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Motivation and Needs Theory

Motivation and Needs Theory

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Published by: Neeraj Jain on Nov 13, 2010
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Loyola Institute of Business Administration, Chennai

Motivation & Needs Theory
Neeraj Jain F09097 LIBA PGDM 09-11


whole heartedly and with deep gratitude. Loyola Institute of Business Administration Page 2 . It would have been impossible to do the required work without his kind help and guidance.Motivation & Needs Theory 2009 ACKNOWLEDGEMENTS I. T A Sivasubramaniam for all his help in successful completion of this report and the subject. would like to thank Prof.

««««««««««««««««««««««««3 Nature of Motivation««««««««.10 Vroom¶s Expectancy Theory««««««««««««««««««««««««««...12 Conclusion«««««««««««««««««««««««««««««««««.8 Alderfer¶s ERG Theory««««««««««««««««««««««««««««..Motivation & Needs Theory 2009 Contents Introduction«««««««««««««««««««««««««««««««««.3 Types of Motivation««««««««««««««««««««««««««««.«.9 McCellend Theory««««««««««««««««««««««««««««««.14 Loyola Institute of Business Administration Page 3 .4 Maslow¶s Need Hierarchy Theory««««««««««««««««««««««««.«««««««««««««««««««««.6 Herzberg¶s Motivation-Hygiene Theory««««««««««««««««««««««..3 Motivation and Its Definition««....

And continues him in the course of action of action already initiated´ Nature of Motivation: On the basis of the above description. It is not a time bound programme or a touch-and-go affair. This is the reason why managers attach great importance to motivation in organizational setting. Human needs are infinite. Robert Dubin defines Motivation as ³the complex forces starting and keeping a person at work in an organization. Motivation is total. Motivation is a psychological concept. Rensis Likert. Loyola Institute of Business Administration Page 4 . Effective directing of people leads the organization to effectiveness. Motivation is something that moves the person to action. Motivation is a continuous process. A soon as one need is satisfied new ones arise. It is based on human needs which generate within an individual. An employee is an indivisible unite and he needs are interrelated. not piece-meal. He cannot be motivated by fulfilling some of his needs partly. conditioned by the efforts ability to satisfy some individual need.Motivation & Needs Theory 2009 Motivation and Needs Theory Introduction: Motivation is one of the most important factors affecting human behaviour and performance. 2. Motivation and Its Definition: The willingness to exert high level of effort to reach organizational goals. both at organizational and individual levels. 3. the following characteristics of motivation can be identified: 1. Needs are feelings influence the behavior and activities of the individual. A person cannot be motivated in parts. has called motivation as ³the core of management´.

He should not expect overnight results. Non-financial incentives consist of recognition. Theories of Motivation: A. praise. bonus and prerequisites. individuals differ in what motivates them. Financial incentives include pay. Motivation causes goal-directed behavior. McCellend Theory E.Motivation & Needs Theory 2009 4. responsibility. challenging job. Therefore. There is no universal theory or approach to motivation. Motivation is a complex process. Vroom¶s Expectancy Theory Loyola Institute of Business Administration Page 5 . 5. 6. Herzberg¶s Motivation-Hygiene Theory C. a manager has to analyze and understand variety of needs and has to use variety of rewards to satisfy them. A person behaves in such a way that he can satisfy his goals or needs. allowance. Alderfer¶s ERG Theory D. Motivation may be financial or non-financial. Maslow¶s Need Hierarchy Theory B. Moreover. etc. The form of motivation depends upon the type of needs. participation in decision-making.

rest. job security. safety needs emerge and become dominant. food. love and affection. Loyola Institute of Business Administration Page 6 . People form informal groups to seek meaningful association¶s companionship. friendship. It includes the needs of air. 3. sex. social. 2. He therefore. belonging. shelter. Therefore. provision for old age. clothing. esteem. These needs imply the need for self-preservation and economic independence. 1. These are the need to seek affiliation and affection of one¶s fellow beings. the next need becomes dominant. water. Safety or Security Needs: Once Physiological needs are satisfied to be reasonable level. and selfactualization ± and as each need is substantially satisfied. insurance against risk etc. safety. wants association.Motivation & Needs Theory 2009 A. these are the most primary or basic needs and must be satisfied before all other needs. Physiological: These needs relate to the survival and maintenance of human life. Social Needs: Man is a social animal. Maslow¶s Need Hierarchy Theory: There is a hierarchy of five needs ± physiological. etc. People want bodily safety.

praise and status. independence. Self Esteem or Ego Needs: These are concerned with awareness of self importance and recognition from others.S. power. self ± respect. He called these factors hygiene factors and motivating factors respectively. It involves self fulfillment or achieving what one considers to be his mission in life.A. These executives were asked to recall specific incidents in their experience which made them feel either exceptionally good or exceptionally bad about their jobs. Esteem needs consist of such things as self ±confidence. On the basis of their study. to become everything that on is capable of becoming´.Motivation & Needs Theory 2009 4. achievement. Herzberg¶s Motivation-Hygiene Theory: Frederick Herzberg and his associates conducted research wherein they interviewed 20 engineers and accountants from nine different companies in Pittsburg area of U. B. prestige. Loyola Institute of Business Administration Page 7 . Self ± Actualization Needs: This implies ³the desire to become more and more of what one is. Herzberg concluded that there are some job conditions which operate primarily to dissatisfy employees while other job conditions operate primarily to build strong motivation and high job satisfaction. 5.

Some of the Hygiene Factors are :  Wages. Many of these factors are traditionally perceived by management as motivators but these are really more potent as dissatisfies. These are related with the job content. supervisors and subordinates. The job security may be in the form of tenure or it could be supported by a strong union. advancement. Motivational Factor: These factors help to build strong motivation and high job satisfaction. Like the previous theories. Alderfer¶s ERG Theory: Alderfer has provided an extension of the Maslow¶s need hierarchy and Herzberg¶s two ± factor theory of motivation. These factors are achievement. Some of these Motivational Factor¶s are:  The Job itself  Recognition  Achievement  Responsibility  Growth and advancement. These are called µHygiene Factors¶ because they support the mental health of employees.  Working conditions and job security. Their absence or decrease will affect the level of job satisfaction. particularly the former. the lines Loyola Institute of Business Administration Page 8 . Cordial relation will prevent frustration and dissatisfaction. 2. Based on the empirical evidences. C. Alderfer believes that there is a value in categorizing needs and that there is a basic distinction between lower ± order needs and higher ± order needs. and social needs.Motivation & Needs Theory 2009 1. security.  Company policies and administrative rules that govern the working environment. salary and other types of employee benefits. Hygiene Factor: These factors provide no motivation to employees but the absence of these factors serves as dissatisfies. They are also known as satisfiers. Also.  Interpersonal relation with peers. work itself. he has found that there seems to be some overlapping between physiological. possibility of growth and responsibility.

existence needs group physiological and safety needs of Maslow into one category as these have similar impact on the behavior of the individual. and achievement needs are not clear. 2. Relatedness Needs: Relatedness needs include all those needs that involve relationship with other people whom the individual cares. Thus. Based on these observations. Alderfer has categorized the various needs into three categories: existence needs. and growth needs. Growth needs: Growth needs involve the individual making creative efforts to achieve full potential in the existing environment. These include Maslow¶s self ± actualization need as well as that part of Loyola Institute of Business Administration Page 9 . 1. Relatedness needs cover Maslow¶s social needs and that part of esteem needs which is derived from the relationship with other people. Existence Needs: Existence needs include all needs related to physiological and safety aspects of an individual. esteem. 3.Motivation & Needs Theory 2009 of demarcation between social. relatedness needs.

including a spell at Harvard from 1956. developing achievement-based motivational theory and models. The Achieving Society:  Achievement Motivation (n-ach)  Authority/Power Motivation (n-pow)  Affiliation Motivation (n-affil) David Mcclelland's needs-based motivational model: These needs are found to varying degrees in all workers and managers. felling of personal growth. Mccelland¶s Motivational Needs Theory: American David Clarence McClelland (1917-98) achieved his doctorate in psychology at Yale in 1941 and became professor at Wesleyan University. but his research interests extended to personality and consciousness.Motivation & Needs Theory 2009 the esteem need which is internal to the individual like feeling of being unique. from 1987 until his death. His ideas have since been widely adopted in many organizations. both in terms of being motivated and in the management and motivation others. advocating competency-based assessments and tests. Loyola Institute of Business Administration Page 10 . McClelland is chiefly known for his work on achievement motivation. David McClelland is most noted for describing three types of motivational need. He then taught and lectured. and this mix of motivational needs characterizes a person's or manager's style and behavior. where with colleagues for twenty years he studied particularly motivation and the achievement need. and promoted improvements in employee assessment methods. and later taught at Boston University. David McClelland pioneered workplace motivational thinking. D. He began his McBer consultancy in 1963. helping industry assess and train staff. arguing them to be better than traditional IQ and personality-based tests. etc. and relate closely to the theory of Frederick Herzberg. which he identified in his 1961 book.

they may not possess the required flexibility and people-centered skills. and a need for a sense of accomplishment. This driver produces a need to be influential. McClelland suggested that a strong n-affil 'affiliation-motivation' undermines a manager's objectivity. and that this affects a manager's decision-making capability. which of course most people are not. These people are team players. Some people exhibit a strong bias to a particular motivational need. and this motivational or needs 'mix' consequently affects their behavior and working/managing style.  The need for affiliation (n-affil): The n-affil person is 'affiliation motivated'. and while n-pow people are attracted to the leadership role. although there can be a tendency to demand too much of their staff in the belief that they are all similarly and highly achievement-focused and results driven. Loyola Institute of Business Administration Page 11 . attainment of realistic but challenging goals.  The need for authority and power (n-pow): The n-pow person is 'authority motivated'. because of their need to be liked. There is also motivation and need towards increasing personal status and prestige. There is a strong need to lead and for their ideas to prevail. McClelland said that most people possess and exhibit a combination of these characteristics. effective and to make an impact. and has a need for friendly relationships and is motivated towards interaction with other people. The affiliation driver produces motivation and need to be liked and held in popular regard. McClelland argues that n-ach people with strong 'achievement motivation' make the best leaders. A strong n-pow 'authority-motivation' will produce a determined work ethic and commitment to the organization. and advancement in the job.Motivation & Needs Theory 2009  The need for achievement (n-ach): The n-ach person is 'achievement motivated' and therefore seeks achievement. There is a strong need for feedback as to achievement and progress.

valence means the strength of an individual¶s preference to a particular outcome. According to Vroom. Vroom¶s concept of force is basically equivalent to motivation and may be shown to be the algebraic sum of products of valences multiplied by expectations. people will be motivated to do things to achieve some goals to the extent that they expect that certain action on their part will help them to achieve the goal. expectancy. its basic assumption is that the choice made by a person among alternative courses of action is lawfully related to psychological events occurring contemporaneously with the behavior. Other terms equivalent to valence used in various theories of motivation are incentive. Thus Motivation (force) = 1. and expected utility. Vroom¶s Expectancy Theory: Vroom¶s expectancy theory has its roots in the cognitive concepts in the choice behavior utility concepts of classical economic theory. Loyola Institute of Business Administration Page 12 . Valence: Valence X Expectancy According to Vroom. Vroom¶s model is built around the concepts of value.Motivation & Needs Theory 2009 E. and force. attitude.

Intrinsic factors are directly related to the contents of a job while extrinsic factors are related to the context or environment in which the job is performed. discussed above. and work design. Hunt and Hill have exemplified it by promotion motive. values. and the use of skills in performing the job. that is. Thus. Characteristics of job such as nature of challenge it offers. empowering employees. motivation theories help in designing reward system. managers should take into consideration how an individual reacts to his work which is a function of fit among: 1. improving quality of work life. both intrinsic and extrinsic aspects of the job must be considered. The superior performance (first ± level outcome) is being instrumental in obtaining promotion (second ± level outcome). 3. Expectancy: Another factor in determining the motivation is expectancy. Expectancy differs from instrumentality in that it relates efforts to first ± level outcomes whereas instrumentality relates first ± and second ± level outcomes to each other. 2. Conclusion: Various theories of Motivation. the autonomy in performing the job. Instrumentality: Another major input into the valence is the instrumentality of the first ± level outcome in obtaining a derived second ± level outcome. and ability. the probability that a particular action will lead to the outcome. Expectancy is different from instrumentality input into valence.Motivation & Needs Theory 2009 2. Thus. Loyola Institute of Business Administration Page 13 . in applying motivation theories at workplace. have various applications in management practices. In applying motivation theories. Individual¶s personality characteristics need patterns.

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