11 Psychological and Economic Development Paper - 2

Psychology and Economic
Development
PAPER- 2 UNIT-11
Syllabus:
Achievement motivation and economic development;

Characteristics of entrepreneurial behaviour;
Motivating and training people for entrepreneurship
and economic development; Consumer rights and
consumer awareness, Government policies for
promotion of entrepreneurship among youth
including women entrepreneurs
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BEAUTIFUL MIND IAS STUDY GROUP
2015
P2 Unit 11 - Economic Development
Contents
A. Achievement Motivation and Economic Development ............................................................ 3
A.1 Influences of Achievement Motivation on Behavior .....................................................................3
A.2 Origins of Achievement Motivation and Behavior ........................................................................3
A.3 Motivating People for Achievement: ............................................................................................4
A.4 Characteristics of Persons with High Need for Achievement........................................................6
A.5 Can adults acquire a strong urge to achieve? ...............................................................................8
A.6 The Achievement Syndrome (A) ....................................................................................................9
A.7 Self-Study (S)............................................................................................................................... 10
A.8 Goal – Setting (G)........................................................................................................................ 11
B. Consumer Rights and Consumer awareness .......................................................................... 12
B.1 Why do we need consumer protection? .................................................................................... 12
B.2 Need for consumer protection ................................................................................................... 13
B.3 Consumer movement in India .................................................................................................... 14
B.4 Consumer Awareness ................................................................................................................. 15
C. Characteristics of Entrepreneurial Behavior .......................................................................... 15
D. Women as entrepreneurs..................................................................................................... 17
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A. Achievement Motivation and Economic Development
A.1 Influences of Achievement Motivation on Behavior
Hundreds of studies by McClelland, Atkinson and other psychologists have established the importance
of motivated behavior in achievement situations. What are the short and long – term consequence of
success? An achievement in a psychology test may win self – espe t, a f ie d s app o al o fi a ial
rewards. McClelland regards achievement as a long – term goal which is of great importance to many
individuals. He and his colleagues suggest that it is a general type of motivation which may affect the
performance of a variety of activities by one and the same person; i.e., say anyone who is strongly
achievement – oriented is likely to attempt good performances in more or less everything he does. It is
more probable that the majority of people as they grow older tend to concentrate their achievement
motivation upon one or two main centres such as their occupation and their principal leisure interest.
McClelland also investigated the historical rise and decline of earlier civilized societies with respect to
their economic success. He studied the achievement themes to be found in the literature most
characteristic of those societies at different areas. Thus the economic growth of Greece and especially
of Athens as assessed from their trading activities occurred most obviously during the period 900 – 475
B.C. and a decline from 362 – 100 B.C. In each area the rise and fall in frequency of achievement themes
in the writings of d Aristotle preceded economic growth and decline. A similar study was made of the
periods of economic growth of England from the Elizabethan era followed by a decline in the late
seventeenth and early eighteenth. Changes were preceded by the presence or absence of achievement
themes in the poetry of, for instance, Shakespeare, Milton, Addison, Wordsworth and Shelley.
McClelland found in the third Greek era of economic decline that children who were brought up by
slaves were encouraged dependence rather than self – reliance, hence minimizing achievement
motivation. But excess stress on power and dominance in a society was not associated with economic
development, but rather with political authoritarianism, as in totalitarian states.
A.2 Origins of Achievement Motivation and Behavior

Willia Ja es o side ed the su ess as a atio al disease . Bei g fi st a d ea hi g high positio
are valued accomplishments in our society. More tangible rewards often associated with achievement
are financial gains, power and high status. Achievement motivation may also be influenced by the
tendencies to seek competence and actualize potentialities.
Role of Parents: - Families appear to be influential in establishing needs for academic, intellectual and
career – oriented achievement. The families from where entrepreneurs come stress the importance of
success and independence. They are rewarded by parents for accomplishment, such as becoming
leaders, making friends, attempting difficult tasks by themselves. The parents of individuals, with strong
achie e e t eeds, te d to e e otio all i ol ed i thei hild e s a hie e e t elated
performance. The parents set high standards of excellence and raise their expectations as their children
progress in their independent business.
Role of Teachers: - Teachers promote achievement – related conduct. Teachers make use of feedback
patterns that encourage mastery in achievement situations. If teachers are able to analyze the behavior
of the students and detect special talents they possess, it will be possible for teachers to motivate them
through personal advice, special coaching and encouragement to achieve success in their field of
interest.
Role of Society: - Cross – cultural studies have established the relative importance of achievement
motivation in various societies and ethnic groups.
McClelland attempted to correlate achievement motivation with child – rearing practices. The folk tales
of every North American Indian tribe were analyzed to obtain a score on achievement motivation for
each tribe. As child – rearing practices form the basis for early training to be independent, families of
boys with low achievement motivation tend to emphasize different virtues including politeness,
cleanliness and compliance with authority.
A.3 Motivating People for Achievement:

- To promote achievement motivation an individual should
(1) learn to analyze personal goals and look upon them as challenges;
(2) distinguish between outcomes that could and could not be controlled;
(3) set realistic objective with a good probability of success;
(4) be given an opportunity to gain confidence and improve his skills; and
(5) realize the importance of working through valued goals.
Achievement is under the control of an individual who views success as due to his own ability and effort.
Research by psychologist, Richard de Charms supports the idea that expectations of failure and feelings
of helplessness lie beneath the underachievement of many entrepreneurs. The behavior scientists have
established through substantial amount of research work that in promotion of achievement motivation
training for independence during early formative years by family and school is important.
This aspect was analyzed. Correlation between child – rearing practice and achievement need was
found to be high in different tribes. Another ethnic study was focused on religious groups with different
achievement need scores. In this study, Catholics had lower scores on the average than Protestants or
Jews. Surveys of parents showed that Protestants and Jews expected their children to acquire certain
elements of independence training earlier than Catholic parents did.
It is established by social psychologists that the need for achievement is a culturally determined
variable, i.e., some societies or cultures foster personal achievement and give it a central position within
a complex of interrelated attitudes and values, whereas other may regard high achievement persons
with suspicion and as threats to group solidarity and loyalty. The degree to which the values of a culture
or society are characterized by need for achievement or need for affiliation, will have an important
effect on how the members of the culture perceive themselves and their environment. There is almost
infinite range of variables on which cultures differ. An important source of variation but in a world
composed of societies that are achieving and affluent and those that are economically deprived of
industrialized nations and nations trying to emerge from the restraining bonds of traditionalism,
national and nations trying to emerge from the restraining bonds of traditionalism, national variation in
nAch may prove to be more significantly related to progress and economic survival than almost any
other kind of difference.
McClelland has made an extensive study of the social consequences of achievement motivation. Such
motivation was studied non – culturally by investigating the occurrences of achievement ideas of
imagery in the TAT stories produced by individuals in a number of civilized and more primitive societies
and also their responses to other tests. Further achievement themes were assessed in the folk tales of
primitive societies and in the popular stories in the reading books of children in literate societies.
McClelland reached the conclusion that the economic growth of societies was related to the frequency
with which achievement theme appeared in such material and in particular that a large amount of
a hie e e t i age i hild e s sto ies as asso iated ith the o set of a pe iod of e o o i g o th
developing about 30 years later, i.e., when these children become adults.
A high deg ee of a hie e e t oti atio led to the e pa sio of e t ep e eu al o upatio s.

Entrepreneurs are the business organizes, managers and salesmen who exercise control over the means
of economic production and trade. The characteristic of entrepreneurs as demonstrated to a
considerable extent by experimental investigations are:
1. A liking for taking moderate though not excessive risk;
2. Confidence in the ability to succeed in such tasks;
3. Energetic action directed towards self – achievement;
4. The desire for freedom and individual responsibility,
5. Obvious attainment of individual success;
6. Usually signaled by the acquisition of wealth.
All the above mentioned characterized are associated with strong achievement motivation. Besides the
above mentioned characteristics, entrepreneurs must also possess (McClelland)
1. Skill in organizing;
2. Capacity for long – term planning;
3. Capa it to adapt o e s ehavior flexibility to the desires and needs of others;
4. Treat people as individuals;
5. Independent thinking;
6. Firm connection and insight into environmental forces;
7. Perseverance in spite of obstacles;
8. High achievement motivation is correlated to affiliation motivation and sometimes negatively

correlated with it;
9. Excessive personal motivation may also hinder strong achievement motivation.
It is not clear that possession of a high degree of achievement is as relevant to superior attainment in all
occupations as it appears to be in entrepreneurial occupations. McClelland himself noted that in
a othe t pe of o upatio , that of the u eau ats , a diffe e t fo of a ti it a p edo i ate –
conscious hard work without much hope of reward. In occupations which require high degree of
intrinsic interest, achievement motivation may be of minor importance. The pursuit and furtherance of
the interest is its own reward. If achievement motivation tends to focus attention on the self and the
attainment of self – esteem and the esteem of others, it may impair, rather than reinforce, performance
of interest – centered activities.
To an entrepreneur high degree of achievement motivation need not always lead to long – term goal
directed activity. It could be satisfied by the successful attainment of a series of minor and quite trivial
goals provided that the individual was involved in these. Entrepreneurs may experience achievement
only when, through intelligence, foresight and perseverance, they have built up a large and powerful
concern. But others do so when, without any great foresight or long – term planning, they attain
through their own cunning efforts a continuing series of small successes.
McClelland considered the principal psychological factor involved in the occurrence of high achievement
motivation in entrepreneurs was parental treatment.
Mothers expected their sons to be capable of self – reliant and independent action at an early age;
 They placed relatively few restrictions on their action;
 They strongly discouraged childish dependent behavior;
 Fathe s ea tio s ot do i a t;
 Both parents treated the children with warmth and love.
Children who were rejected by their mothers and also those who were unprotected
 Tended to be low in achievement motivation;
 Responsive to social disapproval and even to lack of obvious approval;
 They were less competent in tasks
A.4 Characteristics of Persons with High Need for Achievement

1. A person with higher Achievement likes to take personal responsibility;
When he undertakes a task, he prefers to have it clearly understood that he will see it through. He
wants the credit for the success of the undertaking, but he is equally prepared to accept the blame
should he fails. The high need Achiever individual, then, is ot a u k passe . Whe he is u su essful,
he does not rail against the unkind subordinates or the government. He likes games of skill; games of
chance do not appeal to him because he feels no control over their outcome.
2. A person with high need Achievement likes to take moderate risks;
He does not like either excessive odd against his success or too easy a task. The reasonable possibility of
failure excites him to increased effort. He wants to stretch, to exert extra effort, to achieve his goal. The
person with low need for achievement prefers an easy task, where his likelihood of succeeding is quite
high, or at the other extreme, he attempts goals capable of definite success and this cautions helps him
to avoid the reasonable chance, of failure. If he cannot be sure of succeeding he want sit clear to all the
world that the task was so difficult that no one could really have been expected to succeed.
A high need Achievement person enjoys a calculated risk where he feels that he is putting himself
against a worthy adversity, be this a human competitor or the conditions of the game.
3. A person with high need Achievement wants to know the results of his efforts;
He wants some measure of how he is doing. He prefers that this be objective, and that it be available
soo afte he has take a tio . Not o l is this feed a k sti ulati g a d satisf i g hi ; he uses it to
adjust and improve his efforts.
We find the high need Achievement person seeking tasks and occupations where this type of feedback
is available, such as in sales or production rather than in industrial relations or research.
4. A high need Achievement person tends to persist in the face of adversity;
He is not easily discouraged by failure. His underlying self – confidence leads him to carry on despite
setbacks. He looks at failures as temporary and as a natural part of the game. He uses knowledge of his
failures also as a learning experience. The achievement motivated individual is not content to leave the
task unfinished. He feels tension so long as there is something yet undone – some step he still might
take to achieve the goal. so he tends to carry on or go back to the unfinished task and put forth extra
effort to carry through to definite conclusion. This is not to say however, that he will continually put his
head against the wall; when it becomes clear that the odds are too great against him, he readily shifts
tactics or even objections. It is noticeable, however, that he is not quick to abandon a task simply
because he has encountered difficulties.
5. A high level Achievement person tends to be innovative;
Once he has determined his goals, he is prepared to try first one approach and then another. We may
say that he is more goal – oriented than technique – oriented by his objective. For him, the method of
choice is the method which will work best not necessarily the usual method. If the common sense
approach does not work, he will invent new ones.
He is not a creative person in the sense that a painter or writer is creative. He is, however, ingenious at
adapting and modifying whatever is at hand to solve the problem or achieve the objective.
6. A high need Achievement person usually demonstrates some interpersonal competence;
He recognizes the importance of interpersonal relationship in achieving most objectives; therefore, he

devotes reasonable effort in developing and maintaining adequate relations with others. Because he is
task – oriented, he selects experts as work colleagues, rather than friends. People with greater need or
affiliation or for power prefer work partners who are friends or who have status.
7. A high need of Achievement motivated individual is oriented towards the future;
While he may not necessarily have a clear idea of his long – term goal, he addresses himself with
maximum effort to his task of the moment, with an underlying feeling that in some way the successful
accomplishment of this task will prepare him for more important activities in the future. Perhaps we can
say that he has some sense of destiny; that is, the belief that he himself is ordained for bigger things.
Accordingly, each current task, no matter how minor, is perceived as important in itself because of its
relationship to his own growth process and preparation for the future. It can be seen that this sense of
destiny would give rise to feelings of self – confidence and the willingness to make decision and take
responsibility.
8. A high eed a hie e e t i di idual ay e said to li e ore i pro ess tha those ith lo
achievement motivation;
He does not require a complete structuring of a situation in order to function. He is better able to
tolerate ambiguity. He always has some project under way with so much what he wants to accomplish
that he is concerned about lack of time to get it all done. That is exemplified by his tendency to describe
time as a galloping – i , flighted o a feeli g thief . The t pi al des iptio of ti e a lo eed
A hie e e t pe so is a uiet otio less o ea .
9. A person with high need Achievement tends to be mobile;
He is active, restless. He is not content to sit quietly. He likes to take the initiative. A pioneer, an
adventurer, he is willing to leave his name and venture into the unknown. He tends to travel
considerably, visit new places. The low need Achievement person tends to remain within his long
established boundaries. The mobility and flexibility of the high need Achievement person is shown in
terms of ideas as well as physical action.
10. A person with high need Achievement is not completely content;
He is not satisfied with Status Quo nor is he satisfied with what he has achieved. His standards are high
and as soon as he has attained one goal, he sets his sights on a new, perhaps more difficult target. He
always has a bit of tension. When the environment does not provide him with work to do he is restless
until he can establish new tasks and set about accomplishing them.
We a ha a te ize the pe so ith high eed fo a hie e e t as a estless, e e geti , st i i g pe so

ho seeks a d e jo s halle ges . Fo hi , life is a easo a le ad e tu e .
A.5 Can adults acquire a strong urge to achieve?

While most psychologists were pessimistic about personality change, a few were very optimistic, and it
was to the optimists we turned for some theoretical guidance as to what we were about to attempt. For
If we were to change motives in adulthood, we had to have atleast some point other than early
childhood. In other words, what is a motive? What would we be trying to change? In connection with
the early work on need Achievement, McClelland, Atkinson, Clark and Lowell attempt an answer to
these questions and while the answer has not been widely accepted, it needs to be briefly summarized
here to provide a theoretical under – planning for our attempts at motive change. It starts with the
proposition that all motives are learned, that not even biological discomforts or pleasure are urges or
d i es u til the a e li ked ith ues that a sig if thei p ese e o a se e. I ti e, luste s of
expectancies or associations grow up around affective experiences, any of which are not connected by
any means with biological needs. These clusters of expectancies are commonly labeled motives. More
formally, motives are affectively toned associative networks arranged in a hierarchy of strength of
importance within a given individual. Obviously the definition fits closely the operation used to measure
a oti es: a effe ti el to ed A hie e e t s o e. Thus, if he ite s sto ies o tai i g a
references of doing something well, doing things better than someone else, or overcoming obstacles to
achieving his goal, he is recorded as having a high need Achievement score, which is simply another way
of saying that he tend to think or feels free to associate with a lot along achievement lines.
Such a fo ulatio at least takes so e of the ste out of the o ept of deep, u de l i g,
u o s ious oti es a d help to defi e o ete goals fo the te h i ues of ha ge. But, what about
the techniques themselves? How could we bring about the changes in outlines? Here the decision was
made at the outset to be electric and systematic in the attempts to develop need Achievement. We
decided to be electric partly because we had no allegiance to any particular school of psychology, but
mostly because of our own fears based on all the arguments given about as that we would not be able
to change motives in adulthood. That is, we decided to leave no stone unturned in searching through
the experimental or clinical literature to find variables that someone had demonstrated to be effective
in producing behavior change. Thus, from the extensive literature on learning, we noted that such
variables as the frequency of reward, the meaningfulness of material learned, and recitation were
important in producing rapid alterations in behavior. From the studies of the effectiveness of
psychotherapy we found that warmth and empathy on the part of the therapist seemed to promote
more rapid improvement. And from the attitude change research literature, we learned that using
reason or prestige to support an argument and affiliating with a new reference group are variables that
are crucial for developing new attitudes. Our purpose, above all was to produce an effect large enough
to be measures. Thus we tried to profit by all that is known about how to facilitate learning or produce
personality or attitude change. For if we could not obtain a substantial effect with all factors taken
singly. Such a strategy also had the practical advantage of putting us in a position of doing our best of
deliver the goods to our course participants, since they were giving as their time and attention to take
part in a largely untried educational experience.
What exactly has gone into these new courses? While each of them requires a large package of training
materials game, paper and pencil exercises, outside reading, tests – it is convenient to summarize the
basic inputs under four main heading: the achievement syndrome (A), self – study (S), goal – setting (G)
and interpersonal supports (I). as we take up each of these classes of inputs in turn, it is well to
remember that their order of impact on the participants is not necessarily the same as the order in
which they are described. They are themes which, if includes at all, are interwoven throughout the
seven to ten days of the course. Even when shorter or longer courses are given – they have varied from
two to twenty – one consecutive days – a given theme may be presented in a greater or lesser and
detail.
A.6 The Achievement Syndrome (A)

Fantasy: - The simplest and most obvious training input is to teach the course participants how to
recognize and produce achievement related fantasies. They first take a form of the Thematic
Apperception Test in which they write imaginative stories about a series of picture. They then learn how
to code what they have written according to the standard system for identifying need Achievement.
That is, the lea he a state e t i the sto efe s to doi g ette to lo g – term involvement
with a work problem on to a unique accomplishment. Furthermore, they learn the specific
subcategories of the scoring system as illustrated in figure. They can in time distinguish between a
desire to accomplish something, an act designed to achieve the goal, and a block either personal or in
the world which stands in the way of success. They ten rewrite the stories at various times, trying to
maximize the number of scoring categories they can introduce. For instance, under the conventions of
the scoring system, it is possible to get a score of 11 for each story so that if they write six stories they
could if fact obtain a maximum score of 66;. Few can do this without considerable practice, but most are
able after a few lessons to get much higher scores than they did at first.
Having written the story, he checked with the scoring system to see how much achievement imagery he
had introduced. Somewhat to his surprise, he discovered, as most course participants do, that he had
produced almost no phrases or sentences that could legitimately be scored for need Achievement. For
i sta e, efe e e to a deadli e does ot ualif as o e ith a sta da d of e elle e o doi g
ette , o does o pleti g the jo . Not e e eeti g the halle ge is e essa il a hie e e t
related, since it may only mean that he wants to finish on time. There a\is no explicit statemen that he
want to do a better ob or to improve the way he is doing his job. Furthermore, much of the story deals
with his guilt over making his family wait. The words and phrases in the story must explicitly concern
with achievement in order to be scored for need achievement. Much time has to be spent with course
participants in detailed discussions of this sort with scoring categories as separate and distinct from
other motive system, such as the need for power or the need for Affiliation.
The purpose of this course input is to give the participant a carefully worked to associative network with
appropriate words or labels to describe all its various aspects. In fact, if the course lasts for appreciable
length of time, participants, commonly tend to use the new language of the coding system, including its
abbreviations such as Ga+, I+, and Bw, to describe not only the stories, but also what happens in their
own lives or in the activities of others. The achievement language become a kind of framework which
can be used to describe almost anything that happens – from what they read in the newspaper during
the course to an example someone gives of how he conducts his business.
It is important to stress that not just the label is taught. The person must be able to produce easily and
often the new associative network itself. It is here that our approach comes close to traditional therapy,
which might be understood as the prolonged and laborious formation of new associative networks to
replace old anxiety – laden ones. Thus, the training involves for more than simple directive slogans such
as Get out the e a d e a a hie e . T i g to i pose a e o st u t o a old set of asso iatio s i
unlikely to be effective unless the whole network of associations itself is revised in detail. The
hypothesis behind this instructional input can be stated as follows:
Proposition A – 1: - The more thoroughly an individual develops and clearly conceptualizes the
associative network defining a motive the more likely he is to develop the motive.
Proposition A – 2: - The more an individual can link the newly developed associative network to
related actions the more the change in both through and action is likely to occur and endure.
Proposition A – 3: - The more an individual can link a newly conceptualized association – action
complex (or motives) to events in his everyday life, the more likely the motive complex is to influence
his thoughts and actions in situations outside the training experience.
A.7 Self-Study (S)

The training inputs so far described can be taught in ways that do not involve the participants very much
at all. That is, the orientation of the teacher can simply be that the goal of the course is to give people
a idea of hat eed A hie e e t is a d ho it i flue es people s eha iou . Ma i di iduals sig up
for the course with little more in mind than satisfying their curiosity about some new idea the
psychologists have come up with. But if the training is to set personality change in motion, the
individual must begin at some point to confront how the achievement syndrome related to his own life,
his main goals and values. There are three distinguishable types of training inputs that are designed to
make this possible.
Proposition S – 1: - The more an individual perceives that developing a motive is required by the
demands of his career and life situation, the more educational attempts designed to develop that
motive are likely to succeed.
Proposition S – 2: - The more an individual can perceive and experience the newly conceptualized
motive as consistent with the ideal self-image, the more the motive is likely to influence his future
thoughts and actions.
Values: - But it is necessary to carry the self-study further. A man is not only his work or career, or his
motives and aspirations. He is in a very real sense, what he values. The sub-culture, the family, the
religious group to which he belongs all shape what he believes is important, and a higher need
Achievement may conflict with some of the values which he has come to hold most dear. Again the
problem is one of seeing how consistent or inconsistent a higher need Achievement is with the super
ordinate associative networks representing values.
Proposition S – 3: - The more an individual can perceive and experience the newly conceptualized
motive as consistent with prevailing cultural values and norms, the more the motive is likely to
influence his future thoughts and notions.
A.8 Goal – Setting (G)
Another set of inputs involves what might be called the dynamics of the training situation. Why do
people take the training course? What do they expect to get out of it? What reasons do they have to
believe that it will produce a change for the better in them? How will they know if the course has
actually had an effect? In the first place, the course have to appeal enough to prospective participants
for them to enroll. They often arrive with rather vague hopes and expectations as to what they will gain.
Some want to satisfy their curiosity, to find out about something new; others go along because their
friends are going, probably all have a value expectation that the course will lend to self-improvement of
some kind. The task of the training then shifts toward helping them to define more precisely what goals
that they will set for themselves and how they will go about measuring progress towards these goals. It
is convenient to divide this goal formulation process into three distinguishable training inputs.
Proposition G – 1: - The more reasons an individual has to believe that he can, will or should develop
a major motive, the more educational attempts designed to develop that motive are likely to succeed.
Work Plan: - As a course proceeds, individual participants are encouraged and helped to refine their
value expectations that their motivation will be increased into something far more specific. What
exactly is the relevance of achievement motivation to their present life situation and how, if they
believe it is relevant, would lead to specifically different activities or outcomes in the next six months to
two years. Toward the end of the course, they are asked to fill out what amounts to an achievement
plan for the next two years. It is patterned after the coding system for need Achievement as outlined in
Figure. In abbreviated form, the following are the questions, participants must answer for themselves:
 What do you want to accomplish in the next two years (Be specific)?
What specific steps (instrumental acts) do you plan to take to achieve that goal?
What blocks in yourself will you have to overcome to achieve that goal?
How do you feel about the possibility of achieving that goal?
How do you feel about the possibility of failing to act?
Where will you go specifically for help in accomplishing your goals?
How strongly do you want to achieve this goal?
How important is this goal to you as compared to other things you want out of life?
The plans are pulled out individually and then are subjected to discussion in groups of four or five, with
occasional help from the group leader. The purpose of this document is in part to formulate for each
participant the practical implications of the course before leaving it, but even more to provide a basis
for the evaluation of his progress in the months after the course. The participants are told that they are
to progress in the months after the course. The participants are told that they are to regard themselves
as i t ai i g fo the e t t o ea s, that the ten to fourteen days of the course itself is obviously too
short to do more than present a new way of acting. They are now to set about changing themselves
along the lines they have chosen and they are to report back approximately every six months on how
well they are progressing toward their goals. The instructors will help them in this self-evaluation by
contacting them approximately every six months and asking for a report on progress. An important part
of this future orientation is that each individual is more or less forced to define in advance the objective
evidence he will try to provide later that he has progressed toward his goal.
Proposition I – I: Changes in motives are more likely to occur the more the setting dramatizes the
importance of self – study and lifts it out of the routine of every life, thereby creating an in – group
feeling among the participants.
In summary, the achievement motivation development courses include the achievement syndrome (A),
self – study (S), goal – setting (G), and interpersonal supports (I).
Under self – study the most common training inputs can be
 case study;
 in basket exercises; and
 management games
Under goal – setting the inputs can be
 identification of a goal in a given effort;
 choice of an interim goal from a series; and
 option of more than one goal in a chain.
Under inter – personal supports inputs can be
 Group discussions;
 Conflict – Situations; and
 Exercises on authority vs responsibility.
B. Consumer Rights and Consumer awareness

B.1 Why do we need consumer protection?
The moment a person comes into this would, he starts consum-ing. He needs clothes, milk, oil, soap,
water, and many more things and these needs keep taking one form or the other all along his life. Thus
we all are consumers in the literal sense of the term. When we approach the market as a consumer, we
expect value for money, i.e., right quality, right quantity, right prices, information about the mode of
use, etc. But there may be instances where a consumer is harassed or cheated.
Consumer protection is important for protecting consumers and instilling confidence in different
institutions within the country. The laws are able to guarantee safety and quality of the products and
services consumers use. A country can only experience a growth in economic activities when consumers
have trust in the producers, so the producers must work to provide the assurance required to win the
trust of consumers.
In the service industry, the consumers interact with the producers regularly when hiring their services.
In this type of situation, there must be assurance that the person a consumer is dealing with is
reputable and legitimate. This creates an opportunity for the existence of middlemen to serve as a link
of trust between the consumer and the producer. Typically, consumer protection policies are important
to protect consumers from cons, misleading advertisements, poor services and unsafe goods.
The goods we buy have become increasingly more complex. Modern technology and mass-marketing
techniques combined with high-pressure salesmanship and sharp advertising can confuse the consumer.
It isn't always possible or practical to examine or test things before buying. This is a pre-packed, ready-
processed age where the gap between producer and purchaser has widened enormously. Very few
traders actually manufacture, pack, distribute and sell their own goods as there is usually a chain of
other people involved increasing the chances of something going wrong, thus we need an effective
system of consumer protection to deal with any problems and, to help prevent them from arising again
in the future.
The basic objectives of consumer movement worldwide are as follows :
 To provide opportunity to the consumers to buy intelligently

 Recognition of reasonable consumer requests
 Protection against fraud, misrepresentation, unsanitary and unjust products
 Participation of consumer representatives in management of aspects affecting consumers
 Promoting consumers interests
B.2 Need for consumer protection

The necessity of adopting measures to protect the interest of consumers arises mainly due to the
helpless position of the consumers. There is no denying fact that the consumers have the basic right to
be protected from the loss or injury caused on account of defective goods and deficiency of services.
But they hardly use their rights due to lack of awareness, ignorance or lethargic attitude. However in
view of the prevailing malpractices and their vulnerability there to, it is necessary to provide them
physical safety, protection of economic interests, access to information, satisfactory product standard,
and statutory measures for redressal of their grievances. The other main arguments in favour of
consumer protection are as follows:
(a) Social Responsibility
The business must be guided by certain social and ethical norms. It is the moral responsibility of the
business to serve the interest of consumers. Keeping in line with this principle, it is the duty of
producers and traders to provide right quality and quantity of goods at fair prices to the consumers.
(b) Increasing Awareness
The consumers are becoming more mature and conscious of their rights against the malpractices by the
business. There are many consumer organisations and associations who are making efforts to build
consumer awareness, taking up their cases at various levels and helping them to enforce their rights.
(c) Consumer Satisfaction
Father of the Nation Mahatma Gandhi had once given a call to manufactures and t ade s to treat your
consumers as god . Co su e s satisfa tio is the ke to success of business. Hence, the businessmen
should take every step to serve the interests of consumers by providing them quality goods and services
at reasonable price.
(d) Principle of Social Justice
Exploitation of consumers is against the directive principles of state policy as laid down in the
Constitution of India. Keeping in line with this principle, it is expected from the manufacturers, traders
and service providers to refrain from malpractices a d take a e of o su e s i te est.
(e) Principle of Trusteeship
According to Gandhian philosophy, manufactures and producers are not the real owners of the
business. Resources are supplied by the society. They are merely the trustees of the resources and,
therefore, they should use such resources effectively for the benefit of the society, which includes the
consumers.
(f) Survival and Growth of Business
The business has to serve consumer interests for their own survival and growth. On account of
globalisation and increased competition, any business organisation which indulges in malpractices or
fails to provide improved services to their ultimate consumer shall find it difficult to continue. Hence,
they must in their own long run interest, become consumer oriented.
B.3 Consumer movement in India

The basic reason for the development of consumer movement in India are different from those in the
West. In western countries, consumer movement was the result of post-industrialisation affluence-for
more information about the merits of competing products and to influence producers especially for new
and more sophisticated products. In India, the basic reasons for the consumers movement have been:
 Shortage of consumer products;

 inflation of early 1970's
 Adulteration and the Black Market.
 Lack of product choices due to lack of development in technology
 Thrust of consumer movement in India has been on availability, purity and price
In India, The Consumer Protection Act, 1986 guarantees the following statutory rights to the consumers-
1. The right to be protected against the marketing of goods and services which are hazardous to life and
property: To simplify this it can be said that it is the duty of the manufacturers and the distributor not to
supply any goods to the consumers which fails to comply with the general safety requirements in all
circumstances. It is important to know that safety standards are published from time to time by the
relevant authorities in relation to many types of consumer goods.
2. The right to be informed about the quality, quantity, potency, purity, standard and price of goods or
services, as the case may be, so as to protect the consumer against unfair trade practices; by simplifying
this right it can be said that consumers are given the right to information. This is intended to save the
consumers from unfair trade practices like false and misleading descriptions about the nature and
quality of goods, exaggerated statements about their power or potency, for example, that the hair oil is
capable of promoting hair growth or preventing hair loss where there is no such power to an
appreciable extent. It may be noted that a victim of unfair trade practices would be able to come before
a Consumer Forum only if he is a consumer within the meaning of the Act. Other buyers would have to
go to the Monopolies Commission under MRTP Act.
3. The right to be assured, wherever possible, access to a variety of goods and services at competitive
prices; For the convenience of the consumers the Central Council has been charged with the
responsibility of bringing about the organization of markets and market practices in such a way that all
dealers are supplied with a variety of goods for the benefit of the consumers and that the goods with a
variety are being offered at competitive prices. It is only then the consumers will have access to variety
and will be able to enjoy the benefit of competitive prices.
4. The right to be heard a d to e assu ed that o su e s i te est ill e ei e due o side ation at
appropriate forums; Right to be heard is not only the the foremost right of consumers it is a principle of
natural justice also. The Central Council is charged with the responsibility of assuring to consumers that
they would be heard as of right by appropriate forums and consumers will receive due attention and
consideration from such forums.
5. The right to seek redressal against unfair trade practices or restrictive trade practices or
unscrupulous exploitation of consumers; The consumers have been given the right to seek redress
against restrictive/unfair trade practices or unscrupulous exploitation. The right can be explained clearly
by following example – where money was deposited in advance for the supply of a car within two
months and the car was actually supplied some time after two months, in such situation retention of
money beyond the period of two months is an unfair trade practice and the consumers can claim proper
interest on the deposit for the period of delay.
6. The right to consumer education. This right is most important right because once the people are
rendered conscious of their power, they may perhaps, feel energized to struggle against exploitation by
manufacturers and traders. The Central Council has been charged with the responsibility to provide to
the people p ope edu atio i te s of thei e edies u de the A t. It a e hoped that people s
awareness is likely to prove a better tool for putting the trade on some level of discipline than tons of
Government controls.
However, o su er s stro gest a d the ost pre ious right, which he keeps to the last, is the refusal
to uy and withdraw the patronage from the seller who always craves for it because, without it, he has
none to sell.
B.4 Consumer Awareness

The guidelines for Consumer Protection as laid down by the United Nations have been incorporated in
the Consumer Protection Act, 1986. Though the consumer movement is slowly gaining ground in our
country, it is still in its infancy as the success of consumer movement mainly depends upon the level of
consumer awareness generated in the country by educating the consumers about their rights and
responsibilities. Within India itself, the level of consumer awareness varies from State to State
depending upon the level of literacy and the social awareness of the people. Educating more than 120
crores people of various categories of population, particularly those in rural areas where consumers are
more susceptible to exploitation, on various subject matters of consumers interests being dealt by
different Ministries / Departments, is a herculean task.
For the 11th plan the scheme has received an allocation of Rs. 409 crores to launch an effective Multi-
Media campaign. The scheme under the brand name of Jago Grahak Jago has carved out a niche for
itself.
C. Characteristics of Entrepreneurial Behavior

The o d e t ep e eu has ee take f o the F e h la guage he e it as o igi all ea t to
designate an organizer of musical or other entertainments. In psychology and economics, an
entrepreneur is an economic leader who possesses the ability to recognize opportunities for successful
introduction of new commodities, new techniques and new sources of supply and to assemble the
necessary plant and equipment, management and occur force and organize them into a running
concern. According to Forbes, an entrepreneurs recognizes the need for a product or service and meets
that need. He or she may create a new device and then raise the capital to start a business firm to
produce the device. Such a person is the spark and the spur behind many new business ventures.
As poi ted out p ofesso Yale B o ze, The p i ate e t ep e eu s is a i dispe sa le i g edie t i
e o o i de elop e t o e the lo g pe iod . The e t ep e eu a e highl i telligent, educated
a d skilled pe so o a e a u edu ated pe so ith spe ial a ilit of s fa to of i tellige e,
a o di g to Spea a s theo , to do good usi ess. The spe ial ualities hi h he should posses a e:
 Energetic
 Resourceful
 Alert to new opportunities
 Able to adjust to changing conditions
 Willing to assume the risks in change and expansion
 Capacity to introduce technical changes and improve the quality of the product
 Capacity to expand the scale of operation and undertake allied pursuit and increase to profits.
According to Professor Fritz Redlich, the role of the entrepreneur can be divided into the (a) capitalist
(b) manager (c) entrepreneur. The entrepreneur supplies funds, and other resources, supervises and
coordinates productive resources and plans, innovates and takes ultimate decisions. In a small
enterprise these functions may be performed by the entrepreneur himself. He has his property tied up
in his concern which is exposed to the risks of business. He participates fully and often constantly in the
a tual p odu tio p o ess. A o di g to P ofesso Hoselitz, The hief ha a te isti of a s all i dust
entrepreneur is not so much his adventure quality nor his motivation to make profit but his capacity to
lead other men in a common undertaking and his inclination to introduce innovations in the early stages
of industrialization. The overwhelming bulk of these innovations are of a technological nature requiring
the di e t a d i ediate pa ti ipatio of the e t ep e eu .
In modern organization the entrepreneurship is vested with different persons. The shareholders of the
company are the capitalists, the managerial function is performed by a number of persons who are
specialists in their respective fields, such as the sales manager, purchase manager, production manager,
personnel manager and so on. In underdeveloped countries there are public enterprises which are
controlled and managed by the State. The capital is provided by the government. The mangers for
different departments are drawn from various fields of specialization and the entrepreneurial decisions
are taken by the managers and the party in power.
Achievement and performance – Experiments and research findings have proved the significant
difference in the performance level of high and low need achievement groups of entrepreneurs.
According to Atkinson, relationship between need achievement and performance is maximized in an
entrepreneur when a sense of achievement is the only real incentive for performance. When other
incentives are offered and other motives are engaged in performance, the relationship between
measure of need achievement and performance is greatly reduced due to the influence of other
incentives. This does not mean that need for achievement is not aroused. It only means that when other
motives like affiliation, money, status, etc., are also aroused in the same performance the simple
relationship between strength of achievement motivation and performance is confounded in unknown
ways.
Need for achievement is a key factor in accounting for the behavior of entrepreneurs, particularly
business entrepreneurs who play a large part in determining the extent of economic development of a
country. One of the striking characteristics of such entrepreneurs is their willingness to take calculated
risks to innovate ways that have reasonable chances of success. In an extremely safe undertaking, at
which any one can succeed, the entrepreneurs with high need achievement can get little achievement
satisfaction out of accomplishing his objectives. In an extremely speculative one, on the other hand, he
is not only certain to frustrate his achievement aspirations, he also may feel that if he should, by some
outside chance succeed, his success could not be attributed to his own personal effort but to luck or
circumstances beyond his control.
Atkinson found that female entrepreneurs with high need for achievement tend to perform somewhat
better at longer odds, where the chances of success are 1 out of 3 than those with low need
achievement.
D. Women as entrepreneurs
IT IS ESTIMATED that women entrepreneurs presently comprise about 10% of the total number of
entrepreneurs in India, with the percentage growing every year. If the prevailing trends continue, it is
likely that in another five years, women will comprise 20% of the entrepreneurial force. With corporates
eager to associate and work with women-owned businesses, and a host of banks and non-governmental
organisations keen to help them get going, there has rarely been a better time for women with zeal and
creativity to start their own business.
Endowed with the famous female intuition that helps them make the right choices even in situations
where experience and logic fail, women have innate flair for entrepreneurship. Although men and
women may be motivated by different goals and expectations (In her book, When Money Isn't Enough,
Connie Glaser reports that male entrepreneurs are motivated by the potential to earn lots of money,
while women start their own companies because they seek greater control over their personal and
professional lives.) women entrepreneurs are just as competent, if not better, than their male
counterparts.
Women are more likely than men to admit when they do not know something and ask for help. They
are natural networkers and relationship builders, forging powerful bonds and nurturing relationships
with clients and employees alike. They are also more inclined to seek out mentors and develop
supportive teams. In business this translates into establishing rapport with clients and providing great
customer service. This perhaps is the reason why many women tend to launch businesses that are client
based or service-oriented.
Sometimes, however, a lack of training and prior experience can render women entrepreneurs
susceptible to a number of pitfalls. The following guidelines are aimed at helping women entrepreneurs
cross some of the typical pitfalls that may crop up on their path to success:
Don't undervalue your abilities. Women typically tend to give away too much and charge too little. This
is a common phenomenon in service-based industries where they may charge by the hour instead of
charging a fee on the merit of knowledge or service rendered. Adopting value-based charges and
charging per project (not on weekly or monthly basis), will help women entrepreneurs gain the actual
worth of the services rendered.
Learn to juggle family with business. Unlike men, it is difficult for women to completely ignore family
obligations when pursuing business, and they can quickly lose sight of their desire to have a balanced
life in the face of a demanding new business. It is important to sustain a personal life and balance family
obligations with professional ones, if they are to be successful and happy.
Women also need to be twice as persistent and assertive to make their presence felt in a predominantly
male business world. Network, but in a way you feel comfortable with. Establish limits and do make
sure that you are well within your comfort zone when networking with others.
Do not forget you are running a business. Piling on work/life benefits will not do anyone any good if
doing so cuts too deeply into the company's bottom line. You have to learn to be attentive to people's
needs and still run a profitable business. Women typically fight shy of self-endorsement. Do not be
afraid to promote yourself.
Remember, if you want a thriving business you must market yourself and take credit for your
achievements. If your marketing is shoddy no one will know what you have to offer Though sidelined as
the `weaker sex' for long, with encouragement, support and a conducive environment, woman
entrepreneurs are fast becoming a force to reckon with in the business world.

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Psychology and Economic

Achievement motivation and economic development;

A.2 Origins of Achievement Motivation and Behavior

A.3 Motivating People for Achievement:

A high deg ee of a hie e e t oti atio led to the e pa sio of e t ep e eu al o upatio s.

1. A liking for taking moderate though not excessive risk;

2. Confidence in the ability to succeed in such tasks;

3. Energetic action directed towards self – achievement;

4. The desire for freedom and individual responsibility,

5. Obvious attainment of individual success;

6. Usually signaled by the acquisition of wealth.

2. Capacity for long – term planning;

3. Capa it to adapt o e s ehavior flexibility to the desires and needs of others;

4. Treat people as individuals;

6. Firm connection and insight into environmental forces;

7. Perseverance in spite of obstacles;

8. High achievement motivation is correlated to affiliation motivation and sometimes negatively

9. Excessive personal motivation may also hinder strong achievement motivation.

 They placed relatively few restrictions on their action;

 They strongly discouraged childish dependent behavior;

 Both parents treated the children with warmth and love.

 Tended to be low in achievement motivation;

 Responsive to social disapproval and even to lack of obvious approval;

 They were less competent in tasks

A.4 Characteristics of Persons with High Need for Achievement

2. A person with high need Achievement likes to take moderate risks;

5. A high level Achievement person tends to be innovative;

6. A high need Achievement person usually demonstrates some interpersonal competence;

He recognizes the importance of interpersonal relationship in achieving most objectives; therefore, he

7. A high need of Achievement motivated individual is oriented towards the future;

9. A person with high need Achievement tends to be mobile;

10. A person with high need Achievement is not completely content;

We a ha a te ize the pe so ith high eed fo a hie e e t as a estless, e e geti , st i i g pe so

A.5 Can adults acquire a strong urge to achieve?

A.6 The Achievement Syndrome (A)

A.7 Self-Study (S)

How do you feel about the possibility of achieving that goal?

How do you feel about the possibility of failing to act?

Where will you go specifically for help in accomplishing your goals?

How strongly do you want to achieve this goal?

Under self – study the most common training inputs can be

 in basket exercises; and

Under goal – setting the inputs can be

 identification of a goal in a given effort;

 choice of an interim goal from a series; and

 option of more than one goal in a chain.

Under inter – personal supports inputs can be

 Conflict – Situations; and

 Exercises on authority vs responsibility.

B. Consumer Rights and Consumer awareness

The basic objectives of consumer movement worldwide are as follows :

 To provide opportunity to the consumers to buy intelligently

B.2 Need for consumer protection

(a) Social Responsibility

(b) Increasing Awareness

(c) Consumer Satisfaction

(d) Principle of Social Justice

(f) Survival and Growth of Business

B.3 Consumer movement in India

 Shortage of consumer products;

B.4 Consumer Awareness

C. Characteristics of Entrepreneurial Behavior