Motivation

Hard Work is crucial to success and achievement.

People with less ability but stronger will are able

to perform better than people with superior
ability and lack of will. This “Will” to do is known
as motivation.

The word Motivation is derived from “Motive”

that is defined as an active form of desire or need
that must be satisfied. The needs and desires affect
or change human behaviour, which then becomes
goal oriented.
Definition of Motivation: -
“Motivation is defined as a representation of an
unsatisfied need, which creates a state of tension
or disequilibrium, causing the individual to move
in a goal, directed pattern towards restoring a
state of equilibrium, by satisfying the need”.

Concept of Motivation
1. Effort
2. Persistence
3. Direction
 Process of Motivation

Unsatisfied Need

Tension or
disequilibrium

Action, movement
or behaviour

Goal, equilibrium

Feedback, possible
modification of
unsatisfied need

Steps in the Motivation Process

• Analysis of situation
 • Selecting and applying appropriate
motivators
• Follow-up
Sources of Motivation
 Positive Motivation
 Negative Motivation
 Extrinsic Motivation
 Intrinsic Motivation

Theories of Motivation

Content Theories Process Theories

Content Theories of Work Motivation

1. McGregor’s Theory X and Theory Y

Theory X Assumptions: -
• People dislike work.
• Need direction.
• Need to be threatened with
punishment.
• Have little ambition.
• Concerned with own security.
 • Unwilling to accept responsibility.
• Prefer to be directed.

Theory Y Assumptions: -
• Enjoy work.
• Commitment to goals.
• Exercise self-direction and control.
• Have innovation capacity and
creativity.
• Seek leadership.

2. Maslow’s Model

Growth Needs:
• Self Actualization Needs
• Esteem Needs

Deficiency Needs:
• Social Needs
• Security Needs
• Physiological Needs

3. ERG Theory
  Existence Needs
 Relatedness Needs
 Growth
4. McClelland’s Needs
Theory of Needs
i). “Need for Achievement”: - (n Ach) is the
desire to succeed in competitive situations
based upon an established or perceived
standard of excellence.

ii). “Need for Power”: - (n Pow) is the desire

to affect and control the behaviour of other
people and to manipulate the surroundings.

iii). “Need for Affiliation”: - (n Aff) is related

to social needs and reflects a desire for
friendly and warm relationships with others.

5. Herzberg’s Two-Factor Theory

a) Hygiene Factors (dissatisfaction)

Hygiene factors do not motivate people.
They prevent dissatisfaction and maintain
status quo. They produce no growth but
prevent loss.

• Wages, salary, employee benefits

• Company policies and
administration rules
• Interpersonal relations
• Working conditions and job
security
• Quality of supervision

b) Motivational Factors ( Satisfaction)

• The job itself
• Recognition
• Achievement
• Responsibility
• Growth and advancement

B. Process Theories of Work Motivation

1. Vroom’s Expectancy Model
Three models : -
 i . Expectancy: - This is a person’s
perception of the likelihood that a
particular outcome will result from a
particular behaviour or action.

ii. Instrumentality: - This factor relates to

a person’s belief and expectation that
his performance will lead to a
particular desired reward.

iii. Valence: - Valence is the value a person

assigns to his desired reward.
Motivational Force (M) = Expectancy (E) *
Instrumentality (I) * Valence (V)
Or M=(E*I*V)

2. Equity Theory

It is based upon the recognition that

employees are not only concerned with the
rewards that they receive for their efforts but
also with the relationship of their rewards
with the rewards received by others.
It has two elements: -
 The workers want to get fair reward
for their efforts.
 Comparison of rewards with the
rewards of others who put in similar
efforts.
 Inequity exists when people are
either “underpaid” or “overpaid” for
similar efforts.

3. Goal Setting Theory

It studies the processes by which people set

goals for themselves and then put in efforts
in order to achieve them. The quality of
performance is generally shaped by how
difficult and how specifically defined the
goal is.
Goal specificity

Performance Satisfaction

Goal Difficulty
 Application of Motivation

There are four common ways by which the

theories of motivation can be implemented
and applied.

• Economic Considerations
• Management by objectives
• Employee involvement programmes
• Performance Appraisal

1. Economic Considerations

Money contributes greatly to social status. An

economic incentive is used to induce
individual, groups and organization to
achieve better performance.

Types of Economic Considerations: -

• Variable Pay Programme (VPP) refers to
a system of payment of some portion of
the total remuneration, on the basis of an
individual performance.
• Piece rate pay plan is payment based on
the actual performance. The wage is
linked with the production. It is wage per
piece or unit of production.

• Wage incentives are based on more pay

for more production and are an incentive
to employees for higher production.

• Profit sharing is a practical type of

motivation to monitor employees for
better performance.

• Gain sharing is a formula based group

incentive plan.

• Skill-based plan refers to payment for

knowledge and skills possessed by
employees.
• Flexible benefits provide combinations of
benefits from which the employees have
to select the benefits of their respective
choice.

3. Management by Objectives

Management by Objectives refers to the set

of goals that are measurable, verifiable and
tangible. Management by Objectives
(MBO) is used for planning, organizing,
actuating and controlling organizational
activities. Objectives are determined after
through analysis of the internal and
external environment relating to the
organisation. The SWOT analysis is used to
formulate objectives.
4. Employee-Involvement Programme

An employee-involvement programme
relates to the participation of employees in
management functions.
 • Participative Management refers to the
sharing of decision-making power by
employees with the immediate superior.

• Representative participation is
practiced when a small group of
employees who represent all the
employees is given the power of
participating in the management.

• Quality Circle is a group of employees

who discuss the quality problems, cost
control and problem solutions
propositions.

• Employees’ Ownership is the

company’s benefit plan in which
employees are allotted shares in lieu of
a cash bonus in many industrial houses.

5. Performance Appraisal
It is an important tool for rewarding
employees. It helps understand employees’
merits and deficiencies as well as the
present performance and formulation of
future objectives.