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Sakina Siraj Bootwala Reshma Singh Praful Anil Uberoi

02 10 12

THEORY X Employees inherently do not like work and whenever possible, will attempt to avoid it. Because employees dislike work, they have to be forced, pressurized or threatened with punishment to achieve goals. Employees avoid responsibilities and do not work till formal directions are issued. Most workers place a greater importance on security over all other factors and display little ambition.

Theory Y Physical and mental effort at work is as natural as rest or play. People do exercise self-control and selfdirection and if they are committed to those goals. Average human beings are willing to take responsibility and exercise imagination, intelligence and creativity in solving the problems of the organization. That the way the things are organized, the average human beings brainpower is only partly used.

ASSUMPTION On analysis of the assumptions it can be detected that theory X assumes that lower-order needs dominate individuals and theory Y assumes that higher-order needs dominate individuals. An organization that is run on Theory X lines tends to be authoritarian in nature.


McClelland has developed a theory on three types of motivating needs :

1. Need for Power 2. Need for Affiliation 3. Need for Achievement

Need for Power Basically people for high need for power are inclined towards influence and control. They like to be at the center and are good orators. They are demanding in nature, forceful in manners and ambitious in life. They can be motivated to perform if they are given key positions or power positions.

Need for Affiliation In the second category are the people who are social in nature. They try to affiliate themselves with individuals and groups. They are driven by love and faith. They like to build a friendly environment around themselves. Social recognition and affiliation with others provides them motivation.

Need for Achievement People in the third area are driven by the challenge of success and the fear of failure. Their need for achievement is reasonable and they set for themselves moderately difficult tasks. They are analytical in nature and take calculated risks. Such people are motivated to perform when they see at least some chances of success.

Theory states that an individual tends to act in a certain way based on the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual Expectancy (effort-performance linkage) perceived probability that exerting a given amount of effort will lead to a certain level of performance Instrumentality (performance-reward linkage) strength of belief that performing at a particular level is instrumental in attaining an outcome Valence - attractiveness or importance of the potential outcome

Individual Effort

Individual Performance

Organizational Rewards

Individual Goals


= Effort-performance linkage = Performance-reward linkage = Attractiveness

Theory emphasizes rewards

 Organizational rewards must align with the individuals wants

No universal principle for explaining what motivates individuals

 Managers must understand why employees view certain outcomes as attractive or unattractive

Most comprehensive and widely accepted explanation of employee motivation

Intention to work toward a goal is a major source of job motivation Specific goals increase performance
o Difficult goal, when accepted, results in higher performance than does an easy goal o Specific hard goals produce a higher level of output than does the generalized goal of do your best

Participation in goal setting is useful

o Reduces resistance to accepting difficult goals o Increases goal acceptance

Feedback is useful
o Helps identify discrepancies between what has been accomplished and what needs to be done o Self-generated feedback is a powerful motivator

Contingencies in goal-setting theory

Goal Commitment - theory presupposes that individual is determined to accomplish the goal Most likely to occur when: Goals are made public Individual has an internal locus of control Goals are self-set rather than assigned

Self-efficacy An individuals belief that s/he is capable of

performing a task

higher self-efficacy, greater motivation to attain goals  National Culture Theory is culture bound

 Main ideas align with North American cultures  Goal setting may not lead to higher performance in other cultures

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