1. The document discusses several theories of motivation including Maslow's hierarchy of needs theory, Herzberg's two-factor theory, and McGregor's Theory X and Theory Y. 2. Maslow's hierarchy proposes that people are motivated to fulfill basic physiological needs first before moving up through additional needs such as safety, social belonging, esteem and self-actualization. Herzberg identified motivators related to the work itself that create satisfaction as well as hygiene factors whose absence can cause dissatisfaction. 3. McGregor's Theory X assumes people dislike work while Theory Y assumes people can find work motivating with the right conditions. The document analyzes the implications of each theory on management practices

1. Motivation
Man is a complex animal. He is far more complex than he seems to be. Thus, when one wants
to define motivation, he enters a field which is somewhat difficult because the precise
conceptual definition of the term is rarely found. Consequently the expressed and implied
meanings commonly differ.
The word “motivation” comes from the Latin word “ movere ”, which means move.
Motivation is often referred to as the “dynamic of behavior”. The term ‘dynamic’ means
energies or forces which produce motion in physical bodies. In psychology and administration,
it means the mental enraging force or motive that activates the organism.
Motivation is the processes that account for an individual’s intensity, direction, and persistence
of effort toward attaining a goal.
In the words of L.A. Allen, "Motivation is the work of manager who performs to inspire,
encourage and impel people to take required action."
Objectives and Characteristics of Motivation
The objective of motivation is to create conditions in which people are willing to work with
zeal, initiative, interest and enthusiasm. Motivation is a captivating concept. It is a fascinating
but a complex phenomenon. The main features of motivation are as follows:
 Motivation is goal-oriented;
 Motivation is a continuous process;
 Motivation may be positive or negative;
 Motivation may be monetary or non-monetary;
 Motivation may be considered in totality, not in piece-meal;
 Motivation is a psychological phenomenon which converts abilities into performance.
Motivators
Motivators are things that induce an individual to perform. While motivation reflects wants,
motivators are the identified rewards or incentives that sharpen the drive to satisfy these wants.
A motivator, then, is something that influences an individual's behavior. It makes a difference
in what a person will do.

2. Motivating
Motivating is the management process of influencing people's behavior based on the
knowledge of what cause and channel sustain human behavior in a particular committed
direction. Simply, the term motivation indicates a noun whereas motivating a verb. Motivation
refers to a state of mind to work willingly, whereas motivating is the process of influencing
behavior.
The Motivation Process
The motivation process progresses through a series of discrete steps. Needs/motives are the
starting point of motivation. An unsatisfied need creates tension that stimulates drives within
the individual. These drives generate a search behavior to achieve particular goals that will
satisfy the need and lead to reduction of tension. The action taken by the individual will lead to
reward/goal which satisfies the need and reduces tension.
The motivation process may be presented in the following diagram;
Employee motivation is of crucial concern to management; mainly because of the role that
employee motivation plays in performance. Usually performance is determined by
a. Ability
b. Environment
c. Motivation.
If any of these three factors is missing or deficient, effective performance is impossible.

3. Theories of Motivation
In the 1950's three specific theories were formulated and are the best known:
1. Maslow’s Need-Hierarch Theory,
2. The two-factor theory of Herzberg.
3. McGregor’s Theories X and Y
These early theories are important to understand because they represent a foundation
from which contemporary theories have grown. Practicing managers still regularly use .
Explanation of Maslow’s Hierarchy of Needs Theory
The Maslow’s hierarchy of needs is a theory proposed by Abraham Harold Maslow in his 1943
paper "A Theory of Human Motivation". Maslow, a famous psychologist tried to understand
human motivation. Abraham Maslow’s hierarchy of needs is the most well-known theory of
motivation.
Abraham Maslow is his Hierarchy of Needs theory showed that an individual has a hierarchy of
needs that shape his reaction to any particular situation.
A.H. Maslow has shown that an individual has a hierarchy of needs that shape his reaction to
any particular situation. Maslow advanced the following important propositions about human
behavior;
 Man is a wanting being: Man always wants and he wants more. But what he wants
depends upon what he already has. As soon as one of the man's needs is satiated,
another appears in the place. This process is unending and continuous from birth to
death.

4.  A satisfied need is not a motivator: A satisfied need is not a motivator of human
behavior. Only the unsatisfied needs motivate behavior.
 A Need can be arranged in a number of levels: When a need can be arranged in a
number of levels a hierarchy is formed. The satisfaction of lower level needs demands
the fulfillment of the next level. That is According to Maslow, each person had a
different set of needs at different point of time in his life. He said that all needs of
humans could be arranged in a hierarchy. Each person is said to move through the
hierarchy by fulfilling each level of needs. Some people may have dominant needs at a
particular level and thus never move through the .entire hierarchy. He hypothesized that
within every human being there exists a hierarchy of five needs:
Let us see what is meant by of each of these needs:
Hierarchy of Five Needs
1. Physiological Needs
These are the basic needs for the maintenance of human life. These are the basic needs
of organism—food, water, shelter, clothing, sexual satisfaction and the like. Maslow
took the positions that until these needs are satisfied to the degree necessary to maintain
life other needs will not motivate people.
2. Safety Needs
These are the needs to be free from physical danger and the fear of loss of a job,
property, food, or shelter.

5. 3. Social Needs
Since people are social beings, they need to belong and to be accepted by others. Social
needs are; physical association and contact, belongingness, love and affection,
acceptance by fellows and the like.
4. Esteem Needs
If other needs are reasonably satisfied then ego needs become motivator. People want to
be held in esteem both by themselves and by others. This kind of need produces such
satisfactions as power, prestige, status and self-confidence. It includes internal esteem
factors such as self-respect, autonomy, and achievement; and external esteem factors
such as status, recognition, and attention
5. Self-Actualization Needs
Maslow regards this as the highest need in his hierarchy. It is the desire to become what
one is capable of becoming—to maximize one's potential and to accomplish something.
It is apparent that it is impossible to motivate workers by satisfying all of the above mentioned
needs. It is not valid for the workers of developing countries. It may be somewhat true for
developed countries.

6. The levels are presented in the form of a triangle or a pyramid with the largest and most
fundamental levels of needs at the bottom tier, and the need for self- actualization at the top.
As a need becomes substantially satisfied, the next need becomes dominant. No need is ever
fully gratified; a substantially satisfied need no longer motivates.
According to Maslow physiological, security, social, and esteem needs are deficiency needs or
D-needs that arise because of deprivation. The highest-level of the pyramid is called the
growth needs or B-needs. Maslow separated the five needs into higher and lower orders;
 Physiological and safety needs are described as lower-order.
 Social, esteem, and self-actualization arc as higher-order needs.
 Higher-order needs are satisfied internally.
 Lower-order needs are predominantly satisfied externally.

7. Criticism of Maslow's Need-hierarchy Theory:
Maslow's concept of Need-hierarchy has been subjected to considerable research. Researchers
have raised questions about the accuracy of the hierarchical aspects of these needs. Maslow's
Need-hierarchy theory is criticized for the following reasons:
1. The limitations with this theory lie in the fact that different cultures may cause people
to have different hierarchies of needs. People necessarily may not satisfy one level after
another and may have other needs not mentioned in the list and may be ready to
sacrifice some needs.
2. He describes that after fulfilling one need people jump over the need. But one person
can exist in a definite hierarchy at a same time.
3. He has over emphasized on subjective side of motivation but failed to spell out clearly
the objective side of motivation.
4. The theory does not mention the proportion of need that must be satisfied to move to
higher need.
5. The strength of needs varies in between individuals. In one individual social needs may
predominate while in another actualization needs may be strongest.
6. Maslow provided conflicting images of self-actualized man.
7. Maslow has over-emphasized the subjective side of motivation but he has failed to spell
out clearly the objective side of motivation.
8. Needs do not always follow a hierarchy, especially after lower level needs are satisfied.
9. The upward movement of needs result from upward career changes and not from the
satisfaction of lower order needs.
10. In almost all groups satisfaction of needs is definitely more or less insufficient.
Thus, Maslow's hierarchy of needs theory is not only outdated but also limited in its usefulness
to act as an all-encompassing theory of human motivation. Maslow’s need theory has received
wide recognition, particularly among practicing managers.

8. Two-Factor Theory of Herzberg
Another popular content perspective is the two-factor theory of motivation. Frederick Herzberg
a well-known management theorist developed a specific content theory of work motivation;
developed his theory by interviewing 200 accountants and engineers employed by firms in and
around Pittsburg in the 1950s. The purpose of his study was to find out what people want, and
what motivates them.
Frederick Herzberg's two-Factor or motivation-hygiene theory is based on two types of factors;
satisfiers motivational factor and dissatisfy or hygiene factor.
Fig: Frederick Herzberg's two-Factor or motivation-hygiene theory is based on two types
of factors

9. The Dissatisfies include the factors of company policy and administration, salary, supervision,
working conditions, interpersonal relations, status, job security, and personal life. However;
dissatisfies are not motivators.
The satisfiers are motivators and therefore related to job content. They include the factors like
achievement, recognition, challenging work, advancement, responsibility and growth in the
job. Their existence yields feelings of satisfaction.
The first groups of factors are called maintenance factors. Their presence will not motivate
people, yet they must be present. In fact they provide an almost neutral feeling among the
people of an organization, but their withdrawal or absence creates dissatisfaction. The second
groups, or the job content factors, are found to be the real motivators; because they have the
potential of yielding a sense of satisfaction.
To summarize the Two-factor theory;
 Intrinsic or satisfiers (motivational) factors, such as advancement, recognition,
responsibility, and achievement seem to be related to job satisfaction.
 Dissatisfied respondents tended to cite extrinsic or hygiene (maintenance) factors, such
as supervision, pay, company policies, and working conditions.
 The opposite of satisfaction is not dissatisfaction.
 Removing dissatisfying characteristics from a job does not necessarily make the job
satisfying.
Job satisfaction factors are separate and distinct from job dissatisfaction factors. Managers who
eliminate job dissatisfaction factors may not necessarily bring about motivation. When hygiene
factors are adequate, people will not be dissatisfied; neither will they be satisfied. To motivate
people, emphasize factors intrinsically rewarding that are associated with the work itself or to
outcomes directly derived from it.

10. Criticism of Herzberg's Two Factor Theory:
Herzberg's theory has, however, been criticized by many authors. The criticism of the theory is
based on the following points.
 The factors leading to satisfaction and dissatisfaction are not really different from each
other. It has been contended that achievement, recognition and responsibility are
important for both satisfaction and dissatisfaction, while such dimensions as security,
salary and working conditions are less important;
 The two factor theory is an over-simplification of the true relationship between
motivation and dissatisfaction. Several studies showed that one factor can cause job
satisfaction for one person and job dissatisfaction for another.
 Herzberg's inference regarding differences between satisfiers and motivators cannot be
completely accepted. People generally attribute the causes of satisfaction to their own
achievements. But more likely they attribute their dissatisfaction to obstacles presented
by company's policies or superiors than to their deficiencies.
Though Herzberg's theory has met severe criticism, it has cast a new light on the content of
work motivation. It has contributed substantially to Maslow's ideas and made them more
applicable to the work situation. It has also contributed to job design technique or job
enrichment.
Regardless of criticisms, Herzberg’s theory has been widely read, and few managers are
unfamiliar with his recommendations. The popularity of vertically expanding jobs to allow
workers greater responsibility can probably be attributed to Herzberg’s findings.

11. Differences between Maslow's and Herzberg’s Models
Issue Maslow's Model Herzberg's Model
Order of needs Hierarchical arrangement of needs. No such hierarchical arrangement.
Emphasis Descriptive. Prescriptive
Essence of theory Unsatisfied needs energize behavior;
this behavior causes performance.
Gratified needs cause performance.
Motivator Any need can be a motivator if it is
relatively unsatisfied.
Only higher order needs serve as
motivators.
Applicability Takes a general view of the
motivational problems of all
workers.
Takes a micro-view and deals with
work oriented motivational problems
of professional workers
Factors The existence of some factors
creates positive attitude and their
non-existence creates negative
attitude.
The positive and negative factors are
completely different.

12. McGregor's Theory-X and Theory-Y of Motivation
Douglas McGregor stated his views of human nature in two sets of assumptions; theory-X and
theory-Y.
Douglas McGregor expressed his views of human nature in two sets of assumptions. They are
popularly known as 'Theory-X' and 'Theory-Y'. Theory-X stands for the set of traditional
beliefs held, while Theory-’ stands for the set of beliefs based upon researches in behavioral
science which is concerned with modern social views on man at work.
These two theories represent the extreme ranges of assumptions. The managerial attitudes and
supervisory practices resulting from such assumptions have an important bearing on
employees’ behavior.
Theory X assumptions are basically negative:
 Employees inherently dislike work and, whenever possible, will attempt to avoid it.
 Since' employees dislike work, they must be coerced, controlled, or threatened with
punishment.
 Employees will avoid responsibilities and seek formal direction whenever possible.
 Most workers place security above all other factors and will display little ambition.
Managers who accept theory-X assumptions have a tendency to structure, control and closely
supervise their employees. These managers think that external control is clearly appropriate for
dealing with unreliable, irresponsible and immature people.
Drawing heavily on Maslow's hierarchy of needs, McGregor concluded that theory-X
assumptions about the nature of man are generally inaccurate and the management practices
that develop from these assumptions will often fail to motivate individuals to work toward
organizational goals.
In view of the drawbacks of theory-X, McGregor developed an alternative theory of human
behavior called Theory-Y.

13. Theory Y assumptions are basically positive:
 Employees can view work as being as natural as rest or play.
 People will exercise self-direction and self-control if they are committed to the
objectives.
 The average person can learn to accept, even seek, responsibility.
 The ability to make innovative decisions is widely dispersed throughout the population.
Managers who accept theory-Y assumptions about nature of man do not attempt to structure,
control or closely supervise the employees. Instead, these managers help their employees
mature by subjecting them to progressively less external control and allowing them to assume
more and more self-control.
Theory X and Theory Y Theory X Theory Y
Work is inherently distasteful to most people Work is as natural as play, if the conditions
are favourable.
Most people are not ambitions, have little
desire for responsibility, and prefers to be
directed.
Self-control is often indispensable in
achieving organizational goals.
Most people have little capacity for creativity
in solving organizational problems.
The capacity for creativity in solving
organizational problems is widely disturbed
in the population.
Motivation occurs only at the physiological
and safety levels.
Motivation occurs at the social, esteem and
self-actualization levels, as well as
physiological and security levels.
Most people must be closely controlled and
often coerced to achieve organizational
objectives.
People can be self-directed and creative at
work if properly motivated.

14. Employees derive the satisfaction of social, esteem and self-actualization needs within this
kind of environment.
Thus theory-Y aims at the establishment of an environment in which employees can best
achieve their personal goals by consulting, participating and communicating themselves to the
objectives of the organization. In this process, employees are expected to exercise a large
degree of internal motivation.
Theory X assumes that lower-order needs dominate individuals. Theory Y assumes that higher-
order needs dominate individuals. McGregor himself held to the belief that Theory Y
assumptions were more valid than Theory X.

15. Theory-X and Theory-Y Management Application-Business Implications for Workforce
Motivation. If theory y holds true, an organization can apply these principles of scientific
management to improve employee motivation:
1. Decentralization and Delegation: If firms decentralize control and reduce the number
of levels of management; managers will have more subordinates and consequently will
be forced to delegate some responsibility and decision making them.
2. Job enlargement: Broadening the scope of an employee's job adds variety and
opportunities to satisfy ego needs.
3. Participative management: Consulting employees in the decisions making process
taps their creative capacity and provides them with some control over their work
environment.
4. Performance appraisals: Having the employee set objectives and participate in the
process of evaluating how well they were met.
If properly implemented, such an environment would result in a high level of workforce
motivation as employees work to satisfy their higher level personal needs through their job.
In a nutshell it may seem that Maslow, McClelland, Herzberg and McGregor view motivation
from different perspective. But basically they emphasize similar sets of relationships.
Maslow stresses the rarely satisfied higher level needs as the motivating force. McClelland
mentioned that the drive for achieving varies in individuals according to their personality and
cultural background.
Herzberg views "satisfiers" as motivators after the "hygiene factors" have done away with
dissatisfaction. McGregor's theory, which is based on assumptions concerning the motives of
individuals, views motivation from the perspective of managerial attitude.

16. ERG Theory of Motivation
To bring Maslow’s need hierarchy theory of motivation in synchronization with empirical
research, Clayton Alderfer redefined it in his own terms. His rework is called as ERG theory of
motivation. He re-categorized 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 individuals have for maintaining
significant interpersonal relationships (be it with family, peers or superiors), getting
public fame and recognition. Maslow’s social needs and external component of esteem
needs fall under this class of need.
 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.
Fig: The significance of the three classes of needs may vary for each individual.
Difference between Maslow Need Hierarchy Theory and Alderfer’s ERG
Theory
ERG Theory states that at a given point of time, more than one need may be operational.
ERG Theory also shows that if the fulfillment of a higher-level need is subdued, there is
an increase in desire for satisfying a lower-level need.

17. According to Maslow, an individual remains at a particular need level until that need is
satisfied. While according to ERG theory, if a higher- level need aggravates, an individual
may revert to increase the satisfaction of a lower- level need. This is called frustration-
regression aspect of ERG theory. For instance- when growth need aggravates, then an
individual might be motivated to accomplish the relatedness need and if there are issues in
accomplishing relatedness needs, then he might be motivated by the existence needs.
Thus, frustration/aggravation can result in regression to a lower-level need.
While Maslow’s need hierarchy theory is rigid as it assumes that the needs follow a
specific and orderly hierarchy and unless a lower-level need is satisfied, an individual
cannot proceed to the higher-level need; ERG Theory of motivation is very flexible as he
perceived the needs as a range/variety rather than perceiving them as a hierarchy.
According to Alderfer, an individual can work on growth needs even if his existence or
relatedness needs remain unsatisfied. Thus, he gives explanation to the issue of “starving
artist” who can struggle for growth even if he is hungry.
Implications of the ERG Theory
Managers must understand that an employee has various needs that must be satisfied at the same
time. According to the ERG theory, if the manager concentrates solely on one need at a time, this
will not effectively motivate the employee. Also, the frustration- regression aspect of ERG
Theory has an added effect on workplace motivation. For instance- if an employee is not
provided with growth and advancement opportunities in an organization, he might revert to the
relatedness need such as socializing needs and to meet those socializing needs, if the
environment or circumstances do not permit, he might revert to the need for money to fulfill
those socializing needs. The sooner the manager realizes and discovers this, the more immediate
steps they will take to fulfill those needs which are frustrated until such time that the employee
can again pursue growth.
Goal Setting Theory of Motivation
In 1960’s, Edwin Locke put forward the Goal-setting theory of motivation. This theory states
that goal setting is essentially linked to task performance. It states that specific and challenging
goals along with appropriate feedback contribute to higher and better task performance.
In simple words, goals indicate and give direction to an employee about what needs to be done
and how much efforts are required to be put in.

18. The important features of goal-setting theory are as follows:
The willingness to work towards attainment of goal is main source of job motivation.
Clear, particular and difficult goals are greater motivating factors than easy, general and
vague goals.
Specific and clear goals lead to greater output and better performance. Unambiguous,
measurable and clear goals accompanied by a deadline for completion avoids
misunderstanding.
Goals should be realistic and challenging. This gives an individual a feeling of pride and
triumph when he attains them, and sets him up for attainment of next goal.
Better and appropriate Feedback is a means of gaining reputation, making clarifications
and regulating goal difficulties. It helps employees to work with more involvement and
leads to greater job satisfaction.
Employees’ participation in goal is not always desirable.
Participation of setting goal, however, makes goal more acceptable and leads to more
involvement.
Goal setting theory has certain eventualities such as:
a. Self-efficiency- Self-efficiency is the individual’s self-confidence and faith that he
has potential of performing the task. Higher the level of self-efficiency, greater
will be the efforts put in by the individual when they face challenging tasks.
b. Goal commitment- Goal setting theory assumes that the individual is committed
to the goal and will not leave the goal. The goal commitment is dependent on the
following factors:
i. Goals are made open, known and broadcasted.
ii. Goals should be set-self by individual rather than designated.
iii. Individual’s set goals should be consistent with the organizational goals
and vision.

19. Advantages of Goal Setting Theory
 Goal setting theory is a technique used to raise incentives for employees to complete
work quickly and effectively.
 Goal setting leads to better performance by increasing motivation and efforts, but also
through increasing and improving the feedback quality.
Limitations of Goal Setting Theory
 At times, the organizational goals are in conflict with the managerial goals. Goal conflict
has a detrimental effect on the performance if it motivates incompatible action drift.
 Very difficult and complex goals stimulate riskier behaviour.
 If the employee lacks skills and competencies to perform actions essential for goal, then
the goal-setting can fail and lead to undermining of performance.
 There is no evidence to prove that goal-setting improves job satisfaction.
McClelland's Human Motivation Theory
In the early 1940s, Abraham Maslow created his theory of needs . This identified the basic
needs that human beings have, in order of their importance: physiological needs, safety needs,
and the needs for belonging, self-esteem and "self-actualization".
Later, David McClelland built on this work in his 1961 book, "The Achieving Society." He
identified three motivators that he believed we all have: a need for achievement, a need for
affiliation, and a need for power. People will have different characteristics depending on their
dominant motivator.
According to McClelland, these motivators are learned (which is why this theory is sometimes
called the Learned Needs Theory).
McClelland says that, regardless of our gender, culture, or age, we all have three motivating
drivers, and one of these will be our dominant motivating driver. This dominant motivator is
largely dependent on our culture and life experiences.

20. These characteristics are as follows:
Dominant
Motivator
Characteristics of This Person
Achievement 1. Has a strong need to set and accomplish challenging goals.
2. Takes calculated risks to accomplish their goals.
3. Likes to receive regular feedback on their progress and
achievements.
4. Often likes to work alone.
Affiliation 1. Wants to belong to the group.
2. Wants to be liked, and will often go along with whatever the rest of
the group wants to do.
3. Favors collaboration over competition.
4. Doesn't like high risk or uncertainty.
Power 1. Wants to control and influence others.
2. Likes to win arguments.
3. Enjoys competition and winning.
4. Enjoys status and recognition.

21. McClelland's achievement motivation theory in work situations
McClelland's acquired needs are found to varying degrees in all workers and managers, and this
mix of motivational needs characterizes a person's or manager's style and behavior, both in terms
of being motivated, and in the management and motivation others.
People with different needs are motivated differently.
 High need for achievement (n-ach)
High achievers should be given challenging projects with reachable goals. They should be
provided frequent feedback. While money is not an important motivator in itself. Rather, it is an
effective form of feedback.
 High need for affiliation (n-affil)
Employees with a high affiliation need perform best in a cooperative environment.
 High need for power (n-pow)
Management should provide power seekers the opportunity to manage others.
Note that McClelland's acquired needs theory allows for the shaping of a person's needs; training
programs can be used to modify one's need profile.
Relation of McClelland's achievement motivation theory to other theories
McClelland's concept of achievement motivation is also related to Herzberg's motivation-
hygiene theory. People with high achievement motivation tend to be interested in the motivators
(the job itself).
Achievement-motivated (n-ach) people want feedback. They want to know how well they are
doing on their job. On the other hand, people with low achievement motivation are more
concerned about the environment. They want to know how people feel about them rather than
how well they are doing.