LALA LAJPATRAI INSTITUTE OF MANAGEMENT

SUB: HIGH PERFORMANCE

LEADERSHIP

TOPIC: MOTIVATION AND ITS THEORIES

Submitted to: Dr. Arati kale

By: Henston danty

Roll no: 31

Class: MMS-1 DIV-A

Batch: 2013-2015

Motivation

MEANING:

Motivation is derived from the Latin word „movere‟ which means „to move‟ or „to energize‟ or

„to activate‟. Therefore we can say that Motivation is a state of mind, desire, energy or interest

that translates into action.

DEFINITION:

“The processes that account for an individual‟s intensity, direction and persistence of effort

toward attaining a goal.”

KEY ELEMENTS

1. Intensity: how hard a person tries

2. Direction: toward beneficial goal

3. Persistence: how long a person tries

Intensity : It is concerned with how hard a person tries. This is the element

most of us focus on when we talk about motivation.

Direction : Is the orientation that benefits the organization.

Persistence : Is a measure of how long a person can maintain his/her effort.

Motivated individuals stay with a task long enough to achieve their goal.

MOTIVATION PROCESS:

THEORIES OF MOTIVATION

Need based theories:

Need theories considers that individual needs are significant to the process

of motivation.

Cognitive or process based theories:

Cognitive or process based theories are concerned with, how individual behaviour is

energised, directed and maintained in self-directed human cognitive process

NEED THEORIES:

• Maslow’s theory of Need Hierarchy.

• Alderfer’s ERG Theory

• Theory X & theory Y

• McClelland’s Theory

• Hezberg’s two factor theory

COGNITIVE THEORIES:

• Equity Theory

• Vroom’s Expectancy Theory

• Cognitive Evaluation Theory

• Reinforcement Theory

• Self Efficacy Theory

• Goal Setting Theory

NEED THEORIES

1. MASLOW’S THEORY OF NEED HIERARCHY

One of the best-known theory of motivation is Abraham Maslow‟s hierarchy of

needs .According to Maslow , within every human being, there exists a hierarchy

of five needs. they are differentiated in various levels they are:

Physiological: It includes hunger, thirst, shelter, sex, and other bodily needs.

Safety: Security and protection from physical and emotional harm.

Social: It Includes affection, belongingness, acceptance, and friendship.

Esteem: It Includes Internal factors such as self-respect, autonomy, and

achievement and external factors such as status, recognition, and attention.

Self-actualization: It is a drive to become what we are capable of becoming,

it includes growth, achieving our potential, and self-fulfillment.

Basic Assumptions for Maslow’s Theory

Once a need is satisfied, its role declines

Needs are complex, multiple needs acting simultaneously.

Lower level needs must be satiated before higher level needs are activated.

More ways exist to satisfy higher level needs.

Maslow classified the five needs into higher and lower orders. Physiological

and safety needs, where the theory says people start, were lower-order

needs , and social, esteem, and self-actualization were higher-order needs.

Higher-order needs are satisfied internally (within the person), whereas

lower-order needs are predominantly satisfied externally (by things such as

pay, union contracts, and tenure).

Maslow‟s theory has received wide recognition, particularly among practicing

managers. It is logical and easy to understand. Many researchers have attempted to

revive this theory but till now they not come up with it. This theory helps to

identify what are factors that motivate a manager to achieve their needs.

2. ALDERFER’S ERG THEORY

“A three-level hierarchical need theory of motivation that allows for movement up

and down the hierarchy.” A theory of human motivationthat focuses on three

groups of needs that form a hierarchy:

Existence Needs

Relatedness Needs

Growth Needs

The theory suggests that these needs change their position in the hierarchy as

circumstances change.

According to this theory an individual has three basic needs, these needs

correspond to Maslow‟s theory, and models of this theory differ from how they are

satisfied. All these needs operate at one time.

1. Existence Needs

This group of needs is concerned with providing the basic requirements

for material existence, such as physiological and safety needs.

In a work context this need is satisfied by money earned in a job for the

purchase of food, shelter, clothing, etc.

2. Relatedness Needs

This group of needs focuses on the desire to establish and maintain

interpersonal relationships with family, friends, co-workers and

employers.

Interact with other people, receive public recognition, and feel secure

around people.

The amount of time most people spend at work this need is normally

satisfied to some extent by their relationships with colleagues and

managers.

3. Growth Needs

These needs are about the fulfilment of desires to be creative, productive

and to complete meaningful tasks.

These needs are all about by personal development. In a work context a

person's job, career, or profession can provide a significant satisfaction of

growth needs.

Clayton Alderfer extended and simplified Maslow's Hierarchy into a shorter

set of three needs: Existence, Relatedness and Growth (hence 'ERG'). Unlike

Maslow, he did not see these as being a hierarchy, but being more of a

continuum.

3. THEORY X & THEORY Y

Douglas McGregor proposed two distinct views of human beings:

1. Basically negative, labeled Theory X,

2. Basically positive, labeled Theory Y.

Theory X Management view that assumes workers generally dislike work and must be

forced to do their jobs.

Employees inherently dislike work and, whenever possible, will attempt

to avoid it.

Since employees dislike work, they must be forced, controlled, or

threatened with punishment to achieve goals.

Employee will avoid responsibilities and seek formal direction whenever

possible.

Theory Y

Management view that assumes workers like to work and under proper

conditions, employees will seek responsibility to satisfy social, esteem, and

self-actualization needs.

Under Theory Y- assumptions held by managers are:

Employees can view work as being as natural as rest or play.

People will exercise self-direction and self-control if they are committed

to the objectives.

The average person can learn to accept, even seek, responsibility.

The ability to make innovative decisions is widely spread throughout the

population and is not necessarily the sole responsibility of those in

management positions.

4. McCLELLAND’S THEORY

The McClelland‟s theory of needs was developed by David McClelland

and his associates. This theory lays importance on three needs.

1. Need for Achievement. (nAch)

The desire to do something better or more efficiently, to solve

problems, or to master complex tasks.

High need for achievement:

Prefer individual responsibilities.

Prefer challenging goals.

Prefer performance feedback.

2. Need For Affiliation. (nAff)

The desire to establish and maintain friendly and warm relations

with others.

High need for affiliation :

Are drawn to interpersonal relationships.

Seek opportunities for.

3. Need For Power (nPow)

The desire to control others, to influence their behavior, or to be

responsible for others.

Personalized Power: Need of controlling others

Socialized Power: 1. Need to make an impact on others

2. Use power to do something for others.

High need for power :

Seek influence over others.

Like attention.

Like recognition.

5. HEZBERG’S TWO FACTOR THEORY

This theory is dived into 2 factors namely:

Hygiene factors.

Motivation factors

Motivation factors increase job satisfaction

Hygiene factors avoid job dissatisfaction

Hygiene Factors

Salary

Working Conditions

Company policy

Supervision

Work group

Motivating factors

Advancement

Development

Responsibility

Recognition

Achievement

Work itself

The two-factor theory has not been well supported in the literature, and it has many

detractors. Criticisms include the following:

1. Herzberg‟s methodology is limited because it relies on self-reports. When things

are going well, people tend to take credit. Contrarily, they blame failure on the

extrinsic environment.

2. The reliability of Herzberg‟s methodology is questionable. Raters have to make

interpretations, so they may contaminate the findings by interpret ting one response

in one manner while treating a similar response differently.

3. No overall measure of satisfaction was utilized. A person may dislike part ofa

job yet still think the job is acceptable overall.

4. Herzberg assumed a relationship between satisfaction and productivity, but he

looked only at satisfaction. To make his research relevant, we must assume a

strong relationship between satisfaction and productivity. Regardless of the

criticisms, Herzberg‟s theory has been widely read, and few managers are

unfamiliar with its recommendations.

COGNITIVE THEORIES

1. ADAM’S EQUITY THEORY

This law states that Individuals compare their job inputs and outcomes with

those of others and then respond to eliminate any inequities.

According to this theory,If an employee believes his treatment is inequitable,

compared to others, he or she will be motivated to do something about it --

that is, seek justice.

Model of Equity Theory

Equity Theory - Exchange Scenarios

• Case 1: Equity -- pay allocation is perceived to be to be fair - motivation is

sustained

• Case 2: Inequity -- Underpayment. Employee is motivated to seek justice.

Work motivation is disrupted.

Case 3: Inequity - Overpayment. Could be problem. Inefficient. In other

cultures employees lose face.

Equity Theory Applications

• Develop tools to pay people in proportion to their contributions

• Let employees know who their pay referents are in the pay system: identify

pay competitors and internal pay comparators.

• Strive for consistent pay allocations

• Monitor internal pay structure and position in the labor market for

consistency.

Consequences of Inequity

• The employee is motivated to have an equitable exchange with the

employer.

• To reduce inequity, employee may…

Reduce inputs (reduce effort)

Try to influence manager to increase outcomes (complain, file

grievance, etc.)

Try to influence co-workers‟ inputs (criticize others outcomes or

inputs)

Withdraw emotionally - or physically (engage in absenteeism,

tardiness, or quit)

2. VROOM’S EXPECTANCY THEORY

One of the most widely accepted explanations of motivation is Victor

Vroom‟s expectancy theory.

A process theory that states that motivation is determined by the outcomes

that people expect to occur as a result of their actions on the job.

1. Effort-performance relationship. The probability perceived by the individual

that exerting a given amount of effort will lead to performance.

2. Performance-reward relationship. The degree to which the individual

believes performing at a particular level will lead to the attainment of a

desired outcome.

3. Rewards–personal goals relationship. The degree to which organizational

rewards satisfy an individual‟s personal goals or needs and the attractiveness

of those potential rewards for the individual.

Expectancy theory helps explain why a lot of workers aren‟t motivated on

their jobs and do only the minimum necessary to get by.

People will be motivated to perform in those work activities that they find

attractive and that they feel they can accomplish.

3. GOAL-SETTING THEORY (EDWIN LOCKE)

In 1960‟s, Edwin Locke put forward the Goal-setting theory of motivation.

This theory states that goal setting is essentially linked to task performance.

It states that specific and challenging goals along with appropriate feedback

contribute to higher and better task performance.

In simple words, goals indicate and give direction to an employee about what

needs to be done and how much efforts are required to be put in.

The willingness to work towards attainment of goal is main source of job

motivation. Clear, particular and difficult goals are greater motivating factors

than easy, general and vague goals.

Specific and clear goals lead to greater output and better performance.

Unambiguous, measurable and clear goals accompanied by a deadline for

completion avoids misunderstanding.

Goals should be realistic and challenging. This gives an individual a feeling

of pride and triumph when he attains them, and sets him up for attainment of

next goal.

Better and appropriate feedback of results directs the employee behavior and

contributes to higher performance than absence of feedback. It helps

employees to work with more involvement and leads to greater job

satisfaction.

Employees‟ participation in goal is not always desirable.

Participation of setting goal, however, makes goal more acceptable and leads

to more involvement.

Managerial Implications of Goal Setting Theory

Set specific and challenging goals.

Provide ongoing feedback so that individuals can compare their performance

with the goal.

4. SELF- EFFICACY THEORY

Also called a social cognitive theory or Social learning theory.

“An individual‟s belief that he or she is capable of performing a task.

Individuals with high self efficacy increase their efforts after receiving

negative feedback.

Individuals with low self efficacy decrease their efforts after receiving

negative feedback.

5. REINFORCEMENT THEORY

It is a combination of rewards and punishments is used to reinforce desired

behavior or extinguish unwanted behavior.

Two types of Reinforcements:

1. Positive

Behavior that results in a pleasant outcome is likely to be repeated,

while behavior that results in an unpleasant outcome is not likely to be

repeated.

Positive reinforcement result when desired behaviour (Performance)

followed by valued Consequences (Reward).

2. Negative

The withdrawal of negative consequences to increase the likelihood

of repeating the desired behavior in similar settings.

Negative reinforcement results when an undesirable behavioural

consequence is suspended being repeated

6. COGNITIVE EVALUATION THEORY

Classifies persons as intrinsically motivated or extrinsically motivated.

“Each individual evaluates situation & responds to it accordingly to his frame of

reference.”

Intrinsically motivated people are getting motivated by intrinsic motivators like

nature of job, responsibility, competition, actual performance etc.

Extrinsically motivated people are dependent on extrinsic motivators such as pay

promotion, feedback, working conditions etc.

Intrinsic Rewards

These arise within individual

Feelings of companionship

Comfort

Sense of achievement

Enjoyment of status and recognition,

Interest in the job

Responsibility

Pride in the organization‟s success

Extrinsic Rewards

These are external to the individual, and given by others, such as:

Wage or salary

Bonuses and prizes

Working conditions

Transportation

Training opportunities.