Answer guidelines

Question 1
1) Abraham Maslows 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 this 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 ones potential and self-fulfillment. It is to maximize ones
potential and to accomplish something.

As each of these needs are 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.
Maslows need theory has received wide recognition, particularly among practicing managers. This
can be attributed to the theorys intuitive logic and ease of understanding. However, research does not
validate these theory. Maslow provided no empirical evidence and other several studies that sought to
validate the theory found no support for it.
2) 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 managers 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 beings 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.
3) Frederick Herzbergs motivation-hygiene theory :
Frederick has tried to modify Maslows 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. In- trinsic 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
asked people to describe in detail, such situations when they felt exceptionally good or exceptionally
bad. From the responses that he received, he concluded that opposite of satisfaction is not
dissatisfaction. Removing dissatisfying characteristics from a job does not necessarily make the job
satisfying. 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 nonpresence 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.
4) 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.

5) Vrooms Valence x Expectancy theory :

The most widely accepted explanations of motivation has been propounded by Victor Vroom. His
theory is commonly known as expectancy theory. The theory argues that the strength of a tendency to
act in a specific way depends on the strength of an expectation that the act will be followed by a given
outcome and on the attractiveness of that outcome to the individual to make this simple, expectancy
theory says that an employee can be motivated to perform better when their is a belief that the better
performance will lead to good performance appraisal and that this shall result into realization of
personal goal in form of some reward. Therefore an employee is :
Motivation = Valence x Expectancy.
The theory focuses on three things :

Efforts and performance relationship

Performance and reward relationship

Rewards and personal goal relationship

This leads us to a conclusion that :

6) Clayton Alderfers 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.
3. It also contains the frustration-regression dimension.
7) McClellands Theory of Needs :
David McClelland has developed a theory on three types of motivating needs :

1. Need for Power

2. Need for Affiliation
3. Need for Achievement
Basically people for high need for power are inclined towards influence and control. They like to be at
the center and are good orators. They are demanding in nature, forceful in manners and ambitious in
life. They can be motivated to perform if they are given key positions or power positions.
In the second category are the people who are social in nature. They try to affiliate themselves with
individuals and groups. They are driven by love and faith. They like to build a friendly environment
around themselves. Social recognition and affiliation with others provides them motivation.
People in the third area are driven by the challenge of success and the fear of failure. Their need for
achievement is moderate and they set for themselves moderately difficult tasks. They are analytical in
nature and take calculated risks. Such people are motivated to perform when they see atleast some
chances of success.
McClelland observed that with the advancement in hierarchy the need for power and achievement
increased rather than Affiliation. He also observed that people who were at the top, later ceased to be
motivated by this drives.
8) Equity Theory :
As per the equity theory of J. Stacey Adams, people are motivated by their beliefs about the reward
structure as being fair or unfair, relative to the inputs. People have a tendency to use subjective
judgment to balance the outcomes and inputs in the relationship for comparisons between different
individuals. Accordingly :
If people feel that they are not equally rewarded they either reduce the quantity or quality of work or
migrate to some other organization. However, if people perceive that they are rewarded higher, they
may be motivated to work harder.
9) Reinforcement Theory :
B.F. Skinner, who propounded the reinforcement theory, holds that by designing the environment
properly, individuals can be motivated. Instead of considering internal factors like impressions,
feelings, attitudes and other cognitive behavior, individuals are directed by what happens in the
environment external to them. Skinner states that work environment should be made suitable to the
individuals and that punishments actually leads to frustration and de-motivation. Hence, the only way
to motivate is to keep on making positive changes in the external environment of the organization.
10) Goal Setting Theory of Edwin Locke :
Instead of giving vague tasks to people, specific and pronounced objectives, help in achieving them
faster. As the clearity is high, a goal orientation also avoids any misunderstandings in the work of the
employees. The goal setting theory states that when the goals to be achieved are set at a higher
standard than in that case employees are motivated to perform better and put in maximum effort. It
revolves around the concept of Self-efficacy i.e. individuals belief that he or she is capable of
performing a hard task.

11) Cognitive Evaluation Theory :

As per these theory a shift from external rewards to internal rewards results into motivation. It
believes that even after the stoppage of external stimulus, internal stimulus survives. It relates to the
pay structure in the organization. Instead of treating external factors like pay, incentives, promotion
etc and internal factors like interests, drives, responsibility etc, separately, they should be treated as
contemporary to each other. The cognition is to be such that even when external motivators are not
there the internal motivation continues. However, practically extrinsic rewards are given much more
weightage.
Question 2
Motivating employees to perform to their maximum potential is the responsibility of an organisations
leaders. In todays economy, many companies no longer have the luxury of using money as a
motivational tool. So how do organisations motivate their staff - without using money?
1. Learn and acknowledge your employees' personal career objectives
Employees who know they are on track for a specific career path are more motivated to
perform at a higher level. Employees need to know what opportunities there are for growth
beyond their current role. Upward mobility and future promotions can be more motivating to
some employees than money. Considering the current state of the global economy, a secure
career path is more important than salary.
Most individuals with the greatest upward mobility are also motivated by leadership
opportunities. Organisations need to avoid promoting the wrong people, but it is important for
employees to know and understand that promotion opportunities are available. Without any
upward movement, many employees will lose their sense of purpose and motivation.
2. Retain high-quality employees through sound management practices
After investing considerable time and money recruiting and training employees, managers
must now determine how to make sure those valuable employees are productive and remain
loyal to the organisation. Employee retention is essential in order to maintain client
relationships and keep recruiting and training costs in line.
Losing an experienced employee results in significant financial losses to the organisation. The
keys to employee satisfaction and retention are founded on strong leadership and sound
management practices. Managers who can master these arts will have happy and loyal
employees and clients.
3. Affirm job security through managerial support in every aspect of the employee's job
When motivating employees, job security is essential. Job security can be a significantly
stronger motivator than financial benefits. In most situations, individuals are more likely to be
more negatively affected by the threat of job termination instead of a pay cut or missed
promotion.

Job security also impacts the work ethic of employees. If employees feel they might be fired
or laid off, they are more likely to put less effort into their work.
One of the best ways managers can encourage job security is by showing adequate support in
every aspect of the employee's job. Managers encourage job security by taking the time to
encourage employees and acknowledging their work and performance.
4. Create an atmosphere and culture where people want to work
When employees have favourable perceptions of their work situation, their organisation, and
the support they receive from their managers and supervisors, they are motivated to work
more diligently and identify with the mission of the organisation. High levels of employee
engagement contribute to employee retention - employees are much less likely to quit because
they are engaged with the organisation as a whole and are invested in the overall success of
the company.
Most employees are proud of their organisations and have a personal connection with the
company that extends beyond daily tasks. Creating a positive atmosphere and organisational
culture where employees want to work motivates many individuals to stay and not seek
employment elsewhere.
A good corporate culture enables employees to combine their strengths with the attitudes and
values of the organisation. The leadership skills of the managers are critical in providing an
atmosphere where employees will be motivated to perform and remain loyal to the
organisation.
5. Show employees respect through consistency and empowerment
In an ideal world every organisation would show the proper amount of respect to each
employee. Unfortunately, that is not the case. Respect is reciprocal in nature and an
organisation that shows respect to employees is more likely to receive respect from its
employees. A respectful company has employees who feel valued and supported and show the
same respect back to the company through hard work and diligence.
Managers show consistency, provide mentoring opportunities, give employees a voice in
decisions, inform employees, and serve as professional role models.
6. Redefine job requirements to provide interesting and challenging work for successful
employees
One of the most significant motivating factors for employees is the type of work they do on a
daily basis. If the work is challenging and fulfilling, the employee is more motivated to
complete the tasks. The psychological lift that employees receive from performing tasks that
are important to them can be just as valuable as their salary.

Unfortunately, many think that "more interesting" means "more work". Good managers don't
make that mistake. Work can be made more interesting by altering the environment, for
example, or altering the job requirements. You may be able to refine the position based on a
candidate's qualifications and specific skill set.
7. Provide mentorship opportunities
For employees who may not be as "company-focused" as others, personal growth
opportunities are more motivating than money or stock options.
Providing mentorship opportunities for employees is one of the easiest and most beneficial
platforms for personal growth. Although mentorship takes time and effort, it provides
professional training at a personal level. The investment of time and teaching into a promising
young employee will not only motivate that employee to be a loyal member of the business,
but it will also train them to be a valuable asset to the organisation.
Personal growth opportunities also come in the form of educational scholarships. Many
businesses now offer to pay tuition fees in return for contract extensions upon the completion
of the degree.
8. Create a dialogue of feedback with each employee to encourage, challenge, and inform
each other
Frequent communication with employees concerning their work is essential to boost
employee morale and performance. Positive communication can motivate and reinforce
outstanding performance. Prompt discussions of problem areas will help prevent those areas
from becoming major issues later.
Whether the message is positive or negative, communication is motivating. On the rare
occasion, a critical comment may be the most motivating factor an employee experiences. In
most situations, positive encouragement provides the greatest benefit for the individual
employee and the business as a whole. The most important factor is that there is a continuous
dialogue concerning the performance of each employee.
9. Recognise significant performances, or achievements, publicly
Recognition is often more highly valued than an increase in pay and is one of the most
effective ways to motivate employees. Employees place an enormous amount of value in
pride, personal satisfaction, and recognition among their peers.
Recognition for performance, or an achievement, must be sincere. Managers should seek out
special contributions that have made a significant difference to the team or the organisation.
Set a high standard for recognition, but be generous when it is reached.

Public recognition not only allows the entire team or company to see the extraordinary effort
of an individual, but it also communicates what is expected for the future. Managers must be
sensitive to employees as well, considering that public recognition may be the last type of
encouragement some individuals want to receive.
10. Provide additional training and educational opportunities for upwardly mobile
individuals
Advancement opportunities are important motivators that significantly influence employee
behaviour. If an employee knows that there is no upward movement in an organisation, they
will lose all external motivation to perform at a high level. What do they have to gain if there
is no opportunity for promotion? They will likely look for employment elsewhere.
Managers can help these individuals understand the core behaviours that will either enable or
impede their ability to be successful. Give these people the ability to develop their skills
through managing special projects and smaller teams, gradually building more responsibility
as they gain skill and experience.