A Term Paper on Motivation Theory

Submitted by

Ganesh Shiwakoti

Ganga Ghimire

Durga Neupane

Dipesh Khulal

Dhirendra Ayer

M.Sc.Ag. Agribusiness Management

Second Semester, HICAST

Submitted to:

Mr. Singa Lama

Associate Professor

Himalayan College of Agricultural Sciences and Technology

Kathmandu, Nepal

January, 2019

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 Acknowledgement
It’s ours great pleasure to express unsounded sense of gratitude and veneration to our
subject teacher Mr. Singa Lama, Himalayan College of Agricultural Sciences and
Technology (HICAST) for his continuous guidelines and valuable suggestions for
completing ours term paper.

Ours sincere thanks go to Mrs. Yamuna Poudel, Librarian, HICAST for providing the
reference books to complete this report. Inspite of ours best effort and care, some
mistakes might have crept in. We take the entire responsibility of any mistake in this
paper and beg a pardon for that. But advices and suggestions are heartedly welcome for
further improvement of the paper.

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Contents
1. INTRODUCTION......................................................................................................................5

1.1 Background...........................................................................................................................5

1.1.1 Nature of Motivation.........................................................................................................5

2. PROCESS OF MOTIVATION...................................................................................................6

2.1 Factors affecting individual performance..............................................................................6

2.1.1 Motivation.........................................................................................................................6

2.1.2 Sense of Competence.........................................................................................................7

2.1.3 Ability:...............................................................................................................................7

2.1.4 Organizational Resource:...................................................................................................7

3. THEORIES OF MOTIVATION..................................................................................................7

3.1 Hierarchy of Needs Theory (Abraham Maslow)...................................................................8

3.1.1 Physiological needs............................................................................................................8

3.1.2 Safety needs.......................................................................................................................8

3.1.3 Social needs.......................................................................................................................8

3.1.4. Esteem needs....................................................................................................................8

3.1.5. Self-actualization needs....................................................................................................9

3.1.6 Implication of Hierarchy of Needs Theory........................................................................9

3.2 Motivation-Hygiene Theory (F. Herzberg)...........................................................................9

3.2.1 Hygiene Factors (Dissatisfies)...........................................................................................9

3.2.2 Motivation Factors (Satisfiers..........................................................................................10

3.2.3 Implication of Herzberg’s Theory....................................................................................10

3.2.3.1 Comparison of Maslow’s and Herzberg’s Theories.......................................................10

3.3 ERG Theory (Clayton Alderfer)..............................................................................................12

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 3.3.1 Key points of ERG Theory..............................................................................................13

3.4 McClleland’s Theory of needs (David McClleland)...........................................................14

3.4.1 Needs for achievement.....................................................................................................14

3.4.2 Needs for affiliation.........................................................................................................14

3.4.3 Needs for power...............................................................................................................14

3.5.1 Adams' Equity Theory.........................................................................................................14

3.5.1.1 How to Apply the Adams' Equity Theory......................................................................15

3.6 Expectancy Theory (Victor Vroom)........................................................................................15

3.6.1 Effort Performance relationship (E-P).............................................................................15

3.6.2 Performance-Reward Relationship (P-O)........................................................................15

3.6.3 Reward-Personal Goals Relationship (V)........................................................................15

3.7 Reinforcement theory (B.F. Skinner)......................................................................................16

3.8 McGregor’s Theory X and Theory Y......................................................................................16

Theory Y (participative management style)..............................................................................17

Comments on Theory X and Theory Y Assumptions.......................................................17

5. REFERENCES.........................................................................................................................19

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1. INTRODUCTION

1.1 Background
Motivation is a psychological process. It is important in understanding individual
behavior. It gives purpose and direction to behavior.
Job performance is a function of employee ability plus motivation. Employees may
possess skills and abilities. But they may lack willingness to use those skills and abilities.
Motivation induces employees to use their skills and abilities to perform effectively. It is
an inner force that energizes people into action.
Motivation is the act of energizing people to put more efforts. It is willingness to exert
high levels of efforts. It is an inner state within the individual that energizes, directs and
sustains behavior towards goal achievement.
Motivation starts with need. Need is physiological or psychological deficiency. Needs
activate drives. The drive is aimed at goals. The interacting relationships among needs,
drives and goals are the foundation of motivation process.
According to Dubin, “Motivation is the complex force starting and keeping a person at
at work in an organization. Motivation is something that moves the person to action, and
continues him in the course of action already initiated”

According to McFarland “Motivation refers to the way in which urges, drives,

aspirations, strivings, or needs direct, control, or explain the behavior of human being.

1.1.1 Nature of Motivation

(i) Based on motives: Motivation is based on individual’s motives which are internal to
the individual. These motives are in the form of feelings that the individual lacks
something. In order to overcome this feeling, he tries to behave in a manner which helps
in overcoming this feeling.

(ii) Affected by Motivation: Motivation is affected by way the individual is motivated. It

can also activate the latent needs in the individual, that is, the needs that are the less
strong and somewhat dormant, and harness them in a manner that would be functional for
the organization.

(iii) Goal directed behavior: Motivation leads to goal-directed behavior. A goal-directed

behavior is one which satisfies the cause for which behavior takes place.

(iv) Related to satisfaction: satisfaction refers to the contentment experiences of an

individual which he derives out of need fulfillment. Thus satisfaction is a consequence of
rewards and punishments associated with past experiences.

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(v) Complex process: Motivation is a complex process; complexity emerges because of
the nature of needs and the type of behavior that is attempted to satisfy those needs.

(vi) Person motivated in totality: A person is motivated in totality and not in part. Each
individual in the organization is a self-contained unit and his needs are interrelated. These
affect his behavior in different ways.

2. PROCESS OF MOTIVATION

Motivation causes goal-directed behavior. Feeling of a need by an individual generates a

feeling that he lacks something. This lack of something creates tension in the mind of
individual. To overcome this state he engages himself in a behavior to satisfy his needs.
This is goal-directed behavior.

Tension

Physical
Action to Satisfy
Psycholo Goal-Fulfillment/
Unsatisfied gical Needs
Needs tension Needs Satisfaction

Sociologi
cal
Favorable
Enviroment

Figure 1: Process of Motivation

Goal-directed behavior leads to goal-fulfillment and the individual succeeds in fulfilling

his needs and thereby overcoming his tension in the favorable environment. Behavior
ends the moment tension is released. However, satisfaction of one need leads to feeling of
another need. Thus goal-directed behavior is a continuous process.

2.1 Factors affecting individual performance

2.1.1 Motivation: Level of motivation derives an individual for work. Motivation is
based on motive which is a feeling that an individual lacks something. This feeling
creates some sort of tension in his mind. In order to overcome this tension, he engages in
goal-directed behavior. Thus motivation becomes a prime mover for efforts and better
work performance.

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2.1.2 Sense of Competence: Sense of competence denotes the extent to which an
individual consistently regards himself as capable of doing a job. Sense of competence of
an individual depends to a very great extent on his locus of control. Locus of control
means whether people believe that they are in control of events or events control them.

2.1.3 Ability: Ability is expressed in the form of the following equation:

Ability=Knowledge x Skill

Knowledge refers to the possession of information and ideas in a particular field which
may be helpful in developing relationships among different variables related to that field.
Skill refers to expertness, practical ability or facility in action or doing something.

2.1.4 Organizational Resource: Organizational Resources denote various types of

facilities- Physical and psychological – which are available at the work place. Physical
facilities include layout of the work place and physical environment. Psychological
facilities include training and development facilities, reward system, motivating
leadership styles and so on.

3. THEORIES OF MOTIVATION
There are several theories of motivation. The theory of motivation can be classified as
follows

(i) Need-based Theories

 Hierarchy of needs theory (Abraham Maslow)

 Motivation-Hygiene Theory ( Frederick Herzberg)

 ERG theory (Clayton Aldefer)

 McClleland’s theory of needs (David McClleland)

(ii) Process-based Theories

 Equity theory (J. Stacy Adams)

 Expectancy theory (Victor Vroom)

 Reinforcement theory (B.F. Skinner)

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3.1 Hierarchy of Needs Theory (Abraham Maslow)

Figure 2: Maslow’s Hierarchy of Needs

3.1.1 Physiological needs - these are biological requirements for human survival, e.g. air,
food, drink, shelter, clothing, warmth, sex, sleep.
If these needs are not satisfied the human body cannot function optimally. Maslow
considered physiological needs the most important as all the other needs become
secondary until these needs are met.
3.1.2 Safety needs - protection from elements, security, order, law, stability, freedom
from fear.
3.1.3 Social needs - after physiological and safety needs have been fulfilled, the third
level of human needs is social and involves feelings of belongingness. The need for
interpersonal relationships motivates behavior
Examples include friendship, intimacy, trust, and acceptance, receiving and giving
affection and love. Affiliating, being part of a group (family, friends, work).
3.1.4. Esteem needs - which Maslow classified into two categories:
(i) Esteem for oneself (dignity, achievement, mastery, independence) and
(ii) The desire for reputation or respect from others (e.g., status, prestige).
Maslow indicated that the need for respect or reputation is most important for children
and adolescents and precedes real self-esteem or dignity.
3.1.5. Self-actualization needs – They are need for self-fulfillment, potential
achievement, creativity, talent utilization and personal growth. It is becoming what one is
capable of becoming. Self-actualization needs can never be fully satisfied.
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* Lower-level needs: Physiological and safely needs are lower-order needs. They are mist
pressing needs.
* Higher-level needs: Social, esteem and self-actualization needs are higher order needs.
They are least pressing needs.

3.1.6 Implication of Hierarchy of Needs Theory

(i) Needs motivate individual. A person progresses step-by-step in the need hierarchy.
Lower order needs are most pressing. People satisfy most pressing needs first. Only one
need is operational at a time.
(ii) Satisfied needs do not motivate. Only unsatisfied needs motivate. The degree of
satisfaction is not rigid. It differs from person to person.
(iii) For motivational purposes, managers should create work situations that permit
employees to satisfy their unsatisfied need.
The hierarchy of needs theory is simple and practical. It has received wide recognition. It
is useful guide for understanding behavior. However, there is little support for
hierarchical arrangement of needs. Multiplicity of needs may motivate people.

3.2 Motivation-Hygiene Theory (F. Herzberg)

The theory of motivation classifies the organizational factors into following

Factors Affecting Job Attitudes

Hygiene Factors Motivation Factors

 Company policy

 Supervision  Achievement

 Interpersonal Relationship  Recognition

 Work conditions  Work itself

 Salary  Responsibility

 Job security  Advancement

 Personal life  Growth

 Relationship w/Peers
Figure 4: Motivation-Hygiene Factors

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 3.2.1 Hygiene Factors (Dissatisfies)
These factors are dissatisfies. The absence of these factors causes job dissatisfaction.
They are necessary to avoid dissatisfaction. They are necessary to avoid dissatisfaction.
These factors relate to hob context. Hygiene factors are:
(i) Company policy and administration: They guide decision.
(ii) Supervision: It is guiding of subordinates
(iii) Interpersonal relations with superiors, peers and subordinates.
(iv) Salary: Financial reward fir work done.
(v) Job Security: Tenure of employment
(vi) Personal life: Personal life at work place
(vii) Work condition: Environment at work place
(viii) Status: Rank at work place
3.2.2 Motivation Factors (Satisfiers)
These factors cause high levels of job satisfaction. However, absence of these factors
does not lead to hob dissatisfaction. These factors relate to job-content. Motivators
consist of:
(i) Achievement: The drive to excel
(ii) Recognition: of high performance
(iii) Advancement: Promotion to higher level post
(iv) The work itself: Interesting and challenging job
(v) Personal growth: Opportunities for growth
(vi) Responsibility: obligation to perform assigned jobs
Motivation can be increased by maximization motivation factors.

3.2.3 Implication of Herzberg’s Theory

Herzberg pointed out the importance of job content for work motivation. He advocated
job enrichment as an important motivational technique. However, motivation and hygiene
factors are not wholly unidirectional. For example, factory workers can be motivated by
salary and security.

3.2.3.1 Comparison of Maslow’s and Herzberg’s Theories

Both theories are based on needs. Maslow describes the needs. Herzberg describes factors
that make a person satisfied of dissatisfied with his job. Herzberg’s factors fit with
Maslow’s needs.

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Differences between Maslow and Herzberg Theory of Motivation;

Why are Maslow and Herzberg Theory of Motivation different?

Issue Maslow’s Model Herzberg’s Model

Hierarchical arrangement of No such hierarchical

Order of needs
needs. arrangement.

Emphasis Descriptive. Prescriptive

Unsatisfied needs energize

The essence of Gratified needs cause
behavior; this behavior causes
theory performance.
performance.

Motivator Any need can be a motivator if it Only higher order needs serve as

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Why are Maslow and Herzberg Theory of Motivation different?

is relatively unsatisfied. motivators.

Takes a general view of the Takes a micro-view and deals

Applicability motivational problems of all with work-oriented motivational
workers. problems of professional workers

The existence of some factors

creates a positive attitude and The positive and negative factors
Factors
their non-existence creates a are completely different.
negative attitude.

3.3 ERG Theory (Clayton Alderfer)

This theory advocates hierarchy of three needs. They are as follows
3.3.1 Need for Existence
Providing basic material existence requirements for physiological and safety needs.
3.3.1.1 Need for relatedness
Desire for maintaining interpersonal relationships for social needs.
3.3.1.2 Need for Growth
Desire for personal growth for esteem and self-actualization need.

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 Figure: ERG Theory of Motivation

3.3.1 Key points of ERG Theory

(i) This theory substitutes three needs for Maslow’s five needs. It argues that there is no
rigid hierarchy of needs. More than one need can be operational at the same time.
(ii) This theory also contains a frustration-regression dimension. Inability to satisfy
higher level need can lead to increased satisfaction of lower level needs. For
example, inability to satisfy social interaction need may increase the desire to make
more money. Frustration can lead to regression to a lower level.
(iii) This theory also contains a frustration-regression dimension. Inability to satisfy
higher level need can lead to increased satisfaction of lower level needs. For
example, inability to satisfy social interaction need may increase the desire to make
more money. Frustration can lead to regression to a lower level.
(iv)This theory also contains a frustration-regression dimension. Inability to satisfy
higher level need can lead to increased satisfaction of lower level needs. For
example, inability to satisfy social interaction need may increase the desire to make
more money. Frustration can lead to regression to a lower level.
(v) This theory considers individual differences in people. But it does not offer clear-cut
guidelines to predict behavior.

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3.4 McClleland’s Theory of needs (David McClleland)

3.4.1 Needs for achievement

They prefer working on tasks of moderate difficulty, prefer work in which the results
are based on their effort rather than on anything else, and prefer to receive feedback on
their work. Achievement based individuals tend to avoid both high-risk and low-risk
situations. Low-risk situations are seen as too easy to be valid and the high-risk
situations are seen as based more on the luck of the situation rather than the
achievements that individual made.[3] This personality type is motivated by
accomplishment in the workplace and an employment hierarchy with promotional
positions.

3.4.2 Needs for affiliation

People who have a need for affiliation prefer to spend time creating and maintaining
social relationships, enjoy being a part of groups, and have a desire to feel loved and
accepted. People in this group tend to adhere to the norms of the culture in that
workplace and typically do not change the norms of the workplace for fear of
rejection. This person favors collaboration over competition and does not like
situations with high risk or high uncertainty. People who have a need
for affiliation work well in areas based on social interactions like customer service or
client interaction positions.

3.4.3 Needs for power

People in this category enjoy work and place a high value on discipline. The downside
to this motivational type is that group goals can become zero-sum in nature, that is, for
one person to win, another must lose. However, this can be positively applied to help
accomplish group goals and to help others in the group feel competent about their
work. A person motivated by this need enjoys status recognition, winning arguments,
competition, and influencing others. With this motivational type come a need for
personal prestige, and a constant need for a better personal status.

3.5 Process-based theory

3.5.1 Adams' Equity Theory

The Adams’ Equity Theory is named for John Stacey Adams, a workplace and
behavioural psychologist, who developed this job motivation theory in 1963.

Much like many of the more prevalent theories of motivation (theories by Maslow's
Hierarchy of Needs, Herzberg's Theory, etc.), the Adams’ Equity Theory acknowledges
that subtle and variable factors affect an employee’s assessment and perception of their
relationship with their work and their employer.

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 The theory is built-on the belief that employees become de-motivated, both in relation
to their job and their employer, if they feel as though their inputs are greater than the
outputs. Employees can be expected to respond to this is different ways, including de-
motivation (generally to the extent the employee perceives the disparity between the
inputs and the outputs exist), reduced effort, becoming disgruntled, or, in more extreme
cases, perhaps even disruptive.

3.5.1.1 How to Apply the Adams' Equity Theory

It is important to also consider the Adams’ Equity Theory factors when striving to
improve an employee's job satisfaction, motivation level, etc., and what can be done to
promote higher levels of each.

To do this, consider the balance or imbalance that currently exists between your
employee's inputs and outputs, as follows:

3.6 Expectancy Theory (Victor Vroom)

This theory explains motivation in terms of expectations. This theory explains
motivation in terms of three relationships.

3.6.1 Effort Performance relationship (E-P)

Expectation that efforts generate better performance. This is known as “expectancy”

3.6.2 Performance-Reward Relationship (P-O)

Expectation that better performance leads to variety of outcomes. This is known as
“instrumentality”

3.6.3 Reward-Personal Goals Relationship (V)

Expectation that each outcome has an anticipated value. This is called “valence”.
Reward should satisfy personal goals of an individual.
This theory emphasizes links between effort, performance and valence for motivation.
According to this theory
Motivation= Expectancy x Instrumentality x Valence

3.7 Reinforcement theory (B.F. Skinner)

The Reinforcement Theory of Motivation was proposed by B.F. Skinner and his
associates. This theory posits that behavior is the function of its consequences, which
means an individual develops a behavior after performing certain actions.
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 The reinforcement theory of motivation is based on the “Law of Effect” concept, i.e. an
individual is likely to repeat those actions having the positive consequences, and will
avoid those behaviors that result in negative or unpleasant outcomes.

The behaviors that elicit consequences is called as operant behavior and reinforcement
theory work on the relationship between the operant behavior and the associated
consequences and, therefore, is often called as Operant Conditioning. Operant
conditioning means, the change in the behavior caused due to the reinforcement
(Positive reward or punishment) given after the response.

The reinforcement theory lay emphasis on the environmental factors that shape the
behaviors and thus, Skinner believed that environment external to the organization must
be designed effectively so as to increase the motivation among the employees.

Thus, the reinforcement theory of motivation mainly focuses on what happens when an
individual takes some action. It is observed, that people tend to repeat those activities
which gives them pleasure and avoid the activities with negative consequences.

3.8 McGregor’s Theory X and Theory Y

Douglas McGregor, an American social psychologist, proposed his famous X-Y theory
in his 1960 book 'The Human Side Of Enterprise'. Theory x and theory y are still
referred to commonly in the field of management and motivation, and whilst more
recent studies have questioned the rigidity of the model, McGregor's X-Y Theory
remains a valid basic principle from which to develop positive management style and
techniques. McGregor's XY Theory remains central to organizational development, and
to improving organizational culture.

McGregor's X-Y theory is a salutary and simple reminder of the natural rules for
managing people, which under the pressure of day-to-day business are all too easily
forgotten.

McGregor maintained that there are two fundamental approaches to managing people.
Many managers tend towards theory x, and generally get poor results. Enlightened
managers use theory y, which produces better performance and results, and allows
people to grow and develop.

Theory Y (participative management style)

 Effort in work is as natural as work and play.
 People will apply self-control and self-direction in the pursuit of organizational
objectives, without external control or the threat of punishment.

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 Commitment to objectives is a function of rewards associated with their
achievement.
 People usually accept and often seek responsibility.
 The capacity to use a high degree of imagination, ingenuity and creativity in
solving organizational problems is widely, not narrowly, distributed in the
population.
 In industry the intellectual potential of the average person is only partly utilized.
 Work can be as natural as play if the conditions are favourable.
 People will be self-directed and creative to meet their work and organizational
objectives if they are committed to them.

People will be committed to their quality and productivity objectives if rewards are in
place that address higher needs such as self-fulfilment

 The capacity for creativity spreads throughout organizations.

 Most people can handle responsibility because creativity and ingenuity are
common in the population.

Under these conditions, people will seek responsibility.

Comments on Theory X and Theory Y Assumptions

McGregor sees these two theories as two quite separate attitudes. Theory Y is difficult
to put into practice on the shop floor in large mass production operations, but it can be
used initially in the managing of managers and professionals.

In "The Human Side of Enterprise" McGregor shows how Theory Y affects the
management of promotions and salaries and the development of effective managers.
McGregor also sees Theory Y as conducive to participative problem solving.

It is part of the manager's job to exercise authority, and there are cases in which this is
the only method of achieving the desired results because subordinates do not agree
that the ends are desirable.

However, in situations where it is possible to obtain commitment to objectives, it is

better to explain the matter fully so that employees grasp the purpose of an action.
They will then exert self-direction and control to do better work - quite possibly by

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 better methods - than if they had simply been carrying out an order which the y did
not fully understand.

The situation in which employees can be consulted is one where the individuals are
emotionally mature, and positively motivated towards their work; where the work is
sufficiently responsible to allow for flexibility and where the employee can see her or
his own position in the management hierarchy. If these conditions are present,
managers will find that the participative approach to problem solving leads to much
improved results compared with the alternative approach of handing out authoritarian
orders.

Once management becomes persuaded that it is under estimating the potential of its
human resources, and accepts the knowledge given by social science researchers and
displayed in Theory Y assumptions, then it can invest time, money and effort in
developing improved applications of the theory.

McGregor realizes that some of the theories he has put forward are unrealizable in
practice, but wants managers to put into operation the basic assumption that:

 Staff will contribute more to the organization if they are treated as responsible and
valued employees.

4. MOTIVATION IN NEPAL

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(i) Motivation has not received adequate attention in Nepalese organizations. It use as a
tool for achieving goals and increasing productivity has remained neglected. The
organization climate is not conducive for motivation.
Nepalese managers generally complain about gross underutilization of employees in
organizations. But the attitudes of indifference, inaction and apathy dominate their
thinking regarding motivation. They assume that employees work for money.

(ii) Needs and Motivation of Workers

Nepalese workers are very much engaged in seeking the satisfaction of their
physiological and security needs. The low levels of wages in Nepal further increase the
importance of these needs to workers.

(iii) Needs and Motivation mangers

Social and esteem needs tend to be dominant for Nepalese managers in public sector.
Opportunities are few for fulfilling self-actualization needs. First employment generally
becomes the life-long employment for Nepalese managers.

(iv) Organizational Climate and Motivation

Organization climate is not conducive for motivation in Nepal.
 Government and public enterprises are bureaucratic. Decision making is highly
centralized. Autocratic leadership style is dominant.
 Authority and responsibility relationships are distorted and unclear. Responsibility
is given without delegating authority.

5. REFERENCES

1. Organizational Behavior
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(Robbins, Judge, Sanghi)

2. Organizational Behavior in Nepal

(Dr. Govind Ram Agrawal; Nelson & Quick)

3. Principle & Practices of management

(L.M. Prashad)

4. http://www.Businessballs.com------27/july/2009

5. http://www.envisionsoftware.com/articles/-----27/july/2009

6. http://en.wikipedia.org/wiki--------27/july/2009

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