Motivational Theories

Presented by : PARESH VENGULKAR

M120008MS

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 affiliation

try 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 , India

Achievement development program :

i) How to think, talk ,eat like high achiever ii) Set higher ,planned & realistic goalsiii) Knowledge about themselves iv) 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 needs

Three needs i) Existence needs : Include psychological and safety needs of

individual

ii) Relatedness need: involves relationship with others whom individual cares

iii) Growth needs : feeling of being unique and achieve personal growth

Propositions :

GROWTH NEEDS

RELATED NEEDS

EXISTENCE NEEDS

VROOM’S EXPETANCY THEORY:

Motivation(Force)

Expectancy

First-levelOutcomes

Outcome 1

Outcome 2

Instrumentalities

Outcome 1b

Outcome 1a

Outcome 2b

Outcome 2a

Second-levelOutcomes

Porter-Lawler model of Motivation:

Value of reward

Efforts

Perceived effort-rewardProbability

Ability toSpecific work

Performance Accomplishment

Perception ofThe task

Satisfaction

Extrinsic rewards

Intrinsic rewards

Perceived equitable rewards

EQUITY THEORY:

Based on :People compare their performance and rewards with others

These 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’ input

3. EQUITY :Person’s outcome Others’ outcome

= Person’s input Others’ input

Impact 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 situation

IMPLICATIONS : Need adequate consideration Difficult to asses perception two main questions

1. How does person choose comparison person ?2. Which action person will take to reestablish ?

Carrot and stick theory

Based on “Principle of reinforcement”

Carrot : e.g. money , promotion etcStick : e.g. presenting aversive and noxious consequence

helps to overcome negative behavior

In 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

McGregor's Theory X & Y :

Based on –action of motivating human being involves assumptions , generalization , hypothetical relations to human behavior and human nature

THEORY X :(Managerial actions)1. Organizing the element of productive enterprise is management’s responsibility2. Directing , motivating , controlling and modification change according to organizational needs 3. 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 work

2. Threat of punishment is not the only solution to bring change in behavior

3. 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 performance

Types of rewards 1. Intrinsic or Extrinsic2. Monetary or non-monetary

INTRINSIC : 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 task

EXTRINSIC : emerge from outside e.g. increase in pay, promotion praise etc.

Incentives

INCENTIVES :Barak & Smith : scheme or plan to motivate individual for good

performance.incentives cab be both monetary and non-monetary.

Financial Incentive :Objective to design incentive 1. Useful for securing utilization, better production & performance control2. should not affect organization financial cost.

Points to remember while using Money as motivator :1. Cultural characteristic determine the tendency2. alternative plan for others3. same performance same money4.incentive should be significant

Financial Incentives

Types 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 Infosysemployee are given share of company, they will get money by appreciation of shares

6. Retirement plans: i) Provident Fund : 8.33 % wage/month after retirementii) pension scheme : after minimum years of service iii) Gratuity : after termination of their job , payable at 15 days

Non-financial Incentives

Socio-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 , praiseii) Team spirit : better co-ordination and co-operation lead to maximum effortiii) informal groups : provide social satisfaction , you should know whether it is detrimental or helpful