Ume: Enterpreneurship: Unit 2 - Motivation
Ume: Enterpreneurship: Unit 2 - Motivation
Ume: Enterpreneurship: Unit 2 - Motivation
Unit 2 - Motivation
Unit-2 Motivation Syllabus
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Why Motivation is important?
When a person, feels some need tension arises in his mind until the
need is satisfied. The tension motivates him to take action.
If the action is successful need is satisfied otherwise the person
changes the action until the need satisfaction occurs
By now, you have learnt what an entrepreneur is and does. You
have also learnt that the entrepreneurs play a risk-bearing role
which is a difficult one.
The entrepreneur embarks on a difficult journey. Then, a few
important and obvious questions arise: What prompts people to
embark on such a difficult journey?
What motivates people to go into business?
This lesson intends to answer these questions/issues by discussing
entrepreneurial motivation in its various aspects viz. meaning and
4 theories of motivation, motivating
v 1.0 factors and development of
achievement motivation
CONCEPT OF MOTIVATION
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CONCEPT OF MOTIVATION
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CONCEPT OF MOTIVATION
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March and Simon’s Motivation Model
The main implications of this model are as under :
If lower the individual satisfaction, greater the search for better ways of
doing the job.
With more search for alternative, greater is the expectation of rewards.
When greater the expected rewards, the higher the satisfaction and
level of aspiration.
When higher the level of aspiration, lower the satisfaction
The unsatisfied needs of a person is the beginning of the motivation
process. The unsatisfied need results in tension within the individual
and motivates him to search for the ways to relieve this tension and
compels or develops certain goals for himself.
If he is successful in achieving his goals, certain other needs will
emerge which will lead to setting a new goal
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Needs, Incentives and Motives
A distinction may be made among three things: need, incentive and
motive.
This is to emphasize that any need present in the individual does
not necessarily lead to action. The need must be activated which is
the function of incentive. Incentive is something which incites or
tends to incite towards some determination.
Thus, incentive is an external stimulus that activates need and
motive refers to an activated need, and active desire or wish.
But a better definition is to regard incentive as the outward stimulus
for the motive to work.
When a motive is present in a person, it becomes active when there
is some incentive.
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Theories of Motivation
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Maslow’s Need Hierarchy Theory
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Maslow’s Need Hierarchy Theory
Safety and Security Needs: After satisfying the ‘physiological needs,
people want the assurance of maintaining a given, economic level. They
want job security, personal bodily security, security of source of income,
provision for old age, insurance - against risks, etc.
Social Needs: Man is a social being. He is, therefore, interested in
conversation, sociability, exchange of feelings and grievances;
companionship, recognition, belongingness, etc.
Esteem and Status Needs: These needs embrace such things as self-
confidence, independence, achievement, competence, knowledge and
success. These needs boost the ego of individual. They are also known
as egoistic needs. They are concerned with prestige and status of the
individual.
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Maslow’s Need Hierarchy Theory
Self-Fulfillment Needs: The final step under the need priority model is
the need for self-fulfillment or the need to fulfill what a person considers
to be his mission in life. It involves realizing one’s potentialities for
continued self-development and for being creative in the broadest sense
of the word
According to Maslow, needs arise in a certain order of preference and
not randomly. Thus, if one’s lower level needs (physiological and
security needs) are unsatisfied, he can be motivated only by satisfying
his lower level needs and not satisfying his higher level needs.
Another point to note is that once a need or a certain order of needs is
satisfied, it ceases to be a motivating factor. Man lives for bread alone
as long as it is not available. In the absence of air one can’t live, it is
plenty of air which ceases to be motivating.
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McClelland’s Acquired Needs Theory
Each person tends to develop certain motivational drives as a result of
his cognitive pattern and the environment in which he lives.
David McClelland gave a model of motivation which is based on three
types of needs, namely, achievement, power and affiliation. They are as
follows:
(i) Need for achievement (n-Ach): a drive to excel, advance and grow;
(ii) Need for power (n-Pow): A drive to influencing others and situations;
(iii) Need for affiliation (n-Aft):A drive for friendly and close interpersonal
relationship
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McClelland’s Acquired Needs Theory
Achievement Motivation:
Some people have a compelling drive to succeed and they strive for
personal achievement rather than the rewards of success that
accompany it.
They have a desire to do something better or more efficiently than it
has been done before. This drive is the achievement need (nAch).
From researches into the area of achievement need, McClelland
found that high achievers differentiate themselves from others by
their desire to do things better.
They seek situations where they can attain personal responsibility
for finding solutions to, problems, where they can receive rapid
feedback on their performance so they can set moderately
challenging goals.
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McClelland’s Acquired Needs Theory
Achievement Motivation:
High achievers are not gamblers; they dislike succeeding by
chance. They prefer the challenge of working at a problem and
accepting the personal responsibility for success or failure, rather
than leaving the outcome to chance or the actions of others
Power Motivation:
The need for power (n-Pow) is a drive to have impact, to be
influential, and to control others. Individuals high in n-Pow enjoy
being “in charge”, strive for influence over others, prefer to be
placed into competitive and status-oriented situations, and tend to
be more concerned with gaining influence over others and prestige
than with effective performance.
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McClelland’s Acquired Needs Theory
Affiliation Motivation:
This need has received the least attention of researchers. Affiliation
need (n-Aft) can be viewed as the desire to be liked and accepted
by others.
It is the drive to relate to people on a social basis.
Individuals with a high affiliation motive strive for friendship, prefer
cooperative situations rather than competitive ones, and desire
relationships involving a high degree of mutual understanding.
People possess the above needs in varying degrees. However, one
of the needs will tend to be more characteristic of the individual
rather than the other two.
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McClelland’s Acquired Needs Theory
Affiliation Motivation:
Individual with a high-need for achievement thrive on jobs and
projects that tax their skills and abilities. Such individuals are goal-
oriented in their activities, seek a challenge and want task relevant
feedback.
Individuals with high affiliation needs value interpersonal
relationships and exhibit sensitivity towards other people’s feeling.
But individuals with the high power needs seek to dominate,
influence or have control over others
McClelland also suggests that these three needs may
simultaneously be acting on an individual. But, in case of an
entrepreneur, the high need for achievement is found dominating
one.
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McClelland’s Acquired Needs Theory
The people with high need for achievement are characterized by the
following :
They set moderate, realistic and attainable goals for them.
Prefer to situations in which they can find solutions for solving
personal responsibility.
They need concrete feedback on how well they are doing.
They have need for achievement for attaining personal
accomplishment.
They look for challenging tasks.
Entrepreneurial motivation may be defined as a set of motives such
as high need to achieve, moderate need for power and low affiliation
motive which induce people to set up and run their own enterprises.
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McClelland’s Acquired Needs Theory
The people with high need for achievement are characterized by the
following :
They set moderate, realistic and attainable goals for them.
Prefer to situations in which they can find solutions for solving personal
responsibility.
They need concrete feedback on how well they are doing.
They have need for achievement for attaining personal accomplishment.
They look for challenging tasks.
Entrepreneurial motivation may be defined as a set of motives such
as high need to achieve, moderate need for power and low affiliation
motive which induce people to set up and run their own enterprises.
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Major Motives Influencing an Entrepreneur
Internal factors
Educational background
Occupational experience
Desire to do something pioneering and innovative
Desire to be free and independent
Family background
External factors
Assistance from Government
Financial assistance from institutions
Availability of technology and/or raw materials
Encouragement from big business units
Heavy demand for produc
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Major Motives Influencing an Entrepreneur
Entrepreneurial ambitions
(a) To make money
(b) To continue family business
(c) To secure self-employment/independent living
(d) To fulfil desire of self/wife/parents
(e) To gain social prestige
(f) Other ambitions-making of a decent living, self-employment of
children, desire to do something creative, provide employment to others.
Compelling reasons
(a) Unemployment
(b) Dissatisfaction with the job so far held or occupation pursued
(c) Make use of idle funds
(d) Make use of technical/professional skills.
(e) Others-maintenance of large families, revival of sick unit started by
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father, etc.
Major Motives Influencing an Entrepreneur
Facilitating factors
(a) Success stories of entrepreneurs
(b) Previous association (experience in the same or other line of activity)
(c) Previous employment in the same or other line of activity
(d) Property inherited/self acquired/wife’s
(e) Advice or influence (encouragement) of family members/
relatives/mends.
(f) Others- association as apprentices and sleeping partners
Autonomy and Power Motive
Desire of Independence
Preside over a big business
Temperament fit between Self and business
Flexibility of balancing work and family life
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Major Motives Influencing an Entrepreneur
Status Motive
Reputation and Recognition
Take family business to new heights
Affiliation Motive
Provide greater comfort to family
Desire to give financial security to one’s kins
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Achievement Motivation Training
David McClelland has developed an Achievement Motivation
Theory. According to this theory an individual’s Need for
achievement (n-Ach) refers to the need for personal
accomplishment.
It is the drive to excel, to strive for success and to achieve in
relations to a set of standards. People with high achievement motive
like to take calculated risks and want to win.
They like to take personal responsibility for solving problems and
want to know how well they are doing.
Achievement Motivation - which can be defined as an individual's
need to meet realistic goals, receive feedback and experience a
sense of accomplishment.
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Achievement Motivation Training
High achievers are not motivated by money per se but instead
employ money as a method of keeping sure of their achievements.
Such people strive for personal achievement rather than the
rewards of success. They want to do something better and more
efficiently than it has been done before
Need for achievement is simply the desire to do well not so much for
the, sake of social recognition or prestige but for the sake of an
inner feeling of personal of accomplishment.
It is this need for achievement that motivates people to take risk.
People with high need for achievement behave in an entrepreneurial
way. Need for achievement stimulates the behaviour of a person to
be an entrepreneur.
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Achievement Motivation Training – Program
Description
Duration 70 hours of work spread over 5 or more days
On the first Part of the program, the participants are informed of the
training objectives.
They are told that the program is intended to increase the strength of
their achievement motivation and that the faculty has confidence that
the program will be effective.
After listening to these presentations, the participants meet in small
groups and try to identify incidents at work that demonstrate the effects
of achievement motivation on business-related decision-making and
performance. Each small group selects a case example to be presented
to the whole group.
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Achievement Motivation Training – Program
Description
These initial activities are designed to accomplish several
objectives.
First, the faculty tries to create a belief in the participants that it is both
possible and desirable to develop increased achievement motivation.
Second, through presentation of research findings, the faculty
demonstrates that increased achievement motivation should lead to
improved managerial performance and personal success.
Third, the activities help participants conceptualize clearly what
achievement motivation is and how it affects behavior.
Finally, the small group activity is designed to help the participants see
how achievement motivation is involved in everyday work experience.
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Achievement Motivation Training – Program
Description
In the Second part of training, the faculty helps the participants
conceptualize more clearly what achievement motivation is,
particularly as reflected in imaginative thought.
They begin by discussing the case examples that the small groups
developed previously, with the faculty helping the participants to
identify more clearly how achievement motivation plays a role in
each example.
Then the participants learn a method of scoring achievement
motivation in stories, and use this method to score their own stories,
which were written before the beginning of the program.
Later the participants discuss their stories and scoring in an
individual conference with a faculty member.
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Achievement Motivation Training – Program
Description
During these activities, participants not only get a clearer idea of
what achievement motivation is and how it manifests itself in work
situations; they also are confronted with data about their own
achievement motivation, which often helps generate a strong desire
to change.
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Achievement Motivation Training – Program
Description
The Third part of training begins with practicing "achievement
thinking." The participants write a new set of stories, now trying to
saturate them with achievement-related thinking.
Then the participants do the same with a set of business situations.
This work takes up half a day.
The Fourth part of training is devoted to the topic of personal goals
and goal-setting. (Goal setting is an important aspect of
achievement-oriented behavior.)
The faculty help the participants to discuss their own personal goals
and conflicts among goals, such as conflicts between family and
work-related goals. The participants conclude this part of the
program by developing detailed personal goals for the next two
years and the next five years.
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Achievement Motivation Training – Program
Description
The Fifth part of training is devoted to the next activity: playing a
business game.
During the game, the participants are scored on several criteria, and
at the conclusion of the game they receive feedback on their
individual scores.
Then they discuss how their scores relate to their level of
achievement motivation and the demands of their jobs for
achievement-oriented performance.
At the end of this discussion, the participants decide whether they
want to develop greater achievement motivation, and in what
specific aspects of it they wish to improve. These activities help the
participants to gain even more awareness and insight into their own
achievement motivation and to commit themselves to a program of
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Achievement Motivation Training – Program
Description
The last part of the program is devoted to the development of a
personal action plan.
The participants discuss their individual goals for developing greater
achievement motivation, and the faculty help them to identify
techniques that can be used to increase achievement motivation.
They spend considerable time discussing how to keep records of
daily progress through a journal or diary, and the faculty helps the
participants anticipate some of the obstacles they are likely to
encounter as they attempt to apply what they have learned at work
and in their personal lives.
The concluding activity is an individual conference with a faculty
member in which the participants discuss their own goals and action
plans.
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Achievement Motivation Training – Program
Description
The program designers conceptualized the program as involving
seven "training inputs."
The first is to learn achievement motivation thinking.
The second is for the participants to understand their own
characteristics and goals.
The third is to help participants practice achievement-related actions in
cases, role plays, and real life.
A fourth input is to practice achievement-related actions in business and
other games.
A fifth input is for the participants to relate the achievement behavior
model to their own behavior, self-image, and goals.
Sixth, the program helps participants develop a personal action plan.
Finally, the program provides participants with feedback on progress
toward achieving goals
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Achievement Motivation Training – Success
Stories
Considerable evaluation research has been conducted on
achievement motivation training, and the results generally are
positive.
One study found that program participants evidenced a significantly
higher rate of advancement within their company than did a control
group (Aronoff, 1971).
In another evaluation study, an achievement motivation training
program that targeted small business owners was effective in
influencing business performance as measured by increased
monthly sales, monthly profits, monthly personal income, and
number of employees.
Please refer Journals for more success stories
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Achievement Motivation Training – The
Kakinada Experiment
According to David McClelland the role of ‘n Ach’ is the critical factor
for entrepreneurial development, which in turn leads to accelerate
the tempo of economic development.
According to him if the inner spirit which is the need for motivation is
higher it would produce more energetic entrepreneurs who can
speed economic development.
He feels that the achievement motivation is nourished by ambition.
In order to prove this fact, he conducted several experiments with
different groups of businessmen in America, Mexico, Bombay &
Kakinada in Andhra Pradesh.
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Achievement Motivation Training – The
Kakinada Experiment
He tried to induce achievement motivation in adults. His aim was to
provide an urge in them to improve their condition.
Through the experiments he tried to induce the spirit of achievement
motivation in adult & urged them to take up entrepreneurial
ventures.
Such an inducement was, in fact, essential to increase their level of
aspirations & to give rise to confidence building character in them.
In January, 1964, a full-fledged training was organized by David
McClelland at Kakinaka (Andhra Pradesh) an industrial town with
high literacy with a total intake of 52 persons drawn from business &
industrial community.
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Achievement Motivation Training – The
Kakinada Experiment
The objectives of such programme were:
To induce achievement motivation.
To break the barrier of limited aspirations.
They were given orientation through the Small Industries Extention
& Training Institutes (SIET), Hyderabad.
The Achievement Motivation Training (AMT) included the following
basis which were supposed to be accomplished by the trainees.
The entrepreneurs attending the programme were encouraged to
introspect, their imagination stimulated so that they could develop
community goals & achieve personal motivation.
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Achievement Motivation Training – The
Kakinada Experiment
Four main items constituted the achievement development course.
The trainee entrepreneurs were asked to control daydreaming &
develop a positive attitude among themselves.
The participants imagined themselves in need & the challenge set
before themselves was to have realistic & carefully planned goals.
They tried to attain concrete & frequent feedback.
They watched models – heroes who performed well & tried to imitate
them.
This training tries to encouraged those who have great desire to
achieve something in lifer faster. The trainees exhibited a more
active business behavior & to achieve they asked for longer hours
too.
This Kakinada experiment is used to set up new enterprises. This is
part of EDP which trains the entrepreneurs.
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Self-Rating (Self-Assessment)
Everybody cannot be trained to become an entrepreneurs. Persons
having a minimum level of latent qualities can be more successfully
groomed as entrepreneurs.
It becomes, therefore, necessary to judge the latent potential of
would be entrepreneurs. Given below is a quiz to test
entrepreneurial motivation.
You can test your likelihood of becoming a successful entrepreneur
by ticking the answer that is a true indicator of your personality.
Then’ check your responses with the scores and the rating given
here.
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Self-Rating (Self-Assessment)
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Self-Rating (Self-Assessment)
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Self-Rating (Self-Assessment)
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Self-Rating (Self-Assessment)
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Self-Rating (Self-Assessment)
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Self-Rating (Self-Assessment)
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Self-Rating (Self-Assessment)
0-32 Points
The Drone. Forget about launching a start-up; your work and life tendencies
indicate that you are destined to remain a worker bee until you retire. But be
warned: your distinct lack of initiative could hamper your career growth.
33-95 Points
The intrapreneur. While you exhibit entrepreneurial traits, you still don’t quite
make the grade. But don’t be disheartened. As corporates demand more
entrepreneurial skills from their employees, you will have a chance of
showing your true mettle.
96-120 Points
The Entrepreneur. How come you’re still making money for someone else?
You’ve certainly got what it take to takes the plunge, so don’t waste time.
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Business Games
A business game is an interactive structured training activity with
specially created conditions, which aim to reproduce those of a
working situation in a successful business.
The training is challenging and enjoyable; developing skills to
improve individual and team performance in the workplace.
Like a business, games should involve people, resources and
processes. The aim is to give participants an experience
comparable to one in 'real-life'.
A business has also to remain competitive, so business games are
usually competitive in character with compressed time periods,
allowing the result of decisions and policies to be seen.
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Business Game Structure
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Why take part in a Business Game?
If these games find their place in the pedagogy developed by the
business schools, it is mainly because they allow students to put
their managerial skills into practice and to experience the know-how
and interpersonal skills necessary for the exercise of their future
profession.
Whether they specialize in marketing, supply chain,
entrepreneurship, international management, corporate finance or
human resources management, a business school student must
have acquired experience in project management, which is what
these Business Games are all about.
this type of role-playing allows students to meet each other, to get to
know each other better and to learn how to create synergies
between different characters and personalities.
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Thematic Apperception Test
The Thematic Apperception Test, or TAT, is a type of projective test
that involves describing ambiguous scenes.
Popularly known as the "picture interpretation technique," it was
developed by American psychologists Henry A. Murray and
Christina D. Morgan at Harvard University in the 1930s.
To date, the TAT is one of the most widely researched and clinically
used personality tests.
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How the TAT Works
The TAT involves showing people a series of picture cards
depicting a variety of ambiguous characters (that may include men,
women, and/or children), scenes, and situations.
They are then asked to tell as dramatic a story as they can for each
picture presented, including:
what has led up to the event shown
what is happening in the scene
the thoughts and feelings of characters
the outcome of the story
The complete version of the TAT includes 31 cards. Murray
originally recommended using approximately 20 cards and selecting
those that depicted characters similar to the subject.
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How the TAT Works
Today, many practitioners only utilize between 5 and 12 cards, often
selected because the examiner feels that the scene matches the
client's needs and situation.
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Why the TAT Is Used
To learn more about a person. In this way, the test acts as
something of an icebreaker while providing useful information about
potential emotional conflicts the client may have.
To help people express their feelings. The TAT is often used as a
therapeutic tool to allow clients to express feelings in a non-direct
way. A client may not yet be able to express a certain feeling
directly, but they might be able to identify the emotion when viewed
from an outside perspective.
To explore themes related to the person's life experiences. Clients
dealing with problems such as job loss, divorce, or health issues
might interpret the ambiguous scenes and relating to their unique
circumstances, allowing deeper exploration over the course of
therapy.
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Why the TAT Is Used
To learn more about a person. In this way, the test acts as
something of an icebreaker while providing useful information about
potential emotional conflicts the client may have.
To help people express their feelings. The TAT is often used as a
therapeutic tool to allow clients to express feelings in a non-direct
way. A client may not yet be able to express a certain feeling
directly, but they might be able to identify the emotion when viewed
from an outside perspective.
To explore themes related to the person's life experiences. Clients
dealing with problems such as job loss, divorce, or health issues
might interpret the ambiguous scenes and relating to their unique
circumstances, allowing deeper exploration over the course of
therapy.
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Stress Management
Stress is the feeling of being overwhelmed or unable to cope with
mental or emotional pressure
Stress is the way human beings react both physically and mentally
to changes, events, and situations in their lives.
People experience stress in different ways and for different reasons.
The reaction is based on your perception of an event or situation. If
you view a situation negatively, you will likely feel distressed—
overwhelmed, oppressed, or out of control.
Distress is the more familiar form of stress.
The other form, eustress, results from a “positive” view of an event
or situation, which is why it is also called “good stress.
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Stress Management
Eustress helps you rise to a challenge and can be an antidote to
boredom because it engages focused energy. That energy can
easily turn to distress, however, if something causes you to view the
situation as unmanageable or out of control.
Many people regard public speaking or airplane flights as very
stressful—causing physical reactions such as an increased heart
rate and a loss of appetite—while others look forward to the event.
It’s often a question of perception: A positive stressor for one person
can be a negative stressor for another.
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Stressors: Sources of Stress
External Sources of Stress
Physical environment
Job
Pollution
Noise
Micro organism (bacteria, viruses, fungi etc.)
Toxins
Poor working conditions e.g. poor air
circulation and lack of privacy
Home
Injury etc
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Stressors: Sources of Stress
Internal Sources of Stress
Fear e.g. fear of flying, public speaking etc.
Attitude, Feeling of anger, Worrying about future events e.g. waiting for
medical test result, examination result or job
Restructuring, Imagination, Anticipation, Memory, Thoughts
Nutritional status, Overall health and fitness level, Presence of illness or
infection
Unrealistic or perfectionist expectation
Habitual behaviors such as:
Over scheduling
Failing to be assertive/unassertive
Failing to plan ahead
Failing to set and maintain healthy, boundaries, etc
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Stress Management Techniques
Stress management techniques when practiced on a regular basis
help to bring about relaxation response in the body.
Relaxation response is a physical state of deep rest as described by
Benson (1975) that changes the physical and emotional response to
stress, which also is an opposite of the fight or flight response.
Stress management techniques are as follows:
Exercise
Progressive Muscle Relaxation (PMR)
Diaphragmatic or Deep Breathing
Visualization/Guided Imagery
Meditation
Social Support
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Entrepreneurship Development Programs (EDP)
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Need for EDP
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Objectives of EDP
To analyze the environmental issues to be addressed relating to the
proposed project.
To develop various business-related skills of marketing, quality
management production, distribution and human resource
management etc.
To make the potential entrepreneurs know about the possible risks
and failures of the project and make them learn how to overcome
these problems
To enable the entrepreneurs to communicate clearly and effectively.
To develop team building, technology up-gradation, growth and
above all broad vision about the business.
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Objectives of EDP
To develop a passion for integrity, honesty and industrial discipline.
To make him learn the basics of Industrial Laws, Factories Act and
workers rights and expectations so that he can easily overcome the
legal problems.
To formulate the detailed Project Report or projects for the products.
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Phases of Entrepreneurship Development
Programmes
Initial or Pre-training Phase
A) Creation of infrastructure for training
b) Publicity campaign for the programme
c) Preparation of training syllabus
d) Development of application form
e) Formation of selection committee
f) Designing tools and techniques for selecting the trainees
g) Selection of trainees (potential entrepreneurs)
h) Tie up of guest faculty for the training purpose
i) Arrangement for inauguration of the programme
j) Pre-potential survey of environmental opportunities
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Phases of Entrepreneurship Development
Programmes
Training or Development Phase
The main objective of this phase is to bring desirable change in the
behavior of the trainees. In other words, the purpose of training is to
develop ‘need for achievement’ i.e. motivation among the trainees.
In this phase the training programme is implemented to develop
motivation and skills among the participants.
The objective of this phase is to bring desirable changes in the
behaviour of the trainees.
The trainer has to judge how much, and how far the trainees have
moved in their entrepreneurial pursuits.
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Phases of Entrepreneurship Development
Programmes
Post-Training or Follow-up Phase
The ultimate objective of the EDP is to prepare the participants to start
their enterprises. This phase therefore involves assessment to judge
how far the objectives of the programme have been achieved.
This phase is also called ‘follow-up’. Follow-up indicates our past
performance drawbacks, if any, in our past work and suggests
guidelines for framing future policies to improve our performance.
Monitoring and follow-up reveals drawbacks in the earlier phases and
suggests guidelines for framing the future policy. In this phase
infrastructural support, counselling and assistance in establishing new
enterprise and in developing the existing units can also be reviewed
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