24.

The basic task ot a

manager 1s to
usiness Managema
ndinates for the attainment of organisational maximu
secure
mance
employees depends mainly on their (a) ability to objectives, The e irom
Ability is functic of
education and perform, and wwance f
a
perto upon the level of
perto (b) willingne
depends motivation. Thus, training. Willingness to perfrtor
In
In order to motivate
shir needs and
motiv his Performance=Ability
subordinates, a manager Motivation
tion
aspirations. Human behaviour
Employees feel motivated when their
must understand
is governed and satisy
by needs and
result of working tor the needs and
expectations are satisfieddesires.
enterprise. as a

24.1. MEANING OF
lo motivate means "to
MOTIVATION
provide
inner state that prompts or inciteswith
the
a motive, to
impel or incite". Motive is an
Of persons needs and hence thev are individualandto action. Motives are expressions
personal internal. Motives and needs are
Wys of behaviour. They start and 'maintain activity. Motives give direction to
human behaviour
and
because thev are directed towards certain g0als. Vioves
arouse
energise a person's activities.
vIOTvation may be defined as the process of simulating someone to adopt a
desired Course of action.
hard for the
In order tointensify the willingness of a person to work
achievement of organisational objectives, his motives must be satisfied
Dy oftering incentives. An incentive is something an individual perceives as helpfil
tOwards achieving his goal. Incerntives exist to satisfy human needs. Robert Dubin
has defined motivation as "something that moves the person to action and continues
him in the course of action already initiated.
The process of motivation begins with needs of a person. Need represents the
lack or absence of something within the organism. Unsatisfied need results in
tension within an individual. In order to satisfy his need and overcome tension, he
engages in some action. If he is successful in his attempt, his need is satisfied and
new needs will emerge. But it he fails, he may adopt a different course of action
to satisfy his need.

24.2. NATURE OF MOTIVATION

On the basis of the above description, the following characteristics of motioation can
be identified:
1. Motivation is a psychological concept. It is based on human needs which
generate within an individual. Needs are feelings in the mind of a person
that he lacks certain things. Such feelings influence the behaviour and
activities of the individual.
2. Motivation is total, not piece-meal. A person cannot be motivated in parts
An employee is an indivisible unit and his needs are interrelated. He cannot
be motivated by fulfilling some of his needs partly.
3. Motivation is a continuous process. It is not a time-bound programme or
a touch-and-goaffair. Human needs are infinite. As soon as one need is
satisfied new ones arise. In the words of McGregor, "Man is a wanting
animal, as soon as one of his needs is satistied another appears in its place.
 iesatim and Morale

24.3
is process in unending Satisfaction of one need gives
and the process goes on. feeling of another
ivation
Mo causes goal-directed behaviour. A
av that he can satisty his goals or needs. A person behaves in such a
will work so
ihe feels his actions are fulfilling his strongly feltperson
needs. He
long as
activity and will lose interest will not pursue
in his work, if he
satistying his needs. feels that it is not

5. Motivation may be financial or non-financial. The form of motivation

depends upon the type of needs. Financial incentives include
allowances, bonus and perquisites. Non-financial incentives consistpay,of
recognition, praise, responsibility, participation in decision-making,
challenging job, etc.
Motivation is a complex process. There is no universal theory or approach
to motivation. Moreover, individuals differ in what motivates them.
Therefore, a manager has to analyse and understand variety of needs and
has to use variety of rewards to satisfy them. He should not expect overnight
results.

24.3. IMPORTANCE OF MOTIVATION

Motivation is one of the most crucial factors that determine the efficiency and
effectiveness of an organisation. All organisational facilities will remain useless
unless people are motivated to utilise these facilities in a productive manner.
Motivation is an integral part of management process and every manager must
motivate his subordinates to create in them the will to work. High motivation
provides the following advantages:
1. Higher efficiency Motivation is an effective instrument in the hands of
management to maximise efficiency of operations. A worker may be very competent
but no activity can take place until the individual is willing to pertorm that activity.
What employees do depends largely on how much and why they want to do.
Motivated employees give greater performance than demotivated ones.
2.Optimum utilisation of resources. Motivation inspires employees to make best
possible use of different factors of production. They work whole-heartedly to apply
theirabilities and potential in minimising waste and cost. The enterprise can make
maximum use of its physical and financial resources. Motivation has a pervasive
on the enterprise. It is an
essential element of direction.
influence
Higher motivation
3. Reduction in labour turnover.satistaction job satisfaction of
leads to
make employees loyal and committed
Workers. Opportunities for need
labour absenteeism and turnover are low.
to the organisation. As a result
4. Betterindustrial relations. productivity in turn results in higher
Increased labour
interests
Motivational schemes create integration of individual
Wages for employees.
There arises a sense of belonging and mutual
with organisational objectives.
Motivation will foster team spirit among workers. This
cooperation at all levels. and
between
and create better relations management
will reduce labour unrest
 24.4
financial ar
workers.
An enterprise
that offers
abundant

et. Therefore, itcan non-finane

5 Easier
selection. in the
reputation
labour market
v a c a n c i e s . Its public
imagei easily attract
is mproved
incentives enjoys various

for tilling
to reduce resistance
persons to
competent
change. High
motivation helps ange. An
with environmental
6. Facilitates
has to
incorporate
changes to cope
i n t r o d u c e and
implement changes
employees accept,
organisation
motivated
Properly effective.
the organisation
keeping OVERVIEW
MOTIVATIONAL
PROCESS: AN
24.4. human needs and incentisw.
interaction between
Motivation is the result
of an
i n c e n t i v e s lead to the
satisfaction'of L
when available his
motivated motivation are deserib
person feels in the prOcess of scribed
or needs.
The various steps
motives
below: are the starting point in tho
or motives
of a person
1. Awareness of Need. Needs realisation of certaingoala
directed towards the
Motives are
motivational process. individuals. This behaviour leads to
the behaviour of
which in turn determine awareness of unsatisfied needs creates
behaviour. In other words,
goal-directed
tension in the mind of person.
a

tension and to satisfy his needs, the

In order to relieve his
2. Search for Action. certain goals and makes an
suitable action. He develops
individual looks for a
them.
attempt to achieve his need
case the
individual is successful in his attempt,
In
. Fulfilmentof Need. unsuccessful, the need remains
and he feels motivated. If the attempt is
is satisfied
himself in search for a n e w action. He will
unsatisfied and the individual engages behaviour.
or defensive
himselt in constructive
engage
some other need will emerge
Need. Once one need is fulfilled,
4. Discovery of New continues to work within an
individual will set a new goal. This process
and the
individual because human
needs are unlimited.

Discovery of new need

Fulfilment of need
Awareness Search
of for
need action Non-fulfilment of need

Revaluation
Fig.24.1 Motivational Process: An Overview.

24.5. FINANCIAL AND NON-FINANCIAL INCENTIVES

Incentives are the inducements which are offered to employees in order to direct
their behaviour towards enterprise objectives. These are the objects perceived to
satisfy needs. Incentives are attention-getting and effort-producing mechanismns.
 sdetitatioT a1d NMorale

entives can
oadly be classified into
n o n pecuniar 24.5
and (1) incentives. two
pec laries, nancial incentives are
uniary or finan categories-() pecuniary incentives,
wa niary bonus, payments directly or
of Pes profit-sharing,
incentives. retirement indirectly
refer to all suchFinancial incentives canpay, vacation pay, in
etc. money
emance to earn higherplans which induce anbe of two types: (a) examples
perfo
are

towan's plann,
Emerson' s financial rewards. individual to achieveIndividual
camples
plan are exam efficiency plan, Gantt's bonus
of individual
Piece rate
wages, Halsey'shigher
aring, production
shari plan,
incentives. (b) Group plan and Taylor's differential
collectively. bonus, incentive
pernsion plan, etc. wherein plans include profit
Non-finan cial incentives employees are rewarded
than financial rewards. provide
psychological and
challengng job, team spirit,Status, responsibility, recognition
emotional satisfaction rather
of work, job
incentives. These incentivescompetition, participation security
very important for examples of non-financial
are
psycholOgical needs which cannot are

inducements which serve as both be satisfied by moneythealone. satisfaction of socio

There
promotion results in increase in financial and non-financial incentives. For
certain
are

Some of the pay as well

as status of example
popular non-financial incentives individual.
an
i) Challenging Work. are described
below:
Job is great a
ability of the job holder, it motivating force. When the job streches the
work hard. A provides job satisfaction and
pleasant and interesting job allows the inspires the employee to
instinctsa nd creates interest
in the work. employee
Job enrichment can be satisfy
to his natural
job more challenging and used to make the
(1i) Recognition and Status.
interesting
is called Acknowledgement and
recognition. It ins pires employees toappreciation of good
performance
maintain and even
performance. Status means formal
position in the organisation. improve
by satisfying their ego needs. However, Recognition
status motivate people and
status should be closely related to the recognition and
abilities, performance and aspirations of
employees.
(1ii) Job Security. Employees want economic
security. Job security ensures
regular
income in future and relieves them of worry. Job security is important in India due
to widespread unemployment. However, employees may become complacent when
they know that their services cannot be terminated.
(iv) Responsibility. Most people preter independence and responsibility in place of
routine and monotonous jobs. Responsibility satisfies natural desire and inspires
to
people put greater efforts.
them to work hard
(w) Competition. Healthy competition among employees inspires
can be a source of motivation
and improve their pertormance. fiowever, competition
and rewarded.
only when better pertormance rec0gnised
is

the employees want to grow in their careers.

(vi) Opportunity for Growth. Most of for
can motivate its employees by providing them opportunities
An organisation
and promotion.
inservice training
participation in management refers to the active
(oii) Participation. Employee
or their representatives in the process of decision-making.
involvement of workers
 ones Minnge
24.6
ie
itment ana
necure cooperation,
a c i o n lo
initiatel of organisational
It is a management
ofworkers
towards he acCOmpliahment

particijation raning from T

w fvo oale Ther
inlormalio
contribution
of enmployee
degreen
areseveral grades or
sharing to self-control,
in manageent I8
a hunianistic philos
Employee participation ACcording to this philosoulw
y and it
with the modern thinking ry workeis
consistent
lor
c o n t r i b u t i o n in
lerms of nd suggestions concemin
has some potential Therefore, he deserves to
of the organisation
the functioning
his ideas.
opportunity to express
MOTIVATOR
24.6. MONEY AS
A
very important motivator. Econod,
a
Traditionally, money has been considered
and many managers stress upon
the role ol ioney motivation, This beea
in is

money is an essential instrument for satisfying primary or basic needs of foo

clothing, shelter, etc. Money also has got a symbolic appeal. It often stands for
ood,
prestige and power, it, a status symbol. It also helps to fulfil higher values 'of lk
g , charity, education, public health, social service, etc. It provides strength to
ife,
serve the poor and help build the nation, For example, Mother Teresa needs money
not for her own sake but for serving the destitute. Trade unions all over the worlá
carry their struggle on the bas1s of monetary reward, Researh findings indicate
t if money is visibly tied to pertormance, it does motivate effort towards
performance. Thus, money has an appeal to diferent persons in different situations
Recent research discounts the role of money in motivation and behavioural
scientists do not consider money as a significant motivator. In actual practice the
role of money as motivator depends upon the following factors:
() Economic conditions influence the importance of money motivation. In
developing countries the levels of living are generally low and, therefore
money continues to be a motivating force for many persons. But money is
not important after a certain level. For example, money is not a significant
motivator for senior executives who have fulfilled their lower level needs,
(ti) Money fails to act as a motivator when the link between performance and
reward is not clear. Similarly merit increases fail to be motivators when the
reward structure is conflicting or employees do not trust the incentive
scheme. If pay and satistaction are to be high, pay raises must be according
to job demands in such a way that each perceived increment in a job
demand factor will lead to increased pay
(in) When performance ratings are biased financial rewards given on the basis
of such ratings will not act as motivators. Employees feel they are at the
mercy of their supervisor and focus more on pleasing the boss than the
performance.
(io) Another important determinant of the effectiveness of money motivation is
theequity with which the reward for performance is distributed. If an
employeesfeels that others who are performing at his level are paid higher
amounts, they consider their own reward as inequitable. Similarly, an
employee may consider the reward as untair relative to his performance.
In such cases the financial reward poses a threat to his self-esteem. People
 24.7
ithconcerned
are
the not only with absolute amount
wit
relationship
can motivate between their own pay
of momey paid to them but
() Money only when the and pay of others.
relative to a
prospective payment is large
performanceperson
theyit
s income.
feel
that additional Employees
try to earn money enough
will
trade-off between extra effort money is worth by higher
enough. and leisure and reward the effort. There is
Social attitude towards wealth should be adequate
actively sought in given culture.also determines
a
whether money
of wealth looked upon as an
is In some will be
societies
evil. For such the
personal
act as motivator.
a
cultural values acquisition
(ni)
i The money cannot
(
If the
promptness in
reward is distributing reward also
delayed its
motivational influences the role of
(oii) Another factor value is money.
marginal utility of money. considerably
is the
variables. The first objective reduced.
It is function a
variable is
already possesses or earns. The second the of two
which an individual attaches
quantity of money a person
subjective variable is the
The following steps can be taken toto money. importance
motivator: the improve effectiveness of money as a
1. Money should not be considered as the
secondary reinforcer. primary motivator but as a
2. Merit increases should be based
evaluation systems.
on reliable and valid
performance
3. The amount of
money should be directly related to performance.
4. Pay and other financial rewards should be so
perceive them as equitable in designed that employe
5.
comparison those of others.
to
Money should be adequate keeping in view the status and
of the employee. living standard
6. Money tends to be a potent motivator when it is
used to reduce tension
and worry.
7. Monetary rewards should be distributed
due.
immediately after they become
8. Financial incentives should be supported by
challenging work assignments
and favourable organisational climate.
According to B.E. Skinner, "How
pleasant work conditions are, how easy or awkward a job is, how good or
bad tools are, many things of that sort make an enormous difference in
what worker will do for what he receives."

24.7. CARROT AND STICK APPROACH TO MOTIVATION

This approach is based on the old belief that the best way a person works is to put
a reward (effort) before him or to hold out the threat of punishment (stick). Carrot
is the reward for working and stick is the punishment for not working Under
rewards
carrot and stick approach employees who perform the task well are given
work
in the form of bonus, pay riSe, promotion, etc. While the employees avoiding
of demotion,
(showing undesired behaviour) are given punishment in the form
 Bushess Manaye
24.8
job, ete, Eruleeol
Managem
from service,
transfer toan unpleasant
because
yers vho sdo
termination seeks employment
believe that a person
this approach the needs of himself ard
of which he
can satsty
his fam
money with the help perform hWs job satisfactorily he will loee L

He knows that if he does

pushes people
not
ve behaviour or to avoid negative
to engage in positive tive b yo.SMik
behavioE
theretore, a reward and punishment
Carrot andstick aPproach is, ystem' for
motivating employees.
upon the importance of
associates stressed l rcss

EW. Taylor and his incentive plans of wage payment, Unde in

evolved
motivating workers. They these
more than the standard output were give
plans workers who produced vards
than the standard were punished in the
the form of
while those producing less
cut. This system became very popular in the Unite States and in the Unitage

Kingdom.
Carrot and stick approach began to fail after some time. Workers became wll
organised into powerful trade unions who resisted fines, suspension, dismissal ard
other forms of punishment. Governments in many democratic countries enacted
laws to protect the interests of the working class. As a result threat of punishme
lostmuch of its force. Carrot and stick approach helps to intluence only the internal
environment of an organisation. But motivation is affected by many other (externall
forces. The following steps may be taken to make the carrot and stick approach
more effective:
1. Reward (carrot) is a more effective motivator when it is directly linked
with performance. Accurate and unbiased appraisal of performance.
consistent (equitable) reward structure and prompt payment of reward are
also helpful in improving the effect of reward.
2. Punishment (stick) is more effective if applied at the time when the
undesirable behaviour actually occurs.
3. Punishment should be administered with extreme care so that it does not
become a reward for undesirable behaviour.
4. Punishment should be used to modify the behaviour and to force the person
to adopt desirable behaviour which is rewarded.
5. The mixture of reward and punishment should be judiciously applied to
reinforce desirable behaviour patterns.

24.8. JOB ENRICHMENT

Job is not merely a means of income and livelihood. It is als0 a source of mental
satisfaction and growth. If the job is inherently satistying and rewarding it is the
best motivator. Modern technology and specialisation have rendered most jobs
narrow, dull and monotonous. Very few jobs provide enough opportunities for
satisfaction, recognition, achievement, responsibility and advancement. Therefore,
itis necessary to make jobs more interesting and satisfying.
Jobenrichment is the philosophy that involves making jobs nmore
interes ting
and satisfying to employees.
A job is rich if it is properly designed and it provides a meaningful relationship
between the job requirements and the employee's qualifications. The philosophy of
 Motteto

24.9
chment consists of several approaches, such as
jobesign, work retorm, job sharing, autonomous job work
rotation, job enlargement,
ging an employee's tasks periodically so as to group, etc. Job rotation
o h

lies changir
overcome the feeling of
jmom and monotony by providing variety of tasks.
hosion of the job by adding more tasks to the For
eNpansic
Job enlargement is a horizontal
job.
earlier only booking orders may also be given the taskexample, salesman who
a

of delivering the
the other hand, job enrichment is vertical product.
expansion
the employee for planning and controlling his own of the job by giving
authority
to
ab restructuring involves introduction of new performance. Job redesign or
she job more signiticant and challenging. Worktechnology
and skill variety to make
reform means improvement in work
methods and procedures. Job sharing involves redistribution of the volume of work
sO as to reduce working hours, increase the number
of holidays and introduce
flexible working periods.
Job enrichment includes the following main elements: (a) meaningful job
terms of a distinct task identity, skill variety and significance, (6) autonomy and in
responsibility so that the job holder has the freedom to make decisions concerning
its performance and is responsible for the same, (c) regular feedback to the job
holder on his performance.
Job enrichment is an effective technique of increasing employee motivation
and performance. However, many employee do not want greater autonomy and
responsibility. Supervisors may feel that their power and prestige is being
undermined when greater authority is granted to workers for job enrichment. In
the short run, workers take time to adjust to changes in the job. Therefore, job
enrichment is a long-term technique of improving the motivation and morale ot

employees. There is for

greater scope enrichment in case of managerial and
job
protessional jobs.
Job enrichment is a non-financial technique of motivation. It is an outgrowth
on the assumption that
of Herzberg's two-factor theory of motivation. It is based
effective motivators of behaviour. In
the factors surrounding the work are not
itself must provide opportunities for
order to motivate employees the job
advancement and growth. The nature of
achievement, recognition, responsibility,
line, job simplification) has made
modern technology (division of labour, assembly satistaction and, therefore,
monotonous. Workers do not get job
the jobs dull and and fringe benefits. In order to
motivated despite tair wages
they are not fully an experiment in job
the lBM Corporation of USA made
o v e r c o m e these problems,
the job and allow an operator
to sharpen his
decided to enlarge
enlargement. It was and to inspect the output.
As a result there
set up and reset his machine
tool, to satisfaction and there was
in the job. Workers got job
was variety and challenge
improvement
in their performance. The difference
an extensionjob of enlargement technique.
Job enrichment is enrichment lies in the
nature of addition
to the
job
between job enlargement and a horizontal expansion of the job, i.e,
addition of

imvolves of the job

job. Job enlargement hand, job enrichment involves vertical loading
more tasks. On the other and interesting. Job enrichment may be
defined as an
challenging
to make it more
 attempt to design jobs in such a way as to build in the opportunity for acl Nanagement
recognition, responsibility in carrying out a complete task and with t
on his performance. Horizontal loading (job enlargement) does not enri b
Tnen
But job enrichment
involves designing jobs with variety of work
content the task
a high level of knowledge and skill. Itpprovides a
meaningful work that requianres
greater responsibility for planning and controlling his own experience
perform
enrichment requires decentralisation of decision-making authority to t ance. Jo
The task is redefined, restructured and broadened
in and
scope
worker gets the freedom and discretion in scheduling his work. responsibility, ThThe
Advantages
Job enrichment provides the following benefits:
(n Jt makes the job interesting thereby reducing boredom and
(i1) It helps to reduce absenteeism and labour turnover. monotony
(i) It provides job satisfaction to employees by making a
job challenging,
(io) It improves motivation through opportunities for advancement
in the career.
and growth
(o) It ultimately helps to improve productivity and quality of work.
Limitations
In spite of its benefits, job enrichment has been criticised on the following
( Job enrichment is based on the grounds:
assumption that workers want
responsibility. In reality some workers (eg, uneducated persons) more
less responsible jobs with good social interaction. Such may prefer
workers
feelings of inadequacy and fear of failure to job enrichment. may show
(i) Job enrichment may have little value for workers who do
not seek
satisfaction in workplace. Some jobs cannot be enriched
point. beyond a certain
(ii) Job enrichment is basically limited to
and professional jobs there is little scopenon-managerial
for applying
jobs. In managerial
jobs can be enriched more by techniques like MBO, job enrichment. Such
management and delegation of authority. participative
(io) When managers use their own scale of values of
workers may resist job enrichment. responsibility and challenge,
enrichment leads to resistance from Similarly
the tendency to impose job
employees.
() Job enrichment may have negative effects in the short run.
time to adjust to the challenging demands made Workers take
enrichment helps individuals grow slowly and by job enrichment. Job
an individual steadily. Job enrichment is
theory of work motivation. Its success depends
how work groups implement it. Trade union ultimately on
not
(oi) Supervisors may feel that their power and may is accept it.
prestige being undermined
when greater authority is delegated to workers.
Thus, job enrichment is not panacea tor motivational
substitute for good management. Successtul implementation problems and it is not a
of job enrichment
requires a supportive climate for innovation and change.
 Table 24.1: Job 24.11
Enrichment Vs. Job
P o i n t o f LDference
Job Enrichment Enlargement
Nature Vertical Job Enlargement
expansion of
increasing responsibilityjob and
by Horizontal expansion of job by
authority. adding more tasks
Purpose To make the job more To reduce
challenging and satisfying. from routine monotony arising
Skills required and
Requires development and Does not
repetitive task.
utilisation of
higher require acquisition and
innovation and initiative skills, utilisation of higher skills.
part of employees.
on the
4. Control
Permits self-direction and
control. Requires direction and control
from the superiors.

THEORIES OF MOTIVATION
For a long period of
time, experts have been
people to work. Several theories and models trying to find out what
motivates
have been
developed to explain what
factors prompt an individual to work.
Some experts assume a direct reiationship
between effort and reward.
They are of the view that every individual seeks to
maximise his self-interest. He is
primarily motivated by economic incentives.Other
experts refute this assumption of
economic man. They believe that an individual
is motivated by social needs like
love, affection, sense of belonging, etc. Some
experts Visualise self actualisation model under which job satisfaction and feeling
of achievement are considered to be the
motivating factors. A few of these theories
of motivation are explained here.

24.9. MASLOW'S NEED HIERARCHY THEORY

Abraham H. Maslow developed his theory on the basis of human needs. He was
of the opinion that human behaviour is directed towards the satistaction of needs.
He proposed that human needs can be arranged in a particular order from the
lowest to the highest. Maslow classified all human needs into five categories as
shown in Fig. 24.2. 5
SELF-ACTUALISATION
NEEDS
4
ESTEEM (EGO)
3 NEEDS
SOCIAL
NEEDS
2
SAFETY
NEEDS
1
PHYSIOLOGICAL
NEEDS

Maslow's Hierarchy of Human Needs.

Fig. 24.2
 24.12 Business Manageme
1. Physiological Needs. These needs relate to the survival and mairnt
ment
human life. Therefore, these are the most primary or basic needs and
satisfied before all other needs. Physiological needs include the needs
tenance of
for a must be
eeds for air,
food, sex, rest, clothing, shelter,
etc.
water
2 Safety or Security Needs. Once physiological needs are satisfied to a Teas
level, safety needs emerge and become dominant. These needs imply the neble
self-preservation and economic independence. These are the needs of beineoto
from physical danger, threat and deprivation. People want bodily safety, jobsec
provision for old age, insurance against risks, etc. These needs are particulari
significant where management policies are uncertain and arbitrary. An organisation
can satisfy these needs through pension plan, guarantee of job, medical
insurance plan, etc.
scheme,
3. Social Needs. Man is a social animal. He, therefore, wants association
belonging,
friendship, love and affection. These are the need to seek affiliation and affection
of one's fellow beings. People form informal groups to seek meaningful associations
companionship.
4. Esteem or Ego Needs. These are concerned with awareness of self-importance
and recognition from others. Esteem needs consist of such things as self-confidence,
sell-respect, independence, power, prestige, achievement, praise and status.
5.Selkactualisation Needs. This implies "the desire to become more and more of
what one 15, to become everything that one is capable of becomin8 t involves
self-fulfilment or achieving what one considers to be his mission in life. It urges an
individual to realise his full potential for continued self-development and for being
creative in the broadest sense of the word.
Maslow pointed out that the first three categories (physiological, safety and
social needs) are lower level needs. The remaining two (ego and self-actualisation
needs) are higher order needs. He states that the needs have a definite sequence of
priority. They arise in certain order of preference and not randomly. Safety needs
do not dominate behaviour until physiological needs are satisfied, and so on.
Secondly, man is a wanting animal. He always continues to want something or the
other. He is never satisfied. If one need is satisfied, another takes its place. Thirdly,
once a need is satisfied it ceases to a motivating factor. Thus, if lower level needs
are satisfied, the individual can be motivated only by satisfying his higher level
needs. Man lives by bread alone so long as he is hungry. Fourthly, physiological and
security needs are finite while other needs are sufficiently infinite. Fifthly, Maslow
suggests that the various needs levels are interdependent and overlapping, each
higherlevel need emerging before the lower-level need has been completely satisfied.
Lastly, he points out tat individuals may jumble the order and importance around.

24.9.1. Critical Evaluation of Maslow's Theory

Maslow's need hierarchy serves a useful framework for understanding the relative
strength of human needs. Some research studies support the hypothesis that human
needs follow some hierarchical order But Maslow's theory suffers from several
limitations.First,the need priority model may not apply at all times in all places.
Surveysin some countries have shown that the degree of need satisfaction does not
cording to the need prionty model. For example, workers in Spain and
 24.13
Belgium felt that their esteem needs are better
satisfied than
npeds. APparently, cultural differences account for these their social and security
n
h i

rchy may not follow the sequence suggested

e r a r c variations. Thus, need
sition that one need is satisfied by Maslow.
of doubtful Secondly, the
p r o p o s i t at one time is
time is guided by
behaviour
at a
multiplicity of motives. The validity. Man's
mu
tiple motivation is very comm in practice. at phenomenon of
Thirdly, different levels of needs,
motivation may be differen Fourthly,
in some
to
t he more prominent
that ottharn people need for self-esteem
seems

for creativ love. There are also creative

hom the drive veness seems to be more people in
may always be lower. For example,important.
Who

In some
Jevel of operation a
who
people, the
person
nic unemployment may always be satistied with job has
experienced
security.
de need hierarchy 15 reversed. Fifthly, by splitting human In all such cases
needs into different
categories the theory suggests that motivation can be a
in practice. piecemeal exercise which
is not true

24.10. HERZBERG'S MOTIVATION HYGIENE THEORY

Fredrick Herzberg and his associates conducted research wherein they interviewed
200 engineers and accountants from nine different companies in Pittsburg area of
USA. These executives were asked to recall
specific incidents in their experience
which made them feel either exceptionally good or exceptionally bad about their
jobs. On the basis of their study, Herzberg concluded that there are some job
conditions which operate primarily to dissatisfy employees while other job
conditions operate primarily to build strong motivation and high job
He called these factors hygiene factors and satistaction.
motivating factors respectively.
24.10.1. Hygiene Factors
These factors provide no motivation to employees but the absence of these factors
serves as dissatisfier. These factors are also known as maintenance factors as they
are necessary to maintain a reasonable level of satisfaction among employees. Many
of these factors are traditionally perceived by management as motivators but these
are really more potent as dissatisfiers. These are called 'hygiene factors' because
they support the mental health of employees. Hygiene factors include salary, job
security, personal life, working conditions, company policy and administration,
technical supervision, status, interpersonal relations with superiors, subordinates
ot a job. Rather these are related to
and peers. These factors are not intrinsic part
The presence of these factors helps to
conditions under which a job is performed.
So they have a negative value.
prevent job dissatisfaction.
24.10.2. Motivational Factors
build strong motivation and high job satisfaction. They are
These factors help to related with the job content. Their absence or
These are
also known as satisfiers. factors are achievement
affect the level ot job satistaction. These
decrease will and responsibility.
work itselt, possibility of growth
recognition, advancement, It is
managers have not to focus on hygiene factors.
Herzberg stated that to increase the level of
motivation and
motivational factors
necessary to use Herzbe maintains that the potency of
various factors
erformance ofemployees. themselves. It is also influenced by
the
per
entirely a frunction co the tne tactors individuals may
snot
1 S n o te n t i r e l
e r s o n a l i t ycharacteristicsof individuals. From this viewpoint,
 24.14 Business Management
Busi

seekers and seekers, T

maintenence
be of two kinds
motivation
seekers are motivated primarily by the motivation factors while mainteon
The motivation
with hygiene factors.
ance seekery
are concerned mainly

Table24.2: Hygiene Factors and Motivating Factors

Hygiene Factors Motivational Factors

1. Company policy and administration Achievement

2. Technical supervision 2. Recognition

3. Interpersonal relations with supervisor . Advancement

4 Interpersonal relations with subordinates 4 Work itself

5 Interpersonal relations with peers 5. Possibilities of growth

6. Salary 6 Responsibility
7. Job security
8. Personal life
9. Working conditions
10. Status

24.10.3. Critical Evaluation of Herzberg's Model

Several research studies confirm the findings of Herzberg. But some studies have
revealed that the level of an individual decides whether a particular factor is
motivational or maintenance factor. For example, many of the factors which are
predominantly maintenance factors are positively related with job satisfaction among
lower level employees.

Table 24.3: Maslow Theory Vs. Herzberg Model

Topic Maslow's Need Herzberg s

Hierarchy Two-Factor Theory
1. Relevance To people in society in all Mostly to white-collar and
types of jobs and in retirement professional employees
2. Impact of needs on All needs can motivate Only some intrinsic needs serve
behaviour behaviour as motivators
3. Role of financial Can motivate Is not a key motivator
rewards

4 Perspective Applies to all people and their Is work centered

lives
5 Type of theory Descriptive (what is) Prescriptive (what should be)
6. Formulation In terms of needs In terms of incentives
7 Hierarchy Gives a hierarchy of needs No such
hierarchy
8 Essence of the Unsatisfied needs motivate an Satisfied
needs cause
theory individual performance
 Mottvation and Morale

24.15
dheory has also been criticised on the
1. In reality,iob
following
grounds:
satisfaction and dissatistaction are two
job sati
eingle continuum. Individuals on the opposite points on a
Loth iob content and job environment. The job are affected
by any change in
absence of job
necessarily job dis-satisfaction. It simply means no
satisfaction is not
versa. satisfaction and vice
9 Herzberg's theory is 'method bound'. A number of other
similar study have shown different results. The methods used for
doubtful due to small and validity of the theory is
3. The theory does not attachnon-representative sample.
much significance to
status. These factors exercise pay, job security and
workers particularly in significant influence on job satisfaction of
opportunities are limitedunder-developed countries like India where job
and the standard of
primary needs are not fulfilled people continue toliving is low. When the
be motivated by these
factors.
Table 24 4: Comparison of Maslow's Need Hierarchy and Herzberg's
Motivation-Maintenance Theory
Maslow
Herzberg
Self-realisation needs Motivation factors
Esteem needs
Achievement
Recognition
Work Itself
Responsibility
Advancement
Social needs Maintenance factors
Safety needs Interpersonal Relations
Company Policy & Administration
Salary
Physiological needs Working Conditions
Supervision
Job security

24.11. MCGREGOR'S PARTICIPATION THEORY

Douglas McGregor suggests that while trying to motivate his subordinates a managger
to human behaviour. 1hese assumptions about
makes certain assumptons prealct of
human nature influence the managers actions. McGregor formulated two sets
based on the participation of workers. He
assumptions about human beings
Y.
characterized these two sets of assumptions as Theory X and Theory
Theory X. Theory X is based on the following assumptions:
 agenien
1. People in general have an inherent dislike for work and avoid e
can. They are basically lazy and like to work as little as possible s they
have lack of ambition
2. Most people
3. They try to avoid responsibility
for fear of failure
4. They prefer to be led as they are incapable of directing their own b
behaviour
5. They are inherently self-centred and indifferent to organisational need
6. They are by nature resistant to change They lack creativity and prefer
eds.
maintain status quo.
to
7. They are gullible, not very bright.
In view of these assumptions, it is suggested that most people must be coerced
directed, controlled and threatened with punishment to get therm to put fort
d,
adequate efforts towards the achievement of organisational objectives
These assumptions about human nature are negative or pessirmistic. Managers
who believe these assumptions adopt autocratic leadership and push workers into
performance. They feel that external control and close supervision are most
appropriate for dealing with immature and irresponsible individuals. McGregor
questions this view of human nature as incorrect and describes Theory X as
traditional theory. He developed Theory Y which, according to him, better represents
human behaviour.
Theory Y. Theory Y is based on the following assumptions:
1. The expenditure of physical and mental efforts is as natural as play or rest.
The average human being does not inherently dislike work. Under proper
conditions, work is a source of satisfaction.
2. External control and threat of punishment are not the only means for
bringing about effort towards organisational objectives. Man will exercise
self-control in the service of objectives to which he is committed.
3. Commitment to objectives is a function of the rewards associated with
their achievements. The most significant of such rewards, such as the
satistaction of ego and self-actualisation needs can be the direct product of
efforts directed towards
organisational objectives.
4 Theaverage human learns, under properconditions, not only to.accept but
to seek responsibility. Avoidance of responsibility, lack of ambition and
emphasis on security are generally consequences of experience and not
inherent human characteristics.
5. The capacity to exercise a
relatively high degree of imagination, ingenuity
creativity in the solution ot organisational problems is widely, not
narrowly, distributed in the population.
6. Under the conditions of modern industrial life, the intellectual potentialities
ofthe average human being are only partially utilised.
Theory Yassumptions are opp0site to Theory X assumptions. These assumptions
represent a positive and optimistic view of human nature. The assumptions of
 Mativation and Morale

24.17
sv Y
Theory Y BUKgest
a new
appr0ach to
management.
o0per etween
eration bet
managenent and workers so as toThey lay emphasis on
uim degree of control. Generally no conflict is maximise output with
ninim

anisational goals and individual visible between the

goals. The efforts of the employees which are
best interest are also in the interests of the
in
fechniques likeke job enrichment, organisation. Theory Y has led to
decentralisation and participative managem ement.
Hut these techniqueS require mature, responsible, self-motivated
and self-controlled
olovees. Recent researches in behavioural sciences have
shown that the
autimptions of Theory Y are more valid than those of Theory
X.

Table 24.5: Comparison between Theory X and Theory Y

Theory X
Theory Y
. Inherent dislike for work Work is natural like rest or play
Unambitious and prefer to be directed by Ambitious and capable of directing their own
others behaviour.
3. Avoid responsibility Accept and seek responsibility under proper
conditions.
4. Lack creativity and resist change Creativity widely spread.
5. Focus on physiological and safety needs Both lower level and higher order needs like
to motivate workers social-esteem and self-actualisation are
50urces of motivation

6. External control and close supervision Self-direction and self-control

required to achieve organisational
objectives
7. Centralisation of authority and autocratic Decentralisation and participation in
decision-making. Democratic leadership.
leadership
8. People are self centred and have limited People are interested in organisatonal goals
and have unlimited potential.
potential

24.11.1. Critical Evaluation of McGregor's Theory

is that he helped to crystallize and set in right
The main contribution of McGregor One might get the
the findings of the Hawthorne Experiments.
perspective This is not true as in
X is bad and Theory Y is good.
impression that Theory An enterprising man
do not belong to either of the two extremes.
practice people in environment
of both the theories and emphasis shifts with changes
shares the traits
Therefore, an amalgam of both, Theory Xand Theory Y, will be r
and motives.
effective than either
of the two alone.

BETWEEN MOTIVATION THEORIES

24.12. COMPARISON
Models will reveal that
Maslow, Herzberg and McGregor
Aclose examination of between them. These models focus attention on
simlarity
there is great degree of
 24.18 Business Valagement

relationshiP, ie, wlhat

motivates an individual. Maslow h as
the same basic
of need hierarchy and suggest
how atisfy various
people try to sati given
it in terms
after another.
Any unsatisfied need becomes a motivating factor need
levels one
individual. In comparatively advanced natione
and
govens the behaviour of the
of the lower level needs are fulfilled and higher level needs remain as motiv
factors. This is what Herzberg has suggested. Most of his maintenance fact

comeunder comparatively lower level needs. Most of these needs remain safi
ied
and hence cease to be motivators.

SOCIAL SEL-ACTUALISATION

SAFETY ESTEEM

PHYSIOLOGICAL

HYGIENE FACTOR MOTIVATIONAL FACTORS

THEORYX THEORY-Y

Fig. 24.3 Inter-relationship between Motivation Theories.

As shown in Fig. 24.3 Maslow's physiological, security and social needs come
under Herzberg's maintenance factors whereas esteem and self-actualisation needs
come under motivational factors. Similarly, McGregor's Theory X focuses on lower
order needs while Theory Y emphasises higher order needs. There is, however, one
particular difference between the three models. Maslow points out that any
unsatisfied need, whether of lower order or higher order, will motivate individuals.
Therefore, his theory is universal in application. In underdeveloped countries, lower
level needs are motivating factors as they remain unsatisfied. According to Herzberg
these are hygiene factors and fail to motivate people. McGregor's Theory Y also
points in the same direction.

24.13. THEORY Z
William Ouchi developed Theory Z after making a comparative study of Japanese
and American management practices. Theory Z is an integrated model of motivation.
It focuses attention on organisational and behavioural aspects of management.
Theory Z suggests that large complex organisations are human systems and their
effectiveness depends on the quality or humanism used. A type Z organisation has
threemajorfeatures-trust, subtlety and intimacy. Mutual trust between members
of an organisation reduces contlict and leads to team work. Subtlety requires
sensitivity owards others and it yields higher productivity. Intimacy implies
concern, support and d.sciplined unselfishness.
 Motivation and Morale

The distinguishing features of 24.19

et
1 . Trust
According to
Ouchi,
Theory Z are as follows:
trust,
of an effecti
oroups,
work group
organisation. When integrity
org
union and trust
and
andopenness are essential ingredients
openness
fullymanagement
exist between employees,
employees Co-opera
to achieve conflict is reduced to the
Ceong the minimum and
Organisation organisation's
2 Bond between
Strong Bona
objectives.
d to establish a strong bond and
us

v be between the
granted life time employment
Employees. Several methods can be
During adverse business enterprise
which leads to
and its
employees. Employees
conditions loyalty towards the
retrenchment of workers. Promotionsshareholders may forgo dividends enterprise.
movement employees greater
of may be slowed down. As to avoid
emphasis should be placed on
which reduces stagnation. A career against vertical
every employee 1s planning for horizontal movement
arbitrarily placed. This
conducive work environment.
employees should be done so that
would result in a more stable and
3. Employee Involvement.
related matters improves theirTheory Z suggests that involvement of
commitment
meaningful participation of employees in the performance. Involvement
and employees in
implies
in matters
directly affecting them. Such decision-making process, particularly
responsibility and increases enthusiasm in theparticipation generates a sense of
4. Integrated
Organisation. Under
implementation of decisions.
and resources rather than on Theory Z, focus is on sharing of information
charts, divisions or any formal structure.
organisation puts emphasis on job rotation which An integrated
interdependence of tasks. Such understanding leadsimprovesto group
understanding about
5. Coordination. The leader's role spirit.
should be to coordinate the efforts of human
beings in order to develop common culture and class
The leader must use the feeling in the organisation.
processes of communication, debate and analysis.
6. Informal Control System.
Organisational control system should be made informal.
For this purpose emphasis should be on mutual trust and co-operation rather than
on superior-subordinate relationships.
Theory Z is not merely a technique of motivation. It rather involves complex
combination of managerial techniques and actions. However, Theory Z has been
criticised on several grounds. First, the theory is based on the Japanese management
practices. These practices have evolved from Japan's unique culture and may not
be relevant for organisations in different types of culture. Secondly, there is lack of
empirical research to confirm the practical utility of this theory. Thirdly, the theory
does not provide guidelines as to what point of time it may be applied in any
organisation. Lastly, there may be some operational problems in implementing
Theory Z. For example, in the absence of a formal structure there may be chaos.

24.14. VROOM'S EXPECTANCY THEORY!

Vroom's expectancy model of motivation is built around the concepts of valence
expectancy and instrumentality.
1. Valence. Valence desire or
implies the strength of a person's preference for
a
the
particular outcome. It is the importance or value that an individual places on
and feels
potential outcomes or reward. For example, a person desires promotion
Victor Vroom: Work and Motivation, John Wiley, New York, 1964.
 Businees Managemen
24.20 factor in achieving goal.
his goal His
FHio t
first levet
o u t c o m e of prorvl.

superior
performarce
is very strong
and his
second-level
prornotion. The
positive valence
that superior
pertormance
thus acquires
a
o u t c o m e of pror
by e
utome is of high
performance
second-level

first level outcome to the preferred because of the A

of its expected
relationship
motivated
t o w a r d s superior
performance
slence
would be
person that his effes
believes
for pr.amotion
extent to
which a person will
It implies the that a particular
action will lead
2 Fpectancy It is the possibility jobs to r e
lead to high
performance.
can improve
expectancy by matching ple
Managers
outcome. first-level outcome will lead to
first level the degree to which a
Iinstrumentality. It implies superior performance
3 outcome. In the above example,
a desired second-level getting
in promotion. Instrumentality
js
the
being seen as
instrumentality
(pertormance) and
second-level outconme
first-level outcome
between the relationship between efforts aand
relationship expectancy is
the other hand,
(promotion). On
first-level outcome. to expend
to motivation. Willingness
of force is equivalent
Vroom's concept value attached to an outcome. Thue
or negative
effort depends on
the positive ot the product of valence
motivation is the Sum
acording to Vroom's theory
expectancy and instrumentality.
Valence x Expectancy
x Instrumentality
Motivation (Force) =

EXPECTANCY INSTRUMENTALITY
VALENCE
The probability that Chances of getting
Perceived Value of desired rewards from
efforts will lead to job
Rewards good performance
performance

24.4 Basic Expectancy Model.

Fig.

24.14.1. Critical Evaluation

or composite approach to understanding
Expectancy theory is a comprehensive
feel and behave but also why they
motivation. It explains not only how people
and cognitive model. This theory is based on self-
react as they do. It is a predictive
behave according to what serves his
interest and choice. The individual chooses to
so as to be useful in a wide
interest best. Vroom's theory is sufficiently general
rewards
variety of situations. It takes into account employee needs, organisational
between these
and task performance, as well as the contingency relationships
valuables. It is quite consistent with management by objectives.
Some of the managerial implications of expectancy theory are:
behaviours.
() The theory emphasises expected
(i) Rewards should be tied to performance.
(i) Rewards should be equitable.
iv) Focus is on payoffs. People make choice based on what they think they
will get rather than on what they got in the past.

(1)Managers should design jobs tor pertormance keeping in view the

situational differences.
diterences in work motivation. Unlike
Vroom's model recognises individual
aslow and Herzberg models, it recognises the complexities of work motivation
 ation and Moral

A23
present an
r-simplifie and simplistic
/ does
not
suffers
fromthe following limitations: approach. However, de
ary is difficult to research and apply in
ryfor the scholar rather than tor the practitioner.practice. It is primarily a
It is a step in
directionfrom the theoretical viewpoint.
But it
te
right
tical help to in
managers solving motivation problems provides very little
The theory has not been fully tested empirically, Most studies undertaken
() ct its viability have been only marginally successful. In
fact Vroom
himself dep ended largely upon researches conducted
formulation of his theory. prior to the
AIt is overtly rational as it is based upon a rational economic view of
people.
Individuals are viewed as thinking, reasoning beings who evaluate the
outcomes of various options and choose the one that promises the optfimum
result. In practice, people rarely sit down to estimate valences and
expectancies.
d The predictive accuracy of the theory is doubtful. The amount of eforts
which individuals are
willing to
put on the job is influenced by many
factors other than valence, expectancy and instrumentality. To be precise
the theory has ignored () the individual differences in ability to calculate
valences and expectancies, (i) individual differences in the number and
type of consequences people consider when making decisions, and (11)
unconscious motivations of behaviour as well as impulsive and expressive
behaviour
Despite these limitations Vroom's theory holds great promise for predicting
behaviour in organisations. This promise arises due to the model's vigour of
formulation, relative ease of making the concepts operational and emphasis on

individual differences.

24.15. EQUITY THEORY

Stacy Adams of the United States
Equity theory of motivation was formulated by J. that members of an organisation
in 1965. The theory is based on the assumption
fairness in treatment by their employers. There are two
expect justice, balance and
and outcomes. Inputs are the contributions
main variables in this theory-inputs
Outcomes the rewards
perceives that he puts into job.
his are
which an individual
receives from the organisation
and form his job. Inputs include
which the individual
special knowledge, personal characteristics
the employee's training, experience, benefits, etc.
of pay promotion, recognition, status, fringe
etc. Outcomes consist in the exchange relationship
are thus important elements
Inputs and outcomes that the
and its members. When the individual feels
between the organisation of his inputs he is
from the organisation are fair in terms
outcomes he receives ratio with
The individual also compares his input-output
satisfied and motivated. and status in the organisation.
ratio of other members of his level
the input-output to that of others, there is equity. He
his ratio is
that equal
If the individual feels It the ratio is significantly less in comparison
with
motivated.
feelssatisfied and and frustrated. If the ratio is
individual feels underpaid
those of others, the He is likely to reduce
individual feels overpaid and guilty.
significantly more, theeffort
increase his
input of to create equity.
 Business Management
24.22
Others outcomes
Person's outcomes
Equity Person's inputs Others' inputs

theory are as follows:

The main postulates of the equity
creates tension in the
individual.
Perceived inequality
(a) to the magnitude of the
of tension is proportional
(() The amount
The nequity
tension creates in the individual motivateshim/her to reduce it.
to the perceived
inequity
( degree of motivation is proportional
The ty
Merits. Equity theory is one of
the most rigorously developed theorises
of
clear process theory of motiva
social exchange relationships. It is very
a
most of the postulates of this theory
Empirical research findings support The
theory provides useful guidance to managers in several ways. First, it tells mana
agers
theory.
that equity motive is one of the important motives of employees. Secondi.

important facts. Thirdlv wh

in motivation as
perceptions or feelings are as
determining a wage and salary structure in the organisation managers must pay
attention to equity considerations.

Demerits. Equity theory suffers from several limitations:

() The theory is somewhat narrow in its emphasis on VIsible rewards and
overstresses conscious processes.
(i) The theory is easily understood but its application is difficult. There are no
good measures to assess the perceptions of inequity and tension in an
individual. Therefore, it is very difficult to operationalise the concept of
this theory.

24.16. McCLELLAND'S ACHIEVEMENT MOTITVATION THEORY

David McClelland developed a theory of motivation which is based on three
types of needs. These needs are described below:
1. Need for Power (n Pow). This is the need to dominate, control or influence
people. ndividuals with high need for power prefer to be put into leadership
positions. They enjoy being "in charge and seek influence over others. Power
motivated persons wish to create an impact on the organisation by setting goals,
taking decisions and directing people.
2.Need for Affiliation (n Att). This is the need for companionship and
meaningful relationships with others. lt is the desire to be liked and accepted by
others. People with a high affiliation motive strive for
friendship and prefer
cooperative situations. They are motivated by jobs that require frequent interactions
with people.
3. Need for Achievement (n Ach). This is the need tor success and personal
accomplishment in competitive situations. People with high achievement motive
take personal responsibility for finding solutions to problems. They like to take
calculated risks and set moderate goals. They want concrete feedback on their
performance.

id C McClelland The Achievement

 Motivation a n d Morale
24.23
According to McClelland, managers have a high need for achievement and
r and
power low need for atfiliation. Therefore, they can better be motivated
and lowv
by
hallenge
and potential of the job. McClelland suggested that need for achievement
is essential for ecOnomic Progress of a country. He gave the following achievement
development course:

(a) Teach people how to think, talk and behave like a high achiever.
(b) Encourage people to set well
planned and realistic work goals.
( Provide them concrete and frequent feedback on their
performance.
(d) Train people how to talk to himself in positive terms and avoid day
dreaming.
20.16.1. Critical Appraisal of McClelland's Theory
Achievement motivated people can no doubt be the backbone of any organisation
or
country. However, McClelland's model has been criticised on the following
grounds:
()The evidence in support of this model is fragmented and doubtful.
(i) Achievement motivation cannot be taught. A person acquires motives in
childhood and it is very difficult to change them.
(iin) The model does not fully explain the process of motivation
(iv) Achievement training is time consuming and expensive.
(V) The use of projective technique is objectionable.