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  1. 1. Motivation
  2. 2. Motivation <ul><li>A drive to satisfy various types of wants / desires / needs / demands and similar other forces which in turn drives individual to perform and achieve. </li></ul><ul><li>A process of activating and energizing people to work willingly with zeal, confidence and cooperation for achieving common objectives: organisational goals </li></ul><ul><li>Motivation is a </li></ul><ul><ul><li>Psychological phenomenon </li></ul></ul><ul><ul><li>Situational </li></ul></ul><ul><ul><li>Complex </li></ul></ul>
  3. 3. Motivators <ul><li>Monetary </li></ul><ul><ul><li>Salary </li></ul></ul><ul><ul><li>Fringe benefits </li></ul></ul><ul><ul><li>Performance linked incentives </li></ul></ul><ul><li>Non-monetary </li></ul><ul><ul><li>Praise, felicitations, awards </li></ul></ul><ul><ul><li>Leaves, holidays </li></ul></ul><ul><li>Others </li></ul><ul><ul><li>Welfare </li></ul></ul><ul><ul><li>Recreation, social gathering </li></ul></ul><ul><ul><li>Canteen, cooperative </li></ul></ul><ul><ul><li>Loan facility </li></ul></ul>
  4. 4. Motivation Process Motive Action Releasing Tension Satisfaction Need/desire Reward Making effort Identifying tensions Attaining goals Setting goals Creates tension Feedback Process is continuous
  5. 5. Need Hierarchy Theory (Maslow) <ul><li>Most popular among all theories </li></ul><ul><li>Within every human being there exists a hierarchy of needs </li></ul><ul><ul><li>Lower order needs: satisfied externally </li></ul></ul><ul><ul><li>Higher order needs: satisfied internally </li></ul></ul>
  6. 6. Need Hierarchy Theory (Maslow) Physiological Needs Security Needs Social Needs Esteem Needs Self Actualisation Higher order needs Lower order needs Achieve self fulfillment Internal esteem factors Belongingness Security & protection Basic needs
  7. 7. Motivation-Hygiene Theory (Herzberg) <ul><li>Inquired the basic question: what do people want from their job? </li></ul><ul><li>People were asked to describe situations when they felt exceptionally good or bad. </li></ul><ul><li>Certain aspects related o consistent satisfaction whereas others to dissatisfaction </li></ul><ul><li>Herzberg concluded that opposite of ‘satisfaction’ is ‘no satisfaction’ and the opposite of ‘dissatisfaction’ is ‘no dissatisfaction’. </li></ul>Motivators Hygiene Factors Satisfaction No Satisfaction No Dissatisfaction Dissatisfaction
  8. 8. Motivation-Hygiene Theory (Herzberg) <ul><li>Elimination of dissatisfaction leads to ‘ no dissatisfaction’ and not ‘ satisfaction’ </li></ul><ul><li>These are hygiene factors </li></ul><ul><ul><li>Security, status, personal life, relations with subordinates/superiors/peers, salary, work conditions, company policy and administration </li></ul></ul><ul><li>Motivators are intrinsic factors </li></ul><ul><ul><li>Growth, advancement, responsibility, work itself, recognition, achievement </li></ul></ul>
  9. 9. ERG Theory (Alderfer) <ul><li>Reworked on Maslow’s need hierarchy t0 align with empirical research </li></ul><ul><li>Five needs clubbed into three groups of needs </li></ul><ul><ul><li>E xistence: basic material existence requirement </li></ul></ul><ul><ul><li>R elatedness: important interpersonal relationships </li></ul></ul><ul><ul><li>G rowth: personal development </li></ul></ul><ul><li>More than one need may co-exist at the same time </li></ul><ul><li>Not rigid progression </li></ul><ul><li>Frustration-regression dimension </li></ul><ul><ul><li>If gratification of higher level need is stifled, the desire to satisfy lower level need intensifies </li></ul></ul>
  10. 10. McClelland’s Theory needs <ul><li>Three needs </li></ul><ul><ul><li>Need for achievement (nAch) </li></ul></ul><ul><ul><ul><li>drive to excel, to succeed. </li></ul></ul></ul><ul><ul><li>Need for power (nPow) </li></ul></ul><ul><ul><ul><li>desire to command people </li></ul></ul></ul><ul><ul><li>Need for affiliation (nAff) </li></ul></ul><ul><ul><ul><li>need for friendship and closeness </li></ul></ul></ul>
  11. 11. McClelland’s Theory needs <ul><li>Matching need with job </li></ul><ul><li>High achievers </li></ul><ul><ul><li>Prefer personal responsibility for finding solutions </li></ul></ul><ul><ul><li>Seek rapid feedback on their performance </li></ul></ul><ul><ul><li>perform well when they have 0.5 probability of success </li></ul></ul><ul><ul><ul><li>Prefer neither low odds nor high odds </li></ul></ul></ul><ul><li>High need for power </li></ul><ul><ul><li>More concerned with prestige and status </li></ul></ul><ul><ul><li>Prefer competitive situations </li></ul></ul><ul><li>High need for affiliation </li></ul><ul><ul><li>Prefer cooperative situations involving high degree of mutual understanding </li></ul></ul>
  12. 12. Comparative Analysis of Need Theories Maslow Herzberg Alderfer McClelland Self Actualisation Motivators Growth Achievement Esteem Power Social Hygiene factors Relatedness Affiliation Safety Physiological Existence
  13. 13. Equity Theory (J Stacy Adams) <ul><li>Individuals compare own performance-outcome ratio with that of others. </li></ul><ul><li>People’s desire to perceive equity and avoid inequity in reward system </li></ul><ul><li>Equity in the system </li></ul><ul><li>Outcome by ‘A’ Outcome by ‘O’ </li></ul><ul><li>Input by ‘A’ Input by ‘O’ </li></ul><ul><li>‘ A’ : the perceiver </li></ul><ul><li>‘ O’ : the other person </li></ul>=
  14. 14. Equity Theory <ul><li>Inequity due to being under rewarded </li></ul><ul><li>Outcome by ‘A’ Outcome by ‘O’ </li></ul><ul><li>Input by ‘A’ Input by ‘O’ </li></ul><ul><li>‘ A’ : the perceiver </li></ul><ul><li>‘ O’ : the other person </li></ul><
  15. 15. Equity Theory <ul><li>Inequity due to being over rewarded </li></ul><ul><li>Outcome by ‘A’ Outcome by ‘O’ </li></ul><ul><li>Input by ‘A’ Input by ‘O’ </li></ul><ul><li>‘ A’ : the perceiver </li></ul><ul><li>‘ O’ : the other person </li></ul>>
  16. 16. Equity Theory <ul><li>Referents </li></ul><ul><li>Self inside: own experience within current organization in different situations </li></ul><ul><li>Self outside: own experience in a situation/position outside current organization </li></ul><ul><li>Other inside: Another individual/s within current organization </li></ul><ul><li>Other outside: Another individual/s outside current organization </li></ul>
  17. 17. Equity Theory Contd…. <ul><li>Motivation to reduce inequity </li></ul><ul><li>Change inputs </li></ul><ul><li>Change outputs </li></ul><ul><li>Change perception of self </li></ul><ul><li>Change perception of others </li></ul><ul><li>Change referent </li></ul><ul><li>Leave situation </li></ul>Motivation to maintain same level of outcome Comparison of self with others Equity Inequity
  18. 18. Equity Theory <ul><li>Focuses on </li></ul><ul><li>Distributive justice: perceived fairness of amount and allocation of rewards </li></ul><ul><ul><li>Affects employee’s motivation </li></ul></ul><ul><li>Procedural justice: perceived fairness of process used to determine distribution of rewards </li></ul><ul><ul><li>Affects employee’s faith in system and loyalty to organisation </li></ul></ul><ul><li>Efforts should be made to increase perception of p rocedural justice as it is likely to increase perception of distributive justice. </li></ul>
  19. 19. Expectancy Theory (Victor Vroom) <ul><li>Motivation is an Outcome of Expectancy, Valence and Instrumentality </li></ul><ul><li>Motivation= f (E,V,I) </li></ul><ul><li>People make effort to achieve something valuable to them provided they believe they will be successful. </li></ul><ul><li>Expectancy : probability of achieving the outcome </li></ul><ul><li>Valence : anticipated worth of outcome </li></ul><ul><li>Instrumentality: Skills and ability </li></ul>
  20. 20. Expectancy Theory Contd…. <ul><li>Effort Performance </li></ul>Effort to Performance (E-P) shows the perceived probability of giving a performance through certain effort . Influenced by self-efficacy belief. Performance to Outcome (P-O) influenced by perceived linkage between performance and reward Valence of Reward: importance of the rewards to individuals personal goals Outcome 2 Outcome 3 Valence of outcomes Outcome 1 E-P P-O Expectancy Expectancy
  21. 21. Expectancy Theory <ul><li>New Dimensions: </li></ul><ul><ul><li>Ability and Opportunity to Perform </li></ul></ul><ul><li>Performance is a function of ability, opportunity and motivation </li></ul><ul><li>P=f(A,O,M) </li></ul><ul><li>Absence of either will affect performance </li></ul>
  22. 22. Expectancy Theory (Organisational Implications) <ul><li>Design a work culture which </li></ul><ul><li>Creates equitable reward system </li></ul><ul><li>Ensures rewards are large enough </li></ul><ul><li>Reduces uncertainty of outcome </li></ul><ul><li>Enhances self efficacy </li></ul><ul><li>Provides opportunity to perform </li></ul>
  23. 23. Goal setting theory (Edwin Locke) <ul><li>Cognitive approach to motivation </li></ul><ul><li>Intentions to work toward a goal are major source of work motivation. </li></ul><ul><li>Goals tell an employee what needs to be done and with how much effort </li></ul><ul><li>Important aspects </li></ul><ul><ul><li>Goal specificity </li></ul></ul><ul><ul><li>Challenge in achieving the goal </li></ul></ul><ul><ul><li>Feedback on performance </li></ul></ul><ul><li>Assuming ability as given, difficult goals (if accepted) motivate more than easy goals do. </li></ul><ul><li>Participative goals help in increasing acceptance </li></ul>
  24. 24. Goal setting theory <ul><li>Factors influencing Goal performance relationship </li></ul><ul><li>Goal commitment </li></ul><ul><ul><li>Commitment to not abandon or lower the goal </li></ul></ul><ul><ul><ul><li>High when self set goals </li></ul></ul></ul><ul><ul><ul><li>When made public </li></ul></ul></ul><ul><ul><ul><li>Individual has high internal locus </li></ul></ul></ul><ul><li>Self efficacy </li></ul><ul><ul><li>Higher self efficacy - higher confidence - higher performance </li></ul></ul><ul><ul><li>Respond positively to negative feedback </li></ul></ul><ul><li>National culture </li></ul><ul><ul><li>Low power distance: belief in subordinates’ efficiency </li></ul></ul><ul><ul><li>Low uncertainty avoidance: seeking challenge </li></ul></ul>
  25. 25. Goal setting theory (Organisational Implications) <ul><li>Create an atmosphere that leads to higher performance </li></ul><ul><li>Believe that </li></ul><ul><ul><li>People are capable </li></ul></ul><ul><ul><li>Efficacious </li></ul></ul><ul><ul><li>Independent </li></ul></ul><ul><ul><li>Willing to accept challenging goals </li></ul></ul>
  26. 26. Reinforcement <ul><li>Behaviouristic approach to motivation </li></ul><ul><li>Continuation of desired behaviour depends upon reinforcement </li></ul><ul><li>Reinforcement of efforts toward keeping the work force motivated </li></ul><ul><li>Reinforcement helps in connecting motivational strategy (reward) with performance </li></ul>
  27. 27. Reinforcement Strategies Punishment Positive Reinforcement Extinction Negative Reinforcement Application Withdrawl Negative Positive
  28. 28. Reinforcement Schedule <ul><li>Continuous Accompanying each correct behaviour </li></ul><ul><li>Partial Accompanying some cases </li></ul><ul><li> Time Intervals </li></ul><ul><li> Ratio of Responses </li></ul>Fixed Variable Fixed Variable
  29. 29. Management by Objectives (MBO) <ul><li>A comprehensive system of management that integrates many key managerial activities in a systematic manner and that is consciously directed towards the effective and efficient achievement of organisational and individual objectives. </li></ul><ul><li>An overall philosophy, which concentrates on measurable goals, performance and results. </li></ul>
  30. 30. Management by Objectives (MBO) <ul><li>MBO is an appraisal system </li></ul><ul><li>A planning and control device </li></ul><ul><ul><li>Planning by objectives </li></ul></ul><ul><ul><li>Participative goal setting </li></ul></ul><ul><li>A motivational technique </li></ul><ul><ul><li>Compatibility of individual and organisational goals </li></ul></ul><ul><ul><li>People perform better when they know what is expected of them and correlate their personal goals to the organisational goals. </li></ul></ul>
  31. 31. MBO Process Enterprise objectives Planning Premises Key Result Areas Responsibilities Superiors’ Objectives Subordinates’ Objectives Performance Periodic Review Final Performance Final Review and Appraisal Corrective Measures Superordinate goals Feedback and monitoring
  32. 32. Management by Objectives (MBO) <ul><li>Major elements: </li></ul><ul><ul><li>Participative decision making </li></ul></ul><ul><ul><li>Tangible goals </li></ul></ul><ul><ul><li>Explicit time period </li></ul></ul><ul><ul><li>Performance feedback </li></ul></ul><ul><ul><li>Corrective measures </li></ul></ul>
  33. 33. MBO <ul><li>Merits </li></ul><ul><ul><li>Improved management </li></ul></ul><ul><ul><li>More efficient structure </li></ul></ul><ul><ul><li>Personal commitment </li></ul></ul><ul><ul><li>Motivational force </li></ul></ul><ul><ul><li>Effective control </li></ul></ul><ul><li>Demerits </li></ul><ul><ul><li>Difficulty in setting tangible goals </li></ul></ul><ul><ul><li>Danger of inflexibility </li></ul></ul><ul><ul><li>Non quantifiable goals may get ignored </li></ul></ul>
  34. 34. Application Perspective of Motivation <ul><li>No universal method of motivation </li></ul><ul><li>Organisations must first understand the people, structure, culture. </li></ul><ul><li>Theories are tentative and must be evolved according to environment. </li></ul>