Maslow need hierarchy theory:

This theory explains that everyone is motivated to satisfy five basic needs. These
needs are arranged in a hierarchy. We satisfy the lower needs first. As each need
is met, we satisfy the next level need until we have met all five needs.

The hierarchy of needs is as follows:

a) Physiological needs
b) Security needs
c) Belongingness needs
d) Esteem needs
e) Self-actualization needs

Maslow’s Hierarchy of Needs in the KBA Global Pvt. Ltd.:

This theory is still relevant today to understand human motivation and personal
development in workplace environments and business management.
The idea is that people have basic needs in life and, if they don’t meet these
needs, it’s hard to move up the pyramid. So when individuals have met their most
basic needs (food, drink, sleep, shelter, etc.), they try to fulfill their “higher” needs
and get a transformative self-actualization. This desire to meet individual needs is
what motivates people in life.
This theory can be applied to the KBA Global Pvt. LTD. We will analyze how
motivation helps individuals and companies alike to meet their most basic needs
and try to move up the pyramid, as they are concerned with trying to reach
further goals, more elevated needs.

A. Physiological needs
The most basic needs KBA Global can offer their employees are found at
the base of the pyramid. These are basic salaries, lunch break, rest breaks,
good working environment. KBA Global has been providing comfortable
 working condition (AC room), reasonable working hours (10 AM – 5 PM),
necessary breaks to eat/drink, use the bathroom to its employees.

B. Security needs:
KBA Global has been taking care of employees security needs
By providing safe working conditions (CCTV system, AC room), paid sick
leaves etc.
C. Belongingness needs:
KBA Global has created an environment of team sprits and sense of
community through team based work. They are promoting a good work-life
balance. All the employees have right to participate in decision making.
D. Esteem needs:
It refers to the need for self-esteem and respect, with self-respect being
slightly more important than gaining respect and admiration from
others. KBA account for the esteem needs of their employees by offering
praise and recognition when the employee does well, and offering
promotions and additional responsibility to reflect their belief that they are
a valued employee.
E. Self-actualization needs:
It describe a person's need to reach his or her full potential. The need to
become what one is capable of is something that is highly personal.
Because this need is individualized, KBA can account for this need by
providing challenging work, inviting employees to participate in decision-
making and giving them flexibility and autonomy in their jobs.
Five important Limitations about Maslow’s Hierarchy of Needs Theory:

1. The Theory is lacking about the motivators of extrinsically driven

individuals:

At stage 4 and stage 5 (Esteem Needs and Self-Actualization Needs), the theory
is of questionable relevance to individuals that are driven by extrinsic rewards.
The reason being that it is not common nowadays for people to be unhappy about
their co-workers and bosses, yet can still maintain high and consistent
performances as they are being promised a promotion, higher pay, or a lavish
vacation which the company will pay for.
So an individual might be stuck at the third stage (Belongingness needs) for having
a bad relationship overall with his/her peers, but is motivated by the unlisted
motivator, which is money.

2. Difficult for manager to identify the need level for employees :

There will be some difficulty for managers in deciding which need level employees
are on, and this might curb the motivation of employees at the workplace.
Take for example a particular employee that is moving from stage 3 (Belongingness
needs) to Stage 4 (Esteem Needs). In simpler words, said employee feels the need
for his contributions to be accepted by someone within the company.

If the manager of the company does not give sufficient appraisal towards his efforts
soon, then the employee’s efforts motivation will go into decline. Because
different managers view efforts subjectively, it might be that his best effort was
perceived as insufficient and motivation goes down.

3. The Most Powerful unsatisfied Need provides the most motivation :

This is often due to the fact that different individuals are driven to satisfy
different needs at a certain time.
To illustrate, let’s take a certain employee which find himself hard to be accepted
by others, but presents very innovative ideas that makes the manager favoring him
and appraising him more than anyone else within the company.
Based on Maslow’s theory, the employee is at stage 4 of the chart (Esteem Needs)
and should focus on doing more things that pleases his boss so he can move up to
stage 5 (Self-Actualization Needs).
However in reality, the employee has a strong urge to fulfil stage 3 in his hierarchy
of needs (Belongingness needs) and it is possible that he might put in less effort at
work in order to fulfil the unsatisfied motivator of his.
The point of this illustration is that in the real world, the needs aren’t fulfilled in
chronological order, as people will make the effort eventually to satisfy latent
needs in the hierarchy.

4. The theory is not empirically supported-

The definition of empirical is ‘something that can be proven or verified through

studies or experiments’.
Maslow’s theory cannot be proven to be 100% true due to certain
inconsistencies (Point number 3) and also due to human factors in the 21st century
(Point number2)

5. Basic Needs may not need to be satisfied to acknowledge higher needs:

Based on the theory, we assume that if an individual that is lacking in basic

amenities or in a questionable working environment, he/she will never unlock
the higher needs in the hierarchy.
However the ‘starving artist’ scenario says otherwise. The scenario is about an
artist whose base needs in the hierarchy are not fulfilled, but yet he will still strive
for fame and recognition
This scenario proves that Maslow’s theory might not work in certain cases.it is not
impossible for someone who is desperate for fame and recognition to neglect
his/her own well-being in order to attain them.
 Herzberg two factor theory:
The Two-Factor Theory includes two types of factors that affect how motivated or
satisfied an employee is at work. These are comprised of hygiene factors and
motivator factors.

Hygiene Factors:

Hygiene factors are those that need to be addressed by a business in such a way
that they would not result to the employee’s unpleasant experiences and feelings
at work. The satisfaction of hygiene factors motivates employees in their work.
The hygiene factors are:

1. Wages, salaries and other financial remuneration

2. Company policy and administration
3. Quality of interpersonal relations
4. Working conditions
5. Feelings of job security
6. Quality of supervision

Motivator Factors:

Motivator factors emerge from the need of an individual to achieve personal

growth. Job satisfaction results from the presence of motivator factors.
Moreover, effective motivator factors do not only lead to job satisfaction, but also
to better performance at work. The motivator factors are:

1. Challenging or stimulating work

2. Status
3. Opportunity for advancement
4. Responsibility
5. Sense of personal growth/job achievement
6. Acquiring recognition
 Herzberg two factor theory in the KBA Global Pvt. Ltd.:

The two-factor theory of motivation can be used to analyze any evidence of de-
motivated employees at work inside KBA global. Applying Herzberg’s model,
these evidences may include a low level of productivity, poor quality of service,
poor employee-employer relationships, and disputes concerning pay and/or
working condition complaints. Following a thorough assessment on the hygiene
factors of the business and the motivator factors concerning employees at work,
KBA can apply three methods in which work can be rearranged:

1. Job Enlargement
2. Job Rotation
3. Job Enrichment

Limitations of Herzberg two factor theory:

1. The two-factor theory overlooks situational variables.

2. Herzberg assumed a correlation between satisfaction and productivity. But
the research conducted by Herzberg stressed upon satisfaction and ignored
productivity.
3. The theory’s reliability is uncertain. Analysis has to be made by the raters.
The raters may spoil the findings by analyzing same response in different
manner.
4. No comprehensive measure of satisfaction was used. An employee may
find his job acceptable despite the fact that he may hate/object part of his
job.
5. The two factor theory is not free from bias as it is based on the natural
reaction of employees when they are enquired the sources of satisfaction
and dissatisfaction at work. They will blame dissatisfaction on the external
factors such as salary structure, company policies and peer relationship.
Also, the employees will give credit to themselves for the satisfaction factor
at work.
6. The theory ignores blue-collar workers. Despite these limitations,
Herzberg’s Two-Factor theory is acceptable broadly
 Alderfer’s ERG theory:
To bring Maslow’s need hierarchy theory of motivation in synchronization with
empirical research, Clayton Alderfer redefined it in his own terms. His rework is
called as ERG theory of motivation. He recategorized Maslow’s hierarchy of needs
into three simpler and broader classes of needs:

 Existence needs- These include need for basic material necessities. In short,
it includes an individual’s physiological and physical safety needs.
 Relatedness needs- These include the aspiration individuals have for
maintaining significant interpersonal relationships (be it with family, peers
or superiors), getting public fame and recognition. Maslow’s social needs
and external component of esteem needs fall under this class of need.
 Growth needs- These include need for self-development and personal
growth and advancement. Maslow’s self-actualization needs and intrinsic
component of esteem needs fall under this category of need.

ERG theory in the KBA Global Pvt. Ltd.:

KBA Global must understand that an employee has various needs that must be
satisfied at the same time. According to the ERG theory, if the manager
concentrates solely on one need at a time, this will not effectively motivate the
employee. Also, the frustration- regression aspect of ERG Theory has an added
effect on workplace motivation. For instance- if an employee is not provided with
growth and advancement opportunities in an organization, he might revert to the
relatedness need such as socializing needs and to meet those socializing needs, if
the environment or circumstances do not permit, he might revert to the need for
money to fulfill those socializing needs. The sooner the manager realizes and
discovers this, the more immediate steps they will take to fulfill those needs
which are frustrated until such time that the employee can again pursue growth.
Limitations of ERG theory:

1. The ERG theory does not offer clear cut guidelines. This theory says that an
individual can satisfy any of the three needs first. But how will we determine
which of the three needs is more important to that person.

2. This theory is a new concept as compared to the Maslow’s theory. Alderfer’s

research has indicated some degree of support for the theories but yet it is too
early to pass judgment on the overall validity of the theory.

Douglas McGregor's Theory X and Theory Y:

Theory X and Theory Y was created and developed by Douglas McGregor at the
MIT Sloan School of Management in the 1960s. It describes two very different
attitudes towards workforce motivation. McGregor felt that companies followed
either one of these approaches.

Theory X:

In this theory, management assumes that employees are inherently lazy and will
avoid work if they can. Because of this, workers need to be closely supervised and
comprehensive systems of control put in place. A hierarchical structure is needed,
with narrow span of control at each level, for effective employee management.
According to this theory employees will show little ambition without an enticing
incentive program and will avoid responsibility whenever they can.

The managers influenced by Theory X believe that everything must end in blaming
someone. They think most employees are only out for themselves and their sole
interest in the job is to earn money. They tend to blame employees in most
situations, without questioning the systems, policy, or lack of training which could
be the real cause of failures.

Managers that subscribe to Theory X tend to take a rather pessimistic view of

their employees. Theory X manager believes that it is the manager’s job to
structure the work and energize employees. The result of this line of thought is
that Theory X managers naturally adopt a controlling style based on the threat of
punishment. Critics believe that a Theory X manager could be an impediment to
employee morale & productivity.

Theory Y:
Management influenced by this theory assumes that employees are ambitious,
self-motivated and anxious to accept greater responsibility and exercise self-
control, self-direction, autonomy and empowerment. Management believes that
employees enjoy their work. They also believe that employees have the desire to
be creative at their work place and become forward looking. There is a chance for
greater productivity by giving employees the freedom to perform to the best of
their abilities, without being bogged down by rules.

Theory Y manager believes that, given the right conditions, most people will want
to do well at work and that there is a pool of unused creativity in the workforce.
They believe that the satisfaction of doing a good job is a strong motivation in
itself. Theory Y manager will try to remove the barriers that prevent workers from
fully actualizing themselves.

Many people interpret Theory Y as a positive set of assumptions about workers. A

close reading of The Human Side of Enterprise reveals that McGregor simply
argues for managers to be open to a more positive view of workers and the
possibilities that create enthusiasm.

Theory X and Theory Y in the KBA Global Pvt. Ltd.:

KBA GLOBAL shall use a mixture of Theory X and Theory Y. They may use a Theory
X style of management for new starters(employees) who will likely need a lot of
guidance, or in a situation that requires you to take control such as a crisis .
But they shouldn’t use it when managing an old/experienced employees, who are
working from many years, and need little direction. If they did, it would likely
have a demotivating effect and may even damage their relationship with them.
However, both theories have their challenges. The restrictive nature of Theory X,
for instance, could cause people to become demotivated and non-cooperative if
one approach is too strict. This may lead to high staff turnover and could damage
your reputation in the long term.
Conversely, if KBA adopt a Theory Y approach that will gives employees too much
freedom, it may allow them to stray from their key objectives or lose focus. Less-
motivated employees may also take advantage of this more relaxed working
environment by avoiding their work.

If this happens, KBA may need to take back some control to ensure that everyone
meets their team and organizational goals.

Limitations of Douglas McGregor's Theory X and Theory Y

1. Theory X style of management fosters a very hostile and distrustful
atmosphere- An authoritarian organization requires many managers just because
they need to constantly control every single employee, and the method of
control usually involves a fair amount of threat and coercion.

At times, an employer that is overly threatening will lead to dissatisfaction among

employees, or they might even attempt to blame each other in order to save
themselves from the threats.

Conversely, Coercion might work better with the prospects of bigger rewards for
more, but employees might purposely try to cheat or attempt to hide the truth
itself. Also, employees might try to sabotage the efforts of each other in order to
make it easier for them to achieve the rewards.

2. Theory Y style of management is tough to uphold in reality- The core belief of

Theory Y, is that with the right support and the right environment, self-directed
employees will be able to perform their jobs well. However, because every
individual is different from one another, creating an environment which fits all
does not sound very practical in the current era of organizations.
3. Theory X and Theory Y is very hard to be used with each other- Just because we
think that utilizing different theories in order to accommodate different types of
employees does not mean that it would be beneficial to the companies. In the
end, the human labor of the company might be improved, but at the cost of
creating monetary loses as well as inefficient allocation of resources.

For example, a company decides to use both theories together. So, in order to
accommodate the need of employees who are managed based on Theory X, more
employers will need to be hired and paid. The company also needs to pay and to
create a comfortable environment for employees that are self-motivated based on
a theory Y concept. It costs a small fortune for the company to cater to the different
tastes of so many employees. It is estimated that the company spending would be
high enough based on these factors alone.

Therefore, it might just be more beneficial for the company to utilize a single
theory and hire employees that can be consistently managed with that theory
alone.

4. Theory X and Theory Y makes employment harder- Previously, I’ve said that
companies should only use a single theory at once. The theory that should be used
is the one that can effectively manage all employees within the organization.

However, this in turn causes a problem during the employment process, because it
is likely that a company will reject an applicant solely because he/she is not
consistent with the theory that the company uses.

Therefore, if companies actually follow these theories closely, it will be harder for
potential candidates to get a job just because the company cannot handle their
characteristics within the workplace and may give candidates that the company
discriminates heavily upon its applicants.
5. Theory X and Theory Y work on assumptions- I think organizations should be
careful, and not rely too heavily on Theory X and Theory Y because there are a lot
of assumptions.

The workforce is changing nowadays, and the workplace is a dynamic mix of

employees from different backgrounds, races and genders. Also, employees might
have completely different motivations and goals for choosing to work within an
organization.

Nowadays, an employee from Generation X might come into the workforce from
his/her previous retirement, and Generation Y employees might be wrongly
perceived as ‘slackers’ for relying more on technology to manage their meetings
and make their jobs easier .

There are so many other factors that influence the employee behaviour within an
organization in this current era, so Theory X and Theory Y may even be slightly
obsolete.