M.B.

A II SEM
HUMAN RESOURCE MANAGEMENT
--MS. FARHA SUBHANI
DATE: 03/04/2020
UNIT –V
Motivation

Definition: Motivation

Motivation is defined as the feeling based on which a person acts or behaves regarding a
particular task or activity. Motivation is a human psychology factor which drives or pushes a
person to behave in a particular way. When the motivation is positive, a person is happy,
energetic, enthusiastic & self-driven and when it is negative motivation, person is demoralized,
sad, lethargic & pessimistic.

Importance of Motivation

Motivation is an important psychological factor for any individual as it defines the work,
ambition and drive of that person to do any work. A person with high levels of motivation is
motivated to do good quality work, help others, spread their energy and focus on achieving
goals. On the contrary, a person with low levels of motivation, demotivates others, works
shabbily and creates a negative atmosphere. Motivation is an important human factor in an
individual’s personal as well as professional life. Positive motivation for people is required in
every field like business, sports, politics, entrepreneurship etc. Motivation is the desire of an
individual to work towards a motive, which is a certain task. In business, good motivation helps
employees learn important managerial skills like leadership, team management, time
management, decision making, communication etc.

Motivation is driven by several factors which influences the behavior and attitude of an
individual. Based on the different factors and the kind of impact it has on a person, there are
different types of motivation. The different types of motivation in people are:
1. Intrinsic Motivation: Intrinsic motivation is the type of motivation which comes from within
a person to do a task or achieve a particular goal. It is a feeling of being self-driven and
achieving objectives for oneself. Intrinsic motivation is driven by motives like social acceptance,
eating food, desires to achieve goals, biological needs etc.

2. Extrinsic Motivation: Extrinsic motivation is the type of motivation which drives an

individual due to external forces or parameters. Some other person or organization motivates the
individual to work hard to achieve certain goals or tasks. Extrinsic motivation is driven by
motives like financial bonus, rewards, appreciation, promotion, punishment, demotion etc.

3. Positive Motivation: Positive motivation is the type of motivation which drives an individual

by offering positive accolades and rewards for performing a task. In this type of motivation, the
individual is rewarded by monetary benefits, promotions etc which drives an individual to work
hard.

4. Negative Motivation: Negative motivation is a type of motivation where fear and threat are
used as a parameter to get the work done. In this type of motivation, individuals are threatened
with things like demotion, reducing benefits, withdrawing merits etc.

The key elements & top factors which influence motivation amongst employees in business or
people in general are as follows:

1. Salary: Monetary compensation & benefits like gross salary, perks, performance bonuses

etc are the biggest motivation factors. The better the salary and monetary benefits, the higher is
the motivation level & passion of a person towards a job.

2. Recognition: Rewards, recognition, accolades etc are important for ensuring high motivation
levels for an employee. If the hard work of an individual is appreciated, it keeps them motivated
to perform better.

3. Work Ethics: Ethical working environment, honesty etc are important factors for the
motivation levels for any individual. Good work ethics in a company helps keep employees
motivated at work place.

4. Transparency with Leadership: The leadership in an organization helps in employee

motivation if there are transparent discussion and flatter hierarchies. The senior management has
to ensure that all subordinates are happy, focused & motivated.
5. Culture at Work: A good, vibrant, positive culture at workplace is always an important factor
of motivation. People from different backgrounds, religions, countries etc working together helps
create a social bond at workplace.

6. Learning and Development: Another factor influencing motivation is the training and

developmentopportunities that a person gets. L&D helps individuals develop more skills and
have better opportunities in their professional career.

7. Work Life Balance: Having a good quality of work life (QWL) helps in the motivation of

people. A good work life balance ensures that a person can give quality time to both office work
as well as family.

8. Career Growth Opportunities: Career development opportunities have a positive influence

on the motivation of any person. If a person knows their future & career path is secure, they tend
to work with more passion.

9. Health Benefits: Health benefits, insurance & other incentives act as a source of motivation
for people. If the medical bills, hospitalization charges etc are taken care of by the company, it
helps build a strong trust.
Maslow's Hierarchy of Needs Theory

In the year 1943 a Psychologist Maslow suggested his Theory of Human Motivation. His theory
is one popular and extensively cited theory of human motivation. Maslow's theory is based on 
Hierarchy of Human Needs. According to Maslow, human behavior is related to his needs. It is
adjusted as per the nature of needs to be satisfied. In hierarchy of needs theory of motivation,
Maslow identified five types / sets of human need arranged in a hierarchy of their importance
and priority. He concluded that when one set of needs is satisfied, it ceases to be a motivating
factor. Thereafter, the next set of needs in the hierarchy order takes its place. These needs in
hierarchy can be compared to a pyramid. At the lowest level, there will be first set of needs
which can be described as basic needs or Physiological needs and are universal in character.
This will be followed by other sets of needs.

Abraham Maslow organized five major types of human needs into a hierarchy, as shown in
Figure. The need hierarchy illustrates Maslow’s conception of people satisfying their needs in a
specified order, from bottom to top. The needs, in ascending order, are: 

1. Physiological needs
2. Safety needs
3. Love belonging
4. Self-Esteem
 5. Self-actualization

PhysiologicalNeeds : 
The Physiological needs are the basic needs for sustaining the human life. These needs include
food, clothing, shelter, rest, water, air, sleep and sexual satisfaction. These basic human needs
(also called as biological needs) lie at the lowest level in the hierarchy of needs as they have
priority over all other needs. These needs cannot be postponed for long time. Unless and until
these basic physiological needs are satisfied to the required extent, other needs do not motivate
an person/employee. A hungry person, for example, is just not in a position to think of anything
else except his hunger or food. According to Maslow, 'man lives by bread alone,' when there is
no bread. The management attempts to meet such physiological needs through payment of fair
wages.

SecuritySafetyNeeds : 
These are the needs connected with psychological fear of loss of job, property, natural calamities
or hazards, etc. An employee wants and needs protection from such types of fear. He prefers
adequate safety and security in this regard i.e. protection from physical danger, security of job,
pension at old age, insurance coverage for life, etc. The safety needs come after meeting the
physiological needs. Such physiological needs lose their motivational potential when they are
satisfied. As a result, safety needs replaces them. They begin to manifest themselves and
dominate the human behavior. Safety needs act as motivational forces only if they are
unsatisfied.
Social Needs/Love belonging : 
An employee is a human being is rightly treated as social animal. He desires or likes to stay in
group. Human being feels that he should belong to one or the other group and the member of the
group should accept him with the love and affection. Every human being desires to be affiliated
to such groups. This is treated as basic social need of an individual. He also feels that he should
be loved by the other persons. He needs friends and interaction with his friends and superiors of
the group such as fellow employees or his superiors. Social needs occupy third position in the
hierarchy of needs.

Esteem Needs : 
This category of needs include the need to be respected by others, need to be appreciated by
others, need to have the power and finally prestigious position. Once the previous needs are
satisfied, a human being feels to be held in esteem both by himself and also by others. Thus,
esteem needs are two fold in nature. Self esteem needs include those for self confidence, self-
respect, competence, etc. The second groups of esteem needs are those related to one's status,
reputation, recognition and appreciation by others. This is a type of personal ego which needs to
be satisfied. The Organisation can satisfy this need (ego) by giving recognition to the good work
of employees in organisation. Esteem needs do not assume the motivational properties unless the
previous needs are satisfied.

"Recognition is like a small drop of oil in the machinery of business. It just makes things run a
little smoother." -– Obert Tanner

Self-actualization Needs : 
This is the highest among the needs in the hierarchy of needs advocated by Abraham Maslow.
Self actualisation is the desire to become what one is capable of becoming. It is the 'growth'
need. A worker must work efficiently if he is to be ultimately happy. Here, a person feels that he
should accomplish something in his life. Human want to utilise his potentials to the maximum
extent and desires to become what one is capable of becoming. A person desires to have
challenges and achieves something special in his life or in the area of his specialization. Though
every one is capable of self-actualization, many do not reach this stage. This need is fully
satisfied rarely.

How does the Hierarchy Work?

 A person starts at the bottom of the hierarchy (pyramid) and will initially seek to satisfy
basic needs (e.g. food,clothing and shelter)

 Once these physiological needs have been satisfied, they are no longer a motivator. the
individual moves up to the next level
 Safety needs at work could include physical safety (e.g. protective clothing) as well as
protection against unemployment, loss of income through sickness etc)
  Social needs recognise that most people want to belong to a group. These would include
the need for love and belonging (e.g. working with colleague who support you at work,
teamwork, communication)

 Esteem needs are about being given recognition for a job well done. They reflect the fact
that many people seek the esteem and respect of others. Apromotion at work might
achieve this.

 Self-actualisation is about how people think about themselves - this is often measured by
the extent of success and/or challenge at work

Maslow's model has great potential appeal in the business world. The message is clear - if
management can find out which level each employee has reached, then they can decide on
suitable rewards.

MC. GREGOR THEORY X AND Y

In the 1960s, social psychologist Douglas McGregor developed two contrasting theories that
explained how managers' beliefs about what motivates their people can affect their management
style. He labelled these Theory X and Theory Y. These theories continue to be important even
today.

This article and video will explore McGregor's theory further, and we'll look at how it applies in
the workplace.

Understanding Theory X and Theory Y

Theory X and Theory Y were first explained by McGregor in his book, "The Human Side of
Enterprise," and they refer to two styles of management – authoritarian (Theory X) and
participative (Theory Y).

If you believe that your team members dislike their work and have little motivation, then,
according to McGregor, you'll likely use an authoritarian style of management. This approach is
very "hands-on" and usually involves micromanaging people's work to ensure that it gets done
properly. McGregor called this Theory X.

On the other hand, if you believe that your people take pride in their work and see it as a
challenge

, then you'll more likely adopt a participative management style. Managers who use this
approach trust their people to take ownership of their work and do it effectively by themselves.
McGregor called this Theory Y.

The approach that you take will have a significant impact on your ability to motivate your
team members. So, it's important to understand how your perceptions of what motivates them
can shape your management style.

We'll now take a more in-depth look at the two different theories, and discover how and when
they can be useful in the workplace.

Theory X

Theory X managers tend to take a pessimistic view of their people, and assume that they are
naturally unmotivated and dislike work. As a result, they think that team members need to be
prompted, rewarded

or punished constantly to make sure that they complete their tasks.

Work in organizations that are managed like this can be repetitive, and people are often
motivated with a "carrot and stick" approach. Performance appraisals

and remuneration

are usually based on tangible results, such as sales figures or product output, and are used to
control staff and "keep tabs" on them.

This style of management assumes that workers:

 Dislike their work.

 Avoid responsibility and need constant direction.
 Have to be controlled, forced and threatened to deliver work.

 Need to be supervised at every step.

 Have no incentive to work or ambition, and therefore need to be enticed by rewards to
achieve goals.

According to McGregor, organizations with a Theory X approach tend to have several tiers of
managers and supervisors to oversee and direct workers. Authority is rarely delegated, and
control remains firmly centralized. Managers are more authoritarian and actively intervene to get
things done.

Although Theory X management has largely fallen out of fashion in recent times, big
organizations may find that adopting it is unavoidable due to the sheer number of people that
they employ and the tight deadlines that they have to meet.

Theory Y

Theory Y managers have an optimistic, positive opinion of their people, and they use a
decentralized, participative management style. This encourages a more collaborative
, trust-based

relationship between managers and their team members.

People have greater responsibility, and managers encourage them to develop their skills and
suggest improvements. Appraisals are regular but, unlike in Theory X organizations, they are
used to encourage open communication rather than control staff.

Theory Y organizations also give employees frequent opportunities for promotion.

This style of management assumes that workers are:

 Happy to work on their own initiative.

 More involved in decision making.
 Self-motivated to complete their tasks.
 Enjoy taking ownership of their work.
 Seek and accept responsibility, and need little direction.

 View work as fulfilling and challenging.

 Solve problems creatively and imaginatively.

Theory Y has become more popular among organizations. This reflects workers' increasing
desire for more meaningful careers that provide them with more than just money.

It's also viewed by McGregor as superior to Theory X, which, he says, reduces workers to "cogs
in a machine," and likely demotivates people in the long term.

Herzberg’s Two-Factor Theory of Motivation

In 1959, Frederick Herzberg, a behavioural scientist proposed a two-factor theory or the

motivator-hygiene theory. According to Herzberg, there are some job factors that result in
satisfaction while there are other job factors that prevent dissatisfaction. According to Herzberg,
the opposite of “Satisfaction” is “No satisfaction” and the opposite of “Dissatisfaction” is “No
Dissatisfaction”.

FIGURE: Herzberg’s view of satisfaction and dissatisfaction

Herzberg classified these job factors into two categories-

a. Hygiene factors- Hygiene factors are those job factors which are essential for existence
of motivation at workplace. These do not lead to positive satisfaction for long-term. But
if these factors are absent / if these factors are non-existant at workplace, then they lead
to dissatisfaction. In other words, hygiene factors are those factors which when
adequate/reasonable in a job, pacify the employees and do not make them dissatisfied.
These factors are extrinsic to work. Hygiene factors are also called as dissatisfiers or
maintenance factors as they are required to avoid dissatisfaction. These factors describe
the job environment/scenario. The hygiene factors symbolized the physiological needs
which the individuals wanted and expected to be fulfilled. Hygiene factors include:
 Pay - The pay or salary structure
should be appropriate and reasonable. It must
be equal and competitive to those in the same
industry in the same domain.
 Company Policies and administrative
policies - The company policies should not be
too rigid. They should be fair and clear. It
should include flexible working hours, dress
code, breaks, vacation, etc.
 Fringe benefits - The employees
should be offered health care plans
(mediclaim), benefits for the family members,
employee help programmes, etc.
 Physical Working conditions - The
working conditions should be safe, clean and
hygienic. The work equipments should be
updated and well-maintained.
 Status - The employees’ status within
the organization should be familiar and
retained.
 Interpersonal relations - The
relationship of the employees with his peers,
superiors and subordinates should be
appropriate and acceptable. There should be
no conflict or humiliation element present.
 Job Security - The organization must
provide job security to the employees.

b. Motivational factors- According to Herzberg, the hygiene factors cannot be regarded as

motivators. The motivational factors yield positive satisfaction. These factors are inherent
to work. These factors motivate the employees for a superior performance. These factors
are called satisfiers. These are factors involved in performing the job. Employees find
 these factors intrinsically rewarding. The motivators symbolized the psychological needs
that were perceived as an additional benefit. Motivational factors include:
 Recognition - The employees should be praised and recognized for their
accomplishments by the managers.
 Sense of achievement - The employees must have a sense of achievement. This
depends on the job. There must be a fruit of some sort in the job.
 Growth and promotional opportunities - There must be growth and advancement
opportunities in an organization to motivate the employees to perform well.
 Responsibility - The employees must hold themselves responsible for the work.
The managers should give them ownership of the work. They should minimize
control but retain accountability.
 Meaningfulness of the work - The work itself should be meaningful, interesting
and challenging for the employee to perform and to get motivated.

Limitations of Two-Factor Theory

The two factor theory is not free from limitations:

1. The two-factor theory overlooks situational variables.

2. Herzberg assumed a correlation between satisfaction and productivity. But the research
conducted by Herzberg stressed upon satisfaction and ignored productivity.
3. The theory’s reliability is uncertain. Analysis has to be made by the raters. The raters
may spoil the findings by analyzing same response in different manner.
4. No comprehensive measure of satisfaction was used. An employee may find his job
acceptable despite the fact that he may hate/object part of his job.
5. The two factor theory is not free from bias as it is based on the natural reaction of
employees when they are enquired the sources of satisfaction and dissatisfaction at work.
They will blame dissatisfaction on the external factors such as salary structure, company
policies and peer relationship. Also, the employees will give credit to themselves for the
satisfaction factor at work.
6. The theory ignores blue-collar workers. Despite these limitations, Herzberg’s Two-Factor
theory is acceptable broadly.

Implications of Two-Factor Theory

The Two-Factor theory implies that the managers must stress upon guaranteeing the
adequacy of the hygiene factors to avoid employee dissatisfaction. Also, the managers must
make sure that the work is stimulating and rewarding so that the employees are motivated to
work and perform harder and better. This theory emphasize upon job-enrichment so as to
motivate the employees. The job must utilize the employee’s skills and competencies to the
maximum. Focusing on the motivational factors can improve work-quality.

Participative Management
Participative Management is a management tool that offers opportunities to all employees to
contribute to policy and decision making at work that helps achieve business objectives and
promotes job satisfaction.

The aim is stimulating engagement of stakeholders on all levels of an organisation and get their
input for problem analysis, strategy development, and solution implementation.

What is Participative Management?

Participative Management is also called Participatory Management. Employees are invited to

take part in the organisation’s decision-making process by contributing to activities, such as
setting objectives, determining work schedules, and offering suggestions. Other forms of
participative management include increasing employees’ responsibilities (job expansion); the
formation of self-directed teams, quality circles or committees for quality work; and asking for
feedback through surveys. However, participative management is more than just letting
employees have a say in decisions. It also means that management treats ideas and suggestions
by staff with respect. The most extreme form of participative management is direct employee
ownership of a company.

There are four processes that influence participation. These processes create employee
engagement because they reach the lowest levels within the organisation. The more widespread
these processes are, the higher employee engagement will be. The four processes include:

1. Information exchange, aimed at keeping employees informed about how the company is
performing financially.
2. Training, whereby employee skill levels are improved leading to career opportunities that allow
them to apply new skills to make effective decisions for the organisation as a whole.
3. Decision making by employees, which can be implemented in different ways, from deciding
working schedules to determining budgets or processes.
4. Rewards, which should be linked to suggestions and ideas as well as performance.

Why Participative Management?

A participative management style offers several advantages for all layers of the organisation. By
creating a sense of value within the company, participative management encourages a sense of
pride and motivates employees to improve productivity and meet their targets. Employees who
take part in company decisions feel like they are part of a team working together toward the
same end. This increases their self-esteem and sense of creative satisfaction.

Managers who opt for a participative management style will notice that employees are more
open to change than in situations in which they don’t have a say. Changes are implemented more
effectively when employees can provide input and contribute to decision making. Their
participation keeps employees in the loop about upcoming events, meaning they are aware of any
potential changes facing the organisation. The organisation can then put itself into a proactive
mode, rather than a reactive one, as managers will be able to quickly identify areas of concern
and ask employees to come up with solutions.
Participation helps employees develop a more complete idea of the organisation. Through
training, development opportunities, and sharing information, employees can acquire the
conceptual skills necessary to become effective supervisors or even top-level managers. It also
increases employee engagement within the organisation and makes them invested in the
decisions they make.

Creativity and innovation are two important advantages of participative management. By

enabling a diverse group of employees to make decisions, the whole organisation will benefit
from the synergies resulting from a wider range of options. When all employees, rather than just
managers or supervisors, are given the opportunity to contribute, it becomes more likely that a
unique idea will be proposed.

From a business perspective, the use of a participative management approach creates loyal
employees who are prepared to put time and effort into the company’s success. Employees often
have innovative ideas for cost reduction and waste elimination, process streamlining, and
improving customer satisfaction. This management style also creates more effective leaders on
all levels. Leaders can encourage and supervise employees towards achieving company
objectives using various global platforms. In addition, under a participative management
structure, business operations often report increased productivity and improved performance on
all staff levels.

Deliberative, collaboration-based, and consensus-driven approaches facilitate transformative learning

because they include a range of viewpoints for optimising learning results. For instance, through the
interaction of values, interests, and world views. This is also known as collaborative science or the
consensus partnership method. The integration of this participative management approach facilitates
shared learning and makes institutional and team development stronger through the contributions by
individuals.

Implementing Participative Management

There is no specific participative management model. It requires that you know how your
company works, what your people are thinking, what they want, and what they hope to change.
It’s important to find out what their current primary motivations and concerns are.

The following steps can be used as a start. It’s important to adapt them to be useful in your
specific situation.

Step 1: Understand how your employees look at the current style of management

A good tool for this can be an organisational climate survey. If your run a small business, a very
open meeting – perhaps even in a pub with a few beers – can be a great place to find out what
everyone is thinking.
Step 2: Be more open about business information

Sharing results – and showing how each employee contributes to them – can help increase
everyone’s sense of responsibility and collaboration.

Step 3: Involve your team with generating and implementing ideas

The more ideas you have that don’t just come from management, the more engaged employees
will be. In order to achieve this, why not organise brainstorming sessions or regular meetings for
exactly this purpose? This will encourage interested people to take on the challenge and
participate.

Step 4: Know who is part of your team

Just having the most participative management doesn’t help you. Your managers need to know
who they are working with. This is why it’s important to offer personal feedback based on
behaviour and to make sure everyone has a personal development plan.

Step 5: Monitor the changes

Tracking the implementation of participative management is just as essential as its actual

implementation. When you understand how different areas interact and how employees feel, this
process can be taken to another level within your company.