PRESENTATION

ON

Submitted To Submitted By
Mr. Rahul Saxena Ruchi Sinha
(Class Coordinator) PGDM – II (B)
Roll: - 15
 TABEL OF CONTENT

1. Motivation – an introduction
i. Definition
ii. Basic Characteristics

2.Intrinsic & Extrinsic Motivation

3. Theoriesof Motivation
i. Maslow's need hierarchy
ii. Herzberg's two-factor theory.
iii. McClelland's need theory
iv. McGregor's Theory X and Theory
4.Motivation at Workplace
i. Some common myths about employee motivation

5. Seven Rules of Motivation

6. Strategies of Employee Motivation

7.Conclusion

8.Bibliography
 MOTIVATION- an introduction

“Motivation is concerned with how behavior gets started, is Energized, is sustained, is

directed, is stopped and what kind of Subjective reaction is present in the organism
while all this is Going on”.
-MR JONES

“Motivation is the self propelling force within a man which Keeps prompting him to
improve his performance, his behavior. It is his will and keenness to achieve not what
he is supposed to Achieve, but what he sets for himself to achieve”.

SL DASS

Motivation is an internal state that activates behavior and gives it direction. Motivation
is the driving force behind all actions of human beings, animals, and lower organisms.
The main question facing managers in an organization is motivation, how does it work,
when to apply and to whom they should apply on. In today’s organization, motivation
plays an important role in determining whether a company will succeed or not.
Motivation is a set of attitudes and values that influence a person to act in a specific
goal directed manner. It is an invisible inner state that energizes the human goal-
directed behavior, which can be divided into two components which are the direction of
a behavior working to reach a goal and the strength of the behavior. Within an
organization the desired goals are often clearly defined, the manager tries to achieve
the goals of the organization through employees. For this a manager normally seeks to
change or maintain certain environmental factors so as to influence the inner drives
which may change or sustain the behaviors of the subordinates.

Motivation is different things to different people. In today’s business environment,

managers must employ an organizational culture, where motivation is the key to their
mission as leaders.

In an organization, different employees have different needs and different priorities,

therefore, managers must be able to establish their needs and be able to apply
different motivational tools to satisfy different needs. At the core of motivation is human
needs satisfaction. The inner drives within an individual are believed needs to be
activated to give rise to appropriate behavior, where such behavior could lead to the
fulfillment of the needs.

Basic Characteristics of Motivation

 Effort : This refers to the strength of a person's work-related behavior.

 Persistence : This refers to the persistence that individual’s exhibit in applying

effort to their work tasks.

 Direction : This refers to the quality of a person's work related behavior.

 Goals : This refers to the ends towards which employees direct their effort.
 INTRINSIC & EXTRINSIC MOTIVATION

Intrinsic Motivation

Intrinsic Motivation: Stems from the direct relationship between the worker and the task
and it is usually self-applied.

• Intrinsic motivation occurs when people engage in an activity, such as a hobby,

without obvious external incentives.

In knowledge-sharing communities and organizations, people often cite altruistic

reasons for their participation, including contributing to a common good, a moral
obligation to the group, mentorship or 'giving back'. In work environments, money may
provide a more powerful extrinsic factor than the intrinsic motivation provided by an
enjoyable workplace.

In terms of sports, intrinsic motivation is the motivation that comes from inside the
performer. That is, the athlete competes for the love of the sport.

Extrinsic Motivation

Extrinsic Motivation: Stems from the work environment external to the task and it is
usually applied by someone other than the person being motivated.

Extrinsic motivation comes from outside of the performer. Money is the most obvious
example, but coercion and threat of punishment are also common extrinsic motivations.

In sports, the crowd may cheer the performer on, and this motivates him or her to do
well. Trophies are also extrinsic incentives. Competition is often extrinsic because it
encourages the performer to win and beat others, not to enjoy the intrinsic rewards of
the activity.

Social psychological research has indicated that extrinsic rewards can lead to over
justification and a subsequent reduction in intrinsic motivation.
 THEORIES OF MOTIVATION

Some of the theories of motivation are:

1) Maslow's need hierarchy

2) Herzberg's two-factor theory.
3) McClelland's need theory
4) McGregor's Theory X and Theory

1) Abraham Maslow's hierarchy of human needs theory is the most

widely discussed theories of motivation.

Maslow in 1954 developed a “hierarchy of needs” or an order of needs that need to

be fulfilled in each person. If a manager embraces Maslow’s hierarchy, he/she will
motivate employees, keeping the order of needs in mind. The needs, listed from
complex or high level to basic or low level are as follows
As per his theory these needs are:

(i) Physiological needs:

These are important needs for sustaining the human life. Food, water, warmth, shelter,
sleep, medicine and education are the basic physiological needs which fall in the
primary list of need satisfaction. Maslow was of an opinion that until these needs were
satisfied to a degree to maintain life, no other motivating factors can work.

(ii) Security or Safety needs:

These are the needs to be free of physical danger and of the fear of losing a job,
property, food or shelter. It also includes protection against any emotional harm.

(iii) Social needs:

Since people are social beings, they need to belong and be accepted by others. People
try to satisfy their need for affection, acceptance and friendship.

(iv) Esteem needs:

According to Maslow, once people begin to satisfy their need to belong, they tend to
want to be held in esteem both by themselves and by others. This kind of need
produces such satisfaction as power, prestige status and self-confidence. It includes
both internal esteem factors like self-respect, autonomy and achievements and external
esteem factors such as states, recognition and attention.

(v) Need for self-actualization:

Maslow regards this as the highest need in his hierarchy. It is the drive to become what
one is capable of becoming, it includes growth, achieving one’s potential and self-
fulfillment. It is to maximize one’s potential and to accomplish something.

As each of these needs are substantially satisfied, the next need becomes
dominant. From the standpoint of motivation, the theory would say that although no
need is ever fully gratified, a substantially satisfied need no longer motivates. So if you
want to motivate someone, you need to understand what level of the hierarchy that
person is on and focus on satisfying those needs or needs above that level. Maslow’s
need theory has received wide recognition, particularly among practicing managers.
This can be attributed to the theory’s intuitive logic and ease of understanding.
However, research does not validate these theory. Maslow provided no empirical
evidence and other several studies that sought to validate the theory found no support
for it.
Herzberg’s Two Factor Theory

Frederick Herzberg has tried to modify Maslow’s need Hierarchy theory. His
theory is also known as two-factor theory or Hygiene theory. He devised his
theory on the question: “What do people want from their jobs?” He asked people
to describe in detail, such situations when they felt exceptionally good or
exceptionally bad. From the responses that he received, he concluded that
opposite of satisfaction is not dissatisfaction. He states that presence of certain
factors in the organization is natural and the presence of the same does not lead
to motivation. However, their non-presence leads to De-motivation. In similar
manner there are certain factors, the absence of which causes no dissatisfaction,
but their presence has motivational impact

HYGIENE FACTORS

 Conditions
 Pay
 Status
 Security
 Company policies

MOTIVATIONAL FACTORS

 Achievement
 Recognition
 Growth/Advancement
 Interest in the job
Two Factor Theory

(Also known as Herzberg's Motivation-Hygiene Theory) was developed by

Frederick Herzberg, a psychologist who found that job satisfaction and job
dissatisfaction acted independently of each other. Two Factor Theory states that
there are certain factors in the workplace that cause job satisfaction, while a
separate set of factors cause dissatisfaction

Two Factor Theory Fundamentals

Anna Lustig attitudes and their connection with industrial mental health are related
to Maslow's theory of motivation. His findings have had a considerable theoretical,
as well as a practical, influence on attitudes toward administration]. According to
Herzberg, individuals are not content with the satisfaction of lower-order needs at
work, for example, those associated with minimum salary levels or safe and
pleasant working conditions. Rather, individuals look for the gratification of higher-
level psychological needs having to do with achievement, recognition,
responsibility, advancement, and the nature of the work itself. So far, this appears
to parallel Maslow's theory of a need hierarchy. However, Herzberg added a new
dimension to this theory by proposing a two-factor model of motivation, based on
the notion that the presence of one set of job characteristics or incentives lead to
worker satisfaction at work, while another and separate set of job characteristics
lead to dissatisfaction at work. Thus, satisfaction and dissatisfaction are not on a
continuum with one increasing as the other diminishes, but are independent
phenomena. This theory suggests that to improve job attitudes and productivity,
administrators must recognize and attend to both sets of characteristics and not
assume that an increase in satisfaction leads to an decrease in unpleasurable
dissatisfaction.

The two-factor, or motivation-hygiene theory, developed from data collected by

Herzberg from interviews with a large number of engineers and accountants in the
Pittsburgh area. From analyzing these interviews, he found that job characteristics
related to what an individual does — that is, to the nature of the work she performs
 — apparently have the capacity to gratify such needs as achievement,
competency, status, personal worth, and self-realization, thus making her happy
and satisfied. However, the absence of such gratifying job characteristics does not
appear to lead to unhappiness and dissatisfaction. Instead, dissatisfaction results
from unfavorable assessments of such job-related factors as company policies,
supervision, technical problems, salary, interpersonal relations on the job, and
working conditions. Thus, if management wishes to increase satisfaction on the
job, it should be concerned with the nature of the work itself — the opportunities it
presents for gaining status, assuming responsibility, and for achieving self-
realization. If, on the other hand, management wishes to reduce dissatisfaction,
then it must focus on the job environment— policies, procedures, supervision, and
working conditions If management is equally concerned with both (as is usually
the case), then managers must give attention to both sets of job factors.

The theory was based around interviews with 203 American accountants &
engineers in Pittsburgh, chosen because of their professions' growing importance
in the business world. The subjects were asked to relate times when they felt
exceptionally good or bad about their present job or any previous job, and to
provide reasons, and a description of the sequence of events giving rise to that
positive or negative feeling.

Two Factor Theory distinguishes between:

• Motivators (e.g. challenging work, recognition, responsibility) which give positive

satisfaction, arising from intrinsic conditions of the job itself, such as recognition,
achievement, or personal growth.

• Hygiene factors (e.g. status, job security, salary and fringe benefits) which do
not give positive satisfaction, although dissatisfaction results from their absence.
These are extrinsic to the work itself, and include aspects such as company
policies, supervisory practices, or wages/salary.
Essentially, hygiene factors are needed to ensure an employee is not dissatisfied.
Motivation factors are needed in order to motivate an employee to higher
performance, Herzberg also further classified our actions and how and why we do
them, for example, if you perform a work related action because you have to then
that is classed as movement, but if you perform a work related action because you
want to then that is classed as motivation.

Unlike Maslow, who offered little data to support his ideas, Herzberg and others
have presented considerable empirical evidence to confirm the motivation-hygiene
theory. Their work, however, has been criticized on methodological grounds.
Nevertheless, Herzberg and his associates have rendered a valuable service to
science and to management through their efforts to apply scientific methods to
understanding complex motivational problems at work and have stimulated others
to continue the search.
McClelland's Achievement Motivation Theory

David McClelland’s achievement motivation theory predicts that a person has

need for three things but people differ in degree in which the various needs
influence their behavior:

1. Need for achievement refers to an individual's desire for significant

accomplishment, mastering of skills, control, or high standards.

2. Need for power, referring to an individual's need to be in charge. There

are two kinds of power, social and personal. An example of personal
power is what drives most corporate leaders to seek those commands.
For example, Nelson Mandela likely commands social power. People with
these needs are most satisfied by seeing their environment move to a
certain direction due to their involvements and

3. Need for affiliation referring to a person's need to feel like he needs to

belong to a group, and the desire to be liked and accepted by others.
2) Douglas McGregor's Theory X and theory Y

Theory X and Theory Y are theories of human motivation created and developed
by Douglas McGregor at the MIT Sloan School of Management in the 1960s that
have been used in human resource management, organizational behavior,
organizational communication and organizational development. They describe
two very different attitudes toward workforce motivation. McGregor felt that
companies followed either one or the other approach. He also thought that the
key to connecting self-actualization with work is determined by the managerial
trust of subordinates.

Theory X

Under the assumptions of Theory X:

Employees inherently do not like work and whenever possible, will attempt to
avoid it.

Because employees dislike work, they have to be forced, coerced or threatened

with punishment to achieve goals.

Employees avoid responsibilities and do not work fill formal directions are issued.

Most workers place a greater importance on security over all other factors and
display little ambition.

In this theory, which many managers practice, management assumes employees

are inherently lazy and will avoid work if they can. They inherently dislike work.
Because of this, workers need to be closely supervised and comprehensive
systems of controls developed. A hierarchical structure is needed with narrow
span of control at each and every level. According to this theory, employees will
show little ambition without an enticing incentive program and will avoid
responsibility whenever they can. According to Michael J. Papa, if the
organizational goals are to be met, theory X managers rely heavily on threat and
coercion to gain their employee's compliance. Beliefs of this theory lead to
 mistrust, highly restrictive supervision, and a punitive atmosphere. The Theory X
manager tends to believe that everything must end in blaming someone. He or
she thinks all prospective employees are only out for themselves. Usually these
managers feel the sole purpose of the employee's interest in the job is money.
They will blame the person first in most situations, without questioning whether it
may be the system, policy, or lack of training that deserves the blame. A Theory
X manager believes that his or her employees do not really want to work, that
they would rather avoid responsibility and that it is the manager's job to structure
the work and energize the employee. One major flaw of this management style is
it is much more likely to cause Diseconomies of Scale in large businesses.

Theory Y

In contrast under the Assumptions of Theory Y:

 Physical and mental effort at work is as natural as rest or play.

 People do exercise self-control and self-direction and if they are
committed to those goals.
 Average human beings are willing to take responsibility and exercise
imagination, ingenuity and creativity in solving the problems of the
organization.
 That the way the things are organized, the average human being’s
brainpower is only partly used.

In this theory, management assumes employees may be ambitious, self-

motivated, and exercise self-control. It is believed that employees enjoy their
mental and physical work duties. According to Papa, to them work is as natural
as play. They possess the ability for creative problem solving, but their talents
are underused in most organizations. Given the proper conditions, theory Y
managers believe that employees will learn to seek out and accept responsibility
and to exercise self-control and self-direction in accomplishing objectives to
which they are committed. A Theory Y manager believes that, given the right
conditions, most people will want to do well at work. They believe that the
satisfaction of doing a good job is a strong motivation. Many people interpret
Theory Y as a positive set of beliefs about workers. A close reading of The
Human Side of Enterprise reveals that McGregor simply argues for managers to
be open to a more positive view of workers and the possibilities that this creates.
He thinks that Theory Y managers are more likely than Theory X managers to
develop the climate of trust with an employee that is required for human resource
development. It's here through human resource development that is a crucial
aspect of any organization. This would include managers communicating openly
with subordinates, minimizing the difference between superior-subordinate
relationships, creating a comfortable environment in which subordinates can
develop and use their abilities. This climate would include the sharing of decision
making so that subordinates have say in decisions that influence them.
 MOTIVATION AT WORKPLACE

Having a well motivated staff is essential to a productive and pleasant work

environment. As a manager, or leader, motivation must be one of your chief concerns.
Every one is motivated by something. When you go to the supermarket, you are
motivated by hunger; when you run, you are motivated by the desire to be healthy, etc.
So what motivates a person to work? Not just work, but work efficiently and loyally?
That depends on that individual’s personality. For people with an alpha personality,
recognition might be what drives them. Being the best at what you do is worth nothing
unless someone is there to see it. For others it could be money, others still
responsibility. Sometimes, it’s even as simple as acknowledging when someone has
done a good job. It makes them feel appreciated, and if they don’t get that at your place
of business, then they are just a commodity. Employees are your internal customers, in
a sense. You want the service and support to be the best in the world, because that’s
how it needs to be to keep your customers returning to you.

Many business managers today are not aware of the effects that motivation can (and
does) have on their business, and it is therefore important they learn and understand
the factors that determine positive motivation in the workplace. The size of your
business is irrelevant: whether you are trying to get the best out of fifty of your staff or
just one, everyone needs some form of motivation. Motivation is something that is
approached differently by different businesses and the responsibility of its integration
lies with all immediate supervisors of staff. However, it is the business owner who must
initiate motivation as a strategy to attain corporate goals.
SOME COMMON MYTHS ABOUT EMPLOYEE MOTIVATION

1. Myth Number One: "I can motivate people" Not really -- they have to
motivate themselves. You can't motivate people anymore than you can empower
them. Employees have to motivate and empower themselves. However, you can
set up an environment where they best motivate and empower themselves. The
key is knowing how to set up the environment for each of your employees.

2. Myth Number Two: -- "Money is a good motivator" Not really. Certain things
like money, a nice office and job security can help people from becoming less
motivated, but they usually don't help people to become more motivated. A key
goal is to understand the motivations of each of your employees.

3. Myth Number Three: "Fear is a damn good motivator" Fear is a great

motivator -- for a very short time. That's why a lot of yelling from the boss won't
seem to "light a spark under employees" for a very long time.

4. Myth Number Four: "I know what motivates me, so I know what motivates
my employees" Not really. Different people are motivated by different things. I
may be greatly motivated by earning time away from my job to spend more time
my family. You might be motivated much more by recognition of a job well done.
People are not motivated by the same things. Again, a key goal is to understand
what motivates each of your employees.

5. Myth Number Five: "Increased job satisfaction means increased job

performance" Research shows this isn't necessarily true at all. Increased job
satisfaction does not necessarily mean increased job performance. If the goals of
the organization are not aligned with the goals of employees, then employees
aren't effectively working toward the mission of the organization.

6. Myth Number Six: "I can't comprehend employee motivation -- it's a

science" Nah. Not true. There are some very basic steps you can take that will
go a long way toward supporting your employees to motivate themselves toward
increased performance in their jobs. (More about these steps is provided later on
in this article.)
 SEVEN RULES OF MOTIVATION

Rule #1 Set a major goal, but follows a path. The path has mini goals that go in many
directions. When you learn to succeed at mini goals, you will be motivated to challenge
grand goals.

Rule #2 Finish what you start. A half finished project is of no use to anyone. Quitting
is a habit. Develop the habit of finishing self-motivated projects.

Rule # 3 Socialize with others of similar interest. Mutual support is motivating. We

will develop the attitudes of our five best friends. If they are losers, we will be a loser. If
they are winners, we will be a winner. To be a cowboy we must associate with cowboys

Rule #4 learns how to learn. Dependency on others for knowledge supports the habit
of procrastination. Man has the ability to learn without instructors. In fact, when we learn
the art of self-education we will find, if not create, opportunity to find success beyond
our wildest dreams.

Rule #5 Harmonize natural talent with interest that motivates. Natural talent creates
motivation, motivation creates persistence and persistence gets the job done.

Rule #6 Increase knowledge of subjects that inspires. The more we know about a
subject, the more we want to learn about it. A self-propelled upward spiral develops.

Rule #7 Take risk. Failure and bouncing back are elements of motivation. Failure is a
learning tool. No one has ever succeeded at anything worthwhile without a string of
failures.
 STRATEGIES OF EMPLOYEE MOTIVATION

Giving employees more responsibility and decision-making authority increases their

realm of control over the tasks for which they are held responsible and better equips
them to carry out those tasks. As a result, feelings of frustration arising from being held
accountable for something one does not have the resources to carry out are diminished.
Energy is diverted from self-preservation to improved task accomplishment.

CREATIVITY & INNOVATION

At many companies, employees with creative ideas do not express them to management for
fear that their input will be ignored or ridiculed. Company approval and toeing the company line
have become so ingrained in some working environments that both the employee and the
organization suffer. When the power to create in the organization is pushed down from the top
to line personnel, employees who know a job, product, or service best are given the
opportunity to use their ideas to improve it. The power to create motivates employees and
benefits the organization in having a more flexible work force, using more wisely the
experience of its employees, and increasing the exchange of ideas and information among
employees and departments. These improvements also create an openness to change that
can give a company the ability to respond quickly to market changes and sustain a first mover
advantage

ONE MINUTE MANAGER

A contemporary bestseller aimed at managers who seek to make star performers of

their subordinates. To start with, the manager sets a goal, e.g. one page read in one
minute, and it is seen to be achieved by 'one minute' of praising or reprimand as the
case may be. But to be effective, these must be given
(a) promptly,

(b) in specific terms, and the behavior, rather than the person, should be praised or
reprimanded.

The concept is basic and it makes sense, although the book seeks to 'dramatize' it. 'One
minute' praising is seen to be the motivating force. Everyone is considered a winner,
though some people are disguised as losers, and the manager is extolled not to be
fooled by such appearances

MINIMIZE RULES & POLICIES

Every person is motivated. The challenge at work is to create an environment in which

people are motivated about work priorities. Too often, organizations fail to pay attention
to the employee relations, communication, recognition, and involvement issues that are
most important to people.

The first step in creating a motivating work environment is to stop taking actions that are
guaranteed to demotivate people. Identify and take the actions that will motivate people.
It’s a balancing act. Employers walk a fine line between meeting the needs of the
organization and its customers and meeting the needs of its internal staff. Do both well
and thrive.

We’ve got employees who, left to their own devices, will choose to do bad things. You
can’t trust supervisors to treat employees fairly and consistently either.

MONETARY INCENTIVES

For all the championing of alternative motivators, money still occupies a major place in
the mix of motivators. The sharing of a company's profits gives incentive to employees
to produce a quality product, perform a quality service, or improve the quality of a
process within the company. What benefits the company directly benefits the employee.
Monetary and other rewards are being given to employees for generating cost-savings
or process-improving ideas, to boost productivity and reduce absenteeism. Money is
effective when it is directly tied to an employee's ideas or accomplishments.
Nevertheless, if not coupled with other, non monetary motivators, its motivating effects
are short-lived. Further, monetary incentives can prove counterproductive if not made
available to all members of the organization.

OTHER INCENTIVES

Study after study has found that the most effective motivators of workers are non
monetary. Monetary systems are insufficient motivators, in part because expectations
often exceed results and because disparity between salaried individuals may divide
rather than unite employees. Proven non monetary positive motivators foster team
spirit and include recognition, responsibility, and advancement. Managers, who
recognize the "small wins" of employees, promote participatory environments, and treat
employees with fairness and respect will find their employees to be more highly
motivated. One company's managers brainstormed to come up with 30 powerful
rewards that cost little or nothing to implement. The most effective rewards, such as
letters of commendation and time off from work, enhanced personal fulfillment and self-
respect. Over the longer term, sincere praise and personal gestures are far more
effective and more economical than awards of money alone. In the end, a program that
combines monetary reward systems and satisfies intrinsic, self-actualizing needs may
be the most potent employee motivator.
 CONCLUSION
Motivated employees are crucial to a company's success-this has never been truer than
today, when margins are thin (or nonexistent) and economic recovery remains elusive.
These hard bottom-line realities may also mean that managers can't rely as much as
they might have in the past on using financial incentives to drive employee engagement.
But, if the company has a solid approach to talent management, a bad manager can
undermine it in his unit. On the flip side, smart and empathetic managers can overcome
a great deal of corporate mismanagement while creating enthusiasm and commitment
within their units. While individual managers can't control all leadership decisions, they
can still have a profound influence on employee motivation.

The most important thing is to provide employees with a sense of security, one in which
they do not fear that their jobs will be in jeopardy if their performance is not perfect and
one in which layoffs are considered an extreme last resort, not just another option for
dealing with hard times.

But security is just the beginning. When handled properly, each of the above mentioned
practices will play a key role in supporting your employees' goals for achievement,
equity, and camaraderie, and will enable them to retain the enthusiasm they brought to
their roles in the first place.
 BLIOGRAPHY

1) Principles of Management …………………… R. N. Gupta

2) Personnel Management ……………………….. C. B. Mamoria
3) Organisational Behaviour ……………………...K. Aswathappa