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MOTIVATION

UNIT-II
Motivational Factors
Several researchers have carried out
research studies to identify the factors that
motivate people to start business enterprises.
Motivational factors, for the entrepreneur are
classified into two internal or external
motivators.
INTERNAL FACTORS:
1. Educational background
2. Occupational experience
3. Desire to do something innovative
4. Desire to be free and independent
5. Family background

EXTERNAL FACTORS:
6. Assistance from Government
7. Financial assistance from institutions
8. Availability of technology and/or raw materials
9. Heavy demand for product
10. Encouragement from big business units
THEORIES OF MOTIVATION
MASLOW'S NEED HIERARCHY THEORY
Prof. A.H. Maslow developed a theoretical framework for
understanding human motivation which has been widely acclaimed.
Maslow proposed that human needs can be arranged in a particular order
from the lower to the higher.
Physiological Needs
The physiological needs relate to the survival and
maintenance of human life. These needs include such things
as food, clothing, air, water, shelter and other necessaries of
life which are biological in nature. These needs are primary
needs.
Safety and Security Needs:
After satisfying the physiological needs, people want the
assurance of maintaining a given economic level. They want
job security, personal bodily security, security of source of
income, provision for old age, insurance against risks, etc.
Social Needs:
Man is a social being. He is, therefore, interested in
conversation, sociability, exchange of feelings, love,
affection, care, friendship, grievances, recognition,
belongingness, etc.
Esteem and Status Needs:
Esteem needs are of two types: internal esteem needs
(self- respect, confidence, competence, achievement and
freedom) and external esteem needs (recognition, power,
status, attention and admiration). They are concerned with
prestige and status of the individual.
Self-actualization need:
The final step under the need priority model is the need
for self-actualization or the need to fulfill what a person
considers to be his mission in life. It involves realizing
one's potentialities for continued self-development and
for being creative in the broadest sense of the word. After
his other needs are fulfilled, a man has the desire for
personal achievement. He wants to do something which
is challenging and since this challenge gives him enough
dash and initiative to work, it is beneficial to him in
particular and to the society in general. The sense of
achievement gives him psychological satisfaction.
McClelland's Acquired Needs Theory
Each person tends to develop certain motivational drives as a
result of his cognitive pattern and the environment in which he
lives. David McClelland gave a model of motivation which is
based on three types of needs, namely, they are as follows:
 Need for achievement (n-Ach): a drive to excel, advance
and grow;
 Need for power (n-Pow): A drive to influencing others and
situations ; and
 Need for affiliation (n-Aff): A drive for friendly and close
interpersonal relationships.
Achievement Motivation
Some people have a compelling drive to succeed and they
strive for personal achievement rather than the rewards of
success that accompany it. They have a desire to do
something better or more efficiently than it has been done
before. This drive is the achievement need (n-Ach). From
researches into the area of achievement need, McClelland
found that high achievers differentiate themselves from others
by their desire to do things better. They seek situations where
they can attain personal responsibility for finding solutions to
problems. They prefer the challenge of working at a problem
and accepting the personal responsibility for success or
failure.
Power Motivation
The need for power (n-Pow) is a drive to have impact, to
be influential, and to control others. Individuals high in
n- Pow enjoy being “in charge”, strive for influence over
others, prefer to be placed into competitive and status-
oriented situations, and tend to be more concerned with
gaining influence over others and prestige with effective
performance. Power-motivated people wish to create an
impact on their organisations and are wiling to take risks
to do so.
Affiliation Motivation:
This need has received the least attention of researchers.
Affiliation need (n-Aff) can be viewed as the desire to be
liked and accepted by others. It is the drive to relate to
people on a social basis. Individuals with a high
affiliation motive strive for friendship, prefer cooperative
situations rather than competitive ones, and desire
relationships involving a high degree of mutual
understanding.
McGregor’s Theory X & Y
In 1960, Douglas McGregor formulated Theory X and
Theory Y suggesting two aspects of human behaviour at
work, or in other words, two different views of individuals
(employees): one of which is negative, called as Theory X
and the other is positive, so called as Theory Y.
Assumptions of Theory X
An average employee basically does not like work and tries to
escape it whenever possible.
Since the employee does not want to work, he must be convinced,
bound, or warned with punishment so as to achieve organizational
goals.
 A close supervision is required on part of managers.
 The managers adopt a more dictatorial style.
 Many employees rank job security on top, and they have little
or no aspiration/ ambition.
 Employees generally dislike responsibilities.
 Employees resist change.
 An average employee needs formal direction.
Assumptions of Theory Y
 Employees can perceive their job as relaxing and normal. They
exercise their physical and mental efforts in their jobs.
 Employees may not require threat, external control and pressure
to work, but they can use self-direction and self-control if they
are dedicated and sincere to achieve the organizational
objectives.
 If the job is rewarding and satisfying, then it will result in
employees’ loyalty and commitment to organization.
 An average employee can learn to admit and recognize the
responsibility. In fact, he can even learn to obtain responsibility.
 The employees have skills and capabilities. In other words, the
creativity, resourcefulness and innovative potentiality of the
employees can be utilized to solve organizational problems.
Thus, we can say that Theory X presents a pessimistic
view of employees’ nature and behaviour at work, while
Theory Y presents an optimistic view of the employees’
nature and behaviour at work.
If correlate it with Maslow’s theory, we can say that
Theory X is based on the assumption that the employees
emphasize on the physiological needs and the safety
needs; while Theory Y is based on the assumption that the
social needs, esteem needs and the self-actualization
needs dominate the employees.

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