Introduction to Managenent

27

3 Extrinsic motivation
4. Intrinsic motivation
5 Financial motivation
6. Non- financial motivation
MOTIVATIONAL THEORIES:
13 MASLOW'S THEORY OF HUMAN NEEDS / MASLOw'S NEED HIERARCHY
THEORY:
Thebehavior of an individual at a particular moment is usually determined by his strongest
need. Psychologists claim that needs have certain priority. As the more basic needs are not met,
efforts to satisfy the higher needs should be postponed.
Abraham Maslow a famous social scientist has given a frame work that helps to explain
the strength of certain needs. According to him there must be a hierarchy into which human
needs are arranged as shown below.

Self-Actualization Higher order needs (inner neecs)

Esteem Needs

Social needs

}Lower order needs

Security |or] Safety neds

Physiological needs

Figure 1.3 : Maslow's Need Hierarchy

1. Physiological Needs :
The physiological needs are at the top of the hierarchy because they tend to have the
nighest strength until they are reasonably satisfied. These needs are also called basic needs. Ex:
tood, clothes, shelter, water, rest etc.
For the most, physiological needs are obvious and they are the literal requirements for
numan survival. If these requirements are not met, the human body simply cannot continue to
function.
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Physiologicalneeds include:
1
Breathing
Human nutrition

Water

Sleep
Sexual gratification
survival inall animals, including humans
aremetabolic requirements for the environment.
Air, water, and food protection from
Clothing and shelter provide necessary
2. Safety Needs:
When the Physiological needs are satisfied
as 'Security needs'. behavior.
These needs are also called safety needs take precedence and dominate
the individual's a preference for
to a reasonable level, then safety needs manifest themselves in such things asauthority, savings
In the world of work, these
procedures for protecting the individual from
unilateral
job security. grievance the ike.
against accidents and diseases accommodations, and
accounts, insurance
include:
Safety and Security needs
Personal security
Financial security
Health and well-being
their adverse impacts
Safety net against accidents/illness and
3. Social Needs:
social
physiological and safety needs are fulfilled, the third layer of human need is
After
and involvesfeeling of belongingness. These needs are also called as love and belongingness
need emotionally based relationships in general,
needs. This aspect of Maslow's hierarchy involves
such as:
Friendship
Intimacy
Family
Hurman need to feel a sense of belongingness and acceptance, whether it comes from a
large social group, such as clubs, office culture, religious groups, professional organizations, sports
tearns, gangs, or small social connections (family members, intimate partners, mentors, close
colleagues, confidants). They need to love and be loved by others. In the absence of these
elerments, many people become susceptible to loneliness, social anxiety and clinical depression.
This need for belonging can often overcome the physiological and security needs, depending on
the strength of the need.
Introduction to Management 29

4. Esteem Needs:

All humans have aneed to be respected and to have self-esteem and self-respect. Ihese
needs also known as the belonging need. Esteem presents the normal human desire to be
accepted and valued by others. People needto engage themselves to gain recognition and have
an activity or activities that give the person a sense of contribution, to feel accepted and selt
valued, be it in a profession or hobby. Imbalances at this level can result in low self-esteem or an
inferiority complex.
5. Self Actualization Needs:
Self actualization is the need to maximize one's potential, whenever it may be. This is related
with the development of intrinsic capabilities which lead people to seek situation that can utilize
their potential. As Maslow has putit "this need height be phrased as the desire to become more
and more what one is to become everything that one is capable of becoming". Maslow suggests
that the various levels of needs are interdependent and sometimes overlapping each higher-level
need emerging before the lower level need has been completely satisfied.
"What a man can be, he must be." This forms the basis of the perceived need for self
actualization. This level of need pertains to what a person's full potential is and realizing that
potentiat
74DOUGLAS McGREGOR'S THEORYX AND THEORY Y
Douglas Mc Gregor Theory X and Theory Y
Prof. Douglas Mc Gregor has introduced two theories in his famous book,' The Human side
of Enterprises.' They are called 'X' theory and Y theory. Abrief explanation of X theory is
given below.
Douglas classified the people within organization into two categories.
Ai) People concentrating on basic needs
41) People concentrating on higher order needs
He specified the qualities of people in two theories namely Theory X and Theory Y
Theory X:
This theory is based on 'BOSS knows BEST". Inother words, amanager excludes workers
Irom decision-making process. The workers should follow whatever decisions are taken by the
manager. Employees are inherently lazy, they requireconstant guidance and support, sometimes
they require even compulsion and control, given an opportunity, they would like to avoid
Tesponsibility, theydo not show up any ambition but always seek security.
Assumptions of Theory X:
1 Workers have an aversion to work inherently.
2 Workers may do the job half-heartedly.
3 Fear of punishment can motivate the workers into action.
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4. No worker is ready to accept any respOnsibility.

5. A worker prefers to be directed by others.
Features of Theory X:
1. Workers dislike work by themselves.
2 Workers are not ready to accept responsibility.
3 Workers prefer to be directed by others.
4. Workers are un-ambitious.
5 Workers by nature resist changes and want security.
6 Workers lack creativity and fail to solve organizational problems.
safety.
7. More focus on the lower level needs of workers i.e.. physiological and
8. Strict control is necessary to achieve organizational objectives.
9. Authority is not delegated.
10. Autocrat leadership is followed.
workers. Workers are forced
X-Theoryis regarded as the means to supervise and control the
to follow the decisions.

Theory Y:
the employees. Theory Y
Theory Y focus on a totally different set of assumptions about
controlling performance on their own. They
states that employees are capable of directing and rewards make these employees
are much committed to the objectives of the organization. Higher
they not only accept responsibility but
more committed to organization. If given an opportunity, them are highly imaginative, creative
of
also look for opportunity to outperform others. Most
issues.
and display ingenuity in handling organizational
Assumptions of Theory Y:
1 A job is as natural as a play.
extend their co-operation
2 Once the workers understand the pupose of job, they may
for job completion.
self-motivation, self-discipline and self-control.
3. Worker has self-direction,
The existing worker has competence to work and can take right decisions.
4.
The potentialities of human beings are not
fully utilized by anyindustry.
5.
Features of Theory Y:
1. Workers feel that work is as natural as play.
ready to accept responsibility if proper motivation is available to them.
2. Workers are
themselves.
3. Workers are directed by
Introduction to Management
31

4. Workers are ambitious.

5
Workers are ready to cope with changs
6
Workers have a high degree of creativity and succeed in
7 Itfocuses not only on the lower level needs but solving organizational problems.
esteem and self- actualization of also higher level needs i.e., sOClal,
workers.
Workers exercise self-control and self-direction to
9. achieve organizational objectives.
Authority is delegated.
10. Democratic leadership is followed.
Theory Z:
Prof. William G. Ouchi has developed theory Z. This
study of Japanese and American management practices. theory isZbased on the comparative
Theory describes how Japanese
management practices can be adopted to the environment of other countries especially in United
states. Both major and minor decisions are taken through
consensus in truly democratic and
dynamic managemernt besides, family relationship prevails between the employer and
In other words, close co-operative and employees.
trustworthy relationship prevails among workers, managers
and the other groups.
Features of Theory Z:
1 Trust
2. Life time employment
3 Involvement of employees
4 Integrated organization
5 Restricted promotions
6. Co- ordination
7. No formal structure
8 Motivation
9 Informal control system
10. Good work environment
A.5 HERZBERG'S TWO-FACTOR THEORY OF MOTIVATION
Herzberg's Theoryof Needs/ Herzberg's Two Factor Theory:
This theory is also known as two factor theory. According to Herzberg, motivational factors
are responsible for satisfaction. Hygiene or maintenance factors are responsible for job
dissatisfaction.
Motivational Factors
The presence of some factors creates motivation to the workers and at the same time absence
of such factors does not cause dissatisfaction. They are called motivational factors. Herzberg
identified some motivational factors as (i) Achievement, (iü) Recognition, (im) Advancement,
(iv) Work itself, (v) Possibility of growth and (vi) Responsibility.
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Management Science
Maintenance Factors
The presence of some set of factors motivate the workers but absence of these factors cause
t
_erious dissatisfaction. Herzberg called these factors as Maintenance or Hygiene tactors. They a
() Company Policy And Administration, (ü) Technical Supervision. (im) inter Personal relation
with sub-ordinates, (iv) Salary, (v) Job Security, (vi)Personal Life. (vi) Working
Conditions,
(vii) Status, (ix) Inter-personal relations with Supervisors, and (x) Inter-personal relations with
peers.

The workers may be motivated:

1. If job is challenging;
2 Ilf there a posibility of growth; cl
3 If there is possibility of achievement;
4 If the workers have enough authority and responsibility;
h
5 If the workers receive recognition; and
6. If the workers are able to advance in the profession
Requirements of a Sound Motivational System:
1. Amotivational system should balance the objectives and philosophy of organization
workers.
2. Motivation system should be understood by the members of the organization in the
right direction.
T
3 The motivational system should cover all the activities of the workers.
4. The motivational system should have corresponding relationsthip with efforts and 1.
rewards.

The motivational system should be flexible. It means that some changes are incorporated
5. TI
in the motivational system from time to time according to the requirements. CO

1.8DECISION MAKING PROCESS 2

Introduction:
All managers continuously make decisions regarding all kinds of problems, issues,
opportunities, threats etc. In fact, management is decision-making. In other words, the most
SI

vis., planning.
important part of management is making decisions. Allfunctions of management, 3.
organizing, directing, staffing and controlling involves decision-making. Similarly, all businessof
activities from the beginning to the end, ike type of business to start, type of product, sourcing th
raw materials, finance, human resources, where to locate the factory, the production process, fu
components,
tupe of technology, how much to produce, whether to buy or make some of the 4.
with the customer?
whereto market? whom to sell? at what price? How to maintain the relations
loss
Expansion or diversification of the business in case of getting profits and how to retrench the
are a number
making business operations etc., are important issues for decision- making. There fu