Traditional theories of Motivation

Discipline Courses-I
Semester-I
Paper : Organization Behaviour
Unit-II
Lesson: Traditional theories of Motivation
Lesson Developer: Sonu Mehta
College/Department: Keshav Mahavidyalaya, University of
Delhi
Lesson: Traditional Theories of Motivation
Table of Contents:

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 Traditional Theories of Motivation

1: Learning Outcomes
2: Introduction
3: Concept of Motivation
3.1: Nature of Motivation
3.2: Importance of Motivation
3.3: Types of Motivators
4: Process of Motivation
5: Traditional Theories of Motivation
5.1: Need Based Theories
5.1.1 Abraham Maslow’s Need Hierarchy Theory
5.1.2: Clayton Alderfer’s ERG theory
5.1.3: McClelland’s Theory of Needs
5.2: Factor Based Theory: Frederick Herzberg’s Two Factor Theory
5.3: Personality Based Theory: Douglas McGregor’s Theory X and
Theory Y
5.4: Japanese system of Management: William Ouchi’s Theory Z

Summary
Exercises
Glossary
References

1: Learning Outcomes:
After you have read this lesson, you should be able to:
• describe the concept of motivation,
• appreciate the need and relevance of motivation in organizations,
• explain the process of motivation,
• understand the factors affecting employee productivity,
• comprehend the impact of different motivational methods on employee
productivity based on various theories of motivation,
• differentiate between different traditional theories of motivation,
• apply the knowledge of traditional motivation theories to enhance employee
performance in an organization,
• suggest suitable incentive plans for an organization’s workforce on the basis of
motivation theories.

2: Introduction
The Human Resource Department or managers in organizations are usually found
setting targets and introducing incentives for meeting them. They communicate such
incentives that are linked with achieving targets amongst the employees. By doing so,
they intend to make efforts to inspire employees to achieve the targets laid by them.
In other words, they try to motivate the employees. From times immemorial, the
concept and use of motivation has been universally prevalent. The teachers motivate
their students; the bosses/supervisors motivate their subordinates, the parents
motivate their children to learn and perform.

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 Traditional Theories of Motivation

In the ancient era, in India, motivation came through the sense of duty, which was
described in the religions. Everyone had to learn a particular way of life suiting to
one’s karmas propounded by one’s culture, society or religion, and was supposed to
act and react accordingly. We cannot forget the famous story of Raja Satyavadi
Harish Chandra, who in order to perform his duty, did not allow his wife to bury the
body of their son, for not paying the fee required for the purpose. Lord Ganesha also
did not allow his father to enter the room of his mother, since he was asked not to
allow anyone inside during that period. That has been the commitment towards the
work and the one who assigns the work. Sense of duty, deep commitment and the
dedication to assigned task worked as the motivators and initiated a drive to work.

In organizations, though, the concept of motivation assumes a different significance.

Employees perform their work either considering it to be a discharge of their
responsibility or as organization’s work. The quality of work and quantum of work
differs considerably with the employees’ orientation to work. Earlier, employees were
internally motivated to work for their organizations, stayed long with the same
organization, and viewed their progress in harmony with the organization’s progress.
But with the passage of time, and the shift in the value system, together with the
rising complexities in the environment, the employees now need an outside force for
motivation, rather than having it from within. This has given rise to a number of
theories on the subject. The concept of motivation hence has evolved over time.

There are a large number of theories on motivation that can be classified as

traditional theories and modern theories. The traditional theories are the group of
theories on motivation that were pioneered by eminent researchers in middle of
twentieth century and were applicable in the organizations then. Although, they still
hold true, yet more suitable theories for the contemporary times have evolved that
overcome the limitations or critics of the earlier theories.

In this lesson, you will learn that it is very important for the managers to understand
human behavior. In order to be successful, managers should not only be able to know
the reasons for past behavior of the employees, but should also be able to predict the
future behavior so that they can influence it appropriately. Various theories described
in this lesson will help you gain an insight into the contributions made by the pioneers
in the field of motivation. Their findings still continue to shape our understanding of
human behavior.

3. Concept of Motivation
Motivation can be described as a force to drive a person to action. In business
context, it means inspiring workers to perform tasks willingly towards accomplishment
of organizational goals. The term ‘Motivation’ comes from the Latin word 'movere',
which means ‘to move’.
Let us consider a few definitions of motivation to understand the term better.

“Motivation is the force that energizes behavior, gives direction to behavior and
underlies the tendency to persist.” –Steers and Porter

“Motivation describes how behavior gets started, is energized, is sustained, is

directed, is stopped and what kind of subjective reaction is present in the organisms
while all this is going on.” -Tones

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 Traditional Theories of Motivation

“Motivation is a general term applying to the entire class of drives, desires, needs,
wishes and similar forces. To say that managers motivate their subordinates is to say
that they do those things which they hope will satisfy these drives and desires and
induce the subordinates to act in the desired manner.” -Welhrich and Koontz

The figure below describes the important aspects of motivation that have been
covered in the above definitions.

Figure 1: Key aspects of Motivation

The above definitions clearly state that motivation is the key to success in any
organization, for it is the force that inspires or propels individuals to act in accordance
with some desired behaviour. The most important aspect in it is creation of 'the
willing' response.

Nature of Motivation

Motivation is an internal force or feeling of a person. It cannot be measured in

quantitative terms, but can only be observed in the actions and performance of
employees. Good working conditions and cordial relationships with management
encourage workers to contribute towards organizational goals. Internal organizational
factors participative style of management encourages employees. Motivation is an
ongoing process. As the needs of employees keep changing continuously, managers
keep observing their actions and motivate them suitably. It is a pervasive function
and is required at all levels of management. Motivation is a complicated process as
understanding human mind and human need is a complex task. Employees may be
motivated positively through rewards for example bonus, recognition, praise etc.
Employees are sometimes motivated through fear of punishments or penalties. Such
a negative motivation mechanism is effective in influencing human behavior, though
not often used. Motivating employees is a skill as managers need to understand
human needs, and thereby decide about the right motivators to motivate their
behavior. It may be said that if carried in the right spirit, motivation enhances
employee's participation.

Figure 2: Features of Motivation

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 Traditional Theories of Motivation

Im portance of Motivation

Motivated employees make a great deal of difference for any organization. They are
satisfied and work to satisfy the organizational needs. This increases the efficiency of
the organizational activities. Motivation promotes communication between managers
and workers. As the managers ascertain the prime needs of the employees and try to
fulfill them through motivation, motivation helps in fulfilling the personal needs of the
employees as well. Effective motivation combines ability of the employees with
willingness to work and thereby maximizes their potential to work. It also helps in
reducing the rate of labour absenteeism and turnover as satisfied employees tend to
be committed to the organization. Efficient leaders get developed when managers
motivate, guide and lead the employees.

Value Addition 1: Video

Importance of Leaders Motivating their Teams
Click on the link below to view a short speech being delivered by Dr. Abdul Kalam on
Leadership and Motivation that inspires the leaders by highlighting the importance of
taking charge and motivating their teams.
Source: https://www.youtube.com/watch?v=C0gOWbDBMF4

Figure 3: Success of an Organization depends on Employees’ Motivation

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 Traditional Theories of Motivation

Financial and Non-Financial m otivators

What do you think motivates the employees in the organizations to perform to their
best of the abilities? It may be salary, sense of achievement, the work itself, handling
a task of responsibility, scope of advancement, friendly supervision, good
interpersonal relations with co-workers, pleasant working conditions, etc. It may be
either one of such factors or a combination of these. Some of them are financial in
nature, while others are non-financial. The factors or things that motivate employees
towards better performance or desirable behaviour can therefore be called as
motivators. Such motivators can be classified into financial motivators and non-
financial motivators.

Financial motivators are normally used to satisfy employee’s lower-order needs. They
are tangible and directly influence individual and organizational performance.
However non-financial motivators are meant to satisfy higher-order needs. They are
intangible benefits that indirectly influence individual and organizational performance.

Value Addition 2: Video

Non-Financial Motivators
Click on the link below to view a snippet that describes how and in what ways staff
may be motivated through non-financial motivators.
Source: https://www.youtube.com/watch?v=XtIpqZcKU3I

4. Process of Motivation
From the above discussion, it is clear that motivation is a force to drive a person to
action. It is an attempt to energize, channelize and sustain people’s behavior. Such an
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attempt can be viewed as a process of the needs and wants of the employees and the
overall objectives of the organization and then trying to integrate the two in such a
way that attainment of individual goals leads to attainment of organizational goals. So
the process of motivation begins with identifying the needs and expectations of the
employees, assessing their current level of behaviour or action, laying down the
target level of behaviour or actions required on their part to help the organization
achieve its goals, and then identifying what will drive the employees to bridge the gap
from their current level of performance to the desired level. It is important for the
manager to know what will induce the employees. This depends on their individual
needs and aspirations. Not all employees can be motivated by a single mechanism.

Figure 4: Process of Motivation

Need, Desire, Be havior, Goal,

Expectancy,
Anticipation Actions Incentive

Be havior

Modification

The above figure clearly describes the process of motivation as the determination of
employee needs, desires, expectancy, and or anticipation; considering their current
behaviour or actions; offering them suitable goals or incentives that lead to behaviour
modification, which further gives rise to a new set of needs or expectations. Thus the
process goes on, and this explains that we need to be constantly motivated to achieve
our goals.

5. Traditional Theories of Motivation

The lesson describes few traditional theories of motivation that are relevant even now
to some extent. These theories lacked much empirical evidence, but certainly paved
the way for the contemporary theories of motivation. They had different orientations
too. Some theorists emphasized that the need satisfaction is the greatest motivator;
some believed that personality traits are important, while others believed that
working conditions are the most impactful motivators such that their absence can
cause demotivation. The figure below depicts classification of different theories of
motivation.

Figure 5: Traditional Motivation Theories

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 Traditional Theories of Motivation

5.1 Need-Based Theories

The actions of human beings are indeed need oriented. They tend to work for
satisfying the needs. Consequently, the natural motivator is need-satisfier. The
different behavioural theorists and psychologists have propounded the need based
theories to guide the managers for understanding the need pattern of employees and
using these for motivating them. The first theory that evolved was Maslow’s Need
Hierarchy theory. It gave an impetus to understand the different needs of the people
that keep on changing one after the other. The other theories that was developed
later were Alderfer’s ERG theory and McClelland’ Theory of Needs.

Maslow’s Need Hierarchy Theory

This section will make you aware of the motivation theory by Abraham Maslow. He
identified different sets of needs in a hierarchical order. He believed that a need at a
particular level motivates an individual. Then the individual performs an action to
satisfy it. Once it is satisfied a new higher level need emerges.

Have you ever experienced a set of needs driving you in a hierarchical form? For
example, in class XII, you may have aspired for proper food, rest and a study
schedule, a secure health and security of getting continued assistance in studies, need
to discuss topics with peer, recognition for achieving good marks and probably
admission in your dream college and opportunity for pursuing your aspired course.
Such a need hierarchy was propounded by Abraham Maslow.

The purpose is to make you understand that an individual is motivated by a particular

set of needs from a given hierarchy of needs.
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While working with moneys, Abraham Harold Maslow noticed some interesting
phenomenon. He noticed that needs follow a sequence. A hungry and thirsty person
will put the need to quench his hunger or thirst over any other need. His observation
of the precedence of some needs over the other needs made him develop the theory
of hierarchy of needs. His theory is popularly known as ‘Maslow’s Need Hierarchy
Theory’. He postulated the hierarchy of physiological needs, need for safety and
security, need for love, need for esteem, and the need to actualize the self, in that
specific order.

Maslow's theory is often depicted as a pyramid with five levels, among which there is
a broad categorization for lower level needs and higher level needs. The first four are
described as lower level needs and are grouped together as deficiency needs, while
the top level is termed as a higher level need as is grouped as a growth need.

Figure 6: Abraham Maslow and Maslow's Need Hierarchy

According to Maslow, once the deficiency needs are met, an individual tries to satisfy
growth needs. Individuals move up the pyramid and needs at any particular level
become relevant only when the lower needs in the pyramid are satisfied. It is
important for the managers to understand that as individuals move up the hierarchy,
the lower level needs cease to influence their behavior.

Deficiency needs–The deficiency needs or D-needs include the first four layers. Not
meeting such needs creates anxiety whereas meeting such needs may not make a
person feel any different.
The deficiency needs are:
1. Physiological needs - The physiological needs of any individual shall take
first precedence. Such needs include need for food, warmth, shelter, sex,
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water, and other physical needs. Other needs remain inactive until such needs
are satisfied. For example, if a person feels hunger or thirst, he works to
satisfy them; if a person is ill, all his energies work to restore the balance of
his body.

Value Addition 3: Video

Biological Needs
Click on the link below to view a video that describes fulfillment of biological needs
for efficient working in an organization.
Source: http://www.youtube.com/watch?v=gRiCH8CXHvw

2. Safety needs–These needs begin to dominate the individual’s behavior only

when his physical needs relatively satisfied. Such needs are related to man’s
desire for a certain amount of safety and security in his life, his aspiring for a
predictable and consistent environment where there is no injustice or bias.
Safety needs include need for job security, and security of having some bank
balance, insurance coverage, etc.

Value Addition 4: Video

Security Needs
Click on the link below to view a video that describes fulfillment of security needs for
efficient working in an organization.
Source: http://www.youtube.com/watch?v=FxlGpOUVBhM

3. Love/Belonging/Social needs–The third layer of human needs relates to the

psychological aspect of humans. The need for friendship, intimacy, family
support, sense of belonging and acceptance are social needs. It also includes
need to love and be loved by others. In the absence of these factors people tend
to feel loneliness, social anxiety, and depression.
4. Esteem/Ego needs–Just as every individual needs to love and be loved by
others, all humans have a need to respect and to be respected by others. They
have a need for self-esteem and self-respect. In order to gain such self-respect,
people engage themselves in activities that provide a sense of contribution and
bring forth recognition. Imbalance at this level results in low self-esteem and
inferiority complexes or depression.

Growth needs–The growth needs or ‘Being needs’ or ‘B-needs’ are higher level
needs that relates to one achieving the highest for oneself. Self-actualization need
of Maslow’s hierarchy is a growth need.

5. Self-actualization - Self-actualization is the instinctual need of humans to make

the most of their abilities and to strive to be the best that they can. It is the final
stage of psychological development in Maslow’s motivation theory. Once all the
lower level needs are satisfied, an individual desires to realize all of his potential
for being an effective, creative, mature human being.

Value Addition 5: Video

Self Actualization Needs
Click on the link below to view a video that describes how self-actualization needs
motivates people.
Source: http://www.youtube.com/watch?v=v7641dW3mmk

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Maslow's need hierarchy is a general proposition and does not imply that
everyone's needs shall follow the same rigid pattern. For example, some people
may attach a high value to their self-esteem need such that it seems to be a
stronger motivation for these people than love. While, in case of some other
people, the need to create may be a stronger motivation as compared to the need
for food and safety. A classic example for this could be an artist living in poverty,
where reversing of the standard hierarchy of needs is apparent. Similarly, freedom
fighters and social reformers may have a strong desire to satisfy their self-
actualization needs even when their lower-order needs may not have been fully
satisfied. In some special cases, persons who have suffered hunger or some other
deprivation over extended periods in time may live happily for the rest of their
lives only when they can get enough of what they lacked. In such cases, the level
of aspiration may have become permanently lowered and the higher-order, less
prepotent needs may never become active.

Value Addition 6: Image

Detailed Diagram on Needs as categorized by Maslow
Click on the link below to see an image that list various needs under each of the
five categories described by Maslow in the Need Hierarchy Theory.
Source: http://en.wikipedia.org/wiki/Image:Maslow%27s_hierarchy_of_needs.svg

Critical analysis of Maslow’s Theory

Maslow's need hierarchy theory has been criticized on the following grounds:

• Managers cannot easily ascertain the needs that influence individual behavior
since needs keep changing from one to the other.
• The hierarchy always does not hold good in practice.
• Only one need does not influence the human behavior at a given point of time. A
person wants to satisfy a combination of needs at the same time.
• Need, once satisfied does not cease to be a motivational factor.

ERG Theory

The Hierarchy of Needs theory was revoked by another motivation theorist, Clayton
Alderfer. Maslow’s theory was strongly criticized on the ground that it categorized
human needs into distinct hierarchies. It was also critiqued on the premise that
people mostly follow the need hierarchy. In other words, Clayton disagreed with the
fact that different needs become action-directing factor on the satisfaction of lower
order needs.

Alderfer proposed his theory as an improvement over Maslow’s in which needs did not
exist in a strict hierarchy. The theory was called the ERG theory, where ‘E’ denotes
Existence, ‘R’ denotes Relatedness and ‘G’ denotes Growth. A person may sequentially
move or progress from one need to the other on the satisfaction of the former need,
or may regress back to a former need on being frustrated with the dissatisfaction of a
particular need. The figure below depicts that people generally satisfy one need and
move to the other, the order may keep reversing back and forth from time to time,
and also at a given point of time more than one need may motivate a person.

Figure 7: Clayton Alderfer’s ERG Theory

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Alderfer categorized human needs into three broad groups as opposed to Maslow’s
tight and narrow need classification. The ERG Theory is similar to Maslow’s need
hierarchy except that needs defined here are more bready, and that multiple needs
can direct individual behavior at the same time. The three groups of needs proposed
by Alderfer were similar to Maslow’s. The ‘E’xistence’ need is similar to Maslow’s
physiological and safety needs. ‘R’elatedness is similar to Maslow’s social needs and
esteem needs. The need for ‘G’rowth is similar to Maslow’s need for self –
actualization.

The OB implication of the ERG theory is that needs do not exist in an unbending
hierarchy. Also, the theory implies that an individual may focus on all three needs at
the same time. Like Maslow’s theory, Alderfer’s theory has the advantage of being
simple to understand, logical and intuitive. Although a modification of the Hierarchy of
Needs theory, the ERG theory is not more validated by empirical research than the
former.

Value Addition 7: Video

ERG Theory
Click on the link below to view a video that describes ERG theory and makes a
comparison between ERG and Maslow’s theory of motivation.
Source: http://www.youtube.com/watch?v=kvhr2H5rAgY

5.1.3 McClelland’s Theory of Needs

David McClelland and his associates developed the theory of needs called McClelland’s
Theory of Needs. According to McClelland’s Theory of Needs, motivation can be
explained with the help of the three needs – achievement, power and affiliation.

These needs are defined as follows:

● Need for achievement (nAch) – it is the drive to excel, to achieve with regard
to a set of standards, to strive to succeed.
● Need for power (nPow) – it is the need to make others behave in a manner in
which they otherwise wouldn’t have.
● Need for affiliation (nAff) – it is the desire for friendly and close interpersonal
relationships.

Figure 10: Features of Theory of Needs

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Of the three needs, McClelland and his associates focused most on nAch. They found
that high achievers perform best when they estimate they have a 50-50 chance of
success, i.e. they perceive their probability of success as 0.5. This is because they
dislike gambling with high odds (low probability of success) because then, there is not
satisfaction of achievement if it comes by pure chance. Likewise, they dislike low odds
(high probability of success) because then, there is no challenge involved in the goal.
This is to say that high achievers like to set goals that require reasonable stretching
on their part.

Extensive research has been done on the relationship between nAch and job
performance. Although less research has been done on power and affiliation needs,
yet there are consistent findings here, too. Firstly, high achievers are strongly
motivated when a job has a high degree of personal responsibility and feedback and
an intermediate degree of risk. This means that there is a direct relationship between
nPow and performance. For example, in entrepreneurial activities such as running
own businesses and managing self-contained units in large organizations, high
achievers are successful. Secondly, a high need to achieve does not necessarily make
someone a good manager, people with high nAch are more keen on how well they do
personally rather than on influencing others at work to do well. Thirdly, nAff and nPow
are closely related to managerial success. Successful managers are high in their need
for power an low in their need for affiliation.

The theory has many advantages. It is simple to understand and intuitive. This theory
has better empirical support than the other traditional theories of motivation. Despite
its advantages, the theory has limitations. This theory has less practical effect. The
three needs operate at a subconscious level and many a times, an individual might
not even be aware of their existence. So, to know about these needs in the people
working in the organization and measuring them, to cater to them, is not easy.

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Value Addition 7: Image

Comparison of McClelland Theory with Maslow’s
Click on the link below to view an image that compares Maslow’s need hierarchy with
Alderfer’s needs.
Source: http://people.dsv.su.se/~hk/z/raja/7groupMovement/Bild1.JPG

5.2 Factor Theory: Fredrick Herzberg’s Two-Factor Theory

This section apprises you with Herzberg’s theory. Consider this example, if you are
expected to study and secure good marks, you may assume some facilities as given
or provided, the presence of which shall not although inspire you but whose absence
will make achieving the result impossible/difficult. Such factors have been described
as hygiene factors by Herzberg. In your case they may be: an undisturbed study
environment, books to study from, inputs like registers, pens etc., sufficient light and
good ventilation. Herzberg also described certain other higher order factors as
motivators absence of which may not be dissatisfying but their presence act as
motivators. In your case they may be achieving consistently good results in class
tests/cycle tests/unit tests, recognition for securing a high rank in class or high
interest in studies.

Frederick Herzberg - Herzberg developed this motivation theory during his

investigation of 200 accountants and engineers in the USA. According to the Two
Factor Theory of Frederick Herzberg, people are influenced by two factors - Hygiene
factors and Motivation factors.

Hygiene factors (based on Job Context)-These factors are needed to ensure

that an employee does not become dissatisfied. Although these factors do not lead to
higher levels of motivation, but in the absence of them there is dissatisfaction.
Motivation factors (based on Job Content)-These factors are needed in order to
motivate an employee into higher performance. Such factors result from internal
generators in employees.

While satisfaction and psychological growth are results presence of motivation factors,
dissatisfaction is a result of absence of hygiene factors.

Difference between Hygiene Factors and Motivation Factors

Hygiene Factors Motivation Factors

1. They are called maintenance 1. They are called motivational factors.
factors. 2. Their presence acts as satisfiers and,
2. Their presence does not therefore motivates the workers to
motivate the workers. perform better.
3. Their absence acts as 3. Their absence does not demotivate the
dissatisfiers. workers.
4. They have extrinsic value-they 4. They have intrinsic value-they lie on the
lie outside the job. job.
5. Some of the examples are 5. Examples are achievement, recognition,
salary, bonus, working personal growth etc.
conditions etc.

Figure 8: Herzberg’s Hygiene and Motivation Factors

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Value Addition 8: Video

Herzberg’s Theory of Motivation
Click on the link below to view a video that describes Herzber’s theory of motivation,
and the top job satisfiers.
Source: http://www.youtube.com/watch?v=3Ub8R5c6tkE

Critical analysis

• Herzberg’s findings are based on a small sample of 200 engineers and

accountants and are not representative of general work force.
• His theory cannot be generalized as it failed to produce similar results later.
• Though the theory holds good for people working at higher levels, it may not
apply to workers at the operative levels.
• It is difficult to categorize the factors as satisfiers or dissatisfiers. Also factors
that are dissatisfiers for some may be motivators for others.
• Many researchers have found results opposite to Herzberg’s findings. They
have shown that absence of motivators can be dissatisfying and presence of
hygiene factors can motivate the employees to work harder.

Com parison of M aslow ’s and Herzberg’s

In Maslow's Hierarchy the needs at lower level relate to the Extrinsic / Hygiene factors
of Herzberg's Two Factor Theory. This may be understood as absence of
'dissatisfaction' on the satisfaction of lower level needs in relation to Herzberg theory.

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It is the higher level needs basically the ego and self-actualization needs that relate to
Intrinsic / Motivators of the Herzberg’s theory.

Value Addition 9: Image

Intrinsic and Extrinsic Needs
Click on the link below to view an image that shows different intrinsic and extrinsic
needs for an individual. Remember intrinsic needs are innate, inherent, inseparable
from the person himself, while, extrinsic needs pertain to an outside or external
origin. The figure shows the relationship of Maslow’s needs hierarchy model and
Herzberg’s hygiene and motivating factors.
Source: http://www.thomsettinternational.com/main/images/turn2.gif

Value Addition 10: Image

Relative Needs in Maslow’s Theory and Herzberg’s Model
Click on the links below to view an image that compares the need hierarchy of
Maslow’s theory of motivation with Herzberg’s model.
Source:http://www.lifehack.org/wp-content/files/2007/09/20070903-maslow-
hertzberg.jpg
http://www.1000ventures.com/design_elements/selfmade/motivation_maslow.gif

It is clear that both the theories emphasize on the needs of the individuals. Maslow
has given a hierarchical order, whereas Herzberg has formulated two sets of factors.
These theories help the managers, as they know that if physiological and safety needs
are stronger than other needs, presence of hygiene factors is to be ensured. Whereas
if self-actualization needs or needs for achievement and growth are stronger,
managers must provide motivators on the job.

It is clear that the higher order needs in Maslow’s theory corresponds to motivators of
Herzberg’s theory, whereas, lower order needs corresponds to hygiene factors. It is
however difficult to draw a clear cut demarcating line from where motivators begin
and hygiene factors end. Therefore in some diagrams you will find half of belonging or
social need related to hygiene and the other top half related to motivating factors.
Whereas in others, as in this one, the belonging need is related to both.

5.3 Personality Traits Based: Douglas McGregor’s Theory X

and Theory Y

Have you ever noticed that some students have to be constantly told by their parents
and/or teachers to study for their exams or to finish off their home assignments and
submit them, whereas there are others who do so on their own without being told?
This section describes the theory of motivation by McGregor, who made similar
assumptions about people. He recognized that some people dislike and despise work,
while others like work and do it with zeal. Unlike Herzberg giving two set of factors
that cause satisfaction and motivation, Douglas McGregor gave two theories based on
traits of managers. Douglas McGregor proposed Theory X and Theory Y to view
employee motivation.

Theory X –Based on the premise that people work only for money and security, this
theory postulates that an average person:

• Dislikes work and attempts to avoid it.

• Has no ambition, wants no responsibility, and would rather follow than lead.
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• Is self-centered and therefore does not care about organizational goals.

• Resists change.
• Is gullible and not particularly intelligent.

Such people are only interested in fulfilling their primary needs of food, clothing,
shelter and security. Money and fringe benefits like insurance and provident fund are
the motivators that make them contribute to organizational goals. This is a
pessimistic approach to human behavior. It provides rigid control, close supervision,
one-way communication and autocratic style of leadership. It defines management as
the art of getting thing done by following the carrot and stick approach.

Theory Y - Theory Y makes the following general assumptions:

• Work can be as natural as play and rest.

• When people are committed to work, they are self-directed.
• Commitment to work comes when rewards are in place.
• Under such circumstances, people seek responsibility.
• They can handle responsibility well.

Figure 9: Click on the link below to view an image that describes assumptions
under Theory X and Y

Source: http://nitieim19pomb126.blogspot.in/2012/08/theory-x-theory-y-and-
theory-z.html

The individual needs can be harmonized with the organizational needs if such
assumptions hold true. If people have not reached such a level of maturity, they
need tighter controls initially that can be gradually relaxed as the employee
develops. Theory Y, thus, holds an optimistic view about human nature that are
motivated by recognition, praise, admiration, participative styles of leadership, two
way communication and challenging job opportunities.

Implications of the Theory

People possessing characteristics given by Theory X will need tight control, whereas
the ones who possess characteristics given by Theory Y shall assume responsibility
and improve continuously. If the managers in the organizations feel that the
assumptions made under Theory Y hold true, they can harness the employees’ energy
for creating a decentralized set up, encourage delegation of work to subordinates, go
for job enlargement thereby broadening the scope of an employee's job and adding
variety to his tasks, bring in participative style of management and thus make overall
functioning of the enterprise more efficient.

5.4 William Ouchi’s Theory Z

This section apprises you with the participative management style. Let us consider a
hypothetical situation. Your parents want you to attend a special course, which they
feel shall work wonders for you. They contact the agency providing it and make all
necessary arrangements for you to attend it. Will you accept their intentions readily or
will you resist? In case you resist, do you think it would have been different if you
were consulted prior to making such a decision and your consent was taken? If you

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say yes, then such was the recommendation of Ouchi. He emphasized participative
decision making for better and effective implementation of decisions.

Theory Z (Participative Managem ent style)

William Ouchi, took the concept of Theory X and Theory Y a step further to Theory Z.
Theory Z represents participative style of management of Japanese. Ouchi's made
certain assumptions about workers under theory Z. The assumptions were that
workers in general are cooperative and tend to create intimate relationships at work
with their colleagues, with their superiors, they maintain a work-life balance and
value a work culture that supports a balance between family and work life of
employees. It assumed that workers are cohesive while working in groups, and are
disciplined and hard working. If such people are provided with management support
they will surely perform their jobs to their utmost ability, will manage their well-being
and can be depended upon.

The basic premise of this theory is that workers have integrity and are reliable. This
makes participative management work. To facilitate participative management, theory
Z postulates workers to become generalists rather than specialists. To make them
generalists, it proposes job rotations and continuous training for enhancing their
knowledge base about the company and its processes. Due to more emphasis on
training and job rotations, promotions are slower and are emphasized less by this
theory. This theory proposes to create a committed workforce that stays longer with
the company and find their entire career with the same enterprise. The features of
Theory Z are depicted in the diagram below.

Figure 10: Features of Theory Z

Features of Theory Z - It focuses on the Japanese style of long-term employment.

Therefore various financial and non-financial incentives should be promoted to retain
employees in the organization. It recommends informal control processes based on
mutual confidence and cooperation rather than following a strict procedure for control.
It emphasizes participative decision making for better and effective implementation of
decisions. Theory Z focuses on individual responsibility for one’s acts and collective
responsibility for the acts of a group. It recommends a slow skill and performance
based promotion rather than one based on time. Thus it focuses on a holistic
approach where superiors and subordinates develop mutual trust and work as a team
towards the attainment of organizational goals.

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Benefits of Theory Z
Theory Z is often called a comprehensive philosophy of management. It aims at the
best style of management by combining the Japanese and the American styles of
management. It offers the many benefits, for example it aims at promoting inter-
personal skills required for group interaction which promotes worker’s contribution to
the maximum of their potential; it develops trust, confidence, cooperation and a
strong bond amongst managers and employees; it provides job security and broader
career paths to workers and the informal control processes increases the quality of
work. It also helps the workers to self-direct and self-control their activities.

Lim itations of Theory Z

Theory Z is not the last word on management as it suffers from a few limitations. It is
difficult for organizations and employees to make life-time employment commitments.
Participative style of decision-making may not always work well. While managers
invite workers to participate in the decision-making processes, workers may not
always be willing to do so. Also, features like slow promotions, group decision-making
and lifetime employment may not fit well into companies operating in different
cultural, social and economic backgrounds.

Value Addition 11: Comparison

Theory Z w ith Theory X & Y
Click on the link below to read a comparative description of Theory X and Y with
Theory Z.
Source:http://petervenn.tripod.com/xyz.htm

Summary:
• Motivation is a force to drive a person into action. In business context, it
means inspiring workers to perform tasks willingly towards accomplishment of
organizational goals.
• The concept of motivation has evolved over time and has given rise to a
number of theories on the subject. The large number of theories on motivation
can be classified as traditional theories and modern theories.
• The factors that motivate employees towards better performance or desirable
behaviour are called as motivators, which may be classified into financial and
non-financial motivators.
• The process of motivation begins with identification of employee needs,
desires, expectancy, and or anticipation; assessment of their current behaviour
or actions; indicating suitable goals or incentives that lead to behaviour
modification.
• The traditional theories of motivation are: Abraham Maslow’s Need Hierarchy
Theory, Clayton Alderfer’s ERG theory, Frederick Herzberg’s Two Factor
Theory, Douglas McGregor’s Theory X and Theory Y, William Ouchi’s Theory Z,
and McClelland’s Theory of Needs
• Maslow believed that a need at a particular level motivates an individual. His
theory gives five levels of needs: physiological needs, safety and security
needs, social needs, esteem needs, and self-actualization needs.
• Alderfer proposed a theory as an improvement over Maslow’s, in which needs
did not exist in a strict hierarchy. His theory was called the ERG theory, where
‘E’ denotes for existence, ‘R’ denotes relatedness and ‘G’ denotes growth.
• Herzberg categorized two sets of factors that provided satisfaction or
dissatisfaction to employees. These are hygiene factors and motivation factors.
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The presence of hygiene factors provides no motivation but their absence

becomes a source of dissatisfaction. Whereas, the absence of motivators
provides no dissatisfaction, but their presence results in high degree of
motivation.
• McGregor developed two sets of assumptions about human behavior which
help managers in adopting motivators for them. Theory X assumes that people
are lazy, they dislike work and do not want to assume responsibility. Money
and fringe benefits act as motivators for such people. Theory Y assumes that
people are ambitious, they accept challenging jobs and are self-directed to
contribute towards organizational goals. Recognition, praise and participative
styles of leadership act as motivators for them.
• William Ouchi’s Theory Z is a hybrid theory of management which incorporates
the features of both Japanese and American management styles. It is called a
comprehensive philosophy of management as it combines the benefits of both
the Japanese and American styles. However, it is not free from limitations and
is therefore, not the last word on management.
• McClelland’s Theory of Needs describe motivation with the help of the three
needs – need for achievement, power and affiliation.

Exercise:
A. Objective Type Questions:

1. Classify the words given below according to Maslow’s Need Hierarchy Model of
Motivation into Physiological, Safety, Social, Ego, and Self-actualization:
Breathing, security of property, spontaneity, self esteem, sleep, security of
body, sex, family, water, confidence, sexual intimacy, achievement, respect by
others, creativity, friendship, problem solving, security of employment, and
food.

2. Which of the following shall act as motivators for

a. for people described by Theory X
b. for people described by Theory Y
Admiration, Money, Recognition, insurance, praise, challenging job
opportunities, provident fund, fringe benefits, two-way communication,
and participative styles of leadership.

3. Fill in the blanks:

a. If an average person dislikes work according to theory X, according to theory
Y he_______ .
b. If an average person is not ambitious and likes to follow according to theory
X, according to theory Y he__________ .
c. If an average person avoids responsibility according to theory X, according
to theory Y he_________ .
d. If an average person does not care about organizational goals according to
theory X, according to theory Y he________ .
e. If an average person is not intelligent according to theory X, according to
theory Y he___________ .
f. Hygiene factors are needed to ensure an employee does not become
__________, whereas motivation factors are needed in order to
___________ an employee into higher performance.

4. Pick out the keyword that does not describe people according to Theory Z from the
following words or phrases:

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Disciplined, hard working, trustworthy, specialist, confident, competent to

participate in decision making.

B. Short Answer Questions:

1. Define motivation.
2. What are the different types of motivators used by managers in an
organization?
3. Describe the process of motivating an employee to work overtime during
peak demand.
4. Differentiate between Hygiene and Motivation Factors.
5. Enumerate any four features of Theory Z.
6. Describe any two benefits of Theory Z to an organization.
C. Long Answer Questions:
1. Describe the nature of motivation and explain its importance for the success of
an enterprise.
2. Explain Maslow’s theory of motivation with the help of labeled diagram.
3. Do the needs always follow the sequence as described by Maslow? If not, on
what other grounds has his theory been criticized?
4. Critically examine Herzberg’s Motivation Hygiene Theory and compare it with
Maslow’s Need Hierarchy Theory.
5. Enumerate the assumptions of McGregor’s Theory X and Theory Y. Which of
these theories has wider applicability in our country?
6. Critically examine Herzberg’s Motivation Hygiene Theory and compare it with
Maslow’s Need Hierarchy Theory.
7. “Theory z is a comprehensive philosophy of management”. Comment.

(Answers to Objective Type Questions:

1. Physiological: Breathing, sleep, sex, water, food.
Safety: Security of property, security of body, security of employment.
Love/Social: Family, sexual intimacy, friendship.
Ego: Self esteem, confidence, respect by others.
Self-actualization: Spontaneity, achievement, creativity, problem solving.

2. a. The following shall act as motivators for people described by Theory X - Money,
insurance, provident fund, fringe benefits.
b. The following shall act as motivators for people described by Theory Y- Recognition,
praise, admiration, challenging job opportunities, two-way communication,
admiration, participative styles of leadership.

3. a- enjoys and likes his work.

b- is ambitious and is self directed.
c- assumes or seeks responsibility willingly.
d- is committed to organizational goals.
e- he is intelligent and creative.
f- dissatisfied, motivate

4. Specialist.)

Glossary:
• Am erican Style of m anagem ent: It focuses on short-term employment
where workers move to other organizations as and when they seek better
career options. It follows explicit, formal control processes where techniques of

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control are enforced on employees by managers. There is individual decision-

making and individual responsibility for managers’ actions. Managers’ concern
is only task-oriented relationships. Promotions are linked with good
performance and are therefore quick. Employees prefer specialized career
options under such a management.
• Autocratic style of leadership: It represents a leadership style that gives
absolute power to the leader over employees, leaving employees with little
opportunity for participating in decision making processes.
• Carrot and stick approach: It means use of rewards and penalties or
incentives and disincentives to promote desired behavior.
• Japanese style of long-term employment: It means workers join the
organizations for their lifetime and organizations are also committed to them
throughout their working careers.
• Japanese Style of Management: It focuses on lifetime employment with
implicit and informal control process where employees judge their performance
through self-control. It emphasizes on collective decision-making and collective
responsibility. It is people oriented and follows a holistic concern for
employees. Promotions under Japanese style of management are linked with
time and are therefore slow and gradual. Employees do not specialize in career
options. They possess general careers and can be placed at different jobs by
providing induction and training programmes.
• Job enlargem ent: It refers to enlarging the scope of job by adding a variety
of tasks that require more or less same level of ability in order to remove
dullness and monotony arising out of handling a same task repeatedly
• Job Enrichm ent: It refers to upgrading the responsibility, scope and
challenge in job profile. It gives an opportunity of personal growth.
• Job rotation: It refers to the movement between different jobs of varied
nature to avoid boredom and facilitating acquisition of new skills.
• Levels of Managem ent: It refers to three main levels of managers in an
organization in order of importance, first-level managers, middle managers,
and the top level managers who are entrusted with a specific roles and
responsibilities, and enjoy a different degree of formal authority for using
resources and making decisions.
• Participative Management: It is a form of management that gives
employees an opportunity in decision-making. It leads to increased
productivity, improved quality, and reduced costs.
• Participative style of leadership: It is a leadership style where the
democratic leader makes decisions by consulting his team. It leads to
improved motivation, sense of responsibility among employees and reduction
in employee's turnover and absenteeism.

References:

1. W ork Cited
• Business Organization And Management – Neeru Vasishth, Namita Rajput-
Publisher Kitab Mahal
• Gupta, C.B-Management Concepts and Practice- Sultan Chand and Sons.
• Singh, B.P. and T.N. Chhabra, Business Organisation and Management
Dhanpat Rai & Co.
• Google.Com
• http://www.siu.edu/~sah/MSFS/Chapter%2018.htm
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• http://www.management-hub.com/hr-enrichment.html
• http://en.wikipedia.org/wiki/Maslow's_hierarchy_of_needs
• http://en.wikipedia.org/wiki/Image:Maslow%27s_hierarchy_of_needs.svg
• http://imagecache2.allposters.com/images/pic/PYR/PP30580~Motivation-
Posters.jpg

2. Suggested Readings
th
• Newstrom John W. : Organizational Behaviour, Tata Mc Graw Hill, 12 Edition
• 2.Luthans Fred : Organizational Behaviour, Tata Mc Graw Hill
• Mc Shane L. Steven, Glinow Mary Ann Von & Sharma Radha R. -
Organisational Behaviour Tata Mc Graw Hill, 3rd Edition
• Robbins Stephen P. : Organizational Behaviour, Pearson Education, 12th
Edition
• Hersey Paul, Blanchard, Kenneth H and Johnson Dewey E. : Management of
Organzational Behaviour: Leading Human Resources , Pearson Education, 8th
Edition
• Greenberg Jerald and Baron Robert A. : Behaviour In Organisations:
Understanding and Managing the Human Side of Work, Prentice Hall of India
• Davis, Keith: Human Behaviour at Works, Tata Mc Graw Hill, New Delhi.
• Pareek, Udai : Behavioural Process in Organization, Oxford 4 IBH, New Delhi
• Tosi, Rizzo,&Carroll : Managing Organisational Behaviour-Blackwell Publishers
• Gregory Moorhead, Ricky. W.Griffn(Biztantra7 th Edition)

3. W eb Links

• Visit the URL http://www.speechmastery.com/definition-of-motivation.html

and find more about the definition of motivation.
• Also visit the following URL to know more on Maslow’s and Herzberg’s Theory
on
motivation.http://ollie.dcccd.edu/mgmt1374/book_contents/4directing/motivat
g/motivate.htm
• Visit the following URL to know more on process of motivation
http://images.google.co.in/imgres?imgurl=http://www.laynetworks.com/imag
es/processofmotivation.gif&imgrefurl=http://www.laynetworks.com/Motivation
.html&h=341&w=601&sz=8&hl=en&start=1&tbnid=jaWaNjbOx7Hn7M:&tbnh=
77&tbnw=135&prev=/images%3Fq%3Dmotivation%2Bprocess%26gbv%3D2
%26ndsp%3D18%26hl%3Den%26sa%3DN
• Visit the following URL to see the difference between Maslow’s and Herzberg’s
Theory-
http://www.hotelmule.com/forum/viewthread.php?tid=927&extra=&page=2
• Visit the link http://www.youtube.com/watch?v=M7qTWqXa-bo to view a video
on Maslow’s Need Hierarchy Theory.
• Visit the link http://www.slideshare.net/Annada84/erg-theory to view a
presentation on ERG Theory.
• Visit the link http://www.youtube.com/watch?v=fd3-Esb-m3o to view a short
video on Theory X and Theory Y of Motivation.
• Visit the link
http://managementpocketbooks.wordpress.com/2012/11/20/david-
mcclellands-three-motivational-needs/ to read more on Theory of Needs.

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