Motivation

Introduction

Company's biggest challenge = get work done from employees

This depends on motivation

Motivation comes from movre (Latin) = to move

Motivation:

Psychological force

Within an individual

That sets him in motion

To achieve certain goals

Or satisfaction of certain needs

Motives are somewhere a reflection of human needs.

Needs = physiological and psychological drives

Wants = stuff that the person wants to spend their money on

Incentives = Factors utilized for satisfying or motivating people

"Motivation is the complex set of forces starting and keeping a person at work in an organization." - Robert Dublin

"Motivation represents an unsatisfied need which creates a state of tension or disequilibrium, causing the individual to march in a goal-directed pattern, towards restoring a state of equilibrium by satisfying the need." - Stanley Vance

Characteristics of motivation

Psychological Process:

It is the process to achieve a desired result by stimulating and influencing the behavior of subordinates.

A manager should attempt to understand the needs, motives and desires of every employee in the organization.

This is because everyone is different and the same motivational technique may not apply to all kinds of individuals.

Continuous Process

When one need is satisfied, another one arises.

Thus, the management should develop innovative techniques, systems and methods to satisfy the changing needs of workers.

Complex and Unpredictable:

Human wants are not fixed; they change based on the consequences.

A currently satisfied worker's needs will change and he will no longer remain satisfied.

Moreover, different people have different motives.

Managers must be more conscious to motivate subordinates and to achieve objectives.

Pervasive Function:

Motivation is present in all levels of the management and organization.

Every manager (top level to bottom level) is responsible for motivation.

Along with their subordinates, managers are also responsible for motivating other subordinates in the management hierarchy.

Influences the Behaviour:

This is the most important objective of motivation.

Bringing out behavioral changes

Managers influence the behaviour of workers and encourage them to concentrate more on their goals.

Positive or Negative:

Positive motivation = incentives and rewards to workers

Incentives are both financial and non financial.

Negative motivation is based on punishment for poor performance like reducing wages, demotion, job termination etc.

Based on the requirements, managers have to use both.

Importance of Motivation

Motivating the subordinates is the fundamental duty of the manager as it ultimately helps in fulfilling the goals of the organization.

Cooperation and Goals:

Motivated employee --- cooperates willingly with management and does his best to help fulfil organizational goals.

Productivity:

Motivated employees attempt to enhance their knowledge and skills.

This helps them increase their productivity.

High Efficiency:

It has been observed that motivated employees work sincerely towards their given tasks and develop a sense of belongingness.

This results in them conserving organizational resources. Thus, efficiency improves.

Job Satisfaction:

Higher motivation leads to better job satisfaction

A motivated employee yearns for opportunities to satisfy needs.

In this process, they become loyal to the work and eventually the organization.

Better Relations:

The number of complaints and grievances reduce when the employees are motivated.

Good Image:

Motivated employees help boost the image of the company as a good employer in the industry.

Content / Need Theories

Introduction

Content theories emphasise that motivation depends upon the individual needs.

A need is a state in person’s life that triggers action and activates behaviour.

There are different types of individual needs. They have been grouped into motivation levels.

Answers - "What" motivates an individual

Recognizes needs and relates motivation to the fulfilling of these needs.

Abraham Maslow

One of the earliest works in the field of motivation.

5 levels

Once a lower level need of an individual is met, he moves towards the next level.

Motivation Levels (from bottom to top of pyramid)

Physical or Physiological Needs: Basis needs; Food, air, water and shelter; Lower-order needs - need to be met before an individual can move on to higher level needs.

Safety needs: Staying in a safe and secure environment. In an organization, managers can provide job security, medical insurance and safe gadgets and machines for working.

Social / Belongingness / Affiliation Needs: Needs for love, affection and interaction with people. These are essential so that we don't feel isolated and depressed. They are met through friendships, family and intimacy. In an organization - cooperative teamwork, kind supervision and sufficient work-life balance.

Esteem Needs: Includes internal (self esteem or self respect through personal achievement) and external (social esteem through respect and appreciation from others). Managers should give awards and appreciation certificates for their achievements.

Self Actualisation Needs: It is the pursuit of reaching one's full potential as a person. They are usually not fully satisfied as new opportunities always come up. It also depends from individual to individual. In an organization - challenging tasks and inviting them for decision making.

Herzberg Two-Factor theory

Introduction

Frederick Herzberg

Motivation-hygiene theory

Factors affecting satisfaction or dissatisfaction in a work environment.

Hygiene Factors:

Basic factors in a job

Extrinsic factors.

They do not provide satisfaction

But their absence causes disatisfaction

Taken for granted

Ex. status, job security, salary and fringe
benefits.

Motivators:

Present within the job

Provide satisfaction

Intrinsic factors

Absence does not lead to disatisfaction

But, presence gives satisfaction

Ex. job challenge, advancement, autonomy, responsibility, etc.

Introduction

David McClelland

Needs classified into achievement, affiliation and power

People at any time are guided by multiple motives.

In different situations, one or two needs are dominant and thus, motivation varies with needs.

Need for Achievement:

Seek to excel

Prefer moderate risks

If high need for achievment,

Choose tasks where they can take personal responsibility for finding solutions to the problems.

Require regular feedback in order to check progress

Managers should give challenging projects with attainable goals

Need for Affiliation:

Look out for pleasant relationships with other people

Need to feel accepted by other people.

Companionship

Prefer work that provides them with significant personal interaction.

Tend to conform to the norms of their work group

Managers should create an atmosphere of supportive interpersonal relationships. Ex. team projects

Need for Power:

A desire to influence others

Tend to be outspoken and forceful.

Willing to engage in confrontation

Need for power can be of 2 types

Personal:

Want to direct others

Undesirable

Institutional:

Want to manage the efforts of others to promote the goals of the organization

Managers with a high need for institutional power tend to be more effective that those with a need for personal power.

Note: No one wants a leader who tries to control people for the sake of it. That's just manipulation.

Alderfer's ERG Theory

Introduction

Simplified 5 needs into 3

Developed in line with Maslow's hierarchy of needs

According to Alderfer, there is no hierarchy of needs

A desire to fulfil any of the needs can be activated at any point in time

Lower level needs must not be satisfied to seek higher order needs.

Ex. A homeless (physiological) man may still want friends (social).

Existence:

Basic material existence motivators.

Physical and Safety Needs

Ex. Food, water, health, secure employment

Relatedness:

Maintaining interpersonal relationships

Ex. Friendship, family

Growth:

Intrinsic desire for personal development

Ex. Self-esteem, creativity

Belongingness Needs

Esteem and Self-actualization Needs

Process theories

Introduction

Answers "how"

how behaviour is energised, directed and sustained.

Introduction

Propounded opposing the Herzberg’s two-factor theory.

By Vroom

Explains the behavioural process of why individuals choose one behavioural alternative over another

Individuals are motivated towards objectives if they think that their performance will be rewarded for the efforts they will put.

Three variables - Expectancy, Instrumentality and Valence

Expectancy

Effort ---> Performance

It is the confidence that better efforts will result in better performance.

It is influenced by:

Instrumentality

Performance ---> Outcome

It is the faith that the individual will receive an award if they perform well.

Motivation = Expectancy x Instrumentality x Valence

It depends on:

Trusting the people who decide who receives what outcome (Trusting management)

Having appropriate skills for performing the job

Availability of right resources

Availability of critical information

Getting the required support for accomplishing the goal.

understanding the relationship between performance and reward

Transparency in the system that decides who get what outcomes.

Valence

Is the outcome is valuable?

Based on expected value, not actual value since an employee thinks about all of this before undertaking the task.

It depends on the individual's

Needs

Values

Goals

Preferences

Source of motivation

Introduction

J.S. Adams

Assumption = Employees experience strong expectations of justice, balance and fairness in treatment by their employers.

Individuals are motivated by a desire to be treated equally at work.

Your outcomes / Your inputs =
Others' outcomes / Others' inputs

Employees constantly assess their level of effort against fellow workers and the reward they receive for their effort.

When the employee feels their outcomes are fair in relation to others, they feel motivated and satisfied.

Inputs

The quality and quantity of employee’s contribution to work.

Ex. efforts, experience, education, etc.

Outputs

The positive and negative results that an individual gets after putting inputs into a task.

They can be tangible and intangible.

Ex. job security, salary, praise, etc.

Reinforcement Throry

Influencing behavior by controlling the concequences

Based on the "law of effect" - An individual tends to repeat behaviour which is rewarded while the behaviour which gives punishment is not repeated.

They learn from the past and thus develop patterns of behaviour to regulate the future consequences.

This approach is called operant conditioning

Propagated by B.F.Skinner

Application of operant conditioning = OB modification whereby managers focus on positive rewards to elicit desirable behaviour.

Different methods of motivation

Financial Incentives

Non Financial Incentives

An incentive is something that stimulates a person towards some goals. It stimulates human needs and generates the desire to perform.

Incentives have been directly linked to increased performance in companies. They can be financial or non financial.

Introduction

Incentives that are directly linked to money.

Also known as monetary incentives

Needed for meeting the basic needs of employees

Pay and allowances

Salary + Allowances (dearness allowance (cost of living - beat inflation), house rent allowance, etc.)

Some organizations offer a compensation including both salary and allowances while some provide a consolidated salary.

Bonus

Minimum bonus limit is 8.33% of salary or wages in India under the Payment of Bonus Act, 1965.

Addition, on top of basic pay and allowances

Profit Sharing

Higher level employees

employees are given a certain share in the profits of the company when the profits increase beyond a given limit.

Ex. employee is entitled to 1% profit if profit > 4,00,000

Induces employees to work harder to gain their share of company’s profits.

Commission

Variable pay

Generally, a percentage of sales to the sales personnel as per their contribution.

Rate varies from org to org

Performance linked incentives

Salary / wage linked incentive

The amount of incentive is associated with the performance of the employee.

Stock options

Stock options give employees the right to purchase company’s shares at a future date on a predetermined price.

These shares make them part owners of the firm which increases their sense of belongingness.

Introduction

Financial incentives can only motivate employees to a certain extent

Thus, companies have to use non financial incentives as well

Higher order needs

Status

Status = rank in the society

In org, designations or positions as per their abilities, skills and experience

Praise

Most effective incentive

Should be used with care

Praising an incompetent worker would create resentment among competent workers.

But, genuine praise may motivate an incompetent worker to be better.

Group Incentives

May be more effective than individual incentives

When the prestige or even existence of the team is at stake, group members work with team spirit.

This results in high morale and increases productivity

Participation & Involvement

Allowing them to participate in management and decision making

Provides psychological satisfaction

Imbibes a sense of importance

Opportunity for Growth

Opportunities for growth, career advancement and personality development

Suggestion System

Motivates employees to suggest how to make the company better / more efficient.

Sometimes, name and pic published in company newsletter / magazine.

Cash reward or

Job enrichment

Adding content to the job leading to increased responsibility, scope and challenge in its performance.

pioneered by Frederick Herzberg

In 1986

Management should enrich job by:

Letting employees decide the pace and technique of work

Encouraging participation from the employees

Increasing the responsibility for the job

Giving continuous feedback to the employees.

Instilling a feeling of achievement.

Higher level employees - more satisfaction from challenging jobs

Job enlargement

Scope of the job is increased by increasing the number of tasks associated with the job but at the same level in the organization.

Horizontal expansion

Performing a variety of jobs or operations at the same time.

Reduces monotony in the job

Ex. A person is administration who is doing typing work may also be assigned the tasks of drafting letters, sorting of incoming mail and filing the letters.

Vertical expansion

Advantages

Variety of tasks reduces boredom

Optimum utilisation of physical and mental abilities of workers

Worker paced control: Workers can control their pace. This reduces fatigue and exertion.

Meaningful feedback: Workers receive meaningful performance feedback. When tied to evaluations and rewards, this can be motivating.

Disadvantages

Increases work burden. If the excess work goes unrecognized (salary or praise), this may demotivate the employee.

Increases frustration of the employee if increased activity does not lead to increased incentives.

Problem with union members: Unions may misunderstand job enlargement as exploitation of worker and may object it.

Motivation vs Inspiration

Motivation is external as the individual is persuaded by someone else.

Encouragement comes for someone else offering financial and non financial incentives.

Short lived (as long as the reward is there)

Self oriented as the outcomes matter to the individual.

Competitive by nature

Inspiration is internal as it comes from within the individual.

The encouragement and ideas come from the individual itself.

Long term

Inspiration is service oriented as the outcomes matter to those who are being served. It promotes partnership.

Collaborative by nature.


Behavioral Theories

Introduction

Behaviour: The way a person conducts themselves towards others.

When workers are treated as humans rather than machines, they will work better.

McGregor and William Ouchi

Theory X

Traditional approach to motivation and control.

Traditional stereotyped and authoritarian management style.

Assumptions:

An average human being is lazy and doesn’t like to work. He will avoid work if he can.

Most human beings lack ambition and thus don’t want responsibility. They prefer to be directed rather than to lead.

Most human beings are self centred and indifferent to the organisational goals.

Most people are not creative to solve organisational problems.

Most human beings are motivated with physiological and safety needs. (lower order needs)

Human beings are motivated only by money and benefits required for satisfying the physical and safety needs

Employees are managed by punishments and strict control.

Can only work in the environment where the work is repetitive in nature and promotions are not frequent.

McGregor proposed Theory Y refuting Theory X

Theory Y

People are not unreliable and lazy by nature.

Positive view on employee motivation and their behaviour.

Management helps employees develop and express their creative skills.

Assumptions

An average person doesn’t dislike work rather work is natural as play.

An average human being will exert self control and direct himself for his objectives.

An average individual knows that he will be rewarded if he is committed for the objectives. These rewards are generally higher order needs (ego satisfaction and self-actualisation)

An average person tends to seek responsibility and is ambitious.

Imagination, creativity, and ingenuity can be used to solve work problems most of the people.

Considering the present scenario of present industrial life, the intellectual potential of an average man is only partly utilized.

Theory Y is more used in organizations

McGregor suggested motivational practices like decentralisation, delegation, job enlargement, participation and consultative management.

Ouichi's Theory Z

Based upon a comparative study of American
and Japanese management practices.

Conclusion: many Japanese management practices
can be adopted in American perspective.

Mix of Theory X and Y (leaning more towards Theory Y)

Focuses on long term employment and job security

Higher concern for happiness and well-being of the employees.

Features of an organization according to Theory Z

Trust, integrity and openness should be essential ingredients of an effective organisation.

Theory Z says that involvement of employees in related matters improves their commitment and performance.

The leader’s role should be to coordinate the efforts of his subordinates.

The organization and management team should ensure that measures and programs in place should be there to develop employees.

Employees should be given greater decision making responsibility.

They should be generalists but also undertake some specialized job tasks.

The organization should recognize the contributions of individuals, but always within the context of the team as a whole.

Limitations: does not provide complete solution to motivational problems (since different environments of different organizations)

Philosophy of managing organisations