2. McCLELLAND’S NEED THEORY :
David McClelland-Psychologist –Harvard University.
Indentified three types of basic needs:
i) Power Motive: ability to influence or induce
What he observed?
ii) Affiliation motive : likes to interact and be with other’s where
they belong and accepted.
people with high need of affiliation
try to maintain pleasant relation ,understanding, help others ,
consoling etc.
iii) Achievement motive : People have intense desire of achieve
3. Development of Achievement motive:
Experimented with people from USA .Italy, Poland , India
Achievement development program :
i) How to think, talk ,eat like high achiever
ii) Set higher ,planned & realistic goals
iii) Knowledge about themselves
iv) Create esprit de corps (feeling of being proud & loyal)
Result :
successful and helpful people made money, expanded
business,
Even in India it was successful
4. ALDERFER’S ERG THEORY:
He Thought need of Categorization of needs
Needs seems to be overlapping between psychological ,
security , social needs
Three needs
i) Existence needs : Include psychological and safety needs of
individual
ii) Relatedness need: involves relationship with others whom
individual cares
iii) Growth needs : feeling of being unique and achieve personal
growth
7. Porter-Lawler model of Motivation:
Value of Satisfaction
reward
Perceived
Ability to equitable
Specific rewards
work
Intrinsic
rewards
Performance
Efforts
Accomplishment
Extrinsic
rewards
Perception of
The task
Perceived
effort-reward
Probability
8. EQUITY THEORY:
Based on :People compare their performance and rewards with others
These two assumptions on which theory works
i) Individual put inputs for which they expect certain outcome
ii) Individual decides, particular exchange is satisfactory or not by
comparing with others and then try to rectify the difference .
Three cases of are possible :
1. OVERPAID INEQUITY:
Person’s outcome Others’ outcome
>
Person’s input Others’ input
9. 2. UNDERPAID INEQUITY:
Person’s outcome Others’ outcome
<
Person’s input Others’ input
3. EQUITY :
Person’s outcome Others’ outcome
=
Person’s input Others’ input
Impact of inequity :
1. Creates Tension
2. amount of tension = amount of inequity
3. person will try to reduce tension
4. strength of motivation of reducing inequity = perceived inequity
10. Reestablish the equity :
1. Changing his inputs
2. Changing his outcomes
3. Changing perception about inputs and outcomes
4. Changing inputs & outcomes of others
5. Changing person for comparison
6. Leaving the situation
IMPLICATIONS :
Need adequate consideration
Difficult to asses perception
two main questions
1. How does person choose comparison person ?
2. Which action person will take to reestablish ?
11. Carrot and stick theory
Based on “Principle of reinforcement”
Carrot : e.g. money , promotion etc
Stick : e.g. presenting aversive and noxious consequence
helps to overcome negative behavior
In order to use stick more effective use following considerations :
1. Make if effective so that we could get desired output
2. Sometimes it may be temporary, negative behavior may
reappear after some time
3. Use it at right time
4. Punishment should be administrated with care
12. McGregor's Theory X & Y :
Based on –action of motivating human being involves assumptions ,
generalization , hypothetical relations to human behavior and human nature
THEORY X :
(Managerial actions)
1. Organizing the element of productive enterprise is management’s
responsibility
2. Directing , motivating , controlling and modification change according to
organizational needs
3. Without intervention people becomes passive or resistant to change –
that’s why they persuaded , rewarded , punished , according to their efforts
(Human Nature)
4. Avg. man indolent- works little as possible
5. Lacks ambition & dislikes responsibility
6. Self centered , indifferent to organization needs
7. They are gullible and not very bright
13. THEORY Y:
1. Physical and mental efforts in work is same as play and rest. Avg.
person does not dislikes the work
2. Threat of punishment is not the only solution to bring change in
behavior
3. Reward should direct efforts towards organizational goals. Reward
should be related to self actualization and satisfaction of ego.
4. Avoidance of responsibility , lack of ambition are generally
consequences of experience not inherent human characteristics.
5. Capacity of creativity is widely distributed not narrowly.
6. Under modern industrial life ,potential of human only partially
utilized
14. Designing reward system:
Reward –
Anything which is given as return of good performance
Types of rewards
1. Intrinsic or Extrinsic
2. Monetary or non-monetary
INTRINSIC : emerge from work performance e.g. accomplishment etc
4 ways to achieve
1. Choice : opportunity to select task
2. Competence : feeling of accomplishment
3. Meaningfulness : opportunity to select worthy task
4. Progress : people make significant advancement in task
EXTRINSIC : emerge from outside e.g. increase in pay, promotion praise etc.
15. Incentives
INCENTIVES :
Barak & Smith : scheme or plan to motivate individual for good
performance.
incentives cab be both monetary and non-monetary.
Financial Incentive :
Objective to design incentive
1. Useful for securing utilization, better production & performance
control
2. should not affect organization financial cost.
Points to remember while using Money as motivator :
1. Cultural characteristic determine the tendency
2. alternative plan for others
3. same performance same money
4.incentive should be significant
16. Financial Incentives
Types of financial incentives:
1. Productivity linked incentives : Earning varies proportional to output
2. Performance based pay : applicable to manager as we can not measure
work as per quantity
3. Profit sharing : employees receive share fixed in advance of profit
4. Co-partnership : alternative to profit sharing, employee become
shareholder, participate in equity capital of company
5. Stock option : USA -1960
in India 1990 by Infosys
employee are given share of company, they will get money by
appreciation of shares
6. Retirement plans:
i) Provident Fund : 8.33 % wage/month after retirement
ii) pension scheme : after minimum years of service
iii) Gratuity : after termination of their job , payable at 15
days
17. Non-financial Incentives
Socio-psychological needs , those who are not satisfied with money.
Types of Non-financial Incentives:
1. Individual Incentives :
i) Status :
ii) Promotion :
iii) Responsibility :
iv) Making work more pleasant :
v) Recognition of work :
vi) Job security :
2. Collective Incentive :
i) Social importance for work : they get feeling that they are important ,
praise
ii) Team spirit : better co-ordination and co-operation lead to maximum
effort
iii) informal groups : provide social satisfaction , you should know whether
it is detrimental or helpful
