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  1. 1. ASIA PACIFIC INSTITUTE OF MANAGEMENT OF STUDIES ASSIGNMENT ON HBPO SUBJECT: In Today’s Organisation Which Motivational Theory Do You Largely Find In Application BY- BISWAJIT GHOSH ROLL: H-12 A right way to motivate an employee is to win his heart!!!
  2. 2. Introduction In today's economy, more so in knowledge based industry IT, ITES/BPO, the biggest task in front of a HR Manager is to motivate and retain employees. All the attempts made in this direction are big failure and no one knows what is a route to employees' heart. At one time, employees were considered just another input into the production of goods and services. What perhaps changed this way of thinking about employees was research, referred to as the Hawthorne Studies, conducted by Elton Mayo from 1924 to 1932 (Dickson, 1973). This study found employees are not motivated solely by money and employee behavior is linked to their attitudes (Dickson, 1973). The Hawthorne Studies began the human relations approach to management, whereby the needs and motivation employees become the primary focus of managers. Defining Motivation Motivation has been defined as:  The psychological process that gives behavior purpose and direction (Kreitner, 1995);  A predisposition to behave in a purposive manner to achieve specific, unmet needs (Buford, Bedeian, & Lindner, 1995);  An internal drive to satisfy an unsatisfied need (Higgins, 1994);  And the will to achieve (Bedeian, 1993). For this article, motivation is operationally defined as the inner force that drives individuals to accomplish personal and organizational goals. In one sentence motivation means, the process that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal.
  3. 3. Why do we need to motivated employees?  Motivated employees are needed in our rapidly changing workplaces.  Motivated employees help organizations survive.  Motivated employees are more productive. To be effective, managers need to understand what motivates employees within the context of the roles they perform. Of all the functions a manager performs, motivating employees is arguably the most complex. This is due, in part, to the fact that what motivates employees changes constantly. Research suggests that as employees' income increases, money becomes less of a motivator. Also, as employees get older, interesting work becomes more of a motivator. Early Theories of Motivation Before considering the recent days techniques and values adapted by todays organization to motivate their empolyees, it’s so essential to understand what the motivation theory actually means. The 1950s were a fruitful period in the development of motivation concepts. Four specific theories were formulated during this period, which heavily attacked and now questionable in terms of validity, are probably still the best-known explanations for employee motivation.
  4. 4. Need Hierarchy Theory Abraham Maslow's hierarchy of human needs theory is the most widely discussed theory of motivation. The theory can be summarized as thus: Human beings have wants and desires which influence their behavior; only unsatisfied needs can influence behavior, satisfied needs cannot. Since needs are many, they are arranged in order of importance, from the basic to the complex. The person advances to the next level of needs only after the lower level need is at least minimally satisfied. The further the progress up the hierarchy, the more individuality, humanness and psychological health a person will show. The needs, listed from basic (lowest, earliest) to most complex (highest, latest) are as follows: Self actualization Esteem Social Safety and security Physiological. Theory X and Theory Y Douglas McGregor in his book, "The Human Side of Enterprise" published in 1960 has examined theories on behavior of individuals at work, and he has formulated two models which he calls Theory X and Theory Y. Theory X Assumptions: Theory X labeled as negative approach of human behavior. The average human being has an inherent dislike of work and will avoid it if he can. Because of their dislike for work, most people must be controlled and threatened before they will work hard enough. The average human prefers to be directed, dislikes responsibility, is unambiguous, and desires security above everything.
  5. 5. Theory Y Assumptions: Theory Y labeled as positive approach of human behavior. Under the theory Y, managers assume that employees can view work as being as natural as rest or play, and therefore average person can learnt to accept, and even seek, responsibility. Imagination, creativity, and ingenuity can be used to solve work problems by a large number of employees. Dual-Factor Theory Frederick Herzberg and his associates began their research into motivation during the 1950's, examining the models and assumptions of Maslow and others. The theory suggests that the opposite of satisfaction is not dissatisfaction, as was traditionally believed. Removing dissatisfying characteristics from a job doesn’t necessarily make the job satisfying. There are two types of motivators, one type which results in satisfaction with the job, and the other which merely prevents dissatisfaction. The two types are quite separate and distinct from one another. Herzberg called the factors which result in job satisfaction motivators and those that simply prevented dissatisfaction hygienes. Hygienes are simply factors that describe the conditions of work rather than the work itself. Herberg's point is that if you want to motivate people, you have to be concerned with the job itself and not simply with the surroundings. Hygienes, if applied effectively, can at best prevent dissatisfaction: if applied poorly, they can result in negative feelings about the job. Motivators are those things that allow for psychological growth and development on the job. They are closely related to the concept of self-actualization, involving a challenge, an opportunity to extend oneself to the fullest, to taste the pleasure of accomplishment, and to be recognized as having done something worthwhile. Herzberg goes further than Maslow, cutting the hierarchy off near the top and maintaining that motivation results only from some elements of esteem needs and self-actualization.
  6. 6. The Need for Achievement David McClelland states that achievement, power, and affiliation are three important needs that help explain motivation. The theory focuses on three needs, defined as follows:  The Needs For Achievement (nAch) is the drive to excel, to achieve in relation to a set of standards, to strive to succeed.  The Need For Affiliation (nAff) It can be a dominant motivating force affecting behavior and may manifest itself in many different ways.  The need for Power (nPow) motivation refers not to autocratic, tyrannical behavior but to a need to have some impact, to be influential and effective in achieving organizational goals.
  7. 7. THE NEW ERA OF MOTIVATIONAL THEORIES: Motivating the employees at present philosophy... After discussing the primitive motivation theories of earlier days, we can find that those theories have some limitation to understand present days magerial scenario. In now a days the work environment, the economic policies, and the psychological standards is so specific and also have been changed to a large extent. Business has been developed in an inter-intra-globalization model. With the going concern concept the level of work, the level of expertise is so far than the early days. In a situation Organizations have to implement a new thoughts of understanding the motivational theories. Employee motivation is enhanced most when organizations creatively and appropriately employ a multitude of motivators. Economic Rewards: Money is a primary motivator. While base salary remains the largest share of the total cash pie, cash incentive plans continue to grow in popularity. Special achievement incentive rewards, spot bonuses, and cash- equivalent rewards all play a role in the economic reward package. In many companies, stock-based incentive plans, once limited to top executives, are offered to all employees. We are seeing an explosion of creative ideas in the realm of economic rewards, although not all approaches motivate people. Promotions and Transfers: While having economic value, promotions also carry crucial social and psychological meaning (recognition and sense of accomplishment) that, for many, far outweigh additional money or perquisites. Opportunity to Grow: The chance to improve one's self is an enormously important source of motivation. Organizations that offer this advantage are in a win-win partnership with their employees. The company creates and maintains a talented workforce to use as a competitive weapon, and the employees sharpen their own competitive edge as they self-actualize. Talk about synergy.
  8. 8. Challenging and stimulating work: The nature of work as a source of motivation varies with personality. For some, detailed work involving technical tasks can be a turn-on; for others, fast-paced work with changing goals, roles and challenges is their dream job. But whatever the person-job match, the work itself proves every bit as important a motivator as economic rewards. Autonomy: Freedom to take action, to make decisions, to work independently, is one of the factors most valued by people. Autonomy is crucial to achieving a sense of self-worth. Autonomy strongly influences the decision of individuals to join and stay with an organization. Leadership: Leaders inspire people through their words and actions. By presenting a clear sense of purpose, offering a vision worth striving toward, and providing encouragement, leaders have the power to imbue people with hope, enthusiasm and determination. Goals: Goals are powerful motivators. Goals give people a clear sense of what is expected of them, offering challenge and opportunity. They can energize and inspire exceptional effort. Fun: Many work places are woefully devoid of smiles and laughter, yet a bit of humor goes a long way toward brightening the day and infusing spirit into the culture. Fun plays a vital role in motivation. The Great Idea Award: It is also important to find a way to reward or recognize employees whose suggestions help improve the operation. One option is to establish a Great Idea Award and give the recipient a customized certificate. Other options could be to give them a logo item, a cash award or even a day off. Managers at agencies that offer cash awards to employees who make money -saving suggestions should find out the procedures and use that mechanism whenever appropriate.
  9. 9. Here is some Firms find innovative ways to motivate employees: 1. Helping Employees Be Better Volunteers IBM provides a matching grant program that matches cash donations and time worked as a volunteer. While putting the process of tracking volunteer hours online, IBM went a step farther and created an interactive Web site devoted to helping staffers find volunteer organizations and be better volunteers. 2. Focusing Charity on What Moves Employees Progress Energy has provided support to a variety of charities over the years. But the company didn't feel it was making much of a difference. The company conducted a series of surveys and held focus group sessions to gain an understanding of which organizations its employees really cared about. 3. A sobering tour Many of the agencies that Triangle United Way provides funding to aren't backed by a national agency with a fancy PR campaign. They are small organizations helping the mentally disabled or sheltering abused women. As more people choose to direct their United Way funds to specific (and often well-known) agencies, those smaller organizations that get funding through the Community Care Fund suffered.
  10. 10. 4. Humor and Ingenuity Employed to Fund Food Bank Joe Freddoso, Director of Cisco's RTP site operations, has shaved his legs for charity. Other Cisco Systems employees have dyed their hair, or auctioned off weeks at their beach houses - anything to help raise funds for the Food Bank of Eastern and Central North Carolina. The Food Bank is the main Triangle charity that Cisco Systems supports. Each fall, executives and staff members think of imaginative ways to get employees to donate. One year, engineers attached motors to rubber ducks and held races in the fountain in front of the main campus. Freddoso, director of Cisco's RTP site operations, says executives have scooped ice cream for donations. A 5k run held at lunchtime on a Friday each fall includes challenges from executives who pay out of their own pocket for anyone who can beat them. "We really try to make it fun," says Freddoso. The company's effort has netted between $350,000 and $450,000 a year for the Food Bank.
  11. 11. SUMMARY: In the explanation of mostly adapted todays motivational theory, the historical perspectives of Motivation theory and New thoughts of employees motivation can be summarize in: Need Theories: Already introduced four theories that focused on needs: Maslow’s hierarchy, ERG, McClelland’s needs, and the two factors theory. None of these has found widespread support, although the strongest of them is probably McCelland’s theory, particularly regarding the relationship between achievement and productivity. In general, need theories are not very valid explanations of motivation that are adapted by todays Organisation to motive their employees. Goal-Setting Theory: There is little dispute that clear and difficult goals lead to higher levels of employee productivity. This evidence leads us to conclude that goal- setting theory provides one of the most powerful explanations of this dependant variable. The theory, however, doesn’t address absenteeism, turnover, or satisfaction. Reinforcement Theory: this theory has an impressive record for predicting factors such as quality and quantity of work, persistence of effort, absenteeism, tardiness, and accident rates. It doesnot offer much insight into employee satisfaction or the decision to quit. Equity Theory: Equity theory deals with productivity, satisfaction, absence, and turnover variables. However, its strongest legacy probably is that it provided the spark for research on organizational justice, which has more support in the literature. Expectancy Theory: It focuses on performance variables. It has proved to offer a relativity powerful explanation of employee productivity, absenteeism, and turnover. But expectancy theory assumes that employees have few constraints on their decision discretion. Expectancy theory has some validity because for many behaviors people consider expected outcomes. However, the rational model goes only so far in explaining behavior.
  12. 12. Conclusion These are just a few suggested methods for encouraging employees to contribute their ideas for improving their organization. Implemented on their own, each of these practices would have limited impact. The key is to use a multifaceted approach that continually reinforces the fact that employees' ideas are welcome, valued, and rewarded. It would be awesome to see how much an organization's effectiveness could be improved if all managers were to systematically seek out and implement these kinds of suggestions from front-line employees. By helping your management team optimize employee emotions, you will be helping your organization make a significant impact on the primary sources of competitive advantage in today's marketplace. To evaluate in briefly, any organization can’t adapt one single motivation techniques Or it its tough to determine what motivate employees in their field of job. It’s actually not like that. Organizations have to take different motivation theories to evaluate their employees because they have dissimilar needs in various diversity. But it should also to be mentioned that motivation theory adapted by today’s Organisation in too some extent depends on the classification of the business. Such as highly product oriented Organisation will must emphasis on goal-setting theory or highly customer satifactionary Organisation would like to concentrate on the equity theory. For example, according to NTPC’s CHAIRMAN and Managing Director C.P. Jain, the best way to motivate anyone is to let him/her know that performance will be rewarded. We treated our human resources as long term assets of the Organisation. NTPC adapted new theories of motivation. The company taking care of medical expenses even post retirement. After a hard day’s work, employees have the option of unwinding by playing pool or sweating it out in the gym.