M O T I V AT I O N I N

O R G A N I Z AT I O N S

A L O O K AT W H AT M O T I V AT I O N I S , A B R I E F H I S T O R Y, S O M E
PRACTICES AND WHY IT IS NECESSARY
A G R O U P E F F O R T B Y:
N I S H I TA K A U R P E D N E K A R U D AY C H A N D G O T H I A A D I T YA K H A N D E L W A L A D H I S H L A D D H A H R I T V I K PAT E L A N D
ANMOL RAJWANI
W H AT I T M E A N S W H E N W E S AY
M O T I V AT I O N ?

Motivation is an important factor which encourages

persons to give their best performance and help in
reaching enterprise or organisation goals. A strong
positive motivation will enable the increased output of
employees but a negative motivation will reduce their
performance. A key element in personnel management
is motivation. 

W H AT I T M E A N S W H E N W E S AY
M O T I V AT I O N ?
It is the process of stimulating people to actions to accomplish the goals.
In the work goal context, the psychological factors stimulating the
people’s behaviour can be – 


• desire for money

• success 

• recognition

• job-satisfaction  

• team work 


•
C H A R A C T E R I S T I C S O F M O T I V AT I O N

• CHARACTERISTICS OF MOTIVATION 


• Motivation is Personal and Psychological Concept 


• Motivation is a Continuous Process 


• Motivation is a Complex Subject 


• Motivation is Goal Oriented 


• Motivation is Behaviour-oriented 


• Intrinsic or Extrinsic motivation 


•
E A R LY T H E O R Y O F M O T I V AT I O N

Hierarchy of needs theory – The most theory of motivation is Maslows hierarchy theory of needs
Maslow's hierarchy of needs is a motivational theory in psychology comprising a five-tier model of
human needs, often depicted as hierarchical levels within a pyramid.

• Physiological needs – Include hunger, thirst , shelter , and other bodily needs 


•  Safety and security – protection from elements, security, order, law, stability, freedom from fear. 


• Social Belongingness – Affection , belongingness , acceptance and friendship. 


•  Esteem – It consist of interal and external factors such as self respect , 


achievement , status and attention. 


•  Self actualization - realizing personal potential, self-fulfilment, seeking personal growth and peak
experiences. A desire “to become everything one is 

capable of becoming. 

E A R LY T H E O R Y O F M O T I V AT I O N

McClelland’s theory of needs – According to the McClelland’s there are three types
of needs

1. Need for achievements 2. Need For Power 3. Need For Affiliation

The people who have driven to

excel. 


Wants to belong to the

They want to do something group.
Desire to have
different from others. 
 impact on others.
Wants to be liked and
They like to control often go long with
They like competition and and influence whatever the rest of the
always want to stay on top. others. group wants to do.

They like were there is They are always

Favors collaboration
personal responsibility, concerned about
over competition.
moderate risk and feedback their status and
Doesn’t like high risk
related to their work. 
 prestige 

and uncertainty.
 CONTEMPORARY THEORIES OF
M O T I V AT I O N
1 . S E L F D E T E R M I N AT I O N T H E O R Y

People feel they have control over their own actions

Widely used in psychology, management and education

2 . C O G N I T I V E E V A L U AT I O N T H E O R Y

Complementary Theory

Hypothesising extrinsic rewards reduce intrinsic interest

3. SELF-CONCORDANCE

A recent outgrowth of Self Determination

 CONTEMPORARY THEORIES OF
M O T I V AT I O N
4. GOAL-SETTING THEORY

Specific and difficult goals with feedback lead to higher performance

Goal commitment

5. SELF-EFFICACY THEORY

An individual’s belief that he or she is capable of performing a task

Increasing self-efficacy

6 . E X P E C TA N C Y T H E O R Y

Attractiveness of the outcome to the individual

Willingness to exert more when there is appraisal of their work

 CONTEMPORARY THEORIES OF
M O T I V AT I O N
7. EQUITY THEORY

Individuals compare their work inputs and outputs with others and eliminate inequities

Make one of the six choices namely

Change inputs

Change outputs

Distort perceptions of self

Distort perceptions of others

Choose a different referent

Leave the field

8. JOB ENGAGEMENT

The degree to which an employee believes it is meaningful to engage in work

Match between individual’s and organization’s values

Dark side to engagement

 INTEGRATING CONTEMPORARY THEORIES OF
MOTIVATION
The individual effort box has an arrow leading into it. This arrow flows from the
individual’s goals. Consistent with goal-setting theory, this goals-effort link is meant to
illustrate that goals direct behavior.

Expectancy theory predicts that an employee will exert a high level of effort if he or she
perceives a strong relationship between effort and performance, performance and
rewards, and rewards and satisfaction of personal goals. Each of these relationships is,
in turn, influenced by certain factors. You can see from the model that the level of
individual performance is determined not only by the level of individual effort but also
by the individual’s ability to perform and by whether the organization has a fair and
objective performance evaluation system. The performance-reward relationship will be
strong if the individual perceives that it is performance (rather than seniority, personal
favorites, or some other criterion) that is rewarded. The final link in expectancy theory is
the rewards-goal relationship.

The traditional need theories come into play at this point. Motivation would be high to
the degree that the rewards an individual received for his or her high performance
satisfied the dominant needs consistent with his or her individual goals.
 INTEGRATING CONTEMPORARY THEORIES OF
MOTIVATION
• Achievement-need is seen, in that the high achiever isn’t motivated by the organization’s assessment
of his or her performance or organizational rewards, hence the jump from effort to individual goals for
those with a high nAch. Remember that high achievers are internally driven as long as the jobs they’re
doing provide them with personal responsibility, feedback, and moderate risks. They’re not concerned
with the effort-performance, performance-reward, or rewards-goals linkages. 


• ●  Reinforcement theory is seen in the model by recognizing that the organization’s rewards reinforce
the individual’s performance. If managers have designed a reward system that is seen by employees as
“paying off” for good performance, the rewards will reinforce and encourage continued good
performance. 


• ●  Rewards also play a key part in equity theory . Individuals will compare the rewards (outcomes) they
have received from the inputs or efforts they made with the inputs-outcomes ratio of relevant others. If
inequities exist, the effort expended may be influenced. 


•
 INTEGRATING CONTEMPORARY THEORIES OF
MOTIVATION
• Finally, the JCM is seen in this integrative model. Task
characteristics (job design) influence job motivation at two
places. First, jobs that are designed around the five job
dimensions are likely to lead to higher actual job performance
because the individual’s motivation will be stimulated by the job
itself—that is, they will increase the linkage between effort and
performance. Second, jobs that are designed around the five job
dimensions also increase an employee’s control over key
elements in his or her work. Therefore, jobs that offer autonomy,
feedback, and similar task characteristics help to satisfy the
individual goals of employees who desire greater control over
their work. 

J O B D E S I G N A N D M O T I V AT I O N

Job design is the systematic and purposeful allocation of tasks to

individuals and groups within an organization.

THEORETICAL MODELS OF JOB DESIGN

Organizations may employ various theoretical approaches for job

design. These include Taylorism, Socio-Technical Systems Approach,
Core Characteristics Model, and Psychological Empowerment
Theory. Each approach emphasizes different aspects to be
considered in effective job design.
•
TAY L O R I S M

Taylorism, also known as scientific management, is a foundation for

systematic job design. Frederick Taylor developed this theory in an effort
to develop a “science” for every job within an organization according to
the following principles:

●  Create a standard method for each job. 


●  Successfully select and hire proper workers. 


●  Effectively train these workers. 


●  Support these workers. 


THE SOCIO-TECHNICAL SYSTEMS
APPROACH



The Socio-Technical Systems Approach is based on the evolution from individual work to
work groups. This approach has the following guiding principles: 


●  The design of the organization must fit its goals. 


●  Employees must be actively involved in designing the structure of the organization. 


●  Support systems must fit in with the design of the organization. 


●  The design should allow for a high-quality working life. 


●  Changes should continue to be made as necessary to meet changing

environmental 


pressures.

CORE CHARACTERISTICS MODEL 


Job characteristics theory is a theory of work design. It provides “a

set of implementing principles for enriching jobs in organizational
settings”. The original version of job characteristics theory proposed
a model of five “core” job characteristics (i.e. skill variety, task
identity, task significance, autonomy, and feedback) that affect five
work-related outcomes (i.e. motivation, satisfaction, performance,
and absenteeism and turnover) through three psychological states
(i.e. experienced meaningfulness, experienced responsibility, and
knowledge of results). 

CORE JOB CHARACTERISTICS 


S K I L L VA R I E T Y :

The degree to which a job requires various activities, requiring the worker to develop a
variety of skills and talents. Jobholders can experience more meaningfulness in jobs that
require several different skills and abilities than when the jobs are elementary and routine. 


●   TA S K I D E N T I T Y :

The degree to which the job requires the job holders to identify and complete a workpiece
with a visible outcome. Workers experience more meaningfulness in a job when they are
involved in the entire process rather than just being responsible for a part of the work.


●   TA S K S I G N I F I C A N C E :

The degree to which the job affects other people's lives. The influence can be either in the
immediate organization or in the external environment. Employees feel more meaningfulness
in a job that substantially improves either psychological or physical well-being of others than a
job that has limited effect on anyone else.


CORE JOB CHARACTERISTICS 


● AUTONOMY:

Thedegreetowhichthejobprovidestheemployeewithsignificantfreedom,
independence, and discretion to plan out the work and determine the procedures in
the job. For jobs with a high level of autonomy, the outcomes of the work depend on
the workers’ own.

FEEDBACK:

The degree to which the worker has knowledge of results. This is clear, specific,
detailed, actionable information about the effectiveness of his or her job
performance. When workers receive clear, actionable information about their work
performance, they have better overall knowledge of the effect of their work activities,
and what specific actions they need to take (if any) to improve their productivity.
MOVING POTENTIAL SCORE

Motivating potential score : The Job Characteristics Theory uses

this equation to estimate the overall motivation inherent in a job
design based upon the five core characteristics.



PSYCHOLOGICAL EMPOWERMENT THEORY

Psychological Empowerment Theory posits that there is a distinction

between empowering practices and cognitive motivational states.
When individuals are aware of the impact they have, they benefit
more than if they cannot attribute positive impact to any of their
actions.
W H AT I S J O B C H A R A C T E R I S T I C S
DESIGN MODEL?
The Job Characteristics Model is a theory that is based on the idea that a task in itself is the key to the
employee’s motivation.

The theory specifies five job characteristics that are predicted to benefit individuals’ psychological state and job
results.

S K I L L VA R I E T Y

A degree to which job requires a variety of different activities.

Having different tasks, more responsibility and more independence will be beneficial to a person intrinsic
motivation.

TA S K I D E N T I T Y

This is the degree to which the work demands a complete process or product.

Employees often value carrying out a process.

TA S K S I G N I F I C A N C E

It is a degree to which job has a substancial impact on lives or work of other people.
W H AT I S J O B C H A R A C T E R I S T I C S
DESIGN MODEL?
AUTONOMY

The degree to which a job provides substancial freedom desecreation to individual in scheduling
the work and in determining the procedures to be used in carrying out.

These have strong sense of responsibility and autonomy when they are given the freedom to carry
out tasks independently by means of personal intiative.

Eg – A sales person who schedules his work according to time and decide different sales approach
with different customers

FEEDBACK

For performance of employees, it is important that they are informed of recent performance.

It has a positive effect on their motivation.

P S Y C H O L O G I C A L S TAT E S

•The conceptual core of the theory is the series of three

psychological states that mediate between task attributes and the
outcomes.

•
When an employee assigns a high score to all five job
 

characteristics, he will experience all three of the psychological

states and he is highly intrinsically motivated.

•
P S Y C H O L O G I C A L S TAT E S

EXPERIENCED MEANINGFULNESS

•The experienced meaningfulness of the work is the degree to which the employee experiences the
work to be inherent and meaningful, something that adds value to the experience. 

EXPERIENCED RESPONSIBILITY

•The experienced feeling of responsibility is formed by the amount of autonomy the job offers and
demands.

K N O W L E D G E O F R E S U LT S

•Knowledge of results is formed by feedback systems within a company.

•It indicates the degree to which the task holder is provided with direct and clear information on the
effectiveness of his or her performance.
W O R K - R E L AT E D R E S U LT S

HIGH PERFORMANCE

•A good performance of an employee consists of high quality of the delivered work and a large
quantity of work.

•That is, productivity increases when the employee experiences the three psychological states.

H I G H M O T I V AT I O N

•An employee can be motivated by external sources, such as monetary rewards, but the most
valuable motivation comes from within.

•Intrinsic motivation is attained through valuable, responsible and autonomous work.

H I G H S AT I S F A C T I O N

•A simple definition of satisfaction is an employee’s level of satisfaction with his or her job.

•
JOB REDESIGN

Job redesign is an effort where job responsibilities and tasks are

reviewed, and possibly re-allocated among staff, to improve output.

Redesigning jobs can lead to improvements in both productivity

and in job satisfaction
J O B R O TAT I O N
The periodic shifting of an employee from one task to another.

Benefits:

-more flexibility for orders/production -increases job satisfaction

-increases organisational commitment -improves productivity of the
employee

Drawbacks:

-increases training costs

-Reduces overall productivity of that role

-creates disruption due to employee shuffling

-consumes supervisor's efforts of guiding and monitoring the recently
rotated employees
JOB ENRICHMENT
Adding high level responsibilities to a job to increase intrinsic
motivation.

Benefits:

-increases a sense of purpose and direction

-gives employees a realistic preview

-Creates a positive and better working environment

Drawbacks:

-Increases work load

-Additional skills needed -Unfavourable for the employees
•
R E L AT I O N A L J O B D E S I G N :
Constructing jobs so employees see the difference they can make in
the life of others directly through their work.

BENEFITS



-makes a prosocial difference by connecting employees to the impact
they are having on the beneficiaries of their work -contact with
beneficiaries is a characteristic of jobs that enhances the motivation

-Improves CSR of the organisation by volunteering of employees.

No Drawbacks as of yet.
•
A LT E R N AT I V E W O R K A R R A N G E M E N T S

Alternative Work Arrangements are work arrangements that

include flexible work schedules, job sharing of one position
between several employees and having a regular work location at a
place other than a campus work site.
•
FLEXTIME

Short for Flexible Work time or arrangements. In this approach the employees must work a
specific number of hours per week but may vary their own hours of work, within limits.

BENEFITS:

-Reduces absenteeism

-Employees can work when they are most productive

DRAWBACKS:

-if used too much, can undermine goal accomplishment

-not applicable to every job or every worker

JOB SHARING
An arrangement that allows two or more individuals to split a traditional 40-hour-a-week-job.

BENEFITS:

-allows the organisation to draw talents out of more than one individual for a given job.

-Enables the organisation to acquire skilled workers

-less expensive in terms of salary

DRAWBACKS:

-difficulty of finding compatible partners

-negative perceptions of individuals not committed to their jobs and employers.

TELECOMMUTING

Working from home at least 2 days a week through virtual devices that are linked to the
employer’ s office.

BENEFITS:



-Reduces work-family conflicts

-Environmentally more viable -Reduces job stress

DRAWBACKS:



-may lead to social loafing

-not suitable for repetitive kind of work

-a manager working remotely can negatively affect the employee's performance.
E M P L O Y E E I N V O LV E M E N T
E M P L O Y E E I N V O LV E M E N T:

A participative process that uses the input of employees to increase employee

commitment to organizational success.

PA R T I C I PAT I V E M A N A G E M E N T

A process in which subordinates share a significant degree of decision making power

with their immediate superiors.

R E P R E S E N TAT I V E PA R T I C I PAT I O N

A system in which workers participate in organisational decision making through small

group of representative employees.
•
R E W A R D S T O M O T I V AT E E M P L O Y E E S

EXTRINSIC REWARDS
Extrinsic rewards are the physical ones that come from an external
source (employers) only. A properly designed extrinsic reward can
also be emotionally attached with the employees as employees
value such rewards.

An extrinsic reward is also directly related to the job performance of

the employees but it is not necessary that employees receive a
reward every time they accomplish a task. It depends upon the
policy of the company.
A M A Z O N / A P P L E / M I C R O S O F T H I G H PAY

With a median pay of about 200,000 USD they are one of the most
highly paying companies in the world.
HARI KRISHNA EXPORTS’S
E X T R AVA G A N T G I F T S
The case is about the promoter of Rs 6,000-
crore Hari Krishna Exports Mr. Dholakia.

He gifted Mercedes-Benz GLS 350d SUVs

worth Rs 1 crore each, to three employees for
completing 25 years of service in the
company.
HARI KRISHNA EXPORTS’S
E X T R AVA G A N T G I F T S

This is not the first time when

Dholakia has rewarded his
employees with expensive gifts.
The Surat-based merchant had
gifted 500 flats, 525 pieces of
diamond jewellery and 200 flats to
his employees in 2014 as Diwali
bonus. In 2015, Dholakia rewarded
1,268 employees, while in 2016 he
gifted 1,260 cars and 400 flats to
the deserving staff in 2016
B K C A P I TA L’ S C O M M I S S I O N S

The company is involved investment banking among

many of its verticals. Pays 3% of the deal to its employee
as bonus on fulfilling every 100 cr or more value deal.
ENRON’S BONUSES

The Enron Corporation paid its executives huge one-time bonuses

last year as a reward for hitting a series of stock-price targets ending
in 2000.

The bonus payments and other special cash distributions include

some $320 million.

Details of the bonuses -- as well as other payments totaling more

than $432 million made to almost 2,000 corporate executives
EXXONMOBIL

ExxonMobile is the largest of the world’s Big Oil companies and the
largest refiner in the world. Based in Irving Texas, the company
employs 73,500 people. Employees are provided with a pension.
This includes new hires, once vested. The pension’s defined benefit
system includes a formula that will calculate the retirement benefit
for you based on your years of pension service pay and expected
Social Security benefit. When you retire, you can tell the company
how you want to draw from your pension and when you want the
payments to start.
COCA COLA

The old slogan “Have a Coke and a smile” may hold even more
meaning for employees who are smiling because they get a
pension. Coca-Cola, based in Atlanta, employs 123,000 people and
provides everyone with a pension plan – including new hires once
they are vested. The retiring employee gets a life annuity at his or
her normal retirement age. Coca-Cola employees on Glassdoor
reported becoming vested in the pension plan after two years with
the company.
HUAWEI’S ESOP AND PROFIT SHARING

Chinese telecom giant Huawei, a private company owned by its employees.

Founded in 1987 by Ren Zhengfei, today it employs about 170,000 staff,
including more than 40,000 non-Chinese (75% of employees outside China
are local hires), and serves more than 3 billion customers worldwide

Today, Zhengfei himself holds only 1.4% of the company’s total share capital,
with 82,471 employees holding the rest (as stated in Huawei’s 2014 Annual
report, as of December 31, 2014). Furthermore, because Huawei is not a
public company and owned by its employees, employees take a large share
from the companies earning. In the case of Huawei the total net profit that
was earned over the last twenty years is considerably smaller than the total
net profit that was paid out to its employees. To be specific, the sum of
employees’ salaries, bonuses and dividends is 2.8 times the company’s
annual net profit, and plans are to further increase the ratio to 3:1.
R E W A R D S T O M O T I V AT E E M P L O Y E E S

INTRINSIC REWARDS
Intrinsic rewards are the non-physical rewards. They cannot be seen
or touched but are emotionally connected with the employees. In
other words, intrinsic rewards can be defined as the feeling of
contentment one finds in the completion of any task.

Intrinsic reward is directly related to job performance as a successful

task automatically produces it. Higher the success rate, higher will
be the rate of intrinsic rewards one receives.
VIRGIN’S LISTENING

This multi-industry organisation has a habit of

listening to its employees, to show that they
are valued, to listen to their opinions and take
care of their ideas, to have healthy debates
and continuously innovate. It’s a win-win; the
organisation keeps learning and employees
feel important and engage with the
organisation.
G O O G L E ’ S W O R K S PA C E

Perks: Flexible work schedule, outdoor and indoor games, massage

parlours, fully equipped gym, and sleep pods
BURTON’S COMFORT

Burton a company which engages in producing snowboarding

equipments.

It encourages employees to wear jeans, flip-flops and t-shirts to its

dog-friendly workplaces, which include fireplaces and couches.
Employees and immediate family members are given 50-60 percent
discounts on all Burton products, which they can wear when they hit
their slope of choice with their free season passes and free lessons.
Burton offices close for all employees whenever it snows two feet or
more, and in the summer, employees can take off early on Fridays to
get a jumpstart on their weekends.
F U L L C O N TA C T ’ S F O R C E D V A C AT I O N

FullContact, a company that provides cloud-based contact

management solutions for businesses, developers and individuals,
recently introduced a radical idea into the employee rewards
realm: “paid, paid vacation,” where employees are given $7,500 to
go on vacation. Co-founder Bart Lorang explained the company’s
decision to implement paid, paid vacation in a post on the
company’s blog.

There are no rules on where employees must go for their paid, paid
vacations. The only rules are that, to keep the money, employees
must go on vacation, and they must disconnect entirely while there
—no work can be completed while taking a paid, paid vacation.
N 6 A’ S P O I N T S

N6A is a public relations company that recently made a switch to

allow its employees to customize how they receive their benefits and
rewards. It offers a traditional baseline of benefits to all its employees,
but has recently introduced a new rewards program called Pace
Points, which offers customized reward options to each employee.

Millennials and Gen Z are commonly known to disregard the phrase

“This is how it’s always been done” and how they prefer their benefits
and rewards is no different. Every employee is different and may have
a different life circumstance. N6A is wise to create a program that
makes it clear all their employees are valuable to them, not just the
individuals that fit a cookie cutter program.
INTUIT TECHNOLOGY’S OPENNESS

Intuit Inc. is an American business and financial software company

that develops and sells financial, accounting, and tax preparation
software and related services for small businesses, accountants, and
individuals.

Some of the benefits it provides to its employees are LGBT

discussions, options to return after a career break, and start new
projects outside office
RMSI’S CARE

RMSI is an IT and analytics company. It is probably one of the best

companies not just in India but across the world to provide one of
the bet kind of rewards possible.

Parenting, and relationship counselling, child psychology and self

defense workshops, health initiatives, photography club, painting,
acting, movie making, guitar classes, zumba lessons, and sports
tournaments
PRIDE RECOGNITION AND
ACKNOWLEDGEMENT