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Stanley Vance defines motivation as, “any emotion or desires which so conditions one‟s will
that the individual is propelled into action.”

Robert Dubin defines motivation, “as the complex of forces standing and keeping a person at
work in an organization.”

Beach defines, “Motivation as a willingness to expand energy to achieve a goal or a reward.”

Hodge and Johnson defines, “Motivation as the willingness of an individual to respond to
organizational requirements in the short run.”

Shartle defines, “Motivation as a reported urge or tension to movie in a given direction or to
achieve a certain goal,”


Motivation is concerned with the direction of functions of management, so the nature of
motivation can be understood from the following points:

1. Unending process: A social animal (a man) has number of wants. These wants induce a man
to work. All the wants cannot be satisfied at one time. If one want is satisfied, then another
want emerges. Motivation is also an unending process just like the satisfaction of wants is an
unending process.
2. A psychological concept: Motivation deals with the psychology of workers. An efficient
worker will not perform the work desirably well unless he is properly motivated. So, effective
performance requires proper motivation. Proper motivation is possible only through proper
analysis of the psychology of workers.
3. The whole individual is motivated: An individual is motivated fully and not partly because
motivation is related of psychology. Besides , the basic needs of man determine motivation to
a great extent. All these are interrelated and cannot be separated from each other.
4. Motivation may be financial or non-financial: The motivation may be divided into two i.e.,
financial and non-financial. Financial motivation includes increasing wages, allowances,
bonus, perquisite and the hike. on-financial motivation includes recognition, praise, giving
more responsibility and inducing to participate in the decision-making process.
5. Frustrated man cannot be motivated: If a man does not have his basic needs satisfied, he may
be frustrated. He may be mentally ill to some extent. Such a frustrated man cannot be
motivated unless his basic needs are satisfied.
6. Goal are motivations: Man works to achieve his individual goals. Whenever the goal is
achieved, he will be no longer interested to work. So, the management should identify the
goals of individuals, and it can persuade them to work by directions.
7. Unifying force: Unifying force means the drive to actualize one‟s own image. The person‟s
self image plays an important role in motivation. If an individual has created an image as a
leader, he acts accordingly. So, the unifying force is an important motivating force.

8. Motivation can be positive or negative: Positive motivation means use of incentives. The
incentives may be financial and non-financial. Pay revision, confirmation of job and the like
are positive motivations. Negative motivation means emphasizing penalties. Demotion and
termination from the service are some of the examples of negative motivation.
9. Motivation and job satisfaction are different: Motivation is goal-oriented behavior. Job
satisfaction is the outcome of a job performance. So, motivation is entirely different from job

A manager guides the people in a desired manner in order to achieve organizational objectives.
Two important things are necessary to perform any job. People have ability to work and
willingness to work. Unwillingness to work is of no use. Hence, there is a need for motivation to
create willingness in the minds of workers to do a job. So, the performance may be expressed in
the following formula:
Performance = ability * motivation (willingness)
E.F.L. Brech has explained the importance of motivation as “The problem of motivation is the
key to management actions and in its executive form, it is among chief tasks of the general
manager. We may safely lay it down that the tone of an organization is the reflection of the
motivation from the top”.

The importance of motivation is briefly discussed below:
1. Maximum utilization of factors of production: Workers perform the work sincerely through
the inspiration of motivation. This creates the possibility of maximum utilization of factors of
production viz., labour and capital.
2. Willingness to work: Motivation influence the willingness of people to work. Aman is
technically, mentally and physically fit to perform the work but he may not be willing to
work. Motivation creates a willingness on the part of workers to do the work in a better way.
3. Reduced absenteeism: Financial incentives schemes coerce the workers to work more.
Financial incentives scheme is framed in such a way that monetary benefits are given on the
basis of number of hours engaged. This reduces absenteeism.
4. Reduced labour turnover: Motivation has both financial and non-financial incentive schemes.
This helps to retain the existing labourers. The enterprise can plan its activities on long-term
basis with the help of reduced labour turnover.
5. Availability of right personnel: Financial and non-financial incentives not only retain the
existing employees but also attract the employees from outside the enterprise. In other words,
right people are attracted from outside to work the enterprise.
6. Building of good labour relations: Motivation helps to solve the labour problems of
absenteeism, labour turnover, indiscipline and grievances. This ensures building of good
labour relations.
7. Increase in the efficiency and output: Both workers and management have got benefits from
motivational plans. On the one hand, wages of the workers increase corresponding to the
increase of output and efficiency. On the other hand, the productivity of the organization and
its profits increase due to consolidated efforts of the motivated people.
8. Sense of belonging: A proper motivation scheme promotes closer rapport between enterprise
and workers. The workers begin to feel that the enterprise belongs to them and consider its
interests as their own. Thus there is no difference between workers and enterprise.
9. Basis of co-operation: Efficiency and output are increased through co-operation. The co-
operation could not be obtained without motivation, so, motivation is basis of co-operation.

10. Helps in realising organizational goals: Organisational goals are achieved quickly through
motivation. Motivated employees have a feeling of total involvement in the performance of
organization task. Employees may work whole-heartedly for the realisation of organizational
11. Improvement upon skill and knowledge: Employees have promised efficient job performance
or completion. Hence, the employees may improve upon their skill and knowledge required
for the job.


The following are some of the types of motivation:

1. Negative motivation: Negative motivation is based on force of fear. If the worker fails to
complete the work, they may be threatened the demotion, dismissed, lay-off, pay-cut etc. The
negative motivation gives maximum benefits in the short-run. In the long-run, there are no
such benefits available to the organization. Negative motivation results in disloyalty to the
group as well as to organization.
2. Positive motivation: Positive motivation is based on rewards. According to Flipps, “Positive
motivation is a process of attempting to influence others to do your will through the
possibility of gain on reward. “Praise, participation in decision-making process, pride and
delegation and authority and responsibility are some of methods of positive motivation.
3. Extrinsic motivation: Motivation is available only after the completion of a job. Increase in
wages, retirements benefits, rest periods, holidays, health wages, health insurance and the like
are examples of extrinsic motivation.
4. Intrinsic motivation: Intrinsic motivation is available at the time of performance of work.
These motivations provide a satisfaction during the performance of the work itself. Praise,
recognition, power, delegation of authority and responsibility, competition and participation in
the decision-making process are some of the examples of intrinsic motivation.
5. Financial motivation: Financial motivation is directly or indirectly associated with money.
The most important financial motivations are wages and salaries. Bonus, profit-sharing,
vacation pay, free-medical services, retirement benefits and insurance are some of the other
financial motivations.
6. Non-financial motivation: Non-financial motivation is that motivation which is not associated
with monetary rewards. Praise, job rotation, delegation of authority and responsibility,
participation, recognition and power are some of the examples of non-financial motivation.
According to Robert Dulin, “Non-financial incentives are the psychic rewards or the rewards
of enhanced position, that can be secured in the organization”.


Prof. Douglas McGregor has introduced two theories in his famous book. “ The Human side
of Enterprise,” They called „X‟ theory and „Y‟ theory. A brief explanation of „X‟ theory is given

1. X-theory: This theory is based on „papa known best.‟ In other words, a manager has
thorough knowledge and excludes workers from decision-making process. A manager has
authority or power to take decisions. The workers should follow whatever decisions are
taken by the manager.
2. Assumption of theory :
1. Workers have an aversion to work inherently.

2. Workers may find a way to postpone the work completion in laziness.

3. Workers may do the job half-heartedly
4. Fear of punishment can motivate the workers into action.
5. The worker may know the hazards of non-performance of a work.
6. No worker is ready to accept any responsibility.
7. There is a need for explaining the consequences of being inactive.
8. Workers are not interested in achievement. They prefer to maintain status quo.
9. A worker prefers to be directed by others.
10. Workers hate to improve their efficiency. The reason is that they fear losing their present
11. Worker is alone one of the factors of production and does not deserve any special
12. Worker lacks integrity.
13. Worker avoids taking decision whenever necessary.

X-theory is regarded as the means to supervise and control the workers. Decision making in
all the fields is entrusted with the managers. Workers are allowed to express their suggestions
and emotions. But the decisions are taken by managers and workers are forced to follow the

3. Y-Theory: Y-theory is just opposite to X-theory. So, X-theory is considered as traditional
theory and Y-theory is considered as modern theory. Y-theory emphasizes the importance
of workers in the accomplishment of enterprise objectives.


1. The average human being has the tendency to work. A job is as natural just like a play.

2. Once the worker understands the purpose of job, he may extend his co-operation for job

3. Worker can put in his best efforts for the accomplishment of enterprise objectives early.

4. Worker has self direction, self motivation, self discipline and self-control & self control.

5. If right motivation scheme is prepared by the management, the worker is ready to accept
extra responsibility.

6. The existing worker has competence to work and can take right decisions.

7. A worker expects recognition of the successful accomplishment of task.

8. A worker may exhibit his efficiency even for non-momentary rewards such as
participation in decision-making, increased responsibility etc.,

9. The potentialities of human beings are not fully utilized by any industry.

According to Y-theory, a worker has integrity and readiness to work hard. He is willing to
participate in the decision making process and shows a sense of creativity and imagination. So, X-
theory may be said to be a negative and pessimistic one and Y-theory may be be said to be positive
and optimistic.


Prof.William G.Ouchi has developed theory Z. This theory is based on the comparative study of
Japanese and American management practices. Theory Z described how Japanese management
practices can be adopted to the environment of other countries especially in the United states. This
theory focuses attention on the organizational behavior side of management. Theory. Z can be treated
as a model for motivation. The theory believes in the philosophy of management. Both major and
minor decision are taken through consensus in the truly democratic and dynamic management.

1.Workers dislike to work by themselves 1.Workers fuel that work is as natural as play
2.Workers are not ready to accept responsibility. 2.Workers are ready to accept responsibility if
proper motivation is available to them.

3.Workers prefer to be directed by others. 3.Workers are directed by themselves.
4.Workers are unambitious 4.Workers are ambitious
5.Workers by nature resist changes and want
5.Workers are ready to cope with changes
6.Workers lack creativity and fail to solve
organizational problems
6.Workers have high degrees of creativity and
succeed in solving organizational problems.

7.It focuses the lower level needs of workers i.e.,
physiological and safety
7.It focuses not only the lower level needs but
also higher level needs i.e. social, esteem and
self actualization of workers.

8.Strict control is necessary to achieve
organizational objectives
8.Workers exercise self-control and self-
direction to achieve organization of workers

9.Authority is not delegated 9.Authority is delegated
10.Autocratic leadership is followed. 10.Democratic leadership is followed.

Theory Z emphasis external control of human behavior. Mutual trust reduces conflict among
the employees and ensures team spirit. In practice, the management people workout their own style of
management on the basis of the type of people dealt with and the nature of work performed.


The distinguish features of theory “Z” are briefly explained below.

1. Trust : The existence of trust and openness between employees, workers, trade unions and
management executives avoids comflict maximum.Besides, employees extend their co-
operation fully to achieve the objectives of the organization. According to William
G.Ouchi, trust, integrity and openness are necessary to an effective organization.

2. Life-Time Employment : Life time employment should be given to all employees in order
to promote a strong bond between employees and organization. Shareholders or owners of
the company should forgo their dividends or profits to avoid retrenchment of workers
during adverse business conditions.

3. Involvement of Employees : Involvement of employees means participation of employees
in decision making process. Participation of employees is not necessary in all decisions.
But at the same time, any decision affecting employees in any way should be taken jointly.
If the management wants to take a decision independently, the employees should be
informed the position of management so that the employees do not feel ignored. Such
involvement generates a sense of responsibility.

4. Integrated Organisation : An integrated organization gives importance to job rotation. The
reason is that job rotation improve understanding of interdependence of tasks. This type of
understanding leads to team spirit.

5. Restricted Promotions :Promotion of worker is restricted to the maximum. The reason is
that promotion leads to saturation in the adoption of latest technology. The promoted
workers are not ready to cope with changes. Instead, the management gives importance to
the horizontal movement of workers so that workers do not have a sense of stagnation in
the same post for a long time.

6. Co-ordination : The role of any leader is co-ordinate the efforts of employment and create
class feeling in the organization. The leader should have a discussion with each and every
employee and analysis the problem.

7. No Formal Structure : There is no formal structure to the organization as per theory Z At
the same time, there should be a perfect team-work with co-operation, ideas, strategies,
plans and information. For example, A cricket team plays well and solves problems with
no formal reporting relationships.

8. Motivation : If workers are allowed to work with their superiors or on specific projects.
They will be motivated. The reason is that there are the prospects of greater income in
future due to their involvement.

9. Informal Control System : Organisation should make the control system an informal one.
So, importance is given to mutual trust and co-operation rather than superior sub-ordinate
relationship for this purpose.

10. Working Environment : The stable working environment is necessary to the workers for
increasing their satisfaction.


1. Basic physiological needs: The basic physiological needs are concerned with Breeding,
shelter, sexual gratification, clothing etc..,These needs are inherent in future. There are
necessary both to man and animals. If these needs are not satisfied, other needs will not
emerge. Man lives by food along. These needs are a powerful motivating force than

2. Safety and security needs: Safety and security needs emerge only when the basic
physiological needs are satisfied. Safety needs are concerned with physical danger or loss
of existing basic physiological needs. Security needs are concerned with loss of job,
support illness and the like. Hence, the workers attempt to get job security, insurance,
pensionary benefits and so on.

3. Belonging and social needs: Man in Social animal. He wants to love and be loved in a
society or in family. Exchange of feelings and grievances, love, sociability, recognition,
conversation and belongingness are some of the examples of social needs.

5.Self Actualisation Needs
4.Esteem and Status Needs
3.Belonging and Social Needs
2.Safety and Security Needs
1.Basic Physiological Needs

4. Esteem and status needs: Esteems and status needs are otherwise called ego needs or
egoistic needs, Self-confidence, independence, achievements, competence, knowledge,
status, recognition and appreciation are some of the examples of esteem and status needs
Most of these are rarely satisfying.

5. Self-Actualisation needs: Self-actualisation needs are otherwise called self realization
needs . Self-actualisation refers to the desire to become everyting that one is capable of
becoming. For example a doctor thinks that he is capable of saving the life of a patient. A
teacher thinks that he is capable of giving best teaching to students. In other words, a
maximum level of excellent performance is done by the individual.


In the late 1950‟s Frederick Herzberg had conducted a study on motivation. The study
has developed a theory of work-motivation. This theory has broad implications for
management in the effective utilization of human resources. So, this theory as Herzberg
Motivation theory of needs. It is otherwise called Maintenance Theory of Motivation,
Hygiene Theory of Two-Factor Theory of Motivation.

Herzberg tried to understand from his studies the motivation problem and to identify
the human behavior, nature and needs which are invaluable to organization and
individuals. In this study, he interviewed 200 engineers and accountant from 11 industries
in Pittsburgh area. He asked these persons to think of the time when they felt good and
bad about their job and describe the conditions which such feelings.

The study reveals that the factors responsible for job satisfaction are quite different from
those responsible for job-dissatisfaction. These two feelings were not obverse of each
other. If a factor is responsible for job satisfaction, the absence of such a factor would not
mean job dissatisfaction but it might be called the job-satisfaction.

Similarly, a factor is responsible for job dissatisfaction. The absence of such a factor
would not mean job satisfaction but it might be called no job-dissatisfaction. Thus, this
theory is based on two of factors. They are factors leading to job satisfaction and factors
leading to job dissatisfaction.

According to Herzberg motivational factors are responsible for job satisfaction. Hygiene
if maintenance factors are responsible for job-dissatisfaction.