Introduction

This document consists of 3 sections

1) Section I: In this part we shall be giving you 10 marker questions. These are supposed to be
somewhat direct and easy as compared to 15 marker questions
2) Section II: In this part we shall be giving you 15 marker questions. These are supposed to be little
complex or consisting of multiple sub-questions or may be an integrated question from concepts
of different chapters
3) Section III: There is one homework question for you to think and write. The answer for this
question will not be given by us.

Other Guidelines

1) The answers given here are not to be crammed. They are not given from the perspective of being
perfect answers. No answer is a perfect answer. If we ask 500 people to write answers to these
questions, then we will get 500 different answers and we cannot decide which one is perfect
answer. The answers given here is to help you guide towards the approach to answer writing.
2) The answers written here may exceed the word limit in some cases. But that is done intentionally,
so that you understand it better and in exam you can further summarize that information to
achieve the desired word-limit.
3) In certain answers, the content/points written may not be covered in the notes/videos. But that
is also done to make you realize that we cannot simply be bookish in writing answers, rather
some content/points need to be written from our understanding of things. This is called the
application part
4) We would recommend that questions to the
answers should not be just read. What you shall
do is
A. For 2-3 questions, please write answer in
your own words so that you get practice for
Motivation
descriptive writing. Then try to match your
answer with answer given by us and try to
self-evaluate
B. For the rest of the questions, try to make an
Part - 1
outline as in what you will write in this answer. Then try to match your outline with answer
given by us and try to self-evaluate

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 Introduction

This document consists of 3 sections

4) Section I: In this part we shall be giving you 10 marker questions. These are supposed to be
somewhat direct and easy as compared to 15 marker questions
5) Section II: In this part we shall be giving you 15 marker questions. These are supposed to be little
complex or consisting of multiple sub-questions or may be an integrated question from concepts
of different chapters
6) Section III: There is one homework question for you to think and write. The answer for this
question will not be given by us.

Other Guidelines

5) The answers given here are not to be crammed. They are not given from the perspective of being
perfect answers. No answer is a perfect answer. If we ask 500 people to write answers to these
questions, then we will get 500 different answers and we cannot decide which one is perfect
answer. The answers given here is to help you guide towards the approach to answer writing.
6) The answers written here may exceed the word limit in some cases. But that is done intentionally,
so that you understand it better and in exam you can further summarize that information to
achieve the desired word-limit.
7) In certain answers, the content/points written may not be covered in the notes/videos. But that
is also done to make you realize that we cannot simply be bookish in writing answers, rather
some content/points need to be written from our understanding of things. This is called the
application part
8) We would recommend that questions to the answers should not be just read. What you shall do
is
A. For 2-3 questions, please write answer in your own words so that you get practice for
descriptive writing. Then try to match your answer with answer given by us and try to self-
evaluate
B. For the rest of the questions, try to make an outline as in what you will write in this answer.
Then try to match your outline with answer given by us and try to self-evaluate

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 Section I
10 Marks – 400 Words

Q.1) Discuss Herzberg’s theory of motivation and bring out its limitation.
Answer

Fredrick Herzberg and his associates developed the MOTIVATION HYGIENE THEORY,
commonly known as the two-factor theory, in the late 1960s. Herzberg and his associates
conducted research based on the interview of 200 engineers and accountants who looked
for 11 different firms in Pittsburgh area, U.S.A. Herzberg theory of motivation is based on 2
factors which are as follows:

1. Hygiene Factors: Hygiene factors are related to the external factors related to work. For
Example: Work infrastructure, salary, canteen facility, conveyance. These are also called
as maintenance factors which may not motivate people. They simply prevent
dissatisfaction and maintain status quo. Such factors do not produce positive results but
prevent negative results. If these factors are not there it will lead to job dissatisfaction.
2. Motivational Factors: These factors are intrinsic in nature and are related to the job. For
Example: Corporates like Microsoft is known as a great paymaster to prevent
dissatisfaction but at the same time hygiene factors are balanced with motivators such
as satisfactory work, self-recognition, and challenging tasks.

Herzberg’s theory is appreciated on the ground that it provides an insight into the task of
motivation by drawing attention to the job factors which are often overlooked. Thus.
However, this theory has some limitations which are as follows.

Critical analysis of theory:

1. Non-Conclusive: Herzberg study was limited to the engineers and accountants. The critics
say that this theory is not conclusive because of the limited set of people involved in
research. Professionals or the white-collar workers may like responsibility and challenging
jobs. But the general workers are motivated by pay and other benefits.
2. Methodology: Another criticism of this theory is directed at the method of research and
data collection. The interviewers were asked to report exceptionally good or

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 exceptionally bad job experience. This methodology is defective because such
information will always be subjective and biased.
3. Over Emphasis on Job Enrichment: This theory has given too much emphasis on job
enrichment and has totally ignored job satisfaction of the workers. He didn’t attach much
importance to pay, status or interpersonal relationships which are generally held as great
motivators. For Example: IAS topper Gaurav Agarwal find his first posting in rural area
more satisfying than his earlier job of investment banker, even if it does involve work of
very basic nature with respect to his authority & aptitude.

Keeping in view all these points we can conclude that Herzberg’s theory has been widely read
and there can be few people who are not in agreement with these recommendations. This
theory provides valuable guidelines to the managers for structuring their jobs in order to
include such factors in the jobs which bring satisfaction and motivation at workplace.

Q.2) What is motivation? How is it important in managing organization?

Answer

Motivation is defined as the process that initiates, guides, and maintains goal-oriented
behaviors. Motivation is what causes us to act, whether it is getting a glass of water or to
reduce weight or reading a book to clear RBI Grade B exam. In everyday usage, the term
motivation is frequently used to describe reasons for human actions.
For Example: Students put persistent efforts for 2 years to clear IIT entrance with the help of
motivation that they will get high package after passing out from IITs.

How it helps in managing the organization:

1. Boosting organizational morale: Motivation helps in boosting employee’s confidence

and keep them motivated towards daily work and monthly targets. Motivated work
force results in high organizational morale. For Example: Cognizant follow practice of
sending gifts to employees on their birthday. This leads to an emotional connect with
the company which boosts organizational morale.
2. Enhanced resource use efficiency: Motivated employees are enthusiastic at workplace
which can make them innovative towards using raw material, machineries and
production processes. For Example: Henry Ford cut the time taken to assemble a single

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 car from 12 hours to just 90 minutes. This could be possible due to employees being
motivated towards monetary benefits coming from profit due to reduced man hour.
3. Interdepartmental coordination: It is the sign of Healthy and cordial work culture.
Adequate level of motivation enhances the process of co-ordination which is the most
crucial thing in an organization behavior and management science. It reduces
bottlenecks in daily work and improves operational efficiency. For Example: Bajaj Auto
organizes interdepartmental sports events to improve interpersonal relations.
Encouraging sportsman spirit is one of the healthy ways to make people interact with
each other. This leads to better inter departmental assistance too.
4. Accepting organizational change: An organization must keep changing with the
changing environment, but many a times faced with a resistance to change. However, if
the employees are properly motivated, they accept, introduce, and implement these
changes keeping the organization on the right track of progress. For Example: Dena and
Vijaya Bank merger into Bank of Baroda was accepted by its employees because they
were motivated by chances of reduced customer load due to increased number of
branches under the ambit of Bank of Baroda. It will also create space for transfer of
employees in the branch which are nearby their hometown.
5. Low Employee Turnover: Welfare activities by corporates keeps employee motivated
which leads to loyalty of workforce. Integrity and commitment shown by motivated
employees results into better healthy work culture and operational efficiency. Thus,
helps in managing organization better. For Example: In TATA motors, employees serve
longer to the company. Attrition rate is minimal which reduces employee turnover of
the organization.

Thus, motivation leads to better employee efficiency which results into better organizational
output. Hence, motivation is an important factor in the management of an organization.

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 Q.3) What is reinforcement theory of motivation? What are the reinforcements
used by manager to motivate subordinates?

Answer

Reinforcement theory is the process of shaping behavior by controlling the consequences of

the behavior. In reinforcement theory a combination of rewards and/or punishments is used
to reinforce desired behavior or extinguish unwanted behavior. This theory is based on BF
Skinner’s behavior modification model. The reinforcement is of 2 types:

1. Positive reinforcement: This implies giving a positive response when an individual show
positive and required behavior. For Example: Employee of the year award in Sandvik for
achieving sales target.
2. Negative reinforcement: Negative reinforcement is a method that can be used to help
teach specific behaviors. With negative reinforcement, something uncomfortable or
otherwise unpleasant is taken away in response to a certain stimulus. For Example: If
you want an employee to be punctual then company may close breakfast 15 min before
office time so that employee come before time.

Here are some reinforcements through which managers can motivate their employees.

1. Praise: People want to know if they have done a good job. Positive feedback will make
an employee want to continue their performance in future tasks. For Example: Bajaj
Group has culture of annual event where employees are appreciated and rewarded for
their contribution to the organization.

2. Ensuring autonomy: People are happier and more motivated if they feel they are in
charge of their own actions. Your workers will enjoy their jobs more (and do better work)
if they have more freedom. For Example: Innovative companies like Google respects the
value of creative thinking and generally gives full autonomy in terms of working hours
and use of resources to employee to complete the given task.

3. Treat them with respect: Just treating your employees like they are intelligent adults
can help. Simply acting as if your workers are competent, sensible, and trustworthy can
be a powerful reinforcement.

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 There are some negative reinforcements also which are used by managers to remove
undesired behavior.

1. Nagging Your Employees: Constantly being reminded to be more productive, often seen
as nagging by employees. It is kind of a negative reinforcement technique. It may be used
intentionally or unintentionally; it creates a condition in which the employees are
subjected to pressure to perform better when they reach the desired productivity level.
For Example: In service-oriented companies like Blue Dart, managers take help of
nagging and follow up to ensure that employees are not investing time in activities other
than delivering couriers and daily targets are being achieved.
2. Leniency to improve efficiency: For instance, at a manufacturing company,
employees must attend work five days a week, eight hours a day. Sometimes people feel
lethargic to work. In such cases, to encourage greater productivity, a manager might reduce
work hours for the final week of the month. If employees meet a production goal before set
time limit, they won't have to spend as much time at work. This acts as a negative
reinforcement.

Thus, a manager can use such reinforcements to bring out the best from employees. Being
aware of such practices will help manager to work for organizational goals in better way.

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 Section II
15 Marks – 600 Words
Q.1) “non-financial incentives are as strong motivators as financial ones.”
Examine the statement in the context of various financial and nonfinancial
incentives.

Answer

Every employee certainly appreciates more money, but money does not buy happiness, nor
does it buy employee loyalty. On the other hand, Non-financial incentives inspire and engage
employees in ways that money is incapable of doing. So, the comparison between financial
and non-financial incentives swings both ways and needs to be examined on the basis of
management techniques prescribed by management philosophies.

Maslow’s argument in comparing financial and non-financial incentives:

As per Maslow, financial incentives fulfill lower order needs. This refers to the salary to
manage household expenses, car to ensure mobility and comfort of the family, house to lead
comfortable life. However, Maslow’s theory of motivation also suggests that after certain
time once the lower order needs are fulfilled an individual does not get motivated by financial
incentives. Higher order needs like self-esteem and self-actualization are activated when an
employee enters into seniority phase.

For Example: Arundhati Bhattacharya, former SBI Chairman was motivated by the handsome
salary, comfortable working conditions, and various allowances in the beginning of her
career. But, as she climbed up the ladder, she was least concerned about money and was
motivated by challenging assignments, powerful designation, and self-satisfaction. This
shows how same person can have different motivating factors at different time in life.

Vroom’s Take on Motivators:

As per the philosophy of Vroom, employee is motivated by Expectancy, Instrumentality and

Valence. This valence which refers to the anticipated satisfaction from reward. Vroom also
argues that, the value that an individual place on reward depends on needs, goals and
attitude of an individual. Based on this argument, some employee can get motivated by salary

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 hike or promotion and some get motivated by best employee award which can bring him/her
recognition and respect in the organization.

Herzberg View on motivation:

As per Herzberg, financial incentives act as hygiene factors which can prevent an employee
from dissatisfaction but may not motivate him/her. However, motivating factors like work
satisfaction, recognition can motivate employee but may not keep him satisfied. Thus, as per
Herzberg, both financial and non-financial incentives play important role in balancing
motivation and satisfaction among employees.

Adam’s stance on the comparison:

Adam’s equity theory says that employees get motivated by both, the financial and non-
financial incentives. However, the moment he compares his incentive with the one who is
placed at equal hierarchy in same organization his motivation gets affected.

Even if a person is getting best possible promotion/recognition/salary, he is vulnerable to get

demotivated if compares himself with comparable human being in the society in which he
lives. Thus, the attitude of comparison and greed of humans will have significant bearing on
the motivation level of an individual.

Empirical evidence:

McKinsey & Company report in 2009, shows that non-financial incentives were rated as more
powerful motivators. However, sample set for such survey is challenged on various grounds.
Level of motivation depends on various factors such as

1. Socio Economic Background: Employee who come in Audi to office cannot be

motivated by salary hike and a person who don’t have house to live cannot be
motivated by recognition and appreciation.
2. Industry Type: IT industry people are ready to compromise salary if they get little
more peace of mind. Whereas people in government job can aspire for better salary.
3. National Culture: Countries also decode the level of motivation and motivating
factors. People in Nordic countries have limited population. Social infrastructure is
strong there which reduces the out-of-pocket expenditure. Hence, people may not get
that much motivated by financial incentives. Whereas countries like India, Pakistan,
people have number of expense (health, local bus, petrol, house EMI, car EMI, parent
medication, school fees etc.). Financial motivator plays major role in developing and
poor countries.

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 So, comparison between financial and non-financial motivators shows that both are equally
good and varies as per individual need. A manger must identify the need of the employee to
decide right kind of reinforcement.

Q.2) Explain the theory X and theory Y of motivation.

Answer

Motivation plays a crucial role in the realm of management and organizational behavior,
influencing employee performance, job satisfaction, and overall productivity. In the mid-20th
century, renowned social psychologist Douglas McGregor introduced two contrasting
theories of motivation known as Theory X and Theory Y. These theories offer distinct
perspectives on how managers perceive and interact with their employees, which
subsequently shapes organizational practices and outcomes.

In the same regard, here is a brief explanation of theory X and theory Y

Theory X: Assumptions and Implications

Theory X represents a traditional and more authoritarian perspective on employee

motivation. It is grounded in the belief that individuals inherently dislike work and will avoid
it whenever possible. Managers who adhere to Theory X assumptions tend to exercise close
control and supervision over their employees, viewing them as inherently lazy, unmotivated,
and in need of constant direction. Key assumptions and implications of Theory X include:

1. Work Aversion: According to Theory X, employees inherently lack ambition and prefer
to avoid work whenever possible. They need to be coerced, controlled, and even
threatened with punishment to ensure they meet organizational goals.

2. Extrinsic Motivation: Managers who embrace Theory X tend to rely heavily on

extrinsic motivators such as monetary rewards, punishments, and strict rules to
ensure compliance and performance.

3. Hierarchical Control: In organizations following Theory X principles, a top-down

management approach prevails, with a focus on micromanagement, centralized
decision-making, and minimal employee involvement in strategic matters.

Theory Y: Assumptions and Implications

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 In contrast to Theory X, Theory Y presents a more participative and humanistic approach to
employee motivation. It is grounded in the belief that employees are inherently motivated,
creative, and capable of self-direction when provided with the right conditions. Managers
who embrace Theory Y assumptions tend to foster a collaborative and empowering work
environment. Key assumptions and implications of Theory Y include:

1. Inherent Motivation: Theory Y asserts that employees have a natural inclination

towards work and can find satisfaction in achieving organizational goals. They seek
opportunities to contribute creatively and take ownership of their tasks.

2. Intrinsic Motivation: Managers following Theory Y principles emphasize intrinsic

motivators such as autonomy, mastery, and purpose, aiming to tap into employees'
self-driven efforts and aspirations.

3. Participative Decision-Making: Theory Y promotes participative decision-making,

where employees are involved in discussions and choices that affect their work. This
approach fosters a sense of ownership and commitment.

Relevance and Application in Contemporary Management

• While both Theory X and Theory Y have been instrumental in shaping managerial
approaches over the years, contemporary management practices have evolved to
incorporate elements from both theories. The rigid dichotomy between the two
theories has given way to a more nuanced understanding of employee motivation and
behavior. Organizations recognize that individuals can exhibit characteristics from
both Theory X and Theory Y depending on the situation, context, and personal
preferences.
• In today's dynamic and diverse work environment, effective managers understand the
importance of tailoring their approach to individual employees and situations. They
recognize that a one-size-fits-all approach to motivation is inadequate. Instead, a
balanced approach that combines elements of both theories can lead to optimal
outcomes. For example, managers may apply Theory X principles when immediate
compliance is necessary, such as in safety protocols, while embracing Theory Y
principles when fostering creativity and innovation.

Theory X and Theory Y offer contrasting perspectives on employee motivation that have
significantly influenced management practices over the years. Theory X portrays employees
as inherently lazy and unmotivated, while Theory Y views them as naturally motivated and
creative. However, the evolution of management thinking has led to a more integrated

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 approach that recognizes the complexity of human behavior and the need to adapt
management strategies to various contexts. Contemporary management practices
emphasize the importance of intrinsic motivation, participative decision-making, and
individualized approaches to achieve organizational success while prioritizing employee well-
being and engagement. As organizations continue to evolve, the lessons from Theory X and
Theory Y serve as a foundation for creating motivating and inclusive work environments that
drive performance and innovation.

Q.3) Explain why motivation is a key ingredient in the success of an

organization.

Answer

Motivation stands as a cornerstone of organizational success, wielding a profound influence

on employee performance, engagement, and overall productivity. In the intricate tapestry of
modern business, motivation is not merely a fleeting sentiment; it is a dynamic force that
drives individuals to push boundaries, achieve goals, and contribute meaningfully to the
attainment of an organization's objectives.

In the same regard, here are a few points that explain why motivation is a key ingredient in
the success of an organization.

1.Enhanced Employee Engagement and Productivity: Motivation is directly linked to

employee engagement, a critical factor in determining the productivity of an organization.
When employees are motivated, they feel a sense of purpose and ownership in their work.
This intrinsic drive compels them to invest their time and effort into their tasks, resulting in
heightened productivity levels. For instance, Google is renowned for its unique approach to
motivation, allowing employees to spend 20% of their work time on personal projects of
interest. This practice fosters creativity, leading to innovations such as Gmail and Google
Maps, which have significantly contributed to the company's success.

2.Improved Job Satisfaction and Retention: Organizations that prioritize motivation tend to
foster a positive work environment that values employee well-being and job satisfaction.
When employees feel motivated, they experience a greater sense of fulfillment, leading to
higher levels of job satisfaction. An exemplar of this principle is Zappos, an online retailer,
where employees are encouraged to exhibit creativity and individuality. The company's
commitment to fostering a motivating workplace has led to exceptionally low turnover rates
and a reputation for outstanding customer service.

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 3.Stimulated Innovation and Creativity: Motivation is a catalyst for innovation and creativity,
as it encourages employees to think outside the box and explore novel solutions to
challenges. When individuals are motivated, they are more inclined to take risks and
experiment with new ideas. Apple Inc. provides a prime illustration of this concept. Steve
Jobs' unwavering passion and motivation to create revolutionary products like the iPhone
and iPad not only transformed Apple into a global giant but also reshaped entire industries.

4.Alignment with Organizational Goals: Motivated employees are more likely to align their
personal goals with the organization's objectives. They understand how their efforts
contribute to the bigger picture and are invested in the company's success. For instance,
Tesla's mission to accelerate the world's transition to sustainable energy resonates deeply
with its employees, fostering a strong sense of purpose and motivation. This alignment
empowers employees to go the extra mile, resulting in the rapid growth and influence of the
company.

5. Effective Leadership and Communication: Motivation is intricately linked to effective

leadership and communication within an organization. Leaders who understand the power
of motivation can inspire and influence their teams to achieve exceptional results. A leader's
ability to articulate a compelling vision and create a supportive environment can ignite
motivation at all levels. The transformational leadership style of Indra Nooyi, former CEO of
PepsiCo, exemplifies this principle. Nooyi's visionary leadership and commitment to
employee development contributed to the company's global success and enduring legacy.

Motivation is undeniably a key ingredient in the success of an organization. Its far-reaching

impact encompasses enhanced employee engagement and productivity, improved job
satisfaction and retention, stimulated innovation and creativity, alignment with
organizational goals, effective leadership and communication, adaptability and resilience,
and the fostering of a culture of continuous improvement. By cultivating a motivated
workforce, organizations can unlock their full potential, navigate challenges with agility, and
embark on a trajectory of sustainable growth and prosperity. As organizations continue to
evolve, the importance of motivation remains steadfast, serving as a cornerstone for
achieving excellence in today's competitive business landscape.

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 Section III
Homework Question

Q) Write about the difference between theory X and theory Y of motivation?

(10 marks, 400 words)

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