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Loyola Institute of Business Administration, Chennai
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Motivation & Needs
TheoryNeeraj Jain
F09097
LIBA PGDM 09-11
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ACKNOWLEDGEMENTS
I, whole heartedly and with deep gratitude, would like to thank Prof. T A Sivasubramaniam for
all his help in successful completion of this report and the subject. It would have been impossibleto do the required work without his kind help and guidance.
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Contents
Introduction.3
Motivation and Its Definition..3
Nature of Motivation...3
Types of Motivation....4
Maslows Need Hierarchy Theory..6
Herzbergs Motivation-Hygiene Theory.8
Alderfers ERG Theory...9
McCellend Theory.10
Vrooms Expectancy Theory.12
Conclusion.14
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Motivation and Needs Theory
Introduction:
Motivation is one of the most important factors affecting human behaviour and
performance. This is the reason why managers attach great importance to motivation in
organizational setting. Rensis Likert, has called motivation as the core of management.
Effective directing of people leads the organization to effectiveness, both at organizational and
individual levels.
Motivation and Its Definition:
The willingness to exert high level of effort to reach organizational goals, conditioned by
the efforts ability to satisfy some individual need.
Robert Dubin definesMotivation as the complex forces starting and keeping a person at work
in an organization. Motivation is something that moves the person to action. And continues him
in the course of action of action already initiated
Nature ofMotivation:
On the basis of the above description, the following characteristics of motivation can be
identified:
1. Motivation is a psychologicalconcept. It is based on human needs which generate within an
individual. Needs are feelings influence the behavior and activities of the individual.
2. Motivation is total, not piece-meal. A person cannot be motivated in parts. An employee is an
indivisible unite and he needs are interrelated. He cannot be motivated by fulfilling some of his
needs partly.
3. Motivation is a continuous process. It is not a time bound programme or a touch-and-go affair.
Human needs are infinite. A soon as one need is satisfied new ones arise.
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4. Motivation causes goal-directed behavior. A person behaves in such a way that he can satisfy
his goals or needs.
5. Motivation may befinancialornon-financial. The form of motivation depends upon the typeof needs. Financial incentives include pay, allowance, bonus and prerequisites. Non-financial
incentives consist of recognition, praise, responsibility, participation in decision-making,
challenging job, etc.
6. Motivation is a complex process. There is no universal theory or approach to motivation.
Moreover, individuals differ in what motivates them. Therefore, a manager has to analyze and
understand variety of needs and has to use variety of rewards to satisfy them. He should not
expect overnight results.
Theories ofMotivation:
A. Maslows Need Hierarchy Theory
B. Herzbergs Motivation-Hygiene Theory
C. Alderfers ERG Theory
D. McCellend Theory
E. Vrooms Expectancy Theory
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A. Maslows Need Hierarchy Theory:
There is a hierarchy of five needs physiological, safety, social, esteem, and self-
actualization and as each need is substantially satisfied, the next need becomes dominant.
1. Physiological:
These needs relate to the survival and maintenance of human life. Therefore, these are the
most primary or basic needs and must be satisfied before all other needs. It includes the needs of
air, water, food, sex, rest, clothing, shelter, etc.
2. Safety or Security Needs:
Once Physiological needs are satisfied to be reasonable level, safety needs emerge and
become dominant. These needs imply the need for self-preservation and economic independence.
People want bodily safety, job security, provision for old age, insurance against risk etc.
3. Social Needs:
Man is a social animal. He therefore, wants association, belonging, friendship, love and
affection. These are the need to seek affiliation and affection of ones fellow beings. People form
informal groups to seek meaningful associations companionship.
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4. Self Esteem or Ego Needs:
These are concerned with awareness of self importance and recognition from others.
Esteem needs consist of such things as self confidence, self respect, independence, power,
prestige, achievement, praise and status.
5. Self Actualization Needs:
This implies the desire to become more and more of what one is, to become everything
that on is capable of becoming. It involves self fulfillment or achieving what one considers to
be his mission in life.
B. Herzbergs Motivation-Hygiene Theory:
Frederick Herzbergand his associates conducted research wherein they interviewed 20
engineers and accountants from nine different companies in Pittsburg area of U.S.A. These
executives were asked to recall specific incidents in their experience which made them feel either
exceptionally good or exceptionally bad about their jobs. On the basis of their study, Herzberg
concluded that there are some job conditions which operate primarily to dissatisfy employees
while other job conditions operate primarily to build strong motivation and high job satisfaction.
He called these factors hygiene factors and motivating factors respectively.
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1. Hygiene Factor:
These factors provide no motivation to employees but the absence of these factors serves
as dissatisfies. Many of these factors are traditionally perceived by management as motivators
but these are really more potent as dissatisfies. These are called Hygiene Factors because theysupport the mental health of employees.
Some of the Hygiene Factors are :
Wages, salary and other types of employee benefits. Company policies and administrative rules that govern the working environment. Interpersonal relation with peers, supervisors and subordinates. Cordial relation will
prevent frustration and dissatisfaction.
Working conditions and job security. The job security may be in the form of tenure or itcould be supported by a strong union.
2. Motivational Factor:
These factors help to build strong motivation and high job satisfaction. They are also
known as satisfiers. These are related with the job content. Their absence or decrease will affect
the level of job satisfaction. These factors are achievement, advancement; work itself, possibility
of growth and responsibility.
Some of these Motivational Factors are:
The Job itself Recognition Achievement Responsibility Growth and advancement.
C. Alderfers ERG Theory:
Alderfer has provided an extension of the Maslows need hierarchy and Herzbergs two
factor theory of motivation, particularly the former. Like the previous theories, Alderfer believes
that there is a value in categorizing needs and that there is a basic distinction between lower
order needs and higher order needs. Based on the empirical evidences, he has found that there
seems to be some overlapping between physiological, security, and social needs. Also, the lines
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of demarcation between social, esteem, and achievement needs are not clear. Based on these
observations, Alderfer has categorized the various needs into three categories: existence needs,
relatedness needs, and growth needs.
1. Existence Needs:
Existence needs include all needs related to physiological and safety aspects of an
individual. Thus, existence needs group physiological and safety needs of Maslow into one
category as these have similar impact on the behavior of the individual.
2. Relatedness Needs:
Relatedness needs include all those needs that involve relationship with other people
whom the individual cares. Relatedness needs cover Maslows social needs and that part of
esteem needs which is derived from the relationship with other people.
3. Growth needs:
Growth needs involve the individual making creative efforts to achieve full potential in
the existing environment. These include Maslows self actualization need as well as that part of
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the esteem need which is internal to the individual like feeling of being unique, felling of
personal growth, etc.
D.Mccellands Motivational Needs Theory:
American David Clarence McClelland (1917-98) achieved his doctorate in psychology at
Yale in 1941 and became professor at Wesleyan University. He then taught and lectured,
including a spell at Harvard from 1956, where with colleagues for twenty years he studied
particularly motivation and the achievement need. He began his McBer consultancy in 1963,
helping industry assess and train staff, and later taught at Boston University, from 1987 until his
death. McClelland is chiefly known for his work on achievement motivation, but his research
interests extended to personality and consciousness. David McClelland pioneered workplace
motivational thinking, developing achievement-based motivational theory and models, and
promoted improvements in employee assessment methods, advocating competency-based
assessments and tests, arguing them to be better than traditional IQ and personality-based tests.
His ideas have since been widely adopted in many organizations, and relate closely to the theory
of Frederick Herzberg.
David McClelland is most noted for describing three types of motivational need, which he
identified in his 1961 book, The Achieving Society:
Achievement Motivation (n-ach) Authority/Power Motivation (n-pow) Affiliation Motivation (n-affil)
David Mcclelland's needs-based motivational model:
These needs are found to varying degrees in all workers and managers, and this mix of
motivational needs characterizes a person's or manager's style and behavior, both in terms of
being motivated and in the management and motivation others.
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The need for achievement (n-ach):The n-ach person is 'achievement motivated' and therefore seeks achievement,
attainment of realistic but challenging goals, and advancement in the job. There is a strong
need for feedback as to achievement and progress, and a need for a sense of accomplishment.
The need for authority and power (n-pow):The n-pow person is 'authority motivated'. This driver produces a need to be
influential, effective and to make an impact. There is a strong need to lead and for their ideas
to prevail. There is also motivation and need towards increasing personal status and prestige.
The need for affiliation (n-affil):The n-affil person is 'affiliation motivated', and has a need for friendly relationships
and is motivated towards interaction with other people. The affiliation driver produces
motivation and need to be liked and held in popular regard. These people are team players.
McClelland said that most people possess and exhibit a combination of these
characteristics. Some people exhibit a strong bias to a particular motivational need, and this
motivational or needs 'mix' consequently affects their behavior and working/managing style.
McClelland suggested that a strong n-affil 'affiliation-motivation' undermines a manager's
objectivity, because of their need to be liked, and that this affects a manager's decision-making
capability. A strong n-pow 'authority-motivation' will produce a determined work ethic and
commitment to the organization, and while n-pow people are attracted to the leadership role, they
may not possess the required flexibility and people-centered skills. McClelland argues that n-ach
people with strong 'achievement motivation' make the best leaders, although there can be a
tendency to demand too much of their staff in the belief that they are all similarly and highly
achievement-focused and results driven, which of course most people are not.
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E. Vrooms Expectancy Theory:
Vrooms expectancy theory has its roots in the cognitive concepts in the choice behavior
utility concepts of classical economic theory. According to Vroom, people will be motivated to
do things to achieve some goals to the extent that they expect that certain action on their part willhelp them to achieve the goal. Vrooms model is built around the concepts of value, expectancy,
and force; its basic assumption is that the choice made by a person among alternative courses of
action is lawfully related to psychological events occurring contemporaneously with the
behavior. Vrooms concept of force is basically equivalent to motivation and may be shown to be
the algebraic sum of products of valences multiplied by expectations. Thus
Motivation (force) = Valence X Expectancy
1. Valence:
According to Vroom, valence means the strength of an individuals preference to a
particular outcome. Other terms equivalent to valence used in various theories of motivation are
incentive, attitude, and expected utility.
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2. Instrumentality:
Another major input into the valence is the instrumentality of the first level outcome in
obtaining a derived second level outcome. Hunt and Hill have exemplified it by promotionmotive. The superior performance (first level outcome) is being instrumental in obtaining
promotion (second level outcome).
3. Expectancy:
Another factor in determining the motivation is expectancy, that is, the probability that a
particular action will lead to the outcome. Expectancy is different from instrumentality input into
valence. Expectancy differs from instrumentality in that it relates efforts to first level outcomes
whereas instrumentality relates first and second level outcomes to each other.
Conclusion:
Various theories of Motivation, discussed above, have various applications in
management practices. In applying motivation theories, managers should take into consideration
how an individual reacts to his work which is a function of fit among:
1. Individuals personality characteristics need patterns, values, and ability;
2. Characteristics of job such as nature of challenge it offers, the autonomy in performing the
job, and the use of skills in performing the job.
Thus, in applying motivation theories at workplace, both intrinsic and extrinsic aspects of
the job must be considered. Intrinsic factors are directly related to the contents of a job while
extrinsic factors are related to the context or environment in which the job is performed. Thus,
motivation theories help in designing reward system, empowering employees, improving quality
of work life, and work design.