Assignment on

“Motivation”

Course Title: Principles of Management

Course Code: MGT-511

Submitted to Submitted by
Anwar Ahmad Arif (AAA) Shadman Saquib Afindi
Assistant Professor ID# 2031015001
Department of Business
Administration
Leading University, Sylhet
E-mail: aaarif@lus.ac.bd

Date of submission: 05.02.2021

Motivation
Motivation is the word derived from the word ’motive’ which means needs, desires, wants or drives
within the individuals. 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 behavior can be -
 desire for money
 success
 recognition
 job-satisfaction
 team work, etc
One of the most important functions of management is to create willingness amongst the employees
to perform in the best of their abilities. Therefore the role of a leader is to arouse interest in
performance of employees in their jobs. The process of motivation consists of three stages:-
1. A felt need or drive
2. A stimulus in which needs have to be aroused
3. When needs are satisfied, the satisfaction or accomplishment of goals.
Therefore, we can say that motivation is a psychological phenomenon which means needs and
wants of the individuals have to be tackled by framing an incentive plan.
Human beings engage in various actions. For example, a student studies his books, a man is
striving to get a job, a man is taking an injured from a road to a hospital to save his life, a person is
eating a meal and so on. Behind each of these actions, there is a driving force which compels the
person to engage in that action – which is called motivation. For example, a student studies his
books because he wants to get high marks in his exam. The aim of getting high marks is a
motivation for the students studying his books. Similarly, a man is striving to get a Job because he
wants to earn money – the aim of earning money is a motivation for the main striving to get a job.
Every action has an aim. Every action has certain good and bad consequences. These aims, rewards
or punishments serve as a motivation for engaging in an action. These aims, rewards or
punishments create a driving force which stimulates an individual towards an action. For example,
hunger is a biological drive that compels an individual to eat some food. Similarly, relief from
pain is a driving force compelling an individual to act to relieve the pain, e.g. by eating medicine
etc.
Apart from the above naturally existing motivation, purposeful motivation is also offered to fuel an
individual to initiate and sustain certain behavior. For example, incentives, bonuses, allowances,
awards, appreciation certificates, prizes, promotion and demotion; and rewards and punishments
are purposeful motivation mostly offered at an organization to improve the efficiency and
productivity of its employees.
Similarly, merit certificates, distinction certificates, silver and gold medals, achievement-shields,
and other prizes are designed at educational institutions to motivate students towards their studies.
Being motivated means to have an impetus or inspiration to behave actively towards a goal.
Motivation is a powerful, yet tricky beast. Sometimes it is really easy to get motivated, and find
yourself wrapped up in a whirlwind of excitement. Other times, it is nearly impossible to figure out
how to get motivate and trap in a death spiral of procrastination. 

Motivation & Motives

The terms Motivation and Motives are sometimes used interchangeably but there is a difference in
meaning of both terms.
Motivation is a generalized term while motive is a specific term. A motive is an agent of
motivation. A motive is a goal, an aim, ambition, a need, a want, an interest, or a desire that
motivates an individual towards an action. On the other hand, the term Motivation refers to the
process in which motives motivates an individual towards an action.
It includes the following motives:
 Biological drives: e.g. hunger, thirst, relief from pain, sleep, temperature regulation
 Curiosity
 Internal fears
 Psychological needs
 Internal desires

Types of Motivations
There are two major types of motivations.
1. Intrinsic Motivation
2. Extrinsic Motivation

Intrinsic Motivation
It is a type of motivation in which the motives originates from inside the human body. It refers to
the internal driving state stimulating an individual to behave in a specific way.
It includes all biological drives such as hunger, thirst, sleep, relief from pain, temperature
regulation, need for oxygen and so on. For example, the hunger is driving force coming from inside
to compel an individual to eat food. Similarly, after doing all day activities, the individual feels
tired and requires a good amount of sleep to relax for the next day. Our curiosity, internal fears,
psychological needs and desires also serve as intrinsic motives.

Extrinsic Motivation
In this type of motivation, the motives originate from outside the human body. The driving force
exists outside the human body that stimulates the individual for certain actions. Though these
motives are external to the human body but they have a rewarding or punishing impact for the
individual.
It includes the following motives:
 Incentives
 Bonuses
 Allowances
 Promotion and demotion
 Rewards and punishment
 Merit and Distinction certificates
 Appreciation certificates and prizes
EARLY theories of Motivation
There are many early theories of motivation but these are the by far most popular: Maslow’s
hierarchy of needs, McGregor’s Theories X and Y, Herzberg’s two-factor theory, and McClelland’s
three-needs theory
Maslow’s Hierarchy of Needs Theory
In order to better understand what motivates human beings, Maslow proposed that human needs
can be organized into a hierarchy. This hierarchy ranges from more concrete needs such as food
and water to abstract concepts such as self-fulfillment. According to Maslow, when a lower need is
met, the next need on the hierarchy becomes our focus of attention.
These are the five categories of needs according to Maslow:

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.

Safety Needs:
The second level of Maslow’s hierarchy of needs consists of safety needs. Safety, or security needs,
relate to a person’s need to feel safe and secure in their life and surroundings. Motivation comes
from the need for law, order, and protection from unpredictable and dangerous conditions.
There are many examples of safety needs in modern society. To find stability and security, a person
must consider their physical safety. This means seeking protection from the elements, violent
conditions, or health threats and sickness. Additionally, an individual needs economic safety to live
and thrive in modern societies. This refers to the need for job security, stable income, and savings.
One method of achieving economic safety is to learn proper investment strategies.

Social/Love & Belongings Needs:

According to Maslow, the next need in the hierarchy involves feeling loved and accepted. This
need includes both romantic relationships as well as ties to friends and family members. It also
includes our need to feel that we belong to a social group. Importantly, this need encompasses both
feeling loved and feeling love towards others.
Since Maslow’s time, researchers have continued to explore how love and belonging needs impact
well-being. For example, having social connections is related to better physical health and,
conversely, feeling isolated (i.e. having unmet belonging needs) has negative consequences for
health and well-being

Esteem Needs:
Once humans have met their need for social belonging and acceptance, that they start to focus on
themselves and their self-esteem.
These needs are all about satisfying the ego and being valued. Maslow divided this need into two
levels. At the lower level, individuals seek to achieve status, respect and recognition from others.
At the higher level, they seek these things from themselves.

Self-Actualization Needs:
Self-actualization refers to feeling fulfilled, or feeling that we are living up to our potential. One
unique feature of self-actualization is that it looks different for everyone. For one person, self-
actualization might involve helping others; for another person, it might involve achievements in an
artistic or creative field. Essentially, self-actualization means feeling that we are doing what we
believe we are meant to do. According to Maslow, achieving self-actualization is relatively rare,
and his examples of famous self-actualized individuals include Abraham Lincoln, Albert Einstein,
and Mother Teresa.
Maslow argued that each level in the needs hierarchy must be substantially satisfied before the next
need becomes dominant. An individual moves up the needs hierarchy from one level to the next. In
addition, Maslow separated they’ve needs into higher and lower levels. Physiological and safety
needs were considered lower-order needs; social, esteem, and self-actualization needs were
considered higher order needs. Lower-order needs are predominantly satisfied externally while
higher order needs are satisfied internally.

McGregor’s Theory X and Theory Y

The idea that a manager’s attitude has an impact on employee motivation was originally proposed
by Douglas McGregor, a management professor at the Massachusetts Institute of Technology during the
1950s and 1960s. In his 1960 book, The Human Side of Enterprise, McGregor proposed two theories by
which managers perceive and address employee motivation. He referred to these opposing motivational
methods as Theory X and Theory Y management. Each assumes that the manager’s role is to organize
resources, including people, to best benefit the company. However, beyond this commonality, the attitudes
and assumptions they embody are quite different.

Theory X

Managers following Theory X have a tendency to take a cynical view of team members and accept
that they dislike their work and naturally unmotivated. As a result, the managers think that their
team members need to be rewarded, prompted, or punished constantly so that they complete the
task accurately.

Organizations, where works are managed by following McGregor Theory X, can be repetitive, and
team members are often motivated by the “carrot and stick” method. Remuneration and
performance appraisals generally depend on tangible results, like product output, sales figures, and
also used in controlling staff and “keep tabs” on them. This management style takes responsibility
that team member:
 Dislike their work
 Need constant direction and avoid responsibility
 Needs to be threatened, forced, and controlled in completing and delivering work
 Are required to be supervised continuously
 Have no ambition, no incentive to work

As per the McGregor, an organization following Theory X approaches lean towards having several
tiers of supervisors and managers to supervise, manage, and direct workers. He also says that
authority is hardly ever delegated, and control remains consolidated. Managers actively get
involved to get the tasks completed and quite authoritarian.

Even though management following Theory X approach has fallen heavily out of fashion in recent
years, large organizations find that taking it into action is unavoidable because of a total number of
people employed and due to short deadlines that they are required to meet.

Theory Y

Managers who have adopted McGregor Theory Y have a positive and optimistic opinion of people,
and they use a participative style of management. This emboldens in being the more collaborative
and trust-based relationship between team members and managers.
Managers and people with responsibility support in developing and enhancing their skills and
recommend improvements. Appraisals and reviews are regular but, unlike the organizations
following McGregor Theory X, they support open communication instead of control staff. The
organizations following the Theory Y approach provide frequent promotion opportunities to the
employee. This management style undertakes that team members are:
 Likely to work on their proposal and plan
 Involved in decision-making
 Self-motivated
 Taking accountability and responsibility for their work
 View assigned task a challenging and fulfilling
 Able to solve problems imaginatively and creatively
Nowadays, many organizations are using McGregor’s Theory Y which imitates workers’ desire and
willingness for meaningful careers.

Herzberg’s Two-Factor Theory

The Two Factor Theory has had a considerable amount of practical and as well as theoretical
influences. In fact, from a practical perspective, the influence of Herzberg's motivation theory can
be seen at every organizational level as well as within every department. From a theoretical
perspective, Herzberg's motivation theory can be perceived as having similarities to Maslow's
Theory of Need with the exception that for Herzberg's theory, the needs aren't placed in a
progressive continuum, rather they are divided into two independent factors. In fact, Herzberg
would argue that the opposite of satisfaction is not dissatisfaction since different stimuli are
involved in generating each of those emotional states, reinforcing the fact that they are not on the
same continuum. As a result, these states must be measured on different scales.
Herzberg's motivation theory emerged from a collection of data gathered by the interview of 203
accountants and engineers within the Pittsburgh area. The interview process consisted of asking the
respondents to describe a work situation where they felt very happy as well as very unhappy. These
descriptions were to include as many details as possible, including their feelings, the interpretation
of the situation as well as the events that are suggestive of a change.
The analysis of the responses confirmed the proposed hypothesis, where some factors where
contributors to job satisfaction, while others were not. In addition, some factors were noted to be a
source of dissatisfaction when absent. These were categorized as "Motivators" and "Hygiene"
factors, the latter also being referred to as Maintenance Factors.
Motivators: They actually motivate an individual. They find their root within the job itself.

Herzberg’s Two-Factor Theory

Hygiene Factors: They don't have any motivational value when present, but do have a de-
motivational value if not present. These factors are extrinsic to the work itself.
In addition, Herzberg believed the data suggested that the opposite of satisfaction was not
dissatisfaction, as traditionally had been believed. Removing dissatisfying characteristics from a
job would not necessarily make that job more satisfying (or motivating). As shown in figure below,
Herzberg proposed that a dual continuum existed: The opposite of “satisfaction” is “no
satisfaction,” and the opposite of “dissatisfaction” is “no dissatisfaction.
 Contrasting Views of Satisfaction–Dissatisfaction
McClelland’s Three-Needs Theory
The Three Needs Theory was proposed by David McClelland and his associates. This theory states
that there are three needs a person has and meeting these needs provide motivation. The three needs
are need for achievement, need for power, and the need for affiliation. These needs can be
measured by testing individuals by using a set of pictures and making the individual write a story
based on the picture they have seen. The test is interpreted by trained interpreters who determine
the level of each need and individual desires based on the stories written.
Need for Power (n-pow): What is Power? Power
is the ability to induce or influence the behavior of
others. The people with high power needs seek
high-level positions in the organization, so as to
exercise influence and control over others.
Generally, they are outspoken, forceful,
demanding, practical/realistic-not sentimental, and
like to get involved in the conversations.
Need for Affiliation (n-affil): People with high
need for affiliation derives pleasure from being
loved by all and tend to avoid the pain of being
rejected. Since, the human beings are social
animals, they like to interact and be with others
where they feel, people accept them. Thus, people with these needs like to maintain the pleasant
social relationships, enjoy the sense of intimacy and like to help and console others at the time of
trouble.
Need for Achievement (n-ach): McClelland found that some people have an intense desire to
achieve. He has identified the following characteristics of high achievers:
 High achievers take the moderate risks, i.e. a calculated risk while performing the activities in
the management context. This is opposite to the belief that high achievers take high risk.
 High achievers seek to obtain the immediate feedback for the work done by them, so as to know
their progress towards the goal.
 Once the goal is set, the high achiever puts himself completely into the job, until it gets
completed successfully. He will not be satisfied until he has given his 100% in the task
assigned to him.
 A person with a high need for achievement accomplishes the task that is intrinsically satisfying
and is not necessarily accompanied by the material rewards. Though he wants to earn money,
but satisfaction in the accomplishment of work itself gives him more pleasure than merely the
cash reward.
Hence, McClelland’s Needs Theory posits that the person’s level of effectiveness and motivation is
greatly influenced by these three basic needs.

CONTEMPORARY theories of motivation

The theories in this section represent current explanations of employee motivation. Although these
theories may not be as well known as those we just discussed, they are supported by research.
These contemporary motivation approaches include goal-setting theory, reinforcement theory, job
design theory, equity theory, expectancy theory, and high-involvement work practices.
Goal Setting Theory:
This theory states that goal setting is essentially linked to task performance. It states that specific
and challenging goals along with appropriate feedback contribute to higher and better task
performance.
In simple words, goals indicate and give direction to an employee about what needs to be done and
how much efforts are required to be put in.
The important features of goal-setting theory are as follows:
 The willingness to work towards attainment of goal is main source of job motivation. Clear,
particular and difficult goals are greater motivating factors than easy, general and vague
goals.
 Specific and clear goals lead to greater output and better performance. Unambiguous,
measurable and clear goals accompanied by a deadline for completion avoids
misunderstanding.
 Goals should be realistic and challenging. This gives an individual a feeling of pride and
triumph when he attains them, and sets him up for attainment of next goal. The more
challenging the goal, the greater is the reward generally and the more is the passion for
achieving it.
 Better and appropriate feedback of results directs the employee behaviour and contributes to
higher performance than absence of feedback. Feedback is a means of gaining reputation,
making clarifications and regulating goal difficulties. It helps employees to work with more
involvement and leads to greater job satisfaction.
 Employees’ participation in goal is not always desirable.
 Participation of setting goal, however, makes goal more acceptable and leads to more
involvement.
The above figure summarizes the relationships among goals, motivation, and performance. Our
overall conclusion is that the intention to work toward hard and specific goals is a powerful
motivating force. Under the proper conditions, it can lead to higher performance. However, no
evidence indicates that such goals are associated with increased job satisfaction.

Reinforcement Theory
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.

Job Designing Theory

With changing demographics and a more competitive job market, human resources are more
challenged than ever before to hire, engage, maintain and keep employees happy and motivated. 
Workers want more choice and flexibility in how they approach tasks, for example, more
opportunities to work collaboratively.  They look for more opportunities to change duties, for
exploration, to learn and to advance in their career in a less linear way.    It is not only desirable but
essential for businesses to have motivated employees.  Today many human resource professionals
are looking at how to design jobs, work environments, and cultures that motivate employees.
Job specialization is the earliest approach to job design. Job specialization is efficient but leads to
boredom and monotony. Early alternatives to job specialization include job rotation, job
enlargement, and job enrichment.
Job rotation involves moving employees from job to job at regular intervals. When employees
periodically move to different jobs, the monotonous aspects of job specialization can be relieved.
Job enlargement consists of making a job larger in scope by combining additional task activities
into each job through expansion
Job enrichment is concerned with designing jobs that include a greater variety of work content,
require a higher level of knowledge and skill, give the worker more autonomy and responsibility,
and provide the opportunity for personal growth.
Research shows that there are five job components that increase the motivating potential of a job:
skill variety, task identity, task significance, autonomy, and feedback.
 Skills
o People will be more motivated if they are using a variety of skills in their
positions, rather than one thing repeatedly.
 Tasks
 o Employees are motivated to complete tasks if they identify with them and
have seen them through from start to finish.
o When employees feel that their work is significant to their organization, they
are motivated to do well
 Autonomy
o Employees like to be able to make decisions and have flexibility in their
roles. Most employees will have lowered motivation if they feel they have no
freedom or are being micromanaged.
 Feedback
o Employees need feedback (both positive and negative) in order to stay
motivated.

The quality of life in a total job and work environment is also an important part of a positive and
motivating experience for employees.  The elements included in ‘quality of life’ include open
communication equitable reward system, employees’ job security and satisfaction, participative
management, development of employee skill, etc.  Since a significant amount of one’s life is spent
at work, jobs need to provide satisfaction for sustained interest.  Jobs provide employees not only a
living but also help in achieving other goals such as economic, social, political and cultural.

Equity Theory
J. Stacey Adams’ equity theory is a process model of motivation. It says that the level of reward we
receive, compared to our own sense of our contribution, affects our motivation. The theory
considers the concept of equality and fairness, as well as the importance of comparison to others.
At its core, Adams’ theory says that individuals want a fair relationship between inputs and outputs.
What this means is that they want the benefits (rewards) they receive from work to seem fair in
relation to the inputs (contribution) that they provide. Similarly, they want the rewards that others
receive for their work to be similar to the rewards that they themselves would receive for the same
level of contribution.
Fairness is a key part of Adams' Equity Theory of Motivation People want to work in a just and fair
organization.
Put simply, Adams’ equity theory says that people want fair compensation for inputs across the
working population of which they are members. When this is the case, individuals may remain
motivated. When it ceases to be the case, individuals may cease to be motivated.

Expectancy Theory
The expectancy theory says that individuals have different sets of goals and can be motivated if
they have certain expectations. This theory is about choice, it explains the processes that an
individual undergoes to make choices. In organizational behavior study, expectancy theory is a
motivation theory first proposed by Victor Vroom of the Yale School of Management in 1964.
Motivation, according to Vroom boils down to the decision of how much effort to apply in a
specific task situation. This choice is based on a two-stage sequence of expectations (effort —>
performance and performance —> outcome). First, motivation is affected by an individual's
expectation that a certain level of effort will produce the intended performance goal. For example,
if you do not believe increasing the amount of time you spend studying will significantly raise your
grade on an exam, you probably wilt not study any harder than usual. Motivation also is influenced
by the employee's perceived chances of getting various outcomes as a result of accomplishing his
or her performance goal. Finally, individuals are motivated to the extent that they value the
outcomes received.
Vroom used a mathematical equation to integrate these concepts into a predictive model of
motivational force or strength. For our purposes, however, it is sufficient to define and explain the
three key concepts within Vroom's model—expectancy, instrumentality,  and  valence.
The expectancy theory says that individuals have different sets of goals and can be motivated if
they have certain expectations.
Expectancy Theory Exceptions:
 There is a positive correlation between efforts and performance,
 Favorable performance will result in a desirable reward,
 The reward will satisfy an important need,
 The desire to satisfy the need is strong enough to make the effort worthwhile. Vroom's
Expectancy Theory is based upon the following three beliefs.
Integrating Contemporary Theories of Motivation
Many of the ideas underlying the contemporary motivation theories are complementary, and you’ll
understand better how to motivate people if you see how the theories together presents a model that
integrates much of what we know about motivation. Its basic foundation is the expectancy model.
Let’s work through the model, starting on the left. The individual effort box has an arrow leading
into it. This arrow shows from the individual’s goals. Consistent with goal-setting theory, this
goals-e ort 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 e ort 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

Integrating Contemporary Theories of Motivation

performance is determined not only by the level of individual e ort 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
performance (rather than seniority, personal favorites, or some other criterion) is what 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. A closer look at the model also shows that it considers the achievement-need,
reinforcement, equity, and JCM theories. The high achiever isn’t motivated by the organization’s
assessment of his or her performance or organizational rewards; hence the jump from e ort 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 e orts they made with the
inputs-outcomes ratio of relevant others. If inequities exist, the effort expended may be influenced.
Finally, the JCM is seen in this integrative model. Task characteristics (job design) influence job
motivation at two places. First, jobs designed around they’ve 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 e ort and performance. Second, jobs designed
around they’ve 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.

4 Most Important Contemporary Issues in Motivation

The most important contemporary issues in motivation are as follows:

1. Cross-Cultural Challenges:
Most of the theories were developed in the USA and were meant for the Americans. Maslow’s
needs hierarchy aligns with American culture. Countries which rank high on group dominance, this
theory is not applicable.
Similarly, the achievement motivation is also biased in favor of America. High individual
achievement characteristics are absent in some countries like Chile and Portugal. Equity theory is
also highly US-biased.
The American and European managers working in different cultures must understand the local
cultures. Cultures define needs, behavior, and reinforcements. The Indian managers working
abroad or foreign managers working in India must take notes of it.

2. Motivating Particular Groups of Workers:

Different employees join an organization with different skills, abilities, interests, and attitudes; and
also different needs and expectations. This difference is due to diversity of jobs and diversity of
performers, i.e., diversity.
While men need more autonomy; women are more interested in opportunity to learn, flexi-timings
and opportunity to learn. People want to work for 4 days, but 10 hours a day.
People want to work from homes and telecommuting has made it possible. Job-sharing (two or
more people splitting a full-time job) has also become popular among those who do not want to
work full time.
Among particular groups, we shall talk of professionals, contingent workers and low-skilled
workers. Professionals have more loyalty to the profession and less to the organization they are
serving to.
Professionals get motivated by challenges and the work itself, because they are already well paid.
With regard to contingent workers (part time, contract, ad hoc, leave vacancy, and temporary
workers) they have no loyalty to the organization.
Those who are yet to establish they are motivated by money; but retirees want autonomy and status.
When such contingent workers work with permanent employees, who get more pay and perks, they
are not likely to give their 100%.
With regard to minimum-wage employees, more money cannot be given, because company cannot
afford.
Managers must understand that people are not motivated by money only. For such people, pats on
the back and giving them due recognition shall be motivating techniques.
3. Designing Appropriate Rewards Programs:
Organizations open their account books before their employees, to make them understand the
implications of what they do, how do they do and the impact of their actions on the bottom-line of
the organization. This is called open book management. Should it be the rule or an exception?
The second issue is devising employee recognition programs. Yes, employees need recognition for
better work performance. Even the reinforcement theory calls for rewarding a above par behavior
with recognition immediately. The need for recognition is much greater today.
Due to intense competition for market share, the companies have opted for fixed pay plus payment
related to performance – on the basis of pieces sold, incentive plans, profit sharing, or lump sum
bonus.
This kind of pay system is called as Pay-for-Performance. A recent extension of pay-for-
performance is competency-based compensation.
Many companies have started stock options. These are financial incentives to employees to turn
into owners, so that they work hard to earn more stock options.
4. Work-life Balance:
Work/life practices are those that help employees juggle their responsibilities at work with those
outside of work. It is now widely accepted that external pre-occupations can cause stress,
absenteeism, resignations, altered work performance, and reduced motivation. Work-life balance
has become a big issue for the regenerating productive capacity and concern for the quality time for
the family.
In Indian industries and banks it has been very common for the managers to sit for longer hours
than officially mandated. Don’t they deserve a better balancing of work with family life? It is this
balancing in view that Indian companies too have adopted the flexi-timing, telecommuting
(especially in IT sector), job sharing, etc.
Conclusion
Motivation is the process by which a person’s e orts are energized, directed, and sustained toward
attaining a goal. The energy element is a measure of intensity, drive, or vigor. The high level of e
ort needs to be directed in ways that help the organization achieve its goals. Employees must persist
in putting forth effort to achieve those goals.

Managers must cope with three current motivation issues: managing cross-cultural challenges,
motivating unique groups of workers, and designing appropriate rewards programs. Most
motivational theories were developed in the United States and have a North American bias. Some
theories (Maslow’s needs hierarchy, achievement need, and equity theory) don’t work well for
other cultures. However, the desire for interesting work seems important to all workers, and
Herzberg’s motivator (intrinsic) factors may be universal. Managers face challenges in motivating
unique groups of workers. A diverse workforce is looking for flexibility. Professionals want job
challenge and support and are motivated by the work itself. Contingent workers want the
opportunity to become permanent or to receive skills training. Recognition programs and sincere
appreciation for work done can be used to motivate low-skilled, minimum-wage workers. Open-
book management is when financial statements (the books) are shared with employees who have
been taught what they mean. Employee recognition programs consist of personal attention,
approval, and appreciation for a job well done. Pay-for performance programs are variable
compensation plans that pay employees on the basis of some performance measure.

References
[1] Textbook, class notes & sheet
[2] https://www.simplypsychology.org/maslow.html
[3] https://www.thoughtco.com/maslows-hierarchy-of-needs-4582571
[4] https://worldofwork.io/2019/02/maslows-hierarchy-of-needs/
[5] https://www.leadership-central.com/two-factor-theory.html
[6] https://www.onlineassignmentexpert.com/blog/mcgregors-theory-x-and-theory-y/
[7] https://www.verywellmind.com/theories-of-motivation-2795720
[8] https://www.studyandexam.com/motivation-meaning-types.html
[9] https://jamesclear.com/motivation/
[10] https://businessjargons.com/mcclellands-needs-theory.html
[11] https://businessjargons.com/reinforcement-theory-of-motivation.html
[12] http://www.whatishumanresource.com/expectancy-theory
[13] http://www.whatishumanresource.com/expectancy-theory
[14] https://www.yourarticlelibrary.com/motivation/4-most-important-contemporary-issues-in-
motivation-business-management/5381