MOTIVATION

Concept
Every manager has a responsibility to get things done by
subordinates. To perform this responsibility in a satisfactory
manner, he performs the management functions and creates
healthy interpersonal with subordinates. For doing this the
manager has to find out what makes people to do things? He
has to discover the source of energy which causes an
individual to behave as they do. In addition, the manager
also attempts to understand how the several individuals
behave in a particular work situation and finally what else is
to be done to force them for producing desirable working
behaviour.

Generally, the motivation refers to state within an individual

that drives his behaviour towards some goals. The drives
come from the need or state of deprivation or ‘sense of not
having’ or ‘lacking’ which compels the individual’s to act or
behave in a particular manner. Thus, the basis of motivation
may be basic needs like hunger and thrust or may be social
and psychological needs of belongingness and achievement,
self – development, etc. Thus, motivation may be regarded
as a set of those wishes, desires, needs and drives which
activate an individual to act.

In simple words, an individual has the need which presses

upon him and create tension in his mind. Thus, to fulfill
unsatisfied need he moves towards the goal enthusiastically.
The degree of enthusiasm depends on how strongly the
need is felt by the individual.

Robert Dublin “Motivation is the complex of forces starting

and keeping a person at work in any organization.”

Stanley Vance “Motivation represents an unsatisfied need

which creates a state of tension or disequilibrium, causing
the individual to march in a goal – oriented pattern, towards
restoring a state of equilibrium by satisfying the need.”

“Process of Motivation”

Needs Desired
Behaviour / Action
& Expectations Goals

Fulfilment

CHARACTERISTICS/FEATURES OF MOTIVATION

1. Motivation is a inner psychological force which activates

and compels the person to behave in a particular
manner.

2. Motivation process is influenced by personality traits,

learning abilities, perception and competence of an
individual.

3. Highly motivated employees works more efficiently and

his level of production tends to be higher than others.

4. Motivation originates from the needs and wants of an

individual. It is a tension of lacking something in his
mind which forces him to work more efficiently.

5. Motivation is also a process of stimulating and

channelzing the energy of an individual for achieving
set goals. Thus, it boosts up the morale of the
employees.
 6. Motivation also plays a crucial role in determining the
level of performance. Highly motivated employees will
get higher satisfaction which may lead to higher
efficiency.

7. Motivation force and its degree, may differ from

individual to individual depending on his personality
triats, needs, competence and other factors.

8. The process of motivation helps the manager in

analyzing and understanding human behaviour and
finding out how an individual can be inspired to produce
desirable working behaviour.

9. Motivation may be positive as well as negative. Positive

motivation includes incentives, rewards and other
benefits while negative motivation implies some
punishment, fear, use of force, etc.

Importance of Motivation

A team of highly qualified and motivated employees is

necessary for achieving objectives of an organization. It is
only through motivation, they contribute maximum for
accomplishing objectives. Importance of motivation in
management may be judged on the basis of the following
factors:

1. Effective use of resources: In business, all physical

resources are to be used through human force.
Effective and efficient use of these resources depends
on the ability and readiness of work force. Thus, team
of highly motivated employees greatly help in making
optimum use of available resources for achieving
objectives.
2. Higher efficiency: Motivation is directly related to the
level of efficiency. Highly motivated employees make
full use of use their energy and other abilities to raise
the existing level of efficiency. They produce more as
compared to other employees.

3. Accomplishment of organizational goals: The process of

motivation helps in shaping the working behaviour of
the employees and making it desirable for achieving
objectives. Highly motivated employees would make
goal – directed efforts. They are more committed and
co – operative for achieving organizational goals.

4. Reduced labour turnover and absenteeism: Highly

motivated employees are more loyal and sincere;
therefore, they remain punctual and regular in their
work schedule and prefer to stay on the job for longer
period of time. These factors help in reducing
absenteeism and labour turnover.

5. Healthy industrial relation: Effectively motivated

employees get more satisfaction and carry high morale
which makes them more disciplined. In such a
situation, the possibilities of industrial relations and
unrest is reduced to minimum and industrial relations
gets improved.

6. Improved corporate image: Motivation helps in

improving an image of organization. If employees are
motivated, they produce more, they maintain self –
disciplined and productive internal environment in the
organization prevails. This in turn gives better
impression to the clients of the organization.
THEORIES OF MOTIVATION/APPROACHES TO MOTIVATION

The theories of motivation are broadly divided into three

categories:
1.Content Theories
2.Process Theories
3.Reinforcement Theory

1.Content Theories: Such theories of motivation focus on

human needs or desires, that are internalized and give focus
on individual behaviour. Individuals have psychological and
physiological needs that prompts an individual to behave in
a particular manner. Content theorists study forces within
individuals as a way of understanding why patterns of
behaviour prevail. From content theory viewpoint,
understanding motivation is largely a matter of recognizing
patterns of needs and then encouraging behaviour that
results in satisfying those needs. The crux of content theory
is that a deprived or unsatisfied need motivates an individual
to act to fulfill those needs and get satisfaction.

Content theories include the contribution of Maslow,

Heraberg and McCellend Theory.

2. Process Theories: A process theory examines individual

behaviour in terms of job satisfaction related to perceived
rewards that induce behaviour. While content theories
emphasize on perceived needs, process theories emphasize
the decision – making dimension to work performance. In
other words, personal expectations of outcome associated
with performance are critical for determining how individuals
will be motivated to perform.

Process theories include Expectance Theory, Equity

Theory and Porter and Lawler’s Model.

3. Reinforcement Theory: It is based on the concept of

operant conditioning propounded by B.F.Skinner. Under this,
the individuals having learned from the past develop
patterns of behaviour to control future consequences. The
main idea is that we learn what to do or what not to do
either to gain rewards or to avoid unpleasant consequences.

CONTENT/NEED THEORIES OF MOTIVATION

1. Maslow’s Hierarchy of Needs (1940’s) (IMP)

One of the first behavioural scientists to make management
aware of the complexity of human needs and their effect on
motivation was Abraham Maslow, a famous US psychologist.
Abraham has classified needs in a logical conventional way
that has important implications for managers. in this theory,
he has pointed out and explained how needs influence
human behaviour. Maslow viewed human motivation as a
hierarchy of five needs ranging from most basic
physiological needs to the highest needs for self –
actualization.

“Maslow’s Need Hierarchy”

1.Physiological needs: these are most basic needs including

food, shelter and clothing. These needs are the most
powerful motivators as individual can’t survive without
them. Physiological needs must be satisfied to some extent
or partially satisfied, before the individual moves to satisfy
other higher category needs.

2.Safety and Security Needs:include the needs for protection

against physical and psychological threats in the
environment and confidence that physiological needs will be
met in the future. Buying an insurance policy or seeking a
secure job with a good pension plan are manifestations of
security needs.

3.Social Needs/Need for Affiliation: include a feeling of

belonging, of being accepted by others, of interacting
socially and of receiving affection and support.
4. Esteem Needs: include self respect, achievement,
competence, respect of others and recognition.

5.Self actualization Needs: include fulfillment of one’s

potential and growth as a person. It is an open – ended
need because it relates to the need to become more and
more of what one is capable of becoming.

Observation/Characteristics of Maslow’s theory

1. Hierarchy of needs has been prepared in logical sequence
and needs have been put into different levels according to
their effect and dominance on human behaviour and his
performance.

2.Individulas generally attempt to satisfy their basic needs

first which are lying on the lower side of hierarchy.

3.Maslow made it clear that need or deprivation of some

thing affects and dominate one’s behaviour.

4.Lower category needs require prior attention as compared

to higher order needs; lower level needs are more powerful.

5.Relative satisfaction of one category needs give rise to

another level of needs and it continues till the last level.

6.If the need is satisfied, it remains no more a motivator

and it is only unfulfilled needs which affect human
behaviour.

Limitations of Maslow’s Theory

1.The behavioural scientists pointed out that the entire
theory lacks empirical validation.
2. They also argue that it does not explain complexities
involved in human behaviour.
3. It has been pointed out that the order in which various
needs come into play can’t be predicted.
II Herzberg’s Two Factor Theory (IMP)
Herzberg, a US behavioural scientist, has proposed a theory
of employee motivation based on satisfaction. Herzberg
research has discovered two sets of factors associated with
satisfaction and dissatisfaction of the employee, therefore, it
is known as ‘Herzberg’s Two Factor Theory’.

The first set of factors known as ‘satisfiers or motivators’ are

responsible for self motivation of employees. These factors
include job, its importance, opportunity it provides for
advancement, achievement, recognition and sense of
responsibility, etc. These factors are known as ‘Job content
factors’ and are real motivators because they are capable
of providing satisfaction to the employee. These are known
as ‘Intrinsic Factors’.

The second set of factors called ‘hygiene or maintenance

or dissatisfier which include working conditions, job
security, salary, quality of supervision, organizational
policies, inter – personal relationships and other factors in
the immediate work environment. They are job context and
extrinsic to the job. Any deficiency or absence of these
factors would simply create dissatisfaction, demotivation and
low performance but their presence does not motivate the
employees. They have been considered as hygiene or
maintenance factors because their role is supportive just to
maintain healthy and congenial atmosphere in work setting.

“Maintenance and Motivational Factors”

Maintenance/Hygienic Motivational Factors

Factors
Company policy and Possibility of growth.
administration.
Technical supervision. Achievement
Inter – personal relations Recognition
with supervisor.
Inter – personal relations Advancement
with peers.
Inter – personal relations Work itself
with subordinates.
Salary Responsibility
Job Security
Personal life
Working conditions
Status

Criticism of Herzberg’s Model:

1.Herzberg drew conclusions from a limited study covering
engineers and accountants. Engineers, accountants and
other professional may like responsibility and challenging
jobs, but the general body of workers has a different
inclination. They are motivated by pay and other set of
benefits.

2.Thus, like Maslow’s Theory, Herzberg’s Two Factor Theory

of motivation has also been criticized on account of lack of
empirical validation.

Herzberg and Maslow – a comparison (IMP)

Herzberg’s theory of motivation has much in common with

Maslow’s. Herzberg’s hygiene factors correspond to the
physiological, safety, and security needs of Maslow.

As shown in the diagram, Maslow’s physiological, security

and social needs come under Herzberg’s maintenance
factors whereas self fulfillment under motivating factors. It
may further be noted that a part of esteem needs comes
under maintenance factors and another under motivating
factors.
McCelland’s Theory – Achievement Motivation Theory

The main elements of this theory are need for achievement,

power and affiliation. This theory assumes that some people
are much more achievement – oriented than others,
therefore, they get job satisfaction and derive special kind of
pleasure in achieving objective successfully or performing
challenging job rather than receiving monetary and other
rewards.

McCelland’s model relates behaviour and performance of the

employee to three basic drives, the need for achievement,
the need for power and the need for affiliation or close
association with others.

1.The need for achievement n(ach): is the need to excel or

succeed in competitive situations, is related to how well
individuals are motivated to perform their jobs. Thus, those
with high achievement needs tend to be highly motivated by
challenging and competitive work situations. Achievement –
oriented individuals seek satisfaction in doing things better
and in assuming important personal responsibility for solving
the problems.

2.The need for power n(pow): is the need to control or

dominate people and events. Such individuals, if given a
position marked by higher authority and power, tend to
perform better as compared to other positions having less
power.

3.Need for affiliation n(aff): Some individuals may derive

satisfaction from better friendly inter – personal relations in
work setting. They can be motivated by providing an
atmosphere of support, friendship and social affiliation. This
need is more like a social need.

Critical Appraisal of Achievement Motivation Theory

McCellend’s theory and research have significant
implications for managers. If the motives of employees can
be accurately measured, management can improve the
selection and placement processes. For example, an
employee with a high need for achievement may be placed
in a position that would enable him to achieve. This would
result in higher performance. Achievement motivated people
can be the backbone of the organization. Managers should
raise the achievement need level of subordinates by creating
a proper work environment.

4.ERG Theory of Motivation – CLAYNTON ALDERFER

This theory has been developed by Claynton Alderfer on the

same line as Maslow’s need hierarchy. Rather it is
considered as reformulation or refinement of Maslow’s need
theory. This theory states that people attempt to meet a
hierarchy of existence, relatedness and growth needs.

Alderfer classified need into three categories:

1.Existence needs include basic needs and some other
factors such as fringe benefits in the work place.
2.Relatedness needs by and large resemble social needs
which mainly include need for interpersonal relations.
3.Growth needs reflect money aspect of need of
achievement and self actualization including need for
personal creativity and influence.

Alderfer ERG Theory is also based on need hierarchy, it

differs from Maslow’s need hierarchy on the following
grounds:

1.Alderfer stated that needs at more than one level may

arise at a time as against Maslow’s assumption that a time
only one category need arises.

2.Secondly, in a more significant way, Alderfer suggested

that when higher category of needs are not fulfilled lower
level needs will return even though they were already
satisfied to a reasonable extent.

3.In addition, Alderfer strongly felt that people move up and

down the hierarchy of needs from situation to situation.

PROCESS THEORY OF MOTIVATION

1. Eqity Theory
2. Expectancy Theory

EQUTIY THEORY:- J.S. ADAM

The essence of this theory is that employees generally

make comparison of their efforts and rewards with those
of others in similar position and similar work situation.
This approach is based on the basic assumption that
employees working in the organization should be treated
equally in terms of justice, balance and fairness and when
they join the organization they carry some qualification,
skill and knowledge with then for performing assigned
jobs. To perform the job which involves use of these
abilities and qualities which are known as ‘inputs’. And in
return of this inputs whatever they get from the
organization such as compensation, recognition and
status etc. known as outcome.

In practice they have a natural tendency to compare ratio

of input and outcomes with that of other employees
working in a same position. If there is a balance between
ratios, an individual gets positive feelings of fairness and
equity. However if the ratio is significantly less then that
of others he feel not rewarded and paid according to his
inputs and ultimately it start creating doubts regarding
the fairness and equity of the organizational system and
policies. Contrary to if the ratio is higher than that of
others an individual feels over rewarded which may create
 a sense of guilt. In both the cases, individual feels, some
tension and uncomfortable ness and finally he is
motivated to reduce the inequality or difference by way of
making necessary adjustments with regard to input and
outcome.

Equity approach of motivation seems to be useful for the

manager in determining appropriate level of reward for
the employees. it emphasizes the role played by an
individual’s belief in the equity and fairness of reward and
punishment in determining his performance and
satisfaction.

Equity = Person’s Outcome = Other’s Outcome

Person’s Inputs Other’s Inputs

Limitations:
1. The weakest element of equity theory is the analysis of
the process by which individual choose comparison
with others. The process by which individuals decide
whom to compare themselves with and on what
grounds is not clear.
2. Equity theory is not a complete theory of motivation
but deals only with one particular aspect of motivation
ie, it has limited focus on equity only.

VROOM’S VALENCE – EXPECTANY THEORY

According to Victor Vroom, a person’s motivation towards an

action at any time would be determined by his anticipated
values of all the outcomes of the action multiplied by the
strength of that person’s expectancy that the outcome would
yield the desired goal. In other words, motivation is a
product of the anticipated worth to a person of an action and
the perceived probability that the person’s goals would be
achieved.
 Motivational Force (M) = Expectancy(E) x
Instrumentality(I) x Valence (V)
M=ExIxV

The three elements of Expectancy theory are discussed

below:
1.Expectancy (Effort – Reward Probability) This is a
person’s perception that a particular outcome will result
from a particular course of action or behaviour. Thus, it
describes the relationship between an act or an outcome.
For example, if a student works hard, he expects to do well
in the final examination. The value of expectancy ranges
from 0 to +1.

If an individual feels that chances of achieving an outcome

are 0, he will not even try. On the other hand, if expectancy
is higher, the individual will put higher efforts to achieve the
desired outcomes.

2.Instrumentality (Performance – Reward Probability)

This factor relates to a person’s belief and expectation that
his performance will lead to a particular outcome or reward.
It is the degree of association of first level outcome of a
particular effort to the second level outcome, which is the
ultimate reward. For example, working hard may lead to
better results, which is the first level outcome which may
result in a reward like raise in pay or promotion or both,
which is the second level outcome. If a person believes that
his higher performance will not lead to expected rewards, he
will not be motivated to work hard for better output. The
value of instrumentality also ranges from 0 to +1 as it is the
probability of achieving the desired outcome or goal.

3. Valence (Reward Preference) It is the value a

person assigns to the desired reward. He may not be
willing to work hard to improve performance if the
 reward of such improved performance is not what he
desires. It is not the actual value of the reward, but the
perceptual value of the reward in the mind of the
worker, that is important. The total range of value is
from -1 to +1.

As the relationship suggests, the motivational force will be

higher when expectancy, instrumentality and valence are
all high. The management must recognize and determine
such situation that will help to achieve the highest value
of these three elements individually.

PORTER & LAWLER’S MODEL/MODERN THEORY

This model is an improvement over the Valence –

Expectancy Model. Porter and Lawler applied their model to
study the behaviour of managers and concluded that there
exists a complex relationship between job attitudes and job
performance. The various elements of Porter and Lawler’s
model are discussed below:

1.Effort:It refers to the amount of energy exerted by a

person on a job.
2.Perceived – effort – reward probability: It refers to the
individual’s perception of the probability that different
rewards depend upon different degree of efforts. Value of
reward and perception of effort – reward probability will
determine the amount of efforts a person will put.

3.Performance: Effort leads to performance. However, both

may not be always equal. In fact, performance is determined
by the amount of effort and ability and role perception of the
individual. That means, if an individual is lacking in ability
and/or has wrong role perception, his performance is bound
to be unsatisfactory in spite of his putting great efforts.
4.Rewards: Performance may lead to two kinds of rewards,
namely, ‘intrinsic rewards’ as a sense of self – actualization
and ‘extrinsic rewards’ such as working conditions and
status. The intrinsic rewards are much more likely to
produce attitudes about satisfaction that are related to
performance. Moreover, the perceived equitable rewards
significantly affect the performance – satisfaction
relationship.

5.Satisfaction: The extent to which actual rewards fall short,

meet or exceed the individual’s perceived level of equitable
rewards determine the degree of satisfaction. If actual
rewards meet or exceed perceived equitable rewards, the
individual will feel satisfied and if these are less than
equitable rewards, the individual will feel dissatisfied.

Porter and Lawler suggested that managers should carefully

assess their reward structure and that through careful
planning and proper definition of role requirements, the
effort – performance reward – satisfaction systems should
be integrated into the overall system of managing.

Role of managers:
1. Determine the rewards valued by each subordinate
2. Determine the desired performance
3. Make the performance level attainable
4. Link rewards to performance

1.Determine the rewards valued by each subordinate: If

rewards are to be motivators, they must be suitable for the
individual. A manager can determine what rewards his
subordinates seek by observing their reactions in different
situations and by asking them what rewards they desire.

2.Determine the desired performance: A manager must

identify what performance level he wants so that he can tell
subordinates what they must do to be rewarded.
3.Make the performance level attainable: If subordinates
feel that the goal they are asked to pursue is difficult or
impossible, their motivation will be low.

4.Link rewards to performance: To achieve and maintain

motivation, the appropriate reward must be clearly
associated within a short period of time with successful
performance.
 Value of Ability Perceived
Reward Equitable
Rewards
Intrinsic
Rewards

Efforts Performance
Accomplishment

Extrinsic Satisfaction
Rewards

Role
Perceived Effort Perception
Reward probability

“Porter and Lawler Model”

McGREGOR’S THEORY X AND Y(IMP)

Douglas McGregor, a US behavioural scientist, has

developed approach to manage and motivate based on set
of various assumptions relating to human behaviour. It has
been formulated as Theory X and Theory Y. Theory X is
related to philosophy of traditional management,
assumptions about employees and the way to manage them.
Theory Y is based on humanistic assumptions about
employees’ and describes the approaches to manage nad
motivate them.

Theory X
1. Average employee in the organization is lazy, dull, self –
centered, resist change and does not want to take
responsibility.
2. He has limited number of needs, mostly physical needs
and to some extent security needs.
3. Average employee lacks responsibility and has little
ambitions.
4. The responsibility of getting things done by others for
achieving organizational goals lies on the managers and the
managers must use coercive measures to control the
workers and they must be threatened and punished as to
get them to work.
5. To get the things done by the employees, McGregor
suggested rigid, bureaucratic and rule based organization.
6. Narrow span of management, one – way communication,
close supervision, more concentration on monetary
incentives and centralization of managerial authority should
be followed.
7. It is necessary to guide, direct and control the employees
in a strict manner and the approach of ‘carrot and stick’
should be used for motivating them.

THEORY Y

1. Work is as natural as play or rest for the workers.

2. Average worker likes work, is capable of assuming
responsibility and accepting challenges.
3. They are ambitious, achievement – oriented and
capable of exercising self – control.
4. They have wide range of needs, economic and non –
economic.
5. They have potential and they can learn to assume
responsibility. They have imagination and creativity
that can be applied to work.
6. In view of these assumptions, the role of management
is to develop potentials and help the employees to use
it for achieving common objectives.
7. Organizational structure should be marked by open
communication, flexibility, informal relation and
decentralization of authority.
 8. The approach of management should include
participative management, supportive style, self
direction and control, opportunity for creativity and
innovativeness and package of both monetary and non
monetary incentives.

OUCHI THEORY Z

The management scholar, William Ouchi has developed

theory Z. he began his study by identifying certain
contrasting features of Japanese and American companies.
In this study he discovered that some USA based successful
companies have adopted the style of management which
combined the characteristics of American as well as
Japanese companies. These hybrid companies are known as
‘Theory Z organizations’.

The main features of theory Z are as under:

1. Theory Z recognizes cultural differences in the
countries which must be taken into account by the
manager at the time of developing motivation
mechanism for the employees.
2. It implies the environment of mutual trust in the
organization. According to Ouchi for the successful and
effective functioning of organization mutual trust and
openness among employees, various groups and trade
unions is necessary.
3. It stresses that long term employment should be
granted to the employees which should be backed by
effective training programmes so that they must be
retrained in the organization.
4. Theory Z emphasizes on the implementation of a
balanced control system. Along with personal judgment
and feeling, certain rules should also be followed by
the employees.
5. According to this theory, a holistic approach should be
followed for making all round development in the
 personality of employee so that he can contribute
maximum for the achievement of organizational
objectives.
6. Theory Z also recognizes the importance of
participative decision – making, as it creates a feeling
of commitment and co – operation among the
employees. According to it all the employees who are
likely to be affected by the decision should be involved
in decision making.
REINFORCEMENT THEORY

(Take this portion from Learning)

Importance of Rewards & Punishment in Motivation

All individuals joining organization devote their time, energy
and effort for performing assigned job. In return of that they
expect to be rewarded for their contribution. Broadly, reward
may be defined as material and psychological pay – offs for
performing task in the work situation. In other words, it may
be considered as an incentive, monetary or non – monetary
which is given to the employees for their performance at a
particular level. It is found that job performance and
satisfaction can be improved by properly designed and
administered reward system in the organization. Rewards
may be classified as under:

1. Extrinsic and Intrinsic Rewards

2. Monetary and Non – Monetary Rewards

1. Extrinsic and Intrinsic Rewards

Extrinsic Rewards are those which are offered to the

employee by his employer, supervisor, colleagues or
subordinates. These rewards, are of course, external to job
and job performance, they are the pay – offs granted to the
individual by other people. Such rewards may include
money, employees’ benefits, promotion, recognition, praise,
status, etc.
Intrinsic rewards refer to those rewards which the individual
gives to himself. These rewards are internal to job and job
performance. These rewards include job satisfaction, sense
of achievement, sense of accomplishment, self esteem, self
– development, etc.

Usually, extrinsic as well as intrinsic rewards are

intermingled on the job. For example, if the employee
completes a big and challenging project he experiences
psychological satisfaction, his need of achievement is
fulfilled and on the other hand, he may get some additional
monetary benefit from the organization.

2.Monetary and Non – Monetary Rewards

Monetary/Financial Rewards and Incentives are very

commonly used in modern organizations to motivate the
employees, to increase their productivity. These include
wages and salaries, bonus, insurance, medical allowance,
housing facilities, retirement benefits, etc. It is generally
said that higher these benefits, higher is the productivity of
workers. However, this is not always so. Monetary benefits
have only limited utility in increasing the motivation of
employees. After the basic needs have been met, its role of
motivating the employees is generally decreased. The
management has to make use of non – financial incentives
also to motivate the employees.

(Money as a Motivator – short note)

Money is a real motivating factor when the physiological
(food, shelter and clothing) needs of the workers have not
been satisfied. Money helps in satisfying the social needs of
the workers to some extent because money is often
recognized as a basis of status, respect and power. Money is
also an important means of achieving a ‘minimum’ standard
of living although this minimum has the tendency to go up
as people become more affluent. However, it can’t be
concluded that money loses its importance after a certain
stage.

People in higher positions, who get monetary rewards, are

not motivated by monetary benefits. They may be motivated
by money only if the increase is large enough to increase
their standard of living and status in the society. However,
in case of operative employees, money certainly plays a
significant role in motivating them because their basic needs
have not been completely fulfilled.

From the above discussion, it can be said that money is not

the only motivator and it is not always a motivator. A good
management should devise a motivational system which is
capable of satisfying the different human needs. Many of the
needs could be satisfied by providing non – financial
incentives.

Non – Financial / Non – Monetary Rewards (IMP)

Non monetary incentives can’t be measured in terms money.
They are concerned with the satisfaction of social and
psychological needs of the employees. These needs can’t be
satisfied by money alone. The non – monetary rewards are:

1.Status: Status, in the organizational context, means the

ranking of positions in the formal structure. The status
system is an important instrument of motivation as it can
satisfy the social and egoistic needs of the people. The
management often tries to satisfy these needs by
establishing status symbols in its organization. Costly
furniture, carpets, separate cabinets, a personal assistant,
etc are provided by the management for this purpose.

2.Job Security: means that an employee would continue on

the job in the same organization and he shall enjoy
economic and social security. Management should also
provide security to its employees against sickness, old age,
death and unemployment. Organization should arrange
various social insurance schemes to provide security to the
employees and their positions.

3.Performance feedback: Knowledge of the results leads to

employee satisfaction. A worker likes to know the results of
his performance and he gets satisfaction when his superior
appreciates the work done by him.

4.Praise: Praise satisfies one’s ego needs. Sometimes,

praise is more effective than any other incentive. However,
this incentive should be used with greater case because
praising an inefficient employee would create resentment/
hostility / frustration among competent employees.
Occasionally, a pat on the back of an incompetent employee
may act as an incentive to him for improvement.

5.Opportunity for growth: Providing opportunities to grow in

status and responsibility helps the organization in effective
utilization of intellectual ability, experience and knowledge of
employees.

6.Participative and Consultative Management: A good

motivational system should make provision for participated
and consultative management. Opportunities provided to the
employees for participation makes them feel that they are
part and parcel of the organization. If the employees are
given a chance to be heard and offer their views and
suggestions, it will create a feeling of participation and act
as a motivational tool. Thus, proper utilization of human
resources would be possible.

7.Career Development Plan: A good motivational system

provides for well – designed career development plan for all
levels of the employees. it inspires the employees to use
their skills, intelligence and wisdom for future growth and
development.
8.Job Enrichment: implies enriching contents of job or the
deliberate upgrading of responsibility, scope and challenge
in work. Job enrichment is a motivational technique which
emphasizes the need for challenging and interesting work. It
suggests that jobs be redesigned to provide intrinsic
satisfaction to the employees. it leads to a vertically added
job by adding functions from other organizational levels,
making it contain more variety and challenge and offer pride
to the organization.

9.Job Enlargement: is the strategy adopted by many

managers to remove the mal effects of division of labour. It
focuses on enlarging jobs by adding tasks and
responsibilities. It involves expansion of the scope and width
of the job by means of horizontal loading of certain closely
related operations.

“CARROT & STICK APPROACH”

For the smooth functioning and successful accomplishment

of organizational goals it is necessary that conductive work
environment should be built. Among other factors it should
be accompanied by appropriate system of reward and
punishment. All individuals who join organization carry some
goals, interest and expectations along with their abilities,
competence, knowledge and skill. To make them committed
and involved in work – setting, it is necessary that those
who are working efficiently should be rewarded and those
who are not working efficiently they should be punished. For
treating the employees in this way policy of “carrot and
stick” is followed. This approach is simplistic in assumptions
and conservative in nature because it recognized reward and
punishment as only means to motivate employees. It is
based on the assumption that the individuals may be
motivated by hope of getting reward or with a fear of being
punished. Thus, only the expectation of getting reward or
fear of being punished will motivate the employees to
produce as per standard or performance and to behave in a
desirable manner. This approach generally succeeds in
motivating people as long as their physiological and safety
needs remain unsatisfied.

In this regard, McGregor has rightly pointed out that carrot

and stick approach does not work well at all once an
individual has reached an adequate subsistence level and is
motivated primarily be higher needs. While making use of
this approach, the manager should concentrate more on
positive aspect. The stick should be used by him only when
it is unavoidable or necessary for setting the erring
employee right in terms of performance and desirable
behaviour.