Module V: Human Resource Development: Introduction, Needs assessment phase,

Training Phase, Evaluation phase, Training methods. Rewarding Employees,

Compensation policy, employee satisfaction and motivation issues

Human Resource Development - Introduction:

Human Resource Development (HRD) program can improve company productivity and
profitability while increasing employee satisfaction. HRD is actually one of the most
significant opportunities that employees look for when they are considering taking a new
position. It helps employees feel that their company is invested in them, which creates a more
loyal workforce and also makes them more accepting of change when they’re exposed to new
skills, information and practices on a regular basis.

Human resource development- Meaning:

HRD is the integrated use of training and career development efforts to improve the
performance of the individual or group as well as overall organizational effectiveness. It
develops the competencies that employees need to perform the current jobs and prepares
them for future roles through planned learning activities. HRD focuses on matching the needs
of the individual and the organization. 
While choosing the right person for the job and then retaining them has always been the focus
on the HR department, the emphasis of HRD is on motivating and developing employees.
This requires HR departments to create policies and programs that lead to the development of
the workforce and contribute to the development or the organization. 
 

Benefits of human resource development:

HRD is viewed as critical for higher productivity, profitability and better relations. Some of
the most important benefits include:

 Development of new skills, attitudes and knowledge

 Increased trust and respect
 Increased commitment to jobs
 Increased acceptability towards change, as employees find themselves better equipped
with problem-solving capabilities
  Improved team spirit and overall growth of employees
 Greater organizational effectiveness and a culture of efficiency
 Improved employee participation
 Better human resources (HR) planning for collecting useful and objective data on
employee policies and programs

Human Resource Development (HRD) is that part of Human Resource Management which
specifically deals with the training and development of employees. It helps the employees in
developing their knowledge, skills and abilities to achieve self-fulfilment and aid in the
accomplishment of organizational goals.

HRD can be defined as organized learning activities arranged within an organization in order
to improve performance and/or personal growth for the purpose of improving the job, the
individual, and/or the organization.

Human Development Phases:

Human Resource Development Process comprises of a series of steps that needs to be

followed systematically to have an efficient training programme. The Training is a systematic
activity performed to modify the skills, attitudes and the behaviour of an employee to
perform a particular job.
Human Resource Development Phases:

1.Needs assessment Phases:

The concept of need refers to a discrepancy or gap between what an organization

expects to happen and what actually occurs.

The first step in the Development process is to assess the need for training the
employees. The need for training could be identified through a diagnosis of present
and future challenges and through a gap between the employee’s actual performance
and the standard performance.

The needs assessment can be studied from two perspectives: Individual and group.
The individual training is designed to enhance the individual’s efficiency when not
performing adequately. And whereas the group training is intended to inculcate the
new changes in the employees due to a change in the organization’s strategy.

1. Deriving Instructional Objectives: Once the needs are identified, the

objectives for which the training is to be conducted are established. The objectives
could be based on the gaps seen in the training programmes conducted earlier and the
skill sets developed by the employees.

2. Designing Training Programme: The next step is to design the training

programme in line with the set objectives. Every training programme encompasses
certain issues such as: Who are the trainees? Who are the trainers? What methods are
to be used for the training? What will be the level of training? etc. Also, the
comprehensive action plan is designed that includes the training content, material,
learning theories, instructional design, and the other training requisites.

3. Implementation of the Training Programme: Once the designing of the

training programme is completed, the next step is to put it into the action. The
foremost decision that needs to be made is where the training will be conducted either
in-house or outside the organization.

Once it is decided, the time for the training is set along with the trainer who will be
conducting the training session. Also, the trainees are monitored continuously
 throughout the training programme to see if it’s effective and is able to retain the
employee’s interest.

4. Evaluation of the Training Programme: After the training is done, the

employees are asked to give their feedback on the training session and whether they
felt useful or not. Through feedback, an organization can determine the weak spots if
any, and can rectify it in the next session. The evaluation of the training programme is
a must because companies invest huge amounts in these sessions and must know it’s
effectiveness in terms of money.

TRAINING:

Training is a planned programme designed to improve performance and bring about

measurable changes in knowledge, skills, attitude and social behaviour of employees.

Features of Training:

 Increases knowledge and skills for doing a particular job

 Focuses attention on the individual job.
 Concentrates on individual employees
 Gives importance to short term performance
Training is essential for job success. It can lead to higher production, fewer mistakes,
greater job satisfaction and lower turnover.

Need for Training:

 helps new recruits to perform assigned tasks effectively

 helps existing employees to prepare for higher level jobs
 enables existing employees to keep in touch with latest developments
 permits employees to cope with changes brought in by frequent transfers
 makes employees more versatile, mobile, flexible and useful to the organisation
 bridges the gap what the employee has and what the job demands allows an
employee to gain acceptance from peer groups readily 
Training vs. Development
Training is concerned with teaching specific job-related skills and behaviour.
Development is future oriented training, focusing on the personal growth of the employee.

Learning Dimension Train ing Development

Meant for Operatives Executiv es
Focus Current job Current and future jobs
Scope Indiv idual employee Work group or organis ation
Goal Fix current skill deficit Prepare for future work demands
Initiated by Management The Individual
Content Specific job related information General Knowledge
Time-fr ame Immediate Long term

Training Pitfalls

Here is a checklist to avoid training pitfalls

 Attempting to teach too quickly

 Trying to teach too much
 Viewing all trainees as the same
 Giving very little time to practice
 Offering very little to the trainee in the form of encouragement, praise or reward
Learning Principles: The Philosophy of Training

Training efforts are invariably based on certain learning oriented guidelines:

 Modeling: It is simply copying someone else's behaviour. (like showing the

videotapes of desired behaviour while at work)
 Motivation: For learning to happen, it is important to motivate the trainee first.
 Reinforcement: If behaviour is rewarded, it probably will be repeated. Positive
reinforcement consists of rewarding desired behaviours.
 Feedback: Feedback helps an employee find where he stands. People learn best if
reinforcement is given as soon as possible.
  Spaced practice: Learning takes place easily if the practice sessions are spread
over a period of time.
 Whole learning: Employees learn better if the job information is given as an entire
logical process.
 Active practice: Learning is enhanced when trainees are provided ample
opportunities to repeat the task.
 Relevance: training should be as real as possible so that trainees can successfully
transfer the new knowledge to their jobs
 Environment: employees learn faster in comfortable environments

Areas and Types of Training:

Training is generally offered in the following areas

Areas of training:

 Knowledge
 Technical skills
 Social skills
 Techniques
Types of Training:

 Skills training: here certain basic skills like reading, writing, computing,
speaking, listening, problem solving etc are taught
 Refresher training: here the focus is on short term courses that would help
employees learn about latest developments in their respective fields
 Cross functional training: this helps employees perform operations in areas other
than their assigned job.
 Team training: this is concerned with how team members should communicate
with each other, how they should cooperate to get ahead, how they should handle
conflict situations, how to find their way using collective wisdom etc.
 Creativity training: this helps employees to think unconventionally, break the
rules, take risks, go out of the box and develop unexpected solutions.
  Diversity training: it aims to create better cross-cultural sensitivity with the aim
of fostering more harmonious and fruitful working relationships among a firm's
employees
 Literacy training: this is generally offered to those employees with weak reading,
writing or arithmetic skills.

A Systematic Approach to Training

A systematic approach to training would consist of three phases: training needs

assessment, implementation and evaluation

Training needs assessment

Training efforts must aim at meeting the needs of the organisation and the individual
employees. This, essentially, involves three types of analysis:

A. Organisational analysis: This is a study of the entire organisation in terms of its

objectives, utilization of resources to achieve objectives etc.

 Analysis of objectives
       Resource utilization analysis
       Environmental scanning
 Organisational climate analysis
B. Task or role analysis: this is a detailed examination of a job, its components, its
various operations and conditions under which it has to be performed.

C. Person analysis: here the focus is on the individual in a given job; whether training is
needed, whether the employee is capable of being trained, and the areas where the training
is needed.

D. Identify training objectives:

E. Training methods: Formal training methods include on the job training

covering job instruction training, coaching, mentoring, job rotation,
apprenticeship training, committee assignments etc and off the job training
including lectures, conference, simulation exercises and programmed instruction.

F. Evaluation: Evaluation helps in controlling and correcting the training programme.

 OBJECTIVES OF TRAINING

OBJECTIVE

Innovative Problems Solvin g Regular

Anticipating problems Train in g clerks to Orientation
before they occur reduce complaints
Team building Training supervisors Recurring training of
sessions with the in communications interviewers
departments to reduce grievances
Refresher courses on
safety procedures
FUNCTIONS OF MENTORING

Good mentors...... Good mentees......

Lis ten and understand Listen
Challenge and stimulate Act on Advice
learning Show commitment to learn
Coach
Check ego at the door
Buil d self-confidence Successf ul Ask for feedback
Provide wise counsel Mentoring
Are open minded
Teach by example
Are willing to change
Act as role model
Are proactive
Share experiences
Offer encouragement

TRAINING METHODS:

On The Job Training Methods

 Job instruction training (JIT): This is training directly received on the job. Here
the trainee receives an overview of the job. The trainer actually demonstrates the
hob and the trainee is asked to copy the trainer’s way. The trainee, finally, tries to
perform the job independently.
  Coaching: Here the supervisor explains things and answers questions; throws light
on why things are done the way they are; offers a model for trainees to
copy, conducts lot of decision making meetings, and allows trainees freedom to
commit mistakes and learn .Coaching, thus, requires lot of teaching skills.
 Mentoring: The use of an experienced person to teach and train someone with less
knowledge and experience in a given area is known as mentoring. The mentor
nurtures, supports and guides the efforts of young persons by giving appropriate
information, feedback and encouragement whenever required.
 Apprenticeship training: Most craft workers such as plumbers, carpenters etc
are trained through formal apprenticeship programmes. In this method, the trainees
are put under the guidance of a master worker typically for 2-5 years.
 Committee assignments: In this method, trainees are asked to solve an actual
organisational programme working along with other trainees.
Off The Job Training Methods

 Vestibule training: It occurs off the job on equipment or methods that are highly
similar to those used on the job.
 Role playing: This is a development technique requiring the trainee to assume a
role in a given situation and act out behaviours associated with that role.
 Lecture method: Here the instructor organises the study material on a specific
topic and offers it to a group of trainees in the form of a talk.
 Conference or discussion method: In this method the trainer delivers a lecture
and involves the trainees in a discussion so that the doubts about the job to be
undertaken get clarified.
 Programmed instruction: This is an approach that puts material to be learned
into highly organized logical sequences that require the trainees to respond

Evaluation of a Training Programme

Training can be evaluated at five levels: reaction, learning, behaviour, organisation and
results. Important decision points in training evaluation may be listed thus;

Important decision points in planning training evaluation

 Should an evaluation be made?

 Who should evaluate?
  What is the purpose of evaluation?
 What will be measured?
 How comprehensive will the evaluation be?
 Who has the authority and responsibility?
 What are the sources of data?
 How will the data be collected and evaluated?
 How will the data be analyzed and reported?
Methods of evaluation

 Questionnaires
 Tests
 Interviews
 Studies
 Human resource factors
 Cost benefit analysis
 Feedback.
EXECUTIVE DEVELOPMENT

Introduction

The basic purpose of executive development is to improve managerial performance by

imparting knowledge, changing attitudes or increasing skills. Training certainly helps in
improving job-related skills but when the intent is to enhance executives’ ability to handle
diverse jobs and prepare them for future challenges the focus must shift to executive
development.

Training vs. executive development

Training I te m De velop men t

Learn specific beha viour s and Fo cus Understand and interpret knowledge;
actions; demonstrate techniques Develop judgement; Expand capacities
and pr ocesse s. for varied assignments.
Short term. Time F rame Long term.
Tries to improve a specific skill Process Aims at improving the total personality
relating to a job (mostly technical of an individual (largely analytical and
and mechanical). conceptual abilities).
Meet current requir ements of a Goal Meet future challenges of the job and
job; aims at improving employee th e in dividu al; aims a t provi ding
performance on a cur rently held learning opportunities designed to help
job. employees grow.
Per forman ce app raisals, cost- Qua lifie d p eop le a vaila ble w he n
Effectiveness
benefit analysis, passing tests ne ed ed, pr om ot ion f r om w ith in
Measures
or certification. po ssible , H R- b ased comp et itive
advantage.
Features of executive development:

 It is a planned effort to improve executives’ ability to handle a variety of

assignments
 It is not a one-shot deal, but a continuous, ongoing activity.
 It aims at improving the total personality of an executive.
 It aims at meeting future needs unlike training, which seeks to meet current needs.
 It is a long term process, as managers take time to acquire and improve their
capabilities.
 It is proactive in nature as it focuses attention on the present as well as future
requirements of both the organisation and the individual.

Importance of executive development:

 Invaluable investment in the long run as it helps managers to acquire requisite

knowledge, skills and abilities needed to handle complex situations in business.
 Enables executives to realize their own career goals and aspirations.
 Helps executives to step into superior positions easily.
 Assists executives in enhancing their people-management skills, taking a holistic
view of various problems.

Executive Development Programmes:

Steps in the organisation of an executive development programme

 Analysis of organisational development needs.

 Appraisal of present managerial capabilities.
 Inventory of executive talent (in terms of age, service, education, experience etc).
 Planning of individual development programmes.
 Devising appropriate development programmes.
 Evaluating results
Methods/techniques executive development:

Various methods are employed to develop managerial skills and knowledge, such as:
 1. Decision-making skills (a) In-basket
(b) Business game
(c) Case study
2. Interpersonal skills (a) Role play
(b) Sensitivity training
(c) Behaviour Modelling
3. Job knowledge (a) On-the-jobexperiences
(b) Coaching
(c) Understudy
4. Organisational knowledge (a) Job rotation
(b) Multiple management
5. General knowledge (a) Special courses
(b) Special meetings
(c) Specific readings
6. Specific individual needs (a) Special projects
Methods/techniques (b) Committee assignments

In-basket: The trainee is asked to look into a number of papers such as memoranda,
reports, telephone messages that typically confront a manager and respond appropriately.

+Trainees learn quickly, as they have to do everything within a time frame.

+Creates healthy competition between participants allows them to grow.

-The method is somewhat academic and removed from real life situations.

-Participants rarely respond to such imaginary situations in an enthusiastic manner.

Case-study: The participant is asked to take up a simulated business problem and take
appropriate decisions.

When a case is study most appropriate?

 When the problem requires problem solving, thinking skills.

 The KSAs are complex and participants need time to master them.
 Active participation is required.
 The process of learning is as important as the content.
 Tem problem solving and interaction are possible.
When using case studies
  Be clear about learning objectives and explore possible ways to realize the
objectives.
 Decide which objectives would be best served by the case method.
 Find out the available cases that might work or consider developing your own.
 Set up the activity – including the case material, the room and the schedule.
 Observe the principles that guide effective group interactions.
 Provide an opportunity to all trainees to participate meaningfully and try to keep
the groups small.
 Stop for process checks and get set to intervene when interactions go out of hand.
 Allow for different learning styles.
 Clarify the trainer's role as a facilitator .
 Bridge the gap between theory and practice

Role play: This is a technique that requires the trainee to assume different identities to
learn how others feel under different circumstances

+ Participants develop interpersonal skills

+ They learn by doing things actually

+ The competitive environment compels participants to listen, observe, analyse and

improve their own performance by exploiting their potential fully

-lack of realism in this method comes in the way of enthusiastic participation

-not easy to duplicate the pressures and realities of actual decision making

-most trainees may not be very comfortable in role playing situations

Sensitivity training: This is a method of changing behaviour through unstructured group

interaction. (also known as T-group training, where T stands for training)

Features of T-group training:

 T-Group consists of 10-12 persons.

  A leader acts as a catalyst and provides a free and open environment for
discussion.
 There is no specified agenda.
 Members express their ideas, feelings and thoughts freely and openly.
 The focus is on behaviour rather than on duties.
 The aim is to achieve behaviour effectiveness in transactions with one's
environment.
Benefits:

 Participants gain rich experience in getting along with people.

 The exclusive focus on each others' behaviour helps participants to observe,
analyze and then respond appropriately.
 Trainees can find out where they stand in comparison to others.
 The agenda less discussions encourages the participants to come out more openly
and share their opinions with others.
 The opportunity to take charge of the group is always inherently present for the
right candidate.
Costs:

 Considerable time is wasted in agenda-less, direction-less discussions.

 T-group leaders may lack the skills to instil enthusiasm and confidence in
participants.
 There is an immoral and unjustified invasion of privacy, based on false
assumptions about the nature of human relationships at work.
 The interchange of opinions in an open manner may be punished by superiors at a
later stage, using some pretext or the other.
 T groups may actually destroy team learning and team spirit as they encourage
participants to be hostile without feeling guilty during training.

Behaviour modelling: This is an approach that demonstrates desired behaviour and gives
trainees the chance to practice and role-play those behaviours and receive feedback.
On the job experience: This is a kind of class room learning where the trainee learns by
actually doing things under the supervision of an experienced supervisor. Such methods
are highly useful for certain groups like scientific and technical personnel

Coaching: This is a development activity in which a supervisor plays an active role in

imparting job knowledge and skills to the trainee. For effective coaching, a healthy and
open relationship ust exist between employees and their supervisors.

Merits and demerits of coaching

+ Trainees learn quickly by actually doing a piece of work and obtain feedback

+Where the trainer and the trainee interact in an open manner, there is tremendous scope
for the trainee to grow by seeking clarifications continuously and rectifying mistakes

- A lot depends on the interpersonal skills of the supervisor

-The learner, often, cannot develop much beyond the limits of his own supervisor

Understudy: This is a development method wherein potential managers are given the
chance to temporarily relieve an experienced manager of part of hi job and act as his
substitute during the period, giving him vital insights into the overall job that would make
him the automatic choice in the succession process.

Job rotation: Moving a trainee from job to job so as to offer cross training is called job
rotation. The idea behind this is to give managers the required diversified skills and a
broader outlook.

Multiple management: It is a system in which permanent advisory committees of

managers study problems of the company (thereby gaining first hand experience of
various important aspects of business) and make recommendations to higher management.

Special courses, meetings, readings: In addition to the above, managers could also
benefit by attending workshops organized by academic institutions, attending special
meetings organized by various government and voluntary organisations and by reading
specific articles relevant to their respective fields.

Special projects: In this method, a trainee is put on a project closely related to the
objectives of the department.
Committee assignment: In this method, an adhoc committee is appointed to discuss,
evaluate and offer suggestions relating to an important aspect of business.

Conferences: A conference is a meeting of people to discuss a subject of common

interest. The participants exchange notes, opinions and ideas on the subject in a systematic
and planner manner.

Lectures: Lectures are formal presentations on a topic by an experienced and

knowledgeable person. The presentation is generally supported by discussions, case
studies, audio-visual aids and film shows.

Group discussion: In this method, papers are presented by two or three trainees on a
selected topic, followed by thought-provoking discussions.

Programmed instruction: This is a learner-oriented technique which presents subject

matter to the trainees in small sequential steps requiring frequent responses from the
trainee and immediately offering him of their accuracy or otherwise.

SELF-DEVELOPMENT

Self-Development is taking personal responsibility for one's own learning and development
through a process of assessment, reflection, and taking action.

When To use it

 To continually update skills and to remain marketable in the workplace.

 To determine future career direction.

How to use it

 Assess your current skills and interest through paper-and-pencil career tests or
through computer programs that analyze skills and interests.
 Maintain a learning log or diary to help you analyze what you are learning from work
experiences.
 Write a personal vision and mission statement.
 Develop a personal development plan that identifies your learning needs and goals.
  Find a mentor who can provide you with support, advice, and assistance in your
career direction.
 Become involved in professional organizations.
 Read professional journals and trade magazines to keep current on the latest
developments in your field.

REWARDS FOR EMPLOYEES:

Reward:

Reward is an incentive plan to reinforce the desirable behaviour of workers or employers and
in return for their service to the organization. Rewards can be monetary in the form of salary
or non-monetary in the form of awards for some special services to the company or simply
giving an employee a work which he enjoys doing. The primary objective of organizations in
giving rewards is to attract, maintain and retain efficient, high performing and motivated
employees.

Importance of Rewards

There can be various types of rewards an organization can give its employees like money,
grade, performance based incentive or performance pay, increment, gift cards, recognition or
awards, profit sharing, holiday packages, medical coverage, promotion, bonuses etc. They are
given mainly to appreciate the performance of employees and to motivate them. This is
because motivated workers lead to higher productivity and the organization as a whole
prospers. On the other hand if workers are unmotivated they can lead to the failure of the
organization by disrupting and de-motivating other workers as well. Rewards are considered
separate from salary but they may be monetary and have a cost to company. They are
generally aligned to organizational goals, when an employee helps the organization to
achieve any of its organizational goals he/she is rewarded.
The 3 Major Types Of Rewards

1. Intrinsic versus Extrinsic Rewards

Intrinsic rewards are the rewards that are non-tangible but yet results in higher levels of job
satisfaction. Some examples are- an impressive job title, career growth, personal
achievements, praises, etc.

Extrinsic rewards are tangible rewards that employees receive upon doing good work. It
includes bonuses, raises, gifts, etc.

Intrinsic rewards make employees feel valued in a company. Similarly, extrinsic rewards
focus on improving employees' performance through appreciation. It's necessary to find a
balance between extrinsic (performance) and intrinsic (motivation).

2. Non-financial versus Financial Rewards

Financial rewards work by positively contributing to the overall employees' financial

wellbeing. It includes bonuses, salary raises, etc.

Non-financial types of rewards do not provide any financial gain to the employee. Instead, it
focuses on appreciating employees through employee benefits. Gym memberships, parking
space, gift cards are a few examples.

Non-financial rewards are more feasible for companies to reward employees mainly because:

 Long term effects as compared to financial rewards. Employees are more likely to
keep enjoying the benefits. However, financial rewards give one-time satisfaction.

 Employees feel more comfortable about discussing their rewards with their peers.

 For the same performance, financial incentives require higher investment.

 A more affordable option for small businesses and start-ups.

3. Membership versus Performance-based Rewards

Performance-based rewards are allocated based on the performance of an employee in a

company. Performance-based rewards are given in the form of pay plans, incentive systems,
group bonuses, or commissions.
Membership-based rewards are given in the form of benefits and services provided to the
company's employees. It might be in the form of the annual Christmas bonus, company
retreat, upgraded office furnishing, etc.

COMPENSATION ADMINISTRATION

Compensation is what employees receive in exchange for their contribution to the

organization. Generally speaking, employees offer their services for three types of rewards

 Base pay
 Variable pay
 Benefits

The most important objective of any pay system is fairness or equity, generally expressed in
three forms

 Internal equity: where more difficult jobs are paid more

 External equity: where jobs are fairly compensated in comparison to similar jobs in
labour market
 Individual equity: where equal pay is ensured for equal work

Objectives of compensation planning

 Attract talent
 Retain talent
 Ensure equity
 Reward appropriately (loyalty, commitment, experience, risk raking and other desired
behaviours)
 Control costs
 Comply with legal rules
 Ease of operation

Components of Pay Structure:

The two essential components of pay structure are; basic wages and dearness allowance. the
basic wage rate is fixed taking the skill needs of the job, experience needed, difficulty of
work, training required, responsibilities involved and the hazardous nature of the job.
Dearness allowance it paid to employees in order to compensate them for the occasional or
regular rise in the price of essential commodities.

Factors influencing compensation levels:

 Job needs
 Ability to pay
 Cost of living
 Prevailing wage rates
 Unions
 Productivity
 State regulation
 Demand and supply of labour

Choices In Designing A Compensation System

The compensation that is followed by a firm should be in tune with its own unique character
and culture and allow the firm to achieve its strategic objectives. A variety of choices
confront a firm here:

 Internal and external pay

 Fixed vs. variable pay
 Performance vs. membership
 Job vs. individual pay
 Below market vs. above market compensation
 Open vs. secret pay

INCENTIVES AND EMPLOYEE BENEFITS

A proper system of wage payment is absolutely essential to keep employees in good humour.
Ideally, such a system must have the following characteristics:
Characteristics of a wage payment plan

 Simple
 Beneficial
 Equitable
 Guaranteed minimum wage
 Balanced
 Incentive-oriented
 Quality output
 Certainty
 Cost effective
 flexible

Variable Pay Or Pay For Performance Systems

Here the pay is linked to individual, group or organisational performance. Employees have to
compete and deliver results. Three types of variable pay are commonly used:

 Individual incentives: they link individual effort to pay

 Group incentives: they link pay to the overall performance of the entire group
 Organisation-wide incentives: here employees are rewarded on the basis of the
success of the organisation over a specified time period.

Essentials of a sound incentive plan

 Guaranteed minimum wages

 Simple
 Equitable
 Economical
 Flexible
 Supported by workers and unions
 Motivating
 Prompt payment
Individual Incentive Plans

 Halsey plan: Here the worker gets a guaranteed wage based on the time, irrespective
of whether the assigned work is completed or not. If the worker is able to finish the
task in less than the standard time, he or she is entitled to get fifty (in some cases one
third) per cent of time saved at time rate in addition to normal time wages.
 Rowan plan: It assures minimum time wages. Bonus is paid on the basis of time
saved. But unlike a fixed percentage, it is calculated thus
Bonus = Time saved/Standard time X Time taken X hourly rate

 Gantt task and bonus plan: Here time wages are guaranteed. Standard time for each
task is fixed. Workers, who fail to finish the job within the time limits, get time
wages. A worker who reaches the standard is paid time wage plus bonus at a fixed
percentage (20 per cent)of normal time wages. If a worker exceeds the standards, he
is paid a high piece rate.
 Bedeaux plan: In this plan every operation is expressed in terms of standard minutes
called as “B's” representing one minute. A worker gets time wages for 100 %
performance; ie, finishing the job exactly as per standards set. If actual performance
exceeds the standard performance in terms of B's then 75% of the wages of time
saved is paid to worker as bonus and 25% is given to the foreman.
 Haynes manit plan: It is more or less like the bedeaux plan. Here the bonus is only
50 per cent as against 75 per cent, being paid to the efficient worker. Of the remaining
50 per cent, 10% goes to the foreman and the rest to management.
 Emerson's efficiency plan: If the worker achieves 67% efficiency, he gets bonus at a
given rate. The rate of bonus increases gradually from 67% to 100%. Above 100%
bonus will be at 20% of the basic rate plus 1% for each increase in efficiency.
 Accelerate premium bonus plan: Here the premium is paid at varying rates for
increasing efficiency.

Group or Team Based Incentive Plans

Here all team members receive an incentive bonus payment when production or service
standards are met or exceeded. Methods in this category include Preistman’s production
bonus, Rucker plan, Scanlon plan, Towne plan and Co partnership. Under co partnership, the
worker gets his usual wages, a share in the profits of the company and a share in the
management of the company as well.

Organisation Wide Incentive Plans

These plans reward employees on the basis of the success of the organisation over a specified
time period.

 Profit sharing: Here the organisation agrees to pay a particular portion of net profits
(given in cash or in the form of shares) to eligible employees.
 Gain sharing: It is based on a mathematical formula that compares a baseline of
performance with actual productivity during a given period. When productivity
exceeds the base line an agreed upon savings is shared with employees. Unlike profit
sharing plans which have deferred payments, gain sharing plans are current
distribution plans. These are based on individual performance and are distributed on
a monthly or quarterly basis.
 Employee stock ownership plan: It provides a mechanism through which certain
eligible employees (based on length of service, contribution to the department etc)
may purchase the stock of the company at a reduced rate.

Incentive Schemes For Indirect Workers

Since Indirect workers also play a key role in manufacturing operations, their contributions
need to be recognised and rewarded appropriately. The list of beneficiaries here would
include repairs and maintenance staff, store staff, material handling staff, office staff etc.
Such schemes, however, must be based on some agreed criteria aimed at improving the
overall efficiency of the organisation over a period of time.

Merit Pay

Any salary increase awarded to an employee based on his or her performance is called merit
pay. It is like rewarding the best performers with the largest increases in pay as an
appreciative gesture from the employer. When high achievers are rewarded, they set the
benchmarks for others to follow. But the whole process of recognising merit, measuring
performance, picking up the winners need to be followed objectively.

Fringe Benefits

These are extra benefits provided to employees in addition to the normal compensation paid
in the form of wages or salaries.

Features

 Supplementary forms of compensation

 Paid to all employees
 Indirect compensation, since they are not directly related to performance
 May be statutory or voluntary

Need for fringe benefits

 Employee demands
 Trade union demands
 Employer's preference
 A kind of social security
 To improve industrial relations

Employee satisfaction:

Employee satisfaction, also known as job satisfaction, is the extent to which an individual is
happy with their job and the role it plays in their life.

Job satisfaction is defined as the extent to which an employee feels self-motivated, content &
satisfied with his/her job. Job satisfaction happens when an employee feels he or she is
having job stability, career growth and a comfortable work life balance. This implies that the
employee is having satisfaction at job as the work meets the expectations of the individual.
Importance of Job Satisfaction

A satisfied employee is always important for an organization as he/she aims to deliver the
best of their capability. Every employee wants a strong career growth and work life balance
at workplace. If an employee feels happy with their company & work, they look to give back
to the company with all their efforts. Importance of job satisfaction can be seen from two
perspectives i.e. from employee and employer perspective:

For Employees: Job satisfaction from an employee perspective is to earn a good gross salary,
have job stability, have a steady career growth, get rewards & recognition and constantly
have new opportunities.

For Employers: For an employer, job satisfaction for an employee is an important aspect to
get the best out of them. A satisfied employee always contributes more to the company, helps
control attrition & helps the company grow. Employers needs to ensure a good job
description to attract employees and constantly give opportunities to individuals to learn and
grow.

The positive effects of job satisfaction include:

1. More efficiency of employees of workplace if they are satisfied with their job.

2. Higher employee loyalty leading to more commitment.

3. Job satisfaction of employees eventually results in higher profits for companies.

4. High employee retention is possible if employees are happy.

Job Satisfaction Factors:

Job satisfaction is related to the psychology of an employee. A happy & content employee at
a job is always motivated to contribute more. On the other hand, a dissatisfied employee is
lethargic, makes mistakes & becomes a burden to the company. The elements & factors
which contribute to job satisfaction are:

1. Compensation & Working conditions: One of the biggest factors of job satisfaction are
the compensation and benefits given to an employee. An employee with a good salary,
incentives, bonuses, healthcare options etc is happier with their job as compared to someone
who doesn’t have the same. A healthy workplace environment also adds value to an
employee.
2. Work life balance: Every individual wants to have a good workplace which allow them
time to spend with their family & friends. Job satisfaction for employees is often due a good
work life balance policy, which ensures that an employee spends quality time with their
family along with doing their work. This improves the employee's quality of work life. 

3. Respect & Recognition: Any individual appreciates and feels motivated if they are
respected at their workplace. Also, if they are awarded for their hard work, it further
motivates employees. Hence recognition is one of the job satisfaction factors.

4. Job security: If an employee is assured that the company would retain them even if the
market is turbulent, it gives them immense confidence. Job security is one of the main
reasons for job satisfaction for employees.

5. Challenges: Monotonous work activities can lead to dissatisfied employees. Hence, things

like job rotation, job enrichment etc can help in job satisfaction of employees as well.

6. Career Growth: Employees always keep their career growth part as a high priority in their
life. Hence, if a company helps groom employees and gives them newer job roles, it enhances
the job satisfaction as they know they would get a boost in their career.

There are several theories given which help in evaluating & measuring job satisfaction of
employees at workplace. Some of them are:
- Hierarchy of Needs by Maslow

- Hygiene Theory by Herzberg

These help in understanding the parameters or factors which influence job satisfaction of
employees at workplace.

Job Satisfaction Examples

There can be several examples of job satisfaction as it is related to the psychology of an

individual. A particular job can be satisfying for one employee based on the salary, location,
workplace, responsibilities, job level etc and the same be lead to dissatisfaction to some
another employee. Consider an employee who has joined an organization 1 year back and has
been awarded for his good work with bonuses and incentives. Also, the company has chosen
him for an exclusive training program which would help in boosting his career. Also, the
employee is entitled for a sabbatical leave as well to pursue his own dream. Hence, all these
factors and HR policies would lead to job satisfaction.

Measuring Job Satisfaction

It is critical for any company to measure job satisfaction as the efficiency, productivity and
loyalty of an employee depends on it. Companies can conduct surveys with questionnaires
asking the employees about their feedback and understand if they are satisfied or dissatisfied
with their job. Companies can ask the following questions to measure job satisfaction and can
give multiple options like Satisfied, somewhat satisfied, neutral, somewhat dissatisfied,
dissatisfied:

1. Are you happy with your salary/incentives?

2. Is your contribution to the company recognized with awards?

3. Do you find your workplace conditions good, hygienic, competitive?

4. Do you have a good work life balance?

5. Are you happy with company policies for your career growth & training and development?
Apart from the above questions, specific open-ended questions about job satisfaction can also
help in understanding employee pain-points and how the company can improve to ensure a
happy employee.

MOTIVATION

Motivation is the set of reasons that determines one to engage in a particular behavior. The
term is generally used for human motivation but, theoretically, it can be used to describe the
causes for animal behavior as well. This article refers to human motivation. According to
various theories, motivation may be rooted in the basic need to minimize physical pain and
maximize pleasure, or it may include specific needs such as eating and resting, or a desired
object, hobby, goal, state of being, ideal, or it may be attributed to less-apparent reasons such
as altruism, morality, or avoiding mortality.

Motivational concepts

The Incentive Theory of Motivation

A reward, tangible or intangible, is presented after the occurrence of an action (i.e. behavior)
with the intent to cause the behavior to occur again. This is done by associating positive
meaning to the behavior. Studies show that if the person receives the reward immediately, the
effect would be greater, and decreases as duration lengthens. Repetitive action-reward
combination can cause the action to become habit. Motivation comes from two things: you,
and other people. There is extrinsic motivation, which comes from others, and intrinsic
motivation, which comes from within you.

Some authors distinguish between two forms of intrinsic motivation: one based on
enjoyment, the other on obligation. In this context, obligation refers to motivation based on
what an individual thinks ought to be done. For instance, a feeling of responsibility for a
mission may lead to helping others beyond what is easily observable, rewarded, or fun.
A reinforcer is different from reward, in that reinforcement is intended to create a measured
increase in the rate of a desirable behavior following the addition of something to the
environment.

Intrinsic and extrinsic motivation

Intrinsic motivation

Intrinsic motivation occurs when people engage in an activity, such as a hobby, without
obvious external incentives. This form of motivation has been studied by social and
educational psychologists since the early 1970s. Research has found that it is usually
associated with high educational achievement and enjoyment by students. Intrinsic
motivation has been explained by Fritz Heider's attribution theory, Bandura's work on self-
efficacy, and Ryan and Deci's cognitive evaluation theory. Students are likely to be
intrinsically motivated if they:

 attribute their educational results to internal factors that they can control (e.g. the
amount of effort they put in),
 believe they can be effective agents in reaching desired goals (i.e. the results are not
determined by luck),
 are interested in mastering a topic, rather than just rote-learning to achieve good
grades.

In knowledge-sharing communities and organizations, people often cite altruistic reasons for
their participation, including contributing to a common good, a moral obligation to the group,
mentorship or 'giving back'. In work environments, money may provide a more powerful
extrinsic factor than the intrinsic motivation provided by an enjoyable workplace.

In terms of sports, intrinsic motivation is the motivation that comes from inside the
performer. That is, the athlete competes for the love of the sport.

Extrinsic motivation
Extrinsic motivation comes from outside of the performer. Money is the most obvious
example, but coercion and threat of punishment are also common extrinsic motivations.
In sports, the crowd may cheer the performer on, and this motivates him or her to do well.
Trophies are also extrinsic incentives. Competition is often extrinsic because it encourages
the performer to win and beat others, not to enjoy the intrinsic rewards of the activity.

Social psychological research has indicated that extrinsic rewards can lead to over
justification and a subsequent reduction in intrinsic motivation.

Self-control
The self-control of motivation is increasingly understood as a subset of emotional
intelligence; a person may be highly intelligent according to a more conservative definition
(as measured by many intelligence tests), yet unmotivated to dedicate this intelligence to
certain tasks. Yale School of Management professor Victor Vroom's "expectancy theory"
provides an account of when people will decide whether to exert self control to pursue a
particular goal.

Drives and desires can be described as a deficiency or need that activates behaviour that is
aimed at a goal or an incentive. These are thought to originate within the individual and may
not require external stimuli to encourage the behaviour. Basic drives could be sparked by
deficiencies such as hunger, which motivates a person to seek food; whereas more subtle
drives might be the desire for praise and approval, which motivates a person to behave in a
manner pleasing to others.

By contrast, the role of extrinsic rewards and stimuli can be seen in the example of training
animals by giving them treats when they perform a trick correctly. The treat motivates the
animals to perform the trick consistently, even later when the treat is removed from the
process.

Motivational Theories
Drive Reduction Theories
There are a number of drive theories. The Drive Reduction Theory grows out of the concept
that we have certain biological needs, such as hunger. As time passes the strength of the drive
increases as it is not satisfied. Then as we satisfy that drive by fulfilling its desire, such as
eating, the drive's strength is reduced. It is based on the theories of Freud and the idea of
feedback control systems, such as a thermostat.
There are several problems, however, that leave the validity of the Drive Reduction Theory
open for debate. The first problem is that it does not explain how Secondary Reinforcers
reduce drive. For example, money does not satisfy any biological or psychological need but
reduces drive on a regular basis through a pay check second-order conditioning. Secondly, if
the drive reduction theory held true we would not be able to explain how a hungry human
being can prepare a meal without eating the food before they finished cooking it.

However, when comparing this to a real life situation such as preparing food, one does get
hungrier as the food is being made (drive increases), and after the food has been consumed
the drive decreases. The only reason the food does not get eaten before is the human element
of restraint and has nothing to do with drive theory. Also, the food will either be nicer after it
is cooked, or it won't be edible at all before it is cooked.

Cognitive dissonance theory

Suggested by Leon Festinger, this occurs when an individual experiences some degree of
discomfort resulting from an incompatibility between two cognitions. For example, a
consumer may seek to reassure himself regarding a purchase, feeling, in retrospect, that
another decision may have been preferable.

Another example of cognitive dissonance is when a belief and a behavior are in conflict. A
person may wish to be healthy, believes smoking is bad for one's health, and yet continues to
smoke.

Affective-Arousal Theories
Need Achievement Theory
David McClelland’s achievement motivation theory envisions that a person has a need for
three things, but differs in degrees to which the various needs influence their behavior: Need
for achievement, Need for power, and Need for affiliation.

Interests Theory
Holland Codes are used in the assessment of interests as in Vocational Preference Inventory
(VPI; Holland, 1985). One way to look at interests is that if a person has a strong interest in
one of the six Holland areas, then obtaining outcomes in that area will be strongly reinforcing
relative to obtaining outcomes in areas of weak interest.
Need Theories
Need Hierarchy Theory
Abraham Maslow's hierarchy of human needs theory is the one of the most widely discussed
theories of motivation.
The theory can be summarized as follows:
 Human beings have wants and desires which influence their behavior. Only
unsatisfied needs influence behavior, satisfied needs do not.
 Since needs are many, they are arranged in order of importance, from the basic to the
complex.
 The person advances to the next level of needs only after the lower level need is at
least minimally satisfied.
 The further the progress up the hierarchy, the more individuality, humanness and
psychological health a person will show.

The needs, listed from basic (lowest, earliest) to most complex (highest, latest) are as follows:
 Physiological
 Safety
 Belongingness
 Esteem
 Self actualization

Herzberg’s two-factor theory

Frederick Herzberg's two-factor theory, aka intrinsic/extrinsic motivation, concludes that
certain factors in the workplace result in job satisfaction, but if absent, lead to dissatisfaction.
He distinguished between:
 Motivators; (e.g. challenging work, recognition, responsibility) which give positive
satisfaction, and
 Hygiene factors; (e.g. status, job security, salary and fringe benefits) that do not
motivate if present, but, if absent, result in demotivation.

The name Hygiene factors is used because, like hygiene, the presence will not make you
healthier, but absence can cause health deterioration.
The theory is sometimes called the "Motivator-Hygiene Theory."

Alderfer’s ERG theory

Clayton Alderfer, expanding on Maslow's hierarchy of needs, created the ERG theory
(existence, relatedness and growth). Physiological and safety, the lower order needs, are
placed in the existence category, while love and self esteem needs are placed in the
relatedness category. The growth category contains our self-actualization and self-esteem
needs.

Self-determination theory
Self-determination theory, developed by Edward Deci and Richard Ryan, focuses on the
importance of intrinsic motivation in driving human behavior. Like Maslow's hierarchical
theory and others that built on it, SDT posits a natural tendency toward growth and
development. Unlike these other theories, however, SDT does not include any sort of
"autopilot" for achievement, but instead requires active encouragement from the
environment. The primary factors that encourage motivation and development are autonomy,
competence feedback, and relatedness.

Broad Theories
The latest approach in Achievement Motivation is an integrative perspective as lined out in
the "Onion-Ring-Model of Achievement Motivation" by Heinz Schuler, George C. Thornton
III, Andreas Frintrup and Rose Mueller-Hanson. It is based on the premise that performance
motivation results from way broad components of personality are directed towards
performance. As a result, it includes a range of dimensions that are relevant to success at
work but which are not conventionally regarded as being part of performance motivation.
Especially it integrates formerly separated approaches as Need for Achievement with e.g.
social motives like Dominance. The Achievement Motivation Inventory AMI (Schuler,
Thornton, Frintrup & Mueller-Hanson, 2003) is based on this theory and assesses three
factors (17 separated scales) relevant to vocational and professional success.

Cognitive theories
Goal-setting theory
Goal-setting theory is based on the notion that in
+dividuals sometimes have a drive to reach a clearly defined end state. Often, this end state is
a reward in itself. A goal's efficiency is affected by three features: proximity, difficulty and
specificity. An ideal goal should present a situation where the time between the initiation of
behavior and the end state is close. This explains why some children are more motivated to
learn how to ride a bike than mastering algebra. A goal should be moderate, not too hard or
too easy to complete. In both cases, most people are not optimally motivated, as many want a
challenge (which assumes some kind of insecurity of success). At the same time people want
to feel that there is a substantial probability that they will succeed. Specificity concerns the
description of the goal in their class. The goal should be objectively defined and intelligible
for the individual. A classic example of a poorly specified goal is to get the highest possible
grade. Most children have no idea how much effort they need to reach that goal.

Douglas Vermeeren, has done extensive research into why many people fail to get to their
goals. The failure is directly attributed to motivating factors. Vermeeren states that unless an
individual can clearly identify their motivating factor or their significant and meaningful
reasons why they wish to attain the goal, they will never have the power to attain it.

Unconscious motivation
Some psychologists believe that a significant portion of human behavior is energized and
directed by unconscious motives. According to Maslow, "Psychoanalysis has often
demonstrated that the relationship between a conscious desire and the ultimate unconscious
aim that underlies it need not be at all direct." In other words, stated motives do not always
match those inferred by skilled observers. For example, it is possible that a person can be
accident-prone because he has an unconscious desire to hurt himself and not because he is
careless or ignorant of the safety rules. Similarly, some overweight people are not hungry at
all for food but for attention and love. Eating is merely a defensive reaction to lack of
attention. Some workers damage more equipment than others do because they harbor
unconscious feelings of aggression toward authority figures.

Psychotherapists point out that some behavior is so automatic that the reasons for it are not
available in the individual's conscious mind. Compulsive cigarette smoking is an example.
Sometimes maintaining self-esteem is so important and the motive for an activity is so
threatening that it is simply not recognized and, in fact, may be disguised or repressed.
Rationalization, or "explaining away", is one such disguise, or defense mechanism, as it is
called. Another is projecting or attributing one's own faults to others. "I feel I am to blame",
becomes "It is her fault; she is selfish". Repression of powerful but socially unacceptable
motives may result in outward behavior that is the opposite of the repressed tendencies. An
example of this would be the employee who hates his boss but overworks himself on the job
to show that he holds him in high regard.

Unconscious motives add to the hazards of interpreting human behavior and, to the extent
that they are present, complicate the life of the administrator. On the other hand, knowledge
that unconscious motives exist can lead to a more careful assessment of behavioral problems.
Although few contemporary psychologists deny the existence of unconscious factors, many
do believe that these are activated only in times of anxiety and stress, and that in the ordinary
course of events, human behavior from the subject's point of view is rationally purposeful.

Controlling motivation
The control of motivation is only understood to a limited extent. There are many different
approaches of motivation training, but many of these are considered pseudoscientific by
critics. To understand how to control motivation it is first necessary to understand why many
people lack motivation.

Early programming
Modern imaging has provided solid empirical support for the psychological theory that
emotional programming is largely defined in childhood. Harold Chugani, Medical Director of
the PET Clinic at the Children's Hospital of Michigan and professor of pediatrics, neurology
and radiology at Wayne State University School of Medicine, has found that children's brains
are much more capable of consuming new information (linked to emotions) than those of
adults. Brain activity in cortical regions is about twice as high in children as in adults from
the third to the ninth year of life. After that period, it declines constantly to the low levels of
adulthood. Brain volume, on the other hand, is already at about 95% of adult levels in the
ninth year of life.

Organization:
Besides the very direct approaches to motivation, beginning in early life, there are solutions
which are more abstract but perhaps nevertheless more practical for self-motivation. Virtually
every motivation guidebook includes at least one chapter about the proper organization of
one's tasks and goals. It is usually suggested that it is critical to maintain a list of tasks, with a
distinction between those which are completed and those which are not, thereby moving
some of the required motivation for their completion from the tasks themselves into a "meta-
task", namely the processing of the tasks in the task list, which can become a routine. The
viewing of the list of completed tasks may also be considered motivating, as it can create a
satisfying sense of accomplishment.

Most electronic to-do lists have this basic functionality, although the distinction between
completed and non-completed tasks is not always clear (completed tasks are sometimes
simply deleted, instead of kept in a separate list).

Other forms of information organization may also be motivational, such as the use of mind
maps to organize one's ideas, and thereby "train" the neural network that is the human brain
to focus on the given task. Simpler forms of idea notation such as simple bullet-point style
lists may also be sufficient, or even more useful to less visually oriented persons.

Drugs:
Some authors, especially in the transhumanist movement, have suggested the use of "smart
drugs", also known as nootropics, as "motivation-enhancers". The effects of many of these
drugs on the brain are emphatically not well understood, and their legal status often makes
open experimentation difficult.

Converging neurobiological evidence also supports the idea that addictive drugs such as
cocaine, nicotine, alcohol, and heroin act on brain systems underlying motivation for natural
rewards, such as the mesolimbic dopamine system. Normally, these brain systems serve to
guide us toward fitness-enhancing rewards (food, water, sex, etc.), but they can be co-opted
by repeated use of drugs of abuse, causing addicts to excessively pursue drug rewards.
Therefore, drugs can hijack brain systems underlying other motivations, causing the almost
singular pursuit of drugs characteristic of addiction.

Applications
Education
Motivation is of particular interest to Educational psychologists because of the crucial role it
plays in student learning. However, the specific kind of motivation that is studied in the
specialized setting of education differs qualitatively from the more general forms of
motivation studied by psychologists in other fields.
Motivation in education can have several effects on how students learn and how they behave
towards subject matter. It can:
1. Direct behavior toward particular goals
2. Lead to increased effort and energy
3. Increase initiation of, and persistence in, activities
4. Enhance cognitive processing
5. Determine what consequences are reinforcing
6. Lead to improved performance.

Because students are not always internally motivated, they sometimes need situated
motivation, which is found in environmental conditions that the teacher creates.

There are two kinds of motivation:

 Intrinsic motivation occurs when people are internally motivated to do something
because it either brings them pleasure, they think it is important, or they feel that what
they are learning is significant.
 Extrinsic motivation comes into play when a student is compelled to do something or
act a certain way because of factors external to him or her (like money or good
grades).

Note also that there is already questioning and expansion about this dichotomy on motivation,
e.g., Self-Determination Theory.

Motivation has been found to be a pivotal area in treating Autism Spectrum Disorders, as in
Pivotal Response Therapy.

Motivation is also an important element in the concept of Andragogy (what motivates the
adult learner).

Business
At lower levels of Maslow's hierarchy of needs, such as Physiological needs, money is a
motivator, however it tends to have a motivating effect on staff that lasts only for a short
period (in accordance with Herzberg's two-factor model of motivation). At higher levels of
the hierarchy, praise, respect, recognition, empowerment and a sense of belonging are far
more powerful motivators than money, as both Abraham Maslow's theory of motivation and
Douglas McGregor's Theory X and theory Y (pertaining to the theory of leadership)
demonstrate.

Maslow has money at the lowest level of the hierarchy and shows other needs are better
motivators to staff. McGregor places money in his Theory X category and feels it is a poor
motivator. Praise and recognition are placed in the Theory Y category and are considered
stronger motivators than money.

 Motivated employees always look for better ways to do a job.

 Motivated employees are more quality oriented.
 Motivated workers are more productive.

The average workplace is about midway between the extremes of high threat and high
opportunity. Motivation by threat is a dead-end strategy, and naturally staff are more attracted
to the opportunity side of the motivation curve than the threat side. Motivation is a powerful
tool in the work environment that can lead to employees working at their most efficient levels
of production.

The assumptions of Maslow and Herzberg were challenged by a classic study at Vauxhall
Motors' UK manufacturing plant. This introduced the concept of orientation to work and
distinguished three main orientations: instrumental (where work is a means to an end),
bureaucratic (where work is a source of status, security and immediate reward) and
solidaristic (which prioritizes group loyalty).

Other theories which expanded and extended those of Maslow and Herzberg included Kurt
Lewin's Force Field Theory, Edwin Locke's Goal Theory and Victor Vroom's Expectancy
theory. These tend to stress cultural differences and the fact that individuals tend to be
motivated by different factors at different times.

According to the system of scientific management developed by Frederick Winslow Taylor, a

worker's motivation is solely determined by pay, and therefore management need not
consider psychological or social aspects of work. In essence, scientific management bases
human motivation wholly on extrinsic rewards and discards the idea of intrinsic rewards.
In contrast, David McClelland believed that workers could not be motivated by the mere need
for money in fact, extrinsic motivation (e.g., money) could extinguish intrinsic motivation
such as achievement motivation, though money could be used as an indicator of success for
various motives, e.g., keeping score. In keeping with this view, his consulting firm, McBer &
Company, had as its first motto "To make everyone productive, happy, and free." For
McClelland, satisfaction lay in aligning a person's life with their fundamental motivations.

Elton Mayo found out that the social contacts a worker has at the workplace are very
important and that boredom and repetitiveness of tasks lead to reduced motivation. Mayo
believed that workers could be motivated by acknowledging their social needs and making
them feel important. As a result, employees were given freedom to make decisions on the job
and greater attention was paid to informal work groups. Mayo named the model the
Hawthorne effect. His model has been judged as placing undue reliance on social contacts at
work situations for motivating employees.