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LECTURES ON ORGANISATIONAL BEHAVIOUR

by Prof. O.P.Agarwal

5. MOTIVATION
5.1. MEANING: Motivation means internal mechanisms within a person in the form of needs, drives, incentives, etc. that energize, direct, and sustain human efforts in a specific direction to relieve tension and satisfy an active need. According to Robert Dubin, Motivation is something that moves the person to action and continues him in the course of action already initiated. In organizational context, motivation is the willingness to exert high level of efforts towards organizational goals, conditioned by the efforts ability to satisfy some individual need. (Robbins.) Motivation is the process that accounts for an individuals intensity, direction and persistence of efforts toward attaining a goal. Robbins,Timothy and Sanghi. NATURE OF MOTIVATON: 1. Motivation is the key to behaviour because motives lead to goals and to achieve these goals people have to make goal-directed efforts, which lead to goal-attainment. This can be seen in the following diagram: ________________________________________________________________________________ _
MOTIVES

GOAL DIRECTED EFFORTS


BEHAVIOUR

GOALS

GOAL ATTAINMENT

Motivation is a complex phenomenon; In an organizational setting, ,it is affected by several variables: I) Individual level variables like his attitudes, interests and specific needs, II)Job level variables like degree of control over the particular job ( autonomy), level of responsibility etc. and iii) Organizational level variables like peer group relations, supervisory practices, system-wide rewards and organizational climate etc. Motivation is also in a constant state of flux in an individual. Its level is based on the nature, strength and interactive effect of the above three groups of variables. 3. Motivation is a process that starts with a physiological or psychological deficiency or need (e.g. hunger or relationship), activates behaviour or a drive and is aimed at a goal or incentive (e.g. food or warm friendship). Thus, the key to understanding motivation lies in the meaning of, and relationship among needs, drives, and incentives as depicted in the following diagram: ____________________________________________________________________________________ 2. VALENCE (value of reward)

HUMAN NEEDS ACTIVATION OF DRIVE EFFORTS INCENTIVES (REWARDS)


EXPECTANCY (probability

of success)

A person has unlimited needs. But only an active or prepotent need becomes a driver of efforts. This drive propels efforts in the ratio of value of the expected reward and the perceived probability of the person being able to make the efforts and get the reward. The higher the value of the reward and expectancy of success the higher will be the strength of the efforts.

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Motivation is very important in an organization. It involves getting the members of the group pull their weight effectively, to give their loyalty to the group and to carry out the purpose of the organization sincerely. Motivated employees are more productive, quality-conscious and innovative at work. Being more satisfied employees, they have low labour turnover, absenteeism, and grievances. This leads to improvement in human relations and cooperation in organizational efforts.

5.2. PROCESS OF MOTIVATION:


The source of motivation is need innumerable needs, which continuously drive a man to action. These needs create tension in the mind of the person. But since needs are so many, the person has to select the need which is most prepotent (active) at that time. This most active need drives man to search for a way to satisfy that need. Once the way is decided, man takes action. The action should result in the satisfaction of that need at that time. The moment one need is satisfied another becomes active and the person searches for another way to satisfy the new need. And thus the process goes on and on endlessly and the person remains active throughout his life. This process can be described in the following diagram: _________________________________________________________________________________
Experienced Need Deficiency Search for Ways to Satisfy the Need Choice of Goal-directed Behaviour Reassessment of Need ExperiencedReward/Punishment Enactment of Behavioural Choice

If we look at motivation from the managerial point of view, this process consists of four steps: -------------------------------------------------------------------------------------------------------------------------------IDENTIFY EMPLOYEESNEEDS

GET REQUIRED PERFORMANCE AND GIVE PROMISED REWARD

DESIGN EMPLOYEE REWARD SYSTEM TO SATISFY ABOVE NEEDS

DEFINE JOB PERFORMANCE REQUIREMENTS

5.3. MOTIVATION THEORIES


There are two sets of motivation theories:1.Content Theories, and 2. Process Theories...

5.3.1. CONTENT THEORIES:


Content theories explain the content i.e. the needs in the form of physiological or psychological deficiencies that motivates people. Some of the main content theories include: Maslows Need Hierarchy, c) Alderfers ERG Theory. Herzbergs Two Factors (Motivation-Hygiene) Theory, d) McGregor's Theory X and Theory Y. 5.3.1.1. MASLOWS NEEDS HIERARCHY: Abraham Maslow provided the first major content perspective of motivation with a hierarchy of needs, postulating that people are motivated by multiple needs that are arranged in a hierarchy, as depicted in the diagram below: Higher order needs
Infinite needscan never be fully satisfied SelfActualization Self & Others Esteem Confidence, Status &Power

Social need for Belongingness Affection of family, friends, peers.

Lower order needs


Finite needs which can be satisfied fully at one time Security needs- security of life health, future Physiological needs-air, water, food, rest, sex, clothes, shelter

A brief description of these needs is as follows: i) Physiological Needs of air, hunger, thirst, clothes, shelter, rest, sex etc. The physiological needs are directly concerned with the biological maintenance of the organism and must be gratified at some minimum level before the individual is motivated by higher order needs. In the organizational context, physiological needs are represented by employees concern for salary and basic working conditions. ii) Security needs i.e. needs for safety of life and property, good health, security of future etc. The primary motivating force here is to ensure a reasonable degree of continuity, order, structure, and predictability in ones environment. In organizational context, they correlate to such factors as job security, severance pay, annual salary increases, safe working conditions & health and medical insurance, fair grievance procedures, unionization and benefits like pension, group insurance, provident fund, gratuity etc. iii) Social Needs i.e. need for belongingness, affiliation and association; need for family and friends to share feelings, ideas, information, emotions, joys and sorrows etc. This is a need for group acceptance, affection and appreciation. Negatively a person tries to avoid the pangs of loneliness, isolation and rejection especially when induced by the absence of friends, relatives, a spouse or children. In organizational context social needs represent the need for a compatible work group, peer acceptance, professional friendship and friendly supervision. iv) Esteem Needs: It includes: a) self-esteem, as well as, b) others esteem (respect from others). Self-esteem includes such things as desire for competence, confidence, personal strength, adequacy, achievement, independence, and freedom from close monitoring. An individual needs to know that he is worthwhile and capable of mastering tasks and challenges in life. Esteem from others includes prestige, power, position, status, recognition, reputation, and appreciation. On the work place selfesteem is reflected in job title, merit pay, challenging work, performance appreciation in company reports and journals. v) Self-Actualization Need: It is the desire to become everything that one is capable of becoming. The person, who reaches this level, presses for the full use and exploitation of his talents, capacities and potentialities. In an organization, self-actualization needs correlate in personal growth, realization of ones potential -- excelling oneself in ones job, advancing an important idea, and successfully transforming an otherwise unviable unit into companys star performer. In order to understand the full meaning of Maslows theory, it is necessary to understand the deficit and progression principles: The Deficit Principle: According to Maslow, once a need is fairly well satisfied, it no longer is a strong motivator of behaviour. In other words, people are motivated to satisfy only those needs that are perceived to be deficientthat is needs, for which there is a deficit. The Progression Principle: Maslow contends that the five categories of needs exist in a set hierarchy of prepotency. A need at a given level is not activated until the need directly below it is fairly well gratified. Thus, the person is expected to progress step-by-step up the need hierarchy as depicted in the following diagram: Self Actualization Need

Esteem Need Social Need

Security Need Physiological Needs


Evaluation of Maslows Need Hierarchy: It is intuitively the most logical theory. Its main merits are: It offers very useful ideas for the guidance of managers. The managers can identify employees needs, recognize that they may be different across employees, offer satisfaction for the particular needs, and realize that giving more of the same reward may have a diminishing impact on motivation. It accounts for both interpersonal and intra-personal variations in human behaviour. This clearly why some workers are highly motivated by money and other not so? Why some workers get engrossed in their work and other not so? The answer is clear. Rewards or incentives will be effective only when they are linked to the prepotent need of the said employee. Maslows need hierarchy model is dynamic as it presents motivation as a constantly changing force, expressing itself through the constant striving for fulfillment of new and higher order needs. A man never rests on his laurels, when one goal is reached; he directs his efforts and capacities towards the attainment of still higher level goals. Maslows approach is based on existential philosophy. It believes that a man is healthy, good, and creative being, capable of carving out his own destiny. The theory deserves appreciation for its simplicity, commonness, humanness, and intuitiveness. However, this theory is subject to many points of criticisms too: Maslows theory did not originate as a theory of work-motivation in the first place. He made it so only after 20 years of study and after Mc Gregor had popularized it in his widely read book, The Human Side of Enterprise. The hierarchy of needs simply does not exist. Needs are present at all levels at any given time. Even assuming need hierarchy exists; it may not be the same in different countries and cultures. According to one study the order and prepotency of Maslows hierarchy differs in different countries. A survey found the following ordering of needs (listed from most important to least important): USA and Japan: Self-actualization, esteem, safety, physiological and social need. France: Self-actualization, esteem, physiological, safety, and social needs. Germany: Self-actualization, physiological, esteems, social and safety needs. India: Physiological, self-actualization, esteem, social, and safety. Maslows assumption about psychological health of people is not acceptable to many. Many individuals may stay content with lower level needsphysiological or safety needs. They may not move farther in the hierarchy of needs in search of satisfaction. Manager will always not have time to leisurely diagnose the level at which an employee is satisfied presently. Further more, they may not be free to supply tailor-made rewards to each of them. 5.3.1.2. HERZBERGS MOTIVATION-HYGIENE OR TWO FACTORS THEORY. This theory of motivation is propounded by another psychologist, Frederick Herzberg, on the basis of the findings of his survey of 200 accountants and engineers, using critical incident method for obtaining data for analysis. The respondents were asked two questions: When did they feel particularly good about their job, and when they felt exceptionally bad? Responses were quite surprising. It was revealed that feel good factors were totally different from feel bad factors. Further, they were not opposite poles of one dimension but two separate dimensions. Hezberg called feel good factors, satisfiers or motivators and feel bad factors as dissatisfiers or hygiene factors.

According to Herzberg the hygiene factors or feel bad factors maintain satisfaction/ motivation when they exist and cause dis-satisfaction when they are absent or poor. These hygiene or maintenance factors were also described as extrinsic or job context factors, because an employee has little control on them; they are considered as given in the context of the job and the contract of engagement. These factors included: Company policy and administration i.e. the employee will be treated justly and fairly in employment relationships, Pay, that employee will get his pay according to the nature of the job being performed, Technical supervision will be competent to enable him to perform according to his abilities, Working conditions will be conducive to work as per law and job requirements, Security of servicethere will be no unfair threat to employment, Personal life will be undisturbed by unnecessary pressures of employment, Status will be commensurate with the job and position, Interpersonal relations with the boss will be fair, Interpersonal relations with the co-workers (peers) will be cordial, and Interpersonal relations with subordinates, if any, will be cooperative. As different from hygiene factors, the motivators, satisfiers or feel good factors are the factors that cause satisfaction when introduced or improved. In the absence of these factors, the employee does only as much as is required by the contract of employment and not what he is capable of doing. These factors are also described as intrinsic or job content factors as they trigger enthusiasm for work from within the person. Motivators include: Achievement of success, Recognition for good work done, Responsibility for more important tasks and decisions, Advancement in the organizational hierarchy to higher positions and status, Growth opportunities to prove ones potential and advance on the promotion ladder, Challenging job that calls for extraordinary efforts and extraordinary capabilities. CONTRAST BETWEEN MASLOWS NEEDS HIERARCHY AND HERZBERGS TWO FACTORS THEORY: The two theories have a number of similarities and dissimilarities. The most important similarities in approach are: i) both assume that specific needs energies behaviour. Maslow talks of lower order and higher order needs while Herzberg talks of various factorshygiene factors and motivators. ii) There seems to be broad agreement on the totality of human needs, Herzbergs hygiene factors more or less cater to the satisfaction of Maslow's lower order needs as can be seen from the following contrast diagram:
Self Actualization Esteem Need Self and Others Esteem Social Belongingness Need Security NeedPhysical, Economic & Emotional security Physiological or Biological Need Challenging and Meaningful Job Growth opportunities, More Responsibilities. Achievement of success, Advancement, and Recognition Status Inter-personal Relations with Superiors. Peers and subordinates Security of Service, Technical supervision, and Company Policy and Administration. Pay, Personal Life, and Working Conditions.

MASLOWS NEED HIERARCHY HERZBERGS TWO FACTORS However, the main dissimilarities between Maslows and Herzbergs models are listed below: Issues Maslow Herzberg

Type of theory: Descriptive: Describes human needs Prescriptive: Prescribes means for need-satisfaction Performance Only unsatisfied needs energize Satisfied hygiene needs only maintain performance, behaviour and cause performance. unsatisfied motivator needs cause high performance. Order of Need Hierarchicalsequential satisfaction No hierarchy, each need is independent. Effect of Pay: Pay is a motivator if it satisfies need. Pay is not a motivator. Effect of Need All needs are motivators at various Only some needs are motivators times. View of motivation Macro-view, deals with all Micro-view deals primarily with work-related. aspects of existence. motivation Worker level Relevant for all workers. Probably more relevant to white-collar and professional workers. Methodology This theory is based on clinical tests This is based on empirical data. -.

Evaluation of the Two-Factor Theory: Herzbergs theory made a classical revelation that one cannot achieve higher performance simply by improving wages and working conditions. He introduced job as an intrinsic motivator and stressed on job-enrichment as a means to improving efficiency, satisfaction and high performance. Further, this theory is simple and based on empirical data. Lastly, it offers specific action-guidelines to practicing managers on how to improve motivation and performance in their organizations. However, Herzbergs theory has not gone unchallenged. It has been criticized on the following grounds: It draws conclusions from a limited study covering only 200 accountants and engineers. Its methodology is defective because it asked respondents to report exceptionally good or exceptionally bad moments. When things were good, they took the credit for themselves and when things were bad they blamed extrinsic environment for this. Herzberg gave too much importance to job enrichment. Though important, but it cannot eliminate the importance of pay, status, and interpersonal relations. The distinction between maintenance and motivating factors is not definite. What is maintenance factor (e.g. pay) in US may be a motivator in India. Both the factors, motivators as well as maintenance, contribute to both satisfaction as well as dis-satisfaction, though maintenance factors contribute more to dissatisfaction than satisfaction and motivators contribute more to satisfaction than dissatisfaction. This theory ignores situational factors like organizational climate, job requirements, level of employees need satisfaction, and organizations human resource management policies. Herzbergs assumption that productivity is directly related to satisfaction is questionable. 5.3.1.3. ALDERFERS ERG THEORY OF MOTIVATION Building on the Mallow approach, Clayton Alderfer developed the Existential-Relatedness-Growth (ERG) Need Theory. According to Alderfer, human needs can be condensed into just three categories: Existential needs are the needs for physical well-being and correspond to Maslows physiological and security needs. Relatedness needs focus in the need for satisfactory relationships with others and is comparable to Maslows social needs. Growth needs pertain to the development of human potential and the desire for personal growth and increased competence. The growth need is similar in nature to Maslows esteem and self -actualization needs. There are three main points of differences between Maslow and Alderfer Approaches: Instead of five needs-hierarchy of Maslow, Alderfers approach hypothesizes only three needs system. As against the rigid five step progression of need satisfaction suggested by Maslow, Alderfer hypotheses that first, more than one need may be operative at the same

time, and second, there is no rigid hierarchy where a lower order need must be substantially gratified before moving to satisfy a higher order need. Alderfer does not agree that a person will stay at a certain need level until that need is satisfied. On the other hand, he suggests that when a higher level need satisfaction is frustrated, the individual will regress back to lower order need. Thus, this theory propounds frustration-regression against Maslows satisfactionprogression approach. Evaluation of ERG Theory: There are two main merits claimed for this theory: This theory is more consistent with our knowledge of individual differences. Variables such as education, family background, and cultural environment can alter the importance of driving force that a group of needs holds for a particular individual. It is noted that these cultural differences in need prepotencies of people of US, India on the one hand and people of Spain and Japan, on the other hand. Alderfers ERG theory seems to take some of the strong points of the earlier content theories, but is less restrictive and limiting. However, this theory suffers from the following limitations: This theory does not offer clear-cut guidelines to managers as does Herzbergs Two Factors Theory. In order to predict what behaviour, any given person will be motivated to engage in, would require an assessment of that person to determine which of the three needs were most salient and most important to that person. The individuals would then be predicted to engage in behaviour, which would lead to the attainment of outcomes with the capacity of fulfilling these salient needs. The ERG theory is newer than the need hierarchy theory, and has not yet attained such wide acceptance and popularity as Maslows, or Herzbergs approaches. 5.3.1.4. McGregors THEORY X AND THEORY Y Douglas McGregors Theory X and Theory Y are based on two different sets of assumptions about human nature reminiscent of Scientific Management approach of Taylor and Human Relation approach of Mayo and his team members:

Theory X 1. The average human being is basically lazy and has an inherent dislike for work. He avoids work if he can. 2. Most people lack ambition, have little desire for responsibility, are passive and prefer to be directed. 3.Most people have little capacity for creativity in solving organizational problems 4. Most people are self c entered and are indifferent to the organizational goals. 5. Most people must be closely controlled and often threatened to work for organization goals. 6. Motivation of average person occurs at physiological (food, clothing, shelter etc and safety needs( job security, justice & fair play)

Theory Y 1. Work is as natural as play; if the conditions are favourable average person does not inherently dislike work. 2. An average person learns under proper conditions not only to accept but seek responsibility and likes self-direction & control 3. The capacity for creativity is widely distributed in the organization. People are not inherently self centered; they are other centered too provided others too take care 5. People have high intellect potential which is only partially utilized under present conditions. 6. Motivation at social level (care &belongingness), esteem level (recognition, status power), and self-actualization level (challenge in job).

Mc Gregor believed that theory Y assumptions were more valid and therefore suggested such ideas as a) participative decision-making, b) responsible and challenging job, c) free flow of two way communications, and good d) group relations as approaches that would maximize an employees motivation. 5.3.2. PROCESS THEORIES. Content theories emphasize the importance of inner needs in motivation. They are based on three assumptions viz. i) all employees are alike, ii) all situations are alike and iii) there is one best way to motivate all employees. Since these assumptions are too far-fetched, they do not provide practical guidance to a manager. Hence, the evolution of process theories. These theories view motivation as an individuals decision to act. The motivation depends on individuals perceptions of effort-rewards relationship. There are three theories in this group: Adams Equity Theory, which emphasizes on an individuals sense of perceived equity with his efforts- rewards relationship, Vrooms Expectancy Theory, which explains the dependence of motivation on three factors viz. perceived value of the expected reward, the certainty of the rewards and the belief that the person will be able to make the required efforts, and Porter & Lawlers Performance-Satisfaction Theory which integrates efforts performance Rewardssatisfaction relationship into a comprehensive explanation of motivation. 5.3.2.1. ADAMS EQUITY THEORY: This theory was formulated by J.S.Adams. This is also known as social comparison theory. It is based on the assumption that people want equitable treatment in their work relationships. When employees work for an organization, they basically exchange their services (efforts, skills, abilities, experience, loyalty, and commitment) for pay and other benefits like security, recognition, status, power, opportunity. An individual wishes that there should be equity in this exchange and if it is not there he is motivated to establish it through his modified behaviour or perception. There are two types of equities sought by an employee. First, internal equity i.e. perceived equity in the ratio of employees rewards to his efforts, and Second external equity i.e. the ratio of employees rewards to his efforts as compared with the ratio of the rewards of his comparable person to the efforts of that person Persons Rewards Reference Persons Rewards. Persons Efforts Reference Persons Efforts When employees perceive an inequity, they may make any of the following choices: Change their input i.e. efforts Change their outcomes (if paid on piece basis, may produce more numbers with lower quality). Distort perception of self. (I probably over-rated my efforts). Distort perception of others. (Referent persons job is not as desirable as I previously thought it to be). Choose a different referent.(I may not be making as much as X but surely I am making much more than Y) Leave the field, quit the job. Specifically, the theory establishes four propositions relating to inequitable pay: Given payment by time, over-rewarded employee will produce more than what equitably paid employees will. Hourly and salaried employees will generate high quantity or quality of production in order to increase the input side of the ratio and bring equity. Given payment by quantity of production, over-rewarded employees will produce fewer, but higher quality units than will equitably paid employees. Given payment by time, under-rewarded employees will produce less or poorer quality of output. Efforts will be decreased, which will bring about lower productivity pr poorer quality output than equitably paid subjects. Given payment by quantity of production, under rewarded employee will produce a larger number of low quality units in comparison with equitably paid employees. 5.3.2.2. VROOMS EXPECTANCY-VALENCE THEORY

This theory is given by Victor Vroom. Stated briefly, Vrooms expectancy model postulates that motivation depends on the strength of an expectation that the act will be followed by a given outcome and on the preference of an individual for that outcome. According to this theory the force of motivation in any individual depends on three factors: a) Valence, b) Instrumentality and c) Expectancy in the following manner: Force of Motivation = Valence x Instrumentality x Expectancy. Valence or Rewards Personal Goal Relationship: The degree to which organizational rewards satisfy an individuals personal goals or needs and the attractiveness of those potential rewards for the individual. Instrumentality or Performance Rewards relationship: The degree to which the individual believes that performing at a particular level will lead to the attainment of a desired outcome/reward. Expectancy or EffortPerformance Relationship: The probability perceived by the individual that exerting a given amount of effort will lead to desired performance. In summary, the key to expectancy theory is the understanding of an individuals goals and the linkage between efforts and performance, between performance and rewards, and finally, between the rewards and individual goal satisfaction. Expectancy Instrumentality Valence Individual Efforts Individual performance Organizational rewards Individual goals Managerial implications of Vrooms Expectancy Theory: Managers can use the knowledge of the Expectancy theory to motivate employees in their organizations in the following manner: Key Variable 1. Expectancy Individual Questions Can I achieve the desired level of task performance? What work outcomes will he receive as a result of performance. How highly do I value the work outcomes? Managerial Intervention Select workers with ability; train workers to use ability; support ability with organizational resources and clarify performance goals. Clarify psychological contract; communicate performance reward possibilities. Identify individual needs or desired outcomes and adjust available rewards to match these

2. Instrumentality 3. Valence

Evaluation of Expectancy Theory This theory has the following merits; It explains the complex process of motivation more clearlyM = V x I x E. It clarifies the relationship between individuals goals and organizations goals (Organizational goals Individuals goals) and the influence of instrumentality (Performance Outcomes) and expectancy (Efforts Performance). Being a cognitive theory, it views individuals as thinking, reasoning beings that have beliefs and anticipations concerning future events in their life. It guides manger in how to motivate people in their organizations by suitable interventions strengthening their expectancy and instrumentality for achieving desirable individual goals. The main limitations of this theory are: The relationship among these variables is till open to question and difficult to quantify. All human decisions are not conscious decisions. The theory has not yet fully been tested empirically. 5.3.2.3. PORTER LAWLER MOTIVATION MODEL

According to Porter and Lawler, motivation, performance, and satisfaction are all separate variables and relate in ways different from what was traditionally assumed. Though they appear to be related with each other in the same manner as in Expectancy Theory but have several intervening forces affecting them as shown in the following diagram:

VALENCE (Value of Reward) EFFORTS EXPECTANCY

ABILITIES & TRAITS

PERCEIVED EQUITY

INTRINSIC REWARDS PERFORMANCE EXTRINSIC REWARDS SATISFACTION

Perceived effortreward Probability

ROLE PERCEPTION

The various elements of Porter and Lawler Model as depicted above are explained below: 1. Effortsthey refer to the amount of physical, mental and emotional energy exerted by a person on a job. The efforts of the person are going to be affected by two factors namely, the value of rewards (both intrinsic like job-satisfaction and extrinsic like pay and position) anticipated from the efforts, and the certainty of these rewards. 2. Performanceit means the actual performance as against the required performance. It depends on three factors namely a) the intensity of efforts, b) the abilities of the individual and c) his understanding of the job requirements. 3. RewardsThere can be two types of rewards*; a) intrinsic rewards like job satisfaction, sense of meaningfulness, sense of autonomy, sense of achievement, and b) extrinsic rewards like pay, position, praise, power, etc. Each individual has some perceived value of these rewards for himself. 4. Satisfactionthe satisfaction from the rewards is also dependent on two factors namely a0 the degree to which individuals needs and expectations are satisfied by these rewards and b) the perceived sense of equity between the efforts and his rewards per se and in comparison with the rewards of socially comparable persons. Porter and Lawlers Model is a way combine the main features of the two process theories namely a) Vrooms Expectancy Theory and b) Adams Equity Theory and present a more integrated view of motivation. Managerial Implications of Porter and Lawlers Model: In an organization, a manager can take the following steps to motivate workers: Select the employees carefully so that they have the necessary job knowledge, abilities, skills and aptitudes; train them well so that they are able to transfer these to work, support these activities with organizational resources. Determine the rewards valued by each employee and provide for them in Human resource Development Policies and Practices. Determine the performance expectations in very clear terms and communicate them to each employee so that they know in very unmistakable terms what is expected from them for the desired rewards. Guide, help and support the efforts of individuals in the direction of effective performance on a continuous basis, thus enabling them to transfer their abilities to work.

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Ensure that they get the rewards as promised, there is perceived equity in the value of rewards and efforts, and there are opportunities for growth and development as more efforts are put on.

DISTINCTIONS BETWEEN CONTENT AND PROCESS THEORIES OF MOTIVATION FACTOR CONTENT THEORIES PROCESS THEORIES Base Factors that influence Perceptionshow the individual views motivationneeds, conditions themequity if reward-effort ratio or or context, incentives etc. value of outcome and the capability for efforts and certainty of rewards. Nature Deductive and inductive PracticalThe are based on cognitive Maslows theory is deductive process of understanding, interpreting while Herzbergs theory is and decision-making. inductive. Main theories Maslow, Herzberg, Alderfer, Mc Adam. Vroom, Porter and Lawler etc. Gregor etc. 5.4. MANAGERIAL APPROACHES TO MOTIVATION There are three approaches summarized as below: Traditional or Scientific Human Relation Model Human Resource Model Management Model Assumptions Assumptions Assumptions: 1. Work is inherently People want to feel useful and Work is not inherently disdistasteful to most people. important. tasteful. People want to contribute to meaningful goals which they helped establish. 2. What they do is less People like to belong and to People want work which gives important than what they earn be recognized as individuals. them an experience of for doing it. meaningfulness, autonomy and satisfaction. 3. Few people want or can Their social needs are Most people can exercise far handle work which requires important than money in more creative and responsible creativity, self-direction and motivating people to work. self direction &self-control than self-control. their present job demands. Policies; Policies; Policies; 1. The managers basic task is The managers basic task is to The managers basic task is to to closely supervise and make each worker feel useful make full use of untapped control subordinates. and important. potential of the human resource 2. The manager should break The manager should keep the Manager should create an the task into simple repetitive, subordinates informed about environment in which each easily learned operations. his plans and listen to their subordinate can contribute up to views and objections patiently. his potential. 3. The manager should The manager should allow The manager must encourage full establish detailed work subordinates to exercise some participation on all important routines and procedures and self direction and self-control matters on a continuous basis enforce them firmly but fairly. on routine matters. and allow them to exercise selfdirection and self-control Expectations: Expectations: Expectations: 1. The workers can tolerate Sharing information and Expanding subordinates work if the pay is decent and involving subordinates in influence, self direction and self the boss is fair. routine decisions will satisfy control will lead to direct improve-

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2. If the tasks are simple and people are closely supervised, they will produce up to standard.

their basic need of belongingness and self esteem. Satisfying their need will improve their morale and reduce resistance to formal authoritysubordinates will willingly cooperate.

ment in operating efficiency. Work satisfaction may improve as a by-product of subordinates making full use of their resources.

5.4. TYPES OF REWARDS Rewards are the pay-offs one get for performance. These rewards could be financial or non financial, intrinsic or extrinsic. Financial rewards include pay, perquisites, benefits, and allowances. They may be variable or fixed. Variable financial rewards may depend on the performance Rewards can be divided into two groups: a) Intrinsic rewards and b) Extrinsic rewards. The main points of differences between the two are: 1. Intrinsic rewards refer to those rewards that the individual provides to himself (e.g. feeling of accomplishment) as a result of performing some challenging task satisfactorily. Extrinsic rewards, on the other hand, are those that are provided to an individual by some one else (say the employer, co-workers, boss etc) for work done according to their expectations. Intrinsic rewards include experience of meaningfulness, autonomy and satisfaction in work through job-enrichment and enlargement; feeling of accomplishment, competency and competitiveness in success, feeling of self esteem and self efficacy when allowed initiative and creativity. 2. Extrinsic rewards, on the other hand, include the financial and non-financial rewards (pay, position, power, promotion etc) given by the employer, and recognition, praise, and support given by co-workers, boss, and client groups etc. 3. Most of the Hygiene factors (job context factors) given by Herzberg are extrinsic rewards while all the motivating factors (job content factors) are intrinsic rewards.

5.4.5. ILLUSTRATIVE CASES


1. GOAL SETTING THEORY: In 1992, Chris Gardner was homeless, raising a 20 month old son in San Francisco and peddling medical devices few wanted to buy. Unable to afford both housing and child care, Gardner boarded himself and his son where he couldin cheap hotels to Oakland, in a church shelter when they could not afford that, and even in bathrooms at the Bay area rapid transit office when the shelter was full. A happy ending was nowhere in sight. A turning point in Gardners life came in a parking lot, when he met a man driving a red Ferrari. He was looking for a parking space. I said, You can have mine, but I got to ask you two questions, the two questions were: what do you do? And how do you do that? Turns out this guy was a stockbroker and he was making $80,000 a month. From that moment Gardner resolved that he would be a stockbroker too. A while later he looked up the offices of Dean Witter, then one of the largest investment banking firms (it later merged with Morgan Stanley. Gardner was able to line up an interview for a spot in the firms internship programme. The night before his interview, Gardner was taken to jail for a backlog of parking tickets he could not afford to pay. So he went to his interview unshaven, disheveled, in yesterdays clothes. He explained his situation, and Dean Witter took a chance on him. The firm advised him it was only a trial programme and that only a few of the most promising prospects would be hired to full time position. Gardner remembered the advice his mother had given him: you can only depend on yourself. No army will come to defend you. At Dean Witter, Gardner made 200 calls a day. Every time I picked up the phone, he said I knew I was getting closer to digging myself out of the hole. Gardner made it at Dean Witter, spent 1983-1987 at Bear Stearns 7 co, where he became a top earner, and 5 years after, opened his own brokerage firm in Chicago, and named Gardner Rich. It is still thriving today. Now 14

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people work at the firms offices, a few blocks from the Sears Tower in Chicago. Not that Gardner is coasting. Sitting in his Chicago office, dressed in Bermuda shorts, sandals and two watches (which he always wears to make sure he is never late), Gardner says he is a bit tired of talking about himself and how far he has come Question to ask from self: 1. How did you score relative to other class members? Does that surprise you? 2. Do you think self-confidence is critical to success? Can a person be too confident? 2 .EQUITY THEORY Suyash graduated last year from a national-level engineering institute with a B. Tech degree. After interviews with a number of organizations on campus, he accepted a position with a UK based multinational and was assigned to their Delhi office. Suyash was very pleased with the offer he received: challenging job with a prestigious firm, an excellent opportunity to gain valuable experience, and the highest salary any technocrat at the institute was offered last year Rs.980,000 per annum. But Suyash was the top student of his class, he was articulate and mature, and he fully expected to receive a commensurate salary. Twelve months have passed since Suyash joined his employer. The work has proved to be as challenging and satisfying as he hoped. His employer is extremely pleased with his performance e; in fact he recently received a raise of Rs,20,000 per month. However, Squashs motivational level has dropped dramatically in the past few weeks. Why? Squashs employer has just hired a fresh college graduate out of the same institute, who lacks the 1 year experience Suyash has gained, for Rs12,50,000 per annumRs25,000 more than Suyash now makes. It would be understatement to describe Suyash in any other terms than irate, Suresh is even talking about looking for another job. EXAMINATION QUESTIONS: 1. What is the difference between motivation and satisfaction? (3 marks) 2003. [Motivation energizes efforts while satisfaction is the result of need-satisfaction or goal attainment] 2. Explain Maslows theory of motivation. (3 marks) 2001 3. Briefly explain Maslows theory of motivation and relate it in terms of comparison with the ERG theory. (5 marks) 2006 4. Distinguish between Maslows Need Hierarchy and Herzbergs Two Factors theory of motivation. (5 marks) 2008 5. Discuss the application of content theories in motivating the Indian employees. (5 marks) 2005. [Indian workers at the lower levels (daily wage earners, watch and ward staff, class three and four employees, unskilled or semi-skilled factory workers, drivers etc.) in small and medium sized firms are to an extent affected by hygiene factors, while skilled workers, administrative and managerial staff, professionals, technocrats, consultants etc are affected by motivating factors.] 6. Discuss the application of process theories (of motivation) in the present organizations. (3 marks) 2005 7 Among all the theories which one do you think has best understanding of motivation in work place? Defend your answer. (5 marks) 2001 [From the point of best understanding of motivation, Vrooms Expectancy theory and Porter and Lawlers integrated theory has more meaningfulness 8. Indicate how management can successfully motivate its people taking a cue from Vrooms expectancy theory. (3 marks) 2003 [Management can successfully motivate its people in the following manner: a) to improve employees effortsperformance expectancy, management should select employees with right abilities, train them fully to use these abilities, support their efforts with organisational resources and clarity of performance goals. b) to improve their performance outcome instrumentality, management should assure employees about the certainty of the promised rewards if the required performance is delivered.

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c) to improve their valence (reward satisfaction potential) by identifying each individuals prepotent needs and their most desired rewards and adjust the same in organisational reward system.]. 9. Distinguish between content theories and process theories of motivation.(3 marks) 2008,2002 10. What are the differences between content and process theories of motivation? (3 marks) 2007 11. What are rewards? Why organization gives rewards? What is the difference between extrinsic and intrinsic rewards? 95 marks) 2007 12. Distinguish between intrinsic and extrinsic motivation. (3 marks) 2002 13.A Happy worker is a productive worker. Discuss. (3 marks) 2006 14. What are the approaches to motivation? (3 marks) 2005. .

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