1. Motivation : Internal and external factors that stimulate desire and energy in people to be continually interested in and committed to a job, role, or subject, and to exert persistent effort in attaining a goal Motivation results from the interactions among conscious and unconscious factors such as o intensity of desire or need o incentive or reward value of the goal o expectations of the individual and of his or her significant others. Motivation is generally defined as the force that compels us to action. It drives us to work hard and pushes us to succeed. Motivation influences our behavior and our ability to accomplish goals. There are many different forms of motivation. Each one influences behavior in its own unique way. No single type of motivation works for everyone. People’s personalities vary and so accordingly does the type of motivation, that is most effective at inspiring their conduct. Motivation may be defined as the work a manager performs in order to induce subordinates to act in the desired manner by satisfying their needs and desires. VirtuosoCoder.in

2.  Types of Motivation :  Incentive : A form of motivation that involves rewards, both monetary and nonmonetary is often called incentive motivation. Many people are driven by the knowledge that they will be rewarded in some manner for achieving a certain target or goal. Bonuses and promotions are good examples of the type of incentives that are used for motivation.  Fear : Fear motivation involves consequences. This type of motivation is often one that is utilized when incentive motivation fails. In a business style of motivation often referred to as the, “carrot and stick,” incentive is the carrot and fear is the stick. Punishment or negative consequences are a form of fear motivation. This type of motivation is commonly used to motivate students in the education system and also frequently in a professional setting to motivate employees. If we break the rules or fail to achieve the set goal, we are penalized in some way. VirtuosoCoder.in

3.  Achievement : Achievement motivation is also commonly referred to as the drive for competency. We are driven to achieve goals and tackle new challenges. We desire to improve skills and prove our competency both to others and to ourselves. Generally, this feeling of accomplishment and achievement is intrinsic in nature. We often have a desire or need to receive positive feedback from both our peers and our superiors. This may include anything from an award to a simple pat on the back for a job well done. This feeling of achievement may involve external recognition.  Power : It is the drive to influence people and change situations. Power motivated people wish to create an impact on their organization and are willing to take risks to do so.  Affiliation : It is a drive to relate people on a social basis. Persons with affiliation motivation perform work better when they are complimented for their favourable attitudes and co- operation  Attitude : Attitude motivation is how people think and feel. It is their self confidence, their belief in themselves, their attitude to life. It is how they feel about the future and how they react to the past. VirtuosoCoder.in

4.  Nature of motivation : o Motivation is a personal and internal feeling : It is a psychological phenomenon which generates within an individual. These are energetic forces within a person that derive him to action. o Motivation is a continuous process : Human needs are unlimited. Therefore, motivation is ongoing process. o Motivation produces goal-oriented behaviour : It is behavioral concept that directs human behaviour towards certain goals. o Motivation is complex : Individuals may differ in their motivation even though they are performing the same type of job. E.g., if two men are engaged in cutting stones for constructing a temple, one may be motivated by the amount of wages he gets and the other by the satisfaction he gets by performing the job. o Motivation is different from job satisfaction : Motivation is the process of inspiring people to work for the goals of the organisation by satisfying their personnel goals. Job satisfaction is the feeling of satisfaction arising from the job itself. VirtuosoCoder.in

5. o Motivation can be either positive or negative : Positive motivation implies use of pay, incentives, etc. to satisfy human needs while negative motivation emphasizes penalties, e.g., fear of loss of job, threat of demotion, etc. o Motivation is system oriented : It is the result of interplay among three groups of factors : Influences operating within an individual, e.g., his goals, needs and values Influences operating within the organisation, e.g., organisation structure, technology, physical facility, etc. Forces operating in the external environment of the society  Importance of motivation : o High Performance : Motivated employees will put maximum efforts for achieving organizational goals. o Better performance will also result in higher productivity. o The cost of production can also be brought down if productivity is raised. o The employees should be offered more incentives for increasing their performance. o Motivation will act as a stimulant for improving the performance of employees. VirtuosoCoder.in

6. o Low Employee Turnover and Absenteeism : When the employees are not satisfied with their job then they will leave it whenever they get an alternative offer. o The dissatisfaction among employees also increases absenteeism. o When the employees are satisfied with their jobs and they are well motivated by offering them financial and non-financial incentives then they will not leave the job. The rate of absenteeism will also be low because they will try to increase their output. o Better of Organizational Image : Those enterprises which offer better monetary and non monetary facilities to their employees have a better image among them. o Such concerns are successful in attracting better qualified and experienced persons. o Since there is a better man-power to development programme, the employees will like to join such organizations. o Better Industrial Relations : A good motivational system will create job satisfaction among employees. o The employment will offer them better service conditions and various other incentives. o There will be an atmosphere of confidence among employers and employees. o There will be no reason for conflict and cordial relations among both sides. So motivation among employees will lead to better industrial relations. VirtuosoCoder.in

7. o Acceptability to Change : The changing social and industrial situations will require changes and improvements in the working enterprises. o There will be a need to introduce new and better methods of work from time to time. o Generally, employees resist changes for fear of an adverse effect on their employment. When the employees are given various opportunities of development then they can easily adapt to new situations. o They will think of positive side of new changes and will co-operate with the management. If the employees are satisfied with their work and are not offered better avenues then they will oppose everything suggested by the management. o Motivation will ensure the acceptability of new changes by the employees. VirtuosoCoder.in

8.  Maslow’s need hierarchy theory : He developed a conceptual framework for understanding human motivation which has been widely acclaimed. He defined a person’s effectiveness as a function of matching man’s opportunity with the appropriate position of hierarchy of needs. The salient features of this theory are as follows :- The urge to fulfill needs is a prime factor in motivation of people at work. Human needs form a particular structure or hierarchy. Physiological needs are at the base of the hierarchy while self-actualisation needs are at the apex. Safety (security) needs, social needs and esteem (ego) needs are positioned in between. A higher level need does not become an active motivating force until the preceding lower- order needs are satisfied. All needs are not felt at the same time. As soon as one need is satisfied, another need emerges. This process of need satisfaction continues from birth to death. Man is wanting animal. Various need levels are inter-dependent and overlapping. Each higher level need emerges before the lower level need is completely satisfied. VirtuosoCoder.in

9.  There are five categories of human needs :- o Physiological needs : these are biological needs required to preserve human life. These needs are also known as survival needs. They include needs for food, drink, clothing, sleep, etc. E.g., an individual requires a limited amount of food but he requires it everyday. o Safety needs : Once physiological needs are reasonably satisfied, a person wants protection from physical dangers and economic security. Safety needs are thus concerned with protection from danger and threat. Organisations can influence these needs through supervision, communication system, work groups, etc. o Social needs : It refer to need for belonging, need for acceptance, need for love and affection, etc. Organisations can influence these needs through supervision, communication system, work groups, etc. VirtuosoCoder.in

10. o Esteem needs : Esteem needs are of two types :- self esteem and esteem of others. Self esteem needs include self –respect, competence, achievement, knowledge and independence. Esteem of others includes reputation, status, recognition. o Self actualisation : These are the needs for realising one’s full potential, for continued self- development, for being creative. It is the desire of becoming what one is capable of becoming.  Critical / limitation of theory : Needs are not the only determinant of behaviour. There are other motivating factors like perception, exceptions, experiences, etc. Need recognition and fulfilment do not always follow the specific sequence or hierarchy suggested by Maslow. The theory may not have universal validity. The hierarchy needs is not always fixed. Different people may have different order. E.g., in case of creative people like singers, painters, etc. self-actualisation need may become a dominant motivating force even before the lower order needs are satisfied. There is no definite evidence that once a need is satisfied it loses its motivating force. It is doubtful that satisfaction of on need automatically activates the next need in hierarchy. VirtuosoCoder.in

11.  Herzberg’s two-factor theory : Frederick Herzberg’s theory of motivation is also called 'Two Factor Theory', 'Dual Factor Theory' and 'Hygiene / Maintenance Theory of Motivation'. This theory is based on the information collected by him and his associates (in the USA in 1959) by interviewing two hundred engineers and accountants in the Pittsburgh area of United States. The information collected relates to the attitude of people towards work. This attitude towards work depends on two sets of factors namely hygiene or maintenance factors and the motivating factors. Herzberg classified these job factor in two category :- o Hygiene Factors : According to Frederick Herzberg, the Hygiene Factors do little contribution to provide job satisfaction. He called them ‘dissatisfiers’ as their absence cause dissatisfaction but their presence is not motivating but only prevent dissatisfaction. The hygiene factors meet man's needs to avoid unpleasantness but do not motivate them to take more interest in the work. VirtuosoCoder.in

12. Hygiene factors (when provided) create a favorable environment for motivation and prevents job dissatisfaction. They are not an intrinsic part of a job, but they are related to the conditions under which a job is performed. When employer is unable to provide enough of these factors to his employees, there will be job dissatisfaction. However, if they are provided, they will not necessarily act as motivators. They will just lead employees to experience no job dissatisfaction. Such hygiene factors are as noted below. Hygiene / Maintenance Factors are :- Company's Policies and Administration, Supervision, Working Conditions, Interpersonal Relations with superiors and other subordinates, Salary, Job Security, VirtuosoCoder.in

13. Status, Personal Life, Employee Benefits o Motivating factors : Motivating Factors act as forces of job satisfaction. They create positive and a longer lasting effect on employee’s performance and are related to work itself. Adequate provision of such factors called are 'Satisfiers'. They make people happy with their jobs because they serve man's basic needs for psychological growth. In addition, they also motivate employees in their work. Such factors are five and are called motivators by Herzberg. The motivating factors are : Motivating Factors are :- Achievement, Recognition for Accomplishment, Increased Responsibility, VirtuosoCoder.in

14. Opportunity for Growth and Development, Creative and Challenging Work. Motivating factors motivate subordinates to take more interest in the work. They raise efficiency and productivity of employees. According to Frederick Herzberg, motivating factors are essential in order to provide job satisfaction and in order to maintain a high level of job performance. Employees will not have job satisfaction if the motivating factors are not provided in sufficient quality by the employer Hygiene factors affect an individual's willingness to work while motivating factors affect his ability and efficiency to work. VirtuosoCoder.in

17.  Limitations of Two-Factor Theory : The theory is based on a small sample of 200 accountants and engineers which is not representative of the work force in general. Herzberg assumed a correlation between satisfaction and productivity. But the research conducted by Herzberg stressed upon satisfaction and ignored productivity. The distinction between maintenance factors and motivating factors is not fixed. E.g., pay, a maintenance factor for a worker in United States may very much be motivator for an Indian worker. No comprehensive measure of satisfaction was used. An employee may find his job acceptable despite the fact that he may hate/object part of his job. VirtuosoCoder.in

19.  McGregor’s theory X and theory Y : He was a known psychologist. He has developed a theory of motivation on the basis of hypothesis relating to human behaviour. These theories contain two pairs of assumptions about human begins which McGregor though were implied by the actions of autocratic and permissive managers. It may be noted that these sets of assumptions are merely intuitive deductions, they are not based on any research studies.  Theory X ('authoritarian management' style) : o The average person dislikes work and will avoid it he/she can. o Therefore most people must be forced with the threat of punishment to work towards organisational objectives. o The average person prefers to be directed; to avoid responsibility; is relatively unambitious, and wants security above all else. Carrot and stick approach to motivation is followed. Theory X suggests that threats of punishment and strict control are the ways to manage people. VirtuosoCoder.in

20. After challenging the validity of Theory X, McGregor developed an alternative theory of human behaviour which is known as Theory Y. This theory assumes that people are not unreliable and lazy by nature. If they are properly motivated, they could really be creative.  Theory Y ('participative management' style) o Effort in work is as natural as work and play. o People will apply self-control and self-direction in the pursuit of organisational objectives, without external control or the threat of punishment. o Commitment to objectives is a function of rewards associated with their achievement. o People usually accept and often seek responsibility. o The capacity to use a high degree of imagination, ingenuity and creativity in solving organisational problems is widely, not narrowly, distributed in the population. o In industry the intellectual potential of the average person is only partly utilised. Workers commitment is directly related to the satisfaction of their needs. Thus this theory places emphases on satisfaction of the needs of the workers VirtuosoCoder.in

21. It does not rely heavily on the use of authority as an instrument of command and control. It assumes that the workers exercise self-direction and self-control in the direction of the goals to which they feel themselves committed. Because of this reasons, the Theory Y is realistic and frequently used at different levels in most of the organisations.  Limitation :- No enterprise man may belong exclusively either to Theory X or to Theory Y. He may share the traits of both. This theory squeezes all managerial styles and philosophies into two extremes of conduct which is devoid of reality. He suggests tacitly that job itself is the key to motivation. But all persons do not look for motivation in the job and not all work can be made challenging and rewarding. VirtuosoCoder.in

22. Theory X Based on assumption that people are basically lazy. People do not take initiative. They like to be directed. People avoid responsibility whenever possible. For getting things done people must be supervised closely and strictly. Autocratic style of leadership is likely to be more effective. Applicable to illiterate, unskilled and lower level workers. Believes in mental sickness and so negative motivation of employees. Theory Y Based on assumption that people like work as children like play. People like to take initiative. They seek self direction. People assume responsibility gladly if conditions are favourable. People do not require close and strict supervision for performing their jobs. Democratic or participative style of leadership is likely to be more effective. Applicable to educated and skilled employees who occupy higher position in the organisation. Believes in mental health and so positive motivation of employees. VirtuosoCoder.in

23.  Ouchi’s Theory Z : William Ouchi made a comparative study of American and Japanese management practices. He came to conclusion that many of the Japanese management practices can be adopted in American context. He suggested the adoption of Theory Z.  Japanese Management : It can be characterize by the following principles : o An emphasis on the group rather than the individual o An emphasis on human rather than functional relationships. o A view of top management as generalists and facilitators rather than as decision makers.  Features of Theory Z :- Strong bond between the company and the employers : Theory Z suggests life time employment in the company as followed in Japan. Retrenchment, Lay-off, etc. should be avoided as far as possible. Along-with financial incentives, the management should also use non-financial incentives to motivate the workers. VirtuosoCoder.in

24. To strength the bond between the company and the workers, the management should follow the paternalistic style. The needs of workers must be satisfied. Employees’ participation : The employees must participate in decision-making. They must be consulted by the management and their suggestions must be considered. This will increase their commitment to organisational decisions. Theory Z is less centralized and more consensus seeking. It involves the employees in decision making and gives them due recognition. Mutual trust : There should be trust between employees, supervisors, work groups, unions and management. According to Ouchi, trust, integrity and openness are closely related. All these are necessary for an effective organisation. Attempts should be made to achieve win-win relationships in the organisation. This would make the employees committed to the organisation. VirtuosoCoder.in

25. Integrated structure : No formal structure is recommended by Theory Z. The organisation structure should be based on team-work as in case of a basket ball team where there are no formal reporting relationships and the players play together. An integrated organisation need not have any chart or visible structure. The employee must develop the group spirit. Human resource development : The management must work to develop new skills among the employees. Human resources potential is recognized and the greater emphasis is on job enlargement and career planning as well as socilisation. Technical training, research and development are also emphasised. Informal control : The managers should emphasize mutual trust and cooperation rather than their authority over the subordinates. There should be free flow of information throughout the organisation so that corrective actions could be taken quickly whenever needed. o It involves a complex amalgamation of management principles and techniques for obtaining maximum cooperation of the employees. VirtuosoCoder.in

26.  Limitation /criticism of Theory Z : Provision of life time employment to employees to develop a strong bond between the organisation and its employees seems to be difficult. An entrepreneur does not like to keep an inefficient employee. Theory Z emphasises a common culture in the organisation. But people have different backgrounds, habits, language, religion, etc. Involvement of workers through participation in decision-making is very difficult. Theory Z emphases organisation without any structure. But in large organisation, the absence of any structure may bring about chaos as nobody will know who is responsible to whom. VirtuosoCoder.in

27. Japanese Organization Workers tend to make a lifetime commitment to their organizations and in turn, organizations assume responsibility for life time. Employees and managers seek consensus on decisions and endorse collective decision making processes. (collective decision making) Group responsibilities. The employees are treated as integral part of the organisation. The management can takes care of their needs even beyond their workplace. It provides for housing, day care services, mental and physical counseling, etc. Careers are linked to organisations, not professions. These firms do not prefer specialisation. American Organization Organization do not commit lifetime employment. The employees also seek better careers by moving between organization. Employees rely on individual judgement and prefer to make decisions unilaterally either as managers or individuals controlling their own destiny. (personal decision making) Individual responsibility. Firms tend to focus on the roles of employees at work. There is less concern for family, social issues and health of the employees. These organisation are founded on specialization of skills. VirtuosoCoder.in