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    2.4 Motivation Process.

    1. Identification of need2. Tension3. Course of action4. ResultPositive/Negative5. Feed back

    2.5 Theories of Motivation.

    Understanding what motivated employees and how they were motivated was the focus of many

    researchers following the publication of the Hawthorne study results (Terpstra, 1979). The major

    approaches that have led to our understanding of motivation are Mcclellands Achievement Need

    Theory, Behavior Modification theory; Abraham H Mallows need hierarchy or Deficient theory

    of motivation, ERG theory of motivation, Herzbergs motivation-hygiene theory, J.S. Adams

    Equity Theory, Vrooms Expectation Theory, Two factor Theory.

    2.5.1 McClellands Achievement Need Theory.

    In his acquired-needs theory, David McClelland proposed that an individual's specific needs are

    acquired over time and are shaped by one's life experiences. Most of these needs can be classed

    as eitherachievement, affiliation, orpower. A person's motivation and effectiveness in certain

    job functions are influenced by these three needs. McClelland's theory sometimes is referred to

    as the three need theory or as the learned needs theory.

    Achievement

    People with a high need for achievement (nAch) seek to excel and thus tend to avoid both low-

    risk and high-risk situations. Achievers avoid low-risk situations because the easily attained

    success is not a genuine achievement. In high-risk projects, achievers see the outcome as one of

    chance rather than one's own effort. High nAch individuals prefer work that has a moderate

    probability of success, ideally a 50% chance. Achievers need regular feedback in order to

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    monitor the progress of their achievements. They prefer either to work alone or with other high

    achievers.

    Affiliation

    Those with a high need for affiliation (nAff) need harmonious relationships with other people

    and need to feel accepted by other people. They tend to conform to the norms of their work

    group. High nAff individuals prefer work that provides significant personal interaction. They

    perform well in customer service and client interaction situations.

    Power

    A person's need for power (nPow) can be one of two types - personal and institutional. Thosewho need personal power want to direct others, and this need often is perceived as undesirable.

    Persons who need institutional power (also known as social power) want to organize the efforts

    of others to further the goals of the organization. Managers with a high need for institutional

    power tend to be more effective than those with a high need for personal power.

    Thematic Apperception Test

    McClelland used the Thematic Apperception Test (TAT) as a tool to measure the individualneeds of different people. The TAT is a test of imagination that presents the subject with a series

    of ambiguous pictures, and the subject is asked to develop a spontaneous story for each picture.

    The assumption is that the subject will project his or her own needs into the story.

    Psychologists have developed fairly reliable scoring techniques for the Thematic Apperception

    Test. The test determines the individual's score for each of the needs of achievement, affiliation,

    and power. This score can be used to suggest the types of jobs for which the person might be

    well suited.

    Implications for Management

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    People with different needs are motivated differently.

    High need for achievement- High achievers should be given challenging projects withreachable goals. They should be provided frequent feedback. While money is not an

    important motivator, it is an effective form of feedback.

    High need for affiliation - Employees with a high affiliation need perform best in acooperative environment.

    High need for power- Management should provide power seekers the opportunity tomanage others.

    Note that McClelland's theory allows for the shaping of a person's needs; training programs can

    be used to modify one's need profile.

    2.5.2 Behavioral Modification Theory;

    According to this theory people behavior is the outcome of favorable and unfavorable past

    circumstances. This theory is based on learning theory. Skinner conducted his researches among

    rats and school children. He found that stimulus for desirable behavior could be strengthened by

    rewarding it at the earliest. In the industrial situation, this relevance of this theory may be foundin the installation of financial and non financial incentives.

    More immediate is the reward and stimulation or it motivates it. Withdrawal of reward incase of

    low standard work may also produce the desired result. However, researches show that it is

    generally more effective to reward desired behavior than to punish undesired behavior.

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    2.5.3 Abraham H Maslow Need Hierarchy or Deficient theory of Motivation.

    The intellectual basis for most of motivation thinking has been provided by behavioral scientists,

    A.H Maslow and Frederick Heizberg, whose published works are the Bible of Motivation.

    Although Maslow himself did not apply his theory to industrial situation, it has wide impact for

    beyond academic circles. Douglous Mac Gregor has used Maslows theory to interpret specific

    problems in personnel administration and industrial relations.

    The crux of Maslows theory is that human needs are arranged in hierarchy composed of five

    categories. The lowest level needs are physiological and the highest levels are the self

    actualization needs. Maslow starts with the formation that man is a wanting animal with a

    hierarchy of needs of which some are lower ins scale and some are in a higher scale or system of

    values. As the lower needs are satisfied, higher needs emerge. Higher needs cannot be satisfied

    unless lower needs are fulfilled. A satisfied need is not a motivator. This resembles the standard

    economic theory of diminishing returns. The hierarchy of needs at work in the individual is today

    a routine tool of personnel trade and when these needs are active, they act as powerful

    conditioners of behavior- as Motivators.

    Hierarchy of needs; the main needs of men are five. They are physiological needs, safety needs,

    social needs, ego needs and self actualization needs, as shown in order of their importance.

    Self-

    Actualization

    Ego Needs

    Social Needs

    Safety Needs

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    The above five basic needs are regarded as striving needs which make a person do things. The

    first model indicates the ranking of different needs. The second is more helpful in indicating how

    the satisfaction of the higher needs is based on the satisfaction of lower needs. It also shows how

    the number of person who has experienced the fulfillment of the higher needs gradually tapers

    off.

    Physiological or Body Needs: - The individual move up the ladder responding first to the

    physiological needs for nourishment, clothing and shelter. These physical needs must be equated

    with pay rate, pay practices and to an extent with physical condition of the job.

    Safety: - The next in order of needs is safety needs, the need to be free from danger, either from

    other people or from environment. The individual want to assured, once his bodily needs are

    satisfied, that they are secure and will continue to be satisfied for foreseeable feature. The safety

    needs may take the form of job security, security against disease, misfortune, old age etc as also

    against industrial injury. Such needs are generally met by safety laws, measure of social security,

    protective labor laws and collective agreements.

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    Social needs: - Going up the scale of needs the individual feels the desire to work in a cohesive

    group and develop a sense of belonging and identification with a group. He feels the need to love

    and be loved and the need to belong and be identified with a group. In a large organization it is

    not easy to build up social relations. However close relationship can be built up with at least

    some fellow workers. Every employee wants too feel that he is wanted or accepted and that he is

    not an alien facing a hostile group.

    Ego or Esteem Needs: - These needs are reflected in our desire for status and recognition,

    respect and prestige in the work group or work place such as is conferred by the recognition of

    ones merit by promotion, by participation in management and by fulfillment of workers urge for

    self expression. Some of the needs relate to ones esteem

    e.g.; need for achievement, self confidence, knowledge, competence etc. On the job, this means

    praise for a job but more important it means a feeling by employee that at all times he has the

    respect of his supervisor as a person and as a contributor to the organizational goals.

    Self realization or Actualization needs: - This upper level need is one which when satisfied

    provide insights to support future research regarding strategic guidance for organization that are

    both providing and using reward/recognition programs makes the employee give up the

    dependence on others or on the environment. He becomes growth oriented, self oriented,

    directed, detached and creative. This need reflects a state defined in terms of the extent to which

    an individual attains his personnel goal. This is the need which totally lies within oneself and

    there is no demand from any external situation or person.

    Implications for Management

    If Maslow's theory holds, there are some important implications for management. There are

    opportunities to motivate employees through management style, job design, company events, and

    compensation packages, some examples of which follow:

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    Physiological needs: Provide lunch breaks, rest breaks, and wages that are sufficient topurchase the essentials of life.

    Safety Needs: Provide a safe working environment, retirement benefits, and job security. Social Needs: Create a sense of community via team-based projects and social events. Esteem Needs: Recognize achievements to make employees feel appreciated and valued.

    Offer job titles that convey the importance of the position.

    Self-Actualization: Provide employees a challenge and the opportunity to reach their fullcareer potential.

    However, not all people are driven by the same needs - at any time different people may be

    motivated by entirely different factors. It is important to understand the needs being pursued by

    each employee. To motivate an employee, the manager must be able to recognize the needs levelat which the employee is operating, and use those needs as levers of motivation.

    Limitations of Maslow's Hierarchy

    While Maslow's hierarchy makes sense from an intuitive standpoint, there is little evidence to

    support its hierarchical aspect. In fact, there is evidence that contradicts the order of needs

    specified by the model. For example, some cultures appear to place social needs before any

    others. Maslow's hierarchy also has difficulty explaining cases such as the "starving artist" in

    which a person neglects lower needs in pursuit of higher ones. Finally, there is little evidence to

    suggest that people are motivated to satisfy only one need level at a time, except in situations

    where there is a conflict between needs.

    Even though Maslow's hierarchy lacks scientific support, it is quite well-known and is the first

    theory of motivation to which many people they are exposed. To address some of the issues of

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    Maslow's theory, Clayton Alderfer developed theERG theory, a needs-based model that is more

    consistent with empirical findings.

    2.5.4 ERG Theory of Motivation

    To bring Maslows need hierarchy theory of motivation in synchronization with empirical

    research, Clayton Alderfer redefined it in his own terms. His rework is called as ERG theory of

    motivation. He recategorized Maslows hierarchy of needs into three simpler and broader classes

    of needs:

    Existence needs- These include need for basic material necessities. In short, it includesan individuals physiological and physical safety needs.

    Relatedness needs-These include the aspiration individuals have for maintainingsignificant interpersonal relationships (be it with family, peers or superiors), getting

    public fame and recognition. Maslows social needs and external component of esteem

    needs fall under this class of need.

    Growth needs- These include need for self-development and personal growth andadvancement. Maslows self-actualization needs and intrinsic component of esteem needs

    fall under this category of need.

    The significance of the three classes of needs may vary for each individual.

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    Implications of the ERG Theory

    Managers must understand that an employee has various needs that must be satisfied at the same

    time. According to the ERG theory, if the manager concentrates solely on one need at a time, this

    will not effectively motivate the employee. Also, the frustration- regression aspect of ERG

    Theory has an added effect on workplace motivation. For instance- if an employee is not

    provided with growth and advancement opportunities in an organization, he might revert to the

    relatedness need such as socializing needs and to meet those socializing needs, if the

    environment or circumstances do not permit, he might revert to the need for money to fulfill

    those socializing needs. The sooner the manager realizes and discovers this, the more immediate

    steps they will take to fulfil those needs which are frustrated until such time that the employee

    can again pursue growth.

    2.5.5 Herzberg's Motivation-Hygiene Theory

    The studies included interviews in which employees where asked what pleased and displeased

    them about their work. Herzberg found that the factors causing job satisfaction (and presumably

    motivation) were different from those causing job dissatisfaction. He developed the motivation-

    hygiene theory to explain these results. He called the satisfiers motivators and the dissatisfiers

    hygiene factors, using the term "hygiene" in the sense that they are considered maintenance

    factors that are necessary to avoid dissatisfaction but that by themselves do not provide

    satisfaction.

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    The following table presents the top six factors causing dissatisfaction and the top six factors

    causing satisfaction, listed in the order of higher to lower importance.

    Factors Affecting Job Attitudes

    Leading to Dissatisfaction Leading to Satisfaction

    Company policy Supervision Relationship w/Boss Work conditions Salary Relationship w/Peers

    Achievement Recognition Work itself Responsibility Advancement Growth

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    Herzberg reasoned that because the factors causing satisfaction are different from those causing

    dissatisfaction, the two feelings cannot simply be treated as opposites of one another. The

    opposite of satisfaction is not dissatisfaction, but rather, no satisfaction. Similarly, the opposite

    of dissatisfaction is no dissatisfaction.

    While at first glance this distinction between the two opposites may sound like a play on words,

    Herzberg argued that there are two distinct human needs portrayed. First, there are physiological

    needs that can be fulfilled by money, for example, to purchase food and shelter. Second, there is

    the psychological need to achieve and grow, and this need is fulfilled by activities that cause one

    to grow.

    From the above table of results, one observes that the factors that determine whether there is

    dissatisfaction or no dissatisfaction are not part of the work itself, but rather, are external factors.

    Herzberg often referred to these hygiene factors as "KITA" factors, where KITA is an acronym

    for Kick In The A..., the process of providing incentives or a threat of punishment to cause

    someone to do something. Herzberg argues that these provide only short-run success because the

    motivator factors that determine whether there is satisfaction or no satisfaction are intrinsic to the

    job itself, and do not result from carrot and stick incentives.

    Implications for Management

    If the motivation-hygiene theory holds, management not only must provide hygiene factors to

    avoid employee dissatisfaction, but also must provide factors intrinsic to the work itself in order

    for employees to be satisfied with their jobs.

    Herzberg argued thatjob enrichmentis required for intrinsic motivation, and that it is a

    continuous management process. According to Herzberg:

    The job should have sufficient challenge to utilize the full ability of the employee. Employees who demonstrate increasing levels of ability should be given increasing levels

    of responsibility.

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    If a job cannot be designed to use an employee's full abilities, then the firm shouldconsider automating the task or replacing the employee with one who has a lower level of

    skill. If a person cannot be fully utilized, then there will be a motivation problem.

    Critics of Herzberg's theory argue that the two-factor result is observed because it is natural for

    people to take credit for satisfaction and to blame dissatisfaction on external factors.

    Furthermore, job satisfaction does not necessarily imply a high level of motivation or

    productivity.

    Herzberg's theory has been broadly read and despite its weaknesses its enduring value is that it

    recognizes that true motivation comes from within a person and not from KITA factors.

    2.5.6 J.S Adams Equity Theory

    Employee compares her/his job inputs outcome ratio with that of reference. If the employee

    perceives inequity, she/he will act to correct the inequity: lower productivity, reduced quality,

    increased absenteeism, voluntary resignation.

    2.5.7 Vrooms Expectation Theory

    Vrooms theory is based on the belief that employee effort will lead to performance and

    performance will lead to rewards (Vroom, 1964). Reward may be either positive or negative. The

    more positive the reward the more likely the employee will be highly motivated. Conversely, the

    more negative the reward the less likely the employee will be motivated.

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    2.5.8 Two Factor Theory

    . THEORY X AND THEORY Y

    Douglas McGregor proposed two distinct views of human beings Theory X and Theory Y. The

    theories basically represent two sets of assumptions about human nature and human behaviour

    that are relevant to the practice of management. Theory X represents a negative view of human

    nature that assumes individuals generally dislike work, are irresponsible, and require close

    supervision to do their jobs. Theory Y denotes a positive view of human nature and assumes

    individuals are generally industrious, creative, and able to assume responsibility and exercise

    self-control in their jobs. One would expect, then, that managers holding assumptions about

    human nature that are consistent with Theory X might exhibit a managerial style that is quite

    different than managers who hold assumptions consistent with Theory Y.

    McGregor argued that the conventional approach to managing was based on three major

    propositions, which he called Theory X:

    1. Management is responsible for organizing the elements of productive enterprise-money,materials, equipment, and people-in the interests of economic ends.

    2. With respect to people, this is a process of directing their efforts, motivating them,controlling their actions, and modifying their behavior to fit the needs of the organization.

    3. Without this active intervention by management, people would be passive-even resistant-to organizational needs. They must therefore be persuaded, rewarded, punished, and

    controlled. Their activities must be directed. Management's task was thus simply getting

    things done through other people.

    According to McGregor, these tenets of management are based on less explicit assumptions

    about human nature. The first of these assumptions is that individuals do not like to work and

    will avoid it if possible. A further assumption is that human beings do not want responsibility

    and desire explicit direction. Additionally, individuals are assumed to put their individual

    concerns above that of the organization for which they work and to resist change, valuing

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    security more than other considerations at work. Finally, human beings are assumed to be easily

    manipulated and controlled. McGregor contended that both the classical and human relations

    approaches to management depended this same set of assumptions. He called the first style of

    management "hard" and identified its methods as close supervision, tight controls, and coercion.

    The hard style of management led to restriction of output, mutual distrust, unionism, and even

    sabotage. McGregor called the second style of management "soft" and identified its methods as

    permissiveness and need satisfaction. McGregor suggested that the soft style of management

    often led to managers' failure to perform their managerial role. He also pointed out that

    employees often take advantage of an overly permissive manager by demanding more but

    performing at lower levels.

    McGregor drew upon the work of Abraham Maslow (1908-1970) to explain why Theory X

    assumptions led to ineffective management. Maslow had proposed that man's needs are arranged

    in levels, with physical and safety needs at the bottom of the needs hierarchy and social, ego, and

    self-actualization needs at upper levels of the hierarchy. Maslow's basic point was that once a

    need is met, it no longer motivates behavior; thus, only unmet needs are motivational. McGregor

    argued that most employees already had their physical and safety needs met and that the

    motivational emphasis had shifted to the social, ego, and self-actualization needs. Therefore,

    management had to provide opportunities for these upper-level needs to be met in the workplace,

    or employees would not be satisfied or motivated in their jobs.

    Such opportunities could be provided by allowing employees to participate in decision making,

    by redesigning jobs to make them more challenging, or by emphasizing good work group

    relations, among other things. According to McGregor, neither the hard style of management

    based on the classical school nor the soft style of management inspired by the human relations

    movement were sufficient to motivate employees. Thus, he proposed a different set of

    assumptions about human nature as it pertains to the workplace.

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    McGregor put forth these assumptions, which he believed could lead to more effective

    management of people in the organization, under the rubric of Theory Y. The major propositions

    of Theory Y include the following:

    1. Management is responsible for organizing the elements of productive enterprise-money,materials, equipment, and people in the interests of economic ends.

    2. People are not by nature passive or resistant to organizational needs. They have becomeso as a result of experience in organizations.

    3. The motivation, potential for development, capacity for assuming responsibility, andreadiness to direct behavior toward organizational goals are all present in people-

    management does not put them there. It is a responsibility of management to make it

    possible for people to recognize and develop these human characteristics for themselves.4. The essential task of management is to arrange organizational conditions and methods of

    operation so that people can achieve their own goals by directing their efforts toward

    organizational objectives.

    Thus, Theory Y has at its core the assumption that the physical and mental effort involved in

    individuals will actually seek it out under the proper conditions. Theory Y also assumes that the

    ability to be innovative and creative exists among a large, rather than a small segment of work is

    natural and that individuals actively seek to engage in work. It also assumes that close

    supervision and the threat of punishment are not the only means or even the best means for

    inducing employees to exert productive effort. Instead, if given the opportunity, employees will

    display self-motivation to put forth the effort necessary to achieve the organization's goals. Thus,

    avoiding responsibility is not an inherent quality of human nature; the population. Finally, it

    assumes that rather than valuing security above all other rewards associated with work,

    individuals desire rewards that satisfy their self-esteem and self-actualization needs.

    THEORY X AND THEORY Y

    IN THE TWENTY-FIRST CENTURY

    McGregor's work on Theory X and Theory Y has had a significant impact on management

    thought and practice in the years since he first articulated the concepts. In terms of the study of

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    management, McGregor's concepts are included in the overwhelming majority of basic

    management textbooks, and they are still routinely presented to students of management. Most

    textbooks discuss Theory X and Theory Y within the context of motivation theory; others place

    Theory X and Theory Y within the history of the organizational humanism movement.

    Theory X and Theory Y are often studied as a prelude to developing greater understanding of

    more recent management concepts, such as job enrichment, the job-characteristics model, and

    self-managed work teams. Although the terminology may have changed since the 1950s,

    McGregor's ideas have had tremendous influence on the study of management.

    In terms of the practice of management, the workplace of the early twenty-first century, with its

    emphasis on self-managed work teams and other forms of worker involvement programs, is

    generally consistent with the precepts of Theory Y.

    2.6 Types of Motivation.

    Intrinsic motivation occurs when people are internally motivated to do something because it

    either brings them pleasure, they think it is important, or they feel that what they are learning is

    morally significant.

    Extrinsic motivation comes into play when a student is compelled to do something or act a

    certain way because of factors external to him or her (like money or good grades)

    2.7 Incentives

    An incentive is something which stimulates a person towards some goal. It activates human

    needs and creates the desire to work. Thus, an incentive is a means of motivation. In

    organizations, increase in incentive leads to better performance and vice versa.

    2.7.1 Need for Incentives

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    Man is a wanting animal. He continues to want something or other. He is never fully satisfied. If

    one need is satisfied, the other need need arises. In order to motivate the employees, the

    management should try to satisfy their needs. For this purpose, both financial and non financial

    incentives may be used by the management to motivate the workers. Financial incentives or

    motivators are those which are associated with money. They include wages and salaries, fringe

    benefits, bonus, retirement benefits etc. Non financial motivators are those which are not

    associated with monetary rewards. They include intangible incentives like ego-satisfaction, self-

    actualization and responsibility.

    INCENTIVES

    Financial Incentives Non-financial incentives

    - Wages and Salaries. - Competition- Bonus - Group recognition- Medical reimbursement - Job security- Insurance - Praise- Housing facility - Knowledge of result- Retirement benefits. - Workers participation.

    - Suggestion system.

    - Opportunities for growth

    2.8 Motivation is the key to performance improvement

    There is an old saying you can take a horse to the water but you cannot force it to drink; it will

    drink only if it's thirsty - so with people. They will do what they want to do or otherwise

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    motivated to do. Whether it is to excel on the workshop floor or in the 'ivory tower' they must be

    motivated or driven to it, either by themselves or through external stimulus.

    Are they born with the self-motivation or drive? Yes and no. If no, they can be motivated, for

    motivation is a skill which can and must be learnt. This is essential for any business to survive

    and succeed.

    Performance is considered to be a function of ability and motivation, thus:

    Job performance =f(ability)(motivation)

    Ability in turn depends on education, experience and training and its improvement is a slow and

    long process. On the other hand motivation can be improved quickly. There are many optionsand an uninitiated manager may not even know where to start. As a guideline, there are broadly

    seven strategies for motivation.

    There are broadly seven strategies for motivation.

    Positive reinforcement / high expectations Effective discipline and punishment

    Treating people fairly Satisfying employees needs Setting work related goals Restructuring jobs Base rewards on job performance

    Essentially, there is a gap between an individuals actual state and some desired state and the

    manager tries to reduce this gap. Motivation is, in effect, a means to reduce and manipulate this

    gap.

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