Motivation

CHAPTER 1. Motivation - An Introduction 1.0. Defining Motivation. According to Steers et al (1996), the term motivation was originally derived from the Latin word, movere, which means to move. However this definition does not sufficed here. Better definitions are as below: ..the contemporary (immediate) influence on the direction, vigor, and persistence of action (Atkinson, 1964) .how behavior gets started, is energized, is sustained, is directed, is stopped, and what kind of subjective reaction is present in the organism while all this is going on (Jones, 1955) .a process governing choice made by persons or lower organisms among alternative forms of voluntary activity (Vroom, 1964)
Motivation is a process that starts with a physiological or psychological need that activates a behavior or a drive that is aimed at a goal. Every employee is expected to show increased and qualitative productivity by the manager. To achieve this, the behavior of the employee is very important. The behavior of the employees is influenced by the environment in which they find themselves. Finally, an employee's behavior will be a function of that employee's innate drives or felt needs and the opportunities he or she has to satisfy those drives or needs in the workplace

Motivation

Figure 1. Source: From <http://managementconsultingcourses.com/Lesson20Motivation&ItsTheories.pdf>

If employees are never given opportunities to utilize all of their skills, then the employer may never have the benefit of their total performance. Work performance is also contingent upon employee abilities. If employees lack the learned skills or innate talents to do a particular job, then performance will be less than optimal. A third dimension of performance is motivation.

Figure 1.1.

Motivation
Source: From <http://managementconsultingcourses.com/Lesson20Motivation&ItsTheories.pdf

The following are the features of motivation: - Motivation is an act of managers Motivation is a continuous process Motivation can be positive or negative Motivation is goal oriented Motivation is complex in nature Motivation is an art Motivation is system-oriented Motivation is different from job satisfaction

1.1. The importance and need of motivation. It is often said that the best businesses have the best motivated workers. Better quality work with less wastage Faster and quicker decisions making and work.

More employee feedback and suggestions made for improvements

Higher efficiency and productivity Reduce absenteeism and turnover Good relations Reduce wastages and breakages Reduced accidents. Better corporate image Facilitates innovation and initiative 1.2. Money and Motivation. Based on traditional model of Motivation (which will be more developed in Section 2.3 of Chapter 2), man was being viewed as an economic animal. The classical motivation theory views man as a rational economic animal, that will work if

Motivation
either threatened by punishment or encouraged by incentives such as better pay which are known as monetary factors.

1.2.1. Monetary Factors Salaries or wages Salaries or wages is one of the most important motivational factors. Reasonable salaries must be paid on time. While fixing salaries the organization must consider factors such as: Cost of living Company ability to pay Capability of company to pay etc,

Bonus It refers to extra payment to employee over and above salary given as an incentive. The employees must be given adequate rate of bonus. Incentives The organization may also provide additional incentives such as medical allowance, educational allowance etc. Special Individual Incentives. The company may provide special individual incentives. Such incentives are to be given to deserving employees for giving valuable suggestions. The question of money as a motivator in the workplace is not new. Years of research, and countless books and articles on motivation include references to money. However, much of the focus on money and motivation points to superficial needs of people or points toward the immediate gratification that money seems to bring. The inquiry around money as a motivator must be explored more deeply if one is to truly understand the nature of the so called relationship between money and motivation.

Motivation
There are a number of personal orientations relating to money and motivation. Some of these are: i. I'm not making as much money as I'd like (the "starving artist" concept), but I absolutely love my work, or the flexibility, or the control I have, or the opportunity for creativity, etc. ii. I need to be in this salary range, make this much money, because I need to be seen as "somebody" as opposed to "nobody" in my circle of friends, acquaintances, family, etc. who view "money" as a merit badge of some kind. iii. It's not the money, per se, but what the money "gets" me....i.e., possessions, stuff, materialism, etc., pointing again, for some, to "being somebody" and being recognized, and gaining self-recognition, based on their material stuff. Hence there are different views towards the concept of money being a motivating factor. Organizations spend a lot of time, effort and money in designing and implementing the right performance management schemes and incentive schemes to motivate their employees. However, are monetary rewards and incentive systems a panacea for all motivational issues? How far these factors are true concerning the motivation of employees at work? Are employees more motivated by the monetary factors or there must be some non- monetary factors which are important in driving employees to work better and be more productive? In this line many theories and researches have been done to determine what really motivates employees. These are developed more in depth in Chapter 2.

Motivation

CHAPTER 2. Motivators and Motivation Models.

2.0

Introduction - A deeper understanding of Motivation Many methods of employee motivation have been developed over the years. The study of employee work motivation has focused on how to motivate the employee as well as the manager. Motivation theories are important to supervisors attempting to be effective leaders, in gaining loyalty and productivity from worker. Motivation has two primary approaches: content and process. Words like: needs, goals, values, culture, management and incentives are all related to motive or motivation. (Mathis & Jackson, 1991) According to T.Jordan (2000), motivating employees is a management and leadership issue, often linked to policies, procedures, as well as the structure and cultures of an organization. Motivation is the art of getting things done in a manner that meets or surpasses expected standards of performance. It is defined as "an emotion or desire within a person causing a person to act." In essence, people typically act in order to achieve a goal. No organization can achieve anything without people (Drucker, 1999). An Organization is, after all, a body of persons arranged for a specific purpose. Because Management is the efficient and effective utilization of resources, we must think of personnel as the Human Resource - thus, HUMAN RESOURCES MANAGEMENT. Management is about human beings. Its task is to make people capable of joint performance, to make their strengths effective and their weaknesses irrelevant. This is what organization is all about, and it is the reason that management is the critical, determining factor. The single most important thing to remember about any enterprise is that results exist only on the outside. The result of a business is a satisfied

Motivation
customer. The result of a hospital is a healed patient. The result of a school is a student who has learned something and puts it to work ten years later. Inside an enterprise, there are only costs." (Drucker, 1996) According to T.Jordan (2000), since motivation influences productivity, supervisors need to understand what motivates employees to reach peak performance. It is not an easy task to increase employee motivation because employees respond in different ways to their jobs and their organization's practices. Motivation is the set of processes that moves a person toward a goal. Thus, motivated behaviors are voluntary choices controlled by the individual employee. The supervisor (motivator) wants to influence the factors that motivate employees to higher levels of productivity. Factors that affect work motivation include individual differences, job characteristics, and organizational practices. Individual differences are the personal needs/wants, values, and attitudes, interests and abilities that people bring to their jobs. Job characteristics are the aspects of the position that determine its limitations and challenges. Organizational practices are the rules, human resources policies, managerial practices, and rewards systems of an organization. Supervisors must consider how these factors interact to affect employee job performance. In the Characteristic Model of Motivation, a job has core dimensions such as skill variety, task identity, autonomy, and feedback. To the extent that these are present in a job, the employee will experience certain psychological states such as experiencing meaningfulness in the work and assume responsibility for outcomes as well as have better knowledge of the actual results of work activities. The more frequent and satisfying these psychological states are, the higher the internal motivation, the better quality the performance, the greater the satisfaction, and the lower the absenteeism and turnover. (Griffin, 1999). This influences performance, affects job satisfaction and affects both physical and mental health. Who a person is" and what a person is depend on, and reflects the kind of work a person does. Accepting a job is the crucial factor in integrating the individual into society. It also provides a definition of self that corresponds to their place in society." (Henderson, 1982). Workers seek guidance, counseling and direction from management to accomplish tasks and to enhance the quality of life.

Motivation
2.1 The Self- Fulfilling Prophecy According to T.Jordan (2000), the concept of self-fulfilling prophecy can be summarized as this: we form certain expectations of people and communicate those experiences. People tend to respond by adjusting behaviors to match, creating a circle of self-fulfilling prophecies. We tend to be comfortable with people who meet our expectations, whether high or low, and uncomfortable with people who do not. Once formed, expectations about us tend to be self-fulfilling (Hurley, 1997; Gautshi, 1998; Madon, et al 1997). The purpose of behavior is to satisfy needs. A need is anything that is required, desired, or useful. A want is a conscious recognition of a need. A need arises when there is a difference in self-concept (the way I see myself) and perception (the way I see the world around me). The presence of an active need is expressed as an inner state of tension from which the individual seeks relief (Griffin, 1999). 2.2 Addressing the issue of Motivation Management has two crucial decisions to get off the turnover merry-go-round. First, define as priority one, to create a culture promoting employee loyalty. Second, hire the people that blend with the required performance needs and values (Coker and Wolf, 1999). Managers first need a clear understanding of the employees ability to achieve success in the job and within that culture. Second, people with the right behavioral style, attitudes consistent with the culture, and motivation needed to thrive in the job and environment are more likely to get up to full-speed quicker, learn and be challenged, stay longer, make fewer errors, more dependable, reliable, make better team players, and in short, provide a much better return on your payroll and training investment. How an employee will perform the job is only a part of the picture. Another marvelous tool is The Personal Interests, Attitudes, and Values Assessment, which answers: "What will motivate an employee to do the job" and "can your work environment as well as the managers satisfy the stimulus and rewards needed for these motivations?" Organizations can certify a human resource or management professional to interpret assign results by benchmarking employees in: behavioral

Motivation
assessments, values and attitudes assessment, and motivational questionnaires (Coker et al, 1999).

2.3 The Motivational Models. According to Steers et al, 1996, there are three different models of motivation which have been developed which are:a) Traditional Model b) Human Relation Model c) Human Resources model 2.3.1. Traditional Model This model is best represented by the writings of Frederick W. Taylor (1911), and his associates in the scientific management school. Taylor saw the problem of inefficient production as a problem of management, not workers. It was managements responsibility to find suitable people for a job and then to train them in the most efficient methods for their work. The workers having been thus well trained, managements next responsibility was to install a wage incentive system whereby workers could maximize their income by doing exactly what management told them to do and doing it as rapidly as possible. Workers were viewed as being typically lazy, often dishonest, aimless, dull, and most of all, mercenary. To get them into the factories and to keep them there, an organization had to pay a decent wage. (Steers et al, 1996) The traditional model is often known as the classical management theory. Hence from his observations, man is a rational economic animal concerned with maximizing his economic gain. People respond as individuals, not as groups and can be treated in a standardized fashion like machine. 2.3.2. Human Relation Model

Motivation
The new assumptions brought by this model concerning the best method of motivating workers was characterized by a strong social emphasis. It was argued here that management had a responsibility to make employees feel useful and important on the job, to provide recognition and generally to facilitate the satisfaction of workers social needs. The attention was more towards a thorough understanding of interpersonal and group relations at work. (Steers et al, 1996) The human relations movement is often called the behavioral management theory. One famous study which argues that it was necessary to consider the whole person on the job is that of Elton Mayo. Elton Mayos contributions came as part of the Hawthorne studies, a series of experiments that rigorously applied the classical management theory only to reveal its shortcomings. They set out to investigate how changing light and working conditions would affect productivity. His results proved that greater communications and improved relations lead to increased productivity and they:Showed the importance of recognition, belonging and security That work is a group activity and workers belong to a group Social needs in the workplace must be recognized Communication is vital and understanding of the informal needs of the workers. 2.3.3. Human Resources Model In recent years the assumptions of the human relations model have been widely challenged not only as an oversimplified and incomplete statement of human behavior at work, but also for being as manipulative as the traditional model. In response to the criticism, a different approach was proposed under various titles which include McGregor theory Y. Human resource models generally view humans as being motivated by a complex set on interrelated factors (such as money, need for affiliation, need for achievement, and desire for

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Motivation
meaningful work). It is assumed that different employees often seek for achievement quite different goals in a job and have a diversity of talents to offer. Under this conceptualization, employees are regarded as reservoirs of potential talent, and managements responsibility is to learn how best to tap these approaches. (Steers et al, 1996) The table at Appendix 1 shows the clear differences between the three models

CHAPTER 3. The Motivational Theories. 3.0 Introduction According to Steers et al (1996), a survey of organization studies literature indicates that the extant theories may be grouped into two general classes: the content theories and process theories. 3.1 The Content theories The content theories of work motivation assume that factors exist within the individual that energize, direct and sustain behavior. 3.1.1 Abraham Maslow- Hierarchy of Needs. Abraham Maslow who developed the theory of a Hierarchy of Needs, believed that the basic needs must be satisfied before higher needs are satisfied. Once all the steps are met (physiological, safety, belongingness and love, esteem and finally self-actualizing) an individual would then become Self Actualizing (Burger, 1997; Schultz & Schultz, 1994). In Maslows Hierarchy of Needs, money and benefits are associated with the lower order needs and it is the higher order needs Self-esteem and Self-actualization that are related to Herzbergs motivators. Thus, it is seen that money in and of itself, is not a motivator; yet most managers probably think of it as the primary motivator. And, it is fair to say that so long as employees find themselves at the lower levels of Maslows Hierarchy, money will appear to motivate because it pays for the satisfaction of physiological and security needs. On the other hand, employees at these lower

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levels will become easily dissatisfied and, therefore, unmotivated (Griffin, 1999). First and foremost, Maslows Hierarchy of Needs classifies five basic categories of needs in ascending hierarchy. According to Maslows theory, the basic needs must first be met before an employee can ascend the pyramid to higher level needs. Maslows hierarchy of needs categories is the most famous example: These ascend the pyramid as illustrated below:

Figure 3.1. Maslows Hierarchy of needs Source: From <http://managementconsultingcourses.com/Lesson20Motivation&ItsTheories.pdf Higher Order intrinsic Self -Actualizatio n- the ability to fulfill ones potential Higher order needs

Self Esteem Self-Respect

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Motivation
Social needs -belonging

Lower order = extrinsic-pay = food etc.

Safety & Security e.g secure job Lower order needs

Figure: 3.2 Maslows Hierarchy of needs Physiological (Basic) needs are essential for survival. They consist of the necessities of life, such as food, water, and shelter. In a business context, these needs translate into a relaxed working atmosphere, and a salary that is sufficient enough to sustain life. Security needs are concerned with maintaining stability in a civil society and having protection from the fearful unknown. In an organizational context this translates into having job security and pension funds as a safety net for the future. Social needs involve love, friendship and camaraderie. Employees need to feel that they belong and that the work environment fosters friendship. Self-Esteem needs, envelops the needs for self-worth, status and recognition. Businesses can meet these needs by assigning esteemed job titles to their employees, granting a promotion when deserved, and creating incentives. Self-actualization needs involve personal growth and self-fulfillment, to develop ones capabilities; to live up to ones full potential. In other words, it means "to be all that you can be." Managers can help employees reach these needs by prescribing them challenging assignment, encouraging education to personal growth and professional development. It is important to understand that people ascend the ladder only after the previous lower need has been met. Sometimes one may be at the top of the hierarchy only to fall back down to the bottom. For example when an employee hears that the company is downsizing, he or she may shift to lower level need and become preoccupied with physiological and safety needs. Maslows theory does have its shortcoming because it lacks concrete action for within the workplace. The hierarchy of needs may also differ across

Physiological food & water shelter need to earn to survive

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cultures and individuals. Regardless though, it provides a sound structure for analyzing needs (Griffin & Ebert, 1999) Maslow described another set of human needs that do not appear in the hierarchy: the cognitive needs, or the needs to know and to understand. These needs are expressed in the need to analyze or reduce things to their basic elements, the need to experiment, to "see what will happen if I do this, and the need to explain, to construct a personal theory that will make sense of the events of one's world. Maslow suggested that these needs form their own smaller hierarchy. For example, the need to know is more important than the need to understand. The cognitive needs appear early in life and are seen in a child's natural curiosity. Failure to meet these needs (because parents and schools sometimes teach a child to inhibit this spontaneous curiosity) can inhibit the development and full functioning of the individual (Green, 2000).

Job Self Training, Advancement, growth, Actualization creativity Esteem Recognition, high status, Responsibilities Belongingness Teams, coworkers, clients, supervisors, subordinates Safety Work safety, job security, health insurance Physiological Work conditions, base salary Table 3.1. Maslows Needs According to Maslow, lower needs take priority. They must be fulfilled before the others are activated. Maslows need-hierachy theory concerning money can be concluded as follows: It proofs that money has small contribution to employee motivation (assigned to first and second level); can be satisfied with fair salary; when satisfied, intrinsic requirements are awakened like social needs, esteem and self-realization => money loses its effect as a motivation factor.

Need

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Furthermore, according to Eric Rind (2010), under Maslows Hierarchy money would be recognized within the safety category (or abase need for behavior). When a person has money he feels secure, because he has the source to survive. According to Maslow once that need is fulfilled he moves to the next level for motivation. In this case money itself is no longer a motivator because that need has been satisfied. A manager, can use this knowledge to continue to motivate his employees. If they are already satisfied with money, in that it is no longer a primary need, he should move up the pyramid. Work to build the employees confidence, respect them, and give the individual projects that drive him/her to satisfy the higher level needs. 3.1.2 Alderfers Existence- Relatedness- Growth (EGR) Theory The most popular extension and refinement of Maslows theory of needs is the one proposed by Alderfer. (Cherrington, 1989). This theory as compared to Maslow, attempted to establish conceptualization of human needs that is relevant to the organizational settings. In extending Maslows theory, Alderfer argued that the need categories could be collapsed into three general classes (Steers et al, 1996): a. Existence. - needs related to human existence and are comparable to Maslows psychological needs and certain of his safety needs. b. Relatedness. These are needs that involve interpersonal relationships in the workplace. Relatedness needs are similar to Maslows belongingness needs and certain of his safety and esteem needs. c. Growth. These are needs associated with the development of the human potential which include needs corresponding to the needs of the self esteem and self actualization needs of Maslow. Alderfer hence, agrees with Maslow that individual tends to move from existence, through relatedness, to growth needs, as needs in each category are satisfied.

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Level of need

Definition
Impel a person to make creative or productive effects on himself and his environment

Properties
Satisfied through using capabilities in engaging problems; creates a greater sense of wholeness and fullness as a human being Satisfied by mutually sharing thoughts and feelings; acceptance, confirmation, understanding, and influence are elements When divided among people one person's gain is another's loss if resources are limited

Growth

Relatedness

Involve relationships with significant others

Existence

Includes all of the various forms of material and psychological desires

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Table 3.2. Alderfer ERG Theory However, Alderfer argues that multiple needs can be operating as motivators at the same time, and frustration in attempting to satisfy a higher level need can result in regression to a lower need. Hence it can be concluded here that money alone is not a motivator to employees but instead, it forms part of the needs that need to be satisfied in order to motivate/ drive employees. Money forms part of the package of needs but money only will not motivate the individuals 3.1.3 McGregor Theory X and Theory Y According to T.Jordan( 2000) A second theory of motivation concerning the needs of employees is the Human Resource Model. This seminal work challenges the traditional "command and control" of management, to release the creativity and self-direction of the entire organization. McGregor is one of the first leadership gurus to profess a faith in the leadership abilities and effectiveness of common workers. One of his concepts was asking employees to help evaluate themselves, using well-known Theory X/Theory Y concept. McGregor sums it up in this sentence: "The distinctive potential contribution of the human being at every level of the organization stems from his capacity to think, to plan, to exercise judgment, to be creative, to direct and control his own behavior" (McGregor, 1960). In Theory X and Theory Y, McGregor divides the managers assumptions concerning employees into two different sets .Theory X say workers have little ambition, treats are necessary to motivate employees, employees avoid work because they hate it, and avoid all responsibility. Theory Y employees crave responsibility, dislike threats; work is as natural as rest, and want to satisfy their need for esteem and self-actualization. Below is a broader definition of both theories. Theory X: 17

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Theory X mangers view their employees as lazy and disobliging and thus, needing to be controlled through punishment and rewards in order for them to be productive (Pfeiffer, 1991). They are as follows: a. The average human being has an inherent dislike of work and will avoid it if he can. b. Because of this human characteristic of dislike of work, most people must be coerced, controlled, directed, and threatened with punishment to get them to put forth adequate effort toward the achievement of organizational objectives. The dislike of work is so strong that even the promise of rewards is not generally enough to overcome it. People will accept the rewards and demand continually higher ones, but these alone will not produce the necessary effort. Only the threat of punishment will do the trick. c. The average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, and wants security above all. Theory Y On the other hand, Theory Y managers regard (Pfeiffer at al, 1991) their employees as energetic, hardworking, creative employees who seek out responsibility. This theory implies that: a. The expenditure of physical and mental effort in work is as natural as play or rest. The average human being does not inherently dislike work. b. External control and the threat of punishment are not the only means for bringing about effort toward organizational objectives. Man will exercise self direction and self-control in the service of objectives to which he is committed. c. Commitment to objectives is a function of the rewards associated with their achievement. d. The average human being learns, under proper conditions, not only to accept but also to seek responsibility. e. The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the solution of organizational problems is widely, not narrowly, distributed in the population.

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f. Under the conditions of modern industrial life, the intellectual potentialities of the average human being are only partially utilized. (McGregor, 1960). According to Maslows hierarchy, it can be identified that money falls under safety or the need for security. McGregors theories show security under the X theory, that above all security is what people seek. If a manager is running his organization under Theory X, it would be agreed that money is a motivator for the employees. If on the contrary, an organization is being run under theory Y, then money can be part of the business but it not what will drive the employees to achieve. 3.1.4 Herzbergs motivator hygiene According to Steers et al (1996), Herzbergs motivator hygiene theory is perhaps the most controversial theory of work motivation. The original research used in developing the theory was conducted with several hundred accountants and engineers. On the basis of his study, Herzberg reported that employees tended to describe satisfying experiences in terms of factors that were intrinsic to the content of the job itself. These factors were called motivators. Conversely, dissatisfying experiences called hygiene factors, resulted largely from extrinsic, non- job related factors. Intrinsic rewards- coming from the job itself - authority given to the individual means they can make decisions and feel a sense of achievement. Motivators include: Sense of achievement Recognition The work itself Responsibility Advancement Growth

Extrinsic associated with the job. Hygiene factors (also called maintenance factors) include: Companies policies Salary

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Motivation
Co-worker relations Supervisory style

Figure 3.3. Extrinsic and Intrinsic Needs Source: From: http://www.thomsettinternational.com/main/articles/hot/hot_turn.htm

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Figure 3.4. Herzberg Motivator Hygiene Source: From <http://managementconsultingcourses.com/Lesson20Motivation&ItsTheories.pdf

Figure 3.3. Maslows and Herzbergs ideas compared Source: From http://www.citehr.com/307617-hr-library-crks-desk-11.html

Hygiene factors can at best prevent dissatisfaction, if applied poorly; they can result in negative feelings about the jobs. Motivators are those things that allow for psychological growth and development on the job. Motivators are closely related the concept of self actualization of Maslow theory while Hygiene factors are closely related to the conditions of the work than the work itself. For example, an employee would become dissatisfied if they had a nasty supervisor, was working in a hostile environment, or received a low salary. If the supervisor or the salary were to be improved, then the employee would be less dissatisfied. On the flipside, if an employee is not empowered and not given responsibility, he or she might not be satisfied or may be dissatisfied. However if

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the employee were empowered, then he or she would become more satisfied. According to this theory, a manger that wishes to improve motivation among his or her employees must guarantee that the hygiene factors are met, as well as offer motivation factors Money or employees salary is a hygiene factor; it is a biological need because money is needed for food, water and shelter. Money becomes a drive for all people because of this truth. It will give a short run of motivation because it is needed for survive, but only the intrinsic or motivational factors can determine job satisfaction or no satisfaction. (E.Rind, 2010). Hence, it is concluded that money does not spur workers to higher performance or lead to satisfaction. Their existence is seen as granted, but if missing people are dissatisfied. People need fair salary to avoid dissatisfaction but to satisfy people, motivators must be used. 3.1.5 McClellands learned needs McClelland contents that individuals acquire certain needs from the culture of a society by learning from the events that they experience particularly in early life. (Steers et al, 1996) Four of the needs are as follows: Need for achievement strong desire to assume personal responsibility for finding solutions to problems; intense desire to succeed and an equally intense fear of failure Need for affiliation - seeking acceptance by others; need to feel loved and are concerned with maintaining pleasant social relationships. Need for power seeking opportunities to influence others; seek leadership positions Need for autonomy - a desire to be independence; want to work alone; prefer to control own work place; do not want to be hampered by excessive rules. Hence the concept emphasizes to use psychological terminology, that nurture that is, what kinds of life circumstances people encounter and experience- is as

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Motivation
important as nature that is, what people are born with in understanding what motivates human behavior. (Steers et al, 1996) So, in this concept, the need of money as motivational factor does not fall. McClelland views on motivation are related to behavior of the employees in terms of psychological needs which can be wanting for power or love or achievement. 3.2 The Process theories The process theories of motivation attempt to describe how behavior is energized, directed and sustained. These theories focus on certain psychological processes underlying action. In contrast to content theories which conceptualize behavior as the product of innate psychological characteristics (e.g. needs), process theories view behavior as the result at least part, of human decision processes. 3.2.1 Vrooms expectancy theory His model is based on the assumption that individuals make conscious and rational choices about their work behavior. Employees will decide to apply effort to those tasks that they find attractive and that they believe they can perform. The attractiveness of a particular task depends upon the extent to which the employee believes that its accomplishment will lead to valued outcomes. (Steers et al, 1996) Motivation is a function of the relationship between Effort expended and perceived level of performance The expectation that rewards (desired outcomes) will be related to performance There must also be the expectation that rewards are available. These relationships determine the strength of the motivational link: The strength of the individuals preference for an outcome The belief in the likelihood that particular actions will achieve the required goal. The key elements to Vrooms theory are referred to as: Expectancy What is the probability that, it I work very hard I will be able to do a good job? Instrumentality What is the probability that if I do the good job, there will be come kind of outcome in it for me? 23

Motivation
Valence Is the outcome I get of any value to me? Hence in Vrooms theory, rewards can be monetary or non-monetary. However, before achieving rewards, it is important for an employee to believe if he will be able to do the work. After this having this confidence in him, then the employer needs to associate performance with outcomes e.g high performance is related to desired outcomes (Rewards). Hence, the outcomes should not be of any negative value to the worker. For example, performance of a particular job leading to fatigue, stress which are negative valence. 3.2.2 The Porter- Lawler Model In this model, it is believed that effort may not necessarily lead result in performance. The two reasons put forward are as follows: Individual may not have the ability to accomplish the tasks that constitute his or her job. Individual may not have good understanding of the task to be performed. He does not have an idea how he can direct his efforts. Here it is seen that performance and satisfaction may not necessarily be related to each other. Performance of task may provide the employee with intrinsic rewards, extrinsic rewards or both. Moreover the authors suggest that intrinsic rewards can be more closely linked with good performance than extrinsic rewards, because intrinsic rewards can result directly form task performance. In contrast extrinsic rewards are administered y the organization. Hence the rewards that result form a particular level of performance will interact with the employees perception of them to determine satisfaction. Thus, this model suggests performance leads to satisfaction rather than the opposites. This was a significant departure from the traditional thinking 3.3 Other Studies 3.3.1. Lockes goal setting theory Edwin Locke proposes that setting specific goals will improve motivation. Salient features of this theory are as follows:
Specific goal fixes the needs of resources and efforts

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It increases performance Difficult goals result higher performance than easy job Better feedback of results leads to better to better performance than lack of feed back. Participation of employees in goal has mixed result Participation of setting goal, however, increases acceptance of goal and involvements. Goal setting theory has identified two factors which influences the performance. These are given below; Goal commitment Goal setting theory presupposes that the individual is committed to the goal Self- Sufficiency Self Efficiency is the belief or self confidence, that he/she is capable of performing task. Goals hence, are important in motivation. According to Locke, employees committed to goals will perform better. As far as selfsufficiency is concerned, persons with high sufficiency put up extra efforts when they face challenges while for low self- sufficiency, they will lessen or even abandon when meeting challenges. Hence, the conclusion concerning money is, money alone will not motivate employees. Goal commitment and self- sufficiency is important.

3.3.2. Equity Theory

This theory of motivation centers on the principle of balance or equity. According to this theory level of motivation in an individual is related to his or her perception of equity and farness practiced by management. Greater the fairness perceived higher the motivation and vice versa. In this assessment of fairness, employee makes comparison of input in the job (in terms of contribution) with that of

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outcome (in terms of compensation) and compares the same with that of another colleague of equivalent cadre.

Conclusion
The evolution of the models of evolution has shown how different theories have been developed to analyze and challenge the concept brought by Frederic Taylor, the school of scientific management. The different theories developed during this evolution from Elton Mayo, to latest theories such as Equity theory, show that money alone is not a motivational factor. Rather motivation is a complex combination of many of the factors,

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given to the individual, the corporate culture, and the organizational environment that can motivate employees. Factors such as; Employees need to move through a hierarchy of needs ( Abraham Maslow) Money forms part of the needs that need to be satisfied in order to motivate/ drive employees. (Alderfers EGR Theory) Employees seek responsibility, dislike threats; work is as natural as rest, and want to satisfy their need for esteem and self-actualization.(McGregor theory Y) Employees need for affiliation, autonomy and power. (McClellands learned needs) Both hygiene factors such as salary and motivation factors such as sense of achievement and recognition are important to motivate employees (Herzbergs motivator hygiene) Self confidence, performance and valuable outcomes. (Vrooms expectancy theory) Performance leading to satisfaction (The Porter- Lawler Model) Goal commitment and self sufficiency are important (Lockes goal setting theory) What is certain, however, is that it is not merely the financial gains that successfully motivate employees, though it is known that money is important. Wholly it can be said that there are monetary as well as non monetary factors that motivates employees. Nonmonetary factors can be:
Status or job title: By providing a higher status or designations the employee must be motivated. Employees prefer and proud of higher designations. Appreciation and recognition: Employees must be appreciated for their services. The praise should not come from immediate superior but also from higher authorities. Delegation of authority: Delegation of authority motivates a subordinate to perform the tasks with dedication and commitment. When authority is

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delegated, the subordinate knows that his superior has placed faith and trust in him.

Working conditions:
Provision for better working conditions such as air-conditioned rooms, proper plant layout, proper sanitation, equipment, machines etc, motivates the employees. Job security: Guarantee of job security or lack of fear dismissal, etc can also be a good way to motivate the employees. Employees who are kept temporarily for a long time may be frustrated and may leave the organization. Job enrichment: Job enrichment involves more challenging tasks and responsibilities. For instance an executive who is involved in preparing and presenting reports of performance, may also asked to frame plans. Workers participation: Inviting the employee to be a member of quality circle, or a committee, or some other form of employee participation can also motivate the work-force. Cordial relations: Good and healthy relations must exist throughout the organization. This would definitely motivates the employees. Good superiors: Subordinates want their superiors to be intelligent, experienced, matured, and having a good personality. In fact, the superior needs to have superior knowledge and skills than that of his subordinates. The very presence of superiors can motivate the subordinates. Other factors: There are several other factors of motivating the employees: Providing training to the employees. Proper job placements. Proper promotions and transfers.

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Proper performance feed back. Proper welfare facilities. Flexible working hours.

Employees need to feel valued, respected and a sense of worth about their jobs and from their managers, who is hopefully leader. A leader has the capability of motivating, guiding, counseling, and inspiring worker to perform, instead of just supervising tasks. Motivation is essential at all levels of life and it must have both intrinsic and extrinsic value. Employee motivation can lead to productivity, efficiency, profit as well as loyalty and commitment to a company.

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BIBLIOGRAPHY PUBLICATIONS James Houran, Keith Kefgen, Money and Employee Motivation, from <http://www.2020skills.com/asts/Money%20and%20Employee%20Motivation.pdf> [ Accessed on 04 June 2011] Motivation, Key theories, from<http://www.goldsmithibs.com/resources/free/Motivation/notes/Summary%20%20Motivation.pdf > [Accessed on 04 June 2011] Eric Rind (2010), is money a motivator from <http://www.docstoc.com/docs/44136231/Is-Money-a-Motivator> [Accessed on 04 June 2011] Motivation and its theories from <http://managementconsultingcourses.com/Lesson20Motivation&ItsTheories.pdf > [Accessed on 04 June 2011] Tiffany Jordan (2000), Motivation of employees: the pros and cons of what works and doesnt, from <http://www.businesstrainers.net/start.html> [Accessed on 04 June 2011] Martina Rechbauer, Alexandra Sams(2006), Money alone does not lead job satisfaction from <http://www.pdfqueen.com/job-satisfaction---motivation>[Accessed on 04 June 2011] BOOKS Richard M.Steers, Lyman W. Porter and Gregory A. Bigley (1996), Motivation and leadership at work, McGraw-Hill. Pg 8-30. Herzberg, F. (1968). One more time: How do you motivate employees. Harvard Business Review. Herzberg, F., Mausner, B., & Snyderman, B. (1959). The Motivation to Work 2nd Ed. John Wiley & Sons, New York. 30

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Henderson, R. (1982). Compensation Management, 3rd Ed., Reston, VA. Reston Publishing Co., Inc . Pfeiffer, W. & Ballew, A. (1991). Theory X-Theory Y. Theories and Models in Applied Behavior Science, Vol 1., p.273. McGregor, D. (1960). The human side of the enterprise. McGraw-Hill; New York. P3349, 114.

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