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In the words of Michael Jucious, "Motivation is the act of stimulating someone or oneself to get a desired course of action, to push

the right button to get a desired reaction."

What is motivation? What factors influence motivation of employees? Explain in detail Maslows need hierarchy theory. Explain the Herzbergs two-factor theory of motivation. Explain McGregors Theory X and Theory Y. What is Employee Morale? Explain its features/nature and importance.

Characteristics / Features of Motivation


(1) Motivation is an Inner Drive : Motivation is an energetic force within an individual that makes him to behave in a certain way. (2) Motivation is a Goal-Directed Behaviour : Motivation leads to an action that is goaloriented. It harnesses human energy to the achievement of organisational objectives.

(3) Motivation is Systems Oriented : Motivation is affected by two forces : (a) Internal forces These are forces within the individual, i.e. his needs, wants, nature etc. (b) External forces These are forces outside the individual which may be organisational related like management philosophy, organisational structure, superior-subordinate relationship, etc. and External forces may also be forces found in the external environment i.e. culture, customs, religion, values, etc.

(4) Motivation can be Positive or Negative : Positive motivation or the correct approach offers positive incentives like praise, promotion, higher pay and incentives, etc. Negative motivation or stick approach emphasises penalties, while controlling performance like threats, punishments, etc. (5) Motivation is Complex in Nature : Human behaviour is highly intriguing and it becomes extremely difficult to understand people at work. Thus, motivation is a highly complex process. (6) Motivation and Satisfaction are Related but not Synonymous : Motivation is the drive to satisfy a want or goal. Satisfaction refers to the contentment experienced when a want is satisfied. This satisfaction is a consequence of motivation.

Monetary Factors :
(1) Basic Salary/Wages : Every employee takes up a job to earn a reasonable salary or wage. And this has always been a motivational factor. Motivation to work is low if there is no adequate compensation for the work done. At the same time a reasonable salary/wage structure is certainly motivating. (2) Bonus : Bonus is a monetary reward given to employees which is linked to the total productivity/profitability of the organisation. Higher the profits, higher the bonus (bonus in India is paid annually).

(3) Financial Incentives : Incentives can be anything that attracts an employee's attention and stimulates him to work. It is mainly to reward their skills and ability to achieve important goals. General incentives given to all employees could be medical allowances, house rent allowance, educational allowance, leave travel allowance, etc. Whereas special individual incentives could be cash prizes, trips abroad, gift vouchers/coupons, etc. (4) Promotion (Monetary Part) : Promotion is the transfer of an employee to a job which calls for higher pay, greater responsibilities and better terms and conditions of service and therefore a higher status or rank. Thus, the higher pay attached to promotion is a financial factor of motivation.

(5) Stock Options : Stock options is a system by which employees are offered equity shares of the company on a preferential basis. When a company makes Initial Public Offer (IPO) or subsequent public/preferential issues, a fixed number of shares will be reserved exclusively for the employees of the company. Availability of high-priced shares at a discount enables the employees to get financial benefits. (6) Profit Sharing : Profit sharing is regarded as a stepping stone to industrial democracy. Profit sharing is an arrangement by which employees receive a fixed share in advance of the profits. This is a reward offered to persons who have put in some required years of service. The percentage to be shared by the workers is often pre-determined at the beginning of the workperiod and is communicated to the worker so that they get motivated to put in their best.

II. Non-monetary Factors :


(1) Promotion (Non-monetary aspect) : The job title, greater authority and responsibility and the improved working conditions attached to promotion form the non-monetary motivational factors. (2) Appreciation and Recognition : Hard work and sincere efforts of the employees, if appreciated and recognised by superiors can be extremely motivating. This reaffirms to the employee that the management is aware of his contributions. (3) Quality of Working Life (QWL) : The main objective of this is to make the job more interesting for the employee. (4) Job Rotation : For eg.: For few months, a lady may do the receptionist's job, then a data operator's job and so on.

(5) Job Enrichment : This can be done by giving the employees more freedom to take decisions, encouraging participation of subordinates and interaction between workers, etc. (6) Job Enlargement : In this, the scope of the job is enlarged by adding similar tasks without enhancing responsibility. Eg. : Thus job rotation, job enrichment and job enlargement all enhance motivation to work. (7) Superior-subordinate Relationship : Research studies have proved that a cordial superior-subordinate relationship is a great motivating factor. This induces the feeling of loyalty and commitment which makes the employee to give in his best.

(8) Worker's Participation : When superiors encourage workers to participate in decision-making, this appeals to their sense of affiliation and acceptance and also increases their knowledge and awareness about their work and thus encourages them to perform better. (9) Working Conditions : An air-conditioned office, with good interiors and latest equipments could be a great motivating factor. This gives a sense of well-being and improves work performance.

NEED AND IMPORTANCE OF MOTIVATION


(1) Greater Willingness to Work : Motivation in employees instills greater willingness to work which brings about higher degree of involvement. (2) Higher Efficiency : The spirit of willingness to work brings in higher efficiency which increases the returns as compared to the costs. (3) Optimum Utilisation of Resources : Higher involvement at work brings down the wastage levels, thus, leading to optimum utilisation of resources. (4) Team Spirit : Highly motivated employees will put in their best to achieve the organisational goals which instills in them the team spirit.

(5) Reduces Employee Turnover : When management follows a well-devised motivation plan, it then acknowledges, appreciates and inspires individuals in the organisation to perform better. This makes them committed and loyal to the organisation thus reducing labour turnover. (6) Encourages Initiative and Creativity : Proper motivational policies will encourage employees to take more initiative and be more creative in their jobs, thus bringing out their best. (7) Cordial Work Environment : A motivated work force has high morale and greater team spirit and thus ensures a cordial work environment which is necessary for higher productivity and profitability. (8) Improves Corporate Image : The employee moral being high, there is loyalty towards the firm and this improves relationships with stakeholders like shareholders, clients, suppliers and others and thus enhances corporate image.

Maslow's Need Hierarchy Theory


Abraham Maslow's Need Hierarchy Theory is one of the most popular theories of motivation. Following are the essential elements of this model : (1) Human needs are innumerable and complex. No single motive determines behaviour, in fact a number of motives operate at the same time. (2) Needs form a hierarchy and the lower level needs have to be at least partially satisfied before one moves on to the higher level needs. (3) A need that is satisfied is not a motivator. Only unsatisfied need can motivate persons into action. (4) Higher level needs can be satisfied in many more ways than can the lower level needs. (5) Every human being wants to move up the need hierarchy. Nobody wants to stop with the satisfaction of lower level needs.

The physiological need and safety and security needs, social needs are the lower level needs; Ego and Esteem Needs and Self Actualisation needs are higher level needs. A. Lower Level Needs : (1) Physiological Needs : (1) Are the biological needs of an individual which is required to preserve human life. E.g. food, clothing, shelter, sleep, etc. (2) In most cases they can be identified with a particular organ of the body. Eg.: Need for food Stomach.

(2) Safety and Security Needs : Once the physiological needs are relatively satisfied, then the safety and security needs emerge. These needs are related to safety of life, health and property and Maslow also includes emotional safety. These needs manifest in the form. (a) Protection from physiological dangers (fire, health hazards, accident, etc.) (b) Economic Security (job security, health insurance, fringe benefits, etc.

(c) Desire for orderly, predictable environment. (d) Desire to know the limits of acceptable behaviour. Organisation can cater to these needs either positively through pension schemes, insurance plans, providing gadgets for safety to workers, etc. or negatively by arousing fears of being fired or laid off.

(3) Social Needs : Man is a social animal and he wants to have a sense of association or belongingness. This need varies from person to person. Social needs have the following characteristics (a) Social needs add meaning to work life. These needs help them to rise from being economic tools to beings who want to belong, to associate, to gain acceptance, to give and receive friendship and affection.

(b) Social needs are secondary as they are not essential to preserve human life. (c) Social needs are substantially infinite. (d) Social needs are primarily satisfied through symbolic behaviour of psychological nature. Organisations meet the social needs of employees through family picnics, get together, participative decision-making, group incentives, etc.

4) The Ego and Esteem Needs : Ego and Esteem needs relate to self-esteem and esteem of others. Self esteem needs include those for self-confidence, achievement, competence, self-respect, knowledge and for independence and freedom. Following are the features of ego and esteem needs : (a) They become motivators only after the lower level needs are reasonably satisfied. (b) These needs are rarely satisfied.

(c) Satisfaction of the ego and esteem needs produces feelings of selfconfidence, worth, strength, capability of being useful and necessary. Ego and Esteem needs are catered to by organisations through promotion policies, providing separate cabins with all facilities, providing secretary to attend to, etc. Self-esteem needs can be catered to through giving more responsible task and freedom to perform the task, etc.

(3) These needs are essentially finite as an individual demands only a particular amount of these needs and after reasonable satisfaction does not want more of it. (4) However, they have to be repeatedly satisfied within relatively short time periods. In an organisation, physiological needs are satisfied by way of canteen facilities, Cloak/rest rooms, etc. The salary per se may not satisfy physiological needs but these can be satisfied with what money can buy.

(5

) Self-Actualisation Needs : The very fact that this need is at the tip of the triangle clearly indicates that there are very few people rising up to this level of need. These needs are growth needs and in an organisation it is fulfilled by way of challenging jobs, the opportunity to express creativity and innovativeness.

However, Maslow's theory has the following limitations : (a) The hierarchy of needs is not a rigid structure that can be applied evenly under at circumstances. There are many instances when an individual may want to fulfill the higher level needs before the lower needs are satisfied.

(b) The shift from one need to another is not clearly understood. (c) The model of Maslow is based on a relatively small sample of subjects so the reliability and validity of it is questionable. (d) Critics point out that needs cannot be classified into such neat water-tight compartments. (e) Finally behaviour is not influenced by needs alone, factors like expectations, experiences, etc. also have a great impact on behaviour.

McGregor's Theory X and Theory Y :


This theory states that the organisational structure, the superiorsubordinate relationship, the communication process, control techniques, etc. followed in an organisation is essentially based on certain assumptions about human nature.

Theory X Assumptions : The traditional assumptions about the nature of people according to McGregor are included in Theory X as follows : (1) Average human beings have an inherent dislike of work and they try to avoid it as much as they can. (2) Because of this inherent dislike for work, most people have to be coerced, controlled, directed and threatened with punishment to get them to give their best. (3) Average human beings would like to avoid responsibility, have comparatively low ambitions and want security above all. .

(4) They are inherently self-centered and indifferent to organisational needs. (5) They are by nature resistant to change. (6) They are not very bright, co-operative and productive Thus, Theory X is pessimistic and rigid. Managers tend to very closely control, direct and supervise and the employees in turn may resort to restricted output, militant unionism and a subtle sabotage of management objectives. Thus McGregor added that managers are often caught in a web of their own making.

Theory Y Assumptions : (1) People are not by nature passive or resistant to organisational needs. They consider work to be as natural as play or rest. (2) People have the motivation, the potential for development, the capacity for assuming responsibility and the readiness to direct behaviour towards organisational goals. (3) So people can be self-directed and creative at work if properly motivated. (4) Average human beings can accept change and cope up with it. If the right environment is provided.

(5) People do have the capacity to exercise high degree of imagination, ingenuity and creativity in the solutions of organisational problems. (6) Under the conditions of modern industrial life, the intellectual potentialities of the average human being are only partially utilised. Thus, we can see that Theory Y is optimistic, dynamic and flexible with an emphasis on selfdirection and the integration of individual needs with organisational demands. This Theory is labelled as epitome of democratic governance.

In organisations we find that managers who accept Theory X assumptions about human nature follow the carrot and stick policies, while managers who believe in Theory Y follow participative behaviour-centered policies. However, there are few points to be considered : (1) In organisations it is found that some people behave like Theory X person under certain circumstances and like Theory Y person under certain other circumstances. So can there be a sharp line of demarcation between the two theories?

(2) Sometimes managers have Theory Y assumptions about human nature but they find it necessary to behave in a very directive, controlling manner with some people in the short run to help them to grow and become Theory Y people. So this also brings forth the fact that Theory X persons can become a Theory Y person and vice versa is also possible. (3) Generally it is found that Theory Y people have a greater potential for being a good manager, especially at higher management jobs. Of course, he does need the required training and experience. It is also found that Theory X person might be more suitable in some crisis situations and less appropriate in more routine and formalised situations. Thus, we can conclude that under some conditions Theory X works best and under other conditions Theory Y works best.

People are active Theory X and they consider (1)Attitudes towards work to be as work natural as play. People hate work and try People can come up to shirk work. with brilliant (2) Creativity ideas if properly People lack creativity and motivated. innovative thinking. People are (3)Responsibility responsible and People avoid taking up accept responsibility, responsibilities for their tasks.

(4) Taking up challenges People prefer to do routine and regular work and do not want take up any kind of challenging tasks. (5) Attitude towards change People are generally averse to changeand do not accept anything that is new

People prefer challenging tasks and want to have a sense of achievement. People are generally flexible and can accept change quite easily.

(6) Supervision People are selfPeople will not work directive and will unless closely work without much supervised. supervision (7)Followers/Leaders People prefer People prefer to be freedom and would followers and they like to take up the want to be guided by lead in many cases. their superiors. (8)Leadership Style Situational style of Autocratic style of leadership is best leadership is best suited to get work suited to get work done. done.

Motivation People can be motivated by catering to the lower level needs like job security, working condition, etc.

People can be motivated by catering to the higher level needs like esteem and self actualisation needs.

Herzberg's Two-Factor Theory


Extrinsic/Hygiene/Maintenance Factors : (1) Company Policy and Administration. (2) Work conditions. (3) Salary. (4) Relationship with peers, supervisors and subordinates. (5) Personal life. (6) Status. (7) Security. (8) Supervision.

These are the factors under which a job is performed. When these factors are absent, it increases dissatisfaction with the job. When present, help in preventing dissatisfaction but does not increase satisfaction or motivation. So they have to be viewed as preventive measures that remove sources of dissatisfaction from the environment. The presence of these factors will not improve motivation just as a person in good health will not become healthier by eating a balanced diet but will deteriorate in health if he does not eat food. Thus, hygiene factors don't increase a worker's output but they prevent loss in performance.

Motivators/Satisfies : (1) Achievement. (2) Recognition. (3) Work Itself. (4) Responsibility. (5) Advancement. (6) Growth. Motivators are associated with the content of the job and they keep job performance and job satisfaction high. When these factors are absent, they prevent both satisfaction and motivation. When present, lead to satisfaction and motivation. If managers want to increase motivation and performance above the average level, they must enrich the work and increase the freedom on the job.

Comparison between Maslow and Herzberg's Models :

Maslow's Theory Herzberg's Theory


(1) In the above diagram the lower level needs of Maslow are the hygiene factors of Herzberg and the higher level needs are the motivators. (2) Maslow formulated the theory in terms of needs and Herzberg in terms of goals or rewards. (3) Herzberg gave a set of Hygienes and Motivators for meeting the lower and the higher level needs without any sequential arrangement. Whereas Maslow talked about moving from the lower level to the higher level in a hierarchical manner.

(4) In Maslow's theory unsatisfied needs energize behaviour and makes them to perform whereas in Herzberg's theory gratified needs cause performance. (5) According to Maslow any unsatisfied need can be a motivator whereas Herzberg stated that only higher order needs serve as motivators. Maslow's Theory takes a general view of the motivational problems of all workers. Whereas Herzberg's theory deals with work-oriented motivational problems of professional workers.

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