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 affiliationtry to maintain pleasant relation ,understanding, help others ,consoling etc.iii) Achievement motive : People have intense desire of achieve
Development of Achievement motive:Experimented with people from USA .Italy, Poland , IndiaAchievement development program :i) How to think, talk ,eat like high achieverii) Set higher ,planned & realistic goalsiii) Knowledge about themselvesiv) Create esprit de corps (feeling of being proud & loyal)Result : successful and helpful people made money, expanded business,Even in India it was successful
ALDERFER’S ERG THEORY:He Thought need of Categorization of needsNeeds seems to be overlapping between psychological ,security , social needsThree needsi) Existence needs : Include psychological and safety needs of individualii) Relatedness need: involves relationship with others whom individual caresiii) Growth needs : feeling of being unique and achieve personal growth
Propositions : GROWTH NEEDS RELATED NEEDS EXISTENCE NEEDS
Porter-Lawler model of Motivation:Value of Satisfactionreward Perceived Ability to equitable Specific rewards work Intrinsic rewards Performance Efforts Accomplishment Extrinsic rewards Perception of The taskPerceivedeffort-rewardProbability
EQUITY THEORY:Based on :People compare their performance and rewards with othersThese two assumptions on which theory worksi) Individual put inputs for which they expect certain outcomeii) 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
2. UNDERPAID INEQUITY: Person’s outcome Others’ outcome < Person’s input Others’ input3. EQUITY : Person’s outcome Others’ outcome = Person’s input Others’ inputImpact 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
Reestablish the equity :1. Changing his inputs2. Changing his outcomes3. Changing perception about inputs and outcomes4. Changing inputs & outcomes of others5. Changing person for comparison6. Leaving the situationIMPLICATIONS :Need adequate considerationDifficult to asses perceptiontwo main questions 1. How does person choose comparison person ? 2. Which action person will take to reestablish ?
Carrot and stick theoryBased on “Principle of reinforcement”Carrot : e.g. money , promotion etcStick : e.g. presenting aversive and noxious consequence helps to overcome negative behaviorIn order to use stick more effective use following considerations :1. Make if effective so that we could get desired output2. Sometimes it may be temporary, negative behavior may reappear after some time3. Use it at right time4. Punishment should be administrated with care
McGregors Theory X & Y :Based on –action of motivating human being involves assumptions ,generalization , hypothetical relations to human behavior and human natureTHEORY X :(Managerial actions)1. Organizing the element of productive enterprise is management’sresponsibility2. Directing , motivating , controlling and modification change according toorganizational needs3. 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 possible5. Lacks ambition & dislikes responsibility6. Self centered , indifferent to organization needs7. They are gullible and not very bright
THEORY Y:1. Physical and mental efforts in work is same as play and rest. Avg. person does not dislikes the work2. Threat of punishment is not the only solution to bring change in behavior3. 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
Designing reward system:Reward – Anything which is given as return of good performanceTypes of rewards1. Intrinsic or Extrinsic2. Monetary or non-monetaryINTRINSIC : 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 taskEXTRINSIC : emerge from outside e.g. increase in pay, promotion praise etc.
IncentivesINCENTIVES : Barak & Smith : scheme or plan to motivate individual for goodperformance. 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
Financial IncentivesTypes of financial incentives:1. Productivity linked incentives : Earning varies proportional to output2. Performance based pay : applicable to manager as we can not measure work as per quantity3. Profit sharing : employees receive share fixed in advance of profit4. Co-partnership : alternative to profit sharing, employee become shareholder, participate in equity capital of company5. Stock option : USA -1960 in India 1990 by Infosys employee are given share of company, they will get money by appreciation of shares6. 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
Non-financial IncentivesSocio-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