WELCOME

TO
A SESSION
ON

EMPLOYEE PRODUCTIVITY THROUGH

MOTIVATION
1.     Introduction
 Motivation is central to understanding and
managing organizational behavior
because it influences workers’ behaviors,
workers’ level of effort, and their
persistence in the face of obstacles. This
chapter discusses the differences
between motivation and performance and
between intrinsic and extrinsic motivation
 1.    
Introduction
 The aim of all managers is the same;
they must be productive. Productivity
improvement is the main objective of
all managers. Of all the factors used
for the transformation of inputs into
output the most important one is
human resources. So managers should
encourage their people so that they
can make maximum contribution to
the organization.
 They must create an environment in
which employee with diverse
backgrounds work together as a
group, to achieve the predetermined
goals effectively and efficiently.
 Now the relevant question is: why is
human resource superior to other
factors of production? Human
resources are endowed with some
unique qualities. Among the important
these are:
People can think and imagine. They
can create something.
They can be motivated. When people
are motivated, they work hard.
They can work as a team.
They have synergetic power. The
whole is greater than the sum of its
parts. Two and two can make five or
more in the case of positive synergy.
Synergy may be also negative.
 What is meant by motivation?
The term motivation can be traced to
the Latin word ‘movere’, which means
to move. Motivation attempts to
influence or cause certain behavior.
It is the set of forces that cause
people to behave in certain ways.
Motivation is the way in which drives
or needs direct a person's behavior
toward a goal. Drives or motives are
set up to alleviate needs. Motivation
induces people to act in a desired
manner.
What is meant by motivation?
 A state of mind, desire, energy or interest
that translates into action”

 “The inner drive that directs a person’s

behavior toward goals”

 The processes that account for an

individual’s intensity, direction and
persistence of effort toward attaining a
goal”
What is meant by motivation?
 The more comprehensive definition
of Motivation is the process of
satisfying the needs of the
employees and inducing,
encouraging and helping the
employees to perform their assign
jobs more enthusiastically for
effective achievement of the
organizational goals.
 Itconcerns the level of effort put
forth to pursue specific goals. It is
the willingness to exert high levels of
effort toward organizational goals,
conditioned by the effort's ability to
satisfy some individual need (Dccenzo
and Robbins, 1999). There are three
elements in this definition: effort,
organizational goal, and needs.
 Needs are created whenever there is
physiological and psychological
imbalance. When someone is
motivated, he put more effort.
Individual needs must be compatible
and consistent with the organizational
goals.
 Motivation as a Process
 Motivation process begins with needs or
a deficiency. People have needs
although number of needs is limited.
Needs arc essential for survival. An
unfulfilled or unsatisfied internal need
creates tension that stimulates drives
within the individual. We can say that
motivated employees are in a state of
tension. To relieve this tension, they
exert effort. The greater the tension, the
higher the effort level.
 These drives generate a search
behavior towards achieving goals,
which will satisfy need and finally
result in satisfaction or reduction of
tension. There are limitations of this
simple need-want-satisfaction chain.
Many needs are influenced by
environmental factors. Needs do
cause behavior but needs also may
result from behavior. Motivation can
be seen as a need-satisfying process.
 Environment Opportunity

Unfulfilled Tension Drive Search Satisfied Reduction

need
Behavior need of tension

Goals & incentives Ability

 Importance of the study of motivation
 According to Tiffin (1974), the
productivity of employee depends on two
aspects, his ability and motivation. Hence
the study of motivation is important on the
following counts:
        Managers must be able to predict the
behaviors of his employees correctly. A
systematic approach to study human
behavior improves our understanding and
predictive capabilities.
   Managers must believe that there is no
average person. People are unique- they
have different needs, ambitions and
attitudes and potentials. Unless managers
understand the complexity and individuality
of people, they may misapply the
generalizations about motivation,
leadership and communication. This
knowledge is essential to predict their
behavior.
   Modern organizations are made up of
people of heterogeneous backgrounds in
terms of religion, language, education and
gender. Managers must understand this
workforce diversity.
  Globalization has intensified
competition. In order to survive,
organizations must be innovative and
creative. This has led to the concept
of human capital. So it is more
important to motivate people to be
creative and innovative.
 Motivational Approach 
A lot of research has been done on
employee motivation. Researchers say
that there are five basic motivational
approaches. These are:
       Directive ness
       Paternalism
       Compromise
       Competition
       Participation
 Directiveness: It is a motivational
approach based on the use of
authority and economic rewards.
 
 Paternalism: It is based on fatherly
treatment of employees.
 
 Compromise: It is based on give-and-
take between superior and
subordinates.
 Competition: It is a motivational
approach that engages employees
against one another for promotions,
pay increase and other benefits.
 
 Participation: It is a motivational
approach based on employee
involvement in decision-making
process concerning the job.
 Allof the above approaches have a
certain degree of validity. Full
motivation comes when employees get
job satisfaction. They do their job
best when they enjoy their work.
 . Theories of Motivation
 There are many theories of motivation.
Among the important these theories are:
       The Carrot and Stick theory,
       McGregor's theory X and Y,
       Ouchi's theory- Z,
       Maslow's Needs Hierarchy theory,
       Alderfer's L-R-G theory,
       Herzberg’s Two Factors theory,
       Equity theory.
       Expectancy theory,
       McClelland's needs theory
1 Motivation: The Carrot and Stick
According to this theory rewards and
punishments are considered strong
motivators. I he carrot may be money
in the form of pay or bonus. The stick
may be in the-form of fear of loss of
job, income, demotion or some other
penalty.
 Theory X and Y
 Douglas McGregor contrasted two sets of
assumptions about workers' attitudes to
work and responsibility and commonly
known as Theory X and Theory Y. These
two sets of assumptions are fundamentally
different. Theory X is pessimistic, static,
and rigid. In contrast Theory Y is
optimistic, dynamic and flexible; with an
emphasis of sell-direction. Theory X and Y
do not imply hard or soft management.
Theory X assumes that lower order needs
dominate employees and theory Y assumes
that higher order needs dominate.
 Theory X
The traditional assumptions about the
nature of people, according to McGregor
arc included in Theory X as follows:
 □        People dislike work and will avoid it if
possible,
 □        People must be coerced, controlled
and threatened to get things done,
 □        Average human beings prefer to be
directed, wish to avoid responsibility.
 □        They have little ambition and want
security above all.
 Theory Y
 The theory Y managers assume that the
average employee:
 □        Enjoys work and does not want to
avoid it.
 □        Wants to attain organizational goals
through self-directed behavior.
 □        Will accept responsibility.
 □        Has initiative and can be creative in
solving organizational problem. 
 Theory X assumes that lower order needs
dominate employees and theory Y assumes
that higher order needs dominant.
 Theory Z
 In his hook Theory Z, William Ouchi (1982)
has identified the characteristics of
successful Japanese and US management
styles and organizational practices. Theory
Z is believed to foster close, cooperative
and trusting relationships among workers,
mangers and other groups.
 The main theme is to make people an
important item. Treat people with respect
and dignity.
 Theory Z selectively adapts some Japanese
practices to the American culture. Ouchi
identifies the management practices of
Theory Z type organization, which are as
follows:
       Lifetime employment (to help
satisfy physiological and safety
needs).
       Consensus decision making (to
help satisfy social needs),
       Individual responsibility (to help
satisfy self-esteem needs),
       Careful evaluation and promotion
(to build confidence and self esteem).
       Concern for the total person (to
help satisfy self-actualization).
       Opportunity to use skills (to help
satisfy self-actualization needs).
. Needs Hierarchy Theory
 Abraham Maslow has developed the
need hierarchy theory of motivation.
Need hierarchies assume that people
have different needs that can be
arranged in a hierarchy of
importance. He proposes that human
needs are not of equal strength. He
saw human needs in the form of
hierarchy, ascending from the lowest
to the highest. Me argued that people
are motivated lo satisfy live need
levels. These are:
       Physiological (need for food,
shelter, sleep, sex, and other bodily
needs),
       Safety (job, and financial
security),
       Social (friendship or interaction
with others).
       Esteem (high status, recognition,
autonomy, self respect),

   Self-actualization (full use of

potentials, able to be creative,
independence.- total self-direction)
 Self
Actualization

Esteem Need

Social Need

Safety and
Security

Physiological Need
 Lower-order and higher-order
needs:
 Maslow separated the five needs into
higher and lower order needs.
Physiological and safety needs were
described, as lower order needs. They
are similar to primary needs. Social,
esteem and self-actualization as
higher order needs. Higher order
needs are satisfied internally and the
lower order needs are satisfied
externally.
 Interpretation of the hierarchy of
needs:
 The concept of hierarchy of needs
has two consequences. Firstly, unless
and until a lower need is satisfied,
higher order needs do not motivate.
In other words, as the lower order
needs are reasonably satisfied, a
person places more emphasis on the
higher order needs. Higher needs
emerge as lower needs -are fulfilled
or satisfied. Secondly, once a need is
satisfied, it no longer motivates. A
fully satisfied need would not be a
strong motivator.
 E-R-G theory
 Clayton Alderfer has proposed an
alternative hierarchy of needs called the
ERG theory of motivation. The letters E, R,
and G stand for Existence, Relatedness and
Growth. He suggests that people's needs
can be grouped into three levels, not five
levels. Existence needs are essential for
basic human existence and these arc
similar to Maslow's physiological and
security needs. Relatedness needs,
involving the need to relate to others, are
similar to the Maslow" belongings and
esteem needs. Finally, growth needs are
equivalent to Maslow's needs for self
esteem an actualization.
 Motivation-Hygiene Theory
Fredrick Herzberg, a social
psychologist, proposed the
motivation-hygiene theory based on
satisfaction. He extended the work
of Maslow and developed a specific
content theory of work motivation.
His theory played a major role in
managerial motivation. He found that
one set of job and personal factors
produced good feelings and that
another created bad feelings. He
found that entirely two different
sets of factors were associated with
the two kinds of feelings about work.
 One set of factors, Herzberg called
hygiene factors. These factors are
associated with job context. The hygiene
factors include salary, job security,
personal life, working condition, status,
interpersonal relations, and technical
supervision and company policies. These
factors do not give positive satisfaction
but their absence will cause
dissatisfaction, and they cannot motivate
an employee. These factors are essential to
avoiding or preventing job dissatisfaction
but do not lead to satisfaction. When they
are adequate, people will not be
dissatisfied: however, neither-will they be
satisfied.
 Herzberg described the second set
of factors as motivating factors.
They include achievement,
recognition, autonomy, challenging
work advancement and growth in the
job. Three factors are associated
with job content. Their existence will
produce feelings of satisfaction or no
satisfaction. These arc intrinsic
factors.
 Equity Theory
 Employees work in a social system in which
they observe one another, judge one
another and make comparisons. They want
their rewards system to be fair. 
 The Equity theory refers to a person's
subjective judgment about the fairness of
receiving reward, relative to the inputs, in
comparison with the rewards of others. . It
is based on a persons perception what he is
giving and receiving versus what the other
person is giving and receiving. Greater the
fairness perceived, higher the motivation
and vice versa
 McClelland's Needs Theory of
Motivation
 David McClelland has identified the
following three basic needs or drives
within an individual: 
 Needs for achievement:
 People who think about how they can improve on
their work, who wonder how they might accomplish
something that is valuable, and who derive great
satisfaction from striving to do good work arc
considered to have a high need for achievement.
McClelland conducted studies and indicated strong
positive relationship between high need Jim
achievement and high level of job performance and
executive success. Me offered the following
reasons why people feel strong need for
achievement:
 Need for affiliation:
 People who think about developing
warm, friendly, personal relationships
with others in the organization are
considered to have a high need for
affiliation. They have a high need for
affiliation and usually are more
sensitive to other's feelings.
Personnel employees, teachers,
nurses, counselors and many
government employees typically have
high need for affiliation.
 Need for power:
 People who think about the influence
and control they have over others and
how they can use this influence to
change people's behavior, gain
authority and status and dominate
decisions are considered to have a
high need for power. Their needs are
satisfied by manipulating and
controlling others. Research studies
indicate that top managers and
especially organizational presidents
are highly motivated by the need for
power.
 The Guidelines of Effective Motivation
 There are a number of motivation theories.
It is difficult and even dangerous to
synthesize a large number of complex ideas
into a few simple guidelines. The following
suggestions are offered with the hope of
motivating employees in the organizations. 
 Employees have different needs. Do not
assume that all people are motivated by
same needs. Spend the time necessary to
understand what is important to each
employee. 
 Do not treat them al alike. People are
different physically and more importantly
psychologically.
 Make you employees feel important. Human
beings want to be appreciated and like to
feel important.
 Allow employees to participate in decisions
that affect them. This can increase
employee productivity, commitment to work
goals, motivation and job satisfaction. 
 Guide rather than order. Set a good
example. The manager set the style for his
people.  
 Subordinates are always watching their
boss. Be a person worth coping..
 Rewards should be contingent on
performance.
 Money as a motivator: the debate
 There is a controversy whether
money is a motivator or not. Critics
arc divided on this issue. Many people
argue that the traditional carrot and
stick method of motivation still works
today. The carrot has been money and
the slick has been taken in the form
of physical, financial or social
punishment. Money is important to
employees for a number of reasons.
Money is reward for accomplishment
and is a means of giving people
pleasure from accomplishment.
 a)      Money is more important to people
that meet their monetary needs. Money is
urgent means of achieving a minimum
standard of living, purchasing of goods and,
services. So money has the economic value
of the people. Others thing may never do
that.
 b)      It is quite true that in most kinds of
organizations, money is used as a means of
attracting and holding qualified people. This is why
organizations make their wages and salaries
competitive within their industry. Organizations
often take greater care to ensure that people on
comparable jobs arc given the same compensation
because people usually evaluate their compensation
in light of what their equals are receiving.
 c) The money must be received as directly
related to the required extra performance
and must be received immediately upon
completion.
 d) It is almost certainly true that money can
motivate only when prospective payment is large
relative to a person's income. But employees
differ in the amount of money they want. For
example, an extra taka ten thousand may not be
motivating to an executive who earns taka two lakh
annually. This is why; pay increases or bonus should
be large enough to motivate the receiver. The
annual pay increases in Bangladeshi firms is so low
that .it seldom motivates the receiver. They may
keep the employees from being dissatisfied and
from looking for another job.
 After all there are many non-
financial incentives such as:
       Employee satisfaction
       Morale motivation
       Interpersonal relationships
       Effective supervision
       Group dynamics might increase
productivity.
 Importance of different incentives in
motivating industrial managers in
Bangladesh.
 The study was designed to investigate the
relative importance of different incentives
for motivation, as perceived by different
levels of industrial managers (top and
bottom level managers). The sample of the
study comprised of 90 managerial
employees from four different
organizations located in Dhaka city. The
sample of the study was selected on
random sampling basis. The results of the
study indicate that all incentives are not
equally important in motivating managers
and it also varies with the variation of the
levels of managers.
 Job security, autonomy in work,
promotional opportunity, participation
in decision-making are more important
to top-level managers. While the
bottom level managers have
considered application of sound
management principles, training and
open communication as more
important incentives to their
motivation at work. Both the groups
have however, rated wage as a
relatively less important incentive for
their motivation
 They have ranked the motivational
factors in the following way:
       Job security
       Justice and equity
       Promotional opportunity
       Recognition and reward for good
work
       Autonomy in work
       Participation in decision-making
       Wages
       Application of sound
       Management principles
       Removal of hindrances
       Feedback
       Open communication
       Good relation with co-workers
       Training facilities
       Encouragement for good work
       Competition (among the
colleagues)
 Finally,according to the article there
are good numbers of incentives to
motivate the managers working in
industry but all these are not equally
important. Some incentives are
relatively more important then the
others and it also varies with the
levels of management. The study
reveals some interesting facts of-our
industrial life. Altitudes of our
manager about wage, job security and
autonomy in work are few of them.
 THANKS
FOR
ATTENDING THE SESSION