Motivation and Management

MOTIVATION AND MANAGEMENT Group: Aristocrats

Group # 6 MBA (Evening) SEM-1

Report: Submitted to Mam Nosheen

UNIVERSITY OF EDUCATION, LOWER MALL CAMPUS, LAHORE Page 1


ASSIGNMENT

MANAGEMENT

TOPIC

MOTIVATION AND MANAGEMENT

SUBMITTED TO

MA’M NOSHEEN

CLASS

MBA (Evening) SEM-1

SUBMITTED BY ROLL # MARKS

NOREEN MAQSOOD (107) _____

SALMAN AHMAD (129) _____

WAQAR AHMAD (134) _____

UMAIR AHMAD (144) _____

USMAN AFZAL (133) _____

REMARKS



MOTIVATION AND MANAGEMENT

INTRODUCTION

Motivation derived from the word motive which means, desire or want which drives within the individuals.

DEFINITION

“Motivation is the force that moves people to initiate, direct and sustain behavior and action.”

EXPLANATION

It is the process of stimulating people to action to accomplish the goals. In the work goal context the psychological factor stimulating the people behavior can be

Desire for money Success Recognition Job satisfaction Team work

One or the most important function of management is to create willingness amongst the employee to perform in the best to their abilities. Therefore the role of the leader is to arouse interest in their jobs.

FUNDAMENTALS OF MOTIVATION

Understanding the forces that shape employee performance is not single task. Why does one employee tackle every project with enthusiasm and consistently succeed, when other fails to meet the expectation, here come the question of performance.



PERFORMANCE

Performance depends on three factors.

Ability Environment Motivation

How to determine the performance of employee?

Performance is determined by three factors; the ability to perform, the job, the organizational environment, and the level of motivation. Suppose there are two A and B employee working in different organization. If A employee have the necessary abilities are supported by their organizational environment and adequately motivated then the A have best chances to achieve his organizational goal, while B lack all these thing he will not able to achieve the goal.

MOTIVATION FACTORS

Motivation factor differ from person to person because motivation so internal force. It cannot be empirically observed, measured or analyzed in future same way that:

Achievement Advancement Growth Recognition Work self Responsibility

NATURE OF MOTIVATION

There are two types of motivation.

Extrinsic motivation Intrinsic motivation



EXTRINSIC MOTIVATION

External or outside of the individual, satisfaction or accomplishment.

INTRINSIC MOTIVATION

Intrinsic motivation is evident when people engage in an activity for its own sake without some obvious external incentive present.

Example

A hobby is typical example.

MOTIVATION PROCESS

The motivation process includes.

A felt need or derive. A stimulates in which needs have to be aroused. When needs are satisfied, the satisfaction or accomplishment of goals.



EARLY APPROCHIES TO MOTIVATION

Throughout the twentieth century, researchers and practitioners have sought to understand exactly how the motivation process operates.

As the large scale corporation became more important in the world economy, and as managers began working with larger number of employees to accomplish more complex goals, the question of effective motivation became increasingly urgent.

Theorists in the scientific and behavioral management schools were among the first to examine the nature and impact of motivation.

So, early approached to motivation

The scientific management approach to motivation The behavioral management approach to motivation

THE SCIENTIFIC MANAGEMENT APPROCH TO MOTIOVATION

Fredrick W. Taylor called as father of scientific management.

Determine most efficient ways Emphasis on to motivate employees Keen on incentive to work

Another scientific theorist Lillian M. Gilbreth also explain that

Promotion Higher salary Shorter hours Holidays

Are all powerful motivators.



CRITISIM

Scientific management theorists focused on monitory rewards only and neglect other important factors of motivation.

BEHAVIORAL MANAGEMENT APPROCH TO MOTIVATION

This theory is focus on behavioral factors. This theory tells us how these factors effect motivation which is stimulated by the finding of Hawthorne studies which was perform at Western Electric.

On the basis of these studies managers who wish to apply behavioral management techniques try to increase their employee’s sense of importance and involvement.

Later behavioral management theorist McGregor offered other insight into the motivation process. An example of this is “theory x” which presented the traditional management view, according to that employees were lazy and uninterested in work. On the other hand “theory y” was proposed, according to this theory employees are creative, mature and interested in work. McGregor believe that under perfect circumstances, employees would willing to contribute their ingenuity and their talent for the benefit of company.

CONTEMPORARY APPROACHES TO MOTIVATION

Contemporary approaches to motivation can be divided into three schools of thought, each of which addresses a particular concept within the motivation model.

These are as follows

Need theory Process theory Reinforcement theory

Need theories examine the internal needs of people to act? Need theories are also called CONTENT THEORIES because they focus on underlying needs people have.

These theories are described by four theorists. Which are as follows?



MASLOW’S HIRARCHY OF NEEDS ALDERFER’S ERG THEORY OF MOTION HERZBERG’S TWO FACTOR THEORY MCCLELLAND’S AQUIRED NEEDS THEORY

MASLOW’S HIRARCHY OF NEEDS

Abraham’s Maslow describes that people are universally motivated to satisfy a sequence of five categories of needs. These are started from basic level and then they advance up the hierarchy as they seek to satisfy each progressively higher need.

The five categories are physiological, safety, social, esteem and self actualization needs.

PHYSIOLOGICAL NEEDS



BASIC NEEDS Food, clothing, shelter.

AT WORK PLACE Adequate pay, break to rest, seat, protection from harsh weather.

SAFETY NEEDS

BASIC NEEDS Secure life that is free from harm.

IN ORGANIZATION Job security, Medical insurance, Retirement place.

SOCIAL NEEDS

Arise from the need for a sense of belonging (Love, affection and Acceptance).

IN ORGANIZATION People try to build friendly relation to fulfill this need.

ESTEEM NEEDS

BASIC NEEDS Self Respect and Recognition.

IN ORGANIZATION People fulfill this need by seeking commendation, Rewards and promotions.



SELF ACTULIZATION

Include one’s full potential and ability/capability.

On the job, people try to get demanding tasks to fulfill this need.

ALDEFER’S ERG THEORY OF MOTION

Alderfer summarized five categories of Maslow’s Hierarchy of needs into three types.

Existence Needs (E) Relatedness Needs(R) Growth Needs (G)

Alderfer differentiated between the lower level needs and the higher level needs according to how concrete the needs seemed to be.



In this theory:

Existence Needs = Lowest Level Needs (Physiological + Some safety)

Relatedness Needs = (Maslow’s Safety + Social + Esteem)

Growth Needs = Self-Esteem (Higher Level)

HERZBERG’S TWO FACTOR THEORY

The two factors are as follows.

Satisfaction Dissatisfaction

As you know that satisfaction and dissatisfaction are two different things but it can

Not be said that satisfaction motivate employees and dissatisfaction dose not.

MCCLELLAND’S ACQUIRED NEEDS THEORY

David C. McClelland was a psychologist. He argued that needs are neither inherited in all people nor the same from person to person, as Maslow, Alderfer, and Herzberg presumed.

He said that these needs are grown up as people move through life.

He describes three categories of needs as

Needs for Achievement Need for Affiliation



Need for Power

VROOM’S EXPECTANCY THEORY

According to Victor Vroom’s

A process theory suggesting that before people act, they consider whether they have the ability and whether their effort will bring about the desired result.

The building block of this theory, which is generally associated with the work of Victor Vroom’s, are threefold:

Effort performance expectancy Performance outcomes expectancy Outcome valence

EFFORT PERFORMANCE EXPECTANCY THEORY

Effort performance expectancy, the first part of the expectancy equation, involves a process of self assessment related to future performance. Employees consider whether they have the necessary abilities, tools, and resources to achieve the desired performance by investing the personal effort. In effect they ask themselves, can I succeed?

If they do not believe that their effort will lead to high performance, then their effort performance expectancy is low. To encourage high effort performance expectancy, effective manager set realistic, well defined goals for performance, provide employees with the

Necessary training, equipment and support to enhance their performance, and match the employees skills to the requirements of the task.



PERFORMANCE OUTCOMES EXPECTANCY

The second part of expectancy equation is performance outcome expectancy which involves the assessment of the work, environment and the reward system. Employees consider what outcomes are likely to be occurring if their action leads to performance. In effect, they ask themselves, if I succeed will I be rewarded? As with effort performance expectancy, when people perceived that their effort will not lead to desirable outcomes, they do not feel motivated to act. To boost performance outcome expectancy, manager should make clear explicit connection between performance and outcomes, and they should deliver rewards on time and as promised but only to those who performed.

Example

Manager at united control wondered why employees rarely used the employee’s suggestions box. The company intends to reward employees whose ideas resulting in significant savings, but for 20 years the box was nearly always empty. Before management would reward an employee for making a suggestion, the idea had to wend its way through a lengthy review process that involve how much the company would save if adopted the idea. Because the process seemed complicated and the rewards were slow in coming, employees felt that the good ideas were not appreciated. Then company executive simplified the program to more quickly evaluating suggestions and to reward employees much faster than the old system. Performance outcome expectancy went up, and employee involvement soared.



ADAM’S EQUITY THEORY

According to J. Satacy Adam

A process theory suggesting that people are motivated to seek equitable treatment compared with other in similar situation.

A state of equity exist when the employee believe that the ratio of input to outcomes is equivalent to input/outcome ratio of other employee who have similar responsibility or of people who do the same job in other organizations. But when the ratio does not seem equivalent, the employee feel under rewarded or over rewarded. Either of these states of inequity creates an inner tension that the employee feels driven to relieve. The greater the inequity, the greater tension and the stronger motivation to reduce it.

Example

Nucor’s CEO f.kenneth inversion was concerned that he could not attract or retain employees if they perceived inequity when they compare their base salaries to the higher base salary offered by the unionized steel mills.

The question is how can we reduce inequity?

People can reduce inequity in several ways. First they can change their input. An employee can decide work in fewer hours in order to reduce the level of input and thereby achieve perceived equity with fellow employees. Second they can change their outcomes by pushing for raises, promotions, or bonuses. Third they can alter their own perceptions. If effort to change outcome and input fails employees may reassess their estimation of both input and output to bring them into line with other employees. Fourth the employee can change the object of comparison by deciding that special would provide more valid comparison. Finally they can transfer to another job, or if no other method to resolve the inequity they feel, they can resign.

One of the problems in applying equity theory is that the estimation of equity is subjective, not objective. People have their own personal methods of evaluating input and outcomes and of comparing their own ratios to those of others. Moreover an employee may feel equity in comparison to other even when the input and output are not identical. The key is that the employee is not believe that the proportion of input and output is equitable



Example

Employee working 20 hours in a week may believe is equitable for 40 hours employees to earn twice as much as long as the ratio of input to outcomes is the same.

This implies that manager must clarify the relationship between input and output if all assembly line employees reach their production targets, for example all must be rewarded equitably. Most important, as managers develop their reward system, they should try to understand what employees consider equitable in relation to their effort and performance.

Researchers have found conflicting evidence to support the validity of equity theory, but it can be useful for the managers who couple it with the expectancy theory.

Example

Corning pays bonuses of 3 to 6 percent of basic pay to individual who do an outstanding job. This is a positive valence and rewarded to high performance.

However the Corning managers are aware that the bonus system sometime stirs a sense of inequity within the ranks. Although the company does not publicize the name people who receive bonus, words sometime leaks out, with both good and bad results. The good news is that people can get one. The bad news is if I have been doing good work and I do not get one. So corning manager work hard to clarify the relationship between the performance and reward and to outline as specifically as possible the bonus criteria.



REINFORCEMENT THEORY OF MOTIVATION

According to motivation equation, needs trigger behavior, which in turn lead to outcomes. Need theories look at what motivates people, and process theories examine the thorough processes that are triggered in responding to needs? Another category of motivation theories examine why people continue to behave as they do, and why they change their behavior.

STATEMENT

“Reinforcement theories suggest that people’s behavior is

Directly related to the consequences of their actions.”

Pioneered by psychologist B.F SKINNER in 1930s, these theories draw heavily on the law of effect, which states that the consequences (effect) of behavior determine whether the behavior will be repeated.

According to this law people are likely to repeat behavior that results in enjoyable or positive consequences, whereas they are likely to abandon those results in unpleasant or no consequences. Reinforcement theories contend that the law of effect holds true no matter what a person’s needs or thought processes may be.

FORMS OF REINFORCEMENT

Skinner work on reinforcement has been the basis for behavior modification, the deliberate use of techniques to change the behavior. Skinner believed that behavior can be modified by applying reinforcement, the use of techniques that cause a behavior to be repeated or abandoned. Reinforcement theory includes four methods of behavior modification.



POSITIVE REINFORCEMENT. AVOIDANCE LEARNING. EXTINCTION. PUNISHMENT.

POSITIVE REINFORCEMENT

Positive reinforcement strengthens behavior by pleasant consequences for a specific action.

Example

Praise for employees who finish their work on schedule, because these employees receive praise, their behavior is reinforced and they are more likely to complete future projects in time.

AVOIDANCE LEARNING

Sometimes employees act one way because they know that if they act differently, they will invite negative consequences. Their behavior is thus reinforced by avoidance learning, it is also known as NEGATIVE REINFORCEMENT.

REASON

Avoidance learning works because people want to avoid unpleasant consequences, so they behave in ways that will not invite such consequences.

Example

If employees know that their manager will ask them to work late if they don’t finish their assigned projects and if they also know that the manager won’t do so if they complete projects on time, they can avoid working late by punctually completing their assignments.



EXTINCTION

Extinction discourages a specific behavior by withholding the positive consequences that have been associated with that action. This reinforcement method works by eliminating pleasant consequences that previously served as positive reinforcement for a particular behavior.

Example

Managers who want their employees to work less unpaid overtime by working more efficiency may choose to stop thanking employees for staying late and for working on weekends. This removes the pleasant consequences of working overtime. Once employees realize that their overtime hours are not appreciated, they will not be motivated to continue this behavior.

PUNISHMENT

Another reinforcement method used to discourage behavior is punishment, which decreases behavior by providing unpleasant consequences. Although punishment is usually successful in eliminating unwanted actions, it does not necessarily produce long term improvements in behavior. When punishment is used, it should be used sparingly and judiciously.

Example

Managers at china’s Xian use punishment to change the behavior of sales clerks. Each month the manager review the customer complaints and select employees for the “40 WORST” list. These employees undesirable range from ignoring customers to throwing things on them. They are categorized as worst clerks. And are by fine and termination.



SCHEDULES OF REINFORCEMENT

The timing or schedule of reinforcement also has an important impact on motivation.

TYPES OF SCHEDULES

There are two types of schedules that a manager can use are.

Continuous schedules Partial schedules

CONTINUOUS SCHEDULES

In continuous every instance of a particular behavior is reinforced. STEVEN ETTRIDGE, president of temp& company in Washington, D.C, uses continuous schedules of reinforcement to reinforce his sales person’s efforts. Each time a sales person makes a call to find out a new customer, he or she receives 50 sent; ETTRIDGE calculates that after 200 calls. The sales person will receive 100$, will find five people who are interested.

PARTIAL SCHEDULES

Many managers rely on partial schedules of reinforcement, in which only some instances of the behavior are reinforced. Partial schedules of reinforcement include.

FIXED INTERVAL FIXED RATIO VARIABLE INTERVAL VARIABLE RATIO



FIXED INTERVAL

A fixed interval schedule reinforces employee behavior at set intervals of time.

Example

A weekly payback is an example of reinforcement delivered on a fixed interval of schedule.

USE OF FIXED INTERVAL

When fixed interval reinforcement is used, performance is only average and tends to peak right before the reinforcement is administered, because employees know they will be paid despite variations in their performance. Furthermore, when fixed interval reinforcement is withdrawn, performance rapidly decline.

FIXED RATIO

A fixed ratio schedule reinforces employee behavior after the desired behavior has been exhibited at specific number of times, rather than at specific time intervals.

Example

Managers who treat their employees to dinner after they have signed 10 new customers are using a fixed ratio schedule to reinforce the behavior of signing new customers. The employees are motivated because they know that each new customer they sign brings them closer to the next free dinner. Fixed ratio schedules can lead to higher and more consistent performance than fixed interval schedules, but when fixed ratio schedules are withdrawn, performance drops rapidly.



VARIABLE INTERVAL SCHEDULES

A variable interval schedule reinforces behavior when some variable but average period has passed between instances of reinforcement.

Example

A manager may inspect each department once a week on average, but employees can’t predict the exact day on which the manager will appear in any given week. This schedule

promotes moderately high but more consistent performance than under a fixed interval schedule, and when reinforcement is withdrawn, performance declines less rapidly.

VARIABLE RATIO SCHEDULES

Variable ratio schedule reinforces behavior after a variable but average number of occurrences of the behavior.

Example

A manager who uses a 15 – 1 variable ratio might praise employee first after they submit 10 cost cutting ideas, next after they submit 20 ideas and so on. This schedule can lead to the highest consistent levels of performance because employee maintains their performance. As with the variable interval schedule, when the variable ratio schedule is withdraw, performance declines more slowly than when fixed schedules are withdrawn.



REWARD SYSTEM

To get maximum performance and productivity, managers can build effective motivation programs for their employees. For this, they must give them some rewards for their encouragement, so that, employees can achieve their goals and standards.

The rewards can be either intrinsic or extrinsic.

INTRINSIC REWARDS

Intrinsic rewards may include a feeling of accomplishment and self-actualization.

EXTRINSIC REWARDS

Extrinsic rewards may include benefits, recognition, status symbols and money.

Reward systems come in a variety of sizes and shapes. For any reward system to work well, it must address Maslow’s and Alderfer’s lower level needs as well as Herzberg’s hygiene factors.

The managers who create these reward systems must also recognize that, as McClelland suggested, individuals have different needs and may therefore require different rewards.



TYPES OF REWARD SYSTEM

Following are the types of reward systems.

Merit system Pay for knowledge system Other reward systems

Profit sharing Gain sharing Employee stock ownership plane(ESOPs) Flexible reward system

MERIT SYSTEM

A system in which employees receive rewards as their performance improves.

It can also be said that it is a pay for performance system. In this system the employees receive rewards such as salary increases as their performance improves.

PAY FOR KNOWLEDGE SYSTEM

A reward system in which employees receive rewards as they learn to perform additional tasks or acquire new skills.

OTHER REWARD SYSTEMS

Many organizations want to reward their employees on the basis of their proportional contribution to overall organizational performance.

This type of reward can be in a variety of ways, which are as follows.

PROFIT SHARING

A reward system in which employees receive bonuses based on the organization’s profitability. In this system employees get bonuses when the organization earns profit above the threshold.



GAIN SHARING

A reward system in which employees receive bonuses on their unit’s performance. This system was devised to meet some of the short comings of profit sharing, reward employees with bonuses based on the performance of their unit, group, division or team. It includes better productivity, lower costs, higher quality and better customer services.

EMPLOYEES STOCK OWNERSHIP PLANE (ESOPs)

A reward system in which managers encourage employees to own stock in their own companies, providing an incentive for employees to increase the value of that stock through higher performance.

FLEXIBLE REWARD SYSTEM

A reward system that offers employees the option of selecting the reward they consider most valuable. In this reward system we allow the employees to select their own reward from a menu of choices.



REFERENCES

BOOK

Management by Courtland Bovee

WEB SITES

www.Google.com

www.Redcliff.com

www.enotes.com

www.Universal teacher publication.com

OTHER

James crick research pages


http://www.Universal/

http://www.enotes.com/

http://www.Redcliff.com/

Documents

Motivation and Management