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Surma Tower, Sylhet

An Assignment on

““““ImplicationImplicationImplicationImplication oooof motivational conceptf motivational conceptf motivational conceptf motivational concepts in workplace:s in workplace:s in workplace:s in workplace:

A study on selected private organization’s A study on selected private organization’s A study on selected private organization’s A study on selected private organization’s employees”employees”employees”employees”

Course title: Human Resource Planning

Course code: HRM-401

Submitted to:

Md. Abdul Muhith Chowdhury Senior Lecturer

Department of Business Administration

Leading University, Sylhet

Prepared by:

Head Hunter’s

ID Name

1201010007 Zakiatunnesa Uma

1201010091 Rabeya Rahman

1201010072 Anjomy Akter

1201010181 Mahmudul Hasan

1201010249 Md. Alimuzzaman

1201010202 Masum Hussain

Semester: 11th

Batch: 30th

Major: Human Resource Management

Department of Business Administration

Leading University, Sylhet

Date of Submission: 30 August, 2015

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Contents Subjects pages

1. Introduction 5 2. Statement of the problem 5 3. Importance of the Study 6 4. Objectives of the study 6 5. Working definition 7 6. Data Source 7 7. Limitations of the Study 7 8. Defining Motivation 7 9. Motivation as a key to performance improvement 8 10. Motivational factors are the products of needs 9 11. Three Components of Motivation 9

a. Expectancy 10 b. Instrumentality 10 c. The Role of Motivation in Performance 11

12. Motivational concepts 11 13. Maslow’s Theory of Need 11 14. Implications of Maslow’s needs hierarchy 12 15. Alderfer's ERG theory 13 16. Implications of ERG Theory 13 17. Cognitive Evaluation Theory 13 18. Use of Cognitive Evaluation Theory 14 19. Two Factor theories 14 20. Typical Implications of Herzberg’s Theory 14 21. Equity Theory 15 22. Reinforcement Theory 16 23. Implications of Reinforcement Theory 17 24. Expectancy Theory (Vroom) 18 25. Implications of Expectancy Model in the Private Organizations 19 26. Incentive Theory 19 27. Implication of incentive theory in private organization 19 28. Motivational theory in practice at Tesco 19 29. Goal Setting Theory 20 30. Implications of Goal Setting Theory in Private Organizations 20 31. Findings 21 32. Recommendation 21 33. Conclusion 22 34. References 23

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Executive Summary

Most employers today would like to have their employee’s motivated and ready to work, but do not understand what truly motivates a person. Companies could be more efficient if the employees had an invested interest in the future of the company. There are essential needs to be met for a person, specifically an employee, to succeed in the workplace. We will examine different theories of motivations, how they are relevant to the workplace, and how employers can implement the theories to ensure happy and motivated employees. Human behaviour is as much a reflection of the differences between individuals as it is a reflection of their similarities. These individual differences are caused by a number of influences and characteristics. For example, personality traits focus on individual differences that make each person a unique human being. Our biological make-up concentrates on how we function as a result of our evolution and human inheritance. Our behaviour is largely influenced by the system of rewards and punishments that are present in our environment. Our cognitive approach focuses on how our thinking and memory affects our behaviour. The fact that we are here at this time with immediate influences, and the ability to express a free will, may present the greatest influence of all. It broadly addresses the topic of employee relations and work motivation. It examined theories and models of motivation that strive to answer the question of what motivates and how is motivation harnessed. At the individual level of analysis, there is a plethora of different approaches, most of which have some conceptual viability, empirical support and practical use. A critical task for future thinking and research is to integrate findings from diverse sources in order to be able to produce a more coherent view of motivation, its content and mechanisms. The most important theories include: Maslow’s hierarchy of needs, Herzberg’s two-factor theory, Aristotle’s seven causes, and the different types of motivation. Each theory is related in the fact that there are needs for all people to meet. Every employee is at a different stage in their lives, which requires different management techniques. It is shown that motivation must come from within the employee. The theories investigated will help describe how managers can influence their employees to self motivate and produce the best work possible. There are two specific types of motivation: financial and non-financial. We will focus on ways the employers can motivate their employees using financial means as well as non-financial recognitions. In this day in time, there is not always a plentiful amount of money to spend on motivation, so it is important to understand how managers can make their employees feel important without breaking the bank. Both types need to be executed in a strategic way to provide the best results. Lastly, we will focus on how managers are able to implement these types of motivation into their specific work place. This will show how motivation is important to all industries, and how it can change and impact the amount sales a company performs. Motivated employees will in turn create a successful company.

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AcknowledgementAcknowledgementAcknowledgementAcknowledgement

At first, we are grateful to Almighty Allah for creating us in

such a beautiful country like Bangladesh and also for

controlling our life. For the mercy of Him, we have got such

courage to start this assignment on “Implication of motivational “Implication of motivational “Implication of motivational “Implication of motivational

concepts in workplace:concepts in workplace:concepts in workplace:concepts in workplace:

A study on selected private organization’s employA study on selected private organization’s employA study on selected private organization’s employA study on selected private organization’s employees”ees”ees”ees”

After that we would like to give thanks to our honorable

Head of the Department Prof. Prof. Prof. Prof. Dr. Tofayel Ahmed Dr. Tofayel Ahmed Dr. Tofayel Ahmed Dr. Tofayel Ahmed for giving

us the opportunity to study in this subject. We would like to

express our thanks to the librarian of Leading University for all

his help that we have received.

Our respected parents who gave us mental support and

inspiration for our assignment, there is a special thanks for

them.

We also would like to give a lot of thanks to our honorable

course teacher, Md. Abdul Muhith Chowdhury for giving us a

wonderful opportunity to make such an interesting and

valuable assignment and giving us a clear concept about the

assignment.

At last but not the least, without the help of our friends and classmates it was quite impossible to prepare such kind of assignment. They gave us some necessary information about this topic which was unknown to us. So, we would like to give thanks to all of them.

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Introduction: Of course motivation is not permanent. But then neither is bathing; but it is something you should do on a regular basis. – Zig Ziglar. Motivation is theoretical construct used to explain behavior. It represents the reasons for people’s actions, desires, & needs. Motivation generally is used to be defined as one’s direction to behavior or what causes a person to repeat a certain behavior. In work places the necessity to use motivational models to influence the workforce is must, without making the workforce to be determined to achieve the intended goal the organization can never achieve it’s intended desire. To make a successful organization over a long period of time the higher mechanics of the organization should use some concepts that make the employee determined to work with enthusiasm & feel themselves as a part of the organizations rise or fall. Need is a natural element for the entire eco system & they get motivated by the things where they can sense the action will somehow fulfil their needs. In the organization setting the motivators must have the weapons in their hand that the employee can sense will fulfil their certain need. At a simple level, it seems obvious that people do things, such as go to work, in order to get stuff they want and to avoid stuff they don't want. Why exactly they want what they do and don't want what they don't is still something a mystery. It's a black box and it hasn't been fully penetrated. Overall, the basic perspective on motivation looks something like this:

In other words, you have certain needs or wants (these terms will be used interchangeably), and this causes you to do certain things (behavior), which satisfy those needs (satisfaction), and this can then change which needs/wants are primary (either intensifying certain ones, or allowing you to move on to other ones). A variation on this model, particularly appropriate from an experimenter's or manager's point of view, would be to add a box labeled "reward" between "behavior" and "satisfaction". So that subjects (or employees), who have certain needs do certain things (behavior), which then get them rewards set up by the experimenter or manager (such as raises or bonuses), which satisfy the needs, and so on. Statement of the problem: People are haunted by their needs, if there were no feelings of need the entire human dynamism should have been a picture of soli ugliness. Everywhere in reality people always are racing to get something by doing the duties & responsibility that are prerequisites for getting their wishful things. Like everywhere the human force of organization are always moving hard as they are motivated by the presented oath from the apex of the organization that they will get something for their help of doing certain work for the organization. These promises can be of different types. Some motivating factors are made of monetary value, here the labor force do actions with the hope of getting monetary solvency. In some other Case the human mechanism runs for the hope of non monetary reward like respect, recognition, social

Needs Behaviour Satisfaction

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status, acceptance etc. Though there are significant strength in the both part of motivator the monetary reward motivation is the vital force & will remain as the top motivator always In the private organization setting the use of motivational concepts are very popular. As most of the private organizations are result oriented & very dynamic in nature the use of motivational elements especially the monetary motivation is very popular. In Bangladesh most of the private organizations generally pay more than the government part. The use of money & the arrangement of a good working environment are two greatest motivational factors in the private organizations of our country. Though the private organization provide good monetary reward to their employees, the presence of other major components like low pressure in work life, higher social status, & the guarantee of having a smooth old age is not certain like the high government related organizations. Importance of the Study Importance of this study is overwhelming as the study deals with the need & nature of motivation in the workforce sector, & without the use of different motivating schemes properly, the most valuable asset of the organization the human force will not work accordingly. & the hope of maintaining a growth prospectus long term sustaining organization is impossible. Organization use type of motivating tools to keep their workforce on track and active. In private organization setting most of the organizations use a mix of intrinsic & extrinsic compensation to keep their employee concentrated towards the achievement of the organizations goal. In this study we are going to describe the many different sets of motivator & to what extent different organizations are using these motivating elements in their organization. This study will help to explain the importance of the motivating formulas & how much successful our regional organizations are in the use of these formulas. Objectives of the study

a) To explain different tools of motivating; b) To explain how against different people & different need the motivating tools change. c) To explain the importance of motivating factors to keep the workforce active. d) How peoples need of extrinsic motivators gradually turns into intrinsic once a

particular employee becomes financially independent. e) How different organizations are motivating their employees; f) How our local organizations are meeting different needs of their employees. g) How much successful the private organizations of this region are in using the

motivational tools. h) The actual motivating factors in this region perceived by the private organizations.

Working definition Internal or external factors that stimulate desire & energy in people to be continually interested & committed to a job, role or subject, or to make an effort to attain a goal. Motivation results from the interaction of both conscious & unconscious factors such as 1) Intensity of desire or need. 2) Incentive or reward value of the goal,

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3) Expectations of the individual. The entire expecting factor from the part of the employee can be found in the different motivational concepts & can be meet systematically by ensuring the response of the employee by their working effort. In result oriented private organizations the proper use of motivational factors must be ensured to ensure bilateral exchange of excellence. Data Source We have collected maximum data from different books relating management & different online articles about concepts of motivations for the employees practiced in different organizations. We also have collected some firsthand information from employees of different private organizations of Sylhet about what tools are being used by their organization to keep them motivated. We also talked with them about their opinions on how the organizations can motivate them more effectively. Limitations of the Study Though we have tried to make the study as sound as possible but still we think there are some lacking in the whole assignment system. Because of time limitation & the study is huge & complex in nature we failed to draw the entire picture accordingly. The firsthand information collection was particularly difficult as many of the employees are not aware about the academic base of motivation, they are not very conscious about different motivating factors. The organizations on the other hand do not have any establish base of motivation system, they rarely provide well structured package of extrinsic & intrinsic compensation. The secondary information house on the other hand is very gigantic. The various popular concepts of motivations are not well organized & used in maximum local organizations. We have tried to link the concepts with the private organizations behavior though they are not made on the basis of management but somehow they are connected with each other. Defining Motivation The term motivation is derived from the Latin word movere, meaning "to move." Motivation can be broadly defined as the forces acting on or within a person that cause the arousal, direction, and persistence of goal-directed, voluntary effort. Motivation theory is thus concerned with the processes that explain why and how human behavior is activated. The broad rubric of motivation and motivation theory is one of the most frequently studied and written-about topics in the organizational sciences, and is considered one of the most important areas of study in the field of organizational behavior. Despite the magnitude of the effort that has been devoted to the study of motivation, there is no single theory of motivation that is universally accepted. The lack of a unified theory of motivation reflects both the complexity of the construct and the diverse backgrounds and aims of those who study it. To delineate these crucial points, it is illuminating to consider the development of motivation and motivation theory as the objects of scientific inquiry. Motivation is the answer to the question “Why we do what we do?”. The motivation theories try to figure out what the “M ” is in the equation: “M motivates P” (Motivator motivates the Person). It is one of most important duty of an entrepreneur to motivate people. (I strongly believe that motivating people with visionary and shared goals are more favorable than

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motivating through tactics, incentives or manipulation through simple carrot and stick approaches because motivating with vision is natural whereas the former is artificial and ephemeral). The job of a manager in the workplace is to get things done through employees. To do this the manager should be able to motivate employees. But that's easier said than done! Motivation practice and theory are difficult subjects, touching on several disciplines. In spite of enormous research, basic as well as applied, the subject of motivation is not clearly understood and more often than not poorly practiced. To understand motivation one must understand human nature itself. And there lies the problem! Human nature can be very simple, yet very complex too. An understanding and appreciation of this is a prerequisite to effective employee motivation in the workplace and therefore effective management and leadership. Motivation as a key to performance improvement There is an old saying you can take a horse to the water but you cannot force it to drink; it will drink only if it's thirsty - so with people. They will do what they want to do or otherwise motivated to do. Whether it is to excel on the workshop floor or in the 'ivory tower' they must be motivated or driven to it, either by themselves or through external stimulus. Are they born with the self-motivation or drive? Yes and no. If no, they can be motivated, for motivation is a skill which can and must be learnt. This is essential for any business to survive and succeed. Performance is considered to be a function of ability and motivation, thus: Job performance =f(ability)(motivation) Ability in turn depends on education, experience and training and its improvement is a slow and long process. On the other hand motivation can be improved quickly. There are many options and an uninitiated manager may not even know where to start. As a guideline, there are broadly seven strategies for motivation.

• Positive reinforcement • Effective discipline and punishment

• Treating people fairly • Satisfying employees needs

• Setting work related goals These are the basic strategies, though the mix in the final 'recipe' will vary from workplace situation to situation. Essentially, there is a gap between an individual’s actual state and some desired state and the manager tries to reduce this gap. Motivation is, in effect, a means to reduce and manipulate this gap. It is inducing others in a specific way towards goals specifically stated by the motivator. Naturally, these goals as also the motivation system must conform to the corporate policy of the organization. The motivational system must be tailored to the situation and to the organization. In one of the most elaborate studies on employee motivation, involving 31,000 men and 13,000 women, the Minneapolis Gas Company sought to determine what their potential employees desire most from a job. This study was carried out during a 20 year period from 1945 to 1965 and was quite revealing. The ratings for the various factors differed only slightly between men and women, but both groups considered security as the highest rated factor. The next three factors were;

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• advancement • type of work

• company - proud to work for Surprisingly, factors such as pay, benefits and working conditions were given a low rating by both groups. So after all, and contrary to common belief, money is not the prime motivator. (Though this should not be regarded as a signal to reward employees poorly or unfairly.) Motivational factors are the products of needs People seem to have different wants. This is fortunate, because in markets this creates the very desirable situation where, because you value stuff that I have but you don't, and I value stuff that you have that I don't, we can trade in such a way that we are both happier as a result. But it also means we need to try to get a handle on the whole variety of needs and who has them in order to begin to understand how to design organizations that maximize productivity. Part of what a theory of motivation tries to do is explaining and predicts who has which wants. This turns out to be exceedingly difficult. Many theories posit a hierarchy of needs, in which the needs at the bottom are the most urgent and need to be satisfied before attention can be paid to the others. Three Components of Motivation Expectancy theory claims that people will be motivated to exert effort on the job when they believe that doing so will help them achieve the things they want. It assumes that people are rational beings who think about what they have to do to be rewarded and how much the reward means to them before they perform their jobs. Specifically, expectancy theory views motivation as the result of three different types of beliefs that people have. These are: expectancy—the belief that one's effort will affect performance, instrumentality—the belief that one's performance will be rewarded, and valence—the perceived value of the expected rewards. For a summary of these components and their role in the overall theory. Expectancy: Sometimes people believe that putting forth a great deal of effort will help them get a lot accomplished. However, in other cases, people do not expect that their efforts will have much effect on how well they do. For example, an employee operating a faulty piece of equipment may have a very low expectancy. Someone working under such conditions probably would not continue to exert much effort. After all, there is no good reason to go on trying to fill a bucket riddled with holes. Accordingly, good managers will do things that help their subordinates believe that their hard work will lead them to do their jobs better. With this in mind, training employees to do their jobs better can be very effective in helping enhance expectancy beliefs. Indeed, a large part of working more effectively involves making sure that one's efforts will pay off. Some companies have taken a more direct approach by soliciting and following their employees' suggestions about ways to improve their work efficiency. For example, United Electric Controls (a manufacturer of industrial temperature and pressure controls located in Watertown, Massachusetts) routinely asks its employees for ways it can help them do their jobs more effectively. Since instituting this approach, not only have individual employees become more productive, but the company as well. In fact, important indicators revealed that the company's performance improved dramatically after it began following its employees' suggestions (For instance, on-time deliveries rose from 65 percent to 95 percent).

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Instrumentality: Even if an employee performs at a high level, his or her motivation may suffer if that performance is not appropriately rewarded – that is, if the performance is not perceived as instrumental in bringing about the rewards. So, for example, an extremely productive employee may be poorly motivated if he or she has already reached the top level of pay given by the company. Recognizing this possibility, several organizations have crafted pay systems that explicitly link desired performance to rewards. Consider, for example, the newly instituted pay plan for IBM's 30,000 sales representatives. Previously, most of the pay these reps received was based on flat salary; their compensation was not linked to how well they did. Now, however, their pay is carefully tied to two factors that are essential to the company's success – profitability and customer satisfaction. So, instead of receiving commissions on the amount of the sale, as so many salespeople do, 60 percent of IBMers' commissions are tied to the company's profit on that sale. As a result, the more the company makes the more the reps make. And, to make sure that the reps don't push only high profit items that customers might not need, the remaining 40 percent of their commissions are based on customer satisfaction. Checking on this, customers are regularly surveyed about the extent to which their sales representatives helped them meet their business objectives. The better the reps have done in this regard, the greater their commissions. Since introducing this plan, IBM has been effective in reversing its unprofitable trend. Although there are certainly many factors that may have assisted in this turnaround, experts are confident that the practice of clearly linking desired performance to individual rewards is a key factor. The Role of Motivation in Performance Thus far, we have discussed the three components of motivation identified by expectancy theory. However, expectancy theory views motivation as just one of several determinants of job performance. Motivation combines with a person's skills and abilities, role perceptions, and opportunities to influence job performance. It's no secret that the unique characteristics, special skills, and abilities of some people predispose them to perform their jobs better than others. For example, a tall, strong, well coordinated person is likely to make a better professional basketball player than a very short, weak, uncoordinated one even if the shorter person is highly motivated to succeed. Recognizing this, it would be a mistake to assume that someone performing below par is poorly motivated. Instead, some poor performers may be very highly motivated, but lacking the knowledge or skills needed to succeed. With this in mind, companies often make big investments in training employees so as to ensure that they have what it takes to succeed, regardless of their levels of motivation. Expectancy theory also recognizes that job performance will be influenced by people's role perceptions that is, what they believe is expected of them on the job. To the extent that there are uncertainties about what one's job duties may be, performance is prone to suffer. For example, a shop foreman who believes his primary job duty is to teach new employees how to use the equipment may find that his performance is downgraded by a supervisor who believes he should be spending more time doing routine paperwork instead. In this case the foreman's performance wouldn't suffer due to any deficit in motivation, but because of misunderstandings regarding what the job entails. Finally, expectancy theory recognizes the role of opportunities to perform one's job. Even the best employees may perform at low levels if their opportunities are limited. This may occur, for example, if there is an economic downturn in a salesperson's territory, or if the company's available inventory is insufficient to meet sales demand.

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Motivational concepts Maslow’s Theory of Need When motivation theory is being considered the first theory that is being recalled is Maslow’s hierarchy of needs which he has introduced in his 1943 article named as “A Theory of Human Motivation”. According to this theory, individual strives to seek a higher need when lower needs are fulfilled. Once a lower-level need is satisfied, it no longer serves as a source of motivation.

Needs are motivators only when they are unsatisfied.

a) In the first level, physiological needs exist which include the most basic needs for humans to survive, such as air, water and food.

b) In the second level, safety needs exist which include personal security, health; well-being and safety against accidents remain.

c) In the third level, belonging needs exit. This is where people need to feel a sense of belonging and acceptance. It is about relationships, families and friendship. Organizations fulfill this need for people.

d) In the fourth level, self-esteem needs remain. This is where people looks to be respected and to have self-respect. Achievement needs, respect of others are in this level.

e) In the top-level, self-actualization needs exist. This level of need pertains to realizing the person’s full potential.

Implications of Maslow’s needs hierarchy in the workplace especially in the private organizations:- We have tried to find out the motivational concept use of different private organizations. We started our searching by holding the Maslow’s theory as a priority concept as it is the most common of the concepts & strongly accepted by organizations. Actually whether it is a public or private organization the organizations with lower resource structure are always focused on fulfilling the primary stages of Maslow’s theory. The physiological needs, safety needs are the most common needs that are fulfilled by majority of the organizations. Mostly the small capital private ventures & different non government organizations of our country provide low payment to their employees that leads to the fulfillment of the primary needs of this hierarchy. On the other hand many private organizations like private banks, high capital led companies; private universities are paying at higher rates, fulfilling various intrinsic needs. The employees of these high esteemed organizations are well educated & aware about different organizations motivational programs that actually pressurize their respective

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organization to pay high to retain them. As these employees are financially secured & the eye of the organizations are fixed there to fulfill the upper class needs of the employees. Alderfer's ERG theory Alderfer classifies needs into three categories, also ordered hierarchically:

• growth needs (development of competence and realization of potential)

• relatedness needs (satisfactory relations with others) • existence needs (physical well-being)

This is very similar to Maslow can be seen as just collapsing into three tiers. Alderfer believed that as you start satisfying higher needs, they become more intense (e.g., the power you get the more you want power), like an addiction. This theory also believes that:- Not everyone is motivated by the same things. It depends where you are in the hierarchy (think of it as a kind of personal development scale) The needs hierarchy probably mirrors the organizational hierarchy to a certain extent: top managers are more likely to motivate by self-actualization/growth needs than existence needs. Implications of ERG Theory in Contemporary Private Organizations:- The ERG theory of Clayton Alderfer is just another type of formation of Maslow’s needs hierarchy. Clayton here combined Maslow’s physiological & safety needs under the existence category, Blended Maslow’s social needs & external component of Maslow’s esteem classification, finally Alderfer developed growth needs that are composed by Maslow’s intrinsic components of social needs & self actualization. Private organization use this theory’s growth & relatedness needs for the high skilled & statuses employees & try to provide the components of existence needs requirement for lower & field level employees. Truth is most of the organization do not maintain this theory’s principals consciously; mostly it comes to them naturally. Cognitive Evaluation Theory This theory suggests that there are actually two motivation systems: intrinsic and extrinsic that corresponds to two kinds of motivators:

a) Intrinsic motivators: Achievement, responsibility and competence. Motivators that come from the actual performance of the task or job the intrinsic interest of the work.

b) Extrinsic motivators: Pay, promotion, feedback, working conditions things that come from a person's environment, controlled by others.

One or the other of these may be a more powerful motivator for a given individual. Intrinsically motivated individuals perform for their own achievement and satisfaction. If they come to believe that they are doing some job because of the pay or the working conditions or some other extrinsic reason, they begin to lose motivation. The belief is that the presence of powerful extrinsic motivators can actually reduce a person's intrinsic motivation, particularly if the extrinsic motivators are perceived by the person to be controlled by people.

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In other words, a boss who is always dangling this reward or that stick will turn off the intrinsically motivated people. Use of Cognitive Evaluation Theory in Private Organizations:- When we see the organizations motivating process from extrinsic & intrinsic viewpoint, most of the private organizations of contemporary age give more importance on the extrinsic package of compensation. The organizations believe that if the employees of the organizations get proper payment & related service from the organization they will be ready to perform in any condition. As Bangladesh is a newly developing country many people still are now unemployed & actually ready to do job even in severe working condition to change their fate & improve their financial condition. The high class private organizations that work in dynamic & competitive situation try to provide different type of intrinsic compensation with the extrinsic to attract & retain employees. There is a increased belief that if the organization is highly competitive & have to attract & retain employees with greater skills & educational qualification must have to pay their employee with both intrinsic & extrinsic elements. Two Factor theories (Herzberg) According to Herzberg, two kinds of factors affect motivation, and they do it in different ways: Hygiene factors: These are factors whose absence motivates, but whose presence has no perceived effect. They are things that when you take them away, people become dissatisfied and act to get them back. A very good example is heroin to a heroin addict. Long term addicts do not shoot up to get high; they shoot up to stop being sick to get normal. Other examples include decent working conditions, security, pay, benefits (like health insurance), company policies, interpersonal relationships. In general, these are extrinsic items low in the Maslow/Alderfer hierarchy. Motivators : These are factors whose presence motivates. Their absence does not cause any particular dissatisfaction, it just fails to motivate. Examples are all the things at the top of the Maslow hierarchy, and the intrinsic motivators. So hygiene factors determine dissatisfaction, and motivators determine satisfaction. The two scales are independent, and you can be high on both. If you think back to the class discussion on power, we talked about a baseline point on the well-being scale. Power involved a threat to reduce your well-being, causing dissatisfaction. Hence, power basically works by threatening to withhold hygiene factors. Influence was said to fundamentally be about promising improvements in well-being -- when you are influenced to do something, it is because you want to, not because you were threatened. Influence basically works by offering to provide motivators (in Herzberg's terms). Typical Implications of Herzberg’s Theory: Herzberg’s theory is well studied & practiced in the private organizations especially in the high ranked private organization. The organizations of low capital always end up with paying the employee somehow but the dynamic & powerful organizations know that the employees

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with high education, quality, & capacity will not be just satisfied with hygiene or the simple payment & other benefit maintenance. Good private organizations always keep the difference of hygiene & motivating factors & try to provide the employee with better working condition, try to provide range of intrinsic compensation services to keep them charged. Equity Theory Suppose employee A gets a 20% raise and employee B gets a 10% raise. Will both be motivated as a result? Will A be twice as motivated? Will be B be negatively motivated? Equity theory says that it is not the actual reward that motivates, but the perception, and the perception is based not on the reward in isolation, but in comparison with the efforts that went into getting it, and the rewards and efforts of others. If everyone got a 5% raise, B is likely to feel quite pleased with her raise, even if she worked harder than everyone else. But if a got an even higher raise, B perceives that she worked just as hard as A, she will be unhappy. In other words, people's motivation results from a ratio of ratios: a person compares the ratio of reward to effort with the comparable ratio of reward to effort that they think others are getting. Of course, in terms of actually predicting how a person will react to a given motivator, this will get pretty complicated:

• People do not have complete information about how others are rewarded. So they are going on perceptions, rumors, and inferences.

• Some people are more sensitive to equity issues than others Some people are willing to ignore short-term inequities as long as they expect things to work out in the long-term. Equity theory suggests that individuals engage in social comparison by comparing their efforts and rewards with those of relevant others. The perception of individuals about the fairness of their rewards relative to others influences their level of motivation. Equity exists when individuals perceive that the ratio of efforts to rewards is the same for them as it is for others to whom they compare themselves. Inequity exists when individuals perceive that the ratio of efforts to rewards is different (usually negatively so) for them than it is for others to whom they compare themselves. There are two types of inequity—under-reward and over-reward. Under-reward occurs when a person believes that she is either puts in more efforts than another, yet receives the same reward, or puts in the same effort as another for a lesser reward. For instance, if an employee works longer hours than her coworker, yet they receive the same salary, the employee would perceive inequity in the form of under-reward. Conversely, with over-reward, a person will feel that his efforts to rewards ratio is higher than another person's, such that he is getting more for putting in the same effort, or getting the same reward even with less effort. While research suggests that under-reward motivates individuals to resolve the inequity, research also indicates that the same is not true for over-reward. Individuals who are over-rewarded often engage in cognitive dissonance, convincing themselves that their efforts and rewards are equal to another's. According to the equity theory, individuals are motivated to reduce perceived inequity. Individuals may attempt to reduce inequity in various ways. A person may change his or her level of effort; an employee who feels under-rewarded is likely to work less hard. A person may also try to change his or her rewards, such as by asking for a raise. Another option is to

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change the behavior of the reference person, perhaps by encouraging that person to put forth more effort. Finally, a person experiencing inequity may change the reference person and compare him or herself to a different person to assess equity. For managers, equity theory emphasizes the importance of a reward system that is perceived as fair by employee. Reinforcement Theory This theory can be traced to the work of the pioneering behaviorist B.F. Skinner. It is considered a motivation theory as well as a learning theory. Reinforcement theory posits that motivated behavior occurs as a result of reinforces, which outcomes are resulting from the behavior that makes it more likely the behavior will occur again. This theory suggests that it is not necessary to study needs or cognitive processes to understand motivation, but that it is only necessary to examine the consequences of behavior. Behavior that is reinforced is likely to continue, but behavior that is not rewarded or behavior that is punished is not likely to be repeated. Reinforcement theory suggests to managers that they can improve employees' performance by a process of behavior modification in which they reinforce desired behaviors and punish undesired behaviors. Operant Conditioning is the term used by B.F. Skinner to describe the effects of the consequences of a particular behavior on the future occurrence of that behavior. There are four types of Operant Conditioning: Positive Reinforcement, Negative Reinforcement, Punishment, and Extinction . Both Positive and Negative Reinforcement strengthen behavior while both Punishment and Extinction weaken behavior.

• Positive reinforcement. Strengthening a behavior. This is the process of getting goodies as a consequence of a behavior. You make a sale, you get a commission. You do a good job; you get a bonus & a promotion.

• Negative reinforcement. Strengthening a behavior. This is the process of having a stressor taken away as a consequence of a behavior. Long-term sanctions are removed from countries when their human rights records improve. (you see how successful that is!). Low status as geek at Salomon Brothers is removed when you make first big sale.

• Extinction. Weakening a behavior. This is the process of getting no goodies when do a behavior. So if person does extra effort, but gets no thanks for it, they stop doing it.

• Punishment. Weakening a behavior. This is the process of getting a punishment as a consequence of a behavior. Example: having your pay docked for lateness.

Apply Withhold

Reward positive reinforcement (raise above baseline)

negative reinforcement (raise up to baseline)

Stressor punishment (bring down below baseline)

extinction (stay at baseline)

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Reinforcement schedules. The traditional reinforcement schedule is called a continuous reinforcement schedule. Each time the correct behavior is performed it gets reinforced. Then there is what we call an intermittent reinforcement schedule. There are fixed and variable categories. The Fixed Interval Schedule is where reinforcement is only given after a certain amount of time has elapsed. So, if you decided on a 5 second interval then each reinforcement would occur at the fixed time of every 5 seconds. The Fixed Ratio Schedule is where the reinforcement is given only after a predetermined number of responses. This is often seen in behavior chains where a number of behaviors have to occur for reinforcement to occur. The Variable Interval Schedule is where the reinforcement is given after varying amounts of time between each reinforcement. The Variable Ratio Schedule is where the reinforcement is given after a varying number of correct responses. Fluctuating combinations of primary and secondary reinforces fall under other terms in the variable ratio schedule; For example, Reinforces delivered intermittently in a Randomized Order (RIR) or Variable Ratio with Reinforcement Variety (VRRV). Implications of Reinforcement Theory: Smart organizations always use this theory’s component to exert their opinion about any action done by any employee. In the private organization it is evident that the use of positive/negative reinforcement to express like or dislike from the part of the employers are very common. There are evidence that because of more control over the job most of the employees of the government banks are not so attentive toward hard work & providing faster service, because they do not face any threat of job losing or other punishment for not performing rightly, nor they get any reward if they do good jobs than other in the bank because the appraisal system there is not ordered. On the other hand the employees in the private banks & other institutes usually face punishment for their low performance; they also get prompt reward if they do outstanding. Following reinforcement model in maximum of the giant organization is a reason of average good performance of the private sector.

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Fixed Variable

Interval

give reward after first proper response following a specified time period (yearly raise) [short term]

give reward after a certain amt of time w/ the amt changing before the next reward (unexpected bonus based on merit) [medium term]

Ratio

punishment (subtract from baseline) (commissions or piecework pay) [medium term]

give reward after a number of responses, w/ that no. changing before the next reward (team-based bonus) [long term]

Expectancy Theory (Vroom) This theory is meant to bring together many of the elements of previous theories. It combines the perceptual aspects of equity theory with the behavioral aspects of the other theories. Basically, it comes down to this "equation":

M = E*I*V or motivation = expectancy * instrumentality * valence

• M (motivation) is the amount a person will be motivated by the situation they find

themselves in. It is a function of the following.

• E (expectancy) = The person's perception that effort will result in performance. In other words, the person's assessment of the degree to which effort actually correlates with performance.

• I (instrumentality) = The person's perception that performance will be rewarded/punished. I.e., the person's assessment of how well the amount of reward correlates with the quality of performance. (Note here that the model is phrased in terms of extrinsic motivation, in that it asks 'what are the chances I'm going to get rewarded if I do good job?'. But for intrinsic situations, we can think of this as asking 'how good will I feel if I can pull this off?').

• V(valence) = The perceived strength of the reward or punishment that will result from the performance. If the reward is small, the motivation will be small, even if expectancy and instrumentality are both perfect (high).

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Implications of Expectancy Model in the Private Organizations:- People do not do something without the ensurity of getting something in return. In the organization setting the organization must communicate that what the people have to do, how much possible the target to achieve, & what kind of reward they are going to get as a result of the performance occurrence. In the highly profit seeking private organization usually the pay & performance is correlated. These organizations communicate a strong connection between reward & the successful efforts. Private Banks & other national or multinational companies set clear rewards against a set of prerequisite jobs. In marketing & sells department of many organization the performance of the employees depends on how much realistic the target is, & how much important the reward of the job to the respective employees. Incentive Theory Incentive theory suggests that employee will increase her/his effort to obtain a desired reward. This is based on the general principle of reinforcement. The desired outcome is usually “money”. This theory is coherent with the early economic theories where man is supposed to be rational and forecasts are based on the principle of “economic man”. Implication of incentive theory in private organization: The implication of incentive theory is very popular all over the world nowadays. Especially the private organizations extensively follow this system as they always try to pay for the actual performance only; Incentive payment is an example of paying for the on field merit & reducing the cost of general payment increase, a system to encourage the high performance people in the organization. Almost every visionary private organization that seeks profit uses this system to encourage performance by paying for it. Almost every Banks, Insurance, MLM companies, Non government organizations of our country provide incentive payment to their employee. Motivational theory in practice at Tesco Abraham Maslow argued that humans are motivated by five essential needs. He formed a pyramid demonstrating these needs which he called the 'hierarchy of needs'. At the bottom of the pyramid are basic needs, those that motivate people to work food and shelter. Once these needs are met through pay, individuals want safety and security through, for example, good job conditions. Social needs refer to the need to belong, to be part of a group. Self-esteem may arise from a promotion. Right at the top is Self fulfilment - the area for creativity, challenge and interest. Maslow suggested that achieving one level motivates us to achieve the next. In 1959 Frederick Herzberg developed the Two-Factor theory of motivation. His research showed that certain factors were the true motivators or satisfiers. Hygiene factors, in contrast, created dissatisfaction if they were absent or inadequate. Dissatisfaction could be prevented by improvements in hygiene factors but these improvements would not alone provide motivation. Tesco staff can even influence what food goes onto its restaurant menus. Employees thus become motivated to make choices that will increase their use of the restaurants.

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Goal Setting Theory Edwin Locke proposed Goal Theory in 1968, which proposes that motivation and performance will be high if individuals are set specific goals which are challenging, but accepted, and where feedback is given on performance. The two most important findings of this theory are: Setting specific goals (e.g. I want to earn a million before I am 30) generates higher levels of performance than setting general goals (e.g. I want to earn a lot of money). The goals that are hard to achieve are linearly and positively connected to performance. The harder the goal, the more a person will work to reach it. The goal-setting theory posits that goals are the most important factors affecting the motivation and behavior of employees. This motivation theory was developed primarily by Edwin Locke and Gary Latham. Goal-setting theory emphasizes the importance of specific and challenging goals in achieving motivated behavior. Specific goals often involve quantitative targets for improvement in a behavior of interest. Research indicates that specific performance goals are much more effective than those in which a person is told to "do your best." Challenging goals are difficult but not impossible to attain. Empirical research supports the proposition that goals that are both specific and challenging are more motivational than vague goals or goals that are relatively easy to achieve. Several factors may moderate the relationship between specific and challenging goals and high levels of motivation. The first of these factors is goal commitment, which simply means that the more dedicated the individual is to achieving the goal, the more they will be motivated to exert effort toward goal accomplishment. Some research suggests that having employees participate in goal setting will increase their level of goal commitment. A second factor relevant to goal-setting theory is self-efficacy, which is the individual's belief that he or she can successfully complete a particular task. If individuals have a high degree of self-efficacy, they are likely to respond more positively to specific and challenging goals than if they have a low degree of self-efficacy. Implications of Goal Setting Theory in Private Organizations:- Setting specific goals for the employee to achieve at the end of a specific time period is a common practice in many organizations. The mainstream private organizations that are furiously result oriented are continuously setting goals for their employees to compete in the throat cutting market system. Most of the private organizations especially private banks & other financial institutions are very familiar in setting goals for different employees & groups within the organization. Nowadays many organizations are reducing the basic payment of the employees especially of the marketing & sells department, & including incentives offer as a part of payment that depends on achieving goal. Though this system seems difficult to many people, but if the goal is not impossible many employee will find it challenging. Some people always want to work in dynamic situation & are ambitious about their career they always see this system as a very good staircase of success. The very talented & industrious employee is said feel more enthusiasm as the working condition & goals becomes challenging. In our country different MLM Company that’s business policy is to set goals for every employee can be an example of how achievable challenge & proper payback to achieve this goal can be so effective.

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Findings i. Motivation is a core factor that is used to make the employees aligned with the

organizations goal. ii. There are different motivation theories that are used in the organizational settings to

make their employees eager about the organizational goal achievement & the motivational factors can be monetary or non monetary.

iii. The private organization’s employees show average good performance than the public sector employees as a result of attractive motivational factors.

iv. The organizations must fulfill the employee needs step by step, like the employee who suffers from physiological needs can’t be satisfied by giving social status.

v. There must be a good mix or combination of intrinsic & extrinsic reward to attract & retain valuable employees.

vi. There must be a strong connection between pay & performance, & on average the private organizations are maintaining that.

vii. In the private organization practice positive/negative reinforcement, extinction, punishments are common in response to the employee behavior.

viii. The use of incentive as a major part of basic payment is a very common practice in the private companies that makes the company more productive & competitive.

ix. Goal setting for the employees & linking the goal achievement with reward is also an increasing practice in privately owned financial organizations.

Recommendation:- This age of globalization is the age of performance based competition. To be the survivor the organization must use their resources wisely & effectively. The human resources are the most incredible & valuable assets of any organization. With proper motivation for work, proper rewarding, & performance based right reinforcement any organization can stand & compete in this highly competitive market. More proper use of the above’s motivation practices can make an organization a long time sustaining one.

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Conclusion: The job of a manager in the workplace is to get things done through employees. To do this the manager should be able to motivate employees. But that's easier said than done! Motivation practice and theory are difficult subjects, touching on several disciplines. In spite of enormous research, basic as well as applied, the subject of motivation is not clearly understood and more often than not poorly practiced. To understand motivation one must understand human nature itself. And there lies the problem! Human nature can be very simple, yet very complex too. An understanding and appreciation of this is a prerequisite to effective employee motivation in the workplace and therefore effective management and leadership. Scientists have defined motivation as the process of arousing, directing, and maintaining behavior toward a goal. As this definition suggests, motivation involves three components. The first component, arousal, has to do with the drive, or energy behind our actions. For example, when we are hungry, we are driven to seek food. The direction component involves the choice of behavior made. A hungry person may make many different choices--eat an apple, have a pizza delivered, go out for a burger, and so on. The third component, maintenance, is concerned with people's persistence, their willingness to continue to exert effort until a goal is met. The longer you would continue to search for food when hungry, the more persistent you would be. Putting it all together, it may help to think of motivation by using the analogy of driving a car. In this manner, arousal may be likened to the energy generated by the car's engine and fuel system. The direction it takes is dictated by the driver's manipulation of the steering wheel. And finally, maintenance may be thought of as the driver's determination to stay on course until the final destination is reached. While motivation, in general, can be described by this simple analogy, it is really a highly complex concept. This is reflected by the fact that people often are motivated by many things at once, sometimes causing internal conflicts. For example, a factory worker may be motivated to make a positive impression on his supervisor by doing a good job, but at the same time he may be motivated to maintain friendly relations with his co-workers by not making them look bad. This example has to do with job performance, and indeed, motivation is a key determinant of performance. However, it is important to note that motivation is not synonymous with performance. In fact, as we will explain later, even the most highly motivated employee may fall short of achieving success on the job--especially if he or she lacks the required skills or works under unfavorable conditions. Clearly, while motivation does not completely account for job performance, it is an important factor. More importantly, it is a factor that managers may have some control over. This chapter covers the different approaches for motivating people on the job.

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References:

1. Organizational Behavior 2. ----- By S.P Robbins, 14th Edition 3. http://changingminds.org/explanations/theories/extrinsic_motivation.htm 4. http://www.lib.uwo.ca/programs/generalbusiness/herzberg.html 5. http://www.accel-team.com/motivation 6. www.studymode.com 7. http://web.dcp.ufl.edu/hinze/MOTIVATION THEORIES.htm