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Motivation means a process of stimulating people to action to accomplish desired goals.W.G. SCOTT

After employees are hired and trained, it is important to motivate them to get the desired effort
from them to achieve organizational objective . While designing their compensation package, at
the outset, we try to meet their expectation suitably identifying their intrinsic and extrinsic needs
,with in the given policies and procedures of the organization. However ,this is restricted only to
those cases,where we can afford to become flexible, to attract and retain talents in key positions,
without contributing to general dissatisfaction of other employees. But problems on employees
motivation become evident,when employees of motivation started perceiving that there is wide
mismatch between their expectations and organizational commitments. At times such perceived
expectations of employees far exceed the organizational commitments, resulting in a significant
drop in their perception.
This study helps to know the importance of motivation in an organization. This study also
throw lights on the different kinds of motivational techniques provided by the company, the
attitude of the employees regarding the supervision ,the factors that influence the motivation of
the employees and this study also gives suggestions to improve of the motivation level of the


This study helps to know the opinion of employees working in Mahindra, kollam. To know the
different kinds of factors provided by the organization. To knows the level of motivation of
employees in different situation. To know whether the motivational techniques affect the
satisfaction level of employees

To know about the importance of the motivation.

To know the motivational level of employees.
To know about the different motivational techniques provided by the company to the
To be aware of the different factors influencing the motivation of employees.
To study the effectiveness of motivation at TVS(Mahindra dealer),kollam.
To assess the overall performance of motivated employees.


This study is conducted for employees working in T V Sundram Iyengar & Sons
Pvt Ltd (Mahindra dealer),kolam for a period of 3weeks.
Through this study an effort has been made to know theatt the employees are
satisfied with the motivational techniques and also find out the drawbacks and existing
needs of the employees in the organization. And also an effort has been made to know
the employees are satisfied with the motivational techniques provided there and thus to
see whether a healthy relationship is maintained between the employees themselves
and between the management of Mahindra Motors.

1 . The time allowed for this study is limited, which is not sufficient to conduct a deep study
on this topic.
2 . The personal interviews result much delay in the collection of data as the investigator had to
respond their wins and fences toget the right data.
3 . The data is handled manual; it is prone to data entry error and manipulations errors making
the data less reliable.
4 . Data collection is very expensive.
5 . There are possibility of personal bias from part of employees with respect to their
organization and it is also one of the limitation that researcher are confronted.

History and development of automobiles also marks the dynamism in technological growth
men have achieved. From the days of horseless carriage to the modern age self-guided
automobiles that are meticulously using cutting-edge technology, we have certainly-traveled too
Automobile industry in india is still in its infancy but growing rapidly. The opportunities
in the automobile industry in india are attracting big names with the big purse and they are
investing vigorously in infrastructure, design and development, and marketing. Automobile
industry in india is today poised for the big leap and this segment helps you to be ready for that.
The automobile industry is one of the core industries in Indian economy, whose
prospect is reflective of the economic resilience of the economy. India has become the
playground of major global automobile industries.
The automobile industry in india is gradually evolving to replicate those of developed
countries. The report focuses on the trends that are emerging in the industry across segments,
namely, passengers cars/ multi-utility vehicles, commercial vehicles, two wheelers and tractors.
The qualitative analysis of the various trends reveals that the industry offers immense scope even
for allied industries and those looking at investing in the auto industries a background, a brief
perspective of the global automobile industry across segments has been provided with
comparisons in Indian scenario wherever needed.
It discusses the current scenario in the industry , with detailed look on segmentation ,
structure, and supply and demend scenarios. A detailed competitive analysis of the industry has
been provided backed warn comprehensivedetails on production , sales, exports and imports over
the years, across segments.
Sales have increased with the entry of several foreign manufactures and the introduction
new vehicles models. The report also deals with aggressive marketing strategies undertaken by
different manufactures in India. This highlights key issue influencing the automobile industry in
India such as import and excise duties, emission norms etc .and it also deals with various
government regulations.


The history of automobile industry actually began about 4,000years ago when the first
wheel was used for transportation in India. Several Italians recoded designs for wind driven
vehicles. The first was Guido da Vigevano in 1335.It was a wind- mill type drive to gears and
thus to wheels. Vaturio designed a similar vehicle that was also never built. Later Leonardo da
vinci designed clockwork driven tricycle with tiller steering and a differential mechanism
between the rear wheels.
In the early 15th century , the Portuguese arrived in China and the interaction of the two
cultures led to a variety of new technologies, including the creation of a wheel that turned under
its own power. By the 1600s, small steam powered engine models were developed, but it was
another century before a full sized engine powered vehicle was created.
Although by the mid -15th century the idea of a self propelled vehicle had been put into
practice with the development of experimental vehicles powered by means of spring,
clockworks, and the wind, Nicolas- Joseph Cugnot of France is considered to have built the first
true automobile in 1769. Designed by Cugnot and constructed by M. Brezin, it is also the first
vehicle to move under its own power for which there is a record.
Cugnots three wheeled steam powered vehicle carried four persons and was meant to
move artillery pieces. It had a top speed of a little more than 3.2km/h(2mph)and had to stop
every 20 minutes to build up a fresh head of steam.
Evans was the first American who obtained a patent for a self propelled carriage. He
in fact, attempted to create a two-in- one combination of a stream of wagon and a flat bottomed
boat, which didnt receive any attention in those days. During the 1830s the steam vehicle had
made great advances. But stiff competition from railway companies and crude legislations in
Britain forced the poor steam vehicle gradually out of use on roads. The early steam powered
vehicles were so heavy that they were only pracyical on a perfectly flat surfaceas strong as iron.
A road thus made out of iron rails became the norm forthenext hundred and twenty five years.
The vehicles got bigger and heavier and more powerful and as such they were eventually capable
of pulling a train of many cars filled with freight and passengers.
Carl Benz and Gottlieb Daimler, both Germans, share the credit of changing the
transport habit of the world, for their effort laid the foundation of the great motor industry, as we
know it today. First, Carl Benz invented the petrol engine in 1885 and a year later Daimler made
a car driven by motor of his own design and the rest is history. Daimlers engine proved to be a
great success mainly because of its less weight that could deliver 1000 rpm and needed only
very small and light vehicles to cany them.

France too had joined the motoring scenario by 1890 when two Frenchmen Pan hard
and Levassor began producing vehicles powered by Daimler engine, and Daimler himself,
possessed by the automobile spirit, went on adding new features to his engine.
He built first V-Twin engine with a glowing platinum tube to explode the cylinder
gas-the very earliest form of sparking plug. The engines were positioned under the seat in most
of the Daimler as well as Benz cars. However, the French duo of Pan hard and Levassor made a
revolutionary contribution when they mounted the engine in the front of the car under a
bonnet. For many years after the introduction of automobiles, three kinds of power sources
were in common use: steam engines, gasoline or petrol engines and electric motors. In 1900,
over 2,300 automobiles were registered in New York, Bostol, Massachusetts, and Chicago.Of
these, 1,170 were steam cars, 800 were electric cars, and only 400 were gasoline cars.
In ten year from the invention of the petrol engine, the motorcar had
evolved itself into amazing designs and shapes. By 1898, there were 50 automobile manufacturing companies in the United States, a number that rose to 241 by 1908. In that year,
Henry Ford revolutionized the manufacture of automobiles with his assembly - line style of
production and brought out the Model T,a car that was inexpensive, versatile ,and easy to
The introduction of the Model T transformed the automobile from a plaything of the
rich to an item that even people of modest income could afford; by the late 1920s the car was
common place in modern industrial nations.
Hebert Austin and William Morris, two different car makers, introduced mass
production methods of assembly in U K, thus paving the way for a revolution in the automobile
industry. Austin seven was the worlds first four seated baby car which brought the pleasures of
monitoring to many thousands of people who could not buy a larger, more expensive car. Even
bull-nose MorrIS with font mounted engine became the well-loved model and one of
the most popular cars in the 1920s.
Automobile manufacturers in the 1930s and 1940s refined and improved on the principles
ford and other pioneers. Cars were generally large, and many were still extremely expensive and
luxurious; many of the most collectible cars date from this time.
The increased affluence of tri United states after world war2 led to the development of
large, petrol-consuming vehicles, while most companies in Europe made smaller, more fuelefficient cars. Since the mid -1970s the rising cost of fuel has increased the demand for these
smaller cars , many of which have been produced in Japan as well as in Europe and the United
Clearly, the consumer is the king in a competitive environment. The automobile sector
is just one of several examples of how the consumer as benefited from competition. For decades

,the Indian consumer as paid dearly our policy makers confusion between socialism and
capitalism. The thoughtless policy frame as neither allowed efficient producers nor consumers to
get optimum value their effort or money. The recent price was triggered by Telcos Indica is an
interesting case study. Let us trace the evolution of the Indian passenger car industry. Since
independence till the early 1980s there were only to major Indian players -Hindustan Motors
and premier auto in the industry. As new players were barred by licensing, and imports by absurd
import duties, these two car manufacturers constituted the oligopoly. They had neither financial
muscle nor any incentive to invest in technology or quality. Little wonder the Indian consumer
had the worst quality of cars in the world. Worse than cars available even in countries like Nepal,
Sri Lanka or Bangladesh besides the exorbitant duty structure ensured that ownership was
restricted to the super rich the oligopolists were happy with this situation. until the then prime
ministers omnipotent son had brilliant idea To manufacture a people car at an affordable price.
Policies, government machinery, etc. were twisted to,cement prices in un official markets make
the dream come true. The oligopolists were furious (read premier Autos annual reports of late
1980s /early 1990s). but the people are maruti 800 came into existence.
We Indians have been quite happy with its japanees technology. But I realized how
poorly it compared to international cars when a well-built foreign guest of mine, unable to fit
himself in the front seat , remarked, is this car or a toy? All thought that people car was
available at such a low price because of the benevolent pricing our egalitarian government
,which holds the majority stake in the company.Then competition arrived even for the people car
(the competitor, indica, though is yet to hit the roads) and behold ,the people car is affordable by
many more.-it is 10-12 percent cheaper. Some other car makers have slashed prices by almost
25%.The private players plan to sell 10000 cars at lower price then the erst while Peoples
Car has brought down prices of models that together sell about 250000 units every year. In
cars, the price reduction is quantifiable and visible. In the past seven years, there have been
hundreds of products where unshackling competition has benefited the consumer.



T V Sundaram Iyengar & Sons Ltd.commonly known as TVS & Sons Ltd .was
established in 1911.It is the holding company of TVS Group in and is a diversified Group in
the automobile field . While the core businesses also include auto components manufacturing &
distribution, logistics etc., the company is known for its presence in automobile distribution in
more than seven states .TVS & Sons involvement with all its associates dates back to several
decades and is growing strong day by day.

The business actives include dealership for automobile vehicle, distribution of spares
for after-market ,sales & service support for garage equipment ,sales & service product for
special application like construction & material handling .In its desire to reach out to the
customer directly ,TVS & sons entered into the business of customer centric car service through
its brand My TVS . My TVS is an independent , multi brand and integrated after market
Car service business with core value of relationship and trust .My TVS Provides car owners
regular periodic maintenance services and complet e car body repair facility through My TVS
ALL car service and provides emergency roadside assistance through My TVS
24*7 Emergency service .The company has recently started two more initiatives ,namely My
TVS and TVS Part smart.
The TVS Group trace its origin to a rural transport service , founded in 1911 in Tamil
Nadu , India .Today ,this renowned business conglomerate remains faithful to its core ideas of
trust ,value ,service and ethics. The TVS Group is Indias leading supplier of automotive
component and one of the country most respected business group .With a combined turnover of
more than USD 5 billion , the
TVS Group employs a total workforce of arounded 25
,000. Charting a steady growth in term of expansion and diversification ,it currently comprises
comprises around 43 companys .These companies operates in diverse field ranging from twowheeler and automotive component manufacturing to automotive dealerships, finance and
electronics.Uniting this multiple businesses is a common ethos of quality, customer service and
social responsibility .
The company has attained a turnover of USD 1 billion (over INR 4000 CRORES )
And has employee strength of 5000 .Sundram Motors are d
ealers for Ashok Leyland ,Honda ,ford and Mercedes benz .in addition to this,it distributes heavy
duty commercial vehicles and cars .This division also distributes auto spare parts for several
leading manufactures .
TVS & Sons distributes commercial vehicles ,utility & sports multi-utility vehicles
,passenger cars and constration equipment represent ting various leading automobile vehicles
manufactures ,such as Ashok Leyland ,Honda ,Mahindra & Mahindra Navistar ,Mahindra
Renault and escorts .The company also represent Bharat Petroleum Corporation
Ltd .The company has more than 100 outlets and sells over 40000 vehicles .it provides services
for more than 500000 vehicles per annum .TVS & Sons is the leading automobile distribution
company in India .TVS & Sons ltd .a domination dealer in South India until 90s, has now
become a pan India organization in automobile after- market verticalover the years. All the
outlets are constantly been upgraded in order to provided the right ambience to the customers;
the company is also known for its contribution to the customers by reducing the down time of
the vehicles and improve the profitability of customers using tools like Kaizen $Lean.

TVS$ Sons is one of the largest automobile spare parts distributers in India. It sells
over 35,000 part numbers manufactured by more than 80 suppliers and caters to over 7,000
customers across the country. Sophisticated warehousing facilities with state of the art IT
infrastructure enable smooth procurements and deliveries. We also market quality products under
the name of TVS brands with a key communication TVS Quality spare parts Move safe with
us. In pursing business excellence, T.V. Sundram Iyengar $Sons Ltd. Is committed to supplying
genuine spare parts and ensure timely delivery to its customers. The company regularly
innovates improves its systems and processes to enhance customer/ supplier satisfaction. TVS
$Sons is commited to creating an environment for the development of employees, to cater the
future needs of the organization.
It started as a business unit of TV Sundram Iyengar $Sons LTD. in1995,operating
several- state- of- the -art ware houses across the country. The business unit has been hived off as
a separate company, 2004. TVS Logistics Services Ltd. Has perfected the science of professional
logistics management. The company has vast experience and know-how, to handle logistics of
immense scales .The company partners industry leaders to operate freight forwarding,
warehousing operations and logistics operations across Europe, the USA and the neighboring
countries. The company is equipped with warehousing operations that encompass 4,00,000 sq.ft.
in 13 fully operational centres. The total volume handled per year for both warehousing and
inbound logistics is approximately INR1,000 crores. The company has tied up with leading
consultants across the globe and provide support to almost all the automobile companies in india.
The client list includes vehicle manufacturers such as Ashok Leyland, Fiat, ford, General
Motors, JCB, John Degree, Mahindra$ Mahindra, Royal Enfield, Tata Motors, Eicher Motors,
TVS Motors company, L$T komatsu.
The client list include automotive component manufacturers such as Brakes India,
Cummins India, Delphi TVS, Indian Japan lighting, Indo Nippon Electricals, Lucas TVS,
Sundram Clayton, Sundram fasteners, Tata Cummins,$ Visteon, Purolator, Mahale, Detroit
Diesel, IPL, LPS, and tier land 2 companies. The operating responsibility of logistics is the
geographical repositioning of raw materials, work in progress and finished inventories, wherever
required, at the lowest cost.
The entire basket of services required for supply chain management includes :

Integrated logistics
Outbound logistics
Inbound logistics
Export warehousing(know-down/ after-market)

T V S Globalsourcing is one among the various lines of businesses
of T V Sundram Iyengar $ Sons .Ltd., and is in the business of sourcing
precision quality automotive/ industrial components $ products from India and
other leading cost competitive countries to customers in Europe, U K$
USA.The customers of this division are mainly automotive /industrial OEMs
and their tier1/tier2 suppliers.
TVS global sourcing is ISO 9001:2000 Certified and has judiciously
blended experience and youth in a compact team of highly skilled purchasing $
quality engineers drawn from various reputed Indian organization and MNCs.
This has enabled division to take on the role of an Indian sourcing office for
each customers. In addition to its access to the vast manufacturing capabilities
within the TVS group, TVS global sourcing has formed steategic alliances with
non TVS group manufactures both in India as well as other LCC countries. It
possesses the expertise to manage the supplier quality systems in conformance
to ISO/TS 16949 and customer specific requirement.
TVS Global sourcing offers a comprehensive menu of services
like supplier/ supplies management, product/ process audits customized
inspection services , logistics/ warehousing solution combining the capabilities
of Logistics services Ltd. This ensures saving in the overall procurement cost
to our customers.
The customer centric my offers a multi brand integrated service solution to car
customers, founded on their full life cycle of car ownership.
A revolutionary concept born with the new millennium focuses to fulfill the car
servicing , repairs , body rework, on road emergency service and insurance needs of the car
customers irrespective of the car brand.
The business model of My TVS is based on the core strengths of TVS which are
Relationship and Trust, and present day requirement of customer centricity.

My TVS All Car Services-regular /periodical maintenance.

My TVS 24*7 Emergency Services emergency roadside assistance.
My TVS Collision Repairs services- complete body rework.
The company has also diversified into sales $services of garage equipments and
specializes in installing commissioning and providing complete after sales service
support for critical imported state of the art automobile service equipment. From 1992,
the division had slowly grown with times and today forms a separate division under TVS

umbrella. What once started as a one man department with resources borrowed from
other sections is today a 60 member team with its own purchases, stores and other
managerial infrastructure.

Body shop equipment

Consumable $Tools
Diagnostic equipment
Paint shop equipment
Service shop equipment
Wheel service equipment
Workshop equipment

At TVS, care for its employees is a time honoured tradition.from recruitment to retirement, the
company is committed to enhancing the quality of their lives. Its welfare initiative range from
continuous training and skill upgradation programmes to well planned townships, medical
centres and educational assistance.

Honouring of employees associated with the organization for a long duration with the
certificate symbolizing the year of service and cash rewards.
Handing over the settlement payment on the day of retirement.
Special leave with cash given to employees for their childrens marriage.


T V Sundram Iyengar & Sons Ltd. Has been carrying out corporate
social responsibility activities much before its due recognition and has recognized the
responsibility to serve the community they operate in. TVS believes that all stake holders must
benifit, whether it is employee welfare or involvement of the employees in fulfilling the needs of
the society.
The company had joined hands with the local administrative body and tested drinking
water samples, recommended corrective measures along with educative handout and distributed
preventive medicine for affected people for eradication of malaria during last monsoon season.


The company has been conducting regular health check-ups, eye donations,
blood donation camps, distribution of wheel-chairs, awareness camps, assistance to Salvation
Army Leprosy hospital, distribution of uniform and scholarships for education to the needy, were
conducted in all outlets across the country.
1. Deming Quality Award
Sundram Clayton
Sundram Brake Lining
Brakes India
Lucas TVS
TVS Motor Company
2. Japan Quality Medal
Sundram Clayton
TPM Excellence Award
Sundram fastners
TVS Rubber
Brakes India
TVS Tyres
TVS Motor Company

GM North America, Best Supplier Award

Sundram Fastners(five consecutive year)

TVS &Sons distribute commercial vehicles, utility and sports multi utility vehicles,
passenger car and construction equipments representing various leading automobile vehicle
manufacturers, such as Ashok Leyland, Honda, Mahindra &Mahindra, Mahindra Navisters,
Mahindra Renault and Escorts. The company also represent Bharath Petroleum Corporation Ltd.
company has more than 100 outlets and sells over 40000 vehicles. It provides services for more
than 5,00,000 vehicles per annum.TVS& Sons is the leading automobile distribution company in
India. TVS & Sons Ltd, a dominant dealer in South India until 90s, has now become a PAN
India organization in automobile after market vertical over the year. All the outlets are
constantly been upgraded in order to provide the right ambience to the customer; the company is
also known for its contribution to the customers by reducing the down time of the vehicles and
improve the profitability of customers using tools like Kaizen & LEAN.

Ashok Leyland
Ashok Leyland leading automobile giant, manufactures state of the art vehicles for
commercial , defense and special projects. This includes 7.5 RLW to 145RLW vehicles for
goods transportation. Ashok Leyland vehicles have established a reputation in the market today.

Superior Performance

The companys division, sundram Honda, is the authorized dealer for Honda Siel Cars
India Ltd. The showrooms conforms to Hondas global specifications and meet international

Customer service
Mahindra $Mahindra
TVS $Sons are authorized dealers for Mahindra $Mahindras range of utility
vehicles and LCVs in Kerala. To facilitate convenient access for the customers, it has set
up service and spares outlet across Kerala.
The company has also diversified into marketing (sales $ service)products for
special applications, such as construction and material handling equipment, man lifts, air
compressors, door closure units etc. representing products of Escorts/massat/ JLG for
Tamilnadu $ Keralaand has earned a niche for itself in this category of business. The
company has also launched a new avenue of special products /services providing fork lift
trucks with trained operators on a monthly lease basis, under its unique own &operate


Rensis Likerthas called motivation as the core of management. Motivation is
the core of management. Motivation is an effective instrument in the hands of
management in inspiring the workforce .It is the major task of every manager to motivate
his subordinate or to create the will to work among the subordinates. It should also be
remembered that the worker may be immensely capable of doing some work, nothing can
be achieved if he is not willing to work creation. Creation of a will to work is motivation
in simple but true sense of term.
Motivation is an important function which every manager performs for actuating
the people to work for accomplishment of an objective of the organization. Issuance of
well conceived instructions and orders does not mean that they will be followed. A
manager has to make appropriate use of motivation to enthuse the employees to follow
them. Effective motivation succeeds not only in having an order accepted but also in
gainig a determination to see that it is executed efficiently and effectively.
In order to motivate workers to work for the organizational goals, the
managers must determine the motives or needs of the workers and provide an
environment in which appropriate incentives are available for their satisfaction. If the
management is successful in doing so; it will also be successful in increasing the
willingness of the workers to work. This will increase the efficiency and effectiveness of
the organization. There will be better utilization of resources and workers abilities and
The word motivation has been derived from motive which means any idea,
need or emotion that prompts a man in to action. Whatever may be the behavior of man ,
there is some stimulus behind it. Stimulus is dependent upon the motive of the person
concerned. Motive can be known by studying his needs and desires. There is no universal
theory that can explain the factors influencing motives which control mans at behavior at
any particular point of time. In general , the different motives operate at different times
among different people and influence their behavior. The process of motivation studies
the motives of individuals which cause different types of behavior.
It is defined as the processes that account for an individuals intensity,
direction and persistence of effort towords attaining a goal. The three key elements in the
definition are intensity, direction and persistence. Intensity is concerned with how hard a

person tries. This is the element most of us focus on when we talk about motivation.
However , high intensity is unlikely to lead to favorable job performance outcomes unless
the effort is channeled in a direction that benefits the organization. Therefore,we have
consider the quality of effort as well as its intensity. Effort that is directed towards, and
consistent with, the organizations goal is the kind of effort that we should be seeking.
Finally, motivation has persistence dimension. This is a measure of how
long a person can maintain effort. Motivated individuals stay with a task long enough to
achieve their goal.
Motivation involves getting the members of the group to pull weight
effectively, to give their loyalty to the group, tocarry out properly the purpose of the
organization. The following results may be expected if the employees are properly




The workforce will be better satisfied if the management provides them with
opportunities to fulfil their physiological and psychological needs. The workers
will cooperate voluntarily with the management and will contribute their
maximum towards the goals of the enterprise .
Workers will tend to be as possible by improving upon their skiils and
knowledge so that they are able to contribute to the progress of the
organization . This will also result in increased productivity.
The rates of labours turnover and absenteeism among the workers will be
There will be good human relations in the organization as friction among the
workers themselves and between the workers and the management will
The number of complaints and grievances will come down . Accident will
also be low.
There will be increase in the quantity and quality of products. Wastage and
scrap will be less. Better quality of products will also increase the public
image of the business.



Identification of need
Course of action
Result Postive/Negative
Feed back

Intrinsic motivation occurs when people are internally motivated to do something because it
either brings them pleasure, they think it is important, or they feel that what they are learning is
morally significant. Extrinsic motivation comes in to play when a student is compelled to do
something or act a certain way because of factors external to his or her(like money or good
When a manager wants to get more work from his subordinates then he will have to
motivate them for improving their performance. They will either be offered incentive for more
work, or may be in the space of rewards, better reports, recognition etc., or may instill fear in
them or use force for getting desired work. The following are the types of motivation:
1. Positive motivation. Positive motivation or incentive motivation is based on rewards.
The workers are offered incentives for achieving the desired goals. The incentives may be
in the shape of more pay, promotion, recognition of work, etc. The employees are offered
incentives and try to improve their performance willingly. According to Peter Drucker,
the real and positive motivators are responsible for placement, high standard of
performance information adequate for self control and participation of the worker as a
responsible citizen in the plant community. Positive motivation is achieved by the cooperation of employees and they have a feeling of happiness.
2. Negative motivation. Negative or fear motivation is based on force or fear. Fear causes
employees to act in a certain way. In case, they do not act accordingly then they may be
punished with demotions or lay-offs. The fear act as a push mechanism. The employees
do not willingly co-operate, rather they want to avoid the punishment. Though employees
work upto a level where punishment is avoided but this type of motivation causes anger
and frustration. This type of motivation generally becomes a cause of industrial unrest.
Inspite of draw backs of negative motivation, this method is commonly used to achieve
desired result. There may be hardly any management which has not used negative
motivation at one or the other type.
An incentive is something which stimulates a person towards some goal. It activates
human needs and creates the desire to work. Thus incentives is a means of motivation. In
organization increase in incentives leads to better performance and vice versa.
Man is a wanting animal. He continues to want something or other. He is never fully
satisfied. If one need is satisfied, the other need arises. Inorder to motivate the employees the
management should try to satisfy their needs. For this purpose, both financial and non financial
incentives may be used bythe management to motivate the workers. Financial incentives are thos

by developing each individuals strengths. This becomes a can do situation for everyone. The
really great thing about this is it builds positive energy within the company. Positive energy
always breeds positive energy.
which are associated with money. They include wages and salaries, fringe benefits, bonus,
retirement benefits etc. non financial motivators are those which are not associated with
monitory rewards. They include intagible incentives like ego-satisfaction, self actualization and
responsibility .


The 1950s were a fruitful period in the development of motivation concepts. Three
specific theories were formulated during this period , which although heavily attacked and now
questionable in terms of validity, were probably still the best known explanations for employee
motivation. These are the hierarchy of needs theory, theories X $ Y, and two factor theory. These
theories represent a foundation from which contemporary theories have grown, and practicing
managers still regularly use these theories and their terminology in explaining employee
Understanding what motivated employees and how they were motivated was the focus of
many researchers following the publications of the Hawthorne study result. The major
approaches that that have led to our understanding of motivation are Mcclelands achievement
need theory, behavior modification theory, Abraham H maslows need hierarchy theory or
deficient theory of motivation, ERG theory ofmotivation,Herzberg motivation hygiene theory,
J.S Adams equity theory,Vrooms expectation theory, two factor teory.
Every person has differen reason for working. The something obtained from work impacts
morale, employee motivation and the quality of life. To create positive employee motivation,
treat employees as if they matter because employees matter. These ideas will help to fulfill
people want from work .The challenge at work is to create an environment in which people are
motivated. The quality and variety of the training you provided is key for motivation. The
structure of your training programs bring interest about work priorities and create employee
There are many employee motivation factors that a manager must consider. In order to
properly conduct business employees needs to be well trained and motivated. How a manager
goes about this task is extremely important. one of the most important employee motivation
factor is treating people fairly and with respect. As a manager if you do not respect your
employees, you will never be able to motivate them. Furthermore, they will not respect you. You

can show that you respect your employees by assigning them task that they are best suited
for.everyone has a unique set of talents and skills. These are a huge resource for a manager. By
accepting your employees strong points you make them feel good, and they are motivated
because they can accomplish tasks best suited for them.
Using thee talents wisely lead us to another set of motivation factors. Managers need to
develop the leaders around them. Building on an individualsstrengths also allows them the
motivativation to work on areas they are not strong in. correctly combining tasks for employees
that focus on their strengths but also challenge them to do better in their weaker areas builds a
great employee base.Now the employees are starting to take on more and more challenging
projects with confidence. This leaves a manager to do what they need to do-manage. It also
builds employee self esteem and confidence. A confident employee is one who easily motivated.
Also by allowing them to develop in to very productive individuals you are showing respect for
your talents. This is and it self of motivating. It starts a cycle of self motivation and confidence
that continually builds up on its on momentum if carefully managed. This leads to an very
strong and loyal employee base. Companies with this type of management get things done. The
best advice on employee motivation factors is to start a cycle of self confidence and motivation
Probably the most widely known theory of individual need and motivation comes from
Abhraham Maslow who was a clinical psychology in U.S.A.,Maslow . He suggested that
every individual has a complex set of exceptionally strong needs and the behavior of an
individual at a particular moment is usually determined by his strongest need. According
to psychologists, human needs have a certain priority .As the more basic needs are
satisfied,the individual seeks to satisfy the higher needs .If the basic needs are not
satisfied,efforts to satisfy the higher needs will be postponed .Maslow stated that people
have five basic level of needs which they tend to satisfy in a hierarchical fashion. He
proposed that a human needs can be arranged in a particular order from the lowest level
need to the highest level need. This hierarchy of human needs is shown in the following

Self actualisation needs



Safety needs
Physiological needs


Physiological needs :The physiological needs are taken at the first or starting step for motivation
theory because these are the strongest needs until they are reasonably satisfied. There are the
basic bodily needs comprising of hunger, thirst, shelter, clothing, air and other necessities of life.
Human being first try to acquire these basic necessities of life, only then they tend to move to the
second level of needs.

Safety needs :In the hierarchy of needs, the second needs are safety and security needs. Once a
reasonable level of physiological needs are satisfied ,the human being tend to satisfy the second
level of needs which are security and stability .in todays civilized society, a person is usually
protected from physical danger or threats of violence etc. so that the safety and security needs
dwell upon economic and job security, security of source of income, provision for old age,
insurance against risk, medical insurance and other protective measures to safeguard the
satisfaction of physiological needs in the future which may be unpredictable.
Social needs :once the second level is satisfied, the human being strive to satisfy their social
needs. Man is a social a social animal, he wants to belong to a social group where his emotional
needs for love, affection, warmth and friendship are satisfied. Social needs can be satisfied by
being in the company of friends, relatives or other group such as work groups or voluntary
Esteem needs : forth in the hierarchy of needs is ego or self esteem needs which are concerned
with self respect, self confidence, recognition, appreciation, prestige, power and control. These
needs give the individuals a sense of self worth and ego satisfaction.
Self actualization needs : At the top of the hierarchy is the need for self actualization need to
fulfill what a person consider to be the mission in his life.after all his needs are fulfilled, a man
has the desire for personal achievement.he wants do something which is challenging and since
this challenge gives him enough push and initiative to work, it is beneficial to him and the
society. The sense of achievement gives him a sense of physiological satisfaction.
Thus Maslow suggested the following points.

There are five level of needs.

All these needs are arranged in a hierarchy.
A satisfied need is no longer a need. Once a need or a certain order of need is satisfied it
ceases to be a motivating factor.
Once one level of need is satisfied, the next level of need will emerge as the depressed
needs seeking to be satisfied.



Fredrick Herzberg and his associates developed the MOTIVATION HYGENE
THEORY, commonly known as the two factor theory, in the late 1950s and early 1960s.
Herzberg and his associates conducted a research based on the interview of 200
engineers and accountants who looked for 11 different firms in Pittsburgh area, U.S.A
the purpose of the research was to find out as to what variables are perceived to be
desirable goals to achieve and conversely, undesirable conditions to avoid. During the
course of the interviews, these men were asked to describe a few previous job
experiences in which they felt exceptionally good or exceptionally bad about jobs.
They were also ask to rate the degree of which their feelings were influvenced -for better
of worse -by each experience which they described.
Based upon the answers received from the 200 people, Herzberg concluded that
there are certain package that tend to consistently related to job satisfaction and on the
other hand, there are some factors ,which are consistently related to job dissatisfaction.
The last of job conditions, he referred to as MAINTENANCE OR HYGENE factors and
the first job conditions as MOTIVATIONAL FACTORS. The motivational factors are
intrinsic in nature and hygiene factors are extrinscic in nature. This two factors are
described in details as follows :
1. Hygiene Factors . Hygiene factors or the maintenance factors do not motivate
people, they simple prevent dissatisfaction and maintain status quo. Such factors do
not produce positive result but prevent negative results. If this factors are not there it
will lead to job dissatisfaction.This are not motivators, as they maintenance in zero
level of motivation or in other words in , this factors do not provide any satisfaction
but eliminate dissatisfaction .According to Herzberg there are ten maintenance or
hygene factors:
Company policy and Administration
Technical Supervision
Inter-personal relations with supervisor
Inter-personal relations with peers
Inter-personal relation with subordinates
Job security
Personal life
Working conditions


2.Motivational Factors: These factors are intrinsic in nature and are related to the job. The
motivational factors have positive effect on job satisfaction and often result in an increase in
total output. Thus, these factors have a positive influence on morale, satisfaction , efficiency
and productivity. Herzberg concluded that six factors motivate the employees:

Possibility of growth
Work itself


Herzbergs theory is appreciated on the ground that it provides an insight into
the task of motivation by drawing attention to the job factors which are often overlooked. It
shows the value of job enrichment in motivation. Thus, Herzbergs theory has solved the
problems of managers who were wondering why their policies failed to motivate the
employees adequately.
However this theory has also not gone unchallenged. It has been criticised on the
following grounds:
1. Not conclusive: Herzberg study was limited to the engineers and accounts. The
critics say that this theory is not conclusive because the professionals or the white
collar workers may like responsibility and challenging jobs. But the general workers
are motivated by pay and other benefit. The effect of hygiene and motivational
factors may be totally be reverse on some other categories of people
2. Methodology: Another criticism of this theory is directed at the method of research
and data collections. The interviewers were asked to report exceptionally good or
exceptionally badge of experience.
Douglas McGregor introduced these two theories i.e,Theory X and Theory Y
based on two distinct views of human beings. He proposed ,at opposite extremes,
two pairs of assumptions about human beings which thought were implied by the
actions of the managers. Theory x deals with one extreme, based on one set of
assumption and Theory y ,deals with another extreme based on another set of
assumptions. These theories are based on any research but according to McGregor,
these are intuitive deductions.

Theory X ; This theory is based on traditional approach to human behavior. The

assumptions generally, held by the managers in this theory are
1 .the average inherently dislike work and will try rto avoid it,whenever
2.As the employees are controlled,coerced threatened with punishment to achieve
goals , to wich they are in different.
3. avarege employees will try to avoid responsibility and seek formal direction whenever
possible, because they have relatively little ambition.
4. most workers place security above all other factors associated with work.These
assumptions about human nature are negative in their approach. Managers who
advocate these views feel that extreme control is most appropriate for dealing with
irresponsible and immature employees.
Theory Y: this approach assume that management by direction and control is a
questionable method of for motivating such people whose physiological and social need
have been satisfied and whose social esteem and self actualization needs are becoming
more important. For such people this theory seems to be applicable, which is the
contrast of Theory X. This theory makes the following assumptions about the people:
1. The average human being does not inherently dislike work. He can view work as
natural or enjoyable as rest or play.
2. Employees will exercise self direction and self control in the attainment of the
objective to which they are committed.
3. Given proper working conditions, average person can learn to accept and even to
take responsibility.
4. All the people are capable of making innovative and creative decision and the
decisions making is not the sole province of the people in management positions.

Theory Z
William Ouchi, proposed the theory Z in early 80s.The letter Z does not stand for anything. It is
just to denote the state of affairs in organization and human behavior as has being done in
case of theory X and Y.Ouchi came out with this theory after making a comparative study of
American and Japanese management practices. It is an integrative model, containing the best
of both practices. It takes into account the strengths of the Japanese management
cohesion, job security, concern of employees, as well as American Management e.g. speedy
decision making, risk taking skills individual autonomy, innovation and creativity Theory Z is a
mixed American Japanese Management systems for modern organizations.


Victor vroom made an important contribution to the understanding of the concept
of motivation and the decision processes that people use to determine how much effort they
will expend on their jobs. Criticising Herzbergs two factor theory, he said that a persons
motivation towards an action at any time would be determined by an individuals perception
that acertain type of action would led to a specific outcome and his personal preference for
this outcome. This model is based on the belief that motivation is determined by the nature of
reward people expect to get as a result of their job performance. Because man is a rational
humanbeing, he will try to maximize the perceived value of such rewards. People will be highly
motivated if they are made to believe that if they behave in a particular way, they will receive a
certain type of outcome according to their personal preference. There are three variables in
vrooms expectation model . since the model is a multiplier, all the three variables must have
high positive value to imply motivated performance choices. If any of the variable is zero, the
probability of motivated performance tend to be zero.

Valence is the attraction or repulsion of an outcome to the individual. Whenever an

individual has preference for a reward valence is the strength of that preference. The
valence is something subjective and vary from person to person. It is deemed to be
positive for an individual if he prefers attaining the outcome to not attaining it. For
example; a person who Is more interested in getting recognition for the hard work, will
not have any valence for cash reward.
Expectancy is also referred to as the effort performance probability. It refers to the
extent to which the person believes his effort will lead to the first level outcome i.e.,
completion of task. it is the probability that a particular action will lead to the
outcome, it is the perception in the mind of the individual of the likelihood that a
particular action or behavior will lead to a certain outcome. If the individual feels that
the probability of achieving an outcome is zero, he will not even try. on the other hand
probability is higher, he will put more effort to achieve the desired outcome.
Instrumentality refers to the probabilities attached by the individual to each possible
performance outcome alternatives just as the individual previously assigned
probabilities to various level of effort leading to different level of performance or
expectancy. In simple, it refers to the belief and expectation of a person that his
performance will lead to a particular desired reward.



There is an old saying that you can take a horse to the water but you cannot force it to
drink; it will drink only if its thirsty-so with people. They will do what they want to do or
otherwise motivated to do. Whether it is to excel on the workshop floor or in the ivory tower
they must be motivated or driven to it, either by themselves or through external stimulus.
Motivation is a skill which can and must learnt. This is essential for any business to survive and