Motivational

Theories
Module : III
  Abraham Maslow is well renowned for proposing the
Maslow’s Hierarchy of Needs Theory in 1943. This theory is a
Hierarchy of classical depiction of human motivation.
 This theory is based on the assumption that there is a
Needs hierarchy of five needs within each individual. The
Theory urgency of these needs varies. These five needs are
as follows-
Maslow’s
Hierarchy of
Needs
Theory
  In the context of an organization, Maslow's Need
Theory suggests that employees are motivated by a
Maslow’s hierarchy of needs, starting with basic physiological
needs like salary and a safe work environment,
Hierarchy of progressing to higher-level needs like social
Needs belonging, esteem, and ultimately self-actualization,
meaning that managers should focus on addressing
Theory lower-level needs before moving on to higher-level
needs to maximize employee satisfaction and
productivity.
  Physiological needs:
Ensuring employees have adequate pay, comfortable working
conditions, and basic necessities like access to food and
water.
 Safety needs:
Key points Providing a secure work environment, job security, health
about benefits, and clear policies and procedures.
 Social needs (Belongingness):
Maslow's
Fostering a sense of community through team building
Hierarchy of activities, encouraging collaboration, and creating
opportunities for social interaction among employees.
Needs in an  Esteem needs:
organization Recognizing achievements, providing opportunities for
al setting: advancement, offering titles and responsibilities that reflect
employee contributions, and fostering a culture of respect.
 Self-actualization needs:
Empowering employees to take ownership of their work,
providing challenging tasks, opportunities for personal growth
and development, and encouraging creativity and innovation.
 1.Physiological needs- These are the basic needs of air, water, food,
clothing and shelter. In other words, physiological needs are the needs for
basic amenities of life.

2.Safety needs- Safety needs include physical, environmental and

emotional safety and protection. For instance- Job security, financial
security, protection from animals, family security, health security, etc.
Maslow’s 3.Social needs- Social needs include the need for love, affection, care,

Hierarchy of belongingness, and friendship.

4.Esteem needs- Esteem needs are of two types: internal esteem needs
Needs (self- respect, confidence, competence, achievement and freedom) and

Theory
external esteem needs (recognition, power, status, attention and
admiration).

5.Self-actualization need- This include the urge to become what you are
capable of becoming/what you have the potential to become. It includes
the need for growth and self-contentment. It also includes desire for
gaining more knowledge, social- service, creativity and being aesthetic.
The self- actualization needs are never fully satiable. As an individual grows
psychologically, opportunities keep cropping up to continue growing.
  According to Maslow, individuals are motivated by
unsatisfied needs. As each of these needs is
significantly satisfied, it drives and forces the next
need to emerge.
 Maslow grouped the five needs into two categories
Maslow’s - Higher-order needs and Lower-order needs.
 The physiological and the safety needs constituted
Hierarchy of the lower-order needs. These lower-order needs are
Needs mainly satisfied externally.
 The social, esteem, and self-actualization needs
Theory constituted the higher-order needs. These higher-
order needs are generally satisfied internally, i.e.,
within an individual. Thus, we can conclude that
during boom period, the employees lower-order
needs are significantly met.
  In 1959, Frederick Herzberg, a behavioural scientist
Herzberg’s proposed a two-factor theory or the motivator-
hygiene theory.
Two-Factor  According to Herzberg, there are some job factors
Theory of that result in satisfaction while there are other job
factors that prevent dissatisfaction.
Motivation  According to Herzberg, the opposite of “Satisfaction”
is “No satisfaction” and the opposite of
“Dissatisfaction” is “No Dissatisfaction”.
Herzberg’s
Two-Factor
Theory of
Motivation
  Herzberg classified these job factors into two categories-
1.Hygiene factors- Hygiene factors are those job factors
which are essential for existence of motivation at
workplace. These do not lead to positive satisfaction for
long-term. But if these factors are absent/if these factors
are non-existant at workplace, then they lead to
Herzberg’s dissatisfaction.

Two-Factor 2.In other words, hygiene factors are those factors which
when adequate/reasonable in a job, pacify the employees
Theory of and do not make them dissatisfied. These factors are
extrinsic to work.
Motivation 3.Hygiene factors are also called as dissatisfiers or
maintenance factors as they are required to avoid
dissatisfaction. These factors describe the job
environment/scenario. The hygiene factors symbolized the
physiological needs which the individuals wanted and
expected to be fulfilled. Hygiene factors include:
  Pay: The pay or salary structure should be appropriate and reasonable.
It must be equal and competitive to those in the same industry in the
same domain.
 Company Policies and administrative policies: The company
policies should not be too rigid. They should be fair and clear. It should
include flexible working hours, dress code, breaks, vacation, etc.
Herzberg’s  Fringe benefits: The employees should be offered health care plans

Two-Factor (mediclaim), benefits for the family members, employee help

programmes, etc.

Theory of  Physical Working conditions: The working conditions should be safe,

clean and hygienic. The work equipments should be updated and well-
Motivation maintained.
 Status: The employees’ status within the organization should be
familiar and retained.
 Interpersonal relations: The relationship of the employees with his
peers, superiors and subordinates should be appropriate and
acceptable. There should be no conflict or humiliation element present.
 Job Security: The organization must provide job security to the
employees.
  Motivational factors- According to Herzberg, the
hygiene factors cannot be regarded as motivators.
The motivational factors yield positive satisfaction.
Herzberg’s These factors are inherent to work. These factors
motivate the employees for a superior performance.
Two-Factor  These factors are called satisfiers. These are
Theory of factors involved in performing the job. Employees find
these factors intrinsically rewarding. The motivators
Motivation symbolized the psychological needs that were
perceived as an additional benefit. Motivational
factors include:
  Recognition: The employees should be praised and
recognized for their accomplishments by the managers.
 Sense of achievement: The employees must have a
sense of achievement. This depends on the job. There
must be a fruit of some sort in the job.

Herzberg’s  Growth and promotional opportunities: There must

be growth and advancement opportunities in an
Two-Factor organization to motivate the employees to perform
well.
Theory of  Responsibility: The employees must hold themselves
Motivation responsible for the work. The managers should give
them ownership of the work. They should minimize
control but retain accountability.
 Meaningfulness of the work: The work itself should
be meaningful, interesting and challenging for the
employee to perform and to get motivated.
  In 1960, Douglas McGregor formulated Theory X
and Theory Y suggesting two aspects of human
behaviour at work, or in other words, two different
Theory X views of individuals (employees):
and Theory 1.one of which is negative, called as Theory X and

Y 2.the other is positive, so called as Theory Y

 According to McGregor, the perception of managers
on the nature of individuals is based on various
assumptions.
  An average employee intrinsically does not like work
and tries to escape it whenever possible.
 Since the employee does not want to work, he must
be persuaded, compelled, or warned with punishment
Assumption so as to achieve organizational goals. A close
supervision is required on part of managers. The
s of Theory managers adopt a more dictatorial style.
 Many employees rank job security on top, and they
X have little or no aspiration/ ambition.
 Employees generally dislike responsibilities.
 Employees resist change.
 An average employee needs formal direction.
  Employees can perceive their job as relaxing and normal.
They exercise their physical and mental efforts in an
inherent manner in their jobs.
 Employees may not require only threat, external control and
Assumption coercion to work, but they can use self-direction and self-
control if they are dedicated and sincere to achieve the
s of Theory organizational objectives.
 If the job is rewarding and satisfying, then it will result in
Y employees’ loyalty and commitment to organization.
 An average employee can learn to admit and recognize the
responsibility. In fact, he can even learn to obtain
responsibility.
 The employees have skills and capabilities. Their logical
capabilities should be fully utilized.
 In other words, the creativity, resourcefulness and
innovative potentiality of the employees can be utilized to
solve organizational problems.
ERG Theory  To bring Maslow’s need hierarchy theory of motivation
in synchronization with empirical research, Clayton
of Alderfer redefined it in his own terms.
Motivation  His rework is called as ERG theory of motivation. He
recategorized Maslow’s hierarchy of needs into three
simpler and broader classes of needs:
  Existence needs- These include need for basic material
necessities. In short, it includes an individual’s
physiological and physical safety needs.
 Relatedness needs- These include the aspiration
individual’s have for maintaining significant interpersonal
ERG Theory relationships (be it with family, peers or superiors),
getting public fame and recognition. Maslow’s social
of needs and external component of esteem needs fall
under this class of need.
Motivation  Growth needs- These include need for self-development
and personal growth and advancement. Maslow’s self-
actualization needs and intrinsic component of esteem
needs fall under this category of need.
  What is Leadership
 Leadership is a process by which an executive can
direct, guide and influence the behaviour and work of
others towards accomplishment of specific goals in a
given situation. Leadership is the ability of a manager
to induce the subordinates to work with confidence
and zeal.
 Leadership is the potential to influence
behaviour of others. It is also defined as the
Leadership capacity to influence a group towards the realization
of a goal. Leaders are required to develop future
visions, and to motivate the organizational members
to want to achieve the visions.
 According to Keith Davis, “Leadership is the ability to
persuade others to seek defined objectives
enthusiastically. It is the human factor which binds a
group together and motivates it towards goals.”
 1.It is a inter-personal process in which a manager is
into influencing and guiding workers towards
attainment of goals.
2.It denotes a few qualities to be present in a person
Characteristic which includes intelligence, maturity and personality.
s of 3.It is a group process. It involves two or more people
interacting with each other.
Leadership
4.A leader is involved in shaping and moulding the
behaviour of the group towards accomplishment of
organizational goals.
5.Leadership is situation bound. There is no best style
of leadership. It all depends upon tackling with the
situations.
 Basis Manager Leader
A person becomes a manager by virtue of his A person becomes a leader on basis of his
Origin
position. personal qualities.
Manager has got formal rights in an organization
Formal Rights Rights are not available to a leader.
because of his status.
The group of employees whom the leaders leads
Followers The subordinates are the followers of managers.
are his followers.
A manager performs all five functions of Leader influences people to work willingly for
Functions
management. group objectives.
A leader is required to create cordial relation
Necessity A manager is very essential to a concern.
between person working in and for organization.
Stability It is more stable. Leadership is temporary.
Mutual
All managers are leaders. All leaders are not managers.
Relationship
Manager is accountable for self and subordinates
Accountability Leaders have no well defined accountability.
behaviour and performance.
A leader’s concern is group goals and member’s
Concern A manager’s concern is organizational goals.
satisfaction.
People follow manager by virtue of job
Followers People follow them on voluntary basis.
description.
A manager can continue in office till he performs
Role A leader can maintain his position only through
his duties satisfactorily in congruence with
continuation day to day wishes of followers.
organizational goals.
A leader has command over different sanctions
Manager has command over allocation and
Sanctions and related task records. These sanctions are
distribution of sanctions.
essentially of informal nature.
  Autocratic leadership style: In this style of
leadership, a leader has complete command and hold
over their employees/team. The team cannot put
forward their views even if they are best for the team’s
or organizational interests. They cannot criticize or
question the leader’s way of getting things done.
 The leader himself/herself gets the things done. The
Types of advantage of this style is that it leads to speedy
decision-making and greater productivity under leader’s
Leadership: supervision. Drawbacks of this leadership style are that
it leads to greater employee absenteeism and turnover.
 This leadership style works only when the leader is the
best in performing or when the job is monotonous,
unskilled and routine in nature or where the project is
short-term and risky.
  The Laissez Faire Leadership Style: Here, the
leader totally trusts their employees/team to perform
the job themselves. He just concentrates on the
intellectual/rational aspect of his work and does not
focus on the management aspect of his work.
Types of  The team/employees are welcomed to share their
Leadership: views and provide suggestions which are best for
organizational interests. This leadership style works
only when the employees are skilled, loyal,
experienced and intellectual.
  The leaders invite and encourage the team members
to play an important role in decision-making process,
though the ultimate decision-making power rests with
the leader.
 The leader guides the employees on what to perform
and how to perform, while the employees
Types of communicate to the leader their experience and the
suggestions if any. The advantages of this leadership
Leadership: style are that it leads to satisfied, motivated and more
skilled employees. It leads to an optimistic work
environment and also encourages creativity. This
leadership style has the only drawback that it is time-
consuming.
 Bureaucratic leadership: Here the leaders strictly
adhere to the organizational rules and policies. Also,
they make sure that the employees/team also strictly
follows the rules and procedures. Promotions take
place on the basis of employees’ ability to adhere to
Types of organizational rules.

Leadership: This leadership style gradually develops over time. This

leadership style is more suitable when safe work
conditions and quality are required. But this leadership
style discourages creativity and does not make
employees self-contented.
  Transformational Leadership Theory:
 Creating high-performance workforce has become
increasingly important and to do so business leaders
must be able to inspire organizational members to go
beyond their task requirements. As a result, new
concepts of leadership have emerged -
transformational leadership being one of them.
Theories of  Transformational leadership may be found at all levels
Leadership of the organization: teams, departments, divisions,
and organization as a whole.
 Such leaders are visionary, inspiring, daring,
risk-takers, and thoughtful thinkers. They have a
charismatic appeal. But charisma alone is insufficient
for changing the way an organization operates.
  Transactional Leadership Theory
 The transactional style of leadership was first described by Max
Weber in 1947 and then by Bernard Bass in 1981. This style is most
often used by the managers.
 It focuses on the basic management process of controlling,
organizing, and short-term planning. The famous examples of
leaders who have used transactional technique include McCarthy
Theories of and de Gaulle.
 Transactional leadership involves motivating and directing followers
Leadership primarily through appealing to their own self-interest. The power of
transactional leaders comes from their formal authority and
responsibility in the organization.
 The main goal of the follower is to obey the instructions of the leader.
The style can also be mentioned as a ‘telling style’.
 The leader believes in motivating through a system of rewards and
punishment.
 If a subordinate does what is desired, a reward will follow, and if he
does not go as per the wishes of the leader, a punishment will follow.
Here, the exchange between leader and follower takes place to achieve
routine performance goals.
 Transactional leadership Transformational Leadership
Leadership is responsive Leadership is proactive

Works within the organizational culture Work to change the organizational

culture by implementing new ideas

Transactional leaders make employees Transformational leaders motivate and

achieve organizational objectives empower employees to achieve
through rewards and punishment company’s objectives by appealing to
higher ideals and moral values

Motivates followers by appealing to Motivates followers by encouraging

their own self-interest them to transcend their own interests
for those of the group or unit
  Informal observation of leadership behavior suggests
that leader’s action is not the same towards all
subordinates.
 The importance of potential differences in this respect
Leadership- is brought into sharp focus by Graen’s leader-member
exchange model, also known as the vertical dyad
Member linkage theory.
Exchange  The theory views leadership as consisting of a
number of dyadic relationships linking the leader with
(LMX) a follower. The quality of the relationship is reflected
by the degree of mutual trust, loyalty, support,
Theory respect, and obligation.
 According to the theory, leaders form different kinds
of relationships with various groups of subordinates.
One group, referred to as the in-group, is favored by
the leader.
  The trait model of leadership is based on the
characteristics of many leaders - both successful and
unsuccessful - and is used to predict leadership
effectiveness. The resulting lists of traits are then
compared to those of potential leaders to assess their
Trait Theory likelihood of success or failure.

of  Successful leaders definitely have interests, abilities,

and personality traits that are different from those of
Leadership the less effective leaders. Through many researches
conducted in the last three decades of the 20th
century, a set of core traits of successful leaders have
been identified. These traits are not responsible solely
to identify whether a person will be a successful
leader or not, but they are essentially seen as
preconditions that endow people with leadership
potential.
 Among the core traits identified are:
 Achievement drive: High level of effort, high levels of
ambition, energy and initiative
 Leadership motivation: an intense desire to lead others to
reach shared goals
 Honesty and integrity: trustworthy, reliable, and open
 Self-confidence: Belief in one’s self, ideas, and ability
 Cognitive ability: Capable of exercising good judgment,
strong analytical abilities, and conceptually skilled
 Knowledge of business: Knowledge of industry and other
technical matters
 Emotional Maturity: well adjusted, does not suffer from
severe psychological disorders.
 Others: charisma, creativity and flexibility