BUSINESS ADMINISTRATION- Prof. Sonam Bhayani (B.com/Mba)

BUSINESS ADMINISTRATION

MOTIVATION

DEFINITION:

• “Motivation is a strategy adopted by the manager to get the work done.”

• “The achievement of goals and employee satisfaction are two sides of the same coin of Motivation.”

• “Motivation is an internal drive within an employee which induces him to work.”

- Dr. George Terry

Traditional Old Days…

It was revealed in different forms :i. Order basisii. Direction basisiii. Motivation basis

Meaning of Motivation:

• “Motivation is the sum total of all the necessary efforts meant towards the satisfaction and accomplishment of goals.”

• “Motivation is a strategy that is meant to extract work from the subordinates by the manager.”

Satisfaction

Behaviour-induced-

motivation

Depression

Needs

Characteristics/Forms of Motivation:

Motivation (Need based) Motivation is of various types Motivation is fluctuating Motivation keeps changing Motivation is a force Motivation has wide scope Many motivators not known Lack of motivation is depression Differing motivation to various persons

FINANCIAL AND NON-FINANCIAL INCENTIVES

Incentives are classified into 2 categories :1) Financial Incentives :o Such types of incentives are provided so that

employees have interest and enthusiasm.o Consists of salary rises, profit sharing, bonus,

motivation wage programs, Employees savings program, Retirement scheme, work-group plan, etc.

o Employees cannot be purchased by wages and salaries

o Milton Blum says, “It is not true that money motivates people”

2) Non Financial Incentives :o Managers adopt many other incentives other

than satisfying the needs. These are called non financial incentives.

o Training to employees, opportunities for their growth and development, employee share in mgt, job security, employee welfare programs, etc are included.

o Praising hard working employee in public is required

Thus concluded that:Instead of financial incentives, non

financial incentives also play an effective role for the purpose of authority, post, achievement of goals, security, etc. are important motivators and stimulators.

Importance of Motivation

There should be proper and good utilization of resources.

Many threats are to be faced by management.

There should be good and effective communication :– Easy to understand– Relationship established– Increases efficiency and productivity level

Importance of Motivation can be understood by following :

1) Helps accomplish goals2) Provides fuel to employees3) Develops morale and discipline4) Creates harmonious relation between labour

and management5) Increase in work efficiency6) Increase in productivity

PRINCIPLES OF MOTIVATION

The important principles of motivation are :1) Maslow’s Principle2) Herzberg’s Principle3) McGregor’s Principle4) Ouchi’s Principle

I. Maslow’s Law :

Maslow’s Need Hierarchy

1. Physiological / Physical Needs :- Basic needs of food, shelter, clothing are included here.- Needs have no end, and they keep multiplying.

2. Safety Needs :- Security against heat, cold, fright, storms, attacks, etc.- In modern times, people prefer security of employment, income and security in the surroundings.- Prefer good behaviour from boss.

3. The Social Needs :- Love and affection from each other.- Social needs can be satisfied through the group behaviour.

4. The Esteem Needs :- Satisfaction of ego and self esteem.- He would like to become leader of the group, direct others and become more famous.- Such needs can be divided into two:

Self satisfaction and Outside factors

5. Self Actualization Needs :- Needs of behaving and becoming like a role model. - Till such needs are not satisfied, the employees constantly try to pursue such needs.

Critical Evaluation:

• Followed in Chronological order.• After physical needs directly needs of self

actualization does not originate.• Some people try to satisfy their social needs

after their physical needs are satisfied.• It is not necessary that all human beings follow

this in a chronological order.• Customer satisfaction will result into an

increase in production and productivity.

II. Herzberg’s Principle:

• Two factor theory of motivation.• He had conducted a survey of 11 industries

and had interaction with 200 Engineers and Accountants.

• Herzberg states that any one factor is responsible for motivating the employee, then the absence of that variable will make employees dissatisfied.

• The variables are divided into 2 factors:A. Hygienic factors:

i. Company policy and administrationii. Supervisioniii. Work conditionsiv. Inter personalized relationsv. Salaryvi. Post vii. Securityviii. Relations with supervisorsix. Relation with subordinatesx. Personal life, etc are included.

These factors don’t motivate the employee. They are simply maintainance factors which will prevent the employee from getting depressed and dissatisfied.

B. Motivators:i. Achievementii. Recognition of workiii. Responsibility iv. Challenging workv. Growth and developmentvi. Promotion, etc are included.

He says that Motivators help the employee to receive stimulus towards their job.

They are satisfiers for employees.

From this principle it is stated, that the presence of hygienic factors helps to prevent dissatisfaction but to bring in satisfaction for an employee, motivators are required and it is inevitable.

Therefore managers should try to provide hygienic factors to safeguard employees and also motivators so that employees get stimulated.

COMPARISION OF MASLOW AND HERZBERG’s THEORY

MASLOW HERZBERG

His 3 needs : physical, securiy and social needs are necessary to maintain the level of satisfaction of an employee.

Herzberg has called these as hygenic factors.

Maslow has stated that after the 3 needs are satisfied, then they do not act as motivators for the employee. But employees also work for self achievement and self esteem.

Herzberg calls these as motivators. Such motivators act as satisfiers for employees.

III. Principle of Dr. McGregor

• X theory and Y theory.• Behind every managerial decision or task, there are

specific presumptions about the human nature and human behavior.

• Theory X and Y are such presumptions which are derived from Dr. McGregor’s experience.

• According to him managers/officers adopt any one of the above two theories and accordingly decide the way to get the work done from the employees and motivate them.

• Theory X is the conventional presumption of managerial control and direction.

Presumptions of Theory X :I. Average employee dislikes work and tries to

avoid.II. Fears of supervision, discipline, control and

punishing steps.III. Average employee desires to get direction and

avoid responsibility.IV. Employee gets satisfied with lower level needs

and is not so concerned of higher level needs.V. An average employee is against the change. He

neither wishes change nor welcomes it.

From the above presumptions it is revealed that: Human being is basically lazy and avoiding work

by nature. Works only if fear of punishment. As per this, fixing the work to be done in a day as

well as controls related to production are essential As per X theory, the promise of reward is not

capable of removing basic dislike for work. For proper standard of work, they are required to

be threatened with the weapons like termination. Theory X plays an important role in formulating

the management’s strategy and policy.

Salary and job security play important role in fulfilling the employees basic requirements.

Ofcource, it is not necessary to maintain high level requirements.

Employee tries to avoid the work. Thus, according to this theory human

behavior and nature can be in contrast . We will see in theory Y that Human being is

shown as sincere and having own liking for work in it.

Presumptions of Theory Y : Employees have natural liking for work.Self-motivated and committed to his entrusted

work Fulfills his responsibility with complete sincerity

and commitment Personal achievements : to strive accomplishing

the objectives and get success Intellectual capacity of an employee is partially

utilized

• X theory depicts human being as idle, while Y theory describes him as self-motivated.

• X theory is conventional evaluation, while Y theory is the modern evaluation.

• For providing motivation and encouragement to the employee, steps should be take him to higher status, prestige and job satisfaction instead of only taking material-related and security-oriented steps.

• He believes that co-management, decentralization of responsibility are more effective.

• According to Dr. McGregor, under Y theory, co-operation and harmony should be established between labor and management.

Change in managerial policy (As per Y theory) :

1. Decentralization and entrusting authority2. Work expansion3. Co-partnership and discussing management4. Self-assessment method

Criticisms of X and Y theory of McGregor :

• Instead of external encouragement, it is suggested to depend on internal motivation.

• To see to what extent they achieve those objectives.

• Not to transfer an employee into adverse outcome.

• Management’s presumptions and their policy based on it are more responsible and not the human nature.

Suggestion :

• Combined efforts of officers and assistants.• Not difficult to adopt Y theory.• The management has to repose their faith and

trust in assistants and subordinates strength, intellectual, capacity, sincerity, creativity and readiness to shoulder responsibilities.

IV. Ouchi’s Principle : Z theory

• An alternative to McGregor’s X and Y theories.• According to Ouchi and Urvik theory, the

organization is related with the objective of the unit to provide goods and services at convenient price.

• The employees working in an organization become ready to change their behaviour in consonance with the organizations objective on two conditions.

(i) Every person connected with the organization is aware about its objective and contribute his mite for its accomplishment. For this, the employees should get proper reward.

(ii) Objectives of every organization in reality, are such which can individually satisfy employee’s requirement and the members of organization donot feel despair or fear about any requirement of the employees. (guarantee of the management)

• Urvik’s concept of Z theory of behaviour places more light on the organizational behaviour and in better manner than X and Y theories.

• Z theory is the best concept for managerial method.

• Z theory has main four points : leadership in an average organizational structure and in comparison to leadership, co-ordination or technical factors, employee involvement is more important.

• Employee involvement has close relationship with accomplishing objective.

• Following points reveal the main points of Z theory :

(i) There is close relationship between organization and employee

(ii) Employee involvement in decision making(iii) No formal structure of organization(iv) Co-ordination among human element

• Thus, in comparison to other theories, Z theory suggests complete change for employee motivation.

• It suggests different management methods and changes to be incorporated in it.

Evaluation of Z theory :o Based on Japanese management concept Z

theory gains importance in accomplishing organizational objectives through motivation.

o Its importance and limitations are accordingly.o Even then where there is atmosphere of

sincerity, loyalty, team efforts, co-operation and harmony, this method can bring in desired outcomes.