2.

2 Theories on Motivation:

To understand better about the concept “employee motivation” we need to study different
theories of motivation by different scholars.

2.2.1 Maslow Hierarchy of Human Need Theory:

Maslow theory is based on five different kind of human needs. These needs include safety, self-
esteem, psychological, belonging and self-actualization. Maslow said if one need is fulfilled then
only you are able to move on to the second need and so on. Now a day’s employees have more
concerned about higher needs to be satisfied.

2.2.2 Theory X and Y:

There is theory X and Y which is characterized by McGregor. It is another theory of motivation

in which he categorized individuals into 2 categories. Theory X defines that individuals are more
worried about their compensation and reward on other side theory Y defines that individuals are
more energetic, task oriented and self-motivated

2.2.3 Two Factor Theory:

Two factor theory is defined by Herzberg, individual are categorized into two factors which are
motivators and hygiene. Those who are responsible for their work, task oriented and take
challenges for their work are considered in the group of intrinsic motivation. On other hand those
who are progressively worried about their reward and compensation are count in hygiene factor.

2.2.4 Expectancy Theory:

Theory had been develop by vroom for context. He state that individuals thinks if things are
accurate and if they are producing desired result then they adopt one’s behavior over other by
their own wish.

Croatin Company have investigated on research that what is the impact of leadership style on
employee motivation. Participant leadership is considered more relevant than autocratic style.
To finds out the impact of transformational leadership on morale and motivation of employee,
one more study has been conducted by (D). He find out the relationship of intrinsic and extrinsic,
transactional and transformational style. Going forward he also define that intrinsic motivation is
concerned with transformational leadership and extrinsic is concerned with transactional
leadership.

Motivation and employee motivation is very debating and deep topic for research. Still
researches are conducting to different organizations to understand the employee’s concept
regarding motivation in the banking sector.
2.2.5 Leadership:

The idea of both leadership and leader is very old. Its idea of 6 th century where Asian philosopher
works together for achieving goals [ CITATION JBa14 \l 1033 ]. Philosophers likes Plato and
Aristotle focused on idea of leadership in western society. They mainly highlight the areas of
power and survival[ CITATION Gin14 \l 1033 ]. Social procedure on leadership is define in the
theory of psychology in which leaders motivate and inspire their followers by using interpersonal
skills and to work together to achieve set goals[ CITATION Sel15 \l 1033 ].

Leadership can be define in many ways. Sometimes heroic and visible, at some point
achievement and springing from joy and at other point quiet and unassuming. Leadership effects
in different environment in different ways because if any strategy is going successful in any
work place then it may work in another work place also[ CITATION MAB10 \l 1033 ].

2.3 Leadership Theories:

2.3.1 Trait Theory:

model based on worker’s productivity defines by Taylor in 1920’s. he

[ CITATION XZh16 \l 1033 ]
was the first who defines the difference between workers and managers. He define the roles
which can differentiate workers and manager. Trait theory also emphasize on importance of
leader.

2.3.2 Behavioral Theory:

This theory of leadership defines whether leaders are trained or born [ CITATION Sel15 \l 1033 ] .
this theory defines that leaders can trained in a way that they can adapt different kind of behavior
according to their followers.

2.3.3 Contingency and Participative Theory:

This theory defines that there is no best way which can lead, manage and direct the workers in
different environment of organizations. Contingency theory state that external environment have
great impact on leadership. It explains that which leadership style suit the best in
situation[ CITATION XZh16 \l 1033 ].

2.3.4 Situational Theory:

Situational leadership explain about the leaders. Those who take action according to situation are
considered to be the best leaders. Situation include some factors. They are proper coaching,
guidance, motivation and relationship between follower and leader [ CITATION Sel15 \l 1033 ].

2.4 Transactional and Transformational Leadership Theory:

[ CITATION JMB87 \l 1033 ]Burn’s is expert of leadership. He is the first person who explain the
idea of transformational and transactional leadership. Burn; s defines that transformational
leaders are one who enthusiastic and energetic for changing behavior the act or of their
followers. They are more concerned towards their success and achievement of set goals. This
type of leaders are one who motivate and inspire their followers through their deeds, personality
and visionary attitude whereas transactional leaders are one who motivate their workers through
reward and punishment.