1. UNIT – IV SUSTAINING EMPLOYEE INTEREST Compensation plan – Reward – Motivation – Theories of motivation – Career management – Development of mentor – Protégé relationships.

2. Definition: Motivation is the processes that accounts for an individual’s intensity, direction and persistence of effort toward attaining a goal. Nature of motivation: It is a psychological phenomenon which generates within an individual. A person feels the lack of certain needs to satisfy and the need of satisfying ego motivates a person to do better than he normally does.

3. TYPES OF MOTIVATION: A positive motivation involves the possibility of increased motive satisfaction, while negative motivation involves the possibility of decreased motive satisfaction. Positive or incentive motivation is generally based on reward. It includes, a)praise and credit for work done, b)competition, c) participation, d) pride, e) appreciation, f) pay. Negative or fear motivation is based on force and fear. Fear includes, a) Punishments, b) riot, c) firing, d) demotions, e) layoff. Extrinsic motivation is concerned with external motivators which employees enjoy, It includes, Pay promotion, status, fringe benefits, retirement plans, holidays and vacations. Intrinsic motivation is concerned with the satisfaction one gets after doing the work well. It includes, Praise, responsibility, recognition, esteem, power, status, competition.

4. Self motivation or Attitude motivation Group motivation STEPS IN MOTIVATION: (JUCIUS) Sizing up situations requiring motivation Preparing a set of motivating tools Selecting and applying an appropriate motivation Following up the results of the application (FEED BACK)  Variability  Self interest  Attainability  Participation  Proportioning rewards  Human element  Individual group relationships  Stimulational

5. TECHNIQUES TO INCREASE MOTIVATION: Financial motivators: Financial motivators may be in the form of more wages and salaries, bonuses, profit sharing, leave with pay, medical reimbursements. Non financial motivators: Appraisal Status and pride Participation Job enrichment Job security Job rotation Competition

6. THEORY X AND THEORY Y: Mc Gregor concluded that a manger’s view of nature of human beings based on certain grouping of assumptions and he or she tends to mold his or her behaviour toward employees according to these assumptions. THEORY X assumptions are basically negative, They generally dislike work. As they dislike work they must be coerced, controlled, or threatened with punishment. Employees will avoid responsibilities and seek formal direction whenever possible Most workers place security above all other factors and will display little ambition.

7. THEORY Y assumptions are basically positive, 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 dispersed throughout the population. MASLOW’s framework explains these theories as, Theory X assumes that lower order needs dominate individuals. Theory Y assumes that higher order needs dominate individuals. Mc Gregor himself held to the belief that theory Y assumptions are more valid than theory X.

8. HERZBERG’s MOTIVATION HYGIENE THEORY: Fredrick Herzberg and his associates developed the motivation hygiene theory which is commonly known as 2 factor theory in the late 1950’s and early 1960’s. The motivational factors are intrinsic in nature and hygiene factors are extrinsic in nature. HYGIENE FACTORS Quality of supervision Pay Organizational policies Physical working conditions Relations with others job security JOB CONTEXT Job dissatisfaction

9. MOTIVATORS Promotion opportunities Opportunities for personal growth Recognition Responsibility Achievement JOB CONTENT  Hygiene factors do not produce positive results but prevent negative results.  Motivational factors have a positive effect on job satisfaction and result in increased output.

10. Hygiene factors: Hygiene factors or the maintenance factors do not motivate people, they simply prevent dissatisfaction and maintain status quo. Such factors do not provide positive results but prevent negative results. If these factors are not there it will lead to job dissatisfaction. Ten maintenance or hygiene factors according to Herzberg are: Company policy and administration Technical supervision Inter personal relations with supervisor Inter personal relations with peers Inter personal relations with subordinates Salary Job security Personal life Working conditions Status

11. Motivational factors: These factors are intrinsic in nature and are related to job. The motivational factors have a positive effect on job satisfaction and often result in an increase in total output. Thus these factors have a positive influence on morale, satisfaction, efficiency and productivity. He concluded with 6 factors to motivate the employees, Achievement Advancement Possibility of growth Recognition Work itself Responsibility

12. Mc Celland’s Achievement theory of motivation: Mc Celland’s theory is closely related to achievement motive. Need for achievement Need for affiliation (or) application Need for power VROOM’s EXPECTANCY / VALENCE THEORY: This theory is expanded from Maslow and Herzberg theories. It views motivation as a process governing choices. This expectancy theory argues that the strength of a tendency to act in a certain way depends in the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of the outcome of the individual. This includes 3 variables – Valence, Instumentality, and Expectancy.

13. Attractiveness Performance – reward linkage Effort performance linkage

14. MASLOW’s NEED HIERARCHY THEORY

15. ADAM’s EQUITY THEORY OF WORK MOTIVATION: Adam states “that a major input into job performance and satisfaction is the degree of equity that people perceive in their work situation.” He says inequality arise when outcomes (pay, status, promotion) is unequal to inputs (efforts). Both inputs and output of a person and others are based on person’s perceptions. If the person’s perceived ratio is not equal to the other he will have to strive to restore the ratio to equity.

16. PORTER AND LAWLER MODEL: Porter and Lawler suggests that performance leads to satisfaction. Efforts Performance Rewards Satisfaction are major variables in this model.

17. PATH GOAL HYPOTHESIS: This approach has been developed by Georgopolous, Mahoney and Jones. This approach is that if people work harder what they perceive in a path towards the goal they desire attainment of goal is easier.

18. LIKERTS’ APPROACH TO MOTIVATION: System 1: Exploitative – authoritative System 2 : Benevolent- authoritative System 3: Consultative – democratic System 4: Participative - democratic

19. SINDHUJA RAVIKUMAR, I MBA- C