CONTENTS Page No.

Preface Acknowledgement Concept of Motivation Nature of Motivation Types of Needs Motivation ! "e#aviour Motivation ! performance &ole of Motivation

2 3 4 5 $ % ' )* ))-)3 )4-) )$-22 23 24-25 2 2$ 2%

T#eories of Motivation Maslow(s need #ierarc#y +er,"erg(s motivation-#ygiene t#eory ./uity T#eory Mc0regor(s T#eory 1 and T#eory 2 T#eory 3 Alderfer(s .&0 T#eory McClelland(s need t#eory 4room(s .5pectancy T#eory Case 6tudy

AC7N89:.;0.M.NT
We would like to express our gratitude to Professor R.K Singh for encouraging us to prepare the term paper .The term paper would not have been completed without his able guidance and ideas. It was our opportunity to work with such a literate .Our sincere thanks to the staff members of GH !I"# library for helping in every possible way $ co!operating% supporting without which the compilation of the term report would not have been in the present form . &inally$ we would acknowledge the co!operation and hard work of our team members who put their time in successful completion of the term paper.

Group Members
ANURAG YADAV APARNA PATHAK ARPIT SINGH ARSHI TANDON ARTI SAHNI ATUL SINGH KUSH AHA

PRE!ACE
The term paper has been undertaken in order to fulfil the compulsory part of the postgraduate diploma in management conducted by 'r. Gaur Hari inghania Institute of "anagement and #esearch. The term paper has given an insight of the (motivational theories). We hope that it will prove helpful for those who want to gain knowledge about the motivational theories.

CONCEPT O! MOTIVATION
3

<n order to understand t#e concept of motivation= we #ave to e5amine t#ree terms > motive= motivating and motivation and t#eir relations#ip?

1. MOTIVE "
@ A motive is an inner state t#at energises= activates= or moves and directs "e#aviour towards goals?A

2. MOTIVATING"
Motivating is a term w#ic# implies t#at one person includes anot#er= to engage in action "y ensuring t#at a c#annel to satisfy t#e motive "ecomes availa"le and accessi"le to t#e individual?

3. MOTIVATION " Dub#$ %as &e'#$e& mo(#)a(#o$ as"

@Motivation is t#e comple5 force starting and keeping a person at at work in an organisation? Motivation is somet#ing t#at moves t#e person to action= and continues #im in t#e course of action already initiatedA

A**or&#$g (o M*!ar+a$& ,
@ Motivation refers to t#e way in w#ic# urges= drives= aspirati -ons= strivings= or needs direct= control= or e5plain t#e "e#aviour of #uman "eing?

NATURE O! MOTIVATION

1. -ase& o$ Mo(#)es" Motivation is "ased on individual(s motives w#ic# are internal to t#e individual ? T#ese motives are in t#e form of feelings t#at t#e individual lacks somet#ing? <n order to overcome t#is feeling = #e tries to "e#ave in a manner w#ic# #elps in overcoming t#is feeling? 2. A''e*(e& b. Mo(#)a(#$g" Motivation is affected "y way t#e individual is motivated ? <t can also activate t#e latent needs in t#e individual = t#at is = t#e needs t#at are t#e less strong and somew#at dormant = and #arness t#em in a manner t#at would "e functional for t#e organisation? 3. Goa+/&#re*(e& -e%a)#our" Motivation leads to goal-directed "e#aviour? A goal-directed "e#aviour is one w#ic# satisfies t#e cause for w#ic# "e#aviour takes place? 4. Re+a(e& (o Sa(#s'a*(#o$" satisfaction refers to t#e contentment e5periences of an individual w#ic# #e derives out of need fulfilment? T#us satisfaction is a conse/uence of rewards and punis#ments associated wit# past e5periences? 5. Comp+e0 Pro*ess" Motivation is a comple5 process B comple5ity emerges "ecause of t#e nature of needs and t#e type of "e#aviour t#at is attempted to satisfy t#ose needs? 6. Perso$ Mo(#)a(e& #$ To(a+#(. " A person is motivated in totality and not in part ? .ac# individual in t#e organisation is a self-contained unit and #is needs are interrelated? T#ese affect #is "e#aviour in different ways?

TYPES O! NEEDS

T#ere are many needs w#ic# an individual may #ave and t#ere are various ways in w#ic# t#ese may "e classified? T#e "asic o"Cective "e#ind classification of needs into different categories is to find out similarity and dissimilarity in various needs so t#at incentives are grouped to satisfy t#e needs falling under one category or t#e ot#er? T#us needs may "e grouped into t#ree categories >

1. Pr#mar. Nee&s" Primary needs are also known as psyc#ological = "iological = "asic or unlearned needs ? T#ese needs are common to all #uman "eings = t#oug# t#eir intensity may differ ? 6ome of t#e needs are food = sleep = air to "reat#e etc? T#ese needs arise out of t#e "asic p#ysiology of life and are important for survival and preservation of species ?T#ese needs are conditioned "y social practice . 2.

Se*o$&ar. Nee&s" As contrast to t#e primary needs= secondary needs are not natural "ut are learned "y t#e individual t#roug# #is e5perience and interaction ?T#erefore= t#ese are also called learned or derived needs? .mergence of t#ese needs depends on learning ? T#ere may "e different types of secondary needs like need of power= ac#ievement= status= affiliation= etc?

3. Ge$era+ Nee&s" T#ere are a num"er of needs w#ic# lie in t#e grey area "etween t#e primary and secondary classifications? <n fact= t#ere are certain suc# needs for competence= curiosity= manipulation= affection etc?

MOTIVATION AND -EHAVIOUR

Motivation causes goal-directed "e#aviour? Deeling of a need "y an individual generates a feeling t#at #e lacks somet#ing? T#is lack of somet#ing creates tension in t#e mind of individual? To overcome t#is state #e engages #imself in a "e#aviour to satisfy #is needs? T#is is goal-directed "e#aviour? GOALDIRECTED BEHAVIOUR GOALFULFILMENT/ NEED SATISFACTION

NEED

TENTION

FAVOURABLE ENVIRONMENT

0oal-directed "e#aviour leads to goal-fulfilment and t#e individual succeeds in fulfilling #is needs and t#ere"y overcoming #is tension in t#e favoura"le environment? Ee#aviour ends t#e moment tension is released? +owever= satisfaction of one need leads to feeling of anot#er need? T#us goal-directed "e#aviour is a continuous process?

!ACTORS A!!ECTING INDIVIDUAL PER!ORMANCE

MOTIVATION ABILITY RESOURCE S PERFORMANCE SENSE OF COMPETENCE ROLE PERCEPTION E TRINSIC

REWARD

INTRINSIC

1. Mo(#)a(#o$> :evel of motivation derives an individual for work ?

Motivation is "ased on motive w#ic# is a feeling t#at an individual lacks somet#ing ? T#is feeling creates some sort of tension in #is mind ? <n order to overcome t#is tension= #e engages in goal-directed "e#aviour ? T#us motivation "ecomes a prime mover for efforts and "etter work performance?

1. Se$se o' Compe(e$*e> 6ense of competence denotes t#e e5tent to w#ic#

an individual consistently regards #imself as capa"le of doing a Co"?6ense of competence of an individual depends to a very great e5tent on #is locus of control? :ocus of control means w#et#er people "elieve t#at t#ey are in control of events or events control t#em?

2. Ab#+#(." A"ility is e5pressed in t#e form of t#e following e/uation>

A"ility F knowledge 5 skill 7nowledge refers to t#e possession of information and ideas in a particular field w#ic# may "e #elpful in developing relations#ips among different varia"les related to t#at field ? 6kill refers to e5pertness= practical a"ility or facility in action or doing somet#ing ?

3. Ro+e Per*ep(#o$ * A role is t#e pattern of actions e5pected of a person in

activities involving ot#ers ? &ole reflects a person(s position in t#e social system wit# its accompanying rig#ts and o"ligations ? &ole perception is #ow #e t#inks #e is supposed to act in #is own role and #ow ot#ers act in t#eir role? T#ere are two types of pro"lems w#ic# emerge in role specification > role am"iguity and role conflict ? &ole am"iguity denotes t#e state in w#ic# t#e individual is not clear w#at is e5pected from #im in t#e Co" situation ? &ole conflicts is t#e situation in w#ic# t#e individual engages in two or more roles simultaneously and t#ese roles are mutually incompati"le ?

5. Orga$#sa(#o$a+ Resour*e" 8rganisational &esources denote various types of

facilities G p#ysical and psyc#ological G w#ic# are availa"le at t#e work place P#ysical facilities include la G p#ysical and psyc#ological G w#ic# are availa"le at t#e work place? P#ysical facilities include layout of t#e work place and p#ysical environment ? Psyc#ological facilities include training and development facilities = reward system= motivating leaders#ip styles and so on

&8:. 8D M8T<4AT<8N
Motivation is one among t#e various factors affecting individual performance? All organisational facilities will go waste in t#e lack of motivated people to utilise t#e facilities effectively? T#e importance of motivation in an organi,ation may "e summed up as follows *

)? +ig# Performance :evel > Motivated employees put #ig#er performance as

compared to ot#er employees? <n a study it was found t#at motivated people employees worked close to %*-'* percent of t#eir capa"ility? +ig# perform -ance is a must for an organisation "eing successful and t#is performance comes "y motivation?

2. :ow .mployee Turnover > Motivated employees stay in t#e organisation and
t#eir a"senteeism is /uite low? +ig# turnover and a"senteeism creates many pro"lems in t#e organisation?

3? Acceptance of 8rganisational C#anges > 8rganisations are created in t#e

society? Eecause of c#anges in society= organisation #ave to incorporate t#ose c#anges to cope up wit# t#e recruitment of t#e time? 9#en t#ese c#anges are introduced in t#e organisation= t#ere is a tendency to resist t#ese c#anges "y t#e employees? +owever if t#ey are properly motivated= t#ey accept= introduce= and implement t#ese c#anges keeping t#e organisation on t#e rig#t track of progress?

MASLO

NEED HIERARCHY THEORY

"

A well known proponent of t#e content t#eory is A"ra#am maslow w#o stated t#at t#ere is a set of fine needs and t#at t#ese "ecome drivers or motivators w#en a deficiency state arises? T#ese fine need in ascending order are as follows>)? P#ysiological 2? 6ecurity 3? 6ocial 4? .steem 5? 6elf Gactualisation

P#ysiological needs>- t#is includes t#e most "asic needs for survival including food= water= s#elter=clot#ing and similar?w#en t#ese needs #as "een fulfilled = we move onto t#e ne5t level?

6ecurity>- t#is encompasses t#e need for safety and a feeling of security ?people wit# a #ig# concern for t#is need may c#oose less risky pu"lic services Co"s in preference to "eing a freelance consultant?

6ocial>-t#is covers our need for love= affection= "elongings and sacrificing relations#ip wit# family= friends= colle/ues and more intimate contacts

.steem >-maslow "elieved t#at people generally need to #ave a good evaluation of t#emselves and t#ey desire t#at ot#ers also value and respect t#em ?#e says t#at it is only from #aving our needs for love "asically met t#at we can aspire to working on t#is level of need ?t#e maCority of people on level 3 and 4 = #aving satisfied ) and 2?

6elf actuali,ation>-w#en a person #as satisfied all four needs of t#e lower level needs? maslow proposed t#at t#ey could direct attention to t#e #ig#est level needs ssss

1#

Her4berg5s Mo(#)a(#o$6H.g#e$e T%eor. 7T8o !a*(or T%eor.9

To "etter understand employee attitudes and motivation= Drederick +er,"erg performed studies to determine w#ic# factors in an employeeHs work environment caused satisfaction or dissatisfaction? +e pu"lis#ed #is findings in t#e )'5' "ook The Motivation to Work? T#e studies included interviews in w#ic# employees w#ere asked w#at pleased and displeased t#em a"out t#eir work? +er,"erg found t#at t#e factors causing Co" satisfaction Iand presuma"ly motivationJ were different from t#ose causing Co" dissatisfaction? +e developed t#e mo(#)a(#o$6%.g#e$e t#eory to e5plain t#ese results? +e called t#e satisfiers motivators and t#e dissatisfiers hygiene factors= using t#e term K#ygieneK in t#e sense t#at t#ey are considered maintenance factors t#at are necessary to avoid dissatisfaction "ut t#at "y t#emselves do not provide satisfaction? T#e following ta"le presents t#e top si5 factors causing dissatisfaction and t#e top si5 factors causing satisfaction= listed in t#e order of #ig#er to lower importance?

!a*(ors A''e*(#$g :ob A((#(u&es

Lea&#$g (o D#ssa(#s'a*(#o$

Lea&#$g (o Sa(#s'a*(#o$

Company policy 6upervision &elations#ip wLEoss 9ork conditions 6alary &elations#ip wLPeers

Ac#ievement &ecognition 9ork itself &esponsi"ility Advancement 0rowt#

+er,"erg reasoned t#at "ecause t#e factors causing satisfaction are different from t#ose causing dissatisfaction= t#e two feelings cannot simply "e treated as opposites of one anot#er? T#e opposite of satisfaction is not dissatisfaction= "ut rat#er= no satisfaction? 6imilarly= t#e opposite of dissatisfaction is no dissatisfaction? 9#ile at first glance t#is distinction "etween t#e two opposites may sound like a play on words= +er,"erg argued t#at t#ere are two distinct #uman needs portrayed? Dirst= t#ere are p#ysiological needs t#at can "e fulfilled "y money= for e5ample= to purc#ase food and s#elter? 6econd= t#ere is t#e psyc#ological need to ac#ieve and grow= and t#is need is fulfilled "y activities t#at cause one to grow?

11

Drom t#e a"ove ta"le of results= one o"serves t#at t#e factors t#at determine w#et#er t#ere is dissatisfaction or no dissatisfaction are not part of t#e work itself= "ut rat#er= are e5ternal factors? +er,"erg often referred to t#ese #ygiene factors as K7<TAK factors= w#ere 7<TA is an acronym for 7ick <n T#e A???= t#e process of providing incentives or a t#reat of punis#ment to cause someone to do somet#ing? +er,"erg argues t#at t#ese provide only s#ort-run success "ecause t#e motivator factors t#at determine w#et#er t#ere is satisfaction or no satisfaction are intrinsic to t#e Co" itself= and do not result from carrot and stick incentives?

Imp+#*a(#o$s 'or Ma$ageme$(

<f t#e motivation-#ygiene t#eory #olds= management not only must provide #ygiene factors to avoid employee dissatisfaction= "ut also must provide factors intrinsic to t#e work itself in order for employees to "e satisfied wit# t#eir Co"s? +er,"erg argued t#at job enrichment is re/uired for intrinsic motivation= and t#at it is a continuous management process? According to +er,"erg>

T#e Co" s#ould #ave sufficient c#allenge to utili,e t#e full a"ility of t#e employee? .mployees w#o demonstrate increasing levels of a"ility s#ould "e given increasing levels of responsi"ility? <f a Co" cannot "e designed to use an employeeHs full a"ilities= t#en t#e firm s#ould consider automating t#e task or replacing t#e employee wit# one w#o #as a lower level of skill? <f a person cannot "e fully utili,ed= t#en t#ere will "e a motivation pro"lem?

12

Critics of +er,"ergHs t#eory argue t#at t#e two-factor result is o"served "ecause it is natural for people to take credit for satisfaction and to "lame dissatisfaction on e5ternal factors? Durt#ermore= Co" satisfaction does not necessarily imply a #ig# level of motivation or productivity? +er,"ergHs t#eory #as "een "roadly read and despite its weaknesses its enduring value is t#at it recogni,es t#at true motivation comes from wit#in a person and not from 7<TA factors?

13

A&ams5 E;u#(. T%eor. T%e T%eor. Summar#4e&"

T#e Adams( ./uity T#eory is named for Mo#n 6tacey Adams= a workplace and "e#avioural psyc#ologist= w#o developed t#is Co" motivation t#eory in )' 3? Muc# like many of t#e more prevalent t#eories of motivation It#eories "y MaslowHs +ierarc#y of Needs= +er,"ergHs T#eory= etc?J= t#e Adams( ./uity T#eory acknowledges t#at su"tle and varia"le factors affect an employee(s assessment and perception of t#eir relations#ip wit# t#eir work and t#eir employer? T#e t#eory is "uilt-on t#e "elief t#at employees "ecome de-motivated= "ot# in relation to t#eir Co" and t#eir employer= if t#ey feel as t#oug# t#eir inputs are greater t#an t#e outputs? .mployees can "e e5pected to respond to t#is is different ways= including de-motivation Igenerally to t#e e5tent t#e employee perceives t#e disparity "etween t#e inputs and t#e outputs e5istJ= reduced effort= "ecoming disgruntled= or= in more e5treme cases= per#aps even disruptive?

Ho8 (o App+. (%e A&ams5 E;u#(. T%eor."

<t is important to also consider t#e Adams( ./uity T#eory factors w#en striving to improve an employeeHs Co" satisfaction= motivation level= etc?= and w#at can "e done to promote #ig#er levels of eac#? To do t#is= consider t#e "alance or im"alance t#at currently e5ists "etween your employeeHs inputs and outputs= as follows>

I$pu(s (.p#*a++. #$*+u&e"

.ffort :oyalty +ard 9ork Commitment 6kill A"ility Adapta"ility 14

Dle5i"ility Tolerance ;etermination .nt#usiasm Trust in superiors 6upport of colleagues Personal sacrifice= etc?

Ou(pu(s (.p#*a++. #$*+u&e"

Dinancial rewards Isalary= "enefits= perks= etc?J <ntangi"les t#at typically include> &ecognition &eputation &esponsi"ility 6ense of Ac#ievement Praise 6timulus 6ense of AdvancementL0rowt# Mo" 6ecurity

15

Doug+as m*gregor 6 (%eor. 0 .

Doug+as M*Gregor5s <Y T%eor.= ma$ag#$g a$ < T%eor. boss= a$& #++#am Ou*%#5s T%eor. >

;ouglas Mc0regor= an American social psyc#ologist= proposed #is famous 1-2 t#eory in #is )' * "ook HT#e +uman 6ide 8f .nterpriseH? T#eory 5 and t#eory y are still referred to commonly in t#e field of management and motivation= and w#ilst more recent studies #ave /uestioned t#e rigidity of t#e model= McgregorHs 1-2 T#eory remains a valid "asic principle from w#ic# to develop positive management style and tec#ni/ues? Mc0regorHs 12 T#eory remains central to organi,ational development= and to improving organi,ational culture? Mc0regorHs 1-2 t#eory is a salutary and simple reminder of t#e natural rules for managing people= w#ic# under t#e pressure of day-to-day "usiness are all too easily forgotten? Mc0regor maintained t#at t#ere are two fundamental approac#es to managing people? Many managers tend towards t#eory 5= and generally get poor results? .nlig#tened managers use t#eory y= w#ic# produces "etter performance and results= and allows people to grow and develop?

(%eor. 0 75au(%or#(ar#a$ ma$ageme$(5 s(.+e9

T#e average person dislikes work and will avoid it #eLs#e can? T#erefore most people must "e forced wit# t#e t#reat of punis#ment to work towards organisational o"Cectives? T#e average person prefers to "e directedB to avoid responsi"ilityB is relatively unam"itious= and wants security a"ove all else? 9ork is in#erently distasteful to most people= and t#ey will attempt to avoid work w#enever possi"le? Most people are not am"itious= #ave little desire for responsi"ility= and prefer to "e directed? Most people #ave little aptitude for creativity in solving organi,ational pro"lems? Motivation occurs only at t#e p#ysiological and security levels of MaslowHs Needs +ierarc#y? Most people are self-centered? As a result= t#ey must "e closely controlled and often coerced to ac#ieve organi,ational o"Cectives Most people resist c#ange? Most people are gulli"le and unintelligent?

.ssentially= t#eory 5 assumes t#at t#e primary source of most employee motivation is monetary= wit# security as a strong second?

16

T%e Har& Approa*% a$& So'( Approa*%

Nnder T#eory 1= management approac#es to motivation range from a hard approach to a soft approach? T#e #ard approac# to motivation relies on coercion= implicit t#reats= micromanagement= and tig#t controls -essentially an environment of command and control? T#e soft approac#= #owever= is to "e permissive and seek #armony in t#e #opes t#at= in return= employees will cooperate w#en asked? +owever= neit#er of t#ese e5tremes is optimal? T#e #ard approac# results in #ostility= purposely low-output= and e5treme union demands? T#e soft approac# results in increasing desire for greater reward in e5c#ange for diminis#ing work output? <t would appear t#at t#e optimal approac# to #uman resource management would "e lie somew#ere "etween t#ese e5tremes? +owever= Mc0regor asserts t#at neit#er approac# is appropriate since t#e foundations of t#eory 5 are incorrect?

C%ara*(er#s(#*s o' (%e < (%eor. ma$ager

Per#aps t#e most noticea"le aspects of Mc0regorHs 12 T#eory - and t#e easiest to illustrate - are found in t#e "e#aviours of autocratic managers and organi,ations w#ic# use autocratic management styles? 9#at are t#e c#aracteristics of a T#eory 1 managerO Typically some= most or all of t#ese>

results-driven and deadline-driven= to t#e e5clusion of everyt#ing else intolerant issues deadlines and ultimatums distant and detac#ed aloof and arrogant elitist s#ort temper s#outs issues instructions= directions= edicts issues t#reats to make people follow instructions demands= never asks does not participate does not team-"uild unconcerned a"out staff welfare= or morale proud= sometimes to t#e point of self-destruction one-way communicator poor listener fundamentally insecure and possi"ly neurotic anti-social vengeful and recriminatory does not t#ank or praise wit##olds rewards= and suppresses pay and remunerations levels scrutinises e5penditure to t#e point of false economy seeks culprits for failures or s#ortfalls 17

seeks to apportion "lame instead of focusing on learning from t#e e5perience and preventing recurrence does not invite or welcome suggestions takes criticism "adly and likely to retaliate if from "elow or peer group poor at proper delegating - "ut "elieves t#ey delegate well t#inks giving orders is delegating #olds on to responsi"ility "ut s#ifts accounta"ility to su"ordinates relatively unconcerned wit# investing in anyt#ing to gain future improvements

Ho8 (o ma$age up8ar&s 6 ma$ag#$g .our < (%eor. boss

9orking for an 1 t#eory "oss isnHt easy - some e5treme 1 t#eory managers make e5tremely unpleasant managers= "ut t#ere are ways of managing t#ese people upwards? Avoiding confrontation Iunless you are genuinely "eing "ullied= w#ic# is a different matterJ and delivering results are t#e key tactics?

T#eory 1 managers Ior indeed t#eory 2 managers displaying t#eory 1 "e#aviourJ are primarily results oriented - so orientate your your own discussions and dealings wit# t#em around results - ie w#at you can deliver and w#en? T#eory 1 managers are facts and figures oriented - so cut out t#e incidentals= "e a"le to measure and su"stantiate anyt#ing you say and do for t#em= especially reporting on results and activities? T#eory 1 managers generally donHt understand or #ave an interest in t#e #uman issues= so donHt try to appeal to t#eir sense of #umanity or morality? 6et your own o"Cectives to meet t#eir organisational aims and agree t#ese wit# t#e managersB "e seen to "e self-starting= self-motivating= self-disciplined and wellorganised - t#e more t#e 1 t#eory manager sees you are managing yourself and producing results= t#e less t#eyHll feel t#e need to do it for you? Always deliver your commitments and promises? <f you are given an unrealistic task andLor deadline state t#e reasons w#y itHs not realistic= "ut "e very sure of your ground= donHt "e negativeB "e constructive as to #ow t#e overall aim can "e ac#ieved in a way t#at you know you can deliver? 6tand up for yourself= "ut constructively - avoid confrontation? Never t#reaten or go over t#eir #eads if you are dissatisfied or youHll "e in "ig trou"le afterwards and life will "e a lot more difficult? <f an 1 t#eory "oss tells you #ow to do t#ings in ways t#at are not comforta"le or rig#t for you= t#en donHt /uestioning t#e process= simply confirm t#e end-result t#at is re/uired= and c#eck t#at itHs okay to Hstreamline t#e processH or Hget t#ings done more efficientlyH if t#e c#ance arises - t#eyHll normally agree to t#is= w#ic# effectively gives you control over t#e H#owH= provided you deliver t#e Hw#atH and Hw#enH?

And t#is is really t#e essence of managing upwards 1 t#eory managers - focus and get agreement on t#e results and deadlines - if you consistently deliver= youHll increasingly "e given more leeway on #ow you go a"out t#e tasks= w#ic# amounts to more freedom? Ee aware also t#at many 1 t#eory managers are forced to "e 1 t#eory "y t#e s#ort-term demands of t#e organisation and t#eir own superiors - an 1 t#eory manager is usually someone wit# t#eir own pro"lems= so try not to give t#em any more?

T%e Prob+em 8#(% < T%eor.

1!

;rawing on MaslowHs +ierarc#y of Needs= Mc0regor argues t#at a need= once satisfied= no longer motivates? T#e company relies on monetary rewards and "enefits to satisfy employeesH lower level needs? 8nce t#ose needs #ave "een satisfied= t#e motivation is gone? T#is management style= in fact= #inders t#e satisfaction of #ig#er-level needs? Conse/uently= t#e only way t#at employees can attempt to satisfy #ig#er level needs at work is to seek more compensation= so it is /uite predicta"le t#at t#ey will focus on monetary rewards? 9#ile money may not "e t#e most effective way to self-fulfilment= it may "e t#e only way availa"le? People will use work to satisfy t#eir lower needs= and seek to satisfy t#eir #ig#er needs during t#eir leisure time? Nnfortunately= employees can "e most productive w#en t#eir work goals align wit# t#eir #ig#er level needs? Mc0regor makes t#e point t#at a command and control environment is not effective "ecause it relies on lower needs for motivation= "ut in modern society t#ose needs are mostly satisfied and t#us no longer motivate? <n t#is situation= one would e5pect employees to dislike t#eir work= avoid responsi"ility= #ave no interest in organi,ational goals= resist c#ange= etc?= t#us creating a self-fulfilling prop#ecy? To Mc0regor= motivation seemed more likely wit# t#e T#eory 2 model?

<Y T%eor. Ma$ageme$( App+#*a(#o$ 6 -us#$ess Imp+#*a(#o$s 'or Mo(#)a(#o$

or?'or*e

<f T#eory 2 #olds true= an organi,ation can apply t#ese principles of scientific management to improve employee motivation>

;ecentrali,ation and ;elegation - <f firms decentrali,e control and reduce t#e num"er of levels of management= managers will #ave more su"ordinates and conse/uently will "e forced to delegate some responsi"ility and decision making to t#em? Mo" .nlargement - Eroadening t#e scope of an employeeHs Co" adds variety and opportunities to satisfy ego needs? Participative Management - Consulting employees in t#e decision making process taps t#eir creative capacity and provides t#em wit# some control over t#eir work environment? Performance Appraisals - +aving t#e employee set o"Cectives and participate in t#e process of evaluating #ow well t#ey were met?

<f properly implemented= suc# an environment would result in a #ig# level of workforce motivation as employees work to satisfy t#eir #ig#er level personal needs t#roug# t#eir Co"s?

T%eor. < 7au(%or#(ar#a$ ma$ageme$( s(.+e9

T#e average person dislikes work and will avoid it #eLs#e can? T#erefore most people must "e forced wit# t#e t#reat of punis#ment to work towards organisational o"Cectives? T#e average person prefers to "e directedB to avoid responsi"ilityB is relatively unam"itious= and wants security a"ove all else? 9ork is in#erently distasteful to most people= and t#ey will attempt to avoid work w#enever possi"le? Most people are not am"itious= #ave little desire for responsi"ility= and prefer to "e directed? Most people #ave little aptitude for creativity in solving organi,ational pro"lems? Motivation occurs only at t#e p#ysiological and security levels of MaslowHs Needs +ierarc#y?

1"

Most people are self-centred? As a result= t#ey must "e closely controlled and often coerced to ac#ieve organi,ational o"Cectives Most people resist c#ange? Most people are gulli"le and unintelligent?

M*Gregor@s T%eor. < a$& T%eor. Y

;ouglas Mc0regor= an American social psyc#ologist= proposed #is famous 1-2 t#eory in #is )' * "ook HT#e +uman 6ide 8f .nterpriseH? T#eory 5 and t#eory y are still referred to commonly in t#e field of management and motivation= and w#ilst more recent studies #ave /uestioned t#e rigidity of t#e model= Mc0regorHs 1-2 T#eory remains a valid "asic principle from w#ic# to develop positive management style and tec#ni/ues? Mc0regorHs 12 T#eory remains central to organi,ational development= and to improving organi,ational culture? Mc0regorHs 1-2 t#eory is a salutary and simple reminder of t#e natural rules for managing people= w#ic# under t#e pressure of day-to-day "usiness are all too easily forgotten? Mc0regor maintained t#at t#ere are two fundamental approac#es to managing people? Many managers tend towards t#eory 5= and generally get poor results? .nlig#tened managers use t#eory y= w#ic# produces "etter performance and results= and allows people to grow and develop?

.ssentially= t#eory 5 assumes t#at t#e primary source of most employee motivation is monetary= wit# security as a strong second?

T%eor. Y 7par(#*#pa(#)e ma$ageme$( s(.+e9

.ffort in work is as natural as work and play? People will apply self-control and self-direction in t#e pursuit of organisational o"Cectives= wit#out e5ternal control or t#e t#reat of punis#ment? Commitment to o"Cectives is a function of rewards associated wit# t#eir ac#ievement? People usually accept and often seek responsi"ility? T#e capacity to use a #ig# degree of imagination= ingenuity and creativity in solving organisational pro"lems is widely= not narrowly= distri"uted in t#e population? <n industry t#e intellectual potential of t#e average person is only partly utilised? 9ork can "e as natural as play if t#e conditions are favoura"le? People will "e self-directed and creative to meet t#eir work and organi,ational o"Cectives if t#ey are committed to t#em?

People will "e committed to t#eir /uality and productivity o"Cectives if rewards are in place t#at address #ig#er needs suc# as self-fulfilment

T#e capacity for creativity spreads t#roug#out organi,ations? Most people can #andle responsi"ility "ecause creativity and ingenuity are common in t#e population?

Nnder t#ese conditions= people will seek responsi"ility?

2#

Too+s 'or (ea*%#$g= u$&ers(a$&#$g a$& e)a+ua(#$g <6Y (%eor. 'a*(ors

Theory X
7)-)4%7%-+

Theory Y
0+)88

T$%&'( - )*+$&',+)',)-. '%/'%00,1% 0+(2%3 T,4$+ 5&-+'&2. -& 6%1%2&/7%-+3 P'&6*5%0 2,7,+%6. 6%/'%00%6 5*2+*'%3

T$%&'( Y - 2,9%')+,-4 )-6 6%1%2&/7%-+)23 C&-+'&2. )5$,%1%7%-+ )-6 5&-+,-*&*0 ,7/'&1%7%-+ )5$,%1%6 9( %-)92,-4.

21

7)-)4%7%-+ 0+)88
Comme$(s o$ T%eor. < a$& T%eor. Y Assump(#o$s

Mc0regor sees t#ese two t#eories as two /uite separate attitudes? T#eory 2 is difficult to put into practice on t#e s#op floor in large mass production operations= "ut it can "e used initially in t#e managing of managers and professionals? <n KT#e +uman 6ide of .nterpriseK Mc0regor s#ows #ow T#eory 2 affects t#e management of promotions and salaries and t#e development of effective managers? Mc0regor also sees T#eory 2 as conducive to participative pro"lem solving? <t is part of t#e managerHs Co" to e5ercise aut#ority= and t#ere are cases in w#ic# t#is is t#e only met#od of ac#ieving t#e desired results "ecause su"ordinates do not agree t#at t#e ends are desira"le? +owever= in situations w#ere it is possi"le to o"tain commitment to o"Cectives= it is "etter to e5plain t#e matter fully so t#at employees grasp t#e purpose of an action? T#ey will t#en e5ert self-direction and control to do "etter work - /uite possi"ly "y "etter met#ods - t#an if t#ey #ad simply "een carrying out an order w#ic# t#e y did not fully understand? T#e situation in w#ic# employees can "e consulted is one w#ere t#e individuals are emotionally mature= and positively motivated towards t#eir workB w#ere t#e work is sufficiently responsi"le to allow for fle5i"ility and w#ere t#e employee can see #er or #is own position in t#e management #ierarc#y? <f t#ese conditions are present= managers will find t#at t#e participative approac# to pro"lem solving leads to muc# improved results compared wit# t#e alternative approac# of #anding out aut#oritarian orders? 8nce management "ecomes persuaded t#at it is under estimating t#e potential of its #uman resources= and accepts t#e knowledge given "y social science researc#ers and displayed in T#eory 2 assumptions= t#en it can invest time= money and effort in developing improved applications of t#e t#eory? Mc0regor reali,es t#at some of t#e t#eories #e #as put forward are unreali,a"le in practice= "ut wants managers to put into operation t#e "asic assumption t#at>

6taff will contri"ute more to t#e organi,ation if t#ey are treated as responsi"le and valued employees?

22

T%eor. > 6

#++#am Ou*%#

Dirst t#ings first - T#eory 3 is not a Mc0regor(s idea and as suc# is not Mc0regorHs e5tension of #is 12 t#eory? T#eory 3 was developed "y not "y Mc0regor= "ut "y 9illiam 8uc#i= in #is "ook )'%) HT#eory 3> +ow American management can Meet t#e Mapanese C#allengeH? 9illiam 8uc#i is professor of management at NC:A= :os Angeles= and a "oard mem"er of several large N6 organisations? T#eory 3 is often referred to as t#e HMapaneseH management style= w#ic# is essentially w#at it is? <tHs interesting t#at 8uc#i c#ose to name #is model HT#eory 3H= w#ic# apart from anyt#ing else tends to give t#e impression t#at itHs a Mc0regor idea? 8ne wonders if t#e idea was not considered strong enoug# to stand alone wit# a completely new name??? Nevert#eless= T#eory 3 essentially advocates a com"ination of all t#atHs "est a"out t#eory 2 and modern Mapanese management= w#ic# places a large amount of freedom and trust wit# workers= and assumes t#at workers #ave a strong loyalty and interest in team-working and t#e organisation? T#eory 3 also places more reliance on t#e attitude and responsi"ilities of t#e workers= w#ereas Mc0regorHs 12 t#eory is mainly focused on management and motivation from t#e managerHs and organisationHs perspective? T#ere is no dou"t t#at 8uc#iHs T#eory 3 model offers e5cellent ideas= al"eit it lacking t#e simple elegance of Mc0regorHs model= w#ic# letHs face it= t#ousands of organisations and managers around t#e world #ave still yet to em"race? Dor t#is reason= T#eory 3 may for some "e like trying to manage t#e kitc#en at t#e &it, "efore mastering t#e a"ility to cook a decent fried "reakfast? To develop your understanding of Mc0regorHs 1-2 T#eory= complete t#e free test w#ic# indicates w#et#er your organisation is more T#eory-1 or T#eory-2= as well as indicating your own Ior t#e particular individualHsJ preference to "e managed "y 1 or 2 style? T#e test is a simple reflective tool= not a scientifically validated instrument= designed to give a "road indication of 12 T#eory tendencies and to aid understanding of t#e model?

23

A+&er'er@s ERG T%eor.

Clayton Alderfer developed anot#er need t#eory t#at streamlines Maslow(s? Alderfer does not disagrees wit# Maslow(s #ierarc#y of needs completely? +e suggests t#at as more concrete needs are satisfied= less concrete needs "ecome more important? <nstead of t#e five needs t#at Maslow "elieves s#ould "e satisfied= Aderfer says t#e t#ere are only t#ree important needs> e5istence relatedness= and growt#

Grow th

Relatedness

Existence

Clayton Alderfer(s .&0 t#eory differs from Maslow(s t#eory in t#ree respects?

24

First, the theory collapses Maslows five need categories into three: )J .5istence needs are desires or p#ysiological and material well "eing? 2J &elatedness needs are desires for satisfying interpersonal relations#ips? 3J 0rowt# needs are desires for continued personal growt# and development? 6econd= w#ereas Maslow(s t#eory argues t#at individuals move up t#e #ierarc#y as a result of t#e satisfaction of lower order needs= .&0 t#eory includes a uni/ue frustration-regression component? T#is suggests t#at an already satisfied need can "ecome activated w#en a #ig#er need cannot "e satisfied ?T#us if a person is continually frustrated in #is or #er attempts to satisfy growt# needs= relatedness needs can again surface as key motivators? .&0 t#eory offers a more fle5i"le approac# to understanding #uman needs t#an does Maslow(s strict #ierarc#y? T#ere are some differences "etween t#e .&0 t#eory and t#e +ierarc#y of Needs t#eory? Dor one= t#e .&0 t#eory does not "elieve in t#e levels of needs? A lower level need does not need to "e gratified? T#is t#eory accounts for a variety of individual differences= w#ic# would cause a worker to satisfy t#e need at #and= w#et#er or not a previous need #as "een satisfied? T#e second difference is t#at if a more important need is not gratified= t#e desire to gratify a lesser need will increase? +owever= t#e frustration of #ig#er-older needs mig#t lead workers to regress to a more concrete need category? T#e two maCor motivational premises t#at t#e .&0 t#eory gives are> t#e more lower-level needs are gratified= t#e more #ig#er-level need satisfaction is desiredB t#e less #ig#er-level needs are gratified= t#e more lower-level satisfaction is desired?

25

M*C+e++a$&5s T%eor. o' Nee&s

<n t#e late )'4*Hs psyc#ologist ;avid McClelland and #is co-workers "egan e5perimenting t#e t#ematic appreciation testITATJas a way of measuring #uman needs? T#e TAT as a way of measuring #uman needs? T#e TAT is a proCective tec#ni/ue t#at ask people to view pictures and write stories a"out w#at t#ey see? McClelland identified t#ree t#emes on suc# TAT stories= wit# eac# corresponding to an underlying need t#at #e "elieves important for understanding individual "e#aviour? t#ese need include*

Nee& 'or a*%#e)eme$(I$A*%J> T#e desire to do somet#ing "etter or more efficiently= to solve pro"lems=
or to master comple5 tasksB

Nee& 'or a''+#a(#o$7$A''9" T#e desire to esta"lis# and maintain friendly and warm relations wit# ot#ersB
and

Nee& 'or po8erI$Po8erJ> T#e desire to control ot#ers= to influence t#eir "e#aviour= or to "e responsi"le for ot#ers? T#e preferences for persons #ig# in needs for ac#ievement= affiliation= and power include * H#g% $ee& a*%#e)eme$( > <ndividual responsi"ility "ut dou"le goalsB feed"ack on performanceIe?g?=
c#allenging /uota and opportunityJ?

H#g% $ee& a''+#a(#o$6 <nterpersonal relations#ips? 8pportunities to communicateIe?g?= customer service=

mem"ers of group unit su"Cect to group "onusJ

H#g% $ee& po8er" <nfluence over ot#er person(s attention B recognitionIe?g? formal position of supervisory
responsi"ilityJ?People #aving t#ese needs #ave certain ways of dealing wit# t#eir Co"s?People w#o are #ig# in t#e need for ac#ievement tend to "e mostly concerned wit# performing "etter t#an ot#er perform? T#ey are usually more innovative and perform long term goal involvement ?people wit# #ig# need for affiliation are more concerned wit# esta"lis#ing interpersonal relations wit# ot#er people? T#ey tend to communicate more fre/uently ?Dinally t#e people wit# #ig# need for power wis# to make an impression or influence ot#ers ?T#ey are very concerned wit# personal prestige ?t#erefore= McClelland "elieves t#at managers can motivate workers "y knowing w#at kinds of need t#ey #ave and provide t#em wit# a Co" t#at matc#es t#at need ? a person "e#aviour is not determine "y needs alone ?a person(s #a"it =skills and environmental opportunities are also factors? McClleland says t#at t#ere is no one-to-one correspondence "etween needs and "e#aviour? McClleland need t#eory #as created many prediction a"out many aspects of #uman motivation ?&ecently= a

26

researc#er found t#at American males wit# #ig# ac#ievement need come more often from t#e middle class t#an from t#e lower or upper class? T#ey #ave "etter memory for incomplete tasks and more apt to volunteer as su"Cects for psyc#ological e5periments ?T#ey are more active in college and community activities=c#oose e5perts over friends as working partners and are more resistant to social pressure ?T#ey also cannot give accurate reports of w#at t#eir @inner concernA wit# ac#ievement is t#erefore=it mig#t "e assumed t#at suc# su"Cects-t#e @#ig#sA-would always do "etter at any kind of task under any circumstances? 8t#er researc# as suggested t#at appealing for cooperation leads t#ose in t#e group w#o #ave strong need for affliation=to work #arder =rat#er t#an t#ose wit# #ig# need in ac#ievement?

27

VROOM@S E<PECTANCY THEORY

T#is t#eory "rings toget#er many of t#e elements of previous t#eories ? <t com"ines t#e perceptual aspects of e/uity t#eories wit# t#e "e#avioral aspects of t#e ot#er t#eories Easically =it comes down to t#is @e/uationA> M F . P < P 4 or Motivation F .5pectancy P <nstrumentality P 4alence M ImotivationJ is t#e amount a person will "e motivated "y t#e situation in w#ic# t#ey find t#emselves? <t is t#e function of t#e following > . Ie5pectancyJ F T#e person(s perception t#at effort will result in performance? <n ot#er words= t#e person(s? < IinstrumentalityJ F t#e person(s perception t#at performance will "e rewardedLpunis#ed= i?e? = t#e person(s assessment of #ow well t#e amount of reward correlates wit# t#e /uality of performance? Inote #ere t#at model is p#rased in terms of e5trinsic motivation= in t#at it asks Qw#at are c#ances < am going to get rewarded if < do a good Co"O(?Eut for intrinsic situations= we can t#ink as asking Q#ow good will < feel if < can pull t#is offO(J? 4IvalenceJ F t#e perceived strengt# of t#e reward or punis#ment t#at will result from t#e performance? 4alence may "e positive I<ndividual prefers attaining ,ero valance= "ut is indifferent towards t#e outcomeJ or negative 4alance Iindividual prefers not to attainJ? <f t#e reward is small = t#e motivation will "e small= even if e5pectancy and instrumentality are "ot# perfect I#ig#J? T#e model of 4room(s t#eory may "e as follows

2!

CASE STUDY Per'orma$*e a$& Mo(#)a(#o$ #$ M*&o$a+&s

People are t#e most important resources of an organisation? T#ey ensure t#e interaction of financial= industrial= and ot#er resources so t#at t#e organisation can function? Nowadays e5perienced managers reali,e t#at #e financial reward cannot stay t#e only kind of an employee encouragement? T#e employeesH needs s#ould "e viewed as an entity t#at leads to t#e searc# of non financial motives? T#ere e5ist many non financial motives t#at are connected wit# t#e employeeHs satisfaction of needs= suc# as #isL#er recognition= participation in t#e decision-making= self-fulfillment= personal growt# and ot#ers? T#e practice s#ows t#at t#e full use of #uman resources of an organisation is one of t#e most significant advantages= w#ic# allow companies to occupy t#e leading positions in t#e world market? T#e HMc;onaldsH company flouris#es owing to t#e logical integration of t#e staff into t#e pro"lem solving? T#e company ad#eres to t#e principle> HT#e result is done "y a manH? HMc;onaldsH e5amines its employees as t#e primary source of progress in t#e field of /uality and productivity? T#is organisation #as "ased its success on t#e motivation t#eories #aving altered only some aspects of t#em? HMc;onaldsH ad#eres to four simple principles= w#ic# give t#e possi"ility to increase t#e performance of its employees> )? T#e company must ela"orate different systems of motivation for every department? 2? T#e personnel must #ave clear and attaina"le aims? <t is "etter to #ave one aim per a person? 3? T#e aims must c#ange> managers s#ould #ave one aim for #alf of a year? Dor e5ample= at first a manager e5amines t#e num"er of clients= t#en #eLs#e e5amines t#e num"er of returning clientsB and t#en #eLs#e s#ould analy,e t#e increase in "usiness sales? T#is met#od gives t#e possi"ility to find new a"ilities of employees and to c#eck new met#ods of work? 4? T#e rise of salary amount must "e sensi"le for an employee? T#e HMc;onaldsH company applies t#ree components of t#e motivation system> financial encouragement= non financial encouragement= and social policy? All t#e t#ree factors are descri"ed in MaslowHs motivation t#eory? +owever= Maslow states t#at all t#e needs must "e fulfilled one after anot#er? T#e researc# of t#e HMc;onaldsH company= its strategy and structure s#ows t#at only a simultaneous fulfilment of employeeHs needs will increase an employeeHs performance? <t is not necessary to fulfil all t#e needs of every level? <n t#e reality an employee #as a set of needs in every concrete moment? 6ummarising= t#e HMc;onaldsH company #as effective motivation system t#at makes it possi"le to increase employeesH performance= and #ence t#e companyHs productivity? T#e situational approac# applied "y HMc;onaldsH administration staff #as turned out to "e t#e most relevant to t#e current situation? T#e administrators #ave used t#e specific tec#ni/ues on t#e "asis of motivation t#eories? +aving applied t#e procedure of assem"ly line in food preparation= HMc;onaldsH #as ensured t#e standard /uality of t#e production and t#e #ig# performance? Eesides= t#e company #as implemented effective motivation strategy t#at is "ased on t#e e5isting motivation t#eories? Conse/uently= on t#e "asis of t#e researc# we can say t#at every company #as its own system of "e#aviour e5planation and every concrete case s#ould "e e5amined as t#e HMc;onaldsH company case? Motivation t#eories= suc# as MaslowHs t#eory and 6elf ;etermination T#eory s#ould serve as t#e "asis for ela"orating a strategy w#ic# will direct managerHs forces towards t#e aim - employee satisfaction via intrinsic motivation and MaslowHs +ierarc#y of Needs model?

2"

RE!ERENCES

Principle ! Practices of management IL M !rashadJ

8rgani,ational Ee#avior I"obbins, #$dge, %anghiJ

8rgani,ational Ee#avior INelson ! RuickJ

E-SITES
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