for example, time
with family, recognition, a job well done, service, learning, etc. How your job
is configured to support your own motivations? What can you do to better
motivate yourself?
2. Always work to align goals of the organization with goals of employees as
mentioned above, employees can be all fired up about their work and be
working very hard. However, if the results of their work don't contribute to the
goals of the organization, then the organization is not any better off than if the
employees were sitting on their hands -- maybe worse off! Therefore, it's

critical that managers and supervisors know what they want from their
employees. These preferences should be worded in terms of goals for the
organization. Identifying the goals for the organization is usually done during
strategic planning. Whatever steps you take to support the motivation of your
employees (various steps are suggested below), ensure that employees have
strong input to identifying their goals and that these goals are aligned with
goals of the organization. (Goals should be worded to be SMARTER".
3. Key to supporting the motivation of your employees understands what
motivates each of them each person is motivated by different things. Whatever
steps you take to support the motivation of your employees, they should first
include finding out what it is that really motivates each of your employees.
You can find this out by asking them, listening to them and observing them.
4. Recognize that supporting employee motivation is a process, not at ask
Organizations change all the time, as do people. Indeed, it is an ongoing
process to sustain an environment where each employee can strongly motivate
themselves. If you look at sustaining employee motivation as an ongoing
process, then you'll be much more fulfilled and motivated yourself.
5. Support employee motivation by using organizational systems (for example,
policies and procedures)--don't just count on good intentions dont just count
on cultivating strong interpersonal relationships with employees to help
motivate them. The nature of these relationships can change greatly, for
example, during times of stress. Instead, use reliable and comprehensive
systems in the workplace to help motivate employees.
For example, establish compensation systems, employee performance systems,
organizational policies and procedures, etc., to support employee motivation. Also,
establishing various systems and structures helps ensure clear understanding and
equitable treatment of employees.

1.3 Importance of Motivation

Motivation is a very important for an organization because of the following benefits it
provides: Puts human resources into action
Every concern requires physical, financial and human resources to accomplish the
goals. It is through motivation that the human resources can be utilized by making full
use of it. This can be done by building willingness in employees to work. This will
help the enterprise in securing best possible utilization of resources.
Improves level of efficiency of employees

The level of a subordinate or a employee does not only depend upon his qualifications
and abilities. For getting best of his work performance, the gap between ability and
willingness has to be filled which helps in improving the level of performance of
subordinates. This will result into Increase in productivity,
Reducing cost of operations, and
Improving overall efficiency.
Leads to achievement of organizational goals
The goals of an enterprise can be achieved only when the following factors take place
:

There is best possible utilization of resources,

There is a co-operative work environment,
The employees are goal-directed and they act in a purposive manner,
Goals can be achieved if co-ordination and co-operation takes place
simultaneously which can be effectively done through motivation.

Builds friendly relationship

Motivation is an important factor which brings employees satisfaction. This can be
done by keeping into mind and framing an incentive plan for the benefit of the
employees. This could initiate the following things:
Monetary and non-monetary incentives,
Promotion opportunities for employees,
Disincentives for inefficient employees.
In order to build a cordial, friendly atmosphere in a concern, the above steps should
be taken by a manager. This would help in:
Effective co-operation which brings stability,
Industrial dispute and unrest in employees will reduce,
The employees will be adaptable to the changes and there will be no resistance
to the change,
This will help in providing a smooth and sound concern in which individual
interests will coincide with the organizational interests,
This will result in profit maximization through increased productivity.
Leads to stability of work force
Stability of workforce is very important from the point of view of reputation and
goodwill of a concern. The employees can remain loyal to the enterprise only when
they have a feeling of participation in the management. The skills and efficiency of
employees will always be of advantage to employees as well as employees. This will
lead to a good public image in the market which will attract competent and qualified

people into a concern. As it is said, Old is gold which suffices with the role of
motivation here, the older the people, more the experience and their adjustment into a
concern which can be of benefit to the enterprise.

1.4

What motivates employees?

Every person has a different reason for going to work. These reasons are as individual
as whichever person you may ask. But all of the reasons for working share a common
thread. We all obtain something from work we need.
There is much discussion about the value of extrinsic motivation (monetary and other
material rewards) versus intrinsic motivation where people re driven by whats inside
them. not by the trappings of success.
Whereas I recognize how critical extrinsic motivation iswe all need to be rewarded
fairly for the job that we do-in my experience the most effective factors relating to
employee motivation are related to intrinsic motivation:
1. Empowerment: Feeling trusted and empowered is a tremendous motivator.
2. Growth: Feeling that they are growing and developing personally
3. Inclusion: To belong is a fundamental need, whether as a member of a family,
peer group, network, team or company. Its human nature to want to be on the inside,
not the outside.
4. Purpose: Today people care more about what happens tomorrow, and want to
contribute to ensuring the future of our children, and the health of our communities
and planet.
5. Trust: the fabric that holds it all together and makes it real.

Framework of motivation
The framework comprises six steps:1) Motivation process begins with the individuals needs. Needs are telt
deprivations which the individual experiences at a given time and act as
energizers. These needs may be psychological (e.g., the needs for recognition),
physiological (e.g., the needs for water, air or foods) or social (e.g., the needs
for friendship).
2) Motivation is goal directed.
3) A goal is a specific result that the individual wants to achieve. An employees
goal are often driving forces and accomplishing those goals can significantly
reduce needs.
4) Promotions and raises are two of the ways that organizations seek to maintain
desirable behavior. They are signals to employees that their needs for
advancement and recognition and their behaviors are appropriate.
5) Once the employee have received either rewards or punishments.

6) They reassess their needs.

The Role of Motivation:

Why do we need motivated employees?
The answer is survival. Motivated employees are needed in our rapidly changing
workplaces. Motivated employees help organizations survive. Motivated employees
are more productive. To be effective, managers need to understand what motivates
employees within the context of the roles they perform. Of all the functions a manager
performs, motivating employees is arguably the most complex. This is due, in part, to
the fact that what motivates employees changes constantly. For example, research
suggests that as employees' income increases, money becomes less of a motivator
(Kovach, 1987). Also, as employees get older, interesting work becomes more of a
motivator.

Mechanism of motivation
Motivation is the process that starts with physiological or psychological deficiency or
need that activate behavior or a drive that is aimed at a goal or incentive.
The following diagram depicts the motivation process.
Mechanism of Motivation
Needs Drives Goal
Deprivation Deprivation Reduction
With of Drives
Direction
Thus, the key to understanding motivation lies in the meaning of, and relationship
between needs, drives and goals Needs: Needs are created whenever there is a
physiological or psychological imbalance For example: A need exists when cells in
the body are deprived of food and water or when the personality is deprived of other
people who serve friends or companions. Although psychological may be based on a
deficiency, sometimes they are not. For instant, and individuals with a strong need to
get ahead may have a history of consistent success Drives: Drives (Or motives) are
set up to alleviate needs. Psychological needs can be simply defined as a deficiency
with direction. Physiological or psychological drives are action oriented and provide
energizing thrust towards reaching an incentive or goals. They are at the very heart of
the motivational process. The needs for food and water are translated into hunger and
thrust drives, and the need for friend becomes a drives affiliation. Thus, drive is a
psychological state which moves an individual satisfying need Goals: At the end of
the motivational cycle is the goal or incentive. It is anything that wills that will

alleviate a need and reduce a drive. Thus, attaining a goal will tend to restore
physiological or psychological balance and will reduce or cut off the drive. Eating
food, drinking water and obtaining friends will tend to restore the balance and reduce
the corresponding drives food, water and friends are the incentive are the goals in
this example.

1.5

Types of Motivation

There are many types of motivation.

Motivational techniques have been experienced by every person from birth. We learn
behavior through motivation. We live our whole lives because of motivation. The
question that remains however is this: What motivation should a person have? This is
important because our motivation decides our behavior. Some types of motivation are
more effective than others. However, the perfect motivation for you can only be
decided by one person: YOU .
Why do people do what they do? Why do we go on every day, living our lives and
trying to find justification for our existence? Some people think that they can find
purpose in the things that motivate them. Others just see the motivation and react
automatically.

There is no one thing that motivates people to perform certain actions. People are
different, so it follows that their motivations have to be different. Here are some types
of motivation :
Achievement
This is the motivation of a person to attain goals. The longing for achievement is
inherent in every man, but not all persons look to achievement as their motivation.
They are motivated by a goal. In order to attain that goal, they are willing to go as far
as possible. The complexity of the goal is determined by a person's perception.
To us, the terms "simple" and "complex" are purely relative. What one person thinks
is an easy goal to accomplish may seem to be impossible to another person. However,
if your motivation is achievement, you will find that your goals will grow increasingly
complex as time goes by
.

 Socialization
Some people consider socialization to be their main motivation for actions. This is
especially evident in the situation of peer pressure. Some people are willing to do
anything to be treated as an equal within a group structure. The idea of being accepted
among a group of people is their motivation for doing certain things.
Incentive motivation
This motivation involves rewards. People who believe that they will receive rewards
for doing something are motivated to do everything they can to reach a certain goal.
While achievement motivation is focused on the goal itself, incentive motivation is
driven by the fact that the goal will give people benefits. Incentive motivation is used
in companies through bonuses and other types of compensation for additional work.
By offering incentives, companies hope to raise productivity and motivate their
employees to work harder
.
Fear motivation
When incentives do not work, people often turn to fear and punishment as the next
tools. Fear motivation involves pointing out various consequences if someone does
not follow a set of prescribed behavior. This is often seen in companies as working
hand-in-hand with incentive motivation. Workers are often faced with a reward and
punishment system, wherein they are given incentives if they accomplish a certain
goal, but they are given punishments when they disobey certain policies.
Change motivationSometimes people do things just to bring about changes within their immediate
environment. Change motivation is often the cause of true progress. People just
become tired of how things are and thus, think of ways to improve it.
Natural MotivationsMotivation is the most common type of motivation and happens the most often. It is
the motivation people get when naturally motivated.

 Fear motivationsFear Motivation happens often within the workforce when under pressure to complete
a task.
Booster motivationsBooster Motivations is normally self driven to overcome a task you have set yourself.

1.6

Methods of Motivation

There are as many different methods of motivating employees today as there are
companies operating in the global business environment. Still, some strategies are
prevalent across all organizations striving to improve employee motivation. The best
employee motivation efforts will focus on what the employees deem to be important.
It may be that employees within the same department of the same organization will
have different motivators. Many organizations today find that flexibility in job design
and reward systems has resulted in employees' increased longevity with the company,
improved productivity, and better morale.

Empowerment - Giving employees more responsibility and decision-making

authority increases their realm of control over the tasks for which they are held
responsible and better equips them to carry out those tasks. As a result,
feelings of frustration arising from being held accountable for something one
does not have the resources to carry out are diminished. Energy is diverted
from self-preservation to improved task accomplishment.
Creativity And Innovation - At many companies, employees with creative
ideas do not express them to management for fear that their input will be
ignored or ridiculed. Company approval and toeing the company line have
become so ingrained in some working environments that both the employee
and the organization suffer. When the power to create in the organization is
pushed down from the top to line personnel, employees who know a job,
product, or service best are given the opportunity to use their ideas to improve
it. The power to create motivates employees and benefits the organization in
having a more flexible work force, using more wisely the experience of its
employees, and increasing the exchange of ideas and information among
employees and departments. These improvements also create an openness to
change that can give a company the ability to respond quickly to market
changes and sustain a first mover advantage in the marketplace.

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 Learning - If employees are given the tools and the opportunities to

accomplish more, most will take on the challenge. Companies can motivate
employees to achieve more by committing to perpetual enhancement of
employee skills. Accreditation and licensing programs for employees are an
increasingly popular and effective way to bring about growth in employee
knowledge and motivation. Often, these programs improve employees'
attitudes toward the client and the company, while bolstering self-confidence.
Supporting this assertion, an analysis of factors which influence motivation-tolearn found that it is directly related to the extent to which training participants
believe that such participation will affect their job or career utility. In other
words, if the body of knowledge gained can be applied to the work to be
accomplished, then the acquisition of that knowledge will be a worthwhile
event for the employee and employer.
Quality Of Life - The number of hours worked each week by American
workers is on the rise, and many families have two adults working those
increased hours. Under these circumstances, many workers are left wondering
how to meet the demands of their lives beyond the workplace. Often, this
concern occurs while at work and may reduce an employee's productivity and
morale.
Companies that have instituted flexible employee arrangements have gained
motivated
employees whose productivity has increased. Programs incorporating
flextime, condensed workweeks, or job sharing, for example, have been successful in
focusing overwhelmed employees toward the work to be done and away from the
demands of their private lives. All motivation ultimately comes from within a person.
Monetary Incentive - For all the championing of alternative motivators,
money still occupies a major place in the mix of motivators. The sharing of a
company's profits gives incentive to employees to produce a quality product,
perform a quality service, or improve the quality of a process within the
company. What benefits the company directly benefits the employee.
Monetary and other rewards are being given to employees for generating costsavings or process-improving ideas, to boost productivity and reduce
absenteeism. Money is effective when it is directly tied to an employee's ideas
or accomplishments. Nevertheless, if not coupled with other, nonmonetary
motivators, its motivating effects are short-lived. Further, monetary incentives
can prove counterproductive if not made available to all members of the
organization.
Other Incentives - Study after study has found that the most effective
motivators of workers are nonmonetary. Monetary systems are insufficient
motivators, in part because expectations often exceed results and because
disparity between salaried individuals may divide rather than unite employees.
Proven nonmonetary positive motivators foster team spirit and include

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recognition, responsibility, and advancement. Managers, who recognize the

"small wins" of employees, promote participatory environments, and treat
employees with fairness and respect will find their employees to be more
highly motivated. One company's managers brainstormed to come up with 30
powerful rewards that cost little or nothing to implement. The most effective
rewards, such as letters of commendation and time off from work, enhanced
personal fulfillment and self-respect. Over the longer term, sincere praise and
personal gestures are far more effective and more economical than awards of
money alone. In the end, a program that combines monetary reward systems
and satisfies intrinsic, self-actualizing needs may be the most potent employee
motivator.

1.7

Factors for Lack of Motivation in the Workplace

A drop in staff motivation can become contagious if the cause is not identified and
addressed. Management needs to be conscious of employee motivation, and that
means being able to identify the factors that cause a lack of motivation in the
workplace. Become familiar with the factors that can degrade staff motivation and
design plans to combat these productivity killers.
Rumors
The important thing to remember about rumors is that they are not always wrong.
Some rumors have basis in fact, but that does not make them good for employee
morale. An employee that hears a rumor that she may be laid off experiences an
instant drop in motivation. To deal with the problem of rumors in the workplace, it is
important for management to share important information with the staff in a timely
manner. This helps employees to feel confident that management will address rumors
and encourages staff members to wait on information from the company before acting
on a rumor.
Inadequate Job Skills
Employees are motivated to succeed at jobs for which they feel prepared and properly
trained. Before moving an employee into a position of greater responsibility or before
allowing any changes to an employee's job duties, be certain that employee has had
the training needed to get started. Putting an employee in a position where she feels
she has inadequate job skills will erode the employee's confidence and stifle any
motivation to succeed.
Goal Flaws
Employees are not motivated by the notion that their hard work will make company
owners and executives rich, the more internalized a company's goals sound, the less
motivated employees are to fulfill those goals. The company needs to focus on the
customer and give employees a chance to feel as though it has done something
substantial to help the customer. For example, develop a referral program that
encourages customers that have recently purchased products to recommend other
people that your sales professionals can call on. The company and sales staff benefit

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from the increase in business, but the sales staff also gets to see the appreciation of
past clients in the form of potential new business.
Overwork
Employees that are overworked are likely to lose motivation regardless of how much
overtime pay they are receiving. If you know a period is coming where extra hours
will need to be worked, develop a schedule in advance and give your employees
ample warning so they can make preparations in their personal life. Make sure the
staff schedule still allows employees to spend time with their families and get away
from the stress of working too much.

1.8

Techniques of Employee Motivation

Here are some motivations techniques that will help to get staff re-energised and
engaged at work. To begin with, make sure you have the right conditions in place so
that your work culture supports motivation.
Make sure you offer:
Fair pay and conditions
A comfortable, safe, working environment
Opportunities for employees to socialize and make friends
clearly defined work responsibilities and goals
Education and training opportunities
Career opportunities
As a manager, you play a key role in building on a solid foundation and motivating
employees. Remember that 70% of people leave their boss, not the company.
So what can you do to make sure that employees are switched on at work?
Here are some practical motivation techniques that you can use to improve motivation
in your workplace:

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1. Treat Employees as Individuals

Do you make assumptions about what motivates your employees? Some are likely to
be career focused, but others may see their work as a place to make friends and earn
money.Find out what motivates employees outside of work. Some enjoy a challenge
such as a sporting activity; others may like to be on committees so they can use their
organizational skills. Use their innate talents in the workplace where possible to keep
them motivated. Set goals which stretch their abilities. Make goals SMART - specific,
measurable, achievable, relevant and time framed.
Treat Employees with Respect
Get to know your employees on a personal level, and offer support when needed, even
if it is only to listen to their concerns. Ask your employees for their opinions where
possible, for example if you are changing systems or introducing new equipment.
Being involved in decision making is one of the best motivation techniques. Catch
your employees doing something well and praise them - and if you do this in front of
others, it makes the employee feel even better. Giving employees recognition for their
efforts will motivate them to repeat the process.
Provide Opportunities for Employee Learning and Development
Encourage a learning climate, through structured on-the-job training programmes, job
transfers, inter-disciplinary projects and support for further education. Aim to have
your employees constantly learning new skills and gaining new knowledge. This will
reduce the level of stagnation that can easily occur in a business. Promote from within
where feasible - and invest the time and support in developing employees so they can
take on new opportunities. Some managers worry that by offering a high level of
training to employees, they may leave the business for better opportunities elsewhere.
Remember this allows other employees to rise up and take their place! Also the word
will spread that you are a good employer - which may encourage a higher caliber of
external job applicants.
Make the Workplace a Fun Place
Having fun is one of the best motivation techniques. And small things can make all
the difference..
bringing sweets to team meetings
sharing non-business news through e.g. newsletters
arranging activities such as lunchtime yoga sessions

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 surprising employees with a birthday cake

asking the employees for their opinion on what would make the workplace a fun
place!

Morale Boosters
Measuring Morale

There's only one way to know how good morale really is in your company: ask the
people who work there.
Street Smarts: The Tournament
Morale took a real beating this fall. But there's nothing that lifts the spirits like
some friendly competition.

Revving Up the "P" Word (Productivity)

Though productivity is often defined in numbers, it relies very heavily upon people
and their attitudes.
Leading in Hard Times
CEOs offer 10 tips for leading your company through bleak times.
Non-Cash Incentives

Low-Cost Ways to Build Employee Commitment

Consider the power of the five I's.
It Takes More than Pay to Keep Good Workers
Companies are finding a number of ways to expand responsiveness and flexibility
beyond traditional compensation programs to retain top employees.
Incentives for All Generations
The one-size-fits-all approach no longer suits today's multigenerational workplaces.
Check this list of desired perks for mature workers, baby boomers, Gen Xers, and
more.

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Winter Holiday Rewards

The hectic holiday season is the time to show off a well-thought-out reward strategy
that helps your workforce stay motivated and focused.

Perks You Can Afford

In this classic Inc. article, take a look at some unique employee benefits that can help
you create an environment your workers won't want to leave.
Motivation by Compensation

Trust but Verify In addition to providing valuable information on the company's 20

restaurants, the Noodles & Co. secret shopper program is used as a motivational tool.
The Store that Stark Built
Not only does every employee at Debra's Natural Gourmet have a management role,
in a move unheard of in retail, profits are shared amongst the team.
In a Former Life: Alan Schultz
This CEO learned a valuable lesson during his past life as a steelworker: A company
should compensate its sales force based on fair and reachable short-term goals.
Hands On: Showing Up
Are your workers not in the habit of showing up every day? Try instituting a bonus
system to encourage perfect attendance.
Turn Motivation Inside Out
Inside sales teams often go unrecognized and unrewarded. To motivate them and
build a winning sales team all around, reward sales support staffers with commissions,
too.
Goals, Roles, Pay, and Performance
If you've promised goal-based compensation, you need to clearly communicate roles,
goals, and paths; otherwise, you may end up with disgruntled employees.
Turbo charger Your Bonus Plan
Take a regular bonus plan and add a kickeran increase in the payout if certain
targets are met.

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1.9

Theories of Motivation

Overview
At a simple level, it seems obvious that people do things, such as go to work, in order
to get stuff they want and to avoid stuff they don't want. Why exactly they want what
they do and don't want what they don't is still something a mystery. It's a black box
and it hasn't been fully penetrated.
Overall, the basic perspective on motivation looks something like this:

In other words, you have certain needs or wants (these terms will be used
interchangeably), and this causes you to do certain things (behavior), which satisfy
those needs (satisfaction), and this can then change which needs/wants are primary
(either intensifying certain ones, or allowing you to move on to other ones).
A variation on this model, particularly appropriate from an experimenter's or
manager's point of view, would be to add a box labeled "reward" between "behavior"
and "satisfaction". So that subjects (or employees), who have certain needs do certain
things (behavior), which then get them rewards set up by the experimenter or manager
(such as raises or bonuses), which satisfy the needs, and so on.

Theories of Motivation are as follows:Aldermens ERG theory

Adorer classifies needs into three categories, also ordered hierarchically:

growth needs (development of competence and realization of potential)

relatedness needs (satisfactory relations with others)
existence needs (physical well-being)

This is very similar to Maslow -- can be seen as just collapsing into three tiers. But
maybe a bit more rational. For example, in Adorers model, sex does not need to be in
the bottom category as it is in Maslow's model, since it is not crucial to (the
individual's) existence. (Remember, this about individual motivation, not species'
survival.) So by moving sex, this theory does not predict that people have to have sex
before they can think about going to school, like Maslow's theory does.

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Adorer believed that as you start satisfying higher needs, they become more intense
(e.g., the power you get the more you want power), like an addiction.
Do any of these theories have anything useful to say for managing businesses? Well,
if true, they suggest that

Not everyone is motivated by the same things. It depends where you are in the
hierarchy (think of it as a kind of personal development scale)
The needs hierarchy probably mirrors the organizational hierarchy to a certain
extent: top managers are more likely to motivated by self-actualization/growth
needs than existence needs. (but try telling Bill Clinton that top executives are
not motivated by sex and cheeseburgers...)
McClellands Theory of Needs:

According to David McClelland, regardless of culture or gender, people are driven by

three motives:
Achievement,
Affiliation, and
Influence.

Since McClelland's first experiments, over 1,000 studies relevant to achievement

motivation have been conducted. These studies strongly support the theory.
Achievement: The need for achievement is characterized by the wish to take

responsibility for finding solutions to problems, master complex tasks, set goals, get
feedback on level of success.
Affiliation: The need for affiliation is characterized by a desire to belong, an

enjoyment of teamwork, a concern about interpersonal relationships, and a need

to reduce uncertainty.
Power: The need for power is characterized by a drive to control and influence

others, a need to win arguments, a need to persuade and prevail

According to McClelland, the presence of these motives or drives in an individual

indicates a predisposition to behave in certain ways. Therefore, from a manager's
perspective, recognizing which need is dominant in any particular individual affects the
way in which that person can be motivated.
Summary: People with achievement motives are motivated by standards of excellence,
delineated roles and responsibilities and concrete, timely feedback. Those with affiliation
motives are motivated when they can accomplish things with people they know and trust.
And the power motive is activated when people are allowed to have an impact, impress
those in power, or beat competitors.

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Cognitive Evaluation Theory

This theory suggests that there are actually two motivation systems: intrinsic and
extrinsic that corresponds to two kinds of motivators:

Intrinsic motivators: Achievement, responsibility and competence. motivators

that come from the actual performance of the task or job -- the intrinsic
interest of the work.
Extrinsic: pay, promotion, feedback, working conditions -- things that come
from a person's environment, controlled by others.

One or the other of these may be a more powerful motivator for a given individual.
Intrinsically motivated individuals perform for their own achievement and
satisfaction. If they come to believe that they are doing some job because of the pay
or the working conditions or some other extrinsic reason, they begin to lose
motivation.
The belief is that the presence of powerful extrinsic motivators can actually reduce a
person's intrinsic motivation, particularly if the extrinsic motivators are perceived by
the person to be controlled by people. In other words, a boss who is always dangling
this reward or that stick will turn off the intrinsically motivated people.
Note that the intrinsic motivators tend to be higher on the Maslow hierarchy.

Two Factor Theory (Herzberg)

Two-factor Theory: Herzberg's Two Factor Theory, also known as the MotivationHygiene Theory, was derived from a study designed to test the concept that people have
two sets of needs:
1. Their needs as animals to avoid pain
2. Their needs as humans to grow psychologically
Herzberg study Herzberg's study consisted of a series of interviews that sought to elicit
responses to the questions:
(1) Recall a time when you felt exceptionally good about your job. Why did you feel
that way about the job? Did this feeling affect your job performance in any way?
Did this feeling have an impact on your personal relationships or your well- being?
(2) Recall a time on the job that resulted in negative feelings? Describe the sequence
of events that resulted in these negative feelings.
(3)Research Results: it appeared from the research, that the things making people
happy on the job and those making them unhappy had two separate themes.

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(1) Satisfaction (Motivation): Five factors stood out as strong determiners of job
satisfaction:
Achievement
Recognition
Work Itself
Responsibility
Advancement

The last three factors were found to be most important for bringing about lasting changes
of attitude. It should be noted, that recognition refers to recognition for achievement as
opposed to recognition in the human relations sense.

(2) Dissatisfaction (Hygiene): The determinants of job dissatisfaction were found to be:
Company Policy
Administrative Policies
Supervision
Salary
Interpersonal Relations
Working Conditions

From the results Herzberg concluded that the replies people gave when they felt good
about their jobs were significantly different from the replies given when they felt bad.
Certain characteristics tend to be consistently related to job satisfaction and others to job
dissatisfaction. Intrinsic factors, such as work itself, responsibility and achievement seem
to be related to job satisfaction. Respondents who felt good about their work tended to
attribute these factors to themselves. On the other dissatisfied respondents tended to cite
extrinsic factors such as supervision, pay, company policies and working condition.
Herzberg proposed that his findings indicated the existence of a dual continuum: the
opposite of satisfaction is No satisfaction and the opposite of Dissatisfaction is No
Dissatisfaction.
According to Herzberg, the factors leading to Job satisfaction are separate and distinct
form those that lead to job dissatisfaction. Therefore, managers who seek to eliminate
factors that can create job dissatisfaction may bring about peace but not necessarily
motivation. They will be placating their workforce rather than motivating them. As a
result, conditions surrounding the job such as quality of supervision, pay , company
policies, physical working conditions relations with others and job security were
characterized by Herzberg as hygiene factors, when theyre adequate, people will not be
dissatisfied ; neither will they be satisfied. If we want to motivate people on their jobs,
Herzberg suggested emphasizing factors associated with the work itself or to outcomes

20

directly derived form it, such as promotional opportunities, opportunities for personal
growth, recognition, responsibility and achievement. These are the characteristics that
people find intrinsically rewarding.

Reinforcement Theory:

This theory focuses its attention as to what controls behaviour. In contrast to goal setting
theory, which is cognitive approach focus attention on what initiates behaviour?
Behaviour, as per cognitive approach is initiated by internal events. Reinforcement theory
argues that behaviour is reinforced and controlled by external events. The classical
conditioning proposed by Pavlov which we have already studied in our earlier lessons
explains this in a better way.

Equity Theory

Suppose employee A gets a 20% raise and employee B gets a 10% raise. Will both be
motivated as a result? Will A be twice as motivated? Will be B be negatively
motivated?
Equity theory says that it is not the actual reward that motivates, but the perception,
and the perception is based not on the reward in isolation, but in comparison with the
efforts that went into getting it, and the rewards and efforts of others. If everyone got
a 5% raise, B is likely to feel quite pleased with her raise, even if she worked harder
than everyone else. But if A got an even higher raise, B perceives that she worked just
as hard as A, she will be unhappy.
In other words, people's motivation results from a ratio of ratios: a person compares
the ratio of reward to effort with the comparable ratio of reward to effort that they
think others are getting.
Of course, in terms of actually predicting how a person will react to a given
motivator, this will get pretty complicated:
1. People do not have complete information about how others are rewarded. So
they are going on perceptions, rumors, inferences.
2. Some people are more sensitive to equity issues than others
3. Some people are willing to ignore short-term inequities as long as they expect
things to work out in the long-term.

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Expectancy Theory (Vroom)

This theory is meant to bring together many of the elements of previous theories. It
combines the perceptual aspects of equity theory with the behavioral aspects of the
other theories. Basically, it comes down to this "equation":
M = E*I*V
Or
Motivation = expectancy * instrumentality * valence
M (motivation) is the amount a person will be motivated by the situation they find
themselves in. It is a function of the following.
E (expectancy) = the person's perception that effort will result in performance. In
other words, the person's assessment of the degree to which effort actually correlates
with performance.
I (instrumentality) = the person's perception that performance will be
rewarded/punished. I.e., the person's assessment of how well the amount of reward
correlates with the quality of performance. (Note here that the model is phrased in
terms of extrinsic motivation, in that it asks 'what are the chances I'm going to get
rewarded if I do good job?'. But for intrinsic situations, we can think of this as asking
'how good will I feel if I can pull this off?').
V (valence) = the perceived strength of the reward or punishment that will result from
the performance. If the reward is small, the motivation will be small, even if
expectancy and instrumentality are both perfect (high).

Theory of X and Theory of Y:

Douglas McGregor observed two diametrically opposing viewpoints of managers about

their employees, one is negative called Theory of X and one is positive called Theory
of Y
a) Theory of X : Following are the assumptions of managers who believe in the
Theory of X in regard to their employees.
Employees dislike work; if possible avoid the same
Employees must be coerced, controlled or threatened to do the work
Employees avoid responsibilities and seek formal direction
Most employees consider security of job, most important of all other factors
in the job and have very little ambition
b) Theory of Y: Following are the assumptions of managers who believe in the
Theory of Y in regard to their employees.

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 Employees love work as play or rest

Employees are self directed and self controlled and committed to the
organizational objectives
Employees accept and seek responsibilities
Innovative spirit is not confined to managers alone, some employees also
possess it.
Theory of X assumes Maslows lower level needs dominate in employees. Whereas
Theory of Y, assumes Maslows higher level needs dominate in employees.

Self-Determination Theory

Self-Determination Theory (SDT) is closely related to Maslow's Theory with the

exception SDT suggests that people do not operate on auto-pilot... Instead, they rely
heavily on nourishment and support from their social environment to function
effectively.
SDT presupposes that all people have a built-in tendency toward growth and
development...that they strive to master challenges and to integrate their experiences
into a coherent sense of self.
According to Self-Determination Theory there are three concepts that affect
motivation:
Autonomy - Separateness... "I can do it myself"
Competence Feedback - Approval and Acknowledgment from significant others
Relatedness - Connectedness... "I'm not alone"

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1.10

Challenges of Motivation

Motivation seems to be a simple function of management in books, but in practice it is

more challenging.
The reasons for motivation being challenging job are as follows:
One of the main reasons of motivation being a challenging job is due to the changing
workforce. The employees become a part of their organization with various needs and
expectations. Different employees have different beliefs, attitudes, values,
backgrounds and thinking. But all the organizations are not aware of the diversity in
their workforce and thus are not aware and clear about different ways of motivating
their diverse workforce.
Employees motives cannot be seen, they can only be presumed. Suppose, there are
two employees in a team showing varying performance despite being of same age
group, having same educational qualifications and same work experience. The reason
being what motivates one employee may not seem motivating to other.
Motivation of employees becomes challenging especially when the organizations
have considerably changed the job role of the employees, or have lessened the
hierarchy levels of hierarchy, or have chucked out a significant number of employees
in the name of down-sizing or right-sizing. Certain firms have chosen to hire and fire
and paying for performance strategies nearly giving up motivational efforts. These
strategies are unsuccessful in making an individual overreach himself.
The vigorous nature of needs also pose challenge to a manager in motivating his
subordinates. This is because an employee at a certain point of time has diverse needs
and expectations. Also, these needs and expectations keep on changing and might also
clash with each other. For instance-the employees who spend extra time at work for
meeting their needs for accomplishment might discover that the extra time spent by
them clash with their social needs and with the need for affiliation.

Work Motivation
Craig Pindar echoing the basic definition of motivation, define it as follows:Work
motivation is a set of energetic force that originate both within as well as beyond and
individuals being, to initiate work related behavior, and to determine its form,
direction, intensity, and duration.While general motivation is concerned with effort
towards any goal, Stephen Robbins narrow the focus to organizational goals in order
to reflect singular interesting work related behavior the effort element is a measure of
intensity. The need means some internal state that makes certain outcomes appear
attractive. And unsatisfied need creates tension that stimulates drives within the

24

individual. This drives general a search behavior to find particular goals, if attend,
will satisfied the needs and lead to the reduction of tension.

Integrated Model of Work Motivation

The integrated model of work motivation, by Locke and Latham, forms the theory
foundation for this study.
The model shows that a persons needs affect his values and personality, which affect
his choice of goals and his satisfaction or dissatisfaction, determining his actions. A
persons choice of goals can be understood through the study of goal theory. Goal
effects are enhanced by goal moderators. Goals affect performance while performance
determines rewards.

The elements of the model and the various related theories will be discussed in depth.

Maslows needs hierarchy

The first item in the integrated model is needs, since motivation starts with needs
This theory was proposed by Abraham Maslow and is based on the assumption that
people are motivated by a series of five universal needs. These needs are ranked,
according to the order in which they influence human behavior, in hierarchical
fashion
Physiological needs are deemed to be the lowest- level needs. These needs include
the needs such as food & water.
So long as physiological needs are unsatisfied, they exist as a driving or
motivating force in a person's life. A hungry person has a felt need. This felt need
sets up both psychological and physical tensions that manifest themselves in overt
behaviors directed at reducing those tensions (getting something to eat). Once the
hunger is sated, the tension is reduced, and the need for food ceases to motivate. At
this point (assuming that other physiological requirements are also satisfied) the next
higher order need becomes the motivating need.
Thus, safety needs -- the needs for shelter and security -- become the motivators of
human behavior.
Safety needs include a desire for security, stability, dependency, protection, freedom
from fear and anxiety, and a need for structure, order, and law.. In the workplace this
needs translates into a need for at least a minimal degree of employment security; the

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knowledge that we cannot be fired on a whim and that appropriate levels of effort and
productivity will ensure continued employment.
Social needs include the need for belongingness and love.
Generally, as gregarious creatures, human have a need to belong. In the workplace,
this need may be satisfied by an ability to interact with one's coworkers and perhaps
to be able to work collaboratively with these colleagues.
After social needs have been satisfied, ego and esteem needs become the motivating
needs.
Esteem needs include the desire for self-respect, self-esteem, and the esteem of
others. When focused externally, these needs also include the desire for reputation,
prestige, status, fame, glory, dominance, recognition, attention, importance, and
appreciation.
The highest need in Maslow's hierarchy is that of self-actualization; the need for selfrealization, continuous self-development, and the process of becoming all that a
person is capable of becoming.
The key to Maslows theory is that once a particular level of need is satisfied, it then
stops being a motivating force. The person then seeks a higher level of need
satisfaction. The theory also indicates that moneys power to motivate a person is
limited.
Maslows theory can be a useful tool for managers in determining the kinds of
rewards that could be effective in motivating employees. The key is to recognize
every employee as an individual and also to remember that employees needs differ
from time to time. Therefore it is the managers duty to regularly reassess the
employees

Goal choice: Vrooms VIE theory

As the integrated model indicates, ones values and personality contribute to Goal
choice, which is influenced by incentives and self-efficacy. The way in which goals,
rewards or outcomes affect motivation is encompassed in Vrooms theory.
Vroom developed a complex mathematical model to explain motivation in the
workplace , known as the expectancy theory. It is one of the most widely accepted
motivational theories. Although there has been criticism of the expectancy theory, the
proof is still supportive of the theory.
Expectancy theory explains how rewards lead to behaviour by focusing on internal
cognitive states that lead to motivation. The theory assumes that people think about
what they are doing, what they are getting, and its worth. The idea of this theory is
that the individual will be motivated when he or she believes that their behaviour will

26

lead to desired rewards or outcomes. If the individual does not believe that his or her
behaviour will lead to the desired outcomes or rewards, he or she will not be
motivated to perform. Also, if he or she does not want the outcomes or rewards, then
he or she will not be motivated to perform the behaviour. Vrooms theory posits that
motivation is a mathematical function of three types of cognitions. The equation as
following:
Motivation = Expectancy (Valences Instrumentalities)

Three major elements that determine a persons motivation are: valence, which is
defined as the measure of the value of the outcome of work (Edwards, 1999:385);
expectancy, which is ones belief about the possibility of a particular outcome; and
instrumentality, the probability belief linking one outcome to another.
Expectancy theory explains that an employee is willing to perform with a high level
of effort when he or she believes that this will lead to desired rewards.

This theory is well accepted for two main reasons. Firstly, it is logical to think that
employees will not be motivated by things they do not wish to have. Secondly, this
theory works in conjunction with the other motivational theories. For instance,
recognition is also pointed out by Herzbergs theory, while status is mentioned by
Maslow.

Goal theory: Goal choice

Goal theory also affects ones choice of goals. Goal-setting theory is probably the
theory of motivation that has been most useful to psychologists. The principles of the
theory have been widely used in organizations.
Locke suggests that the intentions people have play an important role in formulating
their behavioral patterns. The basic idea of goal-setting theory is thus that peoples
behaviour is motivated by their intentions, objectives and goals. According to the
theory, a goal is what an individual wants to achieve or attain goals are a major source
of motivation, so goal setting is an important part of most motivational programmes
and managerial methods of motivating employees. Goals can be specific or general,
difficult or easy. Specific goals lead to better performance; difficult goals, when
accepted, will lead to even better performance. In this theory, the specificity of the
goal acts as an internal stimulus. However, it is difficult for goals to direct employees
behaviour unless they receive feedback. Feedback regarding goals will result in higher

27

performance than when the feedback is absent. In other words, employees do best
when they receive feedback on how well they are heading towards their goals.
Feedback shows employees the difference between what they have done and what
they want to achieve. Self-generated feedback, where employees monitor their own
progress, has proven to be a more powerful motivator than externally generated
feedback.
On the other hand, some evidence shows that the more difficult the goal, the greater
the sense of accomplishment and achievement the employee feels when the goal is
achieved.
Thus employees might tend to be more motivated to achieve difficult goals than easy
ones, even if the probability of achievement is low. In this case, the manager should
direct the employee in the right direction for achieving the difficult goal in order to
prevent cheating, unethical behaviour or the falsification of performance measures.
Goal-setting studies point out that goals motivate employees for several reasons.
Firstly, a goal directs an employees attention to a specific target, so the employee
exerts efforts in a specific direction toward achieving that specific target. Secondly, a
challenge goal, which requires repeated effort, encourages persistence. Lastly,
because the goal creates a gap between the reality and the desired, it fosters the
creation of strategies and courses of action.
Although researchers have proved that goal-setting theory can be effective, some
researchers have begun to notice its limitations. Yearta et al. point out that most goalsetting studies involve single goals, and that when goals are more than one and are
more complex or difficult, performance is poorer.
Enriching goal-setting theory with time
Time is an important factor in peoples lives, both at and outside work. Time is
significant to ones past and present experiences, and also to ones future plans and
life expectations. Work motivation theories have, however, generally failed to
incorporate time as an important variable that affects ones motivation to work. As
discussed previously, goal-setting theory states that expectancy, instrumentality, and
valence will be high if goals are difficult, challenging, specific and achievable. The
theory further states that ones commitment is important to maximize the relationship
between goal and performance. Finally, timely feedback is necessary for successful
attainment of the goal.
One time-related issue that is discussed in goal-setting theory is that of a deadline,
which defines when the task needs to be completed. The idea is that a deadline serves
as a tool for time control and increases the motivational effect of goals. In other
words, when the available time is longer than needed to complete the task, the
individual tends to slow down activity to fill the available time. In contrast, when the
deadline is closer, one tends to work faster (Fried & Slowik, 2004:407). Research has

28

found that insufficient time before a deadline can lead to less effective performance,
especially when performing complex tasks.
An important issue that also needs to be addressed is how time affects the choice and
selection of multiple goals and how these goals relate to each other across time.
Finally, goal-setting theory suggests that people work longer on challenging goals. A
number of studies have supported this suggestion. However, similar to other
motivational theories, goal-setting theory has failed to address the potential effect that
time has on the major components of the theory - goal difficulty, goal attainability,
and goal specificity.
Time and goal difficulty: The idea that difficult and challenging goals lead to higher
work motivation and performance than simpler goals, as long as they are attainable,
may not always be true, but it may be contingent on the time context in which the
particular goal is being performed. Control theory suggests that behaviour is
complicated and can be explained by hierarchies of feedback loops. In such
hierarchies, performing one goal successfully may be part of the input to a higher
order goal. For example, in the workplace, employees may use clock time as a basis
for performing sequential goals that have different levels of difficulty. They may
work hard for less challenging goals if they see the accomplishment of these simpler
goals as a step in performing more challenging and difficult goals in the future.
Time and the attainability of goals: Goal-setting theory states that for goals to be
motivational, they must not only be challenging and specific but also achievable.
Again, the relationship between goal achievability and employee motivation and
effort may be influenced by time. Employees may be given risky goals with a low
possibility of achievement, which would cause low employee motivation. For
example, an individual might be asked to be involved in innovative operations, where
both the processes of achieving a product and the time frame are uncertain. The
probability of successfully producing a new product is obviously.
Goal moderators
The effects of goals on motivation are enhanced by goal moderators. Locke and
Latham have identified the following four goal moderators: feedback; commitment;
ability; and task complexity.
Feedback
Research has shown that goal setting without the presence of feedback is ineffective.
Goal setting and feedback together lead to improved performance. Goals direct ones
actions while feedback tracks the progress of those actions in relation to the goal.
When an individual works towards a goal and is told that he is behind schedule, he
tends to work harder, hence performance is improved; whereas an individual who is
told that he is on target tends not to improve performance.

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Commitment
Challenging goals lead to high performance only if the individual commits to them.
An individuals commitment tends to decline as goal difficulty increases, so
performance decreases rather than increases. There are at least four factors affecting
goal commitment: legitimate power or authority; peers influence; individuals
expectancy; and rewards or incentives:
Authority: Jones and George (2003:48) define authority as the power to hold people
accountable for their actions and to make decisions concerning the use of
organizational resources. Authority gives managers the right to achieve
organizational goals through directing and controlling employee behaviour. Goals that
are assigned by the person with authority over the individual tend to become the
individuals personal goals. With regard to commitment, there is no difference
between goals assigned by the authority figure and goals set by the individual in a
participative manner, providing the goals are reasonably explained and the individual
is supported by the authority figure.
Peer influence: Peer influence, especially peer pressure and modeling, also affects
goal commitment. Peer pressure is known to encourage commitment. Strong group
norms also induce commitment, giving little difference in productivity among group
members. There will be higher commitment to individual goals if both group goals
and individual goals are assigned for a group task than if only individual goals are
assigned.
Expectancy: The individuals expectancy of being able to reach the goal or perform at
a high level affects commitment. According to Vrooms expectancy theory, goals that
are moderate or easy are more likely to be accepted than goals that are difficult,
although a high degree of commitment can be engaged for a short time for goals that
are hard to reach. Individuals usually prefer moderate goals.
However, the employee might still be motivated to achieve a difficult goal if two
conditions are met: firstly, the connection between rewards and achieving the difficult
goal is clear; secondly, the reward for achieving the goal is large. The choice of goals
can also be influenced by previous or current goals assigned.
Rewards or incentives: Goal commitment is high when an individual works to achieve
a goal that is seen as instrumental in gaining other valued outcomes. Verbal appraisal
is found to be especially powerful in motivating. Commitment is measured to be
higher when a reward is offered for partial success than when only full success is
rewarded.

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Ability
Obviously, whether a person is capable of meeting a goal or not is determined by his
or her ability. Goal-setting studies have proved that the relation between goal
difficulty and performance can be limited by a persons ability. There is also evidence
that goal setting has a stronger effect on people with higher ability than on people
with lower ability.
Task complexity
There are three dimensions of task complexity: component complexity, meaning the
elements in the task; coordinative complexity, meaning the number and nature of the
relationships between the elements; and dynamic complexity, meaning the number
and types of elements and the relationships between them over time.
Research has found that the effect of goals is significantly larger with less complex
tasks than with more complex tasks. Evidence shows that with highly complex tasks,
the individual who has no previous experience and is told to perform well rather than
told to do your best, may perform poorly.
In summary, a specific challenging goal can be attained the best when the individual
has the ability, is committed to the goal, gets feedback on progression in relation to
the goal and has high expectancy to perform the task well, and the task is simple.
Goal and efficacy mechanisms: mediators
Goals also affect performance through their effects on mediators: direction, effort,
persistence and, indirectly, task strategies. Wood and Locke define three mediators or
mechanisms that help the individual to attain goals: direction of attention; effort; and
persistence. These correspond to the three attributes for motivated action: direction,
intensity and duration.
This simply means that an individual can perform better if he or she pays attention to
the task, puts effort into it and persists over a period of time. Goals direct an
individual's attention to the task or activities specified by the goal, with the result that
he or she will focus less on the goals irrelevant tasks or activities. With regard to
task persistence, when an individual is given a goal, he or she will most likely
continue working until the goal is reached. If there are no time limits to achieving the
goal, the individual will work longer for a harder goal than for an easier goal. The
individual will also spend more time preparing to perform if the goal requires a highperformance standard than if it requires a low-performance standard.
Goals can also influence performance indirectly by motivating the individual to
develop task-specific strategies. There are, broadly speaking, two types of taskspecific strategies:

31

 Stored task-specific strategies. These are learned either through instructions given or
through practice. Such strategies can be performed automatically when the individual
performs similar or relevant tasks.
New task-specific strategies. When stored task-specific strategies fail as a result of a
task being new or differences in task situations, the individual will develop new-task
specific strategies to adapt and to cope with the new situation. There is no guarantee
that the individual will always choose the right or appropriate task strategies, but
goals may guide the individual.

Performance and outcomes

There are three basic types of objective outcome measurements in the workplace that
can be used to guide performance: quality of production, for instance the amount
produced or the number of mistakes; money, such as profit and loss; and time,
including attendance and deadlines for tasks. When objective outcome measurements
are not available, behavioural measurements can be used. These can be made by
observing the individual. If desired behaviours are demonstrated frequently, desirable
outcomes will be attained more easily.

Rewards
When rewards are given to those who achieve high performance, they can become an
important instrument to encourage the continuance of the desired behaviour. In the
workplace, external rewards include incentives, benefits and other monetary forms of
rewards. Such external rewards are often used as motivators by managers. However,
Herzberg argues that motivation comes from work itself and these external rewards
are merely just satisfiers or dissatisfies. Managers who feel that their employees have
a lack of motivation should reassess the reward systems being used in the company.
Managers must maintain a balance between the employees base pay, benefits and
other external rewards. These provide employees with a reward programme that is
fair, competitive and measurement-based. Once employees are motivated, they will be
able to fulfill the customers needs and together achieve the companys goals (Bowen,
2000:182).
However, not all rewards are external. Internal rewards can occur as a result of a
sense of accomplishment, attaining a level of excellence and success or making
progress towards a goal. Higher satisfaction is experienced when the success is
attributed to the individual her or himself rather than to external factors. Difficult
goals may lead to higher levels of satisfaction than easier goals because they are
attained less frequently. Research has been done on how rewards affect employee
performance.

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Attribution theory
According to Locke and Lathams model, attribution theory should also be considered
when studying performance. Attribution theory suggests that motivation is a response
by the individual to a self-perception of their behaviour. Its emphasis is on the ways
that the attributions an individual makes about his or her own or others performance,
affect that individuals subsequent choices and actions. Attribution theory does not
identify the actual cause of the behaviour; it provides the cause of the behaviour from
the perceivers point of view (Martin, 1998:49). Kelley is credited with developing
the theory of attribution that provides views of the attribution process (Miner,
2005:187). Co-variation is the central principle of Kelleys theory. A causal
relationship exists between two events when they occur at the same time. If a
particular outcome only occurs when a specific situation exists, then the situation is
said to co-vary with the effect. Kelley suggests that individuals tend to identify covariance relationships through a number of ways:
Distinctiveness. Did the behaviour only occur when performing this specific task
and not others?
Consistency. How consistent is this behaviour with the other behaviour of the
individual?
Consensus. Is the behaviour unique to this individual or has it been widespread
among others?
Later, Weiner developed a framework to distinguish different types of attribution and
therefore appropriate response behaviours: the individuals ability; the individuals
effort level; the difficulty of the task to be performed; and luck.
Achievement-motivated individuals attribute their success to their effort and hard
work and their failures to their not having tried hard enough. If they fail, they tend to
try again because they believe that they can succeed with greater efforts. In contrast,
individuals with a low need for achievement see effort and hard work as irrelevant.
They attribute their own failures to other factors and view their success as due to luck
or the easiness of the task.

Limitations of the integrated model

The numerous limitations of the integrated model of work motivation by Locke and
Latham should be considered:

33

 Some arrows are omitted to limit cognitive-perceptual overload. For example,

the relationship between perceived justice and goal commitment is omitted,
while there is no indication that personality can affect job satisfaction.
There are several theories not fully elaborated, aside from goal theory. For
example, there are sub-theories and complexities involved in procedural
justice.
Ability, knowledge and skills, abbreviated as KAS, are significant to
performance. They are the abilities needed to perform, yet they are not shown
in the model.
The model focuses on conscious motivation and leaves out the sub-conscious.
The model does not take doubtful or highly limited theories into consideration.

1.11

Recent Development of Work Motivation

Introduction
While theoretical development on work motivation may have declined in recent years,
the world of work has changed dramatically and rapidly. It has described the
enormous changes the world of work is going through, and includes factors
influencing the motivation of todays employees, to serve as guidelines for
management today.
Changes in the world of work

Changes in the organization

The above section describes the changes that are reshaping todays economy. These
changes have also affected todays organizations. Understanding these changes could
help managers to minimize the negative effects and to capitalize on the positive
effects that the changes are having on the company.

Externalization of risks
Companies in the 1960s and 1970s owned and controlled the business as much as they
could. IBM was one of the examples. To maintain maximum control over the
operation, the company created centralized departments to monitor the decisions
made by the lower management levels. Two of the disadvantages of this strategy are
exposure to business risks and inflexibility. To overcome this, companies today
externalize risks by outsourcing. Outsourcing occurs when a company contracts
outside companies to provide resources or services. However, the company should

34

take care not to lose its strategic skills or advantages. With outsourcing, companies
are able to focus on their strengths and emphasize their core competencies.
Companies have now recognized the importance of leasing or buying services or
products from other companies when striving to meet cost-reduction and growth
objectives

Work flexibility

As Locke and Latham indicate in their integrated model of work motivation, it is

important to understand employees needs. Flexible benefit programmes, flexible
working hours, family-friendly programmes and bonus pay are designed to motivate
employees to be satisfied and become high performers. Working-time flexibility
refers to managements use of variable working hours to meet the companys
demands. The practice of flexible working is becoming more popular for economic,
industrial and social reasons. The growing globalization requires companies to
operate in different time zones around the clock; customers are demanding later
opening hours and greater accessibility, especially from the service and retail sectors;
competitive pressures in the manufacturing sectors require expensive equipment to
operate for the maximum period to save costs; and there is a stronger need for both
men and women to balance their family and work. There has been a great deal written
and spoken about work and life balance in recent years. Research suggests that
helping employees to balance their work and family life can result in better
performance; increase productivity and reduce absenteeism; while the company can
recruit and retain skilled employees more easily.

Teamwork
Effective teamwork has been a key factor in business success. Today, a lot of
managers use teams to solve problems, generate ideas and complete jobs. Teamwork
offers opportunities for job enrichment, gives autonomy to employees, decreases the
workload of supervisors and may also enhance performance on difficulty or
complicated tasks .Team is defined by Thiagarajan and Parker as a group of people
with a high degree of interdependence geared toward the achievement of a goal or the
completion of a task. Employees working in teams help to increase flexibility in
companies. A recent survey shows that 73 percent of the companies in the United
States have some of their employees working in teams. Employees lose sight of the
big picture when they are divided into departments. When employees work in teams,
both horizontal and vertical hierarchical barriers are broken down, allowing the
company to respond faster to changes and permitting better coordination in activities
between departments. Since unclear or misleading directions usually cause team

35

failure, managers need to communicate the vision, mission and the values clearly to
the employees when organizing teams.
Multiculturalism
Multiculturalism is another issue that is reshaping the workforce. Globalization has
encouraged immigration. Workforce diversity is changing companies today and the
workforce will become even more diverse in the next twenty years. Diversity seems to
be growing in the business world, although it has always been there. Having a variety
of different talents to use and being able to improve market understanding are some of
the main benefits of managing diversity. Cross-cultural teams can create problems in
terms of language differences and the different ways of communicating, but can also
be more creative.
Downsizing
Another issue to be addressed is downsizing. Downsizing is a management practice in
which companies reduce the size of a company by laying off employees. The focus
may be monetary costs, time costs, or technological costs. This management strategy
has becoming popular, but managements motivation for this is not always obvious.
Some critics believe that downsizing is a way for management to show the
stockholders that there is a need to keep costs down. Supporters of this strategy argue
that employee reductions are needed to maintain competitiveness in the fast-changing
global marketplace. Companies are strategically reducing operations that are overemployed while increasing employees in areas that add value. Downsizing is likely to
have some undesirable outcomes as it affects employees morale, motivation and
productivity; service delivery, because of the loss of skilled employees; and
departmental planning. Many people who have been laid off by big companies choose
to start their own businesses. Purchasing a franchise allows them to run their own
businesses with less risk because of the support provided by the franchiser. When
companies are busy downsizing, they are in fact also facing a labour shortage. The
employees who are being laid off do not have the skills that the companies need to be
competitive. Lawler identifies the two powerful forces that are causing the increasing
shortage of knowledge-skilled employees: workforce demographics and education.
Many developed countries, for example, Japan, Italy and Germany, are experiencing a
high percentage of their workforce entering or having already entered the age of
retirement. This shift is a result of both low birth rates and longer life expectancies.
Although some of the retirees can still stay in the workforce, they do not necessarily
have the up-to-date knowledge to meet the needs of the companies. The second force
comes from a lack of education. The schooling system is not producing enough welleducated students to perform the type of work required in todays business world,
especially people who can do technical and engineering work. The importance of a

36

highly skilled workforce must not be undervalued. In the old business environment,
many jobs did not need to be performed by highly skilled employees, so the need for
the highly talented was limited. However, the situation is different now with the
challenges that technology has brought. The growth of knowledge and technology and
the demands for an educated workforce will definitely continue to grow.
Changes in todays employees
The changes that have reshaped the economy and the organisation have redefined the
term employee.
The term multi-skilling implies a higher level of flexibility for a job in a company.
This happens usually in activities which require unskilled to skilled or technical
expertise. In the past, companies were stable and it was preferable for employees to
have a narrow set of specific skills in order to perform repetitive tasks. Today,
companies need employees with multiple skills to handle a variety of job tasks, rather
than specialists. The more skills an employee has, the better he or she can help the
company to achieve its goals and the more valuable he or she is in the job market. As
mentioned earlier, being a team player has becoming increasingly important for
companies that organize around teams. Therefore skills such as problem solving,
group decision-making skills, conflict-solving skills and interpersonal skills are
especially needed to contribute to high-performance teams. Effective managers should
communicate the companys vision, goals, and business strategy with the team and
link these with the teams mission. This gives the team members clear direction,
purpose and security. Team members perform best when they know what is expected
from them and what they can expect from the company.
The changing world of work implies longer working hours, less family time and more
stress. To keep costs low, companies have been downsizing and re-engineering,
causing many employees to work harder in order to stay in their company. Also,
companies delegate more tasks to the highly skilled employees, usually resulting in
stress for the employees. Employees often struggle to cope with the pressure and
stress due to an increased amount of work and to high levels of insecurity. This could
also cause alienation. Alienation implies a feeling of powerlessness, meaninglessness
and even social isolation.
The changes in the world of work have also brought changes to peoples attitudes
towards work. Krech and Crutchfield define attitude as an enduring organisation of
motivational, emotional, perceptual and cognitive processes with respect to some
aspect of the individuals world. There are numerous theories and models that have
been developed on attitudes in general and particularly on work. Katz and Kahn
suggest that attitudes and motivation are intertwined. Motivation needs to be
maintained by the managers to create a working environment where employees will
have positive attitudes. Peoples values and attitudes towards work have changed in

37

todays world. Many people no longer want long term relationships with
organizations. On average, people used to have three or four jobs during their careers,
but this is now increasing as people become more mobile. To decrease the turnover
rate, managers should understand what employees are looking for in their jobs.

Recent Developments of Work Motivation Approaches

The newer theorists, after research and interviews, have come up with new ideas of
motivation for todays employees. There are a variety of factors regarded by different
theorists as motivational..
Belief system of motivation
Thad Green, a university professor who established his own company, used Vrooms
expectancy theory) as a foundation for training unemployed people to develop the
skills they needed to keep productive jobs. Green simplified Vrooms expectancy
theory by removing the mathematics. Instead of saying that people have expectations
that determine motivation at work, Green simply says that people have beliefs. Also,
instead of measuring expectations in the form of probabilities, Green measures beliefs
on a simple ten-point rating scale. He calls the theory the Belief system of motivation
and performance. Working with people in his own company, Green has turned
Vrooms theoretical model into an application model. He proved that there is a critical
connection between motivation and performance. Green points out: Employees are
the best source of solutions to their own motivation and performance problems.
Managing is a shared responsibility. It takes more than offering people what they
want to unleash their motivation to perform.
The Belief system of motivation and performance explains how people determine the
level of effort they put into work and how well they will perform. All these decisions
originate from a process or chain of events: effort leads to performance which leads to
outcomes and results in satisfaction (Green, 2000:5). Green has identified three
beliefs: confidence, trust and satisfaction. These beliefs are the key to motivating
employees, so all three should be put into effect.
The first belief is confidence, which deals with the relationship between employee
effort and performance. One must believe that the effort one is capable of giving will
lead to the expected performance (Green, 2000:6). The second belief, trust, deals with
the relationship between performance and outcomes. Employees must believe and
trust that managers will give them what their performance deserves, for instance,
rewards, promotions or personal thanks for a job well done. In this case managers
must keep their word before diminishing an employees trust. However, this trust in
an appropriate reward can sometimes be a problem in the workplace: performance is
not easy to measure; it is not easy to tie outcomes to performance; there are not
always desirable outcomes; and sometimes employees expect outcomes based on their

38

effort rather than on their performance (Green, 2000:9). Lastly, the satisfaction belief
deals with the relationship between outcomes and satisfaction. The outcome given by
the manager for completion of the job should satisfy the employee. Managers must
realize that the same outcomes do not always satisfy every employee.Green points out
that most motivation theories assume that performance reaches its peak when
employees are offered something they want, as they will work hard in order to
achieve it. The other side of the tactic is to offer something that employees do not
want, such as unemployment, so employees will work hard to avoid it.Research has
proved that the belief system works. As a result of this system, managers become
more effective leaders; employees are more motivated; the performance of
individuals, teams and the organisation improves; workers find greater job
satisfaction; teamwork is strengthened; management of changes runs more smoothly;
downsizing works; and turnarounds are more successful.
Understanding of employee motivation
Lindner points out in his journal, Understanding employee motivation, that for a
company to survive, it is important to keep the employees motivated. Motivating
employees is known as one of the most complex functions a manager can perform,
owing to the fact that these motives change. For instance, when an employee gets
older, interesting work could become more important than other factors, or when an
employees salary increases, money becomes less of a motivator.
Research was done by James Lindner to examine the importance of certain motivation
factors, using a descriptive survey method, at the Piketon Research and Extension
Centre and Enterprise Centre at the Ohio State University. The target group was asked
to rank the factors from the most motivating to the least motivating. The following
reflects the order the respondents gave from most to least motivating:

Interesting work. Managers can motivate employees through interesting work. Work
can be interesting when jobs are well designed and when specific goals are specified.

Good wages. Companies attempt to increase employee motivation and performance

by linking incentive pay to increases in performance. In studies of motivation,
compensation has always been and certainly still is an important motivator, but not
the only one. Money itself cannot guarantee productivity among employees. As
Herzberg mentions, money can only be a short-term satisfier

Appreciation of work well done. This can be achieved through giving the employees
feedback, recognition, reward and promotion. The need for appreciation for a job well

39

done from the managers can be more important than the need for a pay rise for
todays employees.

Job security. As mentioned earlier, companies lay off employees, downsize, and reengineer to save costs and to be competitive. Companies can increase employee
motivation by giving certain levels of job security.

Good working conditions. Working conditions are a primary concern of

Management as they can determine employees performance and productivity.

Personal loyalty to employees. The instability of employment reflects a change in

employers views towards the employment relationship. Motivating employees
through loyalty can be done by sharing information and celebrating successes, which
give the employees a sense of ownership. Celebration can help to bring employees
and the company closer together, hence improving the relationship.

Tactful discipline. In this case, managers attempt to keep the employees

performance at acceptable levels by using discipline.

Sympathetic help with personal problems. Showing interest in employees and their
needs is an essential step in establishing positive relationships. Managers get their
work done through employees. If managers do not know what employees need, they
may also not know what motivates them.

Promotions and growth in the company. Training and development help growth in a
company. Both the employees and the company benefit, not just in the present, but
also in the future.

Feeling of being in on things. This can be done through empowerment

encouraging decision-making among employees. Empowerment is so important
because a company needs its employees knowledge, experience and skills and their
commitment to the company.

40

CARE model for motivating employees

With studies in motivation and retention, Glanz (2002:31) developed a CARE model
that assists managers in motivating and retaining employees. CARE is an acronym
made up from the words:

Creative communication: Research done by Runzheimer International found

that the average manager spends 80 percent of his or her time communicating.
Glanz explains that effective communication contributes to a healthy and
cooperative work environment. Managers must therefore be open and honest
in their communications with employees.
Atmosphere and appreciation: In all the current research on what motivates
employees and keeps them productive, appreciation is always one of the top
three desires. Nelson also mentions that a feeling of appreciation and
recognition is important.
Respect and reason for being: When managers focus on employees as
individuals, they begin to treat the employees with respect. Managers need to
learn about employees and their strengths. Employees now search for the
meaning of their work, and the reason for being at work. As OReilly III and
Pfeffer state, To the extent that any organisation can truly unleash the hidden
value in its people, it will increase its chance of success. Empathy and
enthusiasm: To value employees more as human beings is important in todays
motivation management. When companies care for employees personal needs
and help to provide the resources to fulfill these needs, employees are loyal
and therefore more motivated. Managers must thus constantly assess the needs
of their employees and understand what they want in order to keep them
motivated.

41

1.12

Changes in the world of work

Changes in the organization

The above section describes the changes that are reshaping todays economy. These
changes have also affected todays organizations. Understanding these changes could
help managers to minimize the negative effects and to capitalize on the positive
effects that the changes are having on the company.

Externalization of risks
Companies in the 1960s and 1970s owned and controlled the business as much as they
could. IBM was one of the examples. To maintain maximum control over the
operation, the company created centralized departments to monitor the decisions
made by the lower management levels. Two of the disadvantages of this strategy are
exposure to business risks and inflexibility. To overcome this, companies today
externalize risks by outsourcing. Outsourcing occurs when a company contracts
outside companies to provide resources or services. However, the company should
take care not to lose its strategic skills or advantages. With outsourcing, companies
are able to focus on their strengths and emphasize their core competencies.
Companies have now recognized the importance of leasing or buying services or
products from other companies when striving to meet cost-reduction and growth
objectives.

Work flexibility
As Locke and Latham indicate in their integrated model of work motivation, it is
important to understand employees needs. Flexible benefit programmers, flexible
working hours, family-friendly programmers and bonus pay are designed to motivate
employees to be satisfied and become high performers. Working-time flexibility
refers to managements use of variable working hours to meet the companys
demands. The practice of flexible working is becoming more popular for economic,
industrial and social reasons. The growing globalization requires companies to
operate in different time zones around the clock; customers are demanding later
opening hours and greater accessibility, especially from the service and retail sectors;
competitive pressures in the manufacturing sectors require expensive equipment to

42

operate for the maximum period to save costs; and there is a stronger need for both
men and women to balance their family and work. There has been a great deal written
and spoken about work and life balance in recent years. Research suggests that
helping employees to balance their work and family life can result in better
performance; increase productivity and reduce absenteeism; while the company can
recruit and retain skilled employees more easily.

Teamwork
Effective teamwork has been a key factor in business success. Today, a lot of
managers use teams to solve problems, generate ideas and complete jobs. Teamwork
offers opportunities for job enrichment, gives autonomy to employees, decreases the
workload of supervisors and may also enhance performance on difficulty or
complicated tasks .Team is defined by Thiagarajan and Parker as a group of people
with a high degree of interdependence geared toward the achievement of a goal or the
completion of a task. Employees working in teams help to increase flexibility in
companies. A recent survey shows that 73 percent of the companies in the United
States have some of their employees working in teams. Employees lose sight of the
big picture when they are divided into departments. When employees work in teams,
both horizontal and vertical hierarchical barriers are broken down, allowing the
company to respond faster to changes and permitting better coordination in activities
between departments. Since unclear or misleading directions usually cause team
failure, managers need to communicate the vision, mission and the values clearly to
the employees when organizing teams.

Downsizing
Another issue to be addressed is downsizing. Downsizing is a management practice in
which companies reduce the size of a company by laying off employees. The focus
may be monetary costs, time costs, or technological costs. This management strategy
has becoming popular, but managements motivation for this is not always obvious.
Some critics believe that downsizing is a way for management to show the
stockholders that there is a need to keep costs down. Supporters of this strategy argue
that employee reductions are needed to maintain competitiveness in the fast-changing
global marketplace. Companies are strategically reducing operations that are overemployed while increasing employees in areas that add value. Downsizing is likely to

43

have some undesirable outcomes as it affects employees morale,

motivation and productivity; service delivery, because of the loss of
skilled employees; and departmental planning. Many people who have been laid off
by big companies choose to start their own businesses. Purchasing a franchise allows
them to run their own businesses with less risk because of the support provided by the
franchiser. When companies are busy downsizing, they are in fact also facing a labour
shortage. The employees who are being laid off do not have the skills that the
companies need to be competitive. Lawler identifies the two powerful forces that are
causing the increasing shortage of knowledge-skilled employees: workforce
demographics and education. Many developed countries, for example, Japan, Italy
and Germany, are experiencing a high percentage of their workforce entering or
having already entered the age of retirement. This shift is a result of both low birth
rates and longer life expectancies. Although some of the retirees can still stay in the
workforce, they do not necessarily have the up-to-date knowledge to meet the needs
of the companies. The second force comes from a lack of education. The schooling
system is not producing enough well-educated students to perform the type of work
required in todays business world, especially people who can do technical and
engineering work. The importance of a highly skilled workforce must not be
undervalued. In the old business environment, many jobs did not need to be
performed by highly skilled employees, so the need for the highly talented was
limited. However, the situation is different now with the challenges that technology
has brought. The growth of knowledge and technology and the demands for an
educated workforce will definitely continue to grow.

Changes in todays employees

The changes that have reshaped the economy and the organisation have redefined the
term employee. The term multi-skilling implies a higher level of flexibility for a job
in a company. This happens usually in activities which require unskilled to skilled or
technical expertise. In the past, companies were stable and it was preferable for
employees to have a narrow set of specific skills in order to perform repetitive tasks.
Today, companies need employees with multiple skills to handle a variety of job
tasks, rather than specialists. The more skills an employee has, the better he or she can
help the company to achieve its goals and the more valuable he or she is in the job

44

market. As mentioned earlier, being a team player has becoming increasingly

important for companies that organize around teams. Therefore skills such as problem
solving, group decision-making skills, conflict-solving skills and interpersonal skills
are especially needed to contribute to high-performance teams. Effective managers
should communicate the companys vision, goals, and business strategy with the team
and link these with the teams mission. This gives the team members clear direction,
purpose and security. Team members perform best when they know what is expected
from them and what they can expect from the company.
The changing world of work implies longer working hours, less family time and more
stress. To keep costs low, companies have been downsizing and re-engineering,
causing many employees to work harder in order to stay in their company. Also,
companies delegate more tasks to the highly skilled employees, usually resulting in
stress for the employees. Employees often struggle to cope with the pressure and
stress due to an increased amount of work and to high levels of insecurity. This could
also cause alienation. Alienation implies a feeling of powerlessness, meaninglessness
and even social isolation.
The changes in the world of work have also brought changes to peoples attitudes
towards work. Krech and Crutchfield define attitude as an enduring organisation of
motivational, emotional, perceptual and cognitive processes with respect to some
aspect of the individuals world. There are numerous theories and models that have
been developed on attitudes in general and particularly on work. Katz and Kahn
suggest that attitudes and motivation are intertwined. Motivation needs to be
maintained by the managers to create a working environment where employees will
have positive attitudes. Peoples values and attitudes towards work have changed in
todays world. Many people no longer want long term relationships with
organizations. On average, people used to have three or four jobs during their careers,
but this is now increasing as people become more mobile. To decrease the turnover
rate, managers should understand what employees are looking for in their jobs.

45

1.13

Ten ways to motivate todays employees

Every theorist and manager has his or her own way of motivating employees. There
are 10 ways to motivate todays employees they are:

Give personal thanks to employees for a job well done in verbal form, in
writing, or both, in a timely manner and sincerely.
Be willing to take time to communicate with the employees.
Provide feedback on the performance of each individual employee, the
department and the whole organisation.
Create a work environment that is open, trusting and creative.
Provide information on the company and how the person fits in with the
overall plan, in other words, be transparent.
Encourage decision making among the employees.
Create a sense of ownership in the work and the work environment.
Provide recognition and reward, and promote employees based on their
performance.
Create a learning organisation and a partnership with each employee.
Celebrate the successes of the company, the department and the individuals in
it.

46

RESEARCH METHODOLOGY

(2)
Title

The study on employees motivation among the 40 employees of madhur diary

SIGNIFICANCE OF THE STUDY

Employee motivation is central to many aspects of industrial and organizational
development the individual performance and growth in the organization influenced by
varied function constant changing environment have also an influence on individual at
personal level According to scientific management employee motivation is based on
most pragmatic an essential pessimistic philosophy that man is maintained by money.
The individual involvement, loyalty, dedication to job and organization seed to be low
key affair, the loyalty, dedication and involvement leads to organization effectiveness
productivity as well as individual growth and enhancement. Employee motivation is
commonly measured in seven areas that is physical, salary and perks, promotion,
policy, job security, work interest, relation, welfare facilities. Studying employee
motivation which influence and determine human behavior in worth because
ultimately all the aspects related to employee motivation ultimately leads to good
industrial relationship enhances inter personal relation ultimately leads to increase
productivity and growth of the organization.
Thus the study is an attempt to explore various factor which can affect industrial
development especially related to employee motivation which can be helpful to all
those and especially industrial social workers to find out effective measures and
solution to deal with the loopholes and obstacles in gaining effective work.

OBJECTIVE OF THE STUDY

To study the level of employee motivation

To study level of financial motivation non financial motivation

To study how supervisor can influence motivation

To know what are the de-motivation factor in madhur dary

47

SAMPLING METHOD
Researcher has selected respondents randomly that is why simple random sampling
method is used.

SAMPLE SIZE
Sample of present study consists 40 respondents of various departments of madhur
Dairy

RESEARCH DESIGN
This study is exploratory and descriptive in nature.

VARIABLES
(1). Independent: Sex, age, income
(2). Dependant: Employee motivation.

TOOLS OF DATA COLLECTION

Primary tool: Interview schedule
Secondary tool: library, books, journals, internet, news paper, magazines

OPERATIONAL DEFINITION
Specter (1997) defines employee motivation simply as the degree to which people
like their jobs.

LIMITATION OF THE SUTDY

Time constraint was one of the limitations during the data collection.
Responses received were not free from respondent biases because of their
apprehension that it might affect their career.

48

CHAPTERISATION
The presentation of report is divided into the following chapters:

CHAPTER-1 INTRODUCTION & RESEARCH METHODOLOGY

In chapter 1 introduction part given a information about concept, factors which affects
to employee motivation, causes, measuring of employee motivation, importance,
theories of employee motivation
CHAPTER-2 REVIEW OF LITERATURE
Review of literature also refers by research for to get brief review and appraisal of the
related studies and to see what present study contributes more knowledge further in
the areas under study.
CHAPTER-3 RESEARCH SETTING
This chapter also has given a information about the universe of study, the area in
which researcher done study and related information.
CHAPTER-4 DATA ANALYSIS AND INTERPRETATION
It is a main aspect of study, it indicates the analysis of data and interpreted and on that
basis researcher come at the finding and suggestion for subjective study.
CHAPTER-5 SUGGESTIONS & CONCLUSIONS.
These chapter indicates the results of the study, and given a recommendation for the
purpose of reduce problems, effective work, improvement in some area like on
production related, policy, rules, provided adequate facilities etc, and last conclusion
covers the all over summary of the study.

49

50

In this section I will describe and explain the concepts, models and theories that are relevant
in the field of motivation and necessary to facilitate a comprehensive analysis and
Understanding of the research question .It may be useful to conceptualize the term financial
Motivation and what its concepts are. A broader definition of motivation will be introduced.

What is motivation?
According to Greenberg and Baron (2000 p190) this definition could be divided
into three main parts. The first part looks at arousal that deals with the drive, or
energy behind Individual (s) action. People turn to be guided by their interest in
making a good impression On others, doing interesting work and being successful in
what they do. The second part referring to the choice people make and the direction
their behavior takes. The last part deals with maintaining behavior clearly defining
how long people have to persist at attempting to meet their goals.
Kreitner (1995), Buford, Bodleian &Linder (1995), Higgins (1994) all cited in Linder
(1998,p3) defined motivation as the psychological process that gives behavior
purpose and Direction, a predisposition to behave in a purposive manner to achieve
specific unmet needs, An unsatisfied need, and the will to achieve, respectively.
Young (2000, p1) suggest that motivation can be defined in a variety of ways,
depending on Who you ask .Ask some one on the street, you may get a response like
its what drives usor its what make us do the things we do. Therefore motivation is
the force within anindividualthat account for the level, direction, and persistence of
effort expended atwork.z10Halepota (2005, p16) defines motivation as a persons
active participation and commitments achieve the prescribed results.Halepota further
presents that the concept of motivation is abstract because different strategies produce
different results at different times and there is nosingle strategy that can produce
guaranteed favourable results all the times. According to Antonioni (1999, p29), the
amount of effort people are willing to put in their Work depends on the degree to
which they feel their motivational needs will be satisfied. On the other hand,
individuals become de-motivated if they feel something in the organization Prevents
them from attaining good outcomes.
It can be observed from the above definitions that, motivation in general, is
more or less basically concern with factors or events that moves, leads, and drives
certain human action or Inaction over a given period of time given the prevailing
conditions. Furthermore the definitions sugge st that there need to be an invisible
force to push people to do something inreturn. It could also be deduced from the
definition that having a motivated work force or creating an environment in which
high levels of motivation are maintained remains challenge for todays management.
This challenge may emanate from the simple fact that motivation is not a fixed trait
as it could change with changes in personal, psychological ,financial orsocial factors.
For this thesis, the definition of motivation by Greenberg & Baron (2003) is adopted,
as it is more realistic and simple as it considers the individual and his performance.
Greenberg&Baron defines motivation as:

51

The set of processes that arouse, direct, and maintain human behavior towards
attaining some goal. (Greenberg &Baron, 2003, p190) Bassett-Jones &Lloyd (2005,
p931) presents that two views of human nature underlay early research into employee
motivation. The first view focuses on Taylorism, which viewed people as basically
lazy and work shy, and thus held that these set of employees can onlybe motivated
by external stimulation. The second view was based on Hawthorn findings, which
held the view that employees are motivated to work well for its own sake as well as
for the social and monetary benefits this type of motivation according to this school
was internally motivated.

Motivation theories
Even though much research been conducted on the field of financial motivation
and many researchers and writers have proposed theories on the concept of financial
motivation, and its role in enhancing employees performance in every organization
some of these models have been widely used and accepted by todays organizations
leaders. In this thesis discussion on some of the motivational theories will include
Alders (ERG theory), Maslow (Need theory), Vrooms (Expectancy theory), Adams
(Social equity theory), Taylor (productivity theory), Herzberg (Two factor theory),
Mac Gregory (theory X and Y), Geog pales (path goal theory) and skinner (Reward
theory). To better understand this discussion a summary of the theories is presented
and an indebt discussion on Maslow and ERG theories on which I base my thesis
overlooked.
Alder asserts in his Existence relatedness and growth theory commonly known as
the ERG theory that there are three basic human needs: Existence, relatedness and
growth, which must be meet by an employee to enable him, increase performance.
Maslow (1943) suggests that human needs can be classified into five categories and
that these categories can be arranged in a hierarchy of importance. These include
physiological, security, belongings, esteem and self-actualization needs. According to
him a person is motivated first and foremost to satisfy physiological needs. As long as
the employees remain unsatisfied, they turn to be motivated only to fulfill them.
When physiological needs are satisfied they cease to act as primary motivational
factors and the individual moves up the hierarchy and seek to satisfy security needs.
This process continues untfinallyselfactualisation needs are satisfied. According to
Maslow the rationale is quite simple because employees who are too hungry or too ill
to work will hardly be able to make much a contribution to productivity hence
difficulties in meeting organizational goals. Vroom (1964) proposes that people are
motivated by how much they want something and how likely they think they are to
get it he suggest that motivation leads to efforts and the efforts combined with
employees ability together with environment factors which interplays resulting to
performance. This performance interns lead to various outcomes, each of which has
an associated value called Valence.
Adams (1965) on his part suggests that people are motivated to seek social
equity in the Rewards they receive for high performance. According to him the
outcome from job includes; pay, recognition, promotion, social relationship and
intrinsic reward .to get these rewards various inputs needs to be employed by the
employees to the job as time, experience, efforts, education and loyalty. He suggests
that, people tend to view their outcomes and inputs as aratio and then compare these

52

ratios with others and turn to become motivated if this ratio is high.Taylor (1911)
observed the soldering by employees, which is a situation whereby workers work less
than full capacity. He argued that soldering occurs due to the fact employees fear that
performing high will lead to increasing productivity, which might cause them to lose
their jobs. This slow paces of work where promoted by faulty systems however this
situation is not what prevails with contemporary employees who organizations
evaluate them through their performance.
Herzberg suggested that there are factors in a job, which causes satisfaction. These he
called Intrinsic factors (motivators) and other factor he refers to as dissatisfies
(hygiene factors). According to him if the motivational factors are met, the employee
becomes motivated and hence performs higher. Mac Gregory suggested that there
exist two sets of employees (lazy and ambitious employees) with lazy employees
representing theory X, hard and ambitious workers representing Y. According to him
the lazy employee should be motivated to increase performance in an organization
Geog opalaus path Goal theory of motivation states that, if a worker sees high
productivity as a path leading to the attainment of one or more of his personal goals,
he will turn to be a high Producer. But if he sees low productivity as the path leading
to the attainment of his goal he will turn to be a low producer and hence needs to be
motivated.
This discussion on the above motivational theories explains the fact that the concept
of Employees motivation has been a critical factor addressed by previous authors as
what determines the core competence of every organization in achieving a
competitive position. Skinner who propounded that any behavior that is rewarded
tends to be repeated supported This view. The term motivation has been used in
numerous and often contradictory ways. Presently there appears to be some
agreements that the crucial thread that distinguishes employees Motivated behaviors
from other behavior is that it is goal directed behavior, Bindra (2000 P223) argues
that the core of motivating individuals lays in the goal-directaspectofbehaviour.Jones
suggested motivation is concern with how behavior gets started, is energized, is
Sustained, is directed, is stopped and what kind of subjective re-action is present in
the organization while this is going on. The Jones statement can be converted into a
diagram Which shows the employee motivational process as it influences
performance.
The process of employees motivation
Search
The figure illustrates that the process begins because of tension within drives or
needs of an employee. Next there is a search within the company or groups or within
employee tofulfilhis desires. When the employee is satisfied with his financial
motivation he redefines his desires and needs and the process is initiated again. These
groups of researchers were over the years divided into what was later labeled the
Content and process theories of motivation. According to steers, mowday &Shapiro

53

Tension or drive
To fulfill or need
Fulfillment and
Re-definition of needs
Goal directed
Behavior

(2004,p382) the process generated during this period, makes this period referred to as
the golden age of work motivation theories. Never before and, some would argue,
never since has so much progress been made in Explicating the aetiology of work
motivation (steers et al., 2004, pp380-383)
Bassett-Jones & Lloyd (2005,p 932) suggests that the content theorists led by
Herzberg, assumed a more complex interaction between both internal and external
factors, and explored the circumstances in which individuals respond to different
internal and external stimuli. On the other hand, process theory, where victor Vroom
was the first exponent considers how factors internal to the person result in different
behaviours. From the focus point of these two groups, one could observe that the
process theories attempt or try to understand the thinking processes an individual
might go through in determining how to behave in a workplace. The primary focus
was on how and why questions of motivation,how a certain behaviour starts,
developed and sustained over time.It is true that human behaviour in general is
dynamic and could affect the individualspersonal altitude as well as factors
surrounding that individual. These exogenous factors eminent from the environment
in which the individual operates generate stimuli to employees.
It is my belief that employees in general are goal seeking and look for challenges and
expect Positive re-enforcement at all times. Hence it could only be of benefit if
organisations could provide these rewards and factors. Though I have discussed
earlier in this thesis that employees are financially motivated, motivation could be
seen as a moving target, as what Motivates differs among different people. And may
even change for the same person over a given period of time, developments within the
modern organisation has probably made Motivating employees ever more difficult
due to the nature of every individual, behaviourincreasing the complexity of what can
really motivate employees. According to Bassette-jones & Lloyd (2005,p.932)
expectancy, equity, goal setting and reinforcement theory have resulted in the
development of a simple model of motivational alignment. The model suggest that
once needs of employees are identified, and organizational objectives and also satisfy
employee needs .If poorly aligned, then low motivation will be the Outcome.
According to (Wiley, 1997,p264) modern approaches to motivation may be
organised into three related clusters: (1) personality-based views (2) cognitive choice
or decision approaches and (3) goal or self-regulation perspective; where personalitybased views emphasize the influence of enduring personal characteristics as they
affect goal choice and striving. Workplace behaviour is posited to be determined by
persons current need state in certain Universal need category. Cognitive choice

54

approaches to work motivation emphasize two determinant of choice and action;

expectations, and subjective valuation of the consequences associated with each
alternative. These expectancy value theories are intended to predict an individual
choice or decision. Goal framework to work motivation emphasis the factors that
influence goal striving which focuses on the relationship between goals and work
behavior.
The assumption is that an employees conscious intentions (goals) are primary
determines of Task-related motivation since goals directs their thoughts and action.
It is worth noting that an in-depth review of all the different theories mentioned
above, is beyond the scope of this thesis. However, the personality-based perspective
of work motivation within which Maslow need theory of motivation and Alders ERG
theory falls will provide the main support and serve as a foundation for the research
reported in this thesis. Specifically, as organisational scholars have paid a great deal
of attention to the idea that people are motivated to use their jobs as mechanisms for
satisfying their needs. This thesis intend to use Maslows hierarchy of need theory of
motivation as a foundation to identify the factors that motivate todays employees,
and in the process determine a ranking order of factors that motivates these
employees, the original Maslow theory will be looked at more detail hereof.

History and Explanation of Maslows Hierarchy of Need

Theory
The motivation to work published by Maslow probably provided the field of
organizational behaviour and management with a new way of looking at employees
job altitudes or behaviours in understanding how humans are motivated. Probably the
best-known Conceptualization of human needs in organizations has been proposed by
this theory. Abraham Maslow was a clinical psychologist, who introduced his theory
based on personal judgment which was generally known as the need hierarchy
theory. According to him if people grew in an environment in which their needs are
not met, they will be unlikely to function as healthy individuals or well-adjusted
individuals. This idea was later applied to organizations deemphasize the idea that
unless employees get their needs met on the job, they will not functions effectively as
possible.
Specifically Maslow theorised that people have five types of needs and that these are
activated in a hierarchical manner. This means that these needs are aroused in a
specific order from lowest to highest, such that the lowest-order need must be fulfilled
before the next order need is triggered and the process continues. If you look t this in
a motivational point of vie Maslows theory says that a need can never be fully met,
but a need that is almost fulfilled does not longer motivate. According to Maslow you
need to know where a person is on the Hierarchical pyramid in order to motivate
him/her. Then you need to focus on meeting that persons needs at that level (Robbins
2001)According to Greenberg and Baron (2003,p192) the five needs identified by
Maslowcorresponds with the three needs of Alderfers ERG theory. Where as Maslow
theory specifiesthat the needs be activated in order from lowest to highest Alders
theory specifies that theneeds can be activated in any order. His approach is much
simpler than Maslows. Alder specifies that there exist three main needs as opposed to
five postulated by Maslow. Thishuman basic needs include existence, relatedness and
growth. These needs according to Alderneed not necessarily activated in any specific

55

order and may be activated at any time. According to him Existence needs
corresponds to Maslows physiological needs and safety needs. Relatedness needs
corresponds to Maslows social needs and growth needs corresponds to esteem and
self-actualization needs by Maslow Below is a summary of these needs that in this
thesis are divided into Deficiency needs (Psychological, safety, social needs) and
Growth needs (esteem, self-actualization needs). Factors Explanation
Physiological needs are the need at the bottom of the triangle and include the
lowest order need and most basic. This includes the need to satisfy the fundamental
biological drives such as food, air, water and shelter. According to Maslow
organizations must provide employees with a salary that enable them to afford
adequate living conditions. The rationale here is that any hungry employee will hardly
be able to make much of any contribution to his organization.
Safety needs this occupies the second level of needs. Safety needs are activated
after Physiological needs are met. They refer to the need for a secure working
environment free from any threats or harms. Organizations can provide these need by
providing employees with safety working equipment e.g. hardhats, health insurance
plans, fire protection etc. The rationale is that employees working in an environment
free of harm do their jobs Without fear of harm.
Social needs: This represents the third level of needs. They are activated after
safety needs are met. Social needs refer to the need to be affiliated that is (the needed
to be loved and accepted by other people). To meet these needs organisations
encourage employees Participation in social events such as picnics, organisations
bowling etc
Esteem needs this represents the fourth level of needs. It includes the need for selfrespect and approval of others. Organisations introduce awards banquets to recognize
distinguished achievements
Self-actualization: This occupies the last level at the top of the triangle. This refers
to the need to become all that one is capable of being to develop ones fullest potential.
The rationale here holds to the point that self-actualised employees represent valuable
assets to the organization human resource. Most research on the application of need
theory found that although lower-level managers are able to satisfy only their
deficiency needs on the jobs, managers at the top level of Organizations are able to
satisfy both their deficiency and growth needs (Greenberg &Baron 2003 p.194) this
view was supported by Shipley & Kelly (1988, p.18) Shipley & Kelly (1988, p.18)
argue that as need satisfaction is an attitude, and that it isperfectly possible for a
worker to be satisfied with his/her need, but not be motivated the Reverse of which
holds equally true. Hence, need satisfaction and motivation are not synonymous and
both need fulfillment and un- fulfillment can have negative as well as
positiveinfluence on motivation

56

Organizational /managerial Applications of Maslows Need theory

The greatest value of Maslows need theory lies in the practical implications it has for
every Management of organizations (Greenberg & Baron 2003 p.195). The rationale
behind thetheory lies on the fact that its able to suggest to managers how they can
make their employees or subordinates become self-actualized. This is because selfactualized employees are likely to work at their maximum creative potentials.
Therefore it is important to make employees meet this stage by helping meet their
need organisations can take the following Strategies to attain this stage

Recognize
employees
accomplishments:
Recognizing
employees
accomplishments is an important way to make them satisfy their esteem needs. This
could take the form of awards, plagues etc.. According to (Greenberg & Baron 2003,
p197) research carried out in GTE Data services in Temple Terrace, Florida shows
that awards are given to employees who develop ways of improving customers
satisfaction or business performance. But it should be noted that according to
Greenberg &Baron awards are effective at enhancing esteem only when they are
clearly linked to desired behaviours. Awards that are too general fail to meet this
specification.
Provide financial security: Financial security is an important type of safety need. So
Organizations to motivate their employees need to make them financially secured by
involving them in profit sharing of the organization. In a research carried out with
AT&T and Wang showed that 50% of their employees received financial
outplacement services to assist laid-off employees in securing new jobs.
Provide opportunities to socialize: Socializations is one of the factors that keep
employees feel the spirit of working as a team. When employees work as a team they
tend to increase their performance. Research conducted on IBM shows that it holds a
family day picnic each spring near its Armonk, New York headquarters.
Promote a healthy work force: Companies can help in keeping their Employees
physiological needs by providing incentives to keep them healthy both in health and
mentally. In a research carried out at the Hershey Foods Corporation and Southern
California Edison Company showed that Employees are provided with insurance
rebates with health lifestyles while extra premiums were given to those with risk
habits like smoking.

Criticisms of Maslows Need theory of motivation

Maslow proposed that if people grew up in an environment in which their needs are
not meet,they would be unlikely to function healthy, well-adjusted individuals.
Research testingMaslows theory has supported the distinction between the
deficiencies and growth needs butShowed that not all people are able to satisfy their
higher-order needs on the job. Accordingthe results of the research managers from
higher echelons of organizations are able to satisfyboth their growth and deficiency
needs lower level managers are able to satisfy only theirdeficiency needs on the job.
Maslows theory has not received a great deal of support withrespect to specific

57

notion it proposes (Greenberg &Baron 2003, p195). To them this model is theorized
to be especially effective in describing the behavior of individuals who are high
ingrowths need strength because employees who are different to the idea of increasing
their growth will not realize any physiological reaction to their jobs. Centers &
Bgental (1966, .193) in their carried out among a cross-section of the Working
population in Los Angeles, posited survey background factors, altitudes and
aspirations affects workers needs, expectations and situation assessment. According
to Graham &Messner (1998, p.196) there are generally three major criticisms directed
to the need theoryand other content theories of motivation. (A) There is scant
empirical data to support their conclusions, (b) they assume employees are basically
alike, and (c) they are not theories of motivation at all, but rather theories of job
satisfaction. This was supported by the views of Nadler & Lawler (1979) in Graham
&Messner (2000, p 188). Nadler & Lawler (1979) cited in Graham & Messner (2000,
p.198) where also critical of theneed theory of motivation. They argue that the theory
makes the following unrealisticassumptions about employees in general that: (a) all
employees are alike (b) all situations arealike and that (c) there is only one best way to
meet needs. Another critic to this view wasBasset-Jones & Lloyd (2004, p 961).
Basset-Jones & Lloyd (2004, p 961) presents that in general, critics of the need theory
arguethat it is as a result of the natural feeling of employees to take credit for needs
met and dissatisfaction on needs not met. Nonetheless and regardless of the heavy
criticism levied at the hierarchy of need theory, I Believe that this theory has a made a
significant contribution in the field of organizational behavior and management
especially in the area of employee motivation and remains attractive to both
researchers and managers alike. The incorporation of the need theory intothe work
environment today could be as a result of the contributions made so far by
MaslowsHierarchy of need theory.

Empirical studies on employee motivation using the original and

Adapted Maslows model
If any person has to come up with the question that is there any need for employees
motivation? The answer to this type of question of-course should be simple-the basic
survival of every organization be it public or private limited before, today and in the
foreseeable future lies in how well its work force is motivated to meet the objectives
of the organization. This explains why the human resource department in todays
organization is became a focus of its core functions. I think that motivated employees
are needed in this rapidly Business world where the principal-agent conflict is the
issue confronting most managers. Most organisationsnow consider their human
resources as their most valuable assets (a strategic or competitive advantage).
Therefore, in order to effectively and efficiently utilize this strategic asset, I believe
managers and the organization as a whole, must be able and willing to understand and
hopefully provide the factors that motivate its employees within the context of the
roles and duties they perform. This is because highly motivated employees are the
cause of high productivity levels and hence higher profits for the organization. Having
noted this rationale the next question one may ask are what factors motivated todays
employees?
According to Wiley (1997, p265) at some point during our lives, virtually every
person may have to work. He claims that working is such a common phenomenon that
the question what Motivates people to work is seldom asked. Wiley went on to say

58

that we are much moreLikely to wonder why people climb mountains or commit
suicide than to question themotivational basis of their work,. Therefore, exploring
the altitudes that employees holdconcerning factors that motivate them to work is
important to creating an environment thatencourages employee motivation. From the
much amount of literature available on employee motivation, it is clearly evidentthat a
lot of surveys regarding employees and what motivates them have been undertaking.
These employee motivation surveys have been conducted in many different job
situations,among different categories of employees using different research methods
and applications. One of the very first survey to be conducted was on industrial
workers by (Hershey & Blanchard, 1969) over the years, similar or different survey
employees have been carried outsee (Kovach, 1987, 1993) (Wiley, 1995), (Lindner,
1998, 1999) According to a research carried out by Kovach on industrial employees
who were asked torank ten job rewards factors based on personal preferences where
the value 1 represented most preferred and 10 being the least preferred. The results
were as follows (1) full Appreciation of work done (2) feeling of being (3)
sympathetic help with personal problems(4) Job security (5) Good wages and salaries
(6) interesting work (7) promotion & Growth (8)employees loyalty (9) Good
working conditions (10) tactful discipline During the periods of (1946, 1981 & 1986)
when employee surveys were carried out, Supervisors were at the time asked to rank
job rewards, as they taught employees would rankthem. The rankings by the
supervisors were relatively consistent for each of the years. Theserankings were as
follows: (1) Good wages (2) Job security (3) promotion and Growth (4)working
conditions (5) interesting work (6) personal loyalty to employees (7) tactfuldiscipline
(8) full appreciation (9) sympathetic help with personal problems (10) recognition
(Kovach 1987 p.49-54) The results from the supervisor survey indicated that their
ranking had not changed over theStudy period with regards their collective perception
of factors that motivate employees. Thisshows that they had a very inaccurate
perception of what motivates employees but also thatthey did not realise the
importance of the need theory In a survey by Wiley (1997, p.278) in which
approximately 550 questionnaires were Administered to person employed at different
industries and divided into 5 subgroups, or Categories namely: (occupation, gender,
income levels, employment status and age) they were asked to rank 10 factors
according to the level of importance each is in motivating them toperform best with
the most important factor ranked 1 and the least important ranked 10th. The survey
concluded with the following collective rank order by respondents: (1) Good wages
(2) full appreciation of work done (3) job security (4) promotion (5) interesting work
(6) company loyalty to employees (7) Good working conditions (8) tactful discipline
(9)recognition (10) sympathetic help with personal problems
The results from a representative sample of the labour force in seven different
countries byHarpaz (1991 p.75) showed that the two most dominant work goals were
interesting work and Good wages; He further concluded that these two factors
were consistent across different Organizational levels, between genders and age
groups.Quinn (1997) also cited in Harpaz (1991 p.311) concluded, When the ratings
of twenty three job related factors (including the need factors) were carried out, the
conclusion reached was that no single factor was pre-eminently important. He further
pointed out that, The most aspect of the worker job was that of sufficient resources to
perform a task. From the above studies presented so far, the rankings by different
subgroups have shown semantic differences in the importance placed on different
motivational factors. For example (Kovach, 1987, Wiley, 1997 and Harpaz, 1990)

59

.The discrepancies in these research findings supports Nelsons (2001, p.2) positional
view that what motivates employees differs and may change for the same employee
over time. It is appropriate at this level to give a brief summary of the previous
researches in this thesis. Even though the original need hierarchy theory was
presented some 50 years ago, some of its if not all factors remain of significant
importance to employees today. The large number of earlier and recent studies
investigating employee motivation using sometimes the original or modified version
of Maslows theory, may continue the appreciation of this theory and the issue of
employee motivation. The literature also shows that where the original theory was
lacking (short comings or criticised for), has been greatly taken into consideration.
Researchers have taken issues such as differences in gender, age, income, culture &
countries etc and how these may affect or influence employee work motivation
extensively. The commonality between these previous researches is the agreement
that certain factors are more important as motivational factors than others and that
these factors may change from one employee to another. These previous studies have
also been taken using different methods, from surveys, questionnaires, face-face
interviews, but their outcomes have not differed significantly. A possible explanation
could be due to the fact that even though these studies were carried out using different
methods and target population, the motivators factors remain same. The literature
used in this thesis covers a wide range of time period, highly relevant and useful for
addressing the purpose of this thesis

60

61

HISTORY OF MADHUR DAIRY

The gandhinagar district co-operative milk producers union ltd. Was established and
registered on 06/02/1971 under Gujarat state co-operative act,1961 by some prominent cooperators of gandhinagar district with limited members and limited societies with 3000 LDP
procurement of milk.
The first OWN processing plant was setup in 1983 at capital of Gujarat state,
gandhinagar city with the help of IDA and NDDB with the capacity of 30000 LDP of milk
processing plant. In 1992-93, they 1st began a movement of arranging village level meeting
to convince primary milk producer at their door step and it was a great moment.In 1996 the
plant capacity is expected up to 60000 LPD and than 2002-03 the plant capacity is again
expanded 200000 LPD. In 2000-01 approximately 100 villages were covered from the
district.

In 2003-04, there was change in the chairman & Mr. Rana occupied the

chairmanship.

62

MISSION & VISION

1. Mission is to pay maximum prices to milk producers.

2. Provide maximum customer satisfaction by quality of milk product diversification.

2.1 AWARDS & PRIZES

1994-95:-

Best productivity performance award by national productivity council for

liquid milk plant

1994-95:-

Award for best performance

1994-95:- Udhyog Rant award

Kohinoor of India award presented from the Indian economic development &
research association New Delhi (India) in 2008.
Rastriya sanman purskar with gold wedal 2008.
Bhaztiya udhyog Ratna award 2008.
Lifetime achievement award for industrial development 2008.
Bharat Gaurav award -2008.
International achieves award -2008.
Rajiv Gandhi shiromahi award -2009.

3 OBJECTIVES

To provide maximum services to customers

To monitor the process to ensure the environ safety.

To provide necessary resources required for management system to prove excellence

63

UNIT AT GLANCE LOCATION SELECTION:

Registration:6-2-1971
Location:Madhur Dairy
Sector-25

GIDC

To provide maximum services to milk producers

Gandhinagar
Pin:-382023

Form of Organization:Co-Operation Unit

Type Of-Unit:Milk Processing Unit
Registration No:108707
Number of Members:532

64

BOARD OF DIRECTORS:Dr. Rana Shankarsinh R.

Chairman

Mr. Gohil manuji Hemtuji

Director

Mr. Thakor Ataji Kacharaji

Director

Mr. Bihola Raghusinh Kalusinh

Director

Mr. Thakor Kesharben Shendhaji

Director

Mr. Thakor Taraben Govindji

Director

Mr. Parel Madhuben Hashmukhbhai

Director

Mr. Makwana Bhikhaji Hamirji

Director

Mr. Desai Virambhai Govindbhai

Director

Mr. Patel Hanshaben Ramanbhai

Director

Mrs. Chaudhari Dashrathbhai Motibhai

Director

Mrs. Patel Jashvantbhai Gangarambhai

Director

Mr. A. K. Dhagadh (Rep.-GCMMF)

Director

Mr. M. C. Shah

Director

(Rep.-NDDB)

Mr. ROHIT. Mehta

Managing Director

65

BANKERS OF MADHUR DAIRY

1. Panjab National Bank( Gandhinagar)

2. Ahmedabad Dist Co. Op. Bank.(Savings A/C, Patnagar)
3. Ahmedabad Dist. Co. Op. Bank ( Current A/C, Patnagar)
4. Ahmedabad Dist. Co. Op. Bank ( Head Office )
5.

Bank Of Baroda ( Vidhansabha Branch)

6. Ahmedabad Dist. Co. Op. Bank ( Gandhinagar Branch)

7. Ahmedabad Dist. Co. Op. Bank ( Chandkheda Branch)
8 State Bank Of India

66

ORGANISATION CHART OF MADHUR DAIRY

CHAIRMAN

B.O.D

GENERAL MANAGER

PRODUCTION

MARKETING

H.R

FINANCE

DEPARTMENT

DEPARTMENTT

DEPARTMENT

DEPARTMENT

PRODUCTION

MKG. MANAGER

MANAGER
A.G.M

R.M.I

FINANCE
MANAGER

ASSIST.
MARKETING
MANAGER

CLEARK
ASSIST.FINANCE
MANAGER

SUPERVISOR
WORKERS

SALES MANAGER

ASSIST.
MANAGER

WORKER

ACCONTANT
CLEARK

HELPER

CLEARK

67

WHAT IS PRODUCTION?
Production management is the process which combines and transforms various
resources used in production subsystem of the organization into value added product/
services in a controlled manner as per the policy of the organization.
Production function therefore is that part of an organization which ix
concerned with the transformation of a range of input the require outputs having the
requisite quality level.

MEANING: The meaning of the term Production and Production management

should be noted carefully.
According to EDWOOD BUFFA Production is process by which goods and
services are created.

Production management is the process of planning organizing, directing and

controlling the activities of the production function is the conversion of raw material
into finished products.

According to EDWOOD BUFFA, Production management deals with decision

making related to production processes so that the resulting good or services is
produced, according to specification, in the amount and by the schedule demanded
and at minimum cost.

It explains the following important, aspects of production

management.

A) It is a decision making managerial function.

B) Decisions are made, regarding the production processes required for converting the raw
materials into finished products.
The production or out-put should be according to specification in the quantities specified as
per the schedule and minimum

68

PRODUCTION DEPARTMENT CHART

69

PRODUCTION PROCESS

RAW MATERIAL
After collecting of milk laboratories check the fats and SNF of milk. So their some raw
material requirements are Milk, Salt, Acids, and some other chemicals.

PASTEURIZATION
After collecting, checking and conducting the laboratory test the Pasteurizing process is
conducted. The milk is passed through these Pasteurizing Machines with help of Water
Pumps. Here the milk is heated at 80 to 82 degree Celsius for 15 seconds after that it is
cooled at 4 degree Celsius. By this method they destroy the bacteria present in the raw milk.
After this process some milk goes to the separate machines and remaining to the packing
machine.
This method was invented by a scientist called JAMES PASTUE thats why this process is
known as Pasteurization.

SEPARATION
Separation machine separates two kinds of the products: skimmed milk and cream. This milk
is taken to the tanks. The milk in every tank has different proportion of SNF.
Whenever the milk is needed from tank it is tested in the laboratory and the deficit
proportion fat is added by mixing Cream.

70

PACKING PROCESS
Now in this necessary fats and SNF are added and packed in pouches of 500ml. The packed
pouches are kept in the basket. The milk goes to the packing machines through pipes. At
sporadic interval sample of pouches are weighed on the electronic weighing machine.
STORAGE
After packing various pouches the dairy has to store the fresh and packed milk. The milk
pouches are then taken to the cold storage under the temperature of 8 to 10 degree Celsius.
It is maintained with the help of fans having silicon chips. The pouches are stored here for
the whole night and in morning they are distribute

71

5 PRODUCTS OF MADHUR DAIRY

[1]

MADHUR Milk: Full Cream

Standard
Tond
Cow Milk
Flavored Milk

[2]

MADHUR Sweets: Penda

Chocolate Barfi
Rajvadi Penda
Rajvadi Halvo
Mohanthad
Magas
Kajukatri
Kaju Barfi

[3]

MADHUR Ghee:
Buffalo Ghee
Cow Ghee
Madhur Chhash

[4]

MADHUR Ice cream:

Vanilla
Kaju Drax
Butter Scotch
Kesar Pista
Strawberry
Cone
Candy

72

COLD STORAGE

In this plant the excess milk is packed. The milk cannot be distributed in to the whole sellers
at a time because it takes time reach out and beside the time at which milk is to be made
available to the customers is also to be considered. Therefore during the gap the milk is
stored in a cold storage of the unit. The temperature in the cold storage range from 5 degree
to 10 degree Celsius and in the night the milk is dispatched in the trucks.

MANUFACTURING PROCESS OF GHEE

In this process, it involves the milling of butter milk and boiling in

the ghee cattle at 107 degree processes it. Then it is to be balanced in tanks.
After this filling in presehling tank.
The process of ghee is clarified at first stage; the fasting of ghee is taken place at
this stage. After this is going to pack and it is dispatch to G.C.M.M.F. from the dairy.

The process of melting the

white butter in melting bowl.

Process of boiling butter

in ghee kettle
(105c. to 107c.)

73

Balance tank

Clarification

Tasting

Packing

Storage

Dispatch
Madhur Dairy is able to produce 15 TPD Ghee.

74

ICE-CREAM PROCESS:-

Boil milk in high temperature and add sugar in the milk After boiling process
add GMC and CMC powder to minting

thickness. When milk become cool then cream,

flavors and nuts are added. Then this mixture is put in to refrigerators for freezing process at
-18 c

75

QUALITY POLICY OF MADHUR DAIRY

Madhur Dairy is committed to...

Improve life style of member milk producers

Achieve highest customer satisfaction by consistent supply of good quality, safe

milk and milk products.

MADHR Dairy Achieves this by

Strengthening Co-Operative structure

Up gradation of processes and application of innovative techniques

Providing milk products and services par-excellence for total customer satisfaction.

Implementation of innovative welfare schemes and services for socioeconomic

development of milk products.

Application of eco-friendly processes and operations.

Development of motivated, dedicated and devoted work force.

76

77

Personal information
Table no-5.1. Table show gender wise distribution of respondent

Gender

Frequency

Percentage (%)

Male

31

77.5

Female

22.5

Gender

23%
male
female

77%

Above table shows that 77% percent (n=31) respondent belongs to a male-group of
percent

23% (n=9)

78

Table no-5.2 Table show age wise distribution of respondent.

Age

Frequency

Percentage (%)

18 to 25 years

20

26 to 35 years

15

37.5

36 to 45 years

11

27.5

Above 45 years

15

Total

40

100

percentage of age

15%

20%
18 to 25 years
26 to 35 years
36 to 45 years

27.5%

Above 45 years

37.5%

Above table shows that 20% percent (n=08) respondent belongs to age-group
of 18 -25, 37.5% percent (n=15) belongs to age-group of 26-35, 27.5% percent
(n=11) belongs to age-group of 36-45 while 15% percent (n=6) belongs to
age-group of above 45 years.

79

Table no-5.3 Table shows the educational qualification of the respondent.

Education

Frequency

Percentage (%)

S.S.S

18

45%

H.S.C

15%

Graduate

10

25%

Post Graduate

2.5%

Other

12.5%

Total

40

100%

Education
2.5%

13%

S.S.S
45%

H.S.C
Graduate

22.5%

Post Graduate
Other
15%

Above table shows that 45% percent (n=18) respondent had their educational
qualification up to primary level, 15% percent (n=6) respondent had their educational
qualification up to secondary level, 22.5% percent (n=10) respondent had their
educational qualification up to higher secondary level, 12.5%percent (n=5)
respondent had their educational qualification up to graduation level while 05%
percent (n=2) respondent had their educational qualification up to post graduate level.

80

Table no- 5.4 Table shows the work of span of the respondent.

experience

Frequency

Percentage (%)

1 5 years

14

35%

6 10 years

12

30%

11 15 years

22.5%

Above 15 years

12.5%

Total

40

100%

Percentage work of span

14%
35%

1 5 years
6 10 years

23%

11 15 years
Above 15 years
30%

Above table shows that 35% percent (n=14) respondent belongs to age-group
of 1 5years, 30% percent (n=12) belongs to age-group of 6 10 years,
22.5% percent (n=9) belongs to age-group of 11 15 years, while 12.5%
percent (n=5) belongs to age-group of above 15 years.

81

Table no- 5.5 Table shows present salary and incriment of the respondent.
Employee response

Frequency

Percentage (%)

Strongly agree

10%

Agree

27

67.5%

Uncertain

7.5%

Disagree

10%

Strongly disagree

5%

Total

40

100%

percentage ofpresent salary and incriment

10%

5% 10%
Strongly agree

8%

Agree
Uncertain
Disagree
Strongly disagree
67%

Above table shows that 10% percent (n=4) respondent with strongly agree, 67.5%
percent (n=27) respondent with agree, 7.5% percent (n=3) respondent with
uncertain,10% percent (n=4) respondent with disagree,5% percent (n=2) respondent
with strongly agree.

82

Table no-5.6 Table shows financial or financially related reward system in my

organization.
Employee response

Frequency

Percentage (%)

Strongly agree

5%

Agree

22

55%

Uncertain

12.5%

Disagree

20%

Strongly disagree

7.5%

Total

40

100%

percentage of financial or financially

related reward system
8% 5%
Strongly agree
20%

Agree

Uncertain
12%

55%

Disagree
Strongly disagree

Above table shows that 5% percent (n=2) respondent with strongly agree,
55%percent (n=22) respondent with agree, 12.5%percent (n=5) respondent with
uncertain,20% percent (n=8) respondent with disagree,7.5% percent (n=3) respondent
with strongly disagree.

83

Table no- 5.7 Table shows working conditions are clean,pleasant & safe of
respondent.
Employee response

Frequency

Percentage%

Strongly agree

67.5

65.5%

Agree

27.5

27.5%

Uncertain

0%

Disagree

5%

Strongly disagree

0%

40

100%

Total

working conditions are clean,pleasant &

safe of respondent.
0% 0%
5%
Strongly agree
Agree

28%

Uncertain

67%

Disagree
Strongly disagree

Above table shows that 67.5% percent (n=27) respondent with strongly agree,
27.5%percent (n=11) respondent with agree, 0%percent (n=0) respondent with
uncertain,5% percent (n=2) respondent with disagree,0% percent (n=0) respondent
with strongly disagree.

84

Table no-5.8 Table shows welfare facilities provided by the company.

Employee response

Frequency

Percentage (%)

Strongly agree

11

27.5%

Agree

25

62.5%

Uncertain

2.5%

Disagree

7.5%

Strongly disagree

0%

Total

40

100%

percentage of walfere facilities

0%

3%

8%
27%

Strongly agree
Agree
Uncertain
Disagree
Strongly agree

62%

Above table shows that 27.5% percent (n=11) respondent with strongly agree,
62.5%percent (n=25) respondent with agree, 2.5%percent (n=1) respondent with
uncertain,7.5% percent (n=3) respondent with disagree,0% percent (n=0) respondent
with strongly disagree.

85

Table no-5.9 Table shows policies and procedures of respondent.

Employee response

Frequency

Percentage (%)

Strongly agree

10

25%

Agree

22

55%

Uncertain

7.5%

Disagree

12.5%

Strongly disagree

0%

total

40

100%

percentage ofpolicies and procedures

0%
13%
25%

7%

Strongly agree
Agree
Uncertain

Disagree
Strongly disagree
55%

Above table shows that 25% percent (n=10) respondent with strongly agree,
55%percent (n=22) respondent with agree, 7.5%percent (n=3) respondent with
uncertain,12.5% percent (n=5) respondent with disagree,0% percent) respondents
with strongly disagree.

86

Table no 5.10 Table shows relation with my superior peer and subordinates of
Respondent.
Employee response

Frequency

Percentage(%)

Strongly agree

34

85%

Agree

15%

Uncertain

0%

Disagree

0%

Strongly disagree

0%

total

40

100%

policies and procedures of respondent

0% 0%

0%

15%
Strongly agree
Agree
Uncertain
Disagree
Strongly disagree
85%

Above table shows that 85% percent (n=34) respondent with strongly agree,
15%percent (n=6) respondent with agree, 0%percent uncertain, disagree, strongly
disagree.

87

Table no 5.11 Table shows supervisor take interest in our problem, well being
future
Employee response

Frequency

Percentage(%)

Strongly agree

17.5%

Agree

30

75.5%

Uncertain

7%

Disagree

0%

Strongly disagree

0%

total

40

100%

superviser take intrest in our problem, well

being future
0% 0%
8%

17%
Strongly agree
Agree
Uncertain
Disagree
Strongly disagree

75%

Above table shows that17% percent (n=7) respondent with strongly agree,
75%percent (n=35) respondent with agree, 8%percent (n=3) respondent with
uncertain,

0%percent , disagree, strongly disagree.

88

Table no 5.12 Table shows setting and achieving challenging goal

Employee response

Frequency

Percentage(%)

Strongly agree

12.5%

Agree

29

72.5%

Uncertain

04

10%

Disagree

02

05%

Strongly disagree

Total

40

100%

setting and achieving challenging goal

0%
5%
10%

12%
Strongly agree
Agree
Uncertain
Disagree
Strongly disagree
73%

Above table shows that 12% percent (n=5) respondent with strongly agree,
73%percent (n=29) respondent with agree, 10%percent (n=4) respondent with
uncertain5% percent (n=2) respondent with disagree,0% percent) respondents with
strongly disagree.

89

Table no 5.13 Table shows recognized and praised for my good performance
Employee response

Frequency

Percentage(%)

Strongly agree

12.5%

Agree

25

62.5%

Uncertain

03

7.5%

Disagree

07

17.5%

Strongly disagree

total

40

100%

recognized and praised for my good

performance
0%
17%

12%
Strongly agree
Agree

8%

Uncertain
Disagree
Strongly disagree
63%

Above table shows that 12% percent (n=5) respondent with strongly agree,
62%percent (n=25) respondent with agree, 8%percent (n=3) respondent with
uncertain18% percent (n=7) respondent with disagree,0% percent) respondents with
strongly disagree.

90

Table no 5.14 Table show performance appraisal &career development effective

system
Employee response

Frequency

Percentage(%)

Strongly agree

7.5%

Agree

23

57.5%

Uncertain

0%

Disagree

12

30%

Strongly disagree

05%

Total

40

100%

performance appraisal &career

development effective system
5% 7%
Strongly agree
Agree

30%

Uncertain
Disagree
58%

Strongly disagree

0%

Above table shows that 8% percent (n=3) respondent with strongly agree, 58%percent
(n=23) respondent with agree, 0%percent respondent with uncertain30% percent
(n=12) respondent with disagree,5% percent(n=2) respondents with strongly disagree.

91

Table no 5.15 Table show job has enough learning opportunities which will
help me in career advancement
Employee response

Frequency

Percentage(%)

Strongly agree

10

25%

Agree

23

57.5%

Uncertain

03

7.5%

Disagree

04

10%

Strongly disagree

0%

Total

40

100%

job has enough learning opportunities

which will help me in career advancement
0%
10%
25%

8%

Strongly agree
Agree
Uncertain
Disagree
Strongly disagree

58%

Above table shows that 25% percent (n=10) respondent with strongly agree,
58%percent (n=23) respondent with agree, 8%percent (n=3) respondent with
uncertain10% percent (n=4) respondent with disagree,0% percent(n=0) respondents
with strongly disagree.

92

Table no 5.16 Table show right opportunities in this organization for my personal
growth and promotion
Employee response

Frequency

Percentage (%)

Strongly agree

12.5%

Agree

31

77.5%

Uncertain

0%

Disagree

04

10%

Strongly disagree

0%

Total

40

100%

Right opportunities in this organization for

my personal growth and promotion
0%
0%

10%

12%
Strongly agree
Agree
Uncertain
Disagree
Strongly disagree

78%

Above table shows that 13% percent (n=5) respondent with strongly agree,
77.5%percent (n=31) respondent with agree, 0%percent (n=0) respondent with
uncertain10% percent (n=4) respondent with disagree,0% percent(n=0) respondents
with strongly disagree.

93

Table no 5.17 Table show organization helps me in all possible way to know my
Employee response

Frequency

Percentage (%)

Strongly agree

20%

Agree

28

70%

Uncertain

2.5%

Disagree

03

7.5%

Strongly disagree

0%

Total

40

100%

organization helps me in all possible way to

know my
0%
4%

8%
20%

Strongly agree
Agree
Uncertain
Disagree
Strongly disagree

70%

Above table shows that 20% percent (n=8) respondent with strongly agree,
70%percent (n=28) respondent with agree, 2.5%percent (n=1) respondent with
uncertain7.5% percent (n=3) respondent with disagree,0% percent(n=0) respondents
with strongly disagree.

94

Table no 5.18 Table show organization we are a given a chance to our present our
ideas & the same is give due weight age in decision making
Employee response

Frequency

Percentage (%)

Strongly agree

0%

Agree

22

55%

Uncertain

0%

Disagree

10

25%

Strongly disagree

20%

Total

40

100%

organization we are a given a chance to our

present our ideas & the same is give due
weight age in decision making
0%
20%

Strongly agree
Agree
Uncertain
55%

25%

Disagree
Strongly disagree

0%

Above table shows that 0% percent (n=0) respondent with strongly agree,
55%percent (n=22) respondent with agree, 0%percent (n=0) respondent with
uncertain25% percent (n=10) respondent with disagree, 20% percent (n=8)
respondents with strongly disagree.

95

Table no 5.19 Table show management of our calls for active participation of the
employee in the dat to day function of the organization

Employee response

Frequency

Percentage (%)

Strongly agree

10

25%

Agree

25

62.5%

Uncertain

12.5%

Disagree

0%

Strongly disagree

0%

Total

40

100%

management of our calls for active

participation of the employee in the dat to
day function of the organization
0% 0%
12%
25%

Strongly agree
Agree
Uncertain
Disagree
Strongly disagree

63%

Above table shows that 25% percent (n=10) respondent with strongly agree,
62%percent (n=25) respondent with agree, 13%percent (n=5) respondent with
uncertain0% percent (n=0) respondent with disagree, 0% percent (n=0) respondents
with strongly disagree.

96

Table no 5.20 Table show prestige of my organization outside company is good

Employee response

Frequency

Percentage (%)

Strongly agree

10%

Agree

36

90%

Uncertain

0%

Disagree

0%

Strongly disagree

0%

Total

40

100%

prestige of my organization outside

company is good
0% 0% 0%
10%
Strongly agree
Agree
Uncertain
Disagree
Strongly disagree
90%

Above table shows that10 % percent (n=4) respondent with strongly agree,
90%percent (n=36) respondent with agree, 0%percent (n=0) respondent with
uncertain0% percent (n=0) respondent with disagree, 0% percent (n=0) respondents
with strongly disagree.

97

Table no 5.21 Table shows I am getting maximum pleasure from my work

Employee response

Frequency

Percentage (%)

Strongly agree

28

70%

Agree

17.5%

Uncertain

0%

Disagree

12.5%

Strongly disagree

0%

Total

40

100%

I am getting maximum pleasure from my

work
0%
0%

13%
Strongly agree
Agree

19%

Uncertain
Disagree
70%

Strongly disagree

Above table shows that70 % percent (n=28) respondent with strongly agree,
17%percent (n=7) respondent with agree, 0%percent (n=0) respondent with
uncertain12.5% percent (n=5) respondent with disagree, 0% percent (n=0)
respondents with strongly disagree.

98

Table no 5.22 Table shows added authority and responsibility to present job will be
more interesting and rewarding

Employee response

Frequency

Percentage (%)

Strongly agree

10

25%

Agree

22

55%

Uncertain

05

12.5%

Disagree

03

7.5%

Strongly disagree

0%

Total

40

100%

added authority and responsibility to

present job will be more interesting and
rewarding
0%
8%
25%

12%

Strongly agree
Agree
Uncertain
Disagree
Strongly disagree

55%

Above table shows that25 % percent (n=10) respondent with strongly agree,
55%percent (n=22) respondent with agree, 12.5%percent (n=5) respondent with
uncertain7.5% percent (n=5) respondent with disagree, 0% percent (n=0) respondents
with strongly disagree

99

Table no 5.23 Table shows authority to encourage juniors is quite common in my

organization

Employee response

Frequency

Percentage (%)

Strongly agree

17.5%

Agree

25

62.5%

Uncertain

0%

Disagree

05

12.5%

Strongly disagree

03

7.5%

Total

40

100%

authority to encourage juniors is quite

common in my organization
8%

17%
Strongly agree

12%
0%

Agree
Uncertain
Disagree
Strongly disagree
63%

Above table shows that17 % percent (n=7) respondent with strongly agree,
62%percent (n=25) respondent with agree, 0%percent (n=0) respondent with
uncertain13% percent (n=5) respondent with disagree, 8% percent (n=3) respondents
with strongly disagree

100

Table no 5.24 Table shows job contet and responsibilities are appropriate

Employee response

Frequency

Percentage (%)

Strongly agree

17.5%

Agree

25

62.5%

Uncertain

5%

Disagree

04

10%

Strongly disagree

02

5%

Total

40

100%

job contet and responsibilities are

appropriate
5%
17%

10%

Strongly agree

5%

Agree
Uncertain
Disagree
Strongly disagree
63%

Above table shows that17 % percent (n=7) respondent with strongly agree,
62%percent (n=25) respondent with agree, 5%percent (n=2) respondent with
uncertain10% percent (n=4) respondent with disagree, 5% percent (n=2) respondents
with strongly disagree

101

Table no 5.25 Table shows organization tries to make the job more challenging
which prevents us from getting bored on the job

Employee response

Frequency

Percentage (%)

Strongly agree

20%

Agree

23

57.5%

Uncertain

7.5%

Disagree

04

10%

Strongly disagree

02

5%

Total

40

100%

organization tries to make the job more

challenging which prevents us from getting
bored on the job
5%
10%

20%

Strongly agree
Agree

8%

Uncertain
Disagree
Strongly disagree

58%

Above table shows that20 % percent (n=8) respondent with strongly agree,
57%percent (n=23) respondent with agree, 8%percent (n=3) respondent with
uncertain10% percent (n=4) respondent with disagree, 5% percent (n=2) respondents
with strongly disagree

102

Table no 5.26 Table shows appropriate work is given to me according to my skill

and potential
Employee response

Frequency

Percentage (%)

Strongly agree

10%

Agree

20

50%

Uncertain

5%

Disagree

20%

Strongly disagree

15%

Total

40

100%

Appropriate work is given to me according

to my skill and potential
15%

10%
Strongly agree
Agree
Uncertain

20%

Disagree
5%

50%

Strongly disagree

Above table shows that10 % percent (n=4) respondent with strongly agree,
50%percent (n=20) respondent with agree, 5%percent (n=2) respondent with
uncertain20% percent (n=8) respondent with disagree, 15% percent (n=6) respondents
with strongly disagree

103

Table no 5.27 Table shows leadership also influences the level of motivation

Employee response

Frequency

Percentage (%)

Strongly agree

7.5%

Agree

17

42.5%

Uncertain

7.5%

Disagree

15

37.5%

Strongly disagree

5%

Total

40

100%

leadership also influences the level of

motivation
5% 8%
Strongly agree
Agree
38%

Uncertain
42%

Disagree
Strongly disagree

7%

Above table shows that7 % percent (n=3) respondent with strongly agree,
42%percent (n=17) respondent with agree, 8%percent (n=2) respondent with
uncertain38% percent (n=8) respondent with disagree, 5% percent (n=2) respondents
with strongly disagree

104

105

1 Findings
1. Personal information .
Most of respondent 37.5 % (n=15) were belongs to age-group of 26 -35 Years,
Most of respondent 45 % (n=18) had their educational qualification up to
s.s.c,
Majority of the respondent 35 % (n=14) works in span of (1-5) years.

2. Employee motivation information

Majority of respondent 67.5% (n=27) agree whit present salary and increment.
Majority of respondent 55% (n=222) agree whit financially related reward
system
Majority of respondent 67.5 % (n=27) were strongly agree with working
condition.
Majority of respondent 62.5 % (n=25) were agree with welfare facilities and.
27.5 % (n=11) were strongly agree with welfare facilities
Majority of respondent 85 % (n=34) were relation with superior peers and
subordinates are good.
Majority of respondent 75.5% (n=30) were supervisors take interest in our
problem.
Majority of respondent 72.5 % (n=29) were enjoy setting and achieving
challenging goal.
Majority of respondent 62.5% (n=25) were recognized and praised for my
good performance.
Most of respondent 57.5 % (n=23) clear and effective system of performance
appraisal & career development.
Majority of respondent 77.5% (n=31) agree whit right opportunities in this
organization for my personal growth and promotion.
Majority of respondent 70% (n=28) were organization helps me in all possible
20%(n=8) organization helps me in all possible .
Majority of respondent 62.5% (n=25) agree and 25% (n=10) strongly agree
for management of our calls for active participation of the employee in the day
to day functions of the organization

106

 Most of respondent 90 % (n=36) agree and 10% (n=4) strongly agree were
organization outside company is good.
Majority of respondent 70 % (n=28)I am getting maximum pleasure from my
work
Majority of respondent 55% (n=22) were added authority and responsibility to
present job will be more interesting and rewarding.
Most of respondent 62.5% (n=25) delegation of authority to encourage juniors
is quits common in my organization.
Most of respondent 62.5% (n=25) were my job content and responsibilities are
appropriate for me.
Majority of respondent 75% (n=30) were appropriate work is given to me
according to my skill and potential
Most of respondent 42.5% (n=17) were agree and 37.5% (n=15) for disagree
leadership also influences the level of motivation.

107

Suggestions

In the Madhur dray employees feel that the salary structure is very
good but give amount is not satisfactory. 55%of the employees are
satisfied by their salary and increment, financial reward. as it is very
low rate

The higher number of employees (85%) has given strongly agree. It

means in madhur dray the belongingness o employees are very good.
They have a good relationship with everyone.

65% of employees are satisfied with recognition programs and

performance appraisal system. But 35%of the employee is still feeling
that the performance appraisal system and recognition programmer
are not proper. Hence HR department should know why the
employees are not satisfied whit the performance appraisal system and
which type of recognition program me they want in future.

The higher numbers of employees have given positive response but

still there is scope for improvement.

The HR department should make the job more challenging. Exciting

and meaningful by the factor like goal setting. Creative work. Job
rotation. Skill diversity.

108

3 CONCLUSION
Motivation is an aspect which covers almost all the employee from the managing
directors to his peon. The motivation is a live issue for all.

Motivation is psychological concept. Motivation is not a cause but rather the effect or
result of many going awry. Motivation drifters from person to person, industry to
industry, level of education age, nature of work etc. Motivation may be range from
very high to very low.

By this study it is clear that various faction which influences motivation and
productivity of the employees each as Social Security measures, welfare facilities,
salary status, Bonus, heath condition, shift system and recognition of work are getting
much importance.
Several approaches to motivation are available. Early theories are too simplistic in
their approach towards motivation. The content theories. Maslows need hierarchy.
Herzbergs two-factor model and alders erg approach are very popular

To conclude employee motivation plays very important role in every organization.

Good employee motivation helps to success of the organization. Unless an employee
has poor motivation if always a possibility of employee disharmony and also affect
some thrumming of the organization.

From the financial and nonfinancial reward system make motivation in complete
picture. Form this we learn that how we applied the concept of motivation for the
progressive result of company

109

110

Executive Summary

I have done my major project on Employee Motivation and for doing research work I
chose madhur dray, Gadhinagar. I would like to start with the introduction of the
topic.

Definition of Employee Motivation

Motivation is a process that starts with a physiological or psychological deficiency or

need that activates behavior or a drive that aimed at a goal or an incentive.
Employee motivation is a reflection of the level of energy, commitment, and
creativity that a company's workers bring to their jobs.
I included Basics of Motivation, Framework of Motivation, Role of Motivation,
Types of Motivation, Methods of Motivation, Factors showing lack of Motivation,
Techniques of employee Motivation. Various Theories of Motivation are also
included:
McClellands Theory
Herzberg Two factor Theory
Vrooms Expectancy Theory
Self Determination Theory
Reinforcement Theory
Equity Theory
Then Work Motivation is also included which is the important part of employee
motivation as the employees are needed to be motivated at work. Work Motivation
:- Craig Pindar echoing the basic definition of motivation, define it as follows:Work
motivation is a set of energetic force that originate both within as well as beyond and
individuals being, to initiate work related behavior, and to determine its form,
direction, intensity, and duration. Various other aspects of work motivation are
included which are:
Integrated model of work Motivation which includes various theories of
motivation such as Maslow Theory, Vrooms VIE theory, Goal setting
Theory.

111

 Changes in the world of work like changes in the organization, Downsizing,

Team work, Work Flexibility and Changes in todays employees.
Recent Development in work Motivation Approaches which includes Linders
understanding of employees, CARE model of Motivation and
Ways to increase employee Motivation.
As I mentioned earlier I have done research in Madhuar dray and would like to
mention few lines about the company. Madhuar dray began with a vision to support
the countrys drive towards self sufficiency and import substitution in 1970. is the
preferred business partner of Madhar dray and Amul dray .

About Research Methodology: -

Research methodology is a collective

term for the structured process of conducting research. There are many
different methodologies used in various types of research and the term is
usually considered to include research design, data gathering and data
analysis.
Convenience Sampling: - As I have to the research for my major project,
Idid my research by using Convenience sampling: - Convenience sampling is
a non-probability sampling technique where subjects are selected because of
their convenient accessibility and proximity to the researcher. The subjects are
selected just because they are easiest to recruit for the study and the researcher
did not consider selecting subjects that are representative of the entire
population.
I prepared a questionnaire on Employee Motivation for 40 respondents of the
company and send it through mail as we did not have permission to go in the
industry. It was little difficult for me as I have to communicate through mail
and telephone. But our supervisor was really helpful and really guided us very
well. We got the information that we needed for our major project. I would
really like to thank our supervisor for giving his co-operation and valuable
time. It was a good experience for me as I came to know how to do and apply
research for my project.

112

BIBLIOGRAPHY

BOOKS
K. Aswathapa (2000)

:(Human Resource Management & Personnel

Management) Text & Cases Published by
TataMcGraw-Hill, New Delhi.

Stephen Robins(2004)

(Organizational Behavior)

Mamoria Ganka

(Dynamics of Industrial Relations) Himalaya

Publication House

M.P.Gorpade & P.K.Ghosh

(Industrial Psychology)

DISSERTATIONS
Employees motivation among employees (2008)
Hitesh parmar (m.s.w)
Employees motivation and morale
(Gujarat viddhapith)
A study of motivation and leadership
(jyoti m patel) (m.s.w)
(Gujarat viddhapith)
Website
www.sitehr.com
www.yahoo.com
www.google.com

113

ANNEXURE - II
INTERVIEW SCHEDULE

DEPARTMENT OF LABOUR WALFERE

SCHOOL OF SOCIAL SCIENCE
GUJARAT UNIVERSITY
AHMEDABAD.

SUB:- THE STUDY OF THE EMPLOYEE MOTIVATION AMONG THE

EMPLOYEE OF MADHUAR DARIY.

RESEARCH GUIDE

RESEARCHER NAME

Prof. Dr. Sujatha Sony

Sandip Patel

114

EMPLOYEES SURVEY QUESTIONNAIRE

ON
MOTIVATION
As a part of my dissertation, I am conducting a research on motivation.
This questionnaire is part of the research project & I solicit your cooperation for the same. I assure that the information will be used for
academic purpose only and shall be kept confidential.
(1) Name:
(2) Sex:
male [
(3) Age:
(4) Designation:
(5) Education:
a. Ssc
b. Hsc
c. Graduate
d. Post graduate
e. Other:

female [

[ ]
[ ]
[ ]
[ ]
[ ]

(6) Work on span:

1 to 5 years
6 to 10 years
11 to 15 years
More than 15 years

[
[
[
[

]
]
]
]

(7) I am satisfied with the present salary and increment given to me.
1) Strongly agree
[ ]
2) Agree
[ ]
3) Uncertain
[ ]
4) Disagree
[ ]
5) Strongly disagree [ ]
(8) I think that financial or financially related reward system in my
organization is fair and satisfactory.
1) Strongly agree
[ ]
2) Agree
[ ]
3) Uncertain
[ ]
4) Disagree
[ ]
5) Strongly disagree
[ ]

115

(9) I feel that working conditions are clean, pleasant & safe in my
organization.
1) Strongly agree
[ ]
2) Agree
[ ]
3) Uncertain
[ ]
4) Disagree
[ ]
5) Strongly disagree
[ ]
(10) I feel that my welfare facilities provided by the company are
adequate
and provide satisfaction to me.
1)
2)
3)
4)
5)

Strongly agree
Agree
Uncertain
Disagree
Strongly disagree

[
[
[
[
[

]
]
]
]
]

(11) I am aware with policies and procedures to the company and I

find that satisfactory.
1)
2)
3)
4)
5)

Strongly agree
Agree
Uncertain
Disagree
Strongly disagree

[
[
[
[
[

]
]
]
]
]

(12) My relation with my superior peers and subordinates are good.

1)
2)
3)
4)
5)

Strongly agree
Agree
Uncertain
Disagree
Strongly disagree

[
[
[
[
[

]
]
]
]
]

(13) Supervisors take interest in our problem, well being and feature.
1)
2)
3)
4)
5)

Strongly agree
Agree
Uncertain
Disagree
Strongly disagree

[
[
[
[
[

116

]
]
]
]
]

(14) I enjoy setting and achieving challenging goal.

1)
2)
3)
4)
5)

Strongly agree
Agree
Uncertain
Disagree
Strongly disagree

[
[
[
[
[

]
]
]
]
]

(15) I am recognized and praised for my good performance.

1)
2)
3)
4)
5)

Strongly agree
Agree
Uncertain
Disagree
Strongly disagree

[
[
[
[
[

]
]
]
]
]

(16) There is a clear and effective system of performance appraisal &

career development.
1)
2)
3)
4)
5)

Strongly agree
Agree
Uncertain
Disagree
Strongly disagree

[
[
[
[
[

]
]
]
]
]

(17) I feel that my job has enough learning opportunities which will
help me in career advancement.
1)
2)
3)
4)
5)

Strongly agree
Agree
Uncertain
Disagree
Strongly disagree

[
[
[
[
[

]
]
]
]
]

(18) I think there are right opportunities in this organization for my

personal growth and promotion.
1)
2)
3)
4)
5)

Strongly agree
Agree
Uncertain
Disagree
Strongly disagree

[
[
[
[
[

117

]
]
]
]
]

(19) My organization helps me in all possible way to know my

abilities, capabilities, present performance and prospect for improvement.
1)
2)
3)
4)
5)

Strongly agree
Agree
Uncertain
Disagree
Strongly disagree

[
[
[
[
[

]
]
]
]
]

(20) In our organization we are a given a chance to our present our

ideas & the same is given due weight age in decision making.
1)
2)
3)
4)
5)

Strongly agree
Agree
Uncertain
Disagree
Strongly disagree

[
[
[
[
[

]
]
]
]
]

(21) The management of our calls for active participation of the

employees in the day to day functions of the organization.
1)
2)
3)
4)
5)

Strongly agree
Agree
Uncertain
Disagree
Strongly disagree

[
[
[
[
[

]
]
]
]
]

(22)The prestige of my organization outside company is good.

1)
2)
3)
4)
5)

Strongly agree
Agree
Uncertain
Disagree
Strongly disagree

[
[
[
[
[

]
]
]
]
]

(23) I feel that I am getting maximum pleasure from my work.

1)
2)
3)
4)
5)

Strongly agree
Agree
Uncertain
Disagree
Strongly disagree

[
[
[
[
[

118

]
]
]
]
]

(24) I feel that the added authority and responsibility to present job
will be more interesting and rewarding.
1)
2)
3)
4)
5)

Strongly agree
Agree
Uncertain
Disagree
Strongly disagree

[
[
[
[
[

]
]
]
]
]

(25) Delegation of authority to encourage juniors is quite common in

my organization.
1)
2)
3)
4)
5)

Strongly agree
Agree
Uncertain
Disagree
Strongly disagree

[
[
[
[
[

]
]
]
]
]

(26) My job content and responsibilities are appropriate ( not over

loaded or not under loaded) for me.
1)
2)
3)
4)
5)

Strongly agree
Agree
Uncertain
Disagree
Strongly disagree

[
[
[
[
[

]
]
]
]
]

(27)My organization tries to make the job more challenging which

prevents us from gel ting bored on the job.
1) Strongly agree
2) Agree
3) Uncertain
4) Disagree
5) Strongly disagree

[
[
[
[
[

]
]
]
]
]

(28) I think that appropriate work is given to me according to my

skill and potential.
1)
2)
3)
4)
5)

Strongly agree
Agree
Uncertain
Disagree
Strongly disagree

[
[
[
[
[

119

]
]
]
]
]

(29)I believe that leadership also influences the level of motivation.

1)
2)
3)
4)
5)

Strongly agree
Agree
Uncertain
Disagree
Strongly disagree

[
[
[
[
[

]
]
]
]
]

PATEL SANDIP . G
ROLL NO.22
M.L.W(SR)

120

121