Hard Work is crucial to success and achievement. People with less ability but stronger will are able to perform better than people with superior ability and lack of will. This “Will” to do is known as motivation. The word Motivation is derived from “Motive” that is defined as an active form of desire or need that must be satisfied. The needs and desires affect or change human behaviour, which then becomes goal oriented. Definition of Motivation: “Motivation is defined as a representation of an unsatisfied need, which creates a state of tension or disequilibrium, causing the individual to move in a goal, directed pattern towards restoring a state of equilibrium, by satisfying the need”.

Concept of Motivation
1. Effort 2. Persistence 3. Direction

Process of Motivation

Unsatisfied Need

Tension or disequilibrium

Action, movement or behaviour

Goal, equilibrium

Feedback, possible modification of unsatisfied need

Steps in the Motivation Process
• Analysis of situation

• Selecting and applying appropriate motivators • Follow-up

Sources of Motivation
   

Positive Motivation Negative Motivation Extrinsic Motivation Intrinsic Motivation

Theories of Motivation Content Theories Process Theories

Content Theories of Work Motivation 1. McGregor’s Theory X and Theory Y Theory X Assumptions: • People dislike work. • Need direction. • Need to be threatened with punishment. • Have little ambition. • Concerned with own security.

• Unwilling to accept responsibility. • Prefer to be directed. Theory Y Assumptions: • • • • Enjoy work. Commitment to goals. Exercise self-direction and control. Have innovation capacity and creativity. • Seek leadership. 2. Maslow’s Model Growth Needs: • Self Actualization Needs • Esteem Needs Deficiency Needs: • Social Needs • Security Needs • Physiological Needs 3. ERG Theory

 Existence Needs  Relatedness Needs  Growth Needs 4. McClelland’s Theory of Needs i). “Need for Achievement”: - (n Ach) is the desire to succeed in competitive situations based upon an established or perceived standard of excellence. ii). “Need for Power”: - (n Pow) is the desire to affect and control the behaviour of other people and to manipulate the surroundings. iii). “Need for Affiliation”: - (n Aff) is related to social needs and reflects a desire for friendly and warm relationships with others.

5. Herzberg’s Two-Factor Theory a) Hygiene Factors (dissatisfaction)

Hygiene factors do not motivate people. They prevent dissatisfaction and maintain status quo. They produce no growth but prevent loss. • Wages, salary, employee benefits • Company policies and administration rules • Interpersonal relations • Working conditions and job security • Quality of supervision b) • • • • • Motivational Factors ( Satisfaction) The job itself Recognition Achievement Responsibility Growth and advancement

B. Process Theories of Work Motivation 1. Vroom’s Expectancy Model Three models : -

i . Expectancy: - This is a person’s perception of the likelihood that a particular outcome will result from a particular behaviour or action. ii. Instrumentality: - This factor relates to a person’s belief and expectation that his performance will lead to a particular desired reward. iii. Valence: - Valence is the value a person assigns to his desired reward. Motivational Force (M) = Expectancy (E) * Instrumentality (I) * Valence (V) Or M=(E*I*V) 2. Equity Theory It is based upon the recognition that employees are not only concerned with the rewards that they receive for their efforts but also with the relationship of their rewards with the rewards received by others. It has two elements: -

 The workers want to get fair reward for their efforts.  Comparison of rewards with the rewards of others who put in similar efforts.  Inequity exists when people are either “underpaid” or “overpaid” for similar efforts. 3. Goal Setting Theory It studies the processes by which people set goals for themselves and then put in efforts in order to achieve them. The quality of performance is generally shaped by how difficult and how specifically defined the goal is.
Goal specificity Performance Goal Difficulty Satisfaction

Application of Motivation
There are four common ways by which the theories of motivation can be implemented and applied. • • • • Economic Considerations Management by objectives Employee involvement programmes Performance Appraisal

1. Economic Considerations Money contributes greatly to social status. An economic incentive is used to induce individual, groups and organization to achieve better performance. Types of Economic Considerations: -

• Variable Pay Programme (VPP) refers to a system of payment of some portion of the total remuneration, on the basis of an individual performance. • Piece rate pay plan is payment based on the actual performance. The wage is linked with the production. It is wage per piece or unit of production. • Wage incentives are based on more pay for more production and are an incentive to employees for higher production. • Profit sharing is a practical type of motivation to monitor employees for better performance. • Gain sharing is a formula based group incentive plan. • Skill-based plan refers to payment for knowledge and skills possessed by employees.

• Flexible benefits provide combinations of benefits from which the employees have to select the benefits of their respective choice. 3. Management by Objectives Management by Objectives refers to the set of goals that are measurable, verifiable and tangible. Management by Objectives (MBO) is used for planning, organizing, actuating and controlling organizational activities. Objectives are determined after through analysis of the internal and external environment relating to the organisation. The SWOT analysis is used to formulate objectives. 4. Employee-Involvement Programme An employee-involvement programme relates to the participation of employees in management functions.

Participative Management refers to the sharing of decision-making power by employees with the immediate superior.

Representative participation is practiced when a small group of employees who represent all the employees is given the power of participating in the management. Quality Circle is a group of employees who discuss the quality problems, cost control and problem solutions propositions. Employees’ Ownership is the company’s benefit plan in which employees are allotted shares in lieu of a cash bonus in many industrial houses.

5. Performance Appraisal It is an important tool for rewarding employees. It helps understand employees’

merits and deficiencies as well as the present performance and formulation of future objectives.

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