UNIT -4

MOTIVATIONS

MEANING:

Every management tries to co-ordinate various factors of in such a way that their
contribution is maximum in achieving organization goals.
Motivation is an. important factor which encourages person to give their best
performance and help in reaching enterprise goals.

Positive motivation:
A strong positive motivation will enable the increased output of employees.
Negative motivation:
A Negative motivation will reduce their performance.

TYPES OF MOTIVATION:
 Positive motivation
 Negative motivation

Positive motivation:

 Positive motivation or incentive motivation is based on reward.

 The workers are offered incentives for achieving the desired goals.
 The incentives may be in the shape of more pay, promotion, recognition of work
etc.
 The real and positive motivation are responsible for placement high standard of
performance, information adequate for self-control.

Negative motivation:

 Negative or fear motivation is based on force or fear.

 In case they do not accordingly then they may be punished with demotions or lay -
offs. They fear act as a push mechanism.
 This type of motivation generally becomes a cause of industrial
unrest
Importance of motivation:

 High performance
 Low employee turnover and absenteeism
 Better organizational images
 Better industrial relations
 Acceptability to change

High performance:
Motivation employees will put maximum effects for achieving organizational goals.
The untapped reservoirs of physical and mental abilities are taped to the maximum.

Low employee turnover and absenteeism:

The dissatisfaction among employees also increases absenteeism. The employment
training of new employees costs dearly to the organization.

Better organization image:

Such concerns are successful in attracting better qualified and experienced persons.
Since there is a better man-power to development programme.

Better industrial relation:

A good motivation system will create job satisfaction among employees. It also will
create a good relationship between the management and the coraial relations among both
sides.

Acceptability to change:
The changing social and industrial situations will require changes and improvement
in the working of enterprises. The will think of positive side of new changes and will co-
operate with the management

MASLOW’S NEED HIERARCHY

Motivation is influenced by the needs of a person. There is a priority of certain
needs over others. The important of needs will influence the level of motivation.

A.H. Maslow, an American social scientist, has given a framework that helps to
explain the strength of certain needs.
 MASLOW’S NEED HIERARCHY

PHYSIOLOGICAL NEEDS:
These needs are most essential for the survival and maintance of body. These
include food, clothing, drinking, shelter, rest, exercise etc. A man will try to satisfy these
needs first.

SAFETY NEEDS:
Once physiological needs are satisfied than safety needs taken the precedence.
These are the needs to be free from physical danger and the fear of job , property ,shelter
etc... The physical safety against murder, accident, fire is also essential.

SOCIAL NEEDS:
Since people are human beings, they needs to belong, to be accepted by others.
When social needs become dominant, human being will strike to have meaningful
association with others.

ESTEEM OR EGO NEEDS:

The needs are concerned with self-respect, Self-confident, feeling of . being unique,
recognitions, etc. The satisfaction of these needs brings confidence, power, control and
prestige.

SELF FULFILMENT OR ACTUALISATION NEEDS:

Self - fulfillment is the highest needs in maslow’s hierarchy. This refers to the needs
which helps an individual’s to development his potentialities. He tries to do whatever he
can and has a sort of self — development

MCGREGOR'S THEORY X AND THEORY Y

DougalsMcgregor introduction these two theories theory X theory Y, based on two
distinct views of human beings. He proposed, at opposite extremes two pairs of
assumptions about human beings which he thought were implied by the actions of the
managers.

THEORY X:
This theory is based on the traditional approach to human behavior. The
assumptions generally held by the managers in this theory are:
  The average human beings inherently dislike work and will try to avoid it,
whenever possible.
 As the employer is lazy,they must be controlled, coerced, threatened with
punishment to achieve goals, to which they are indifferent.
 Average employees will try to avoid responsibility and seek formal directions
whenever possible.
 Most workers place security above all other factor associated with work.

THEORY Y:
This approach assumes that management by direction and control is a questionable
method for motivation such people whose physiological and social needs have satisfied.

 The average human beings dose not inherently dislike, work He can view work as
natural or enjoyable as rest or play.
 Employees will exercise self direction and self control in the attainment of the
objectives to which they are committed.
 Commitment to objectives in functions of the rewards associated with their
achievement.
 All the people are capable of making innovative and creative decision and the
decisions making is not the sole province of the people in management positions

Theory Z
Of all the nontempering motivational theories the one that has received a great deal
of attention is theory Z. It is a new way of viewing the essential nature of man and the
factors that motivate him. A notable future of Japanese management is that managers
seem to make better use of human capital.
Theory Z has identified major dimensions along which are American Japanese fir
differ. These dimensions are given below,
 life time employment
 Decision making
 Responsibility
 Evaluattions&Poromottions
 control
 spaillalisationm
 concorn
FEARURES OF THEORY Z:
 Trust between employees, supervisors, work groups, Unions, Management and
Government.
 Strong bond between organization, Employees.
 Participation of employees in decision making.
 No formal structure of Organization.
 Co-ordination of human being.

LEADERSHIP:
The power of leadership is the power of integrating. The leader stimulates what is
best in us, he unites and concentrates what we feel only groupingly and scatteringly. He is
a person who gives form to the unutilized energy in every man. The person who
influences me most is not he who dose great deeds, but he who makes me fool that I can
do great deeds.

LEADERSHIP STYLES:
 Autocratic or Authoritarian style leader
 Laissez- faire or free rein style leader
 Democratic or participative style leader
 Paternalistic style leader

AUTHORITARIAN STYLE LEADER:

An autocratic also knows as authoritarian style of leadership implies yielding
absolute power. The leader expects complete obedience from his subordinates and all
decision making power is centralized in the leader. No obey him without questioning.

LAISSEZ- FAIRE OR FREE -REIN STYLE LEADER:

Under this type of leadership, maximum freedom is allowed to subordinates. They
are given free had in deciding their own policies and methods and to make independent
decisions. The style of leadership creates self- confidence in the workers and provides them
an opportunity to develop their talents..
DEMOCRATIC OR PARTICIPATIVE STYLE LEADER:
The democratic or participative style of leadership implies compromise between the
two extremes of autocratic and laissez-fair style of leadership. The supervisor acts according
to the mutual consent and the decisions reached after consulting the subordinates. The
subordinate are encourage making suggestions and taking initiative.

PATERNALISTIC STYLE LEADER:

This style of leadership is based upon sentiments and emotions of people. A
paternalistic leader is like a father to his subordinates. He helps, guides and protects all of
his subordinates but under him no one grows.

IMP0RTANTCE:
 It improves motivation and morale.
 It acts as a motive power to group effect.
 It acts as an aid to authority.
 It is needed at all levels of management.
 It is rectified the imperfectness of the formal organizational relationships.
 It provides the basis for co-operation.

MOTIVATION TECHNIQUES

MANAGEMENT BY OBJECTIVES:

The concept of management by objectives is a logical extension of Goal setting

theory. The concept of MBO was introduced by PETER DRUCKER in 1954 as a means of
using goals to motivate people rather than to control them

ELEMENTS IN THE MBO PROCESS:

 CENTRAL GOAL SETTING:

The first step in the process of MBO is to define and verify organizational
objectives. Before setting these objectives a detailed assessment in consultation
with the other managers. Proper market surveys and research will be conducted and
business forecasts will be made.
  DEPARTMENTAL AND INDIVIDUAL GOAL SETTINGS:
After setting the organizational goal the next step is to set the department
objectives. Each department set its long range and short range objectives with the
approval of the top management.

 REVISION OF JOB DESCRIPTION:

Under MOB, resulting of the individual goals will call for a revision of the
job descriptions of various positions which in turn call for the revision of the whole
organizational structure.
 MAKING GOALS AND RESOURCE ALLOCATION:
Setting of objectives does not mean anything in itself unless resources and
means to achieve these objectives are also provided. Thus, the subordinate must be
provided necessary tools and materials by the management. So that they can
achieve their goals effectively and efficiently.
 FREEDOM OF IMPLEMENTATION:
The manager subordinate task team should the utilize the resources and how
to achieve the objectives. There will be minimum or no interference by the
superiors so long as the manager subordinates team works with in the overall
framework of organizational policies.

ESTABLISHING CHECK POINTS:

MOB ensures periodic meetings between the manager and his subordinate to
discuss the progress towards the accomplishment of the targets of the subordinates for this
the manager must establish check points or standards of performance for evaluating the
progress of the subordinate.

• APPRAISAL OF PERFORMANCE:
While informal performance of a subordinate is done by his manager almost every
day, these should also be periodic review of performance. This review will assist the
manager and subordinate in modifying either the objectives or the methods if and when
necessary.

COUNSELLING:
MBO is basically a future oriented process and motivates employees to their about
the future in terms.” Where they are going”.
The superior will discuss with the subordinates the ways and means to remove deficiently
in performance and advise him as to how his efficiently can be improved.
ADVANTAGES:
 Improved performance
 Greater sense of identification
 Maximum utilization of human resources
 No role ambiguity
 Improved communication
 Improved organizational structure
 Device for organizational control
 Career development of the employees
 Result based performance evaluation
 Stimulating the motivation of employees
Improved Performance.
MBO is basically a result oriented process. Its main focus is on setting and
controlling goals. Managers are encouraged to do detailed planning. They concentrate on
the important task of Improving performance by reducing the costs and harnessing the
opportunities. Improved planning will lead to improved productivity and more profits.

Greater Sense of Identification.

The individual members of the organization have a greater sense of identification
with the company goals. With MBO, the subordinates feel proud of being involved in the
organizational goals. This improves their morale and commitment to the organizational
objectives.

Maximum Utilization of Human Resources.

Since the goals are set in consultation with the subordinates, these are more difficult
to achieve and more challenging than if the superiors had imposed them. In addition, since
these goals are fixed according to the particular abilities of the subordinates, it obtains
maximum contribution from them and thus it leads to maximum utilization of human
resources.

No Role Ambiguity.

There is no role ambiguity or confusion in the organization, because specific and

clear goals are set for the organization, for the division for the departments and for the
individual members. Both the managers and the subordinates know what they have to do
and what is expected of them.
Improved Communication.
In MBO, there is improved communication between the management and the
subordinates. This continuous two way communication helps in clarifying any
ambiguities, refining and modifying any processes or any aspects of objectives.

Improved Organizational Structure.

In MBO, the whole of organizational structure is redesigned because of the revision
of job descriptions of various positions as a result of resetting of the individual goals. All
this helps in improving the organizational structure as a result of location of the problem
and weak areas of the organization.

Device for Organizational Control.

MBO serves as a device for organizational control and integration. If there are any
deviations discovered between the actual performance and the goals, these can be
regularly and systematically identified, evaluated and corrected.

Career Development of the Employees.

MBO provides a realistic means of analyzing training needs and opportunities for
growth for the employees. The management takes keen interest in the development of
skills and abilities of subordinates and provides an opportunity for strengthening those
areas which need further refinement, thus, leading to career development of employees.

Result Based Performance Evaluation.

The system of periodic performance evaluation lets the subordinates know how well
they are doing. In MBO, strong emphasis is put on measurable and quantifiable
objectives. As a result, the appraisal tends to be more objective specific and equitable. As
these appraisal methods are based on result and not on some intangible characteristics,
there are considered to be superior to the trait evaluation methods of appraisal.

Stimulating the Motivation of the Employees.

The system of MBO stimulates the employees motivation. First of all, they feel
motivated because of their participation in goal setting. They take keen interest in the
implementation of the goals which they themselves have set. Secondly the appraisal
system, being very objective and specific can be highly morale boosting.
DISADVANTAGE:
 Lack of support of top management
 Resentful attitude of subordinate
 Difficulties in quantifying the goals and objectives
 Costly and time-consuming process
 Emphasis on short term goals
 Lack of adequate skills and training
 Poor integration
 Lack of follow up
 Difficulties in achievement of group goal
 Inflexibility
 Limited application
 Long gestation period.

Lack of Support of Top Management.

In traditional organizations, the authority is vested in the top management and it
flow from top to bottoms, In MBO, subordinates are given an equal opportunity of
participation, which is resented by the top management. This system cannot succeed
without the full support of top management.

Resentful Attitude of Subordinates.

The subordinates can also be resentful towards the system of MBO. Sometimes,
while setting the goals, they may be under pressure to get along with the management and
the objectives which are set may be unrealistically high or far too rigid. The subordinates,
generally, feel suspicious of the management and believe that MBO is another play of the
management to make them work harder and become more dedicated and involved

Difficulties in Quantifying the Goals and Objectives.

The MBO will be successful only if the goals can be set in quantifiable terms. But
if the areas are difficult to quantify and difficult to evaluate, it will not be possible to
judge the performance of the employees. Moreover, MBO does not have any subjectivity
in performance appraisal. It rewards only productivity without giving any consideration to
the creativity of the employees.

Costly and Time-Consuming Process

MBO is quite costly and a time-consuming process. There is a lot of paper work
involved. Moreover, there are a lot of meetings and too many reports to be prepared,
which add to the responsibilities and burden of the managers. Because of these reasons
managers generally resist the MBO.
Emphasis on Short Term Goals.
Under MBO, goals are set only for a short period, say for six months or one year.
This is because of the reason that goals being quantitative in nature, it is difficult to do
long range planning. Since the performance of the subordinate is to be reviewed after
every six months or one year, they tend to concentrate on their immediate objectives
without caring for the long-range objectives of the enterprise; This emphasis on short term
goals goes against the organizational efficiency and effectiveness and is not a healthy sign.

Lack of Adequate Skills and Training.

Most of managers lack adequate skills, knowledge and training required in
interpersonal interaction which is required in the MBO. Many managers tend to sit down
with the subordinate, dictate the goals and targets with no input permitted from the
subordinates and then demand that the goals be achieved in a specified time. Whether the
goals are realistic or not does not enter the picture in this type of environment, two way
communication is not there and objectives are imposed on the subordinates. This destroys
their morale, initiative and performance.

Poor Integration.
Generally, the integration of the MBO with the other systems such as forecasting
and budgeting is very poor. This lack of integration makes the overall functioning of the
system very poor.

Lack of Follow Up.

Under the system of MBO, the superior must get in touch with the
subordinate at the appropriate time and at that time, the subordinate will inform the boss
exactly what has been accomplished and how If the superior delays the meeting, it will
create hurdles in the successful implementation of MBO as the subordinate will also start
taking the programmed casually.

Difficulty in Achievement of Group Goals.

When goals of one department depend upon the goals of another department,
cohesion is difficult to maintain. In such cases, the achievement of goals will also become
very difficult.

Inflexibility.
MBO may make the organization rigid. As the goals are set after every six months
or one year, the manager may not like to revise the goals in between, even if the need
arises, due to fear of resistance from the subordinates. The managers must learn to handle
this situation, because sometimes revision of short-term goals is necessary for the
achievement of long-range objectives
Limited Application.
MBO is useful largely for the managerial and professional employees. It is not
appropriate for all levels and for everyone because of the heavy demands made by it. It
can be made applicable only when both the subordinates and manages feel comfortable
with it and arc willing to participate in

Long Gestation Period.

It takes a lot of time, sometimes 3-5 years to implement the MBO programmed
properly and fully and some research studies have shown that these programmers can lose
their impact and potency as a motivating force over a long period of time.

MANAGEMENT BY EXECPTION:
It is a style of business management that focuses on identifying and handling cases
that deviate from the norm recommended as best practice.

It has both a general business application and a business intelligence application. It

gives the responsibilities to the employees to take decisions and to fulfill their work by
themselves
.
ADVANTAGES:
The main advantage of management by exception is that problematic issues are
identified rapidly and managers are able to use their time and energy.
 Rapid identification of problems
 Spending time and energy for important issues
 Less important to daily operations.
 The managers need to work less for decision making
 Employee motivation

DISADVANTAGES:
 Less concurrency
 Time consuming
 Over cost of company
 Waste of time and money
 Manager’s interferon’s
 Time to pass the issues to managers.