A

RESERCH REPORT
ON
MOTIVATIONAL FACTORS OF AN EMPLOYEE


SUBMITTED TO:
S.G.M. ENGLISH MEDIUM COLLEGE
OF COMMERCE AND MANAGEMENT
[AFFILIATED TO S.P. UNIVERSITY]

SUBMITTED BY: GUIDENCE BY:
AAYUSHI Y. SONI Dr. Vigna Oza.
SYBBAITM
ROLL NO!"
Preface
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The job of a manager in the workplace is to get things done through
employees. To do this the manager should be able to motivate employees. But that's
easier said than done! Motivation practice and theory are difficult subjects
touching on several disciplines.
!n spite of enormous research basic as well as applied the subject of motivation is
not clearly understood and more often than not poorly practiced. To understand
motivation one must understand human nature itself. "nd there lies the problem!
#uman nature can be very simple yet very comple$ too. "n understanding and
appreciation of this is a prere%uisite to effective employee motivation in the
workplace and therefore effective management and leadership.
These articles on motivation theory and practice concentrate on various theories
regarding human nature in general and motivation in particular. !ncluded are
articles on the practical aspects of motivation in the workplace and the research that
has been undertaken in this field notably by &ouglas 'theory y( )rederick
#er*berg 'two factor motivation hygiene theory( "braham Maslow 'theory *
hierarchy of needs( +lton Mayo '#awthorne +$periments( ,hris "rgvris -ensis
.ikert and &avid Mc,lelland 'achievement motivation(.
B#0 $(,+0 an+ a&&/0 %*&/'0%% *'(i-a(i'n &rin)i&/%$C
/uite apart from the benefit and moral value of an altruistic approach to treating
colleagues as human beings and respecting human dignity in all its forms research
and observations show that well motivated employees are more productive and
creative. The inverse also holds true. The schematic below indicates the potential
contribution the practical application of the principles this paper has on reducing
work content in the organi*ation.
M'(i-a(i'n i$ (#% 4%0 (' &%r.'r*an)% i*&r'-%*%n(:
There is an old saying you can take a horse to the water but you cannot force it to
drink0 it will drink only if it's thirsty 1 so with people. They will do what they want
to do or otherwise motivated to do. 2hether it is to e$cel on the workshop floor or in
the 'ivory tower' they must be motivated or driven to it either by themselves or
through e$ternal stimulus.
"re they born with the self1motivation or drive3 4es and no. !f 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 thus5
6ob performance 7f'ability('motivation(
"bility in turn depends on education e$perience and training and its improvement
is a slow and long process. 8n the other hand motivation can be improved %uickly.
There are many options and an uninitiated manager may not even know where to
start. "s a guideline there are broadly seven strategies for motivation.
Positive reinforcement 9 high e$pectations
+ffective discipline and punishment
Treating people fairly
:atisfying employees needs
:etting work related goals
-estructuring jobs
Base rewards on job performance

These are the basic strategies though the mi$ in the final 'recipe' will vary from
workplace situation to situation. +ssentially there is a gap between an individual;s
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. !t is inducing
others in a specific way towards goals specifically stated by the motivator. <aturally
these goals as also the motivation system must conform to the corporate policy of the
organi*ation. The motivational system must be tailored to the situation and to the
organi*ation.
!n one of the most elaborate studies on employee motivation involving =>??? men
and >=??? women the Minneapolis @as ,ompany sought to determine what their
potential employees desire most from a job. This study was carried out during a A?
year period from >BCD to >BED and was %uite revealing. The ratings for the various
factors differed only slightly between men and women but both groups considered
security as the highest rated factor. The ne$t three factors were0
advancement
type of work
company 1 proud to work for
:urprisingly factors such as pay benefits and working conditions were given a low
rating by both groups. :o after all and contrary to common belief money is not the
prime motivator. 'Though this should not be regarded as a signal to reward
employees poorly or unfairly(.
"lthough the process of management is as old as history scientific management as
we know it today is basically a twentieth century phenomenon. "lso as in some
other fields practice has been far ahead of theory.
This is still true in the field of management contrary to the situation in some of the
pure sciences. )or instance "lbert +instein formulates a theory which is later
proved by decades of intensive research and e$perimentation. <ot so in the field of
management.
!n fact this field has been so devoid of real fundamental work so far that #erbert ".
:imon is the first management theoretician to win the <obel Pri*e for +conomics in
>BFG. #is contribution itself gives a clue to the difficulty bordering on impossibility
of real fundamental work in this field concerned with people. !n order to arrive at a
correct decision the manager must have all the information necessary relevant to
the various factors and all the time in the world to analy*e the same.
This is seldom if ever the case. Both the information available and the time at the
managers; disposal are limited but he or she must make a decision. "nd the decision
is therefore not the optimum one but a 'satisfying' one 1 in effect a satisfactory
compromise under the real conditions prevailing in the management 'arena'.
Traditional theory 'H'
This can best be ascribed to :igmund )reud who was no lover of people and was far
from being optimistic. Theory H assumes that people are la*y0 they hate work to the
e$tent that they avoid it0 they have no ambition take no initiative and avoid taking
any responsibility0 all they want is security and to get them to do any work they
must be rewarded coerced intimidated and punished. This is the so1called 'stick
and carrot' philosophy of management. !f this theory were valid managers will have
to constantly police their staff whom they cannot trust and who will refuse to
cooperate. !n such an oppressive and frustrating atmosphere both for the manager
and the managed there is no possibility of any achievement or any creative work. But
fortunately as we know this is not the case.
Theory '4' I &ouglas Mc@regor
This is in sharp contrast to theory 'H'. Mc@regor believed that people want to learn
and that work is their natural activity to the e$tent that they develop self1discipline
and self1development. They see their reward not so much in cash payments as in the
freedom to do difficult and challenging work by themselves. The managers job is to
'dovetail' the human wish for self1development into the organi*ations need for
ma$imum productive efficiency. The basic objectives of both are therefore met and
with imagination and sincerity the enormous potential can be tapped.
&oes it sound too good to be true3 !t could be construed0 by some that Theory '4'
management is soft and slack. This is not true and the proof is in the 'pudding' for
it has already proved its worth in the J:" and elsewhere. )or best results the
persons must be carefully selected to form a homogeneous group. " good leader of
such a group may conveniently 'absent' from group meetings so they can discuss the
matters freely and help select and 'groom' a new leader. The leader does no longer
hanker after power lets people develop freely and may even 'it is hoped( enjoy
watching the development and actuali*ation of people as if by themselves.
+veryone and most of all the organi*ation gains as a result.
Theory 'K' I "braham Maslow

This is a refreshing change from the theory H of )reud by a fellow psychologist
"braham Maslow. Maslow totally rejects the dark and dingy )reudian basement
and takes us out into the fresh open sunny and cheerful atmosphere. #e is the main
founder of the humanistic school or the third force which holds that all the good
%ualities are inherent in people at least at birth although later they are gradually
lost.
Maslow's central theme revolves around the meaning and significance of human
work and seems to epitomi*e Loltaire's observation in ,andid 'work banishes the
three great evils 1boredom vice and poverty'. The great sage 4ajnavalkya e$plains
in the Brihadaranyaka Jpanishad that by good works a man becomes holy by evil
works evil. " mans personality is the sum total of his works and that only his works
survive a man at death. This is perhaps the essence of Maslow's hierarchy of needs
theory as it is more commonly know.
Maslow's major works include the standard te$tbook 'in collaboration with
Middleman( Principles of "bnormal Psychology '>BC>( a seminal paper '" Theory
of #uman Motivation' '>BC=( and the book +upsychian Management 'pronounced
yew1sigh1keyan( published in >BED. Maslow's theory of human motivation is in fact
the basis of Mc@regor's theory '4' briefly described above. The basic human needs
according to Maslow are5
physiological needs '.owest(
safety needs0
love needs0
esteem needs0 and
self1actuali*ation needs '#ighest(
Mans behavior is seen as dominated by his unsatisfied needs and he is a 'perpetually
wanting animal' for when one need is satisfied he aspires for the ne$t higher one.
This is therefore seen as an ongoing activity in which the man is totally absorbed
in order to attain perfection through self1development.
The highest state of self1actuali*ation is characteri*ed by integrity responsibility
magnanimity simplicity and naturalness. :elf1actuali*ers focus on problems
e$ternal to themselves. #is prescription for human salvation is simple but not easy5
'#ard work and total commitment to doing well the job that fate or personal destiny
calls you to do or any important job that Mcalls forM doing'.
Maslow has had his share of critics but he has been able to achieve a refreshing
synthesis of divergent and influential philosophies of5
Mar$ 1 economic and physical needs0
)reud 1 physical and love needs0
"dler 1 esteem needs0
@oldstein 1 self1actuali*ation.
Motivation theorists and their theories :
)rederick #er*berg theory5
This is based on analysis of the interviews of A?? engineers and accountants in the
Pittsburgh area in the J:". "ccording to this theory people work first and foremost
in their own self1enlightened interest for they are truly happy and mentally healthy
through work accomplishment. People;s needs are of two types
"nimal <eeds 'hygiene factors(5
:upervision
!nterpersonal relations
2orking conditions
:alary
#uman <eeds 'motivators(
-ecognition
2ork
-esponsibility
"dvancement
Jnsatisfactory hygiene factors can act as de1motivators but if satisfactory their
motivational effect is limited. The psychology of motivation is %uite comple$ and
#er*berg has e$ploded several myths about motivators such as5
shorter working week0
increasing wages0
fringe benefits0
sensitivity 9 human relations training0
,ommunication.
"s typical e$amples saying 'please' to shop1floor workers does not motivate them to
work hard and telling them about the performance of the company may even
antagoni*e them more. #er*berg regards these also as hygiene factors which if
satisfactory satisfy animal needs but not human needs.
Clearing Up Common Myths About Employee
Motivation
The topic of motivating employees is e$tremely important to managers and
supervisors. &espite the important of the topic several myths persist 11 especially
among new managers and supervisors. Before looking at what management can do
to support the motivation of employees it's important first to clear up these
common myths.
>. Myth N> 11 M! can motivate peopleM
<ot really 11 they have to motivate themselves. 4ou can't motivate people anymore
than you can empower them. +mployees have to motivate and empower themselves.
#owever you can set up an environment where they best motivate and empower
themselves. The key is knowing how to set up the environment for each of your
employees.
A. Myth NA 11 MMoney is a good motivatorM
<ot really. ,ertain things like money a nice office and job security can help people
from becoming less motivated but they usually don't help people to become more
motivated. " key goal is to understand the motivations of each of your employees.
=. Myth N= 11 M)ear is a damn good motivatorM
)ear is a great motivator 11 for a very short time. That's why a lot of yelling from the
boss won't seem to Mlight a spark under employeesM for a very long time.
C. Myth NC 11 M! know what motivates me so ! know what motivates my
employeesM
<ot really. &ifferent people are motivated by different things. ! may be greatly
motivated by earning time away from my job to spend more time my family. 4ou
might be motivated much more by recognition of a job well done. People are not
motivated by the same things. "gain a key goal is to understand what motivates
each of your employees.
D. Myth ND 11 M!ncreased job satisfaction means increased job
performanceM
-esearch shows this isn't necessarily true at all. !ncreased job satisfaction does not
necessarily mean increased job performance. !f the goals of the organi*ation are not
aligned with the goals of employees then employees aren't effectively working
toward the mission of the organi*ation.
E. Myth NE 11 M! can't comprehend employee motivation 11 it's a scienceM
<ah. <ot true. There are some very basic steps you can take that will go a long way
toward supporting your employees to motivate themselves toward increased
performance in their jobs. 'More about these steps is provided later on in this
article.(
Basic Principles to Remember
>. Motivating employees starts with motivating yourself
!t's ama*ing how if you hate your job it seems like everyone else does too. !f you
are very stressed out it seems like everyone else is too. +nthusiasm is contagious. !f
you're enthusiastic about your job it's much easier for others to be too. "lso if
you're doing a good job of taking care of yourself and your own job you'll have
much clearer perspective on how others are doing in theirs.
" great place to start learning about motivation is to start understanding your own
motivations. The key to helping to motivate your employees is to understand what
motivates them. :o what motivates you3 ,onsider for e$ample time with family
recognition a job well done service learning etc. #ow is your job configured to
support your own motivations3 2hat can you do to better motivate yourself3
A. "lways work to align goals of the organi*ation with goals of
employees
"s mentioned above employees can be all fired up about their work and be working
very hard. #owever if the results of their work don't contribute to the goals of the
organi*ation then the organi*ation is not any better off than if the employees were
sitting on their hands 11 maybe worse off! Therefore it's critical that managers and
supervisors know what they want from their employees. These preferences should
be worded in terms of goals for the organi*ation. !dentifying the goals for the
organi*ation is usually done during strategic planning. 2hatever steps you take to
support the motivation of your employees 'various steps are suggested below(
ensure that employees have strong input to identifying their goals and that these
goals are aligned with goals of the organi*ation. '@oals should be worded to be
M:M"-T+-M. More about this later on below.(
=. Oey to supporting the motivation of your employees is understanding
what motivates each of them
+ach person is motivated by different things. 2hatever steps you take to support
the motivation of your employees they should first include finding out what it is
that really motivates each of your employees. 4ou can find this out by asking them
listening to them and observing them. 'More about this later on below.(
C. -ecogni*e that supporting employee motivation is a process not a
task
8rgani*ations change all the time as do people. !ndeed it is an ongoing process to
sustain an environment where each employee can strongly motivate themselves. !f
you look at sustaining employee motivation as an ongoing process then you'll be
much more fulfilled and motivated yourself.
D. :upport employee motivation by using organi*ational systems 'for
e$ample policies and procedures( 11 don't just count on good intentions
&on't just count on cultivating strong interpersonal relationships with employees to
help motivate them. The nature of these relationships can change greatly for
e$ample during times of stress. !nstead use reliable and comprehensive systems in
the workplace to help motivate employees. )or e$ample establish compensation
systems employee performance systems organi*ational policies and procedures
etc. to support employee motivation. "lso establishing various systems and
structures helps ensure clear understanding and e%uitable treatment of employees.
Steps You Can Take
The following specific steps can help you go a long way toward supporting your
employees to motivate themselves in your organi*ation.
>. &o more than read this article 11 apply what you're reading here
This ma$im is true when reading any management publication.
A. Briefly write down the motivational factors that sustain you and what
you can do to sustain them
This little bit of Mmotivation planningM can give you strong perspective on how to
think about supporting the motivations of your employees.
=. Make of list of three to five things that motivate each of your
employees
-ead the article . )ill out the list yourself for each of your employees and then have
each of your employees fill out the list for themselves. ,ompare your answers to
theirs. -ecogni*e the differences between your impression of what you think is
important to them and what they think is important to them. Then meet with each
of your employees to discuss what they think are the most important motivational
factors to them. .astly take some time alone to write down how you will modify
your approaches with each employee to ensure their motivational factors are being
met. '<8T+5 This may seem like a Msoft touchy1feely e$erciseM to you. !f it does
then talk to a peer or your boss about it. Much of what's important in management
is based very much on Msoft touchy1feely e$ercisesM. .earn to become more
comfortable with them. The place to start is to recogni*e their importance.(
C. 2ork with each employee to ensure their motivational factors are
taken into consideration in your reward systems
)or e$ample their jobs might be redesigned to be more fulfilling. 4ou might find
more means to provide recognition if that is important to them. 4ou might develop
a personnel policy that rewards employees with more family time etc.
D. #ave one1on1one meetings with each employee
+mployees are motivated more by your care and concern for them than by your
attention to them. @et to know your employees their families their favorite foods
names of their children etc. This can sound manipulative 11 and it will be if not done
sincerely. #owever even if you sincerely want to get to know each of your
employees it may not happen unless you intentionally set aside time to be with each
of them.
E. ,ultivate strong skills in delegation
&elegation includes conveying responsibility and authority to your employees so
they can carry out certain tasks. #owever you leave it up to your employees to
decide how they will carry out the tasks. :kills in delegation can free up a great deal
of time for managers and supervisors. !t also allows employees to take a stronger
role in their jobs which usually means more fulfillment and motivation in their jobs
as well.
F. -eward it when you see it
" critical lesson for new managers and supervisors is to learn to focus on employee
behaviors not on employee personalities. Performance in the workplace should be
based on behaviors toward goals not on popularity of employees. 4ou can get in a
great deal of trouble 'legally morally and interpersonally( for focusing only on how
you feel about your employees rather than on what you're seeing with your eyeballs.
G. -eward it soon after you see it
This helps to reinforce the notion that you highly prefer the behaviors that you're
currently seeing from your employees. 8ften the shorter the time between an
employee's action and your reward for the action the clearer it is to the employee
that you highly prefer that action.
B. !mplement at least the basic principles of performance management
@ood performance management includes identifying goals measures to indicate if
the goals are being met or not ongoing attention and feedback about measures
toward the goals and corrective actions to redirect activities back toward achieving
the goals when necessary. Performance management can focus on organi*ations
groups processes in the organi*ation and employees.
>?. +stablish goals that are :M"-T+-
:M"-T+- goals are5 specific measurable acceptable realistic timely e$tending of
capabilities and rewarding to those involved.
>>. ,learly convey how employee results contribute to organi*ational
results
+mployees often feel strong fulfillment from reali*ing that they're actually making a
difference. This reali*ation often re%uires clear communication about organi*ational
goals employee progress toward those goals and celebration when the goals are met.
>A. ,elebrate achievements
This critical step is often forgotten. <ew managers and supervisors are often focused
on a getting Ma lot doneM. This usually means identifying and solving problems.
+$perienced managers come to understand that acknowledging and celebrating a
solution to a problem can be every bit as important as the solution itself. 2ithout
ongoing acknowledgement of success employees become frustrated skeptical and
even cynical about efforts in the organi*ation.
>=. .et employees hear from their customers 'internal or e$ternal(
.et employees hear customers proclaim the benefits of the efforts of the employee .
)or e$ample if the employee is working to keep internal computer systems running
for other employees 'internal customers( in the organi*ation then have other
employees e$press their gratitude to the employee. !f an employee is providing a
product or service to e$ternal customers then bring in a customer to e$press their
appreciation to the employee.
>C. "dmit to yourself 'and to an appropriate someone else( if you don't
like an employee 11
Managers and supervisors are people. !t's not unusual to just not like someone who
works for you. That someone could for e$ample look like an uncle you don't like.
!n this case admit to yourself that you don't like the employee. Then talk to
someone else who is appropriate to hear about your distaste for the employee for
e$ample a peer your boss your spouse etc. !ndicate to the appropriate person that
you want to e$plore what it is that you don't like about the employee and would like
to come to a clearer perception of how you can accomplish a positive working
relationship with the employee. !t often helps a great deal just to talk out loud about
how you feel and get someone else's opinion about the situation. "s noted above if
you continue to focus on what you see about employee performance you'll go a long
way toward ensuring that your treatment of employees remains fair and e%uitable.
Motivational nees
Motivational needs simply means what your employees need to help them do their
work and how important that need is0 for e$ample an employee might feel that they
need a lot of recognition from their employer or manager to boost their ego. 8nce
their ego is boosted this motivational need is fulfilled. "n employee might have
many motivational needs all varying in importance0 your task as employer9manager
is to detect these needs and act to allow fulfillment.
4ou may now be thinking that you have to bend to the pressures of the workforce so
that they will work for you however you would be wrong in this assumption.
Management Styles
#ow you go about investigating and satisfying your employees motivational needs
boils down to something call a management style0 e$ample might be5
4ou believe that your employees are basically la*y and the only way to
motivate them is to shout or even threaten your staff.
1 Your motivator is fear and intimidation build on the notion that your staff are
lazy
4ou may value the opinions of your staff and believe you can motivate your
staff through mutual trust and respect.
- Your motivator is trust and respect for your employees.
4ou may believe strongly in recognising achievement and e$cellence by
rewarding employees.
- You motivator is rewarding for good work.
Motivational !actors
8ver the years there have been many studies e$amining staff motivation and here
are just a few e$amples of what employees feel are their motivational needs or
factors5
The working environment 1 poor or inade%uate e%uipment or work facilities
2orking ,onditions 1 too hot too cold no breaks long hours
:ocial !nteraction 1 isolation socialisation discouraged etc
6ob :ecurity 1 redundancies feeling not part of company etc
:kill or intellectual use 1inability or discouragement to use intellectual or
skill
Promotional prospects and job title 1 lack of promotion others promoted but
not them
-esponsibility 1 not allowed to work off own initiative
-ecognition and appreciation 1 lack of praise or recognition for achievement
Trust and respect 1 treated as a machine
Participation in decision making 1 not allowed to get involved with company
" sense of belonging 1
:alary 1 pay poor for job they are doing
Management issues 1 conflicts with management etc
!n fact this is only a small sample of the many facets that account for motivational
need once you are aware of these needs and act to resolve and maintain them you
will find that staff are more content and hopefully motivated. !f you invest in your
staff you are investing in your company.
The only way you can find out what truly motivates your staff is5
"sking your employees what motivates them
Monitoring the changes in work levels as a result of your motivational
philosophy
8nce you know what makes your employees tick you can formulate a management
style which will assist to motivate your staff. )or many employers or managers this
task is simple but for many it has been a sadly neglected skill.
!t has been suggested that four categories of job characteristic are significant in
terms of motivation and performance5
responsible autonomy1 the group's acceptance of responsibility for the
production cycle output rate %uality and %uantity of output0
adaptability0
variety0
participation.
"utonomous behavior includes the self1regulation by the group of work content
critical self1evaluation of work group performance self1adjustment to cope with
changes and participation in goal setting.
.imitations5
The socio1technical systems approach is not without its limitations. 2hilst many
advantages can result from focusing on the work group rather than the individuals
and their jobs autonomous group working does not seem to have widespread
appeal.
,ertainly the roles of both supervision and specialist advisers are
considerably affected and in some cases eliminated.
Movement of personnel between work groups with high levels of autonomy
may be difficult hence removing some of management's fle$ibility.
&ifficulties are often e$perienced in implementation in e$isting work
situations.
" participative design process is not acceptable in many organi*ations and
can be very time1consuming.
"lternative ways of organi*ing work are not always apparent where e$isting
technology has to be employed.
Management are often not prepared to take the risk of introducing radically
different approaches to organi*ing work alongside other changes which
already have a high element of disruption and associated risk.

Three factors of Leadership Motivation
.eaders do nothing more important than get results. But you can't get results
by yourself. 4ou need others to help you do it. "nd the best way to have other people
get results is not by ordering them but motivating them. 4et many leaders fail to
motivate people to achieve results because those leaders misconstrue the concept
and applications of motivation. To understand motivation and apply it daily let's
understand its three critical factors. Onow these factors and put them into action to
greatly enhance your abilities to lead for results.
>. Motivation is physical action.
MMotivationM has common roots with MmotorM MmomentumM MmotionM MmobileM
etc. P all words that denote movement physical action. "n essential feature of
motivation is physical action. Motivation isn't about what people think or feel but
what they physically do. 2hen motivating people to get results challenge them to
take those actions that will reali*e those results.
! counsel leaders who must motivate individuals and teams to get results not to
deliver presentations but Mleadership talks.M Presentations communicate
information.. But when you want to motivate people you must do more than simply
communicate information. 4ou must have them believe in you and take action to
follow you. " key outcome of every leadership talk must be physical action physical
action that leads to results.
)or instance ! worked with the newly1appointed director of a large marketing
department who wanted the department to achieve si*able increases in the results.
#owever the employees were a demorali*ed bunch who had been clocking tons of
overtime under her predecessor and were feeling angry that their efforts were not
being recogni*ed by senior management.
:he could have tried to order them to get the increased results. Many leaders do
that. But order1leadership founders in today's highly competitive rapidly changing
markets. 8rgani*ations are far more competitive when their employees instead of
being ordered to go from point " to point B want to go from point " to point B. :o !
suggested that she take a first step in getting the employees to increase results by
motivating those employees to want to increase results. They would Mwant toM when
they began to believe in her leadership. "nd the first step in enlisting that belief was
for her to give a number of leadership talks to the employees.
8ne of her first talks that she planned was to the department employees in the
company's auditorium. :he told me M! want them to know that ! appreciate the
work they are doing and that ! believe that they can get the results !'m asking of
them. ! want them to feel good about themselves.M
MBelieving is not enoughM ! said. M)eeling good is not enough. Motivation must take
place. Physical action must take place. &on't give the talk until you know what
precise action you are going to have happen.M
:he got the idea of having the ,+8 come into the room after the talk shake each
employee's hand and tell each how much he appreciated their hard work P
physical action. :he didn't stop there. "fter the ,+8 left she challenged each
employee to write down on a piece of paper three specific things that they needed
from her to help them get the increases in results and then hand those pieces of
paper to her personally P physical action.
Mind you that leadership talk wasn't magic dust sprinkled on the employees to
instantly motivate them. 'To turn the department around so that it began achieving
si*able increases in results she had to give many leadership talks in the weeks and
months ahead.( But it was a beginning. Most importantly it was the right beginning.
A. Motivation is driven by emotion.
+motion and motion come from the same .atin root meaning Mto moveM. 2hen you
want to move people to take action engage their emotions. "n act of motivation is
an act of emotion. !n any strategic management endeavor you must make sure that
the people have a strong emotional commitment to reali*ing it.
2hen ! e$plained this to the chief marketing officer of a worldwide services
company he said M<ow ! know why we're not growing! 2e senior leaders
developed our marketing strategy in a bunker! #e showed me his MstrategyM
document. !t was some C? pages long single1spaced. The points it made were logical
consistent and comprehensive. !t made perfect sense. That was the trouble. !t made
perfect intellectual sense to the senior leaders. But it did not make e$periential
sense to middle management who had to carry it out. They had about as much in1
put into the strategy as the window washers at corporate head%uarters. :o they
sabotaged it in many innovative ways. 8nly when the middle managers were
motivated P were emotionally committed to carrying out the strategy P did that
strategy have a real chance to succeed.
=. Motivation is not what we do to others.
!t is what others do to themselves. The +nglish language does not accurately depict
the psychological truth of motivation. The truth is that we cannot motivate anybody
to do anything. The people we want to motivate can only motivate themselves. The
motivator and the motivatee are always the same person. 2e as leaders
communicate they motivate. :o our MmotivatingM others to get results really entails
our creating an environment in which they motivate themselves to get those results.
)or e$ample5 a commercial division leader almost faced a mutiny on his staff when
in a planning session he put ne$t year's goals numbers much higher than the
previous year's on the overhead. The staff all but had to be scrapped off the ceiling
after they went ballistic. M2e busted our tails to get these numbers last year. <ow
you want us to get much higher numbers3 <o way!M #e told me. M2e can hit those
numbers. ! just have to get people motivated!M
! gave him my Mmotivator1and1motivatee1are1the1same1person!M pitch. ! suggested
that he create an environment in which they could motivate themselves. :o he had
them assess what activities got results and what didn't. They discovered that they
spent more than E? percent of their time on work that had nothing to do with
getting results. #e then had them develop a plan to eliminate the unnecessary work.
Put in charge of their own destiny they got motivated! They developed a great plan
and started to get great results. 8ver the long run your career success does not
depend on what schools you went to and what degrees you have. That success
depends instead on your ability to motivate individuals and teams to get results.
Motivation is like a hig voltage cable lying at your feet. Jse it the wrong way and
you'll get a serious shock. But apply motivation the right way by understanding and
using the three factors plug the cable in as it were and it will serve you well in
many powerful ways throughout your career.
Application of employee motivation theory to
the workplace:
Management literature is replete with actual case histories of what does and what
does not motivate people. Presented here is a tentative initial broad selection of the
various practices that have been tried in order to draw lessons for the future.
'Stick' or 'carrot' approach?
The traditional Lictorian style of strict discipline and punishment has not only
failed to deliver the goods but it has also left a mood of discontent amongst the
Mworking classM.
Punishment appears to have produced negative rather than positive results and has
increased the hostility between 'them' 'the management( and 'us' 'the workers(. !n
contrast to this the 'carrot' approach involving approval praise and recognition of
effort has markedly improved the work atmosphere leading to more productive
work places and giving workers greater job satisfaction.
Manager's motivation 'toolkit'
The manager's main task is to develop a productive work place with and through
those he or she is in charge of. The manager should motivate his or her team both
individually and collectively so that a productive work place is maintained and
developed and at the same time employees derive satisfaction from their jobs.
This may appear somewhat contradictory but it seems to work. The main tools in
the manager's kitbag for motivating the team are5
approval praise and recognition
trust respect and high e$pectations
loyalty given that it may be received
removing organi*ational barriers that stand in the way of individual and
group performance 'smooth business processes systems methods and
resources 1 see outline team building program(
job enrichment
good communications
financial incentives
These are arranged in order of importance and it is interesting to note that cash is
way down the ladder of motivators. .et's look at a couple of e$amples taken from
real life situations.
The :wedish shipbuilding company Oockums turned a >D million dollar loss into a
>?? million dollar profit in the course of ten years due entirely to a changed
perception of the workforce brought about by better motivation. "t 2estern
+lectric there was a dramatic improvement in output after the supervisors and
managers started taking greater interest in their employees.
6ob satisfaction 1 is there a trend3
This is the title of a study carried out by the J: &epartment of .abor among >D??
workers who were asked to rate the job factors from a list of A= which they
considered important starting from the most important factor.
Their findings ':an*otta '>BFF(( are contained in the table below5
6ob :atisfaction )indings
2hite1collar workers Blue1collar workers
A. In(%r%$(ing 2'r4 A. G''+ &a0
B. O&&'r(,ni(i%$ .'r +%-%/'&*%n( B. En',g# #%/& an+ r%$',r)%$
C. En',g# in.'r*a(i'n C. >'1 $%),ri(0
D. En',g# a,(#'ri(0 D. En',g# in.'r*a(i'n
E. En',g# #%/& an+ r%$',r)%$ E. In(%r%$(ing 2'r4
F. Fri%n+/03 #%/&.,/ )'2'r4%r$ F. Fri%n+/03 #%/&.,/ )'2'r4%r$
G. S%% r%$,/($ '. '2n %..'r($ G. C/%ar/0 +%.in%+ r%$&'n$i1i/i(i%$
H. C'*&%(%n( $,&%r-i$i'n H. S%% r%$,/($ '. '2n 2'r4
I. C/%ar/0 +%.in%+ r%$&'n$i1i/i(i%$ I. En',g# A,(#'ri(0
>. G''+ &a0 >. C'*&%(%n( $,&%r-i$i'n
!t is interesting that out of the A= job factors listed for the survey yet with the
e$ception of two items 'white1collar workers' choice 'B( and blue1collar workers'
choice ',(( groups selected the same top ten factors although with different
rankings. !t is significant that good pay was considered as the most important factor
by the blue1collar workers but it ranked as the least important for white1collar
workers.
Individualize motivation policies:
!t is well known that individual behavior is intensely personal and uni%ue yet
companies seek to use the same policies to motivate everyone. This is mainly for
convenience and ease compared to catering for individual oddities '.indstone
'>BFG((. 'Tailoring' the policy to the needs of each individual is difficult but is far
more effective and can pay handsome dividends. )airness decisiveness giving
praise and constructive criticism can be more effective than money in the matter of
motivation.
.eadership is considered synonymous 'Tack '>BFB(( with motivation and the best
form of leadership is designated as :". situation adaptable leadership. !n this style
of leadership one is never surprised or shocked leadership must begin with the
chief e$ecutive and it is more a matter of adaptation than of imparting knowledge.
Jltimately it is the leadership %uality which leads to the success of a company
through team building and motivating its people.
'The one-minute manager'
" contemporary bestseller 'Blanchard Q 6ohnson '>BG=(( aimed at managers who
seek to make star performers of their subordinates. To start with the manager sets a
goal e.g. one page read in one minute and it is seen to be achieved by 'one minute'
of praising or reprimand as the case may be. But to be effective these must be given
'a( promptly 'b( in specific terms and the behavior rather than the person should
be praised or reprimanded.
The concept is basic and it makes sense although the book seeks to 'dramati*e' it.
'8ne minute' praising is seen to be the motivating force. +veryone is considered a
winner though some people are disguised as losers and the manager is e$tolled not
to be fooled by such appearances.
'Lessons from America's Best-run ompanies'
"nother bestseller !n :earch of +$cellence 'Peters Q 2aterman '>BGA((. :everal
criteria including analysis of annual reports and in1depth interviews were used to
pick >C 'model e$cellent companies' out of an initial sample of EA companies. "s
e$pected most of the action in high1performing companies revolved around its
people their success being ascribed to5
productivity through people0
e$traordinary performance from ordinary employees0
treating people decently.
Personnel function and in particular leadership were considered the most critical
components. !f the leaders in an organi*ation can create and sustain an environment
in which all employees are motivated the overall performance is bound to be good.
The three essentials for creating such an environment are5
fairness0
job security0 and
involvement.

8f all the resources available the human resource is clearly the most significant but
also the most difficult to manage. +$cellence can only be achieved through e$cellent
performance of every person rather than by the high1pitched performance of a few
individuals. "nd motivation is undoubtedly the cru$.
C'n)/,$i'n:
There is no simple answer to the %uestion of how to motivate people. ,an money
motivate3 4es but money alone is not enough though it does help. 2e have
discussed some of the pertinent theories bearing on human motivation and this is
balanced by some of the practical factors which can lead to e$cellence. #uman
resource remains the focal point and leadership the critical component and
motivation has to be 'tailored' to each individual. The ne$t section deals with an
important mode of motivation namely financial aspects of rewarding employees.
In(r'+,)(i'n:
The previous section dealt with motivation theory and practice. There is no doubt
that motivation is the cru$ for good performance but there is no clear cut answer to
the %uestion of how to motivate. The previous pages gave a glimpse of the answer
through various theories and practices.
Money is a factor in motivating people and this section concentrates on this.
+mployee reward systems are discussed in general and later in specifics in terms of
payment by results. Larious schemes for financial motivation are also described.
Money is important
This is perhaps saying the obvious. But it still needs to be said for a perusal of the
previous section may give the impression to the contrary at least judging from
Maslow's concept. -efreshing as it is if the theory was completely valid then at
least in affluent countries economic incentives should have lost all their force. This
we know is not correct.
"ccording to Peter &rucker '>BFC( 'there is not one shred of evidence for the alleged
turning away from material rewards... "ntmaterialism is a myth no matter how
much it is e$tolled.' !n fact they are taken so much for granted that their denial may
act as a de1motivator. '+conomic incentives are becoming rights rather than
rewards.'
There is no doubt that we live in a money1motivated world. "ny amount of human
relations cannot compensate for a lack of monetary reward. !f the reward is right
good human relations will give that e$tra *est to a team motivating them to give of
their best efforts. !nsufficient monetary reward cannot be compensated by good
human relations.
+ven dedicated footballers do not think of playing for +ngland they merely pay 'lip
service' to it.0 the financial rewards of playing for their clubs far e$ceed those
recieved from playing from their country .,ricketers and rugby players no longer
play for their own country but opt for the 'highest bidder'. Professional tennis
players have refused to play at 2imbledon the 'Mecca' of lawn tennis because the
rewards were not attractive.
!t is no different in the industrial world. :trikes for better salary and rewards do
still occur. "ll this despite the claim of psychologists that security is the prime need
of a person as indicated in the previous section. #as the sense of values changed
with time3 But we are not concerned here with the philosophical angle but with
hard facts of life in a commercial world.
:elf1motivation can go only so far and it needs to be constantly reinforced by
rewards. !n particular merit must be measured and rewarded regularly if it is to be
encouraged and sustained. The 'gold banana' in )o$boro has its origin in just an
ordinary banana which one of the pioneers could muster on the spur of the moment
when he discovered e$traordinary performance by one of the employees 'see ne$t
section.
Motivating e$ecutives5

:ince there is an indication from various surveys 'see previous section( that the blue1
collar and white1collar workers do not attach the same importance to financial
incentives. This is probably more due to differing value system of the two rather
than the importance each attaches to the money per section.
Properly used money can be a motivating factor but little money may have no
effect ',rystal '>BF?((. To achieve motivation of e$ecutives therefore5
reward should be meaningful0 and
reward should vary with performance.
The concept is simple but its implementation is not easy. #owever the job is well
worth trying. To be effective the reward should be 'tailored' to each individual but
only as part of the total compensation concept. !t is essential 'Moore '>BEG(( to
develop an overall program within which each compensation package must be
individuali*ed.
!"ecutive compensation elements:

There is also need for constant search of new ideas in this respect. The essentials of
an effective company1wide e$ecutive compensation scheme are5 sound salary1base
structure several fundamental compensation devices and considerable fle$ibility in
its application.
The five basic elements '+llig '>BGA(( of e$ecutive compensation are5
salary
short1term incentives
long1term incentives
employee benefits and
per%uisites.

"ny plan for e$ecutives should take into account the following factors5
+$ecutives perceive others as working less and paid more.
"ppearance of a reward as important a factor as the reward itself.
)le$ibility but not at the e$pense of discretion.
Performance rating should support the pay action.
,orrecting one ine%uity may lead to yet another.
" decision once announced is difficult to modify.
"n arithmetic increase in the number of people involved results in a
geometric increase in the time re%uired to reach agreement.
Motivating for high performance can cost a lot of money. <ot everyone can be
motivated by money alone however much. !ncentive pay plans should be designed
'!vancevich '>BG=(( not only to reward good performance but also to minimi*e the
negative side1effects such as conflict and grievance. "t times it is difficult to develop
a valid e%uitable and acceptable means of performance. Many pay plans fail
because of either not being suited to the particular situation or because of poor
implementation. !t is essential to consider the following aspects before designing a
pay plan to motivate performance5
preference of individual employees0
si*e of pay rewards for high performance0
method of motivating individual job performance0
subjective
2e have pointed out earlier that for effective and sustained motivation the reward
must be prompt and immediate. The e$ample of )o$boro has been %uoted. !n its
early days the company's very survival depended on technical innovation. .ate one
evening 'Peters Q 2aterman '>BGA(( a scientist walked into the president's office
with a working prototype. The president was dumbfounded by the elegance of the
solution and sought to reward him immediately and on the spot. -ummaging
through the drawers of his desk all he could find was a banana and this had to
suffice. This was the forerunner of the 'gold banana' concept a very apt and fitting
reward. .ikewise Thomas 2atson :nr. had made a practice of writing out a check
on the spot for any unusual achievement that he observed.
"#ecutive pay - a caution$
#owever we must introduce a note of caution. There is a connection '2hite '>BF=((
between e$ecutive pay and company si*e in terms of turnover or number of
employees but no connection between e$ecutive pay and improvement in
profitability 1 the bigger the company the higher the pay but efficiency is not
necessarily higher. The higher salary is probably because of a larger number of
levels in big companies. 8f course with the large number of variables involved it is
difficult to correlate any two isolated factors such as e$ecutive pay and overall
company efficiency.
There should be a direct correlation but perhaps the yardsticks available for this
purpose are inade%uate to establish it. .et us however reiterate that individual
e$ecutives have different senses of values of which money is one and an important
one at that. <o reward other than money is so fle$ible so measurable or so
controllable. But in using financial motivation the companies must be clear on what
they wish to achieve then define what managers are e$pected to contribute towards
the objectives and finally ensure that financial reward is linked to managerial
performance.
RPerformance related pay;
-eward can act as the 'catalyst' for improved performance and better productivity.
But reward as such is not enough and in any case it is not a substitute for good
management. -ather it is a part of management. ,ertain basic criteria are essential
for rewards to be effective. These include5
-eward should be %uick.
-eward should be significant.
The goals and rewards must be0 known understandable and attainable.
-eward must be distinctly and directly related to performance.
-eward should be irrevocable.
-eward should be compatible with job measurement.

!f the reward plan is seen to be unfair and unrealistic for e$ample promotion on the
basis of seniority or favoritism it may have a definitely negative effect as a
motivator. )or rewards to be effective they have to be generous and significant as
noted above hence they must be structured to attain a proper balance of motivating
people to purpose and at optimum effort.
-ewards are generally reckoned to improve productivity by somewhere of the order
of A? to =? per cent. This is nearly twice as much as that attained by goal1setting or
job redesign. But each incentive or reward system is likely to have value under
certain conditions only. #ence to be effective the rewards must be 'tailored' and
changed to suit the specific conditions. There is no magic formula for all situations
and at all times.
Productivity is usually but erroneously associated only with the workshop floor. But
total productivity which ultimately determines the profitability of the entire
organi*ation is the sum total of the productivity at various levels right up to the
,+8.
)or if the workers are not given the right materials at the right place and at the
right time their productivity will suffer due to no fault of theirs. The manager
therefore plays a vital role in the productivity of the workers and team.
8ne can even go as far to say that productivity is the only reason for the e$istence of
the manager. !ndividually the manager may be considered nonproductive in that he
or she does not contribute directly to the production but is responsible for
integrating the work of his or her team into a total productivity effort Thus a
manager can increase productivity indirectly by aiding to produce more and here
too financial motivation plays a major role.
%eward systems$
The financial rewards are basically of three types5
profit sharing0
job evaluation0 and
merit rating.
Profit sharing
Profit sharing could be on a macro basis or on a micro basis. The former relates to
the entire company as a whole and the latter to a particular section or group dealing
with a particular activity and9or product. 8n a macro level it would be difficult to
identify and reward outstanding performance. This is possible on a micro level by
treating the particular activity as a cost and profit center by itself. This is easier said
than done since overheads and other common services have to be charged and this
cannot be done completely objectively. The cost allocation in such cases is somewhat
arbitrary and the profit will therefore not be a true reflection of the performance of
that particular group or activity.
6ob evaluation
!n case of job evaluation the various component factors have to be isolated and
evaluated for purposes of inter1job comparison. +ach factor is assigned a rating on
the basis of a scale agreed beforehand by the union and the management joint
committee. The total rating for each job then forms the basis of wage structure.
#owever there must be a base level representing in effect the 'minimum wage'
depending on the nature of work and the geographical area. !n some cases and in
some countries these are stipulated by law. " typical though somewhat broad list of
job factors is as follows5
working environment0
physical characteristics0
mental characteristics0
e$tent of responsibility0
training and e$perience.
!n case of managers the factors are5
responsibility0
e$pertise0
human relations.
Merit rating
Merit rating has been used as an indicator of performance. +ach employee is rated
typically as e$cellent good average or poor in respect of the following abilities5
communication0
human relations including leadership and motivation0
intelligence0
judgment0
knowledge.
The rating unfortunately tends to be carried out purely mechanically and it carries
a heavy bias of the rater who may be too lenient may not be objective and may also
have favorites or otherwise in the group being rated.
!nformal @roup &ynamics5

!ntroduction5
6eff .ane was at his wits end. "s a newly appointed production manager he had
tried virtually everything to get his work group to come up to production standard.
The e%uipment was operating properly and the group had the training and
e$perience to meet e$pectations yet it was not performing well. 2hat was wrong3
"nd what could he do to correct the situation3
Managers and supervisors fre%uently face such a dilemma1standards that should be
met but aren't for what seems like no apparent reason. 2hat 6eff .ane and other
managers9 supervisors sometimes fail to reali*e is that within every organi*ation
there are often informal group pressures that influence and regulate individual
behavior.
!nformal groups formulate an implicit code of ethics or an unspoken set of
standards establishing acceptable behavior !n 6eff's department0 the informal group
may have established a norm below that set by the organi*ation subtly e$ercising
control over its members regarding the amount of output.
&ynamics of informal groups
!nformal groups almost always arise if opportunities e$ist.
8ften these groups serve a counter organi*ational function attempting to
counteract the coercive tendencies in an organi*ation. !f management prescribes
production norms that the group considers unfair for instance the group's recourse
is to adopt less demanding norms and to use its ingenuity to discover ways in which
it can sabotage management's imposed standards.
!nformal groups have a powerful influence on the effectiveness of an organi*ation
and can even subvert its formal goals. But the informal group's role is not limited to
resistance. The impact of the informal group upon the larger formal group depends
on the norms that the informal group sets. :o the informal group can make the
formal organi*ation more effective too.
" norm is an implied agreement among the group's membership regarding how
members in the group should behave. )rom the perspective of the formal group
norms generally fall into three categories1positive negative and neutral. !n other
words norms either support obstruct or have no effect on the aims of the larger
organi*ation.
)or e$ample it the informal group in 6eff's shop set a norm supporting high output
that norm would have been more potent than any attempt by 6eff to coerce
compliance with the standard. The reason is simple yet profound. The norm is of
the group members own making and is not one imposed upon them. There is a big
motivational difference between being told what to do and being an$ious to do it.
!f 6eff had been aware of group dynamics he might have reali*ed that informal
groups can be either his best friend or his worst enemy. #e should have been
sensitive to the informal groups within his area and he should have cultivated their
goodwill and cooperation and made use of the informal group leadership.
That is he should have wooed the leadership of the informal group and enlisted the
support of its membership to achieve the formal organi*ation's aims. The final effect
of his actions might have been positive or negative depending upon the agreement
or lack of it between the informal group and himself.
#arnessing the power of informal groups is no easy task. The re%uirements include5
an understanding of group dynamics and
an ability to bring about changes in informal group norms that positively
reinforce the formal organi*ation's goals.
"s a starting point managers and supervisors should at least be aware of the
reasons behind informal group formation and the properties and characteristics of
these groups.
!nformal @roup &ynamics

#ormation of informal work groups:
!ndividuals are employed by an organi*ation to perform specific functions.
"lthough the whole person joins an organi*ation attention is usually focused on the
partial person the part of the individual doing the job. Because people have needs
that e$tend beyond the work itself informal groups develop to fill certain emotional
social and psychological needs.
The degree to which a group satisfies its members needs determines the limits within
which individual members of the group will allow their behavior to be controlled by
the group.
Sense of belonging$
:everal major functions are served by informal groups. )or e$ample the group
serves as a means of satisfying the affiliation needs of its members for friendship
and support. People need to belong to be liked to feel a part of something. Because
the informal group can withhold this attractive reward it has a tool of its own to
coerce compliance with its norms.
!dentity and self esteem$
@roups also provide a means of developing enhancing and confirming a person's
sense of identity and self1esteem. "lthough many organi*ations attempt to recogni*e
these higher needs the nature of some jobs1their technology and environment1
precludes this from happening. The long assembly line or endless rows of desks
reinforce a feeling of depersonali*ation.
Stress reduction$
"nother function of groups is to serve as an agent for establishing and testing social
reality. )or instance several individuals may share the feeling that their supervisor
is a slave driver or that their working conditions are inade%uate. By developing a
consensus about these feelings group members are able to reduce the an$iety
associated with their jobs.
&'ll for one( one for all)
)inally the informal group serves as a defense mechanism against forces that group
members could not resist on their own. 6oining forces in a small group makes the
members feel stronger less an$ious and less insecure in the face of a perceived
threat.
"s long as needs e$ist that are not served by the formal organi*ation informal
groups will form to fill the gap. :ince the group fills many important needs for its
members it influences member behavior.
!nformal @roup &ynamics
Leadership of informal work groups:
!nformal groups possess certain characteristics that if understood can be used to
advantage. 2hile many of these characteristics are similar to those of formal
organi*ations others are uni%ue. 8ne attribute of informal groups is rotational
leadership.
The informal leader emerges as the individual possessing %ualities that the other
members perceive as critical to the satisfaction of their specific needs at the
moment0 as the needs change so does the leader. 8nly rarely does a single individual
possess all of the leadership characteristics needed to fill the various needs of the
group.
Jnlike the formally appointed leader who has a defined position from which to
influence others the informal leader does not possess formal power. !f the informal
leader fails to meet the group's e$pectations he or she is deposed and replaced by
another. The informal group's judgment of its leaders tends to be %uicker and more
cold1blooded than that of most formal groups.
Supervisory strategies$
The supervisor can use several strategies to affect the leadership and harness the
power of informal groups. 8ne %uick and sure method of changing a group is to
cause the leader to change one or more of his or her characteristics. "nother is to
replace the leader with another person.
8ne common ploy is to systematically rotate out of the group its leaders and its key
members. ,onsidering the rotational nature of leadership a leader may emerge who
has aims similar to the formal goals of the organi*ation. There are problems with
this approach however. Besides the practical difficulties of this this strategy is
blunted by the fact that group norms often persist long after the leader has left the
group.
" less Machiavellian approach is for the supervisor to be alert to leaders
sympathetic to the supervisor's objectives and to use them toward the betterment of
the formal group's effectiveness. :till another method is to attempt to 'co1opt'
informal leaders by absorbing them into the leadership or the decision1making
structure of the formal group. ,o1opting the informal leader often serves as a means
of averting threats to the stability of the formal organi*ation.
-emember though a leader may lose favor with the group because of this
association with management and group members will most likely select another
leader.
Better Management by Perception

The :elf1fulfilling Prophecy or Pygmalion +ffect
!n >B>> two researchers with the unlikely names of :tumpt and Pfungst began an
investigation of an even more unlikely horse named ,lever #ans.
The unlikely thing about #ans was that he could add subtract multiply divide
spell and solve problems involving musical harmony. "ny number of animals had
been taught to perform such tricks before but they all had to be cued by their
trainers.
The really clever thing about ,lever #ans was that he could run through his
repertoire even when his owner a @erman mathematician named Lon 8sten was
not present. The horse would answer %uestions for anyone. Lon 8sten swore he was
mystified by the whole thing.
!n '*eachers and the +earning ,rocess' 'Prentice1#all >BF>( -obert :trom describes
what :tumpt and Pfungst learned. M"mong the first discoveries made was that if the
horse could not see the %uestioner #ans was not clever at all. :imilarly if the
%uestioner did not himself know the answer to the %uestion #ans could not answer
it either... " forward inclination of the head of the %uestioner would start #ans
tapping Pfungst observed... as the e$perimenter straightened up #ans would stop
tapping he found that even the raising of his eyebrows was sufficient. +ven the
dilation of the %uestioner's nostrils was a cue for #ans to stop tapping.M
!n other words unwittingly people were giving the horse the correct answers by
communicating their e$pectations to him via physical signals. #ans was able to pick
up on those signals even subtle ones.
#e was clever only when people e$pected him to be!
A management concept:
"s it is known and taught today in management and education circles the notion of
the self1fulfilling prophecy was conceptuali*ed by -obert Merton a professor of
sociology at ,olumbia Jniversity. !n a >BDF work called 'Social *heory and Social
Structure' Merton said the phenomenon occurs when Ma false definition of the
situation evokes a new behavior which makes the original false conception come
true.M
!n other words once an e$pectation is set even if it isn't accurate we tend to act in
ways that are consistent with that e$pectation. :urprisingly often the result is that
the e$pectation as if by magic comes true.
An ancient myth:
Magic certainly was involved in the ancient myth from which the idea of the self1
fulfilling prophecy takes its other common name. "s 8vid told the story in the tenth
book of Metamorphoses the sculptor Pygmalion a prince of ,yprus sought to
create an ivory statue of the ideal woman.
The result which he named @alatea was so beautiful that Pygmalion fell desperately
in love with his own creation. #e prayed to the goddess Lenus to bring @alatea to
life. Lenus granted his prayer and the couple lived happily ever after.
A modern update:
That's where the name originated but a better illustration of the MPygmalion +ffectM
is @eorge Bernard :haw's play Pygmalion in which Professor #enry #iggins insists
that he can take a ,ockney flower girl and with some vigorous training pass her off
as a duchess. #e succeeds. But a key point lies in a comment by the trainee +li*a
&oolittle to #iggins' friend Pickering5
M4ou see really and truly apart from the things anyone can pick up 'the dressing
and the proper way of speaking and so on( the difference between a lady and a
flower girl is not how she behaves but how she's treated. ! shall always be a flower
girl to Professor #iggins because he always treats me as a flower girl and always
will but ! know ! can be a lady to you because you always treat me as a lady and
always will.M
The $ottom line%
,onsciously or not we tip people off as to what our e$pectations are. 2e e$hibit
thousands of cues some as subtle as the tilting of heads the raising of eye brows or
the dilation of nostrils but most are much more obvious. "nd people pick up on
those cues.
Better Management by Perception5
Oey Principles5
The concept of the self1fulfilling prophecy can be summari*ed in these four key
principles5
2e form certain e$pectations of people or events
2e communicate those e$pectations with various cues
People tend to respond to these cues by adjusting their behavior to match
them
The result is that the original e$pectation becomes true

This creates a circle of self1fulfilling prophecies.
&oes it work3
" convincing body of behavioral research says it does.
!n >BF> -obert -osenthal a professor of social psychology at #arvard described an
e$periment in which he told a group of students that he had developed a strain of
super1intelligent rats that could run ma*es %uickly. #e then passed out perfectly
normal rats at random telling half of the students that they had the new Mma*e1
brightM rats and the other half that they got Mma*e1dullM rats.
The rats believed to be bright improved daily in running the ma*e they ran faster
and more accurately. The MdullM rats refused to budge from the starting point ABS
of the time while the MbrightM rats refused only >>S of the time.
!ntroduction5
The nature of work and its organi*ation has interested managers economists and
social scientists for as long as people have been employed by others to engage in
productive activity. ':ee section on scientific management(.Managers have largely
been interested in ma$imi*ing output from available resources.
+conomists and social scientists have raised %uestions about the organi*ation of
work in relation to issues of the individual and society in general. The aims of this
section are to5
&efine selected terms applicable to job design and work organi*ation
+$amine the aspects of traditional thinking applicable to job design and
work organi*ation
Propose alternative factors to be considered that take cogni*ance of
employees needs
@enerate some ideas on how these factors may be applied in work situations
in e$isting and new organi*ations
:tress the importance of fitting the work to the worker in order to achieve
the productivity benefit
-ob .esign .efined
6ob design and work organi*ation is the specification of the contents method
and relationships of jobs to satisfy technological and organi*ational
re%uirements as well as the personal needs of job holders.
<.B. " full glossary of terms appropriate to job design and work organi*ation can be
found in the 6ob &esign section of the P&) 'which you can purchase by clicking on
the 'Purchase P&)' icon.(
>BF?'s
!n the >BF?'s increased interest in how best to organi*e work in the light of5
The loss of productive effort due to industrial action and absenteeism
!ncreased demands for employee participation and industrial democracy and
!mposition of employment legislation which appeared to make the task of
controlling the workforce more difficult.
>BG?'s
!n the >BG?'s major changes took place in the workplace.
-ecession with attendant retrenchments
!ncreased competition
-ecognition of the need to introduce new technology
:hift in relative costs away from the worker to the machine and or process
>BB?'s and the )uture ,hallenge
!n the >BB?'s the trends started in the G?'s continue at an increased pace. The
challenge now and in the future for managers is the optimum design of jobs and
work organi*ation to meet unsteady circumstances brought on in the workplace by
changes in the e$ternal environment.
6ob &esign
*raditional views on /ob design and work organization
Two basic assumptions dominated early thinking about the scientific management
approach to the design of jobs and work organi*ation.
)irst "ssumption I Management
Management can be most effective if it devises rules and procedures to govern the
way in which the task is to be undertaken. Management is assumed to be more
effective than labor at devising methods for e$ecuting the work and then at planning
and organi*ing. By breaking the work down into simple elements0
the training of workers is clearly simplified
workers are more easily substituted one for another
supervision is made easier as it is apparent when workers are doing
something that is not part of the specified task.
:econd "ssumption I 2orkers
#uman beings are rational economic beings. The prime goal is assumed to be
monetary and conse%uently reward systems which relate pay levels to output are
seen as likely to result in ma$imum output.
"s such humans will e$amine a situation and identify a course of action likely to
ma$imi*e their self interest and act accordingly.
"ll that is re%uired to ma$imi*e output from the organi*ations perspective is to
hire the right people train them properly and construct an appropriate reward
system. !f the work can be paced say be a machine a worker can develop a natural
rhythm and momentum.
Some research findings
!n the >BD?'s .ouis &avis reported a survey of job design practices in large
industrial organi*ations in the J:". The study looked at low to moderately skilled
jobs assembly line packing inspection etc.
,onsiderable variation in policies towards job design were noted and in the
responsibilities of job design. !n some companies industrial engineers were
responsible. !n others personnel and in others supervisors. 8verall no systematic
approach was noted or that any alternative principles were being evaluated. The
primary objective set in each instance was the minimi*ation of costs of performing a
task.
,riteria used in job design from the study included5
+conomic considerations
o the desire to minimi*e costs
Technical considerations
o relating to process re%uirements
Time and :pace
o limitations imposed by time and space
:kill re%uirements
o availability of labor with the right skills
Machinery
o e%uipment needed
!ndustrial relations
o management 9 union agreements relating to staffing levels and wages
o traditions customs and norms of the plants
' better way?
"ll too often in our postIindustrial societies despite much research on what
constitutes a productive rewarding work environment e$amples of counter
productive organi*ational environments can be all too easily found.
6ob designers would appear to have ignored the psychological and social aspects of
work to the detriment of the organi*ation the workforce and society as a whole.
8pportunities 'and the benefits flowing from( the development of problem solving
and other skills in employees at all levels are being s%uandered.
)or instance high levels of task rationali*ation are associated with high levels of
boredom which in turn is associated with job dissatisfaction and counter productive
worker behavior. '!t should be noted that such jobs have some appeal to some
workers.(
-esearch some of which is described on this site indicates that there are no clear
rules to design jobs. !t can be said though that people bring a diverse range of skills
and abilities to the workplace together with a diverse range of e$periences
aspirations and e$pectations.
The task facing responsible organi*ations would therefore be to strike a balance
between the needs of the organi*ation to achieve it's goals and the creation of a
working environment which results in the job satisfaction for employees.
Selection criteria$
!n the previous sections we have e$amined alternative approaches to designing jobs
and work organi*ation. 2e have identified limitations in these approaches.
#owever we have also seen the principles underlying the several approaches.
This section brings together principles which seem to have relevance in the design of
any job and work organi*ation. This will be followed by suggestions as to how these
principles may be applied in the design process.
:uitable jobs
"ttributes of jobs which contribute to the motivation of employees and can be
translated into principles for the design of jobs as follows5 an optimum level of
variety0
an appropriate degree of repetitiveness0
an appropriate degree of attention with accompanying mental absorption0
an optimum level of responsibility for decisions and degree of discretion
present0
employee's control over their own job0
the presence of goals and achievement feedback0
perceived contribution to a socially useful product or service0
opportunities for developing friendships0
where dependent upon others for task achievement some influence over the
way the work is carried out0
perceived skill utili*ation.
)ocus on 2ork @roups
The preceding criteria can be used to assess any individual job0 however as we saw
earlier it may be more appropriate to focus attention on the design of the work
group and its activities rather than the design of each individual job. Membership of
the work group can have certain positive benefits for the individual. These e$tend
beyond the obvious aspect of social opportunities to include the mutual help and
support which is available and the wider range of skills and responsibilities which
are often demanded of all members.
!n designing the work group activity one of the basic principles is that of 'minimum
critical specification' of the tasks and the 'minimum critical specification of tasks to
jobs. :pecification of objectives remains essential but the means for obtaining them
in many instances can be decided by the task performer.
This approach should result in a greater degree of fle$ibility for individual job
holders within the work system and allow for their personal development through
increased involvement in decision1making relating to the control and regulation of
the work system.
:uggested guiding principles for the design of work group activity
include5
Primary work groups should have between four and twenty members.
The primary work group should have a designated leader who is accountable
for the group's performance.
The group should be assigned tasks which make up a complete unit of work.
2herever possible the group members should have responsibility for
planning their own work.
@roup members should then be involved in evaluating their performance in
relation to the plans.
!n designing the work system it will often be the case that some overriding factor
limits the application of all these principles. <evertheless they can form the basis for
%uestioning the assumptions being made in the design process and lead to discussion
about the possible conse%uences of ignoring them.
'pplication of principles$
"n approach is advocated in which each situation is considered in relation to certain
guiding principles.
Jni%ue solutions are identified tailored to the needs of both the organi*ation and
the individuals concerned both managers and workers.
,onsideration is given to the particular conte$t in which the work is to be
undertaken. +conomic factors as well as social factors have to be considered.
+$isting management9 union agreements custom and practice the aspirations and
motivation of the workers as well as their skills and potential will affect the solutions
proposed.
The job design process
!n this section we will consider ways in which the design criteria proposed in the
previous sections can be employed in the design process.
"ttention will be given specifically to the psychological needs of workers and how
they may be met. The technical aspects of design in which the normal techni%ues of
industrial engineering and organi*ation and methods are employed will not be
considered here.
0irst Step$
The first step in the design process is to specify the design principles to be applied in
the particular situation. This first step re%uires those responsible for the design to
form a view about the
skills
abilities
needs and
motivation of job incumbents.

The simple %uestionnaire ,haracteristics of the Typical +mployee P&) 'available in
the P&) version( can be used to elicit the views held by the members of the design
team and help in formulating an acceptable model of human behavior.
The particular results shown could be collected from a project group charged with
designing9 redesigning a new9 e$isting facility in a company. The team could
comprise members of management and supervision. "t the design stage no
operatives had been recruited.
,onsiderable initial differences will be apparent in the opinions held by members of
the team and considerable time will need to be spent in elaboration and debate.
Second Step$
The ne$t stage involved completing the %uestionnaire !deal 6ob ,haracteristics of
the Typical +mployee 'contained in the P&) version of this article.( The result
should be agreement over the principles to be applied in the design of jobs and
work organi*ation in a particular situation.
+arlier we introduced the concept of minimum critical specification of jobs to tasks
in the design of group activity. This approach enables the group to make decisions
about the methods and organi*ation of work.
"long with this there should be an e$amination of sources of performance variation
in the work system and a %uestioning of who should be responsible for monitoring
and regulating the system.
" process defects analysis can assist in this process. !n carrying out this analysis the
stages in the process have to be identified initially. Then sources of variances are
listed relating to each stage. The relationships of sources of possible variances to
problems at later stages in the process can be shown in the matri$ form. ':uggested
pro forma is contained in the P&) version of this article(.
Process defects analysis can identify the problems introduced in one stage of a work
process flow can have an impact on the operations at later stages. Those involved in
compiling the analysis chart considerably improve their understanding of the total
process. This however would be a secondary benefit of the chart.
The main benefit came about through rethinking the allocation of responsibilities
and the steps taken to make the process9 system more responsive thereby reducing
losses.
!n the design process we have now looked at means for deciding the criteria to be
adopted in designing jobs and work organi*ation. 2e have also seen a method for
identifying key decisions in the operation of the work system.
0inal Step$
)inally a means for comparing alternative job and work organi*ation designs is
presented. This is in the form of a checklist which covers the areas of work content
work organi*ation
working conditions
social opportunities and
career opportunities.
The method is illustrated in the 'nalysis of -ob .esign and 1ork Structure
proforma 'contained in the P&) version of this article( where an e$ample of an
analysis of clerical work is presented. !f the work in this section of this organi*ation
is e$pected to change then the job design 9 work organi*ation project team would
use the analysis proforma.
This would then form the basis of a discussion document for the project team and
for consideration of feasible alternatives.
"n analysis of the proposed jobs or those to be redesigned can be carried out so as
to form a basis for discussion with the project team and later consideration of
feasible alternatives.
!n the 6ob Profile &esign :ummary for an invoice clerk ' contained in the P&)
version of this article ( career opportunities and work organi*ation were assessed
particularly poorly. The work content also scored below average. 6obs being
replaced by the new systems could be engineered to offer greater opportunities for
job holders in this position.
The design team now has a method for looking at broader aspects of the job beyond
those normally considered in financial appraisals. They are in a better position to
consider the implications on and for employee motivation of the proposed changes
as well as considering other options.
2onclusions$
!n this section we have looked at traditional as well as more recent approaches to the
design of jobs and work organi*ation.
,riteria applied when making decisions about jobs and work organi*ation were
critici*ed by .ouis &avis in the >BD?'s for more or less ignoring the social and
psychological needs of job holders. 2hilst there is now a much greater awareness of
these aspects those responsible for designing systems often are forced to operate
within narrow parameters.
&ecisions made earlier by designers of manufacturing e%uipment often impose
constraints on the choices available at the later stage. #owever whilst recogni*ing
these constraints it would appear that those responsible for job design are still
dominated in their decisions by those factors critici*ed by &avis.
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