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Topic 8:




Chapter 16 in Text Book

Pages: 440 - 467


Key topics in this chapter :


        What is Motivation

        What is a Need

        Motivation Cycle

        Characteristics of Motivated Behaviour

        Theories of Motivation

        Effective Use of Motivation



What is Motivation


Ever since the beginning of time man has been trying to find newer and better ways of organizing things. This need for organizing things and even people arises due to the benefits that simplicity and systematization creates in the environment in which people exist. Such organizing efforts can  also be seen in business organisations which continuously strive to achieve their goals and objectives through an effective management. Inorder to get things done through other people they have to be encouraged first. This encouragement, in other words, is known as Motivation.


The term "motivation" has been derived from the Latin word "movere" which means "to move". Motivation is a force which initiates behaviour, directs it and then leads to it's termination. It is a drive that directs a person's behavior towards the goals. Motivation arises when people's needs are raised to a certain level of intensity.

What is a Need


 A need involves an organism wanting something. This goal can be an object from the environment or an inner condition of satisfaction. Thus needs can be :


        Biogenic (arising from physiological state. E.g. : hunger, thirst, air etc. ) or

        Psychogenic (arising from psychological state. E.g.: needs of esteem, association etc )


 In the same manner the motivation that encourages a person to satisfy his needs may be


        Intrinsic (experienced or felt directly /internally by the individual) or

        Extrinsic (provided by an outside agent, such as a supervisor).


Thus a need can be defined as a generalized condition of desire or want which results in individual identifying a particular goal and directing his activities towards it's fulfillment. Needs are a complex concept of human behaviour. Different people have different needs and the strength of their common needs may also differ. These needs then motivate people in different manners.


Motivation Cycle



The motivational cycle begins when a need is felt and the person is motivated to perform a behavior which is instrumental (helpful) in reaching the goal that he desires. After reaching the goal he experiences relief as the need is satisfied. The cycle starts again when the same or a new need is felt. E.g. Need for water. This process continues throughout our life and needs that remain unsatisfied continue to motivate a person until it gets satisfied or some other need replaces it.


Characteristics of Motivated Behaviour


        The motivated person becomes more active and seeks the goal vigorously

        The motivated person becomes more focused on the goal or it's activity

        Stronger motivation leads to more persistent behaviour

        The motivated person tried creative approaches to achieve the desired goal.


Theories of Motivation


Early Views:


There are a number of theories that explain the various needs that motivate people. These also help understand what could managers do to motivate their staff.


F.W. Taylor in his ideas on scientific management proposed that employee's work should be divided and subdivided and this will help them become more efficient. By being more productive they could get more pay and that would be strong enough to motivate them to work better. Thus he highlighted people's needs for money.


Example: Owner Don Miller of the $50+ million Roppe Corporation wanted to encourage his workers to do better than their average of 75 % of quotas. So, he offered a novel incentive. On any day you hit a new quota, 10 % higher than the old, he would pay 10 percent more and let them go home early. Productivity in the plant increased and Miller has since negotiated new quotas as more efficient technologies are installed.


Elton Mayo based his principles on the idea that 'man is a social animal'. He highlighted the fact that everyone has a need to be a part of a group, to be associated with others and to live and work in an interactive social environment. Thus to motivate employees they should be made to feel useful and important.


McGregor suggested two theories of motivation. According to Theory X people are naturally lazy and dislike work and inorder to make them work properly they need to be forced or 'pushed'. On the other hand Theory Y assumes that employees are hard working, creative and are committed to reaching their goals. It is only that the manager should create favorable working conditions and 'pull' them towards their job. McGregor's theory highlights the needs of people to be given clear orders or instructions, their needs to be led by someone else.


Theory X (Push)           : "Work is a necessary evil "

Theory Y (Pull) : "Work is a blessing which people seek"          



Theory X Assumptions :


        The average employee dislikes work and will try to avoid it.

        Most people need to be coerced , controlled, directed, and threatened with punishment to get them to work towards organizational goals.

        The average employee wants to be directed, shuns responsibility, has little ambition, and seeks security above all.


Theory Y Assumptions:


        Most people do not inherently dislike work, the physical and mental effort involved is as natural as play or rest.

        People will exercise self-direction and self-control to reach goals to which they are committed; external control and threat of punishment are not the only means of ensuring effort towards goals.

        Commitment to goals is a function of the rewards available, particularly rewards that satisfy esteem and self- actualization needs.

        When conditions are favourable, the average person learns not only to accept but also to seek responsibility.

        Many people have the capacity to exercise a high degree of creativity and innovation in solving organizational problems.

        The intellectual potential of most individuals is only partially utilized in most organizations.


Modern Views:


Freud suggested that people's personality characteristics also shape their motivation. He highlighted the fact that people's 'real' needs may be largely hidden and it is these hidden needs that determines a person's motivation.


Abraham Maslow suggested a 5 level hierarchy of needs. People first try to satisfy their basic needs and having satisfied those needs they then move on the next higher level of need. Once a need is satisfied it is no longer powerful enough to motivate a person.



Clayton Alderfer's  ERG Theory: Unlike Maslow, Alderfer broke down needs into just three categories:


"E"xistence needs: physiological needs like food, clothing, shelter, air, water

"R"elatedness needs: needs for interpersonal relations as a member of work groups and in society

"G"rowth needs: needs for personal creativity and the utilization of one's fullest potential. 


Alderfer suggested that when higher needs are frustrated, people return back to the lower needs. For example, when people's needs for growth are not satisfied and the organisation is thinking laying-off employees, then the employees become more concerned about the safety and security of their job or even their very existence


John W. Atkinson in his Three Need Theory proposed that people are motivated by 3 basic needs:


Need for achievement :  the need to have adequate responsibility and to be able to achieve something worthwhile

Need for affiliation: the need to be accepted by others and to have friends and interaction with others.

Need for power: the need to be able to compete with others and to influence others. Various forms of power.


Herzberg's Two Factor Theory. According to this theory there are certain Hygiene factors like company policy, working conditions etc which do not motivate people but can make people feel dissatisfied if these are not adequate. While the Motivators, such as recognition in work, responsibility and advancement opportunities make the job both satisfying and motivating for most people.


Job Dissatisfaction


Influenced by job context or hygiene factors


         Working conditions

         Interpersonal relations

         Organizational policies

         Quality of supervision

        Base wage or salary


 Rule: Poor job context increases dissatisfaction



Job Satisfaction


Influenced by job content or motivator factors


         Sense of achievement

         Feelings of recognition

         Sense of responsibility

         Feelings of personal growth

         Opportunity for advancement


Rule: Good job content increases satisfaction


Herzberg's two-factor theory


Equity Theory compares people's perception about the equality of their efforts (inputs) with that of the rewards (outputs) that they receive. People need to feel that they are being properly rewarded. Such comparisons arise between a person's effort and rewards and also between different people working in the same organisation or in different organisations. Only an adequate or overcompensation can motivate a person as his needs of equality are satisfied.


Input > Reward    Dissatisfied     :-(


Input = Reward    Satisfied         :-|


Input < Reward    Delighted        :-)        



B.F. Skinner's Reinforcement Theory. According to this theory people's future behaviour can be modified depending on the responses and the consequences that he receives for a particular behaviour done in the present. A positive behavior can be encouraged through positive reinforcement and a negative behavior can be discouraged or stopped through negative reinforcements or even punishments. For example, motivating a person to do better in the future by praising him or by promoting him and discouraging his late arrivals at work by suspending him for a week.


            Stimulus               Response             Consequence           Future Response


Managers may use this theory in the following four ways:


1.      Positive reinforcement: the use of positive consequences to encourage desirable behaviour . E.g. salary raise or praise.

2.      Avoidance Learning (Negative reinforcement): learning that occurs when individuals change behaviour to avoid or escape unpleasant circumstances like criticism

3.      Extinction: the absence of reinforcement for undesirable behaviour so that the behaviour eventually stops recurring. Example: a manager who observes that a disruptive employee is receiving social approval from coworkers may counsel the coworkers to stop giving this approval.

4.      Punishments: the application of negative consequences to stop or correct improper behaviour E.g. fines for late entry, dismissals etc.


Earley and Shalley's Goal Setting Theory


Establish a standard


Can standard be achieved


Does standard match personal goals


Standard is accepted, goal is set, employees work towards achieving the goal.



Example: Workers at Rocky Shoes and Boots in Ohio know the goals. A goal clock prominently displays actual performance versus the daily goal for the factory's production of shoes and boots. With new modular technologies and a focus on teams, plant efficiency and profitability has continuously increased.


Effective Use of Motivation


Thus we can see that there are various needs that explain the reason and the intensity of people's motivation. It should be the duty of the managers to ensure that these diverse needs are identified and that they are satisfied through the use of various motivation techniques. Inorder to motivate their employees management should first of all recognize their individual differences, match them to the right jobs, set various targets and goals, ensure that employees perceive the goals as attainable, devise various rewards plans which link their performance with the rewards in an equitable manner reward them for their superior performances.


In the modern materialistic world, businesses should ensure that their employees are handsomely rewarded to keep them motivated. Various compensation programs such as Pay for Performance, Incentive Compensation Schemes (bonus pay, profit-sharing, gain sharing, employee stock ownership programs) etc may be implemented to motivate employees monetarily.


Example: There is a concern for example that the pay of CEOs isn't adequately linked to performance. Apple Computers, for example, reportedly lost $2 billion during Gilbert Amelio's 17 month tenure as CEO. When he was ousted by the board he took away $2 million in salary and bonus for a year plus a $6.7 million severance package.


At the same time, however, it should be realized that there are a range of other needs that can motivate people and these should be considered by management too. These may involve various factors about the job itself such as the job design, job simplification, job rotation, job enlargement, job enrichment etc. Only the successful identification and satisfaction of all needs can ensure that employees are motivated towards the continued growth and success of the organisation.


Example: Marriott Hotels's customer service associates program redefined the job of a doorman into that of a "guest service associate" This new role was described by one worker as "a bellman, a doorman, a front desk clerk all rolled into one. I have more responsibilities. I feel better about my job, and the guests get better service". The new job's multiple tasks all focus on a common result- quality customer service.


Today companies have traditional and not so traditional ways to motivate and reward employees.


Example: At Hewlett Packard an employee came to his manager with the solution to a problem that a group had struggled with for weeks. The manager fumbled around in his desk for something to give as a "reward" and finally handed him a banana from his lunch, exclaiming, "Well done!". Now the Golden Banana Award has become one of the company's most prestigious honors for inventiveness.


At Lionel Trains Inc., a marching band came into the plant and led the way to a party for exceptional employees.


Mobil, Toyota and Nabisco send outstanding employees on a "shopping spree" in which they have to fill a warehouse cart.


At Silicon Graphics, employees can receive "spirit" awards for things like "encouraging creativity" and "seeking solutions rather than blame". Fifty awards  are given annually. Winners get trips to Hawaii for two and a year long appointment to the management advisory group.


IBM, Monsanto and Nikon give outstanding employees Star Certificates which declare their ownership of an actual star with a sky chart and verification recordnow thats some way to reward your "star" performers!



Test Your Knowledge



&   _____________ is a force which initiates behaviour, directs it and then leads to it's termination.

&   Motivation does not go into a person's performance (True or False)

&   Needs may be _______ or _____________.

&   An _________reward is felt directly by an individual.

&   A __________reward is provided by some outside agent, such as a supervisor.

&   Behaviour that helps in reaching the desired goal is called ___________ behaviour.

&   After a person reaches a goal he experiences satisfaction (True or False)

&   Elton Mayo highlighted people's _______ needs.

&   "Motivate through money". This was an idea primarily suggested by ________ in his ____________theory. 

&   The theory that explains the job satisfaction/dissatisfaction arising from two different sets of factors is the ____________theory

&   The theory of motivation which states that people are motivated to meet needs as arranged in a hierarchy. (Name the theory)

&   The Equity theory explains the relationship between ________ and _________.

&   The top most level of need as highlighted in the need hierarchy is  _______________.

&   Clayton Alderfer broke down needs into three categories namely _______, _________ and ___________.

&   Theory _____ assumes that people are inherently motivated to work.

&   Punishment is the application of negative consequences to stop or correct improper behaviour (True or False)

&   Motivation techniques may be ___________ or ____________

&   Managers can utilize motivation to arrange job relationships in an organisation (True or False).




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