Motivation and Needs Theory

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Loyola Institute of Business Administration, Chennai

09

Motivation & Needs

TheoryNeeraj Jain

F09097

LIBA PGDM 09-11


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Motivation & Needs Theory 2009

Loyola Institute of Business Administration Page 2

ACKNOWLEDGEMENTS

I, whole heartedly and with deep gratitude, would like to thank Prof. T A Sivasubramaniam for

all his help in successful completion of this report and the subject. It would have been impossibleto do the required work without his kind help and guidance.


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Contents

Introduction.3

Motivation and Its Definition..3

Nature of Motivation...3

Types of Motivation....4

Maslows Need Hierarchy Theory..6

Herzbergs Motivation-Hygiene Theory.8

Alderfers ERG Theory...9

McCellend Theory.10

Vrooms Expectancy Theory.12

Conclusion.14


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Motivation and Needs Theory

Introduction:

Motivation is one of the most important factors affecting human behaviour and

performance. This is the reason why managers attach great importance to motivation in

organizational setting. Rensis Likert, has called motivation as the core of management.

Effective directing of people leads the organization to effectiveness, both at organizational and

individual levels.

Motivation and Its Definition:

The willingness to exert high level of effort to reach organizational goals, conditioned by

the efforts ability to satisfy some individual need.

Robert Dubin definesMotivation as the complex forces starting and keeping a person at work

in an organization. Motivation is something that moves the person to action. And continues him

in the course of action of action already initiated

Nature ofMotivation:

On the basis of the above description, the following characteristics of motivation can be

identified:

1. Motivation is a psychologicalconcept. It is based on human needs which generate within an

individual. Needs are feelings influence the behavior and activities of the individual.

2. Motivation is total, not piece-meal. A person cannot be motivated in parts. An employee is an

indivisible unite and he needs are interrelated. He cannot be motivated by fulfilling some of his

needs partly.

3. Motivation is a continuous process. It is not a time bound programme or a touch-and-go affair.

Human needs are infinite. A soon as one need is satisfied new ones arise.


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4. Motivation causes goal-directed behavior. A person behaves in such a way that he can satisfy

his goals or needs.

5. Motivation may befinancialornon-financial. The form of motivation depends upon the typeof needs. Financial incentives include pay, allowance, bonus and prerequisites. Non-financial

incentives consist of recognition, praise, responsibility, participation in decision-making,

challenging job, etc.

6. Motivation is a complex process. There is no universal theory or approach to motivation.

Moreover, individuals differ in what motivates them. Therefore, a manager has to analyze and

understand variety of needs and has to use variety of rewards to satisfy them. He should not

expect overnight results.

Theories ofMotivation:

A. Maslows Need Hierarchy Theory

B. Herzbergs Motivation-Hygiene Theory

C. Alderfers ERG Theory

D. McCellend Theory

E. Vrooms Expectancy Theory


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A. Maslows Need Hierarchy Theory:

There is a hierarchy of five needs physiological, safety, social, esteem, and self-

actualization and as each need is substantially satisfied, the next need becomes dominant.

1. Physiological:

These needs relate to the survival and maintenance of human life. Therefore, these are the

most primary or basic needs and must be satisfied before all other needs. It includes the needs of

air, water, food, sex, rest, clothing, shelter, etc.

2. Safety or Security Needs:

Once Physiological needs are satisfied to be reasonable level, safety needs emerge and

become dominant. These needs imply the need for self-preservation and economic independence.

People want bodily safety, job security, provision for old age, insurance against risk etc.

3. Social Needs:

Man is a social animal. He therefore, wants association, belonging, friendship, love and

affection. These are the need to seek affiliation and affection of ones fellow beings. People form

informal groups to seek meaningful associations companionship.


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4. Self Esteem or Ego Needs:

These are concerned with awareness of self importance and recognition from others.

Esteem needs consist of such things as self confidence, self respect, independence, power,

prestige, achievement, praise and status.

5. Self Actualization Needs:

This implies the desire to become more and more of what one is, to become everything

that on is capable of becoming. It involves self fulfillment or achieving what one considers to

be his mission in life.

B. Herzbergs Motivation-Hygiene Theory:

Frederick Herzbergand his associates conducted research wherein they interviewed 20

engineers and accountants from nine different companies in Pittsburg area of U.S.A. These

executives were asked to recall specific incidents in their experience which made them feel either

exceptionally good or exceptionally bad about their jobs. On the basis of their study, Herzberg

concluded that there are some job conditions which operate primarily to dissatisfy employees

while other job conditions operate primarily to build strong motivation and high job satisfaction.

He called these factors hygiene factors and motivating factors respectively.


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1. Hygiene Factor:

These factors provide no motivation to employees but the absence of these factors serves

as dissatisfies. Many of these factors are traditionally perceived by management as motivators

but these are really more potent as dissatisfies. These are called Hygiene Factors because theysupport the mental health of employees.

Some of the Hygiene Factors are :

Wages, salary and other types of employee benefits. Company policies and administrative rules that govern the working environment. Interpersonal relation with peers, supervisors and subordinates. Cordial relation will

prevent frustration and dissatisfaction.

Working conditions and job security. The job security may be in the form of tenure or itcould be supported by a strong union.

2. Motivational Factor:

These factors help to build strong motivation and high job satisfaction. They are also

known as satisfiers. These are related with the job content. Their absence or decrease will affect

the level of job satisfaction. These factors are achievement, advancement; work itself, possibility

of growth and responsibility.

Some of these Motivational Factors are:

The Job itself Recognition Achievement Responsibility Growth and advancement.

C. Alderfers ERG Theory:

Alderfer has provided an extension of the Maslows need hierarchy and Herzbergs two

factor theory of motivation, particularly the former. Like the previous theories, Alderfer believes

that there is a value in categorizing needs and that there is a basic distinction between lower

order needs and higher order needs. Based on the empirical evidences, he has found that there

seems to be some overlapping between physiological, security, and social needs. Also, the lines


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of demarcation between social, esteem, and achievement needs are not clear. Based on these

observations, Alderfer has categorized the various needs into three categories: existence needs,

relatedness needs, and growth needs.

1. Existence Needs:

Existence needs include all needs related to physiological and safety aspects of an

individual. Thus, existence needs group physiological and safety needs of Maslow into one

category as these have similar impact on the behavior of the individual.

2. Relatedness Needs:

Relatedness needs include all those needs that involve relationship with other people

whom the individual cares. Relatedness needs cover Maslows social needs and that part of

esteem needs which is derived from the relationship with other people.

3. Growth needs:

Growth needs involve the individual making creative efforts to achieve full potential in

the existing environment. These include Maslows self actualization need as well as that part of


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the esteem need which is internal to the individual like feeling of being unique, felling of

personal growth, etc.

D.Mccellands Motivational Needs Theory:

American David Clarence McClelland (1917-98) achieved his doctorate in psychology at

Yale in 1941 and became professor at Wesleyan University. He then taught and lectured,

including a spell at Harvard from 1956, where with colleagues for twenty years he studied

particularly motivation and the achievement need. He began his McBer consultancy in 1963,

helping industry assess and train staff, and later taught at Boston University, from 1987 until his

death. McClelland is chiefly known for his work on achievement motivation, but his research

interests extended to personality and consciousness. David McClelland pioneered workplace

motivational thinking, developing achievement-based motivational theory and models, and

promoted improvements in employee assessment methods, advocating competency-based

assessments and tests, arguing them to be better than traditional IQ and personality-based tests.

His ideas have since been widely adopted in many organizations, and relate closely to the theory

of Frederick Herzberg.

David McClelland is most noted for describing three types of motivational need, which he

identified in his 1961 book, The Achieving Society:

Achievement Motivation (n-ach) Authority/Power Motivation (n-pow) Affiliation Motivation (n-affil)

David Mcclelland's needs-based motivational model:

These needs are found to varying degrees in all workers and managers, and this mix of

motivational needs characterizes a person's or manager's style and behavior, both in terms of

being motivated and in the management and motivation others.


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The need for achievement (n-ach):The n-ach person is 'achievement motivated' and therefore seeks achievement,

attainment of realistic but challenging goals, and advancement in the job. There is a strong

need for feedback as to achievement and progress, and a need for a sense of accomplishment.

The need for authority and power (n-pow):The n-pow person is 'authority motivated'. This driver produces a need to be

influential, effective and to make an impact. There is a strong need to lead and for their ideas

to prevail. There is also motivation and need towards increasing personal status and prestige.

The need for affiliation (n-affil):The n-affil person is 'affiliation motivated', and has a need for friendly relationships

and is motivated towards interaction with other people. The affiliation driver produces

motivation and need to be liked and held in popular regard. These people are team players.

McClelland said that most people possess and exhibit a combination of these

characteristics. Some people exhibit a strong bias to a particular motivational need, and this

motivational or needs 'mix' consequently affects their behavior and working/managing style.

McClelland suggested that a strong n-affil 'affiliation-motivation' undermines a manager's

objectivity, because of their need to be liked, and that this affects a manager's decision-making

capability. A strong n-pow 'authority-motivation' will produce a determined work ethic and

commitment to the organization, and while n-pow people are attracted to the leadership role, they

may not possess the required flexibility and people-centered skills. McClelland argues that n-ach

people with strong 'achievement motivation' make the best leaders, although there can be a

tendency to demand too much of their staff in the belief that they are all similarly and highly

achievement-focused and results driven, which of course most people are not.


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E. Vrooms Expectancy Theory:

Vrooms expectancy theory has its roots in the cognitive concepts in the choice behavior

utility concepts of classical economic theory. According to Vroom, people will be motivated to

do things to achieve some goals to the extent that they expect that certain action on their part willhelp them to achieve the goal. Vrooms model is built around the concepts of value, expectancy,

and force; its basic assumption is that the choice made by a person among alternative courses of

action is lawfully related to psychological events occurring contemporaneously with the

behavior. Vrooms concept of force is basically equivalent to motivation and may be shown to be

the algebraic sum of products of valences multiplied by expectations. Thus

Motivation (force) = Valence X Expectancy

1. Valence:

According to Vroom, valence means the strength of an individuals preference to a

particular outcome. Other terms equivalent to valence used in various theories of motivation are

incentive, attitude, and expected utility.


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2. Instrumentality:

Another major input into the valence is the instrumentality of the first level outcome in

obtaining a derived second level outcome. Hunt and Hill have exemplified it by promotionmotive. The superior performance (first level outcome) is being instrumental in obtaining

promotion (second level outcome).

3. Expectancy:

Another factor in determining the motivation is expectancy, that is, the probability that a

particular action will lead to the outcome. Expectancy is different from instrumentality input into

valence. Expectancy differs from instrumentality in that it relates efforts to first level outcomes

whereas instrumentality relates first and second level outcomes to each other.

Conclusion:

Various theories of Motivation, discussed above, have various applications in

management practices. In applying motivation theories, managers should take into consideration

how an individual reacts to his work which is a function of fit among:

1. Individuals personality characteristics need patterns, values, and ability;

2. Characteristics of job such as nature of challenge it offers, the autonomy in performing the

job, and the use of skills in performing the job.

Thus, in applying motivation theories at workplace, both intrinsic and extrinsic aspects of

the job must be considered. Intrinsic factors are directly related to the contents of a job while

extrinsic factors are related to the context or environment in which the job is performed. Thus,

motivation theories help in designing reward system, empowering employees, improving quality

of work life, and work design.

Motivation and Needs Theory

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