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MOTIVATION Academic Materials for MBA

MOTIVATION Academic Materials for MBA. Compiled by: Gopal Salim 056-7123960. MOTIVATION. Motivation - Meaning. The word ‘Motivation’ is derived from the Latin Term ‘Movere’ which means ‘Move’.

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MOTIVATION Academic Materials for MBA

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  1. MOTIVATION Academic Materials for MBA Compiled by: Gopal Salim 056-7123960

  2. MOTIVATION

  3. Motivation - Meaning • The word ‘Motivation’ is derived from the Latin Term ‘Movere’ which means ‘Move’. • Motivation is “the processes that account for an individual’s INTENSITY, DIRECTION and PERSISTENCE of effort towards attaining a goal” ( Stephen P. Robbins) • Motivation means to move. It includes three common characteristics: • It concerns with what activates human behavior • It involves what directs this behavior towards a particular goal. • Motivation concerns how this behavior is sustained or supported.

  4. INTENSITY How hard a person tries.

  5. DIRECTION Orientation towards goals

  6. PERSISTENCE How long can maintain effort

  7. Motivation has got three common characteristics: 1. It concerns with what activates human behavior 2. It involves what directs this behavior towards a particular goal 3. Motivation concerns how this behavior is sustained (supported)

  8. Motivation Process Drive/Goal Directed Behavior Need Goal Incentive/Relief

  9. BASIC CHARACTERISTICS OF WORK MOTIVATION • Direction of behavior & is psychological • Level of effort • Level of persistence • Intrinsic and extrinsic motivation • Dynamic and situational • Not easily observed phenomenon • Motivation is goal oriented process • Motivation is influenced by social and cultural norms

  10. THEORIES OF MOTIVATION • Theories categorized into two groups. • CONTENT THEORIES • McGregor’s Theory X and Theory Y • Maslow’s Hierarchy of Needs Theory • ERG Theory • Two Factor Theory • McClelland’s Achievement Motivation Theory • PROCESS THEORIES • Expectancy Theory • Equity Theory • Porter & Lawler Theory

  11. MASLOW’S HIERARCHY OF NEEDS • People are not merely controlled by mechanical forces (stimuli and reinforcement) or unconscious instinctual impulses of psychoanalysis.

  12. SELF ACTUALIZATION ESTEEM LOVE, AFFECTION & BELONGINGNESS (SOCIAL) SAFETY NEEDS PHYSIOLOGICAL NEEDS

  13. SELF ACTUALIZATION (Personal Growth, realization of potential) HIGHER LEVEL NEEDS STATUS ( Titles, symbols, Promotion etc) SOCIAL NEEDS ( Formal or informal work Groups, Teams etc) SECURITY NEEDS ( Seniority plan, health insurance employee assistance plan, pension etc) LOWER LEVEL NEEDS BASIC NEEDS ( PAY )

  14. ERG THEORY ( Alderfer 1972) GROWTH (Intrinsic Desire for Personal Development) RELATEDNESS (Interpersonal social relationship) EXISTENCE (Survival)

  15. 2.ERG THEORY &MASLOW’S THEORY GROWTH External Esteem & Self Actualization RELATEDNESS Social Needs & Esteem Needs EXISTENCE (Physiological Needs & Safety Needs)

  16. Difference Between ERG Theory and Maslow’s Theory • More than one need may be operative at the same time • If the gratification of a higher level need is stifled, the desire to satisfy a lower level need increases • ERG Theory does not assume that there exists a rigid hierarchy. A person can be working on growth even though existence or related needs are unsatisfied or all three need categories could be operating at the same time

  17. 3.HERZBERG’S TWO FACTOR THEORY • According to Herzberg , the factors leading to job satisfaction are separate and distinct from those that lead to job dissatisfaction. • He makes the following contention about satisfaction and dissatisfaction.

  18. Contrasting Views of Satisfaction and Dissatisfaction TRADITIONAL VIEW SATISFACTIONDISSATISFACTION HERZBERG VIEW SATISFACTION NO SATISFACTION NO DISSATISFACTION DISSATISFACTION

  19. Contrasting Views of Satisfaction and Dissatisfaction DISSATISFACTION & DEMOTIVATION EMPLOYEE NOT DISSATISFIED, BUT NOT MOTIVATED POSITIVE SATISFACTION & MOTIVATION

  20. Major Components of Herzberg Two Factor Theory EXTRINSIC/HYGIENE FACTORS INTRINSIC/MOTIVATORS FACTORS Achievement Recognition Work itself Responsibility Advancement Growth Company Policy & Admn. Relationship with supervisor Working conditions Personal Life Status Security Supervision etc

  21. Motivators are associated with long term positive effects in job performance • Hygiene factors consistently produced only short term changes in job attitude and performance • Satisfiers describe a person’s relationship with what he or she does and it relates to the tasks being performed • Dissatisfiers have to do with a person’s relationship to the context or environment in which he or she performs the job

  22. 3. McClelland's Theory Of Needs

  23. McClelland's theory is based on TAT • McClelland identified three themes on such TAT stories, with each corresponding to an underlying need that he believes is important for understanding individual behavior. • These needs include: • Need for Achievement (nAch) • Need for Power (nPow) • Need for Affiliation (nAff)

  24. nAch (High n Achievers) • nAch • Derive satisfaction from reaching goals • Feeling of successful task accomplishment • Immediate feedback on performance • Moderate risk takers • Work independently

  25. High n Achievers • Joint Walt Disney in 1996 • Made turnaround for Disney’s ABC Familychannel • Became President of ABC Television in 2004

  26. High n Achievers • Indra Krishnamurthy Nooyi • CEO of Pepsi

  27. nPow (High n Powerful) • nPow • Derives satisfaction from his or her ability to control others • Actual achievement of goal is not very important but the means are of primary importance • Derive satisfaction from being in positions of influence and control

  28. nPow (High n Powerful)

  29. nAff (High n Affiliated) • nAff • Satisfaction from social and interpersonal activities • Strong interpersonal ties and to get close to people psychologically

  30. nAff (High n Affiliated) Muhammad Yunus : Micro Banking : Bangladesh Nelson Mandela : South Africa

  31. Assumptions of the theory • Individuals with a high need to achieve prefer job situations with personal responsibility, feedback, moderate risk • A high need to achieve does not necessarily leads to being a good manager, especially in large organizations as they are more interested in how well they do personally • The needs for affiliation and power tend to be closely related to managerial success. The best managers are high in their need for power and low in their need for affiliation

  32. 4. Goal Setting Theory (Locke & Latham 1990) • Challenging goals produce a higher level of output than do the generalized goals • More difficult the goal, the higher the level of performance • People do well when they get feedback • Goal serves as a motivator, because it causes people to compare their present capacity to perform with that required to succeed at the goal

  33. Goal Setting Theory • There are four contingencies in goal setting theory: • Goal Commitment • Adequate self-efficacy • Task characteristics • National culture ( North American)

  34. 5. EQUITY THEORY (Adams) • Employees make comparisons of their job inputs and outcomes relative to those of others • If an individual feels that his input-output is equal to that of others, a state of equity exists • He will perceive the situation as fair • If ratio is unequal, the individual experience inequity

  35. Referent comparisons used by employees • SELF-INSIDE • An employee’s experiences in a different position inside his or her current organization • SELF-OUTSIDE • An employee’s experiences in a situation or position outside his or her current organization • OTHER-INSIDE • Another individual or group of individuals inside the employee’s organization • OTHER-OUTSIDE • Another individual or group of individuals outside the employee’s organization

  36. Crucial Issues in Equity Theory • Employees with short tenure in their current organizations tend to have little information about others • Employees with long tenure rely more heavily on co-workers for comparison • Upper level employees will make more other-outside comparisons

  37. Choice in Inequity • Change their inputs • Change their outcomes • Distort perceptions of self • Distort perceptions of others • Choose a different referent • Leave the field

  38. Organizational Justice • DISTRIBUTIVE JUSTICE • The perceived fairness of the way rewards are distributed among people 2. PROCEDURAL JUSTICE • Perceptions of the fairness of the procedures used to determine outcomes 3. INTERACTIONAL JUSTICE • The perceived fairness of the interpersonal treatment used to determine organizational outcomes

  39. 6. EXPECTANCY THEORY – Victor H. Vroom VALENCY X EXPECTANCY MOTIVATION ACTION GOAL ACHIEVEMENT SATISFACTION

  40. Determinants of Motivation • EXPECTANCY • The belief that one’s efforts will positively influence one’s performance • INSTRUMENTALITY • An individual’s beliefs regarding the likelihood of being rewarded in accord with his or her own level of performance • VALENCE • The value a person places on the rewards he or she expects to receive from an organization • OTHER DETERMINANTS • Skills, abilities, role perceptions, opportunity to perform etc

  41. INSTRUMENTALLITIES EXPECTANCY SECOND LEVEL OUTCOME OUTCOME 1A FIRST LEVEL OUTCOME OUTCOME 1 OUTCOME 1B MOTIVATIONAL FORCE OUTCOME 2 OUTCOME 2A OUTCOME 2B OUTCOME 2C

  42. Key Relationships in Expectancy Theory Individual Effort Individual Performance Organizational Rewards Personal Goals

  43. Three Key Relationships • EFFORT – PERFORMANCE RELATIONSHIP • PERFORMANCE – REWARD RELATIONSHIP • REWARDS – PERSONAL GOALS RELATIONSHIP

  44. PERFORMANCE FORMULA • Performance of an employee is based on ABILITY, OPPORTUNITY AND MOTIVATION • Therefore PERFORMANCE = f ( A X M X O ) Where A is ability M is motivation O is opportunity

  45. PERFORMANCE IMPACT ABILITY PERFORMANCE MOTIVATION OPPORTUNITY

  46. Application of Motivation Theories • Goal Setting • Goal setting is used to motivate staff in organization • The use of goal to motivate task accomplishment draws on two primary attributes: (i) The Content of Goal and (ii) Level of Intensity in Working Towards it.

  47. Application of Motivation Theories • Current Level of Difficulty • Goal should be challenging enough to induce high levels of effort • So the managers should take this factor into consideration while setting goals to the employees. (ii) Level of Intensity in Working Towards Goal • There can be three ways in which goals can be set. They are: • When goals are assigned by the management • Where members are asked to participate in goal setting • When members are told to do their best • Studies prove that the first two methods are more effective in motivating the people to achieve their targets and goals.

  48. Goals • IMPORTANCE OF GOALS • Goals guide and direct behavior • Goals serve as an organizing function • Goals provide benchmarks • Goals may define the basis for organizational design. • LIMITATIONS OF GOAL SETTING • If employees lack skill and ability, they may not be able to achieve the goals • When the employees are given complicated task, goal setting fails

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