• Motivation means a process which excites people to work for the attainment of desired object.

• It is that process wherein the persons are made to recognise their needs , in the realisation of which ,

they do hard work for the interest of enterprise.

CHARACTERISTICS

CHARACTERISTICS

Continuous ProcessEach Person Has Different

Motivational FactorsImportant Function Of

ManagementStimulates People To Do WorkOnly Solution To The ProblemRelates With All Levels Of

Organisation

Importance

High level of performanceLow employees turnover

and absenteeismSweet relations between

owner and employeesGood image of an

organisationHelpful in achieving goals

Theories of motivation

1. Maslow’s need hierarchy theory

According to this theory , a man has countless needs and they can be categorised on the basis of priority.

For example : The needs which are more sharply felt should be

satisfied first and the less sharply felt needs should be satisfied afterwards.

PHYSIOLOGICAL NEEDS Physiological needs are those needs which need to be

satisfied keep a man alive.

For example : food, shelter, clothing and sleep.

SECURITY NEEDS

Security needs include 3 types of safety : Physical safety : defense against accidents , diseases , etc. Economic safety : arrangement for old age. Psychological needs : maintain one’s prestige.

SOCIAL NEEDS Social needs means the needs which should be

fulfilled to live in a society honorably.

Example: friends and relatives.

ESTEEM NEEDSEsteem needs are ego needs of man. Every human

wants to attain a higher status so that his power increases.

SELF ACTUALIZATION

Self actualization : Here, man tries to satisfy himself by attaining self realization.

it means that he should actually be an achiever in respect of his capability.

Example: CEO wants to be the best in an industry

Assumptions:

People’s behavior being affected by their needs.

There are many needs of people and their priority can be made .

People move to next higher need only when lower level needs are satisfied.

criticism

Needs are not permanent .They change according to situation.

It is not important that the needs of only one category be strong at a time and the remaining remain unimportant.

2. Herzberg’s Motivation-hygiene Theory

Maintenance Or Hygiene

Motivators Or Satisfiers

I. MAINTENANCE OR HYGIENE Those factors whose presence does not motivate employees

to work with greater enthusiasm but whose absence does discourage them.

ii. Motivators or satisfiers• Those factors which directly inspire employees to

work.• These factors are directly related to work and they are

also known as job factors.

Criticism

Categorization of satisfiers and dissatisfies is not practical.

This theory has made the relationship between motivation and satisfaction very simple when it is not so.

3.MCGREGOR’S X AND Y THEORY

Traditional theory ‘X’ Modern theory ‘Y’

Man by nature is shirker Man wants to work provided the conditions are favorable

Mostly people are not ambitious and are afraid to take responsibility

People are enthusiastic ,responsible and full of effort

People want to be directed Employee have the quality of self direction

Motivation is limited to only physical and security needs

Physical and security needs are for short time

Strict control ,threat and punishment are used to get work

Person himself performs his work laboriously

4. Ouchi’s ‘Z’ Theory

FEATURES OF ‘Z’ THEORY1. Involvement of employees in decision making: Involvement increases responsibility and the

employees work with an absolute sense of dedication.

There can also be some decisions in which employees are consulted , but the final decision is taken by the management

2. Establishment of informal organisational structure: Organisational structure means the establishment of relations

among all the employees working in the organisation. These relations can be of 2 types :

Under ‘Z’ theory, ouchi has given importance to informal relations.

Example : basketball team.

FORMAL• In formal relation it is made clear as to who is the

subordinate and who is the boss.

INFORMAL

•Natural grouping of people.

3. Establishment of trust: According to it, there should be confidence among

the employees,supervisors,managers and government. Confidence is an important feature of a successful

organisation. It increases coordination among employees.

4. Establishment of strong relations between organisation and employee:

It gives stability to the organisation. The following methods have been suggested to

develop strong relations:

to give employment for the whole life

to allow promotion at a slow speed

Criticism

1. Lack of required efficiency for participation: Due to low level of efficiency of employees, they do

not be able to give suggestions to managers.

2. Lack of group feeling: The difference of caste, religion , language , food and

dress are most distinguishing. These differences do not allow group feeling to develop.

3. Informal organisations cannot work independently:

No informal organisation can work in isolation. More particularly in big companies so long as

the formal relations do not develop, no work can be completed successfully.

5.ERG THEORY

Alderfer has contributed to the understanding of motivation by dividing various needs into three categories:

Existing needs(E)

Relatedness needs(R)

Growth needs(G) This theory is an extension of Maslow’s need hierarchy

and Herzberg’s two factor theory of motivation

The ERG theory differs from Maslow's theory in the following way:

MASLOW’S THEORY THE ERG THEORY

A need once met lost its power to motivate an individual.

When higher needs are frustrated , lower needs will return even though they were already satisfied.

People move steadily up the hierarchy of needs.

People move up and down the hierarchy of needs from time to time.

6. EXPECTANCY THEORY

This theory is based on the belief that motivation is determined by the nature of the reward people expect to get as a result of their job performance.

For ex: one individual places high value to promotion and perceives superior performance as instrumental in achieving that goal. This individual will be motivated towards superior performance in order to achieve the performance

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Expectancy, Instrumentality, and Valence

Figure 13.2

STACY ADAMS EQUITY THEORY

This theory recognizes that people are concerned not only with the total rewards they receive for their efforts but also with the relationship of these rewards to what others receive.

For example: if an employee thinks that he is getting more rewards for his work in comparison with some other employee giving the same performance , he will come to develop a sense of dissatisfaction and he will get motivated to perform better by doing more work than is usual for him.

Components 1. Inputs : input is what an individual puts in

doing a job .

Example : an individual puts in his efforts , his experience , his training for doing a particular job.

2. Outcomes : it means the reward for one’s inputs.

Example : an employee gets reward in the form of remuneration ,promotion ,praise ,etc .

3. Comparison : an individual compares his inputs and outcomes with the inputs and outcomes of others as well as with his own previous experience.

Comparison can be made in following ways: other-inside : An employee can compare himself

with other employees in the organization doing the same work.

other-outside : He can compare himself with the people doing the same work outside the organization.

self-inside : he can compare with his old experiences in his own organization.

example: he can compare his experience in the same organization if he has worked in some other department or branch or position.

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Equity Theory

Table 13.3

Condition Person Referent Example

EquityEquity Outcomes = OutcomesInputs Inputs

Outcomes = OutcomesInputs Inputs

Worker gets rewards according to his inputs

and these rewards happen to be equal to the rewards

of the other people

Worker gets rewards according to his inputs

and these rewards happen to be equal to the rewards

of the other people

UnderpaymentEquity

UnderpaymentEquity

Outcomes < OutcomesInputs Inputs

Outcomes < OutcomesInputs Inputs

Worker gets less reward as compared to other

employees

Worker gets less reward as compared to other

employees

OverpaymentEquity

OverpaymentEquity

Outcomes > OutcomesInputs Inputs

Outcomes > OutcomesInputs Inputs

Worker gets more rewards in

comparison to others

Worker gets more rewards in

comparison to others

McClelland’s Model Three types of needs :

1. Need for achievement : The desire to do something

better or more efficiently, to solve problems, or to master complex tasks.

features of people with high need for achievement:

Like to take responsibility for solving problems.

Tend to set moderately difficult goals

2. Need for affiliation : people dominated by such need are interested in jobs

that provide opportunities for social interaction. features of people with this need:Maintaining pleasant social relationshipEnjoy friendly interaction with othersReady to help others

3. Need for power :The desire to control others, to influence their behavior, or to be

responsible for others. Features of people with this need: Seeking position of leadership Forceful and outspoken Enjoying teaching and public speaking