SY BMSCH.1MOTIVATION AND LEADERSHIP

1) Concept of motivation, importance, tools of motivation.

2) Theory z, equity theory

3) Process theories-

# vroom’s expectancy theory,

# valency-4 drive model

BY:-DR. RENU JAIN

CH.1 INTRODUCTION AND THEORIES OF MOTIVATION

MEANINGMotivation may be defined as a planned managerial process, which stimulates people to work to the best of their capabilities, by providing them with motives, which are based on their unfulfilled needs.

Motivation is derived from the word “motive” which means an inner state that energises, activates and directs towards goals.

It can be stated algebraically as Performance =f(ability*motivation)

Motivation is the process of attempting to influence others to do your will through the possibility of gain or reward” -- FLIPPO

FEATURES OF MOTIVATION1) Motivation is a personal and internal feelings:---

psychological phenomenon which generates within an individual.

2) Motivation is need based:-- It is a behavioural concept that directs human behaviour towards certain goals.

3) Motivation is a continuous process:-- Because human wants are unlimited.

4) Motivation may be positive or negative:--positive promotes incentive and negative threatens for disincentives.

5) Motivation is a planned process:--People differ in their approach, to respond to the process of motivation. Motivation is a psychological concept and a complex process.

TYPES OF MOTIVATION1) Positive motivation:--When they are shown reward.

Monetary motivation includes incentives, wage plans, bonus schemes etc.(better standard).Non-monetary motivation includes praise, participation, social recognition (satisfies the ego).

2) Negative motivation:--By installing fears in the minds of people, one can get the desired work done. Fear creates frustration, a hostile state of mind and an unfavourable attitude which hinders efficiency and productivity.

3) Fear Motivation:--When incentive motivation fails-often referred to as the , “carrot and stick,” incentive is the carrot and fear is the stick.

4) Achievement motivation:--we desire to improve our competency both to others and to ourselves. for achieve goals and tackle new challenges. for external recognition. For positive feedback from both our peers and our superiors.

5) Growth motivation:--need for self improvement. Desire to increase our knowledge.

6) Power motivation:--we want to have choices and control over our own lives. We also often aspire to control others around us. In some cases, the craving for power induces people to harmful, immoral, or illegal behaviour.

7) Social motivation:--desire to belong and to be accepted by a specific peer group. Need for acceptance , affiliation and connection with others.

Which form of motivation is the most effective for inspiring the desired behaviour in either others or ourselves is depend on our ability to determine or by the way they are used.

IMPORTANCE OF MOTIVATION• Job performance depends on ability and environment as well as

motivation.P= M + A + E

To reach high levels of performance, an employee must want to do the job well (motivation); must be able to do the job effectively (ability);and must have the resources and information required for job (environment).

• motivated employees are also a lot easier to retain, which is important and preferred ,otherwise costs a lot of money.

1) Improves level of efficiency of employees:--gap between ability and willingness has to be filled which helps in improving the performance, which will result into increase in productivity, reducing cost, improve efficiency.

2) High performance:--motivated employees will put maximum efforts for achieving organizational goals.

3) Low employee turnover and absenteeism: -- When the employees are satisfied with their jobs then they will not leave the job. No absenteeism.

4) Better organizational image:- Which enterprise offer better facilities to their employees, have a better employer image and will attract better qualified and experienced persons.

5) Cordial industrial relations:-- there will be no reason for conflict among both sides will create a healthy atmosphere. effective co-operation brings stability. dispute will reduce. No resistance to change. smooth and sound organisation . Profit maximization through increased productivity.

6) Acceptability to change:-- when the employees are given various opportunities of development, then they can easily adapt to new situations.

7) Leads to achievement of organizational goals:-- best possible use of resources. Cooperative work environment. employees are goal-oriented. Goals can be achieved if coordination and co-operation.

ADVANTAGE /BENEFIT OF MOTIVATION

• TO ORGANISATION:a) Puts human resource into action: --help the

enterprise in securing best possible utilization of resources.

b) Improves the level of efficiency of employees:-ability and willingness helps in improving the level off performance of subordinates, increase in productivity, reduced cost, improve efficiency.

c) Leads to achievement of organisational goals:-- best possible utilization of resources. Cooperative work environment. employees are goal oriented. Coordination and co-operation done through motivation.

d) Builds friendly relations:-- brings employee satisfaction. benefit of the employees (monetary and non-monetary) (promotion).co-operation which brings stability. no resistance to the change. individual interest will coincide with the organisational interest. Profit maximisation through increased productivity.

e) Leads to stability of workforce:-- when employee have a feeling of participation then loyal to the enterprise---increase reputation and goodwill of the concern, good public image. Because older the people, the experience and their adjustment attitude will be benefit to the enterprise.

INDIVIDUALS• Help employee to achieve his personal goal• Job satisfaction• Self development• Always fain by working with a dynamic teamTO BUSINESS• More motivated employees, the more empowered the team is.• The more is the team work, more profitable and successful is the

business.• During amendments , there will be more adaptability and creativity.• Motivation will lead to an optimistic and challenging attitude at work

place.

TOOLS AND TECHNIQUES OF MOTIVATION

•Motivation tools act as the glue that links individuals to organizational goals, In addition, make individuals go beyond the job and be creative.

•It should be accepted that an individual may be struggling to meet more than one need at a time and the satisfaction of these needs may depend on multiple motivation tools at the same time.

•Factors motivating individual can be categorized in 9 groups. These are : instinctive, physiological, social, socio-psychological, success, energy, attachment, belief and attitude factors. These factors can easily be used by others in motivating individuals.

Motivation tools

Motivation tools can be categorized into three groups:1) ECONOMIC MOTIVATION TOOLS: Basic reason for working is

basically economic concerns both for employers and employees. These tools can be higher income, increase in salaries, premium pay, profit sharing, employee participation, economic rewards etc.

2) PSYCHOSOCIAL MOTIVATION TOOLS: Some of the primary psychosocial motivation tools are autonomous working, personal power and carrying authority, social status, respect for personality and life, job and psychological security.

3) ORGANIZATIONAL –ADMINISTRATIVE MOTIVATION TOOLS:One of the fundamental aspects of employee motivation is to build an organizational structure based on mutual trust between the administrators and the employees.

METHODS AND TECHNIQUES:1) Rewards: Firms distribute money and other benefits in

exchange for the employee’s availability, competencies and behaviour.a) MEMBERSHIP AND SENIORITY REWARDS: A senior employee receives more benefit like- advancement, pay raise, retirement benefits, more perquisites. An MBA taking up a job in TATA will get more benefit than a small firm.b) JOB STATUS BASED REWARDS: Firms use job evaluation system which helps establish differentials in the status of jobs. Like-supervisor(high status based reward and more perquisites).c) COMPETENCY BASED REWARDS: Competencies are linked through skills, knowledge, traits, that lead to desirable behaviours. Competencies are evaluated by observing specific behaviour patterns.. Where rewards are linked with competencies. Eg. Skilled based pay-it motivates the employees to acquire skills .

d) PERFORMANCE BASED REWARDS: Link pay to performance rather than to seniority or membership.

i) Profit sharing: designated employees are allowed to share in the profit earned by co. Employee stock option schemes encourages the employee to buy the shares of the co. And reward them through dividend and market appreciation of the shares.

ii)Team rewards: Some teams are rewarded with special bonus if they collectively achieve specific goals.

iii) Individual rewards: Very common, piece rate that links pay to the units produced by an employee. Commission are paid to the sales people. Merit pay and bonus is based on individuals performance.2. JOB DESIGN: The job itself as a source of motivation. The process of assigning a task to a job, including interdependency of those tasks with other jobs, is called as job design.

a) SKILL VARIETY: The degree to which a job includes difficult activities and involves the use of multiple skills and talents of the employee .

b) TASK IDENTITY: Completion of a whole and identifiable piece of work that is doing a job from beginning to end

c) TASK SIGNIFICANCE: Substantial impact on the likes or work of other people.

d) AUTONOMY : employee with substantial freedom, independence and discretion in scheduling the work and determining the procedure to be used.

e) FEEDBACK : employee possesses information of the actual result of his/her performance.

3) JOB CHARACTERISTICS MODEL:This model developed by Richard Hackman and GR Oldham seeks to bring the job close to the person.

A)Empowerment: It is what young job aspirants are looking for in org. It is the feeling that employee owns .It motivates the employee in an org. Like- delegate responsibility and authority, change parent role to partner role, have tolerance for mistakes, share information with subordinates, allow team to form, performance feedback.

b) Participative management: Association of workers/representatives with the decision making, reduced conflicts and stress, more commitment to goals, better acceptance of change.

c) problem -employees: motivation to problem employees-change the place of work, new boss, new peers, issue verbal threats, translate threats into actions (suspension), B players(committed and motivated), popularly called as sustained high performers (SHP) created this category by hindustan lever ltd.- are also to be handled carefully.

d) quality of work life: adequate and fair compensation, safety and healthy working conditions, security and growth opportunity, opportunity to use and develop creativity such as work autonomy, respect for the individuals personal rights.

e)Management by objective: Participative process, involving the managers and subordinates at every org. Level.

f)Flexitime: flexi working hoursg)2 tired pay system: low wage rate to newly hired than those who already

employed.

THEORIES OF MOTIVATIONWILLIAM OUCHI’S THEORY Z OF MOTIVATION

•Developed theory after comparative study of Japanese and American management practices.•Theory suggests that large complex organisations are human systems and their effectiveness depends on the quality of humanism used.•3 major features: trust, subtlety and intimacy

•Mutual trust reduces conflict.•Subtlety requires sensitivity towards others and yields higher productivity.•Intimacy implies concern, support and disciplined unselfishness.FEATURES OF THEORY ZI) MUTUAL TRUST: TRUST, INTEGRITY AND OPENNESS exist between employees, work groups, union and

management, conflict is reduced, cooperate fully to achieve the organisation’s objectives.II) STRONG BOND BETWEEN ORGANISATIONAND EMPLOYEES: lifetime employment leads to loyalty.

During adverse conditions forgo dividends to avoid retrenchment of workers. Promotions slowed down. properly placed so more stable and conductive environment.

III) EMPLOYEE INVOLVEMENT: Improves their commitment and performance. Participation of employees in the decision-making process, particularly about them-generates a sense of responsibility and increase enthusiasm in the implementation of decisions.

IV) INTEGRATED ORGANISATION: Focus is on sharing of information and resources. Job rotation which improves understanding about interdependence of tasks- leads to group spirit.

V) COORDINATION: In order to develop common culture and class feeling in the organisation, the leader must use the processes of communication, debate and analysis.

VI) INFORMAL CONTROL SYSTEM: Emphasis on mutual trust and cooperation rather than on superior subordinate relationship.

VII) HUMAN RESOURCE DEVELOPMENT: Managers should develop new skills among employees. Under this theory potential of every person is recognised and attempts are made to develop and utilise it through job enlargement, career planning, training etc.

•Japanese company operating in the US used theory z. Japanese and Indian comp. Named Maruti Suzuki motors apply theory z.•Work place involves open offices. Same uniform irrespective of designation. Common canteen. Avoid status differentials and class feeling among employees and thereby facilitate teamwork in the company.LIMITATIONS OF THEORY ZI) Merely provides job security and may fail to develop loyalty among

employees. leave org. If better offer, security gives letharginess and inefficient worker will be permanent.

II) Participation in decision-making is difficult..managers hurt their ego and freedom. Employees reluctant to participate due fear of criticism, less contribution.

III) This theory suggest org. Without any structure. Nobody will know who is responsible to whom.

IV) People differ in attitudes, habits, language, religions, customs so no development of common culture.

V) Evolved from japanese culture. May not be applicable in different cultures.

Thus theory Z does not provide complete solution to motivational problems of all organisations operating under different types of environment. However, it is not merely a theory of motivation but a philosophy of managing.

EQUITY THEORY•Equity theory is the process theory. It is the J stacy adam’s formulation , which is the most highly developed and researched statement.•Also known as “social comparison theory and inequity theory”.•It is based on the assumption that the individuals are motivated by their desire to be equitably treated in their work relationships.•Employees work for their exchange their services for pay and other benefits. •For eg: if the employees perceive they are overpaid or underpaid, they will be motivated to restore equity.The 4 terms important in this theory are:i) PERSON: For whom an equity exist.ii) COMPARISON OTHER: Any group or individual used by a person as a

reference regarding inputs and outcomes.iii) INPUTS: age, attendance, interpersonal skills, communication skills, job

effort, level of education, past experience, performance, seniority, social status, technical skills, training.

iv) OUTCOMES: challenging job assignment, fringe benefits, job security, monotony, promotion, recognition, responsibility, salary, seniority benefits, status, symbols, working conditions.

• People in the organisations form perceptions of the equity of their treatment through a 4 step process:

1) They evaluate how they are being treated by the firm.2) They form a perception of how a “comparison-other” is being

treated. It might be a person in the same work group, someone in another part of the organization, or even a composite of several people scattered throughout the organization.

3) They compare their own circumstances with those of the comparison– other and use this comparison as the basis for forming an impression of either equity or inequity.

4) Depending on the strength of this feeling, the person may choose to pursue other alternatives.

A persons assessments of inputs and outcomes for both self and others are based partly on objective data(eg. Salary) and partly on perceptions (eg. Level of recognition).

Thus takes the following form:Outcome (self) compared with Outcomes(other)Inputs (self) Input (other)If balance then equity otherwise not.However, a perception of equity does not require that the perceived

outcomes and inputs be equal, but only that their ratios be same.

People may use one of the following methods to reduce inequity:1) Person altering his inputs2) Person altering his outcomes3) People may change their original assessment and decide that they are really

contributing less but receiving more than they originally believed4) Alter their perception of the comparison. Eg: other is working more hours, extra

work from home5) They may change their object of comparison.6) They may leave the situation, by getting transferred to another department or even

seeking a new job.<Pl. Refer Adams’ equity theory diagram-job motivation –Fig.1.5 page 33 of vipul

prakashan’s book.Scales measures against comparable references in the market place---if in- equity people

become demotivated, reduce input or seek change/improvement whenever they feel their inputs are not being fairly rewarded. Fairness is based on perceived market norms.>

The theory proposes that the motivation to act develops after the person compares inputs/outcomes with the identical ratio of the comparison other.

Inequity is the perception that the person’s job input/outcomes ratio is not equal to the inputs/outcomes ratio of the comparison other. The greater the felt inequity, the greater the motivation to reduce it.

Most researches on equity theory has been focused, dealing with one ratio—between pay and the quality and quantity of worker output given overpayment and underpayment.

When the worker feels underpaid, tend to reduce their inputs by decreasing quality and quantity. When person feels overpaid, increase in quality and quantity.

ADVANTAGES1) The theory has generated extensive research, many of the results being

supportive.2) It recognises the influence of social comparison processes on motivation.

Individuals are concerned not only with the absolute amount of rewards they receive for their efforts, but also with the relationship of this amount to what others receive.

3) Any perceived injustice motivates them to restore equity.4) It adopts a realistic approach to motivation.

LIMITATION1) People measure the totals of their inputs and outcomes. Eg: working mother

may accept lower monetary compensation2) Two employees of equal experience and qualification performing same work for

the same pay may have quite different perceptions of the fairness of the deal.3) Employees are able to adjust for purchasing power and local market conditions.

Eg. Teacher from bangladesh may accept lower pay because of cost of living is different.

4) Acceptable More senior staff , more higher compensation5) Staff perceptions of inputs and outcomes of themselves and others- may be

incorrect, and perceptions need to be managed effectively.6) For eg. Responsibility is viewed by some as input whereas by others as output.7) How does a person choose the comparison other?8) Most studies supporting it have been laboratory experiments with student

subjects.

VROOM’S EXPECTANCY THEORY OF WORK MOTIVATION

The theory explains that individuals can be motivated towards goals if they believe that : there is a positive correlation between efforts and performance, the outcome of a favourable performance will result in a desirable reward from a performance will satisfy an important need, and/or the outcome satisfies their need enough to make the effort worthwhile.3 components of expectancy theory:1. Expectancy : Effort—performance (E-P)2. Instrumentality : Performance—outcome (P-O)3. Valence : v(R)Expectancy: Expectancy is the belief that one’s effort (E) will result in attainment of desired performance(P) goals.a) Self efficacy: the person’s belief about their ability to successfully perform a particular behaviour.b) Goal difficulty: Individuals believes that their desired results are unattainable.c) Perceived control: Individuals must believe that they have some degree of control over the expected outcome.When individuals perceive that the outcome is beyond their ability to influence, expectancy, and thus motivation is low.Instrumentality: Instrumentality is the belief that a person will receive a reward if the performance expectation is met-in

the form of a pay increase, promotion, recognition or sense of accomplishment. Instrumentality is low when the reward is the same for all performances given.

VALENCE: satisfaction of a particular outcome .Rewards of an outcome, which is based on their needs, goals, values and sources of motivation. Strengthen their motivation for a particular outcome.

1----0----1 In order for the valence to be positive , the person must prefer attaining the outcome to not attaining it.

Expectancy* instrumentality * valence = Motivational forceValue outcomes in the work place include, pay increase and bonuses, promotions, time off, new assignments,

recognition, etc. If management can effectively determine with their employees values, this will allow the manager to motivate employees in order to get the highest result and effectiveness out of the workplace.

ADVANTAGES1. It provides clear guidelines or increasing employee motivation by altering the

person’s expectancies (E P), instrumentalities (P O) and outcome valencies.2. Individuals are viewed as thinking, reasoning beings who have beliefs and

anticipations concerning future events in their lives.3. It values human diginity.4. Do not act on the basis of unmet needs.5. It implies that managers must make it possible for an employee to see that

effort can result in appropriate need satisfying rewards.LIMITATIONS

1. It needs to be tested to learn how research evidence will support it.2. There are many instances where decisions are made with no conscious

thought. People often make decisions and later try to rationalise them, rather than use the process.

3. Theory has limited use because it tends to be valid only in situations where the effort-performance and performance-reward linkages are clearly perceived by the employees.

Motivation principles such as valency, expectancy and instrumentality can be drawn from the theory. This can be used to guide managers in designing organisational rewards, work systems, management by objective and goal setting.

VALENCY-FOUR DRIVE THEORY•The 4-drive model of employee motivation was presented by Lawrence and Nohria in 2002.•This model is looking at employee motivation beyond the typical pay model..new way of thinking.•The 4 drive theory is based on 4 underlying drives– the drive to acquire & achieve, to bond & belong, to be challenged & comprehend and to define & defend.1. Drive to Acquire and achieve: Monetary rewards tied to performance in your organization? Competitive

pay? need for high performance is Clearly expressed in your firm? Appropriately recognized for your performance? Satisfaction with your pay from work? R u able to distinguish yourself through your job?

2. Drive to bond and belong: conducting a team building session should help a company’s employees positively build and enhance the bonds they have with their co-workers. Collaboration and teamwork valued and recognized ? Firm supportive of friendship among workers. feeling of being a part of team firm’s culture encourage sharing?

3. Drive to be challenged and comprehend: We perform better when we are engaged and learning on the job. Leaders should look at how they can enhance or create challenges for employees and provide them opportunities to learn and grow. Org. Must look at how they are structuring their jobs, their projects, their incentives. assignments are challenging? Gaining skills and knowledge as part of your work.

4. Drive to define and defend: Performance rating system open and transparent? Environment welcoming and non intimidating? Treat people fairly? Support open communication?

This new theory provides a more comprehensive model for employers to increase employee engagement and motivation.

An important theme of the 4 drive theory is balance between and among drives so they can compliment and regulate each other.

The 4 drive models indicates that company’s reputation, its moral bearing, being part of some larger aspirationalgroup, and the culture can be significant factors in how motivated employees are.

Strongest and robust models to help understand employee motivation and engagement.Great help to managers to increase their employee’s motivation.LIMITATION:Purpose is not addressed in the model, whereas purpose is a key motivator in individuals