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Motivation Internal and external factors that stimulate desire and energy in people to be continually interested in and committed

to a job, role, or subject, and to exert persistent effort in attaining a goal (1) intensity of desire or need, (2) incentive or reward value of the goal, and (3) expectations of the individual and of his or her significant others. Importance of Motivation y Puts human resources into action Every concern requires physical, financial and human resources to accomplish the goals. It is through motivation that the human resources can be utilized by making full use of it. This can be done by building willingness in employees to work. This will help the enterprise in securing best possible utilization of resources. y Improves level of efficiency of employees The level of a subordinate or a employee does not only depend upon his qualifications and abilities. For getting best of his work performance, the gap between ability and willingness has to be filled which helps in improving the level of performance of subordinates. This will result intoa. Increase in productivity, b. Reducing cost of operations, and c. Improving overall efficiency. y Leads to achievement of organizational goals The goals of an enterprise can be achieved only when the following factors take place :a. b. c. d. There is best possible utilization of resources, There is a co-operative work environment, The employees are goal-directed and they act in a purposive manner, Goals can be achieved if co-ordination and co-operation takes place simultaneously which can be effectively done through motivation.

y Builds friendly relationship Motivation is an important factor which brings employees satisfaction. This can be done by keeping into mind and framing an incentive plan for the benefit of the employees. This could initiate the following things: a. Monetary and non-monetary incentives, b. Promotion opportunities for employees, c. Disincentives for inefficient employees. In order to build a cordial, friendly atmosphere in a concern, the above steps should be taken by a manager. This would help in: 1

i. ii. iii. iv. v.

Effective co-operation which brings stability, Industrial dispute and unrest in employees will reduce, The employees will be adaptable to the changes and there will be no resistance to the change, This will help in providing a smooth and sound concern in which individual interests will coincide with the organizational interests, This will result in profit maximization through increased productivity.

y Leads to stability of work force Stability of workforce is very important from the point of view of reputation and goodwill of a concern. The employees can remain loyal to the enterprise only when they have a feeling of participation in the management. The skills and efficiency of employees will always be of advantage to employees as well as employees. This will lead to a good public image in the market which will attract competent and qualified people into a concern. As it is said, Old is gold which suffices with the role of motivation here, the older the people, more the experience and their adjustment into a concern which can be of benefit to the enterprise. Maslow s needs theory

Physiological needs

For the most part, physiological needs are obvious they are the literal requirements for human survival. If these requirements are not met, the human body simply cannot continue to function. Air, water, and food are metabolic requirements for survival in all animals, including humans. Clothing and shelter provide necessary protection from the elements. The intensity of the human

sexual instinct is shaped more by sexual competition than maintaining a birth rate adequate to survival of the species.
Safety needs

With their physical needs relatively satisfied, the individual's safety needs take precedence and dominate behavior. These needs have to do with people's yearning for a predictable orderly world in which perceived unfairness and inconsistency are under control, the familiar frequent and the unfamiliar rare. In the world of work, these safety needs manifest themselves in such things as a preference for job security, grievance procedures for protecting the individual from unilateral authority, savings accounts, insurance policies, reasonable disability accommodations, and the like. Safety and Security needs include:
y y y y

Personal security Financial security Health and well-being Safety net against accidents/illness and their adverse impacts

Love and belonging

After physiological and safety needs are fulfilled, the third layer of human needs are social and involve feelings of belongingness. This aspect of Maslow's hierarchy involves emotionally based relationships in general, such as:
y y y

Friendship Intimacy Family

Humans need to feel a sense of belonging and acceptance, whether it comes from a large social group, such as clubs, office culture, religious groups, professional organizations, sports teams, gangs, or small social connections (family members, intimate partners, mentors, close colleagues, confidants). They need to love and be loved (sexually and non-sexually) by others. In the absence of these elements, 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 peer pressure; an anorexic, for example, may ignore the need to eat and the security of health for a feeling of control and belonging.[citation needed]
Esteem

All humans have a need to be respected and to have self-esteem and self-respect. Also known as the belonging need, esteem presents the normal human desire to be accepted and valued by others. People need to engage themselves to gain recognition and have an activity or activities that give the person a sense of contribution, to feel accepted and self-valued, be it in a profession or hobby. Imbalances at this level can result in low self-esteem or an inferiority complex. People
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with low self-esteem need respect from others. They may seek fame or glory, which again depends on others. Note, however, that many people with low self-esteem will not be able to improve their view of themselves simply by receiving fame, respect, and glory externally, but must first accept themselves internally. Psychological imbalances such as depression can also prevent one from obtaining self-esteem on both levels. Most people have a need for a stable self-respect and self-esteem. Maslow noted two versions of esteem needs, a lower one and a higher one. The lower one is the need for the respect of others, the need for status, recognition, fame, prestige, and attention. The higher one is the need for selfrespect, the need for strength, competence, mastery, self-confidence, independence and freedom. The latter one ranks higher because it rests more on inner competence won through experience. Deprivation of these needs can lead to an inferiority complex, weakness and helplessness. Maslow also states that even though these are examples of how the quest for knowledge is separate from basic needs he warns that these two hierarchies are interrelated rather than sharply separated (Maslow 97). This means that this level of need, as well as the next and highest level, are not strict, separate levels but closely related to others, and this is possibly the reason that these two levels of need are left out of most textbooks.
Self-actualization

What a man can be, he must be.[8] This forms the basis of the perceived need for selfactualization. This level of need pertains to what a person's full potential is and realizing that potential. Maslow describes this desire as the desire to become more and more what one is, to become everything that one is capable of becoming.[9] This is a broad definition of the need for self-actualization, but when applied to individuals the need is specific. For example one individual may have the strong desire to become an ideal parent, in another it may be expressed athletically, and in another it may be expressed in painting, pictures, or inventions.[10] As mentioned before, in order to reach a clear understanding of this level of need one must first not only achieve the previous needs, physiological, safety, love, and esteem, but master these needs. Two-factor theory distinguishes between:
y

Motivators (e.g., challenging work, recognition, responsibility) that give positive satisfaction, arising from intrinsic conditions of the job itself, such as recognition, achievement, or personal growth,[4] and Hygiene factors (e.g. status, job security, salary, fringe benefits, work conditions) that do not give positive satisfaction, though dissatisfaction results from their absence. These are extrinsic to the work itself, and include aspects such as company policies, supervisory practices, or wages/salary.[4][5]

Essentially, hygiene factors are needed to ensure an employee is not dissatisfied. Motivation factors are needed to motivate an employee to higher performance. Herzberg also further classified our actions and how and why we do them, for example, if you perform a work related

action because you have to then that is classed as movement, but if you perform a work related action because you want to then that is classed as motivation. Unlike Maslow, who offered little data to support his ideas, Herzberg and others have presented considerable empirical evidence to confirm the motivation-hygiene theory, although their work has been criticized on methodological grounds.

In 1959, Frederick Herzberg, a behavioural scientist proposed a two-factor theory or the motivator-hygiene theory. According to Herzberg, there are some job factors that result in satisfaction while there are other job factors that prevent dissatisfaction. According to Herzberg, the opposite of Satisfaction is No satisfaction and the opposite of Dissatisfaction is No Dissatisfaction.

FIGURE: Herzberg s view of satisfaction and dissatisfaction

Herzberg classified these job factors into two categoriesa. Hygiene factors- Hygiene factors are those job factors which are essential for existence of motivation at workplace. These do not lead to positive satisfaction for long-term. But if these 5

factors are absent / if these factors are non-existant at workplace, then they lead to dissatisfaction. In other words, hygiene factors are those factors which when adequate / reasonable in a job, pacify the employees and do not make them dissatisfied. These factors are extrinsic to work. Hygiene factors are also called as dissatisfiers or maintenance factors as they are required to avoid dissatisfaction. These factors describe the job environment / scenario. The hygiene factors symbolized the physiological needs which the individuals wanted and expected to be fulfilled. Hygiene factors include: y Pay- The pay or salary structure should be appropriate and reasonable. It must be equal and competitive to those in the same industry in the same domain. y Company Policies and administrative policies- The company policies should not be too rigid. They should be fair and clear. It should include flexible working hours, dress code, breaks, vacation, etc. y Fringe benefits- The employees should be offered health care plans (mediclaim), benefits for the family members, employee help programmes, etc. y Physical Working conditions- The working conditions should be safe, clean and hygienic. The work equipments should be updated and well-maintained. y Status- The employees status within the organization should be familiar and retained. y Interpersonal relations-The relationship of the employees with his peers, superiors and subordinates should be appropriate and acceptable. There should be no conflict or humiliation element present. y Job Security- The organization must provide job security to the employees. b. Motivational factors- According to Herzberg, the hygiene factors cannot be regarded as motivators. The motivational factors yield positive satisfaction. These factors are inherent to work. These factors motivate the employees for a superior performance. These factors are called satisfiers. These are factors involved in performing the job. Employees find these factors intrinsically rewarding. The motivators symbolized the psychological needs that were perceived as an additional benefit. Motivational factors include: y Recognition- The employees should be praised and recognized for their accomplishments by the managers. y Sense of achievement- The employees must have a sense of achievement. This depends on the job. There must be a fruit of some sort in the job. y Growth and promotional opportunities- There must be growth and advancement opportunities in an organization to motivate the employees to perform well. y Responsibility- The employees must hold themselves responsible for the work. The managers should give them ownership of the work. They should minimize control but retain accountability. y Meaningfulness of the work- The work itself should be meaningful, interesting and challenging for the employee to perform and to get motivated.

Limitations of Two-Factor Theory The two factor theory is not free from limitations: 1. The two-factor theory overlooks situational variables. 2. Herzberg assumed a correlation between satisfaction and productivity. But the research conducted by Herzberg stressed upon satisfaction and ignored productivity.

3. The theory s reliability is uncertain. Analysis has to be made by the raters. The raters may spoil the findings by analyzing same response in different manner. 4. No comprehensive measure of satisfaction was used. An employee may find his job acceptable despite the fact that he may hate/object part of his job. 5. The two factor theory is not free from bias as it is based on the natural reaction of employees when they are enquired the sources of satisfaction and dissatisfaction at work. They will blame dissatisfaction on the external factors such as salary structure, company policies and peer relationship. Also, the employees will give credit to themselves for the satisfaction factor at work. 6. The theory ignores blue-collar workers. Despite these limitations, Herzberg s Two-Factor theory is acceptable broadly.

Similarities to Maslow's Needs Hierarchy


After the original formulation of Maslow's Hierarchy of Needs, studies had shown that the middle levels of Maslow's hierarchy overlap. Alderfer addressed this issue by reducing the number of levels to three. The letters ERG represent these three levels of needs:
y y y

Existence refers to our concern with basic material existence motivators. Relatedness refers to the motivation we have for maintaining interpersonal relationships. Growth refers to an intrinsic desire for personal development.

Like Maslow's model, the ERG motivation is hierarchical, and creates a pyramid or triangle appearance. Existence needs motivate at a more fundamental level than relatedness needs, which, in turn supercedes growth needs.

Growth
Self-Actualization

External Esteem Needs

Relatedness
Internal Esteem Needs

Social Needs

Existence
Safety Needs

Physiological Needs

Differences from Maslow's Needs Hierarchy


Beyond simply reducing the distinction between overlapping needs, the ERG theory improves upon the following shortcomings of Maslow's Needs Hierarchy:
y

Alderfers ERG theory demonstrates that more than one need may motivate at the same time. A lower motivator need not be substantially satisfied before one can move onto higher motivators. The ERG theory also accounts for differences in need preferences between cultures better than Maslow's Need Hierarchy; the order of needs can be different for different people. This flexibility accounts for a wider range of observed behaviors. For example, it can explain the "starving artist" who may place growth needs above those of existence. The ERG theory acknowledges that if a higher-order need is frustrated, an individual may regress to increase the satisfaction of a lower-order need which appears easier to satisfy. This is known as the frustration-regression principle.

Expectancy Theory
Expectancy Theory proposes that a person will decide to behave or act in a certain way because they are motivated to select a specific behavior over other behaviors due to what they expect the result of that selected behavior will be.[1] In essence, the motivation of the behavior selection is determined by the desirability of the outcome.
y y y

Valence: The value of the perceived outcome (What's in it for me?) Instrumentality: The belief that if I complete certain actions then I will achieve the outcome. (Clear path?) Expectancy: The belief that I am able to complete the actions. (My capability?)

Porter- Lawyer theory Porter and Lawler used Victor Vrooms expectancy theory as a foundation to develop their expectancy model. Similar to Vrooms theory Porter and Lawler concluded that an individuals motivation to complete a task is affected by the reward they expect to receive for completing the task. However Porter and Lawler introduced additional aspects to the expectancy theory. Reward Porter and Lawler categorised the reward as intrinsic and extrinsic Intrinsic rewards are the positive feelings that the individual experiences from completing the task e.g. satisfaction, sense of achievement. Extrinsic rewards are rewards emanating from outside the individual such as bonus, commission and pay increases. Porter and Lawlers model suggested that an individuals view regarding the attractiveness and fairness of the rewards will affect motivation. Ability & Perception Porter and Lawler said that motivation is also affected by
1. the individual s ability to perform the task and 2. their perception of the task Goal Setting theory

This theory states that goal setting is essentially linked to task performance. It states that specific and challenging goals along with appropriate feedback contribute to higher and better task performance. In simple words, goals indicate and give direction to an employee about what needs to be done and how much efforts are required to be put in. The important features of goalsetting theory are as follows:
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 The willingness to work towards attainment of goal is main source of job motivation. Clear, particular and difficult goals are greater motivating factors than easy, general and vague goals.  Specific and clear goals lead to greater output and better performance. Unambiguous, measurable and clear goals accompanied by a deadline for completion avoids misunderstanding.  Goals should be realistic and challenging. This gives an individual a feeling of pride and triumph when he attains them, and sets him up for attainment of next goal. The more challenging the goal, the greater is the reward generally and the more is the passion for achieving it.  Better and appropriate feedback of results directs the employee behaviour and contributes to higher performance than absence of feedback. Feedback is a means of gaining reputation, making clarifications and regulating goal difficulties. It helps employees to work with more involvement and leads to greater job satisfaction.  Employees participation in goal is not always desirable.  Participation of setting goal, however, makes goal more acceptable and leads to more involvement.  Goal setting theory has certain eventualities such as: a. Self-efficiency- Self-efficiency is the individuals self-confidence and faith that he has potential of performing the task. Higher the level of self-efficiency, greater will be the efforts put in by the individual when they face challenging tasks. While, lower the level of self-efficiency, less will be the efforts put in by the individual or he might even quit while meeting challenges. b. Goal commitment- Goal setting theory assumes that the individual is committed to the goal and will not leave the goal. The goal commitment is dependent on the following factors: i. Goals are made open, known and broadcasted. ii. Goals should be set-self by individual rather than designated. iii. Individuals set goals should be consistent with the organizational goals and vision.

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Theory X and Y

In his 1960 book, The Human Side of Enterprise, Douglas McGregor proposed two theories by which to view employee motivation. He avoided descriptive labels and simply called the theories Theory X and Theory Y. Both of these theories begin with the premise that management's role is to assemble the factors of production, including people, for the economic benefit of the firm. Beyond this point, the two theories of management diverge.
Theory X

Theory X assumes that the average person:


y y y y y

Dislikes work and attempts to avoid it. Has no ambition, wants no responsibility, and would rather follow than lead. Is self-centered and therefore does not care about organizational goals. Resists change. Is gullible and not particularly intelligent.

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Essentially, Theory X assumes that people work only for money and security.
Theory Y

The higher-level needs of esteem and self-actualization are continuing needs in that they are never completely satisfied. As such, it is these higher-level needs through which employees can best be motivated. Theory Y makes the following general assumptions:
y y y y y

Work can be as natural as play and rest. People will be self-directed to meet their work objectives if they are committed to them. People will be committed to their objectives if rewards are in place that address higher needs such as self-fulfillment. Under these conditions, people will seek responsibility. Most people can handle responsibility because creativity and ingenuity are common in the population.

Under these assumptions, there is an opportunity to align personal goals with organizational goals by using the employee's own quest for fulfillment as the motivator. McGregor stressed that Theory Y management does not imply a soft approach. McGregor recognized that some people may not have reached the level of maturity assumed by Theory Y and therefore may need tighter controls that can be relaxed as the employee develops.

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