The document discusses different theories of motivation. It provides definitions and explanations of several motivation theories: 1. Hertzberg's Two-Factor Theory proposes there are motivator and hygiene factors that influence satisfaction and motivation. Motivator factors like achievement and recognition increase satisfaction, while hygiene factors like salary and working conditions prevent dissatisfaction if absent. 2. Maslow's Hierarchy of Needs suggests people must satisfy basic needs before pursuing higher level needs of esteem and self-actualization. Meeting each level of needs motivates pursuing the next. 3. The Hawthorne Effect found that simply being observed in studies improved worker productivity, not just physical changes, as workers felt more valued from attention.

1. Unit 4- Functions of Management:
Part-II

2. Motivation
A willingness to expend energy to achieve a goal or reward. It is a
force that activates dormant energies and sets in motion the
action of the people. It is the function that kindles a burning
passion for action among the human beings of an organisation.
Motivation is a psychological phenomena which generates within
an individual. A person feels the lack of certain needs, to satisfy
which he feels working more. The need satisfying ego motivates
a person to do better than he normally does.

4. From definitions given earlier the
following inferences can be derived:
• Motivation is an inner feeling which energizes a
person to work more.
• The emotions or desires of a person prompt him for
doing a particular work.
• There are unsatisfied needs of a person which
disturb his equilibrium.
• A person moves to fulfill his unsatisfied needs by
conditioning his energies.
• There are dormant energies in a person which are
activated by channelizing them into actions.

5. Importance of Motivation
• Puts human resources into action-Every concern requires physical,
financial and human resources to accomplish the goals. It is through
motivation that the human resources can be utilized by making full
use of it. This can be done by building willingness in employees to
work. This will help the enterprise in securing best possible
utilization of resources.
• Improves level of efficiency of employees-The level of a
subordinate or a employee does not only depend upon his
qualifications and abilities. For getting best of his work
performance, the gap between ability and willingness has to be
filled which helps in improving the level of performance of
subordinates. This will result into-
– Increase in productivity,
– Reducing cost of operations, and

6. • Leads to achievement of organizational goals-The
goals of an enterprise can be achieved only when the
following factors take place :-There is best possible
utilization of resources,There is a co-operative work
environment, The employees are goal-directed and
they act in a purposive manner,Goals can be
achieved if co-ordination and co-operation takes
place simultaneously which can be effectively done
through motivation.

7. • Builds friendly relationship-Motivation is an important factor
which brings employees satisfaction. This can be done by
keeping into mind and framing an incentive plan for the
benefit of the employees. This could initiate the following
things:
• Monetary and non-monetary incentives,
• Promotion opportunities for employees,
• Disincentives for inefficient employees.

8. • Leads to stability of work force-Stability of workforce is very
important from the point of view of reputation and goodwill
of a concern. The employees can remain loyal to the
enterprise only when they have a feeling of participation in
the management. The skills and efficiency of employees will
always be of advantage to employees as well as employees.
This will lead to a good public image in the market which will
attract competent and qualified people into a concern. As it is
said, “Old is gold” which suffices with the role of motivation
here, the older the people, more the experience and their
adjustment into a concern which can be of benefit to the
enterprise.

9. To Sum up
Motivation is important to an individual as:
• Motivation will help him achieve his personal goals.
• If an individual is motivated, he will have job satisfaction.
• Motivation will help in self-development of individual.
• An individual would always gain by working with a dynamic
team.

10. Motivation is important to a business as: The more motivated
the employees are, the more empowered the team is.
• The more is the team work and individual employee
contribution, more profitable and successful is the business.
• During period of amendments, there will be more adaptability
and creativity.
• Motivation will lead to an optimistic and challenging attitude
at work place.

11. Theories of Motivation
• Hertzberg’s Two-Factor Theory
• Maslow’s Hierarchy of Needs
• Hawthorne Effect
• Expectancy Theory
• Three-Dimensional Theory of Attribution

12. Hertzberg’s Two-Factor Theory
• The Two-Factor Theory of motivation (otherwise known as dual-
factor theory or motivation-hygiene theory) was developed by
psychologist Frederick Herzberg in the 1950s.Analysing the
responses of 200 accountants and engineers who were asked about
their positive and negative feelings about their work, Herzberg
found 2 factors that influence employee motivation and
satisfaction…
Motivator factors – Simply put, these are factors that lead to
satisfaction and motivate employees to work harder. Examples might
include enjoying your work, feeling recognised and career progression.
Hygiene factors – These factors can lead to dissatisfaction and a lack
of motivation if they are absent. Examples include salary, company
policies, benefits, relationships with managers and co-workers.

13. • According to Herzberg’s findings, while motivator
and hygiene factors both influenced motivation, they
appeared to work completely independently of each
other…
• While motivator factors increased employee
satisfaction and motivation, the absence of these
factors didn’t necessarily cause dissatisfaction.
Likewise, the presence of hygiene factors didn’t
appear to increase satisfaction and motivation but
their absence caused an increase in dissatisfaction.

14. How to apply it to the workplace
• This theory implies that for the happiest and most productive
workforce, you need to work on improving both motivator and
hygiene factors.To help motivate your employees, make sure they
feel appreciated and supported. Give plenty of feedback and make
sure your employees understand how they can grow and progress
through the company.
• To prevent job dissatisfaction, make sure that your employees feel
that they are treated right by offering them the best possible
working conditions and fair pay. Make sure you pay attention to
your team and form supportive relationships with them.
• Don’t forget that all of your employees are different and what
motivates one person might not motivate another. Paul Hebert of
Symbolist believes that benefits packages should not be one-size-
fits all…

15. Maslow’s Hierarchy of Needs
• The Hierarchy of Needs theory was coined by
psychologist Abraham Maslow in his 1943
paper “A Theory of Human Motivation”.The
crux of the theory is that individuals’ most
basic needs must be met before they become
motivated to achieve higher level needs.

17. Physiological – these needs must be met in order for a person to
survive, such as food, water and shelter.
Safety – including personal and financial security and health and
wellbeing.
Love/belonging – the need for friendships, relationships and family.
Esteem – the need to feel confident and be respected by others.
Self-actualisation – the desire to achieve everything you possibly can
and become the most that you can be.
According to the hierarchy of needs, you must be in good health, safe
and secure with meaningful relationships and confidence before you
are able to be the most that you can be.

18. How to apply it to the workplace
• Chip Conley, founder of the Joie de Vivre hotel chain and Head of
Hospitality at Airbnb, used the Hierarchy of Needs pyramid to
transform his business. According to Chip, many managers struggle
with the abstract concept of self actualization and so focus on lower
levels of the pyramid instead.
• Conley found one way of helping with higher levels was to help his
employees understand the meaning of their roles during a staff
retreat…
• “In one exercise, we got groups of eight housekeepers at a table
and asked an abstract question: if someone from Mars came down
and saw what you were doing as a housekeeper in a hotel, what
name would they call you? They came up with “The Serenity
Sisters,” “The Clutter Busters,” and “The Peace of Mind Police.”

19. • There was a sense that people were doing more than just cleaning a room.
They were creating a space for a traveler who was far away from home to
feel safe and protected.”
• Conley’s team were able to realise the importance of their job to the
company and to the people they were helping. By showing them the value
of their roles, the team were able to feel respected and motivated to work
harder.
• In order to get the most out of your team, you should also make sure you
support them in other aspects of their lives outside work. Perhaps you
could offer flexible working hours to give employees time to focus on their
families and make sure they are paid fairly to help them feel financially
stable.

20. Hawthorne Effect
• The Hawthorne Effect was first described by Henry A. Landsberger in 1950
who noticed a tendency for some people to work harder and perform
better when they were being observed by researchers.
• The Hawthorne Effect is named after a series of social experiments on the
influence of physical conditions on productivity at Western Electric’s
factory at Hawthorne, Chicago in the 1920s and 30s.
• The researchers changed a number of physical conditions over the course
of the experiments including lighting, working hours and breaks. In all
cases, employee productivity increased when a change was made. The
researchers concluded that employees became motivated to work harder
as a response to the attention being paid to them, rather than the actual
physical changes themselves.

21. How to apply it to the workplace
• The Hawthorne Effect studies suggest that employees will work
harder if they know they’re being observed. While I don’t
recommend hovering over your employees watching them all day,
you could try providing regular feedback, letting your team know
that you know what they’re up to and how they’re doing.
• Showing your employees that you care about them and their
working conditions may also motivate them to work harder.
Encourage your team to give you feedback and suggestions about
their workspace and development.

22. Expectancy Theory
• Expectancy Theory proposes that people will choose how to
behave depending on the outcomes they expect as a result of
their behaviour. In other words, we decide what to do based
on what we expect the outcome to be. At work, it might be
that we work longer hours because we expect a pay rise.
• However, Expectancy Theory also suggests that the process by
which we decide our behaviours is also influenced by how
likely we perceive those rewards to be. In this instance,
workers may be more likely to work harder if they had been
promised a pay rise (and thus perceived that outcome as very
likely) than if they had only assumed they might get one (and
perceived the outcome as possible but not likely)

23. Expectancy Theory is based on three elements:
Expectancy – the belief that your effort will
result in your desired goal. This is based on your
past experience, your self confidence and how
difficult you think the goal is to achieve.
Instrumentality – the belief that you will
receive a reward if you meet performance
expectations.
Valence – the value you place on the reward.

24. • Therefore, according to Expectancy Theory,
people are most motivated if they believe that
they will receive a desired reward if they hit
an achievable target. They are least motivated
if they don’t want the reward or they don’t
believe that their efforts will result in the
reward.

25. How to apply it to the workplace
• The key here is to set achievable goals for your
employees and provide rewards that they
actually want.
• Rewards don’t have to come in the form of
pay rises, bonuses or all-expenses paid nights
out (although I find these are usually
welcomed!) Praise, opportunities for
progression and “employee of the month”
style rewards can all go a long way in
motivating your employees.

26. Three-Dimensional Theory of Attribution
• Attribution Theory explains how we attach meaning to our own,
and other people’s, behaviour. There are a number of theories
about attribution.
• Bernard Weiner’s Three-Dimensional theory of attribution assumes
that people try to determine why we do what we do. According to
Weiner, the reasons we attribute to our behaviour can influence
how we behave in the future.
• For example, a student who fails an exam could attribute their
failure to a number of factors and it’s this attribution that will affect
their motivation in the future.Weiner theorised that specific
attributions (e.g. bad luck, not studying hard enough) were less
important than the characteristics of that attribution. According to
Weiner, there are three main characteristics of attributions that can
affect future motivation.

27. • Stability – how stable is the attribution? For example, if the
student believes they failed the exam because they weren’t
smart enough, this is a stable factor. An unstable factor is less
permanent, such as being ill.According to Weiner, stable
attributions for successful achievements, such as passing
exams, can lead to positive expectations, and thus higher
motivation, for success in the future.However, in negative
situations, such as failing the exam, stable attributions can
lead to lower expectations in the future.

28. • Locus of control – was the event caused by an internal or an
external factor?
• For example, if the student believes it’s their own fault they
failed the exam, because they are innately not smart enough
(an internal cause), they may be less motivated in the future.
If they believed an external factor was to blame, such as poor
teaching, they may not experience such a drop in motivation.
• Controllability – how controllable was the situation? If an
individual believes they could have performed better, they
may be less motivated to try again in the future than
someone who believes they failed because of factors outside
of their control.

29. How to apply it to the workplace
• Weiner’s Three-Dimensional theory of attribution has
implications for employee feedback.
• Make sure you give your employees specific feedback, letting
them know that you know they can improve and how they
can about it. This, in theory, will help prevent them from
attributing their failure to an innate lack of skill and see that
success is controllable if they work harder or use different
strategies.
• You could also praise your employees for showing an
improvement, even if the outcome was still not correct. For
example, you might praise someone for using the correct
methodology even though the results weren’t what you
wanted. This way, you are encouraging employees to attribute
the failure to controllable factors, which again, can be

30. Leadership
• Leadership is a process by which an executive can direct, guide and
influence the behavior and work of others towards accomplishment of
specific goals in a given situation. Leadership is the ability of a manager to
induce the subordinates to work with confidence and zeal.
• Leadership is the potential to influence behaviour of others. It is also
defined as the capacity to influence a group towards the realization of a
goal. Leaders are required to develop future visions, and to motivate the
organizational members to want to achieve the visions.
• According to Keith Davis, “Leadership is the ability to persuade others to
seek defined objectives enthusiastically. It is the human factor which binds
a group together and motivates it towards goals.”

31. Characteristics of Leadership
• It is a inter-personal process in which a manager is into influencing
and guiding workers towards attainment of goals.
• It denotes a few qualities to be present in a person which includes
intelligence, maturity and personality.
• It is a group process. It involves two or more people interacting with
each other.
• A leader is involved in shaping and moulding the behaviour of the
group towards accomplishment of organizational goals.
• Leadership is situation bound. There is no best style of leadership. It
all depends upon tackling with the situations.

32. Types of Leadership
• Democratic Leadership
• Autocratic Leadership
• Laissez-Faire Leadership
• Strategic Leadership
• Transformational Leadership
• Transactional Leadership
• Coach-Style Leadership
• Bureaucratic Leadership

33. Democratic Leadership
Commonly Effective
• Democratic leadership is exactly what it sounds like -- the
leader makes decisions based on the input of each team
member. Although he or she makes the final call, each
employee has an equal say on a project's direction.
• Democratic leadership is one of the most effective leadership
styles because it allows lower-level employees to exercise
authority they'll need to use wisely in future positions they
might hold. It also resembles how decisions can be made in
company board meetings.

34. Autocratic Leadership
Rarely Effective
• Autocratic leadership is the inverse of
democratic leadership. In this leadership style,
the leader makes decisions without taking
input from anyone who reports to them.
Employees are neither considered nor
consulted prior to a direction, and are
expected to adhere to the decision at a time
and pace stipulated by the leader.

35. Laissez-Faire Leadership
Sometimes Effective
• The French term "laissez faire" literally translates to "let them
do," and leaders who embrace it afford nearly all authority to
their employees.
• In a young startup, for example, you might see a laissez-faire
company founder who makes no major office policies around
work hours or deadlines. They might put full trust into their
employees while they focus on the overall workings of
running the company.
• Although laissez-faire leadership can empower employees by
trusting them to work however they'd like, it can limit their
development and overlook critical company growth
opportunities. Therefore, it's important that this leadership
style is kept in check.

36. Strategic Leadership
Commonly Effective
• Strategic leaders sit at the intersection between a
company's main operations and its growth
opportunities. He or she accepts the burden of
executive interests while ensuring that current
working conditions remain stable for everyone
else.This is a desirable leadership style in many
companies because strategic thinking supports
multiple types of employees at once. However,
leaders who operate this way can set a dangerous
precedent with respect to how many people they can
support at once, and what the best direction for the
company really is if everyone is getting their way at

37. Transformational Leadership
Sometimes Effective
• Transformational leadership is always "transforming" and
improving upon the company's conventions. Employees might
have a basic set of tasks and goals that they complete every
week or month, but the leader is constantly pushing them
outside of their comfort zone.
• When starting a job with this type of leader, all employees
might get a list of goals to reach, as well as deadlines for
reaching them. While the goals might seem simple at first,
this manager might pick up the pace of deadlines or give you
more and more challenging goals as you grow with the
company.
• This is a highly encouraged form of leadership among growth-
minded companies because it motivates employees to see
what they're capable of. But transformational leaders can risk

38. Transactional Leadership
Sometimes Effective
• Transactional leaders are fairly common today. These
managers reward their employees for precisely the work they
do. Transactional leadership helps establish roles and
responsibilities for each employee, but it can also encourage
bare-minimum work if employees know how much their
effort is worth all the time. This leadership style can use
incentive programs to motivate employees, but they should
be consistent with the company's goals and used in addition
to unscheduled gestures of appreciation.

39. Coach-Style Leadership
Commonly Effective
• Similarly to a sports team's coach, this leader
focuses on identifying and nurturing the
individual strengths of each member on his or
her team. They also focus on strategies that
will enable their team work better together.
This style offers strong similarities to strategic
and democratic leadership, but puts more
emphasis on the growth and success
of individual employees.

40. • A manager with this leadership style might
help employees improve on their strengths by
giving them new tasks to try, offering them
guidance, or meeting to discuss constructive
feedback. They might also encourage one or
more team members to expand on
their strengths by learning new skills from
other teammates.

41. Bureaucratic Leadership
Rarely Effective
• Bureaucratic leaders go by the books. This style of
leadership might listen and consider the input of
employees -- unlike autocratic leadership -- but the
leader tends to reject an employee's input if it
conflicts with company policy or past practices.
• You may run into a bureaucratic leader at a larger,
older, or traditional company. At these companies,
when a colleague or employee proposes a strong
strategy that seems new or non-traditional,
bureaucratic leaders may reject it. Their resistance
might be because the company has already
been successful with current processes and trying

42. Qualities of a Good Leader
• Honesty and Integrity
• Confidence
• Inspiring
• Commitment and Passion
• Communicator
• Decision Making Capabilities
• Accountability
• Delegation and Empowerment
• Creativity and Innovation
• Empathy

43. Controlling
• Control, or Controlling, is one of the managerial
functions just
like planning, organizing, staffing and directing. It is
an important function because:
• it helps to check the errors,
• helps in taking the correct actions so that there is
a minimum deviation from standards and,
• in achieving the stated goals of the organization in
the desired manner. According to modern concepts,
control is a foreseeing action. Whereas the earlier
concept of control was used only when errors were
detected.

44. Importance of Controlling
• Accomplishing Organizational Goals-The controlling function is
an accomplishment of measures that further makes progress
towards the organizational goals & brings to light the
deviations, & indicates corrective action. Therefore it helps in
guiding the organizational goals which can be achieved by
performing a controlling function.
• Judging Accuracy of Standards- A good control system enables
management to verify whether the standards set are accurate
& objective. The efficient control system also helps in keeping
careful and progress check on the changes which help in taking
the major place in the organization & in the environment and
also helps to review & revise the standards in light of such
changes.

45. • Making Efficient use of Resources-Another important function
of controlling is that in this, each activity is performed in such
manner so an in accordance with predetermined standards &
norms so as to ensure that the resources are used in the most
effective & efficient manner for the further availability of
resources.
• Improving Employee Motivation-Another important function
is that controlling help in accommodating a good control
system which ensures that each employee knows well in
advance what they expect & what are the standards of
performance on the basis of which they will be appraised.
Therefore it helps in motivating and increasing their potential
so to make them & helps them to give better performance.

46. • Ensuring Order & Discipline-Controlling creates an
atmosphere of order & discipline in the organization which
helps to minimize dishonest behavior on the part of the
employees. It keeps a close check on the activities of
employees and the company can be able to track and find out
the dishonest employees by using computer monitoring as a
part of their control system.
• Facilitating Coordination in Action-The last important function
of controlling is that each department & employee is
governed by such pre-determined standards and goals which
are well versed and coordinated with one another. This
ensures that overall organizational objectives are
accomplished in an overall manner.

47. Techniques of Business Controlling
1) Traditional Method- Personal observation
• Statistical reports
• Break-even analysis
• Budgetary control
2) Modern Method- Return on investment
• Ratio analysis
• Responsibility accounting
• Management audit
• PERT & CPM

48. • Personal Observation-This is the most traditional method of
control. Personal observation is one of those techniques
which enables the manager to collect the information as first-
hand information.
• It also creates a phenomenon of psychological pressure on the
employees to perform in such a manner so as to achieve well
their objectives as they are aware that they are being
observed personally on their job. However, it is a very time-
consuming exercise & cannot effectively be used for all kinds
of jobs.

49. • Statistical Reports-Statistical reports can be defined
as an overall analysis of reports and data which is
used in the form of averages, percentage, ratios,
correlation, etc., present useful information to the
managers regarding the performance of
the organization in various areas.
• This type of useful information when presented in
the various forms like charts, graphs, tables, etc.,
enables the managers to read them more easily &
allow a comparison to be made with performance in
previous periods & also with the benchmarks.

50. • Break-even Analysis-Breakeven analysis is a
technique used by managers to study the
relationship between costs, volume & profits.
It determines the overall picture of probable
profit & losses at different levels of activity
while analyzing the overall position.
• The sales volume at which there is no profit,
no loss is known as the breakeven point.
There is no profit or no loss.

51. • Budgetary Control-Budgetary control can be defined as
such technique of managerial control in which all
operations which are necessary to be performed are
executed in such a manner so as to perform and plan in
advance in the form of budgets & actual results are
compared with budgetary standards.
• Therefore, the budget can be defined as a quantitative
statement prepared for a definite future period of time
for the purpose of obtaining a given objective. It is also a
statement which reflects the policy of that particular
period. The common types of budgets used by an
organization.

52. Modern Techniques
• Return on Investment-Return on investment
(ROI) can be defined as one of the important
and useful techniques. It provides the basics
and guides for measuring whether or not
invested capital has been used effectively for
generating a reasonable amount of return.
ROI can be used to measure the overall
performance of an organization or of its
individual departments or divisions.

53. • Responsibility Accounting-Responsibility accounting
can be defined as a system of accounting in which
overall involvement of different sections, divisions &
departments of an organization are set up as
‘Responsibility centers’. The head of the center is
responsible for achieving the target set for his center.
Responsibility centers may be of the following types:
• Cost center
• Revenue center
• Profit center
• Investment center

54. • Management Audit-Management audit refers
to a systematic appraisal of the overall
performance of the management of an
organization. The purpose is to review the
efficiency &n effectiveness of management &
to improve its performance in future periods

55. • PERT & CPM-PERT (programmed evaluation &
review technique) & CPM (critical path method)
are important network techniques useful in
planning & controlling. These techniques,
therefore, help in performing various functions of
management like planning; scheduling &
implementing time-bound projects involving the
performance of a variety of complex, diverse &
interrelated activities.

56. Total Quality Management
• Total Quality Management is an extensive
and structured organization management
approach that focuses on continuous quality
improvement of products and services by
using continuous feedback. The objective of total
quality management is doing things right the first
time over and over again. This saves the organization
the time that is needed to correct poor work and
failed product and service implementations.

57. TQM- Principles

58. • Focus on customer-When using total quality
management it is of crucial importance to remember
that only customers determine the level of quality.
Whatever efforts are made with respect to training
employees or improving processes, only customers
determine, for example through evaluation or
satisfaction measurement, whether your efforts have
contributed to the continuous improvement of
product quality and services.

59. • Employee involvement-Employees are an
organization’s internal customers. Employee
involvement in the development of products
or services of an organization largely
determines the quality of these products or
services. Ensure that you have created a
culture in which employees feel they are
involved with the organization and its
products and services.

60. • Process centred-Process thinking and process handling
are a fundamental part of total quality management.
Processes are the guiding principle and people support
these processes based on basis objectives that are linked
to the mission, vision and strategy.
• Integrated systemFollowing principle Process centred, it
is important to have an integrated organization system
that can be modelled for example ISO 9000 or a company
quality system for the understanding and handling of the
quality of the products or services of an organization.

61. • Strategic and systematic approach-A strategic
plan must embrace the integration and quality
development and the development or services
of an organization.
• Decision-making based on facts-Decision-
making within the organization must only be
based on facts and not on opinions (emotions
and personal interests). Data should support
this decision-making process.

62. • Communication-A communication strategy must be
formulated in such a way that it is in line with the
mission, vision and objectives of the organization. This
strategy comprises the stakeholders, the level within the
organization, the communications channels, the
measurability of effectiveness, timeliness, etc.
• Continuous improvement-By using the right measuring
tools and innovative and creative thinking, continuous
improvement proposals will be initiated and
implemented so that the organization can develop into a
higher level of quality.

63. Coordination
Co-ordination is the unification, integration,
synchronization of the efforts of group members so as
to provide unity of action in the pursuit of common
goals. It is a hidden force which binds all the other
functions of management. According to Mooney and
Reelay, “Co-ordination is orderly arrangement of group
efforts to provide unity of action in the pursuit of
common goals”. According to Charles Worth, “Co-
ordination is the integration of several parts into an
orderly hole to achieve the purpose of understanding”.

64. • Co-ordination through Planning - Planning facilitates co-
ordination by integrating the various plans through
mutual discussion, exchange of ideas. e.g. - co-ordination
between finance budget and purchases budget.
• Co-ordination through Organizing - Mooney considers
co-ordination as the very essence of organizing. In fact
when a manager groups and assigns various activities to
subordinates, and when he creates department’s co-
ordination uppermost in his mind.

65. • Co-ordination through Staffing - A manager should bear in
mind that the right no. of personnel in various positions with
right type of education and skills are taken which will ensure
right men on the right job.
• Co-ordination through Directing - The purpose of giving
orders, instructions & guidance to the subordinates is served
only when there is a harmony between superiors &
subordinates.
• Co-ordination through Controlling - Manager ensures that
there should be co-ordination between actual performance &
standard performance to achieve organizational goals.

66. Thank you