2.4 Motivation Process. 1. Identification of need 2. Tension 3. Course of action 4. Result Positive/Negative 5.

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 either achievement, affiliation, or power. 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 lowrisk 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

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. Those who 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 individual needs 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

People with different needs are motivated differently.

High need for achievement - High achievers should be given challenging projects with reachable 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 a cooperative environment.

High need for power - Management should provide power seekers the opportunity to manage 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 found in 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.

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.

SelfActualization Ego Needs Social Needs Safety Needs

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.

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:

Physiological needs: Provide lunch breaks, rest breaks, and wages that are sufficient to purchase 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 full career 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 level at 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

Maslow's theory, Clayton Alderfer developed the ERG 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 includes an individuals physiological and physical safety needs. Relatedness needs- These include the aspiration individuals have for maintaining significant 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 and advancement. 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.

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 motivationhygiene 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.

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

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 that job enrichment is 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.

If a job cannot be designed to use an employee's full abilities, then the firm should consider 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.

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 resistantto 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

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.

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 become so as a result of experience in organizations. 3. The motivation, potential for development, capacity for assuming responsibility, and readiness to direct behavior toward organizational goals are all present in peoplemanagement 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

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

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, selfactualization and responsibility.

INCENTIVES

Financial Incentives

Non-financial incentives

Wages and Salaries. Bonus Medical reimbursement Insurance Housing facility Retirement benefits.

- Competition - Group recognition - Job security - Praise - Knowledge of result - 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

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 options and 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.