CH- 12 MOTIVATION

• 12.1 Meaning of Motivation

• 12.2 Nature of Motivation

• 12.3 Significance of Motivation

• 12.4 Process of Motivation

• 12.5 Maslow’s Need Hierarchy Model

• 12.6 Herzberg’s Two-Factor Theory

• 12.7 Comparison between Maslow and Herzberg Models

• 12.8 Equity Theory

• 12.9 Rewards and Incentives

• 12.9.1 Rewards

• 12.9.2 Incentives
 INTRODUCTION
• Motivation is the word derived from the word ’motive’ which means needs, desires, wants or drives within the individuals.
It is the process of stimulating people to actions to accomplish the goals. In the work goal context, the psychological
factors stimulating the people’s behaviour can be -

➢ desire for money

➢ success

➢ recognition

➢ job-satisfaction

➢ team work, etc

• According to Likert, “It is the core of management which shows that every human being gives him a sense of worth in
face-to face groups which are most important to him….A supervisor should strive to treat individuals with dignity and a
recognition of their personal worth.”

• According to Dubin, “Motivation is the complex of forces starting and keeping a person at work in an organization.”
 NATURE OF MOTIVATION

Effect of
Continuous Skilled
Internal force environmental
Process managers
factors

Positive and
Pervasive Complicated
negative Goal-oriented
function Process
motivation
 SIGNIFICANCE OF MOTIVATION

Keep employees happy

Increase in efficiency

Nature of Work

Communication

Good Industrial Relations

Develops leaders

Reduces labour absenteeism and turnover

 PROCESS OF MOTIVATION

NEED IDENTIFICATION REWARDS/PUNISHMENTS

EXPLORING WAYS TO PERFORMANCE OF AS CONSEQUENCES OF REASSESSMENT OF
FULFIL THE NEED SELECTING GOALS EMPLOYEE DEFICIENCIES OF NEED
PERFORMANCE
MASLOW’S NEED HIERARCHY MODEL
 LIMITATIONS
Despite the appreciation for this theory, it has been criticised by many on the following grounds:

1. Researchers have proved that there is lack of hierarchical structure of needs as suggested by Maslow, though every
individual has some ordering for his need satisfaction. Some people may be deprived of their lower level needs but may still
strive for self-actualisation needs.

2. There is a lack of direct cause and effect relationship between need and behaviour. One particular need may cause different
type of behaviour in different persons. On the other hand, as a particular individual behaviour may be due to the result of
different needs. Thus, need hierarchy is not as simple as it appears to be.

3. Need and satisfaction of needs is a psychological feeling. Sometimes even the person may not be aware about his own
needs.

4. Some people say that hierarchy of need simply does not exist. At all level’s needs are present at given time. An individual
motivated by self-actualisation needs cannot afford to forget his food. But this criticism is solved by Maslow by saying that
needs are interdependent and overlapping.
 HERZBERG’S TWO FACTOR THEORY
Frederick Herzberg developed the model in 1959. He did this by interviewing over 200 professionals. The interviews delved
into when the interviewees were at their most and least happy with their jobs. Herzberg’s Motivation Theory model, or Two
Factor Theory, argues that there are two factors that an organization can adjust to influence motivation in the workplace.
1.Motivators- The presence of motivators causes employees to work harder. They are found within the actual job itself.

2.Hygiene factors: The absence of hygiene factors will cause employees to work less hard. Hygiene factors are not present
in the actual job itself but surround the job.
 THE FOUR STATS..

High High
Hygiene Hygiene
and High and Low
Motivation Motivation

Low Low
Hygiene Hygiene
and High and Low
Motivation Motivation
 LIMITATIONS

1. The theory only applies to white collar workers.

2. It doesn’t take an individual’s situation or perception into consideration. We have attempted to address
this above by applying the theory at an individual level.

3. The theory focuses on improving employee satisfaction. That doesn’t necessarily translate into
increased productivity.

4. There is no objective way to measure employee satisfaction within the theory.

5. Two Factor Theory is subject to bias. For example, when an employee is satisfied they will give
themselves credit for that satisfaction. Conversely, when they are dissatisfied they will blame external
factors.
COMPARISON…
 WHY IS MASLOW’S AND HERZBERG’S
THEORY OF MOTIVATION DIFFERENT?
Issue Maslow’s Model Herzberg’s Model

Order of needs The hierarchical arrangement of needs. No such hierarchical arrangement.

Emphasis Descriptive. Prescriptive

The essence of the Unsatisfied needs energize behavior; this behavior Gratified needs cause performance.
theory causes performance.

Motivator Any need can be a motivator if it is relatively Only higher-order needs serve as
unsatisfied. motivators.

Applicability Takes a general view of the motivational problems of Takes a micro-view and deals with
all workers. work-oriented motivational problems
of professional workers
Factors The existence of some factors creates a positive attitude The positive and negative factors are
and their non-existence creates a negative attitude. completely different.
 EQUITY THEORY
• Equity Theory is based on the idea that individuals are motivated by fairness. In simple terms, equity theory states that if an individual identifies an inequity between
themselves and a peer, they will adjust the work they do to make the situation fair in their eyes. As an example of equity theory, if an employee learns that a peer doing
exactly the same job as them is earning more money, then they may choose to do less work, thus creating fairness in their eyes. Common inputs include:

➢ The number of hours worked (effort). The commitment shown. The enthusiasm shown.

➢ The experience brought to the role. Any personal sacrifices made. responsibilities and duties of the individual in the
role.

➢ The loyalty the individual has demonstrated to superiors or the organization.

• Common outputs include:

➢ Salary, Bonus, Pension, Annual holiday allowance, Company car, Stock options, Recognition

➢ Promotion, Performance appraisals, Flexibility of work arrangements

➢ Sense of achievement, Learning

Individuals will always adjust their inputs so that the equation is always in balance. So, if an individual believes their outputs
are lower than their inputs relative to others around them, they will become demotivated. Likewise, an individual may need to
increase their inputs if their outputs are greater than those doing exactly the same job. Essentially, an individual within an
organization will always try to keep fairness (equity) in balance:
 REFERENT GROUPS
• A referent group is simply a collection of people a person uses for the purposes of comparison. For Adam’s Equity Theory
of Motivation, there are four referent groups people compare themselves with:

Self- Self-
inside outside

Others- Others-
inside outside

In essence, the Equity Theory of Motivation proposes that high levels of employee motivation in the workplace can only be
achieved when each employee perceives their treatment to be fair relative to others. Employees will compare themselves to
other groups both inside and outside of the organization. In doing so, they will compare the total of all inputs against the
total of all outputs. If they perceive unfairness, they will adjust their inputs to compensate, working more or working less,
depending on if their situation is positive or negative relative to the group or person being compared.
Recognising the phrases employees use when equity theory is in play in the workplace can be a key step in creating a high-
performance team.
 REWARDS

INTRINSIC REWARDS

EXTRINSIC REWARDS

FINANCIAL REWARDS

NON FINANCIAL REWARDS

PERFORMANCE BASED REWARDS

MEMBERSHIP BASED REWARDS

 INCENTIVES

COMPENSATION INCENTIVES

RECOGNITION INCENTIVES

REWARD INCENTIVES

APPRECIATION INCENTIVES
 OTHER INCENTIVES

INCENTIVES

FINANCIAL INCENTIVES NON FINANCIAL INCENTIVES

1.APPRECIATION OF WORK DONE

2.COMPETITION
3.GROUP INCENTIVES
4.KNOWLEDGE OF THE RESULTS
5.WORKER’S PARTICIPATION IN
MANAGEMENT
6.OPPORTUNITY FOR GROWTH
7.SUGGESTION