Unit-2 Motivation: Major Motives Influencing An Entrepreneur

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Unit-2 Motivation

Major Motives Influencing an Entrepreneur: The entrepreneurial motivation is the process that
activates and motivates the entrepreneur to exert higher level of efforts for the achievement of
his/her entrepreneurial goals. In other words, the entrepreneurial motivation refers to the forces or
drive within an entrepreneur that affect the direction, intensity, and persistence of his / her voluntary
behaviour as entrepreneur. So to say, a motivational entrepreneur will be willing to exert a particular
level of effort (intensity), for a certain period of time (persistence) toward a particular goal
(direction).

Definition: Motivation is regarded as “the inner state that energizes activities and directs or
channels behavior towards the goal”. Motivation is the process that arouses action, sustains the
activity in progress and that regulates the pattern of activity.

Nature of Motivation: The nature of motivation emerging out of above definitions can be
expressed as follows:

1. Motivation is internal to man- Motivation cannot be seen because it is internal to man. It is


externalized via behavior. It activates the man to move toward his / her goal.

2. A Single motive can cause different behaviors- A person with a single desire or motive to earn
prestige in the society may move towards to join politics, attain additional education and training,
join identical groups, and change his outward appearance.

3. Different motives may result in single behaviour- It is also possible that the same or single
behaviour may be caused by many motives. For example, if a person buys a car, his such behaviour
may be caused by different motives such as to look attractive, be respectable, gain acceptance from
similar group of persons, differentiate the status, and so on.

4. Motives come and go- Like tides, motives can emerge and then disappear. Motives emerged at a
point of time may not remain with the same intensity at other point of time. For instance, an
entrepreneur overly concerned about maximization of profit earning during his initial age as
entrepreneur may turn his concern towards other higher things like contributing towards
philanthropic activities in social health and education once he starts earning sufficient profits.

5. Motives interact with the environment- The environment in which we live at a point of time
may either trigger or suppress our motives. You probably have experienced environment or
situation when the intensity of your hunger picked up just you smelled the odour of palatable food.
You may desire an excellent performance bagging the first position in your examination but at the
same time may also be quite sensitive to being shunned and disliked by your class mates if you
really perform too well and get too much of praise and appreciation from your teachers. Thus, what
all this indicates is that human behaviour is the result of several forces differing in both direction
and intent.

Most of the researchers have classified all the factors motivating entrepreneurs into internal and
external factors as follows:

Internal Factors: These include the following factors:

 Desire to do something new.


 Become independent.

 Achieve what one wants to have in life.

 Be recognized for one’s contribution.

 One’s educational background.

 One’s occupational background and experience in the relevant field.

External Factors: These include:

 Government assistance and support.

 Availability of labour and raw material.

 Encouragement from big business houses.

 Promising demand for the product.

Achievement Motivation Training: Achievement motivation, also referred to as the need for
achievement (and abbreviated n Achievement), is an important determinant of aspiration, effort, and
persistence when an individual expects that his performance will be evaluated in relation to some
standard of excellence. Such behavior is called achievement-oriented.

Behavioural experiments like “Kakinada Experiment” of David C. McClelland has proved beyond
doubt that achievement motivation can be developed. The concept of “Entrepreneurial Motivation
Training (EMT)” now rechristened as “Entrepreneurship Development Programmes (EDPs)” is
based on this belief that achievement motivation can be developed by imparting required training
and education to the prospective entrepreneurs.
Achievement Motivation Training (AMT) is a well-designed, research-based, program that has been
repeatedly used to enhance achievement and personal performance. Because of its outcome based
research findings, AMT is presented as an evidence-based program for enhancing achievement and
performance. Achievement Motivation Training (AMT) programs could enhance the achievement
thinking of adults, specifically businessman. Most of the early studies were directed to enhance
performance with achievement thinking being taught through the use of stories, behavioral
strategies, exercises, and individual exercises in goal setting.

The modus operandi of developing achievement motivation:

 Know yourself Stage: In this stage, the trainer presents and describes the ideal attributes or
qualities of a person with achievement motivation. These are exemplified by suitable
examples. Then, trainees are asked to probe into their personality to identify the attributes
they possess. Self-assessment in supplemented by comments and observation by other
trainees. Thus, the trainee comes to know the real self. A comparison of ideal with real self
creates discrepancy or disequilibrium. Such knowledge of discrepancy induces trainee to
reduce or eliminate the same for its better self. Thus, the process of change motivation sets
in.
 Knowing the Destination Stage: In this stage, the facilitator helps the trainee initiate actions
to fill in the gap of remove the discrepancy between the ideal and the actual personality traits.
Various measures like change in attitudes and beliefs and undertaking some experiential
exercises can be initiated to close the gap between the ideal and the present personality traits.
Efforts are made to practice the changed attitude and modification in behaviour in real life
situations. The feedback, whatsoever, is continuously gathered and religiously analysed.
 Empowering Stage: With an objective to give confidence to the trainees, they are, in this
stage, left their own to think and practice the ways and means to experiment the new qualities
and traits they have so far acquired.

Self-Rating: If you're starting or leading a company, it's beneficial to know yourself inside and
out. Even though you've been with yourself your whole life, it's hard to pinpoint your qualities.
Assessing yourself with professional self-assessment tools can:

 Help you understand how you work best, so you can make appropriate changes.
 Help your employees understand what motivates and drives you.
 Help you recognize when you're in over your head and need help.
 Help you choose who to hire to recognize your strengths and weaknesses.
 See holes and spots where you need help.
There are tons of different assessments. We've explained nine in this post, but there are many others
that might suit you better. We recommend taking a few, and also encouraging partners, employees,
and even family members to take them, too. The more everyone understands each other, the better
off you'll be!

Business Games: Business game (also called business simulation game) refers to simulation


games that are used as an educational tool for teaching business. Business games may be carried out
for various business training such as: general management, finance, organizational behavior, human
resources, etc. Often, the term "business simulation" is used with the same meaning.

A business game is defined as "a game with a business environment that can lead to one or both of
the following results: the training of players in business skills (hard and/or soft), or the evaluation of
players' performances (quantitatively and/or qualitatively)". Business games are used as a teaching
method in universities, and more particularly in business schools, but also for executive education.
Simulation are considered to be an innovative learning method, and are often computer-based.

Most of these games use simulators to imitate real life and favor experiential learning. So much so
that business games are also referred to as business simulation games. Business games initially
followed the spirit of experiments carried out in the 1950s by the US Army to train its soldiers. By
the 1960s, different universities incorporated business games in their economics and business
departments, where board games and experiential activities were used to teach students. Video
games eventually took their place and still continue evolving, forcing their way into learning
institutions such as Harvard or corporations such as Coca-Cola.

Advantages of business games? There is a simple explanation for the growing popularity of
business games: they work. Overwhelming scientific evidence confirms that the use of games and
simulators improve the learning process. Why? There are at least three reasons:

 Learning by doing. The secret to success of business games resides in their capacity to


represent real-life problems and afford the direct practice of knowledge and skills via
simulators. Learners are given a safe environment (therefore lacking economic risks) to
immerse themselves in the same corporate issues that company executives face regularly,
responding and interacting with them from the very beginning.

 Interactive learning. Another key aspect of business games is their capability to capture


learner engagement and participation. Numerous studies demonstrate that our brains
remember knowledge better if we actively participate or interact when learning it. Compared
to classroom-based or video lessons, business games bolster the direct participation,
including emotional involvement, of the learners.

 Cost reduction. Even though developing a good business game requires time, knowledge
and money, once created, economies of scale entail an enormous competitive advantage.
Unlike classroom lessons, these business games can be quickly and securely implemented
anywhere in the world. Many of the best business games currently available only require
learners to have smartphones and an Internet connection.

Examples of business games: Though something of a quirk in the beginning, there are currently an
enormous amount of business games on the market. The following are only 4 of the most salient
ones:

 Capitalism. First published in 1995, this video game soon became a business game classic.
Used by Harvard and Stanford universities, Capitalism helps students understand and tackle
the challenges of virtually every company and sector (marketing, distribution, manufacturing
or import/export). Its latest version, Capitalism Lab, was released in 2012.

 Beer distribution game. Designed by the business school at the Massachusetts Institute of
Technology (MIT) toward the end of the 1960s, this game has often been reinterpreted and
reworked. It was designed to teach all the secrets of supply and distribution chains (with cost
overruns, delays and multiple suppliers).

 SimCity. This legendary video game is centred on the process of building and managing a
city. Players must build transportation services and utilities such as water supplies,
electricity, sanitation or education while attuning their budgets (raising or lowering taxes,
changing budgetary items, etc.) to satisfy the needs of their citizens. Another similar,
critically acclaimed game is Cities: Skylines.

 Merchants. Players of this business game are transported back to medieval Venice to engage
in multiple “real” negotiations regarding the shipment of goods, silk trade or sovereignty of
various Mediterranean islands. This video game imparts all the secrets and techniques of
negotiations and has been highly successful in companies across the globe.

Thematic Apperception Test: The Thematic Apperception Test, or TAT, is a type of projective
test that involves describing ambiguous scenes. Popularly known as the "picture interpretation
technique," it was developed by American psychologists Henry A. Murray and Christina D. Morgan
at Harvard University in the 1930s. To date, the TAT is one of the most widely researched and
clinically used personality tests.

How the TAT Works: The TAT involves showing people


a series of picture cards depicting a variety of ambiguous
characters (that may include men, women, and/or
children), scenes, and situations. They are then asked to
tell as dramatic a story as they can for each picture
presented, including:

 what has led up to the event shown


 what is happening in the scene
 the thoughts and feelings of characters
 the outcome of the story

The complete version of the TAT includes 31 cards. Murray originally recommended using
approximately 20 cards and selecting those that depicted characters similar to the subject.

Why the TAT Is Used: The TAT can be utilized by therapists in a number of different ways. Some
of these include:

 To learn more about a person. In this way, the test acts as something of an icebreaker while
providing useful information about potential emotional conflicts the client may have.

 To help people express their feelings. The TAT is often used as a therapeutic tool to allow
clients to express feelings in a non-direct way. A client may not yet be able to express a
certain feeling directly, but they might be able to identify the emotion when viewed from an
outside perspective.

 To explore themes related to the person's life experiences. Clients dealing with problems
such as job loss, divorce, or health issues might interpret the ambiguous scenes and relating
to their unique circumstances, allowing deeper exploration over the course of therapy.

 To assess someone for psychological conditions. The test is sometimes used as a tool to
assess personality or thought disorders.   
 To evaluate crime suspects. Clinicians may administer the test to criminals to assess the risk
of recidivism or to determine if a person matches the profile of a crime suspect.

 To screen job candidates. This is sometimes used to determine if people are suited to


particular roles, especially positions that require coping with stress and evaluating vague
situations such as military leadership and law enforcement positions.

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