MOTIVATION Managing requires the creation and maintenance of an environment in which individuals work in group for accomplishment of common objective. Unless every individual is ‘Motivated’, the group objective can not be achieved. ‘Motivation’ is the factor which makes the man work with zeal & enthusiasm.

MOTIVATION Motivation => work Performance => desired Results =>Satisfaction

MOTIVATION Need – want – Satisfaction chain Needs => Give Rise To => Wants => causes tension => Leads to Action => Results in => Satisfaction

MOTIVATION Motivator is something that influences the individual’s behavior. In all theories of Motivation, the inducement of some kind of “Carrot” are suggested. “Carrot” is is sort of Positive Motivator “Stick” is negative type of Motivator.

Types of motivation theories Content theories Human needs and how people with different needs may respond to different work situations. Process theories How people give meaning to rewards and make decisions on various work-related behaviors. Reinforcement theory How people’s behavior is influenced by environmental consequences.

Types of content theories: Hierarchy of needs theory ERG theory Two-factor theory Acquired needs theory

MOTIVATION ‘Abraham Maslow’ introduced the Theory of “Hierarchy of needs” for Motivation. – ‘Human needs could be classified in ascending order depending upon the Person’s desire to satisfy the need’ ( from lowest to highest order)

Abraham Maslow’s Hierarchy of Needs 1. Physiological Needs 2. Safety Needs 3. Belongingness Needs 4. Esteem Needs 5. Self- actualization needs

Edward Lawler Lloyd – found only TWO classes --- MOTIVATION Edward Lawler Lloyd – found only TWO classes --- -- (1) Biological Needs and -- (2) other Needs Herzberg noticed only TWO factors – - Maintenance Factors – Salary, Job security, working conditions etc. - Motivation Factors – Recognition, Growth etc

Process theories of motivation … How people make choices to work hard or not. Choices are based on: Individual preferences. Available rewards. Possible work outcomes. Types of process theories: Equity theory. Expectancy theory. Goal-setting theory.

Herzberg’s two-factor theory.

Victor H Vroom – MOTIVATION Advocated “Expectancy Theory” – People will be motivated to do the things, if they believe in the worth of GOAL, for which they are asked to put their efforts.

Expectancy theory Motivation (M), expectancy (E), instrumentality (I), and valence (V) are related to one another in a multiplicative fashion: M = E x I x V If either E, I, or V is low, motivation will be low.

MOTIVATION Porter and Lawler Model – Performance is a function of ability and perception of task and efforts required. Performance accomplishment is related to Reward & Satisfaction.

MOTIVATION Equity Theory of Motivation – Every person has his own judgement about the fairness of the Reward in comparison with the Reward of others. ‘Skinner’s “Reinforcement Theory” – People are Motivated by praise of desirable behavior. (participation in GOAL setting). Timely feed-back and praise for the work done.

MOTIVATION McClelland’s Theory of ‘needs’ – Achievement, power and affiliation are three important needs that help explain Motivation. Need for Achievement –The drive to achieve, excel in relation to set of standards. Need for Power – The need to make others to behave in a way that they would NOT have behaved otherwise. Need for Affiliation – The desire for friendly and close interpersonal relationship.

MOTIVATION Cognitive Evaluation Theory – Allocating extrinsic rewards for behavior that had been previously intrinsically rewarding tends to decrease the overall level of Motivation. Goal Setting theory – Goal should be very specific, difficult but achievable . Giving timely and frequently feed-back helps the person “ To do best” to achieve the GOAL. Self-efficacy – The individual’s belief and self confidence that he/she is capable.

Incentive compensation systems: MOTIVATION Incentive compensation systems: Profit-sharing plans. Some or all employees receive a proportion of net profits earned by the organization. Gain-sharing plans. Groups of employees share in any savings realized through their efforts to reduce costs and increase productivity. Employee stock ownership plans. Employees own stock in the company that employs them.

Basic motivational concepts Motivation—the forces within the individual that account for the level, direction, and persistence of effort expended at work. Reward—a work outcome of positive value to the individual Extrinsic rewards — valued outcomes given to someone by another person. Intrinsic rewards — valued outcomes that occur naturally as a person works on a task.

MOTIVATION Normally, any person gets Motivated based on his ‘Wants’ (next step of needs). Positive Motivation considers 4 ‘P’s – P – Promotion (Position) P – Pay P – Praise P – Prestige

Motivation Incentive Systems Piecework Programs Gain sharing Programs Bonus Systems Long-Term Compensation Merit Pay Profit-Sharing Employee Stock Option Plans Production / Productivity linked Incentive

Motivation Linking Performance and Rewards Employees must perceive that their rewards are linked to their performance. Pay differences are based on job-related performance factors

Motivation Salary level prevailing in the same type of industry in the same region is to be considered while fixing salary structure. Salary structure should be encouraging. Salary should be in higher order in relation to the ‘Skill’ level required. The positions of higher responsibilities to be given appropriate rewards. Periodical review of ‘Compensation package’ to be taken to reduce ‘Attrition’ rate. Tax liability of employees to be considered while revising the salary.