1. MOTIVATION

2. MOTIVATION: Motivation is the willingness of a person to exert high levels of effort to satisfy some individual need or want.

3. Importance of Motivation Motivation coupled with ability leads to performance. Its the responsibility of a manager to make employees look for better ways of doing jobs. Motivated employee is more quality oriented. E.g. CEO spending more time in analyzing a report or a clerk taking extra care when filing important documents.

4. THEORIES OF MOTIVATION 1. Content Theories (Emphasis on what motivates an individual) Maslow, Alderfer, Herzberg, Mc Clelland 2. Process Theories (Emphasis on actual process of motivation) Expectancy Theory Equity Theory Goal Setting Theory

5. MOTIVATION THEORIES: 1.Maslow’s Need Hierarchy Theory Higher order needs Lower order needs Man seeks growth

7. Limitations of Maslow's Hierarchy - Criticism There is little evidence to support its strict hierarchy.For example, some cultures appear to place social needs before any others. It is difficult to interpret the concepts like- unsatisfied needs motivate, a satisfied needs activates movement to a new need level.

8. Alderfer’s simplification of Maslow’s needs categories. 1.Needs are arranged in order of importance. 2.Unsatisfied needs motivate individuals. 3.People have three classification of needs: Existence (physiological and safety) Relatedness (social) Growth (esteem and self-actualization) ERG Theory of Motivation

9. Herzberg’s Motivation- Hygiene (Two Factor) Theory: The theory was derived by conducting interviews of professionals in various countries. The research was simple and built around one question- “Think of a time when you felt exceptionally good or exceptionally bad about your job”. Result was as following: Dissatisfaction and demotivation Not dissatisfied but not motivated Satisfaction and motivation

10. Hygiene factors represent the need to avoid pain in the environment. They are not an intrinsic part of a job, but they are related to the conditions under which a job is performed. Lead to job dissatisfaction Motivators are associated with positive feelings of employees about the job. They are related to the content of the job. Lead to job satisfaction.

11. Hygiene Factors Company policies Quality of supervision Relations with others Rate of pay Job security Working conditions Motivational Factors The work itself Achievement Career advancement Job interest Responsibility

12. McClelland’s Needs Theory The need for Achievement: is the drive to accomplish challenging goals. The need for Power: is the desire to control others; to influence others’ behavior according to one’s wishes. The need for Affiliation: is the desire for close relationships with others.

13. Vroom’s expectancy theory: Victor Vroom presented the expectancy theory. The theory is based upon a rational economic view of people. It views people as having their own needs and expectations of what they desire from their work (rewards). This theory says motivation depends upon the situation facing people and how it satisfies their desires. The Expectancy theory is built around three concepts: Valence Expectancy Instrumentality

14. 1. Expectancy -the perceived probability that effort will lead to task performance. 2. Instrumentality -the perceived probability that performance will lead to rewards. 3. Valence -the anticipated value of a particular outcome to an individual.

15. 3. Rewards-Personal goals relationship = Valence 1. Effort-Performance relationship = Expectancy 2. Performance-Rewards relationship = Instrumentality Individual Effort Individual Performance Personal Goals Organizational Rewards 1 2 3

16. How Expectancy Theory Works Expectancy Effort - Performance Link E=0 No matter how much effort you put in, probably not possible to complete the project in 24 hours Instrumentality Performance - Rewards Link Your boss does not look like someone who has 50 lakhs For this project I=0 Valence Rewards - Personal Goals Link There are a lot of wonderful Things you could do with 50 lakhs V=1 Your boss offers you 50 lakhs if you complete a project by tomorrow morning. Conclusion: Though you value the reward, you will not be motivated to do this task.

17. Implications for Managers Need to offer employees valued rewards (high valences) Need to insure that if people are willing to put forth effort that you help them succeed. Maintain the E link.(Provide tools, info, support) Need to make sure that you follow through with reward system that is tied to performance.Maintain the I link.(Differential rewards for performance)

18. Criticism: Its overly rational. Not everyone is willing or able to expend the energy to calculate probabilities. The amount of effort individuals are willing to put on the job is influenced by many factors.

19. Goal Setting Theory/ Management by objectives (MBO): process by which managers and their employees jointly set objectives for the employees, periodically evaluate the performance, and reward according to the results.

20. 1.Objectives state what is to be accomplished within a given period of time. 2.Criteria for objectives: Difficult but achievable Observable and measurable Specific, with a target date. 3.Feedback is critical and acts to guide behaviour.

21. Adam’s Equity Theory of Motivation Individuals compare their job inputs and outcomes with those of others and then respond so as to eliminate any inequities. Equity theory recognizes that individuals are concerned not only with the absolute amount of reward for their efforts, but also with the relationship of this amount to what others receive.

22. Performance Education Tenure Seniority Gender Benefits Recognition Actual Pay INPUTSOUTPUTS Equity Theory of Motivation

23. Ratio Comparison* Employee’s Perception Outcomes A Inputs A Outcomes A Inputs A Outcomes A Inputs A Outcomes B Inputs B Outcomes B Inputs B Outcomes B Inputs B < = > Inequity (Under-Rewarded) Equity Inequity (Over-Rewarded ) * Where A is the employee, and B is a relevant other or referent. Equity Theory

24. Equity Theory - Exchange Scenarios Case 1: Equity - pay allocation is perceived to be to be fair - motivation is sustained Case 2: Inequity – Under- rewarded. Employee is motivated to seek justice. Work motivation is disrupted. Case 3: Inequity – Over-rewarded. Could be problem. Inefficient.

25. Equity Theory Applications Develop tools to pay people in proportion to their contributions Monitor pay structure and position in the labor market for consistency.