ABOUT THE TOPIC

What is Motivation?
Motivation is the force that makes us do things: this is a result of our individual needs being
satisfied (or met) so that we have inspiration to complete the task. These needs vary from person
to person as everybody has their individual needs to motivate themselves. Depending on how
motivated we are, it may further determine the effort we put into our work and therefore increase
the standard of the output.

When we suggest factors (or needs) that determine the motivation of employees in the
workplace, almost everyone would immediately think of a high salary. This answer is correct for
the reason that some employees will be motivated by money, but mostly wrong for the reason
that it does not satisfy others (to a lasting degree). This supports the statement that

Human motivation is a personal characteristic, and not a one fits all option

Impact of Employee Motivation on Organizational

Performance?

• Maintaining Stability
Employees are a company's livelihood. How they feel about the work they are doing and the
results received from that work directly impact an organization's performance and,
ultimately, its stability. For instance, if an organization's employees are highly motivated and
proactive, they will do whatever is necessary to achieve the goals of the organization as well
as keep track of industry performance to address any potential challenges. This two-prong
approach builds an organization's stability. An organization whose employees have low
motivation is completely vulnerable to both internal and external challenges because its
employees are not going the extra mile to maintain the organization's stability. An unstable
organization ultimately underperforms.

Reduction in Productivity

Lack of motivation equates to less work being accomplished. Productivity does not
disappear; it is usually transferred to aspects not related to the organization's work. Things
like personal conversations, Internet surfing or taking longer lunches cost the organization
time and money. Reduced productivity can be detrimental to an organization's performance
and future success.

Negative Changes to Reputation

Word travels fast. Low employee motivation could be due to decreased success of the
organization, negative effects from the economy or drastic changes or uncertainty within the
organization. No matter what the cause, having the reputation of having an unpleasant work
environment due to low employee motivation will ultimately impact how existing and
potential clients or partners view working with an organization. A reputation can precede an
organization and dictate its future in the industry.

Planning for Future Trends

In "Super Motivation," author Dean Spitzer states that 50 percent of employees put just
enough effort into their work to keep their job. This means that if only half the employees in
a company are working in a full capacity, the company only has 50 percent of its expected
revenue, is only reaching 50 percent of its clients and has 50 percent fewer resources for
staff, operations and development. Plan for the future by sharing these statistics with staff..
Reconnecting with the reality of the business is often an effective way of improving
performance. Be honest and upfront about any steps that will be taken to improve
organizational performance as well as any consequences of not meeting the organization's
performance standards.

SOME OF THE WELL KNOWN MOTIVATION THEORIES

ABRAHAM MASLOW’S “NEED HIERARCHY THEORY”:

One of the most widely mentioned theories of motivation is the hierarchy of needs theory
put forth by psychologist Abraham Maslow. Maslow saw human needs in the form of a
hierarchy, ascending from the lowest to the highest, and he concluded that when one set
of needs is satisfied, this kind of need ceases to be a motivator.

As per his theory these needs are:

(i) Physiological needs: These are important needs for sustaining the human life.
Food, water, warmth, shelter, sleep, medicine and education are the basic
physiological needs which fall in the primary list of need satisfaction. Maslow
was of an opinion that until these needs were satisfied to a degree to maintain
life, no other motivating factors can work.
(ii) Security or Safety needs: These are the needs to be free of physical danger
and of the fear of losing a job, property, food or shelter. It also includes
protection against any emotional harm.
(iii) Social needs: Since people are social beings, they need to belong and be
accepted by others. People try to satisfy their need for affection, acceptance
and friendship.
(iv) Esteem needs: According to Maslow, once people begin to satisfy their need
to belong, they tend to want to be held in esteem both by themselves and by
others. This kind of need produces such satisfaction as power, prestige status
and self-confidence. It includes both internal esteem factors like self-respect,
 autonomy and achievements and external esteem factors such as states,
recognition and attention.
(v) Need for self-actualization: Maslow regards this as the highest need in his
hierarchy. It is the drive to become what one is capable of becoming; it
includes growth, achieving one’s potential and self-fulfillment. It is to
maximize one’s potential and to accomplish something.

As each of these needs is substantially satisfied, the next need becomes dominant. From
the standpoint of motivation, the theory would say that although no need is ever fully
gratified, a substantially satisfied need no longer motivates. So if you want to motivate
someone, you need to understand what level of the hierarchy that person is on and focus
on satisfying those needs or needs above that level.

Maslow’s need theory has received wide recognition, particularly among practicing
managers.

FREDERICK HERZBERG’S MOTIVATION-HYGIENE THEORY:

Frederick has tried to modify Maslow’s need Hierarchy theory. His theory is also known
as two-factor theory or Hygiene theory. He stated that there are certain satisfiers and
dissatisfiers for employees at work. Intrinsic factors are related to job satisfaction, while
extrinsic factors are associated with dissatisfaction. He devised his theory on the
question: “What do people want from their jobs?” He states that presence of certain
factors in the organization is natural and the presence of the same does not lead to
motivation. However, their non presence leads to demotivation. In similar manner there
are certain factors, the absence of which causes no dissatisfaction, but their presence has
motivational impact.

Examples of Hygiene factors are:

Security, status, relationship with subordinates, personal life, salary, work conditions,
relationship with supervisor and company policy and administration.

Examples of Motivational factors are:

Growth prospectus, job advancement, responsibility, challenges, recognition and

achievements.
CLAYTON ALDERFER’S ERG THEORY:

Alderfer has tried to rebuild the hierarchy of needs of Maslow into another model named
ERG i.e. Existence – Relatedness – Growth. According to him there are 3 groups of
core needs as mentioned above. The existence group is concerned mainly with providing
basic material existence. The second group is the individuals need to maintain
interpersonal relationship with other members in the group. The final group is the
intrinsic desire to grow and develop personally. The major conclusions of this theory
are :

1. In an individual, more than one need may be operative at the same time.

2. If a higher need goes unsatisfied than the desire to satisfy a lower need intensifies.

It also contains the frustration-regression dimension

URL: http://www.neiu.edu/~aserafin/421/motivation/aMotivation/img007.gif

“THEORY X AND THEORY Y” OF DOUGLAS MCGREGOR:

McGregor, in his book “The Human side of Enterprise” states that people inside the
organization can be managed in two ways. The first is basically negative, which falls
under the category X and the other is basically positive, which falls under the category Y.
After viewing the way in which the manager dealt with employees, McGregor concluded
that a manager’s view of the nature of human beings is based on a certain grouping of
assumptions and that he or she tends to mold his or her behavior towards subordinates
according to these assumptions.

Under the assumptions of theory X:

• Employees inherently do not like work and whenever possible, will attempt to
avoid it.

• Because employees dislike work, they have to be forced, coerced or threatened

with punishment to achieve goals.

• Employees avoid responsibilities and do not work fill formal directions are
issued.

• Most workers place a greater importance on security over all other factors and
display little ambition.

In contrast under the assumptions of theory Y:

• Physical and mental effort at work is as natural as rest or play.

• People do exercise self-control and self-direction and if they are committed to

those goals.

• Average human beings are willing to take responsibility and exercise imagination,
ingenuity and creativity in solving the problems of the organization.

• That the way the things are organized, the average human being’s brainpower is
only partly used.

On analysis of the assumptions it can be detected that theory X assumes that lower-order
needs dominate individuals and theory Y assumes that higher-order needs dominate
individuals. An organization that is run on Theory X lines tends to be authoritarian in
nature, the word “authoritarian” suggests such ideas as the “power to enforce obedience”
and the “right to command.” In contrast Theory Y organizations can be described as
“participative”, where the aims of the organization and of the individuals in it are
integrated; individuals can achieve their own goals best by directing their efforts towards
the success of the organization.

However, this theory has been criticized widely for generalization of work and human
behavior

CONTRIBUTIONS OF ELTON MAYO:

The work of Elton Mayo is famously known as “Hawthorne Experiments.” He

conducted behavioral experiments at the Hawthorne Works of the American Western
Electric Company in Chicago. He made some illumination experiments, introduced
breaks in between the work performance and also introduced refreshments during the
pauses. On the basis of this he drew the conclusions that motivation was a very complex
subject. It was not only about pay, work condition and morale but also included
psychological and social factors. Although this research has been criticized from many
angles, the central conclusions drawn were:

• People are motivated by more than pay and conditions.

• The need for recognition and a sense of belonging are very important.

• Attitudes towards work are strongly influenced by the group.

VARIOUS MOTIVATIONAL FACTORS FOR EMPLOYEES IN THE

ORGANIZATION

If the employer is able to determine what motivates employees, he will be capable of

ensuring that his workers concentrate on accomplishing the company’s objectives and
also make certain that they do not leave the company.
To facilitate a better knowledge of employee motivation, one should recognize the fact
that people are quite different from each other. So, this indicates that different workers
require different motivators.

The Four Employee Motivators are:

1. Achievement
A great form of employee motivation lies in achievement. Here, the employee is
motivated by the objective itself. Frequently employers avail of this motivator by
means of putting up challenges to the workers. In using this employee motivator,
employers regularly incorporate incentives like cash or a raise. Nevertheless,
where the employees are concerned, the incentive is just a kind of bonus for
achieving the targets set by the company.
2. Advancement
When it comes to certain workers, their inspiration is the likelihood of advancing
up the company ladder. They put in a lot of hard work with the intention of
coming under their superior’s attention to further their aspiration of a promotion.
Now, this employee motivator is fuelled by ambition.
3. Pressure
There are quite a few employees, who thrive under pressure. Now, this employee
motivator is hardly ever shown intentionally by a worker. Many a times, an
employee inadvertently loads pressure onto himself and under the influence of
this pressure; the employee is compelled to strive harder.On the other hand, this
kind of employee motivation may produce some undesirable consequences,
taking into account the fact that each person has a threshold. In truth, it frequently
leads to a breakdown.
4. Fear
It is the most regularly used employee motivator. The workers are usually
intimidated by the knowledge that their services would be terminated in case they
are unsuccessful in achieving certain targets. Obviously, if the employee is unable
to cope with the stress, this kind of employee motivation method would prove
damaging to his job functioning.
Besides these various other motivational factors are:

• Appreciation or recognition for a job well done

• Being in the know about company matters
• An understanding attitude from the management
• Job security
• Good wages
• Interesting work
• Career advancement opportunities
• Loyalty from management
• Good working conditions
• Tactful discipline
LITERATURE REVIEW
WHAT IS MOTIVATION?
According to Greenberg and Baron (2000) this definition could be divided into three
main parts. The first part looks at arousal that deals with the drive, or energy behind
individual(s) action. People turn to be guided by their interest in making a good
impression on others, doing interesting work and being successful in what they do. The
second part referring to the choice people make and the direction their behavior takes.
The last part deals with maintaining behavior clearly defining how long people have to
persist at attempting to meet their goals.

Kreitner (1995), Buford, Bedeian &Linder (1995), Higgins (1994) defined motivation
as “the psychological process that gives behavior purpose and direction, a predisposition
to behave in a purposive manner to achieve specific unmet needs, an unsatisfied need,
and the will to achieve, respectively.

Young (2000) suggest that motivation can be defined in a variety of ways, depending on
who you ask .Ask some one on the street; you may get a response like “its drives us” or
“its what make us do the things we do.” Therefore motivation is the force within an
individual that account for the level, direction, and persistence of effort expended at
work.”

Halepota (2005, p16) defines motivation as “a persons active participation and

commitment to achieve the prescribed results.”Halepota further presents that the concept
of motivation is abstract because different strategies produce different results at different
times and there is no single strategy that can produce guaranteed favorable results all the
times.”
According to Antomioni (1999, p29), “the amount of effort people are willing to put in
their work depends on the degree to which they feel their motivational needs will be
satisfied. On the other hand, individuals become de-motivated if they feel something in
the organisation prevents them from attaining good outcomes.
Jackson and Carter -claim that we live in a wage labor economy and therefore people
put a price on their work efforts. All other factors regarding motivation are only
secondary, in other words money comes before all non-material motivators. They
strengthen their argument with the statement that people “can survive without job
satisfaction, but cannot survive without a wage”

Alexander D. Stajkovic and Fred Luthans completed a study upon Differential effects
of incentive motivators on work performance. The most common incentive motivators
used in organizations are money, social recognition and performance feedback where it is
important to recognize the differences in effect. Stajkovic and Kluthan claim that money
is the most frequently used motivator, especially cash payment

MOTIVATIONAL THEORIES
Many researchers and writers have proposed theories on the concept of motivation, and
its role in enhancing employee’s performance in every organisation. Some of these
models have been widely used and accepted by today’s organizations leaders.
Some of the motivational theories will include Alders (ERG theory), Maslow (Need
theory), Vrooms (Expectancy theory), Adams (Social equity theory), Taylor
(productivity theory), Herzberg (Two factor theory), Mac Gregory (theory X and Y),and
skinner (Reward theory).

Dual- factor theory-given by

Herzberg, Mausner and Snyderman in 1959 processed a research concerning
motivation to work. The theory stresses upon motivators, which are directly connected to
one’s performance. The motivators create a need for personal growth as well as self-
actualization within work.
• Achievement: solutions to problem, confirmation, appreciation of one’s work
 • Recognition: to be seen by others in the organization
• Work itself: doing the job
• Responsibility: own work, others work and be given new responsibility
• Advancement: change in status or position

Vroom’s perspective
Vroom has founded the theory called expectancy theory, which is a cognitive model that
focuses upon motivation to work. The theory pays attention to how one behaves in
certain way to avoid pain and gain as much pleasure as possible. Furthermore, people
become motivated when they experience high likelihood that managers and colleagues
acknowledge their work. In addition, one would also like to be rewarded for one’s
performance and it is of high importance that the reward is tangible and positive.
Vroom uses a formula to calculate the level of motivation: M = (E) x (I) x (V). Where E
is the abbreviation of expectancy, I stand for instrumentality and V is the shortening for
valance.

Perspective of McClelland
David McClelland has also conducted research in the field of motivation to work. The
result is a theory consisting of three needs, namely achievement, power and affiliation.
Moreover, these needs help to understand motivation, where the different needs are more
or less suitable for a manager or a worker.

McClelland claims that managers and entrepreneurs often have a high need for
achievement, due to the fact that they are goal- oriented and take reasonable risks which
are the characteristics for the need for achievement. Additionally, McClelland states that
the need for power is high in managerial and leading positions. On the other hand,
affiliation is more common in worker positions, because they are more friendship
oriented and want to get along with co-workers.
 PURPOSE OF STUDY

While studying management we found out that most of the theories regarding motivation
focus upon employees in general and do not reflect on specific positions.
The purpose of our research is to:
1. Clarify whether a difference in motivation to work between manger and worker
exists or not.
2. To examine if a manager and a worker have shared understandings and common
factors of what motivates them, or if certain characteristics can be distinguished.

To be able to present a clear picture we will find suitable theories on the topic of
motivation. The theories will help us to interpret and analyze the collected data.
Continuously, we accomplish carefully planned interviews with workers as well as
managers in different companies to get the individual perspective.
Moreover, we think that it is important to notice that if a difference will be discovered it
might be important to take it into consideration in future organizational behavior.
 OBJECTIVE OF STUDY

While studying management we realized that most of the already existing theories
discuss motivation to work from a general perspective. Therefore we found it interesting
to
Investigate motivation on a deeper level.
The main objectives for our research are:
1. To determine is there a difference in motivation between managers and workers?
2. If so, what is the difference between the two
3. In dept analysis of various factors that motivate employees towards their
performance
 RESEARCH METHODOLOGY

Every project work is based on certain methodology, which is a way to systematically

solve the problem or attain its objectives. It is a very important guideline and lead to
completion of any project work through observation, data collection and data analysis.

Accordingly, The Methodology Used In The Project Is As Follows: -

• Defining the objectives of the study

• Framing of questionnaire keeping objectives in mind
• Feedback from the employees
• Analysis of Feedback
• Conclusion, Findings, Suggestions.

SELECTION OF SAMPLE SIZE

40 employees have been selected at random from different organization comprising of 20

mangers and 20 workers and feedback forms (questionnaire) have been obtained. The
data has been analyzed in order to know the employees view point.

SAMPLING TECHNIQUE USED

The technique of Random Sampling has been used in the analysis of the data.
Random sampling from a finite population refers to that method of sample selection,
which gives each possible sample combination an equal probability of being picked up
and each item in the entire population to have an equal chance of being included in the
sample. This sampling is without replacement, i.e. once an item is selected for the
sample, it cannot appear in the sample again.

DATA COLLECTION

To determine the appropriate data for research mainly two kinds of data was
Collected namely primary & secondary data as explained below:

PRIMARY DATA
Primary data are those, which were collected afresh & for the first time and thus happen
to be original in character. However, there are many methods of collecting the primary
data; all have not been used for the purpose of this project. The ones that have been used
are:
• Questionnaire
• Informal Interviews

SECONDARY DATA
Secondary data is collected from previous researches and literature to fill in the
respective project. The secondary data was collected through:
• Text Books
• Articles
• Magazines
• Websites

STATISTICAL TOOLS USED

The main statistical tools used for the collection and analyses of data in this
Projects are:
• Pie Chart
 • Tables

RESEARCH METHOD

The method of our research will be qualitative, where we will try to discover what
factors distinguish the manager and worker concerning motivation to work and we will
also try to understand the behavior.
We have chosen this orientation due to the reason that we will not question existing
theory about motivation, use experiments, or measure different outcomes. Withal, the
purpose of a qualitative study is to review and interpret the already existing theories or
writings concerning the subject, and thereby creating a dialogue between accomplished
studies. To us it is of great importance to explore already written theories regarding
motivation to be able to contribute with new ideas.

• Sample Size: - 40
• Sampling Unit: - Employees –managers and workers
• Universe: - Finite
• Type of Research:-Descriptive cum Exploratory
• Type of Sampling: - Random Sampling

DURATION OF STUDY

Period for conducting the research was two months during which a survey was conducted
among the various managers and workers working in different organizations in order to
know various motivational factors at workplace and its impact on their performance
 LIMITATION

1. Time constraint- the duration of research was short, due to which it was
difficult to collect data. Due to limited time the sample size of questionnaire was
small and confined to only few managers and workers
2. Our definition of a manager is a person with a leading position in an organization.
On the other hand, the worker has a lower position within the company and has
not as much responsibility as the manager. We are well aware that differences
between genders could occur, however this will not be investigated in this study.
3. Concentration of research was on the private sector, where occupations within
that area are being used, where the public sector would not be included.
4. Finally, there was no stress upon the aspect of voluntary work; instead work will
be defined as a role in the organization whereby a salary is received by an
individual.