Course Content
Definition and importance of management Functions of management Managerial roles Evolution of management thought Types of management environment
Meaning and importance of planning Principles of planning Purpose of planning Types of plans Planning tools Process of planning Planning challenges Making plans effective Management by objectives
Meaning and Importance of Organizing Structure and Designs of Organizations Principles of Organizing Process of Organizing Delegation Coordination Centralization and Decentralization Informal Organizations
Meaning and Importance of Staffing Human Resource Planning Recruitment and Selection Training and Development Performance Management Reward Management Separation
Meaning and Importance of Directing Leadership Motivation Communication Group Dynamics Conflict Management
Meaning and Importance of Controlling Elements of Control Characteristics of Effective Controls Control Process Role of Control in an Organization Tools of Controlling
Overview of Strategic Management SWOT Analysis Strategy Formulation Strategy Implementation Strategy Evaluation
Organization Culture Ethics and Social Responsibility Managing Innovation and Change Diversity and Inclusion Corporate Governance Globalization
Principles and Practices of Management
About Lesson
  • Motivation is a set of forces that inspires a person to use his abilities to achieve a goal. It is something that propels and sustains action. In short Motivation is what drives people or to start, stop, or change their behavior.
Nature of Motivation
  1. Motivation is a psychological concept:  It is concerned with the intrinsic forces operating within an individual which impel him to act or not to act in a particular way.
  2. Motivation is a dynamic and continuous process: As it deals with human beings which an ever-changing entity is modifying itself every moment.  Human needs are unlimited and go on changing continuously.
  3. Motivation is a complex and difficult function: In order to motivate people a manager must understand and satisfy multiplicity of human needs.  But needs are mental feelings which cannot be described and measured accurately.  They are vague and have to be deduced from external behavior of human beings
  4. Motivation is different from satisfaction: Motivation is the process of stimulating an individual or a group to take desired action.  On the other hand, satisfaction implies contentment arising from the satisfaction of a need.  In other words, motivation is the drive towards an outcome whereas satisfaction refers to the outcome experienced by a person.
  5. Motivation can be positive or negative: Positive motivation includes enjoyable goals and rewards. Working extra hours to earn money for a family vacation is an example of positive motivation. Negative motivation occurs when you do something out of fear or desire to avoid a certain outcome
  6. Motivation is goal-oriented: Setting goals is essential to motivation. Setting a clear and powerful goal will boost motivation. This goal can be anything you value. You must also believe that you can achieve this goal.
Significance of Motivation
  1.  High Performance: Motivated employees will work hard to achieve company goals. Unlimited physical and mental resources are used to their fullest. Higher productivity comes from better performance. Productivity increases can also reduce production costs. Employees should be rewarded more for improved performance. Employees’ performance will be boosted by motivation.
  2. Low employ turnover and absenteeism: When employees are dissatisfied with their jobs, they will leave whenever a better offer comes along. Employee dissatisfaction increases absenteeism. The organization pays a high price for new employee training. Employees who are happy with their jobs and are motivated by financial and non-financial incentives will not leave. They will also try to increase output, so absenteeism will be low.
  3. Better organizational image: The companies that provide better monetary and non-monetary benefits to their employees have a better image. These concerns attract better qualified and experienced people. Employees will want to join such companies because of the better manpower development program. Efforts to motivate will also help personnel.
  4. Better labor relations: A good motivational system will make employees happy. The job will provide better service conditions and other benefits. Employers and employees will feel secure. There will be no reason for conflict, and both sides will be happy. So employee motivation leads to better industrial relations.
  5. Acceptability to change: The changing social and industrial situations will necessitate changes and improvements in enterprise working. New and better work methods will need to be introduced periodically. Employees generally resist change for fear of losing their jobs. Employees can easily adapt to new situations if given multiple opportunities for growth.

Types of motivation

Motivation is classified as follows:

1. Positive or negative motivation

Positive motivation is the process of influencing employee behavior by recognizing and appreciating their efforts and contributions towards the organization’s goal. Positive motivators include taking an interest in subordinates’ well-being, recognizing and rewarding hard work, and delegating authority and responsibility. Negative motivation would mean Fear of demotion, layoff, etc. Fear of punishment influences change behavior. While punishment has helped control misbehavior and improve performance, it can also lead to poor performance and lower productivity.

2. Extrinsic vs. intrinsic motivation

Extrinsic: It comes from outside the job. They are thus linked to financial incentives such as Wages, fringe benefits, medical reimbursement, etc. Intrinsic: This type of motivation occurs at work and provides satisfaction. Recognition, status, authority, and participation are intrinsic motivators.

3. Financial or non financial motivation

Money-related motivation: It includes wages, bonuses, and retirement benefits. Non-monetary Motivation: This type of motivation is not monetary. Intangibles like ego satisfaction, self-actualization, and accountability

Features of a sound Motivational System

A sound motivational system must satisfy the following conditions.

  1. Productive: The system must induce employees to work efficiently. It should result in a positive increase in the productivity of labor.
  2. Competitive: The benefits of the system should be worth its costs. Comparable inputs should yield comparable profits. Motivation is not an end but a means.  The system should therefore, be discarded whenever it cannot yield gains in excess of its cost.
  3. Comprehensive: A sound motivational system must provide for the satisfaction of all types of need-physiological as well as psychological needs. It should cover employees at all levels of the organization.
  4. Flexible: An effective system must be flexible in time and with respect to individuals. It should be capable of being adjusted easily to changes in environment and knowledge. The incentives should be designed and applied according to individual differences.
  5. Financial and non financial: The system should include both monetary and non-monetary rewards.
  6. The rewards should be based on performance: Performance should be based on employee action toward goals, not employee fame.
  7. Participatory management is required: All employees and subordinates should be involved in decision-making.
  8. Simple: The motivational system should be simple enough for workers to understand.
Motivational Process

The various steps in the process of motivation are described below:

  • Awareness of Needs:Needs or motives of a person are the starting point in the motivational process.  Motives are directed towards the realization of certain goals which in turn determine the behavior of individuals.  This behavior leads to goal-directed behavior.  In other words awareness of unsatisfied needs create tension in the mind of a person
  • Search for Action:In order to relieve his tension and to satisfy his needs, the individual looks for a suitable action.  He develops certain goals and makes an attempt to achieve them.
  • Fulfillment of Need:In case the individual is successful in his attempt, his need is satisfied and he feels motivated.  If the attempt is unsuccessful, the need remains unsatisfied and the individual engages himself in search for a new action.  He will engage himself in constructive or defensive behavior.
  • Discovery of new Need:Once one need is fulfilled, some other needs will emerge and the individual will set a new goal.  This process continues to work within an individual because human needs are unlimited.

Morale is the level of enthusiasm and willingness with which members of a group approach their tasks. According to Leighton, morale is the ability of a group to work together persistently toward a common goal

Consequences of Low morale
  1. High rate of absenteeism
  2. High rate of labor turnover
  3. Excessive complaints and grievances
  4. Frustration and friction among employees
  5. Antagonism towards the organization and its management
  6. Resistance to change
  7. Poor performance Bad management and team communication
  8. Increased employee conflicts or fighting amongst staff
  9. Poor work quality
Factors Affecting Morale

The attitudes of people are formed by the conditions under which they live and work.  The main factors which determine the morale of individuals and groups in an industrial enterprise are given below:

  1. Clarity and value of shared goals
  2. Supervision type
  3. Group composition
  4. Authority responsibility relations
  5. Compensation
  6. Work nature
  7. Working conditions
  8. Advancement and education
Problems in motivation
  1. Implementation-People differ in their expectations hence they require separate types of incentives to be motivated.
  2. Elements-the motivator and the motivated including the motivating technique are the circumstances surrounding the element making coordination very important.
  3. Moderate motivators-if a moderate scale is used, subordinates will be motivated to a limited extend.
  4. Uneven motivators-all individuals will/do not posses equal education, work attitudes and levels of inspiration and so methods of motivation will differ.
  5. Employee’s limitation-employees have varied backgrounds, perception, loyalty and dedication must be considered when motivating.
Theories of motivation

It is critical that an organization’s team is motivated. Psychologists have studied human behavior and formalized its findings in numerous motivation theories. These theories help us understand how people behave and what motivates them.
There are many motivation theories. Among the most famous motivation theories are:

1. Maslows hierarchy of needs

Abraham Maslow proposed that people are motivated when their needs are met. The need progresses upwards as each lower-level need is met. Here is the need hierarchy:

  • Physiological: Food, water, and shelter.
  • Safety: Threats, deprivation, and other dangers are protected
  • Social needs.Need for an association, affiliation, friendship, etc.
  • Self-esteem: Need for respect and recognition.
  • Self-actualization: Possibility of personal growth, learning, and challenging work. Self-actualization is the highest human need.

2. Hertzberg’s  two factor theory

He proposed two factors which seem vital for performance purposes in an organisational,,these are:-

  • Hygiene factors
  • Motivational factors

Hygiene factors- Hygiene factors are essential job factors for workplace motivation. These do not lead to long-term satisfaction. However, if these factors are missing from the workplace, it leads to dissatisfaction. In other words, when adequate/reasonable in a job, hygiene factors pacify and do not dissatisfy employees. These are extrinsic factors. Dissatisfiers or maintenance factors are factors that prevent dissatisfaction. These elements describe the work environment. The hygiene factors represented the individuals’ physiological needs that they desired to be met.To avoid employee dissatisfaction, hygiene factors are required.

Motivation factors- According to Hertzberg, hygiene factors are not motivators. This is a positive outcome. Work entails these elements. These factors inspire employees to perform better. These are satisfiers. These are aspects of the job. These elements motivate employees. The motivators represented the perceived psychological needs.Employee satisfaction and motivation for higher performance require motivation factors. The presence of hygiene factors does not guarantee motivation, and vice versa.

3. McClelland’s theory of needs.

McClelland says we all have three motivating drivers, regardless of gender or age. The dominant drive will determine our actions. Our dominant drive is shaped by our lives. The three drivers include:-

  1. Achievement: A need to accomplish and show competence Achievers prefer tasks that require personal responsibility and results from their own efforts. They also want quick feedback on their progress.
  2. Affiliation: A need for love, belonging, and social acceptance Affiliation motivates people who need to be liked and accepted. They like to socialize and avoid conflict.
  3. Power: A need to control one’s own or others’ work Power-hungry people crave situations where they can exert power and influence over others. They aspire to positions of power and prestige, and they value influence over productivity.
4. Douglas McGregor theory X and Y

Douglas McGregor developed two distinct human views based on worker participation. The first, labeled Theory X, is negative, while the second, labeled Theory Y, is positive. Both exist. Their nature dictates how they should be managed.

Theory X: The traditional view of workers is that they are lazy, self-absorbed, and lack ambition.

Theory X  assumes that people;

  1. Dislike work and will avoid if they potential can,
  2. need to be controlled and or threaten before they will actually work hard,
  3. Don’t want any responsibility for tasking and would rather be directed,
  4. They want to feel secure.
  5. So strong top-down control is appropriate management style.

Theory Y: Workers are intrinsically motivated and eager to take responsibility. Creating a productive work environment with positive rewards and reinforcement

Theory Y assumes that;

  1. Employees want to actually work
  2. Can organise their work and head for organisational objectives,
  3. Will get committed because their needs re being met,
  4. Accepts responsibilities and actively seeks feedback,
  5. Can work autonomously to solve workplace issues.
5. Victor Vrooms Expectancy Theory

Expectancy Theory explains why people choose one behavior over another. This theory states that people act because they believe their actions will lead to the desired outcome (Redmond, 2009). Work motivation is based on the perceived link between performance and outcomes, and people change their behavior based on their calculations of expected outcomes (Chen & Fang, 2008).

In other words, it can help explain a person’s performance. This has the potential to improve motivation because it can and has helped leaders create workplace motivational programs. This theory states that people are motivated by the expectation of receiving a reward.

“While the theory does not cover all individual motivation factors, it gives leaders a starting point to better understand how to motivate subordinates” (AETC, 2008). Expectancy theory is a process theory of motivation because it emphasizes personal perceptions of the environment and subsequent interactions.

6.  Porter and Lawler’s Expectancy Theory

Indeed, Porter and Lawler’s theory outperforms Vroom’s expectancy theory. It suggests that motivation does not necessarily lead to satisfaction or performance. Their model challenges some of the traditional simplistic assumptions about the positive relationship between satisfaction and performance. In order to explain the complex relationship between satisfaction and performance, they proposed a multi-variate model.

According to Porter and Lawler’s model, effort or motivation does not directly lead to performance rather it can be supported by ability trait and role perceptions. Ultimately, performance leads to satisfaction. This model has three main components:-

Effort: Effort is the amount of energy expended on a task. Two factors determine an employee’s effort level:-

  • Reward value
  • Probability of effort-reward.

Performance: Performance is the result of effort. Both may be equal. However, performance is determined by the employee’s ability and role perception. So, even if an employee puts in a lot of effort, his/her performance may be low due to lack of ability or incorrect role perception.

Satisfaction: Performance brings happiness. The level of satisfaction is determined by the rewards received. The employee will be satisfied if actual rewards equal or exceed perceived equitable rewards or can be suppressed if actual rewards fall short of expectations.

Intrinsic and extrinsic rewards are both possible. Intrinsic rewards include accomplishment and self-actualization. Extrinsic rewards include working conditions and social status. According to research, intrinsic rewards are much more likely to produce performance-related satisfaction attitudes.

NB: In simple words The Porter and Lawler theory of motivation is based on the assumption that rewards cause satisfaction and that sometimes performance produces reward. They hypothesize that the relationship between satisfaction and performance is linked by another variable rewards. They see good- performance leading to reward which lead to satisfaction. It is a multi-variable model and explains the complex of relationship among motivation, performance and satisfaction.

7. Argyris’s Theory

Based on how management practices affect individual behavior and growth, Chris Argyris (born July 16, 1923) has developed his motivations theory. In his opinion, a person’s personality changes seven times before they become fully mature. To put it differently, a person’s personality matures from immaturity to maturity as shown in the diagram below:

Argyris believes that organizational and management practices such as task specialization, chain of command, unity of direction, and span of management contribute to individual immaturity and inexperience. Humanistic systems are more flexible and participative than existing pyramidal organizational structures, he proposes. As such, he claims, they’ll be more motivated to use their full potential in achieving organizational goals.

8. Urwick’s Theory Z

Following McGregor’s theories X and Y, Urwick, Rangnekar, and Ouchi proposed a third theory labeled  Theory Z.

Urwicks’ theory states that:

  •  Each individual should know the organization’s goals and the amount of effort required to achieve them.
  • Each individual should also know that the realization of organizational goals is going to satisfy his/her needs positively.

According to Urwick, these two prepare people to act positively toward both organizational and personal goals.

However, management practitioners and researchers alike have been drawn to Ouchi’s Theory Z which is based on four tenets:

  • Bond between employer and employees
  • Employee Engagement
  • No formal structure
  • Human Resource Development
9. ERG Theory of Motivation

Alderfer’s ERG Theory extends Maslow’s Needs Hierarchy, categorizing Maslow’s five needs into three categories: Existence, Relatedness, and Growth. Individuals’ priorities for these needs may vary, as may their relative importance over time. Alderfer’s model says these three needs motivate us all. Existence, or physical and psychological survival, is the most concrete and motivating of Alderfer’s three needs. The next level is the need for relatedness, community, and self-respect. Growth is the least concrete, but most important, of Alderfer’s needs in the ERG model.

The theory states that people can be motivated by the  multiple levels of need at the same time, and their priority changes over time. In other words, an individual’s priorities and motivations may shift over time between existence, relatedness, and growth. They can move up or down.

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