MOTIVATION

INTRODUCTION We should know what inspires entrepreneurs &

their employees to give their best to the organization.

Motivation theories attempt to explain what energizes everyone to accomplish organizational goals.

Question: To what extent are these theories promote entrepreneurship?

THE NATURE OF MOTIVATION

Motivation is a psychological process through which unsatisfied wants or needs lead to drives that are aimed at goals or incentives.

The Basic Motivation Process

THEORY X AND THEORY Y

Theory XThe assumption that people dislike work,

will attempt to avoid it, and must be coerced, controlled, or threatened with punishment if they are to perform.

Theory YThe assumption that people like work, are

creative, seek responsibility, and can exercise self-direction and self-control.

MOTIVATORS

Intrinsic A person’s internal desire to do something, due

to such things as interest, challenge, and personal satisfaction.

Extrinsic Motivation that comes from outside the person,

such as pay, bonuses, and other tangible rewards.

THE NATURE OF MOTIVATION

Content Theories of Motivation

Theories that explain work motivation in terms of what arouses, energizes, or initiates employee behavior.

Process Theories of Motivation

Theories that explain work motivation by how employee behavior is initiated, redirected, and halted.

Content and Process Theories

SELECT THEORIES OF MOTIVATION

Content TheoriesMaslow’s Hierarchy of NeedsHertzberg’s Two-Factor TheoryAchievement theory

Process TheoriesGoal Setting TheoryExpectancy TheoryEquity Theory

MASLOW’S HIERARCHY OF NEEDS

Physiological

Safety

Social

Esteem

Self-actualization

CONTENT THEORIES

Maslow’s theory rests on a number of basic assumptions: Lower-level needs must be satisfied before higher-level

needs become motivators

A need that is satisfied no longer serves as a motivator

There are more ways to satisfy higher-level than there are ways to satisfy lower-level needs

Maslow’s Hierarchy of Needs

CONTENT THEORIES

A theory that identifies two sets of factors that influence job satisfaction:

MotivatorsJob-content factors such as achievement, recognition, responsibility, advancement, and the work itself

Hygiene FactorsJob-context variables such as salary, interpersonal relations, technical supervision, working conditions, and company policies and administration

Herzberg’s Two-Factor Theory of Motivation

CONTENT THEORIES

Adherents to achievement motivation theory believe people have an innate need to succeed or to reach a high level of attainment.

Under the theory, achievement motivation tends to feed on itself. That is, people who experience great levels of success are motivated to strive for more success.

This postulates that people who achieve high levels of excellence tend to regard those who do not as not having tried hard enough, while those who are not high achievers tend to see those who are as being lucky.

Achievement Theory of Motivation

PROCESS THEORIES

A process theory that focuses on how individuals go about setting goals and responding to them and the overall impact of this process on motivation

Specific areas that are given attention in goal-setting theory include:The level of participation in setting goalsGoal difficultyGoal specificityThe importance of objectiveTimely feedback to progress toward goals

Goal-Setting Theory

PROCESS THEORIES

A process theory that postulates that motivation is influenced by a person’s belief that

Effort will lead to performance Performance will lead to specific outcomes, and The outcomes will be of value to the individual.

Expectancy theory predicts that high performance followed by high rewards will lead to high satisfaction

Expectancy Theory

• When people perceive they are being treated equitably, it will have a positive effect on their job performance and satisfaction

• If they believe they are not being treated fairly (especially in relation to relevant others), they will be dissatisfied. This will have a negative effect on their job performance and they will strive to restore equity.

PROCESS THEORIES

Equity Theory

THE DRIVING FORCE: WHAT MOTIVATES INDIAN ENTREPRENEURS?

Motivator % mentioning

(On the basis of Rewards of entrepreneurship )

Autonomy 57

Making money/financial independence 43

Saw business opportunity/impact on industry 27

Recognition of self and/or organization 23

Desire to create something new/innovate 20

Build something important/make a difference 17

Grow a business from scratch 17

Desire to be entrepreneur/excitement of entrepreneurship 03

THE DRIVING FORCE: WHAT MOTIVATES INDIAN ENTREPRENEURS?Motivator % mentioning

(Personal Qualities)

Intellectual challenge/achieve potential 27

Instinct 10

Others 10

(Career)

Career growth/diversification/satisfaction 13

Others 03

(Experience)

Utilize previous experience 06

Had technology/industry vision 03

(Non-monetary Factors)

Help India in various ways 23

Non-monetary success/personal satisfaction 07

Create value/jobs/wealth in society 03

3-CIRCLES-HEDGEHOG-CONCEPT

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