BBA 8TH SEMESTER

MORNING
SUBMITTED TO:
Mam Sahar Rana Latif
SUBMITTED BY:
Laiba Shakeel (bsf1900952)
Sehar Mahmood (bsf1901146)
Tooba Shahzadi (bsf1900977)
Rida Qayyum (bsf1901281)
Nasreen Arshad (bsf1900910)
Motivation
Motivation is derived from the word 'motive', which denotes a person's needs, desires, wants, or urges. It
is the process of motivating individuals to take action in order to achieve a goal. The psychological
elements fueling people's behavior in the context of job goals might include a desire for money.
The term motivation describes why a person does something. It is the driving force behind human
actions. Motivation is the process that initiates, guides, and maintains goal-oriented behaviors. For
instance, motivation is what helps you lose extra weight, or pushes you to get that promotion at work. In
short, motivation causes you to act in a way that gets you closer to your goals. Motivation includes
the biological, emotional, social, and cognitive forces that activate human behavior.
Motivating other people is about getting them to move in the direction you want them to go in order to
achieve a result. Motivating yourself is about setting the direction independently and then taking a course
of action that will ensure that you get there. Motivation can be described as goal-directed behavior.
People are motivated when they expect that a course of action is likely to lead to the attainment of a goal
and a valued reward – one that satisfies their needs and wants. Well-motivated people engage in
discretionary behavior – in the majority of roles there is scope for individuals to decide how much effort
to exert. Such people may be self motivated, and as long as this means they are going in the right
direction to attain what they are there to achieve, then this is the best form of motivation. Most of us,
however, need to be motivated to a greater or lesser degree.
Types of motivation
There are two types of motivation, and a number of theories explaining how it work.

Intrinsic motivation
Intrinsic motivation can arise from the self-generated factors that influence people’s behavior. It is not
created by external incentives. It can take the form of motivation by the work itself when individuals feel
that their work is important, interesting and challenging and provides them with a reasonable degree of
autonomy (freedom to act), opportunities to achieve and advance, and scope to use and develop their
skills and abilities. Deci and Ryan (1985) suggested that intrinsic motivation is based on the needs to be
competent and self-determining (that is, to have a choice).
Intrinsic motivation can be enhanced by job or role design. According to an early writer on the
significance of the motivational impact of job design (Katz, 1964): ‘The job itself must provide sufficient
variety, sufficient complexity, sufficient challenge and sufficient skill to engage the abilities of the
worker.’ In their job characteristics model, Hackman and Oldham (1974) emphasized the importance of
the core job dimensions as motivators, namely skill variety, task identity, task significance, autonomy and
feedback.
Extrinsic motivation
Extrinsic motivation occurs when things are done to or for people to motivate them. These include
rewards, such as incentives, increased pay, praise, or promotion; and punishments, such as disciplinary
action, withholding pay, or criticism.
Extrinsic motivators can have an immediate and powerful effect, but will not necessarily last long. The
intrinsic motivators, which are concerned with the ‘quality of working life’ (a phrase and movement that
emerged from this concept), are likely to have a deeper and longer-term effect because they are inherent
in individuals and their work and not imposed from outside in such forms as incentive pay.
Theories of Motivation
Human behaviour, being complex in nature in terms of need behaviour-action process different
motivational theories emphasise on these elements in a different perspective. Motivation is a huge field of
study. There are many theories of motivation. Some of the important theories of motivation are:-
A. Need Theories
Need theories identify and satisfy needs of a person that Motivate him to perform organisational
activities. Need theory believe that individuals have various need and work to fulfill those needs.
1) Maslow’s need hierarchy theory - Maslow
2) Two factor theory - Herzberg
3) ERG Theory - Clayton Alderfer
B. Cognitive Theories
According to cognitive theories, it is not the need that makes a person act but his perception about a
particular situation that influences his behavior. People’s actions are affected by what they expect to
achieve out of those actions.
4) Expectancy theory - Victor H. Vroom
5) Goal Setting theory - Edwin Locke
6) Equity theory - J. Stacy Adams
C. Behavioral Theories
The nature of individuals and how they behave in different situation forms the basis for motivation in the
behavioral theory.
7) Theory X and Theory Y – Mc Gregor
8) Theory Z – Ouchi

1. Maslow’s Theory of Hierarchical Needs 

Abraham Maslow postulated that a person will be motivated when all his needs are fulfilled. People do
not work for security or money, but they work to contribute and to use their skills. He demonstrated this
by creating a pyramid to show how people are motivated and mentioned that ONE CANNOT ASCEND
TO THE NEXT LEVEL UNLESS LOWER-LEVEL NEEDS ARE FULFILLED. The lowest level needs
in the pyramid are basic needs and unless these lower-level needs are satisfied people do not look at
working toward satisfying the upper-level needs.  This theory classifies the need into a hierarchy from
lower to higher order as five need clusters as shown in the following figure

Physiological needs: are basic needs for survival such as air, sleep, food, water, clothing, sex, and
shelter. 
  Safety needs: Protection from threats, deprivation, and other dangers (e.g., health, secure
employment, and property) 
 Social (belongingness and love) needs: The need for association, affiliation, friendship, and so
on. 
 Self-esteem needs:  The need for respect and recognition. 
 Self-actualization needs:  The opportunity for personal development, learning, and
fun/creative/challenging work.  Self-actualization is the highest-level need to which a human
being can aspire.

2) Herzberg’s Two Factor Theory:-

Fredrick Herzberg’s proposed a two factor motivation theory. This is also called the motivation
hygine theory. This Theory focuses on the distinction between factors that can increase job
satisfaction (Motivators) versus those that can prevent dissatisfaction but cannot increase satisfaction
hygiene factors. Motivators are intrinsic factors and directly related to the performance of a , Such as
the nature of the work itself, responsibility, personal growth and the sense of achievement and
recognition directly received by performing the work. The hygine factor or extrinsic factors are
associated with conditions surrounding the job. This includes work condition, good pay, insurance
policies, vacations, supervision, relation with co-workers.

While Maslow’s theory is based on general observation if needs of the employees, the two factor theory
is based on actual research findings. Herzberg conducted interviews with 200 accountants and engineers
of companies in the Pittsburgh area. He asked them two questions-

 What are the factors that make you feel satisfied with your work and motivate you to perform
better? and
 What are the factors that make you feel dissatisfied with your work and do not motivate you to
perform better?

The results from this inquiry from the basis of Herzberg’s motivation- hygine theory.
3) ERG theory:-

It is formulated by clayton Alderfer. The basis of this theory is the need hierarchy of Maslow. The five
needs as specified by Maslow are clubbed into three by Alderfer in ERG need Theory. These are
existence needs, Relationship needs and growth needs.

E – Existence Needs

R – Relationship Needs

G – Growth Needs

 Existence needs – These include need for basic material necessities. In short, It includes
individual’s Physiological and safety needs.
 Relatedness needs: - These include the aspiration individual’s have for maintaining significant
interpersonal relationship, getting public fame and recognition Maslow’s social needs and esteem
needs fall under this class of need.
 Growth needs: - These include need if self development and personal growth and advancement.
Maslow’s self-actualization needs fall under this category of need.

4) Vroom’s Expectancy Theory: -

Victor Vroom’s expectancy theory of motivation is a process theory of motivation. It says that an
individual’s motivation is affected by their expectations about the future. Vroom’s theory asserts that
motivation is a product of valence and expectancy.

Motivation = Valence X Expectancy

The expectancy theory states that an individual tends to act in a certain way based on the expectation that
the act will be followed by a given outcome and on the atlractiveness of that outcome to the individual. It
includes three variables
  Expectancy – It is the probability perceived by an individual that exertion of a specified amount if
effort will lead to a certain level of performance.
 Instrumentality – It is the degree to which an individual believes that performing at a particular
level is instrumental in attaining the desired outcome.
 Valence – It is the importance that an individual places on the potential outcome that can be
achieved on the job. Valence considers both the goals and needs of the individual.

5) Goal Setting theory:-

In the 1960’s, Edwin Locke put forward the goal setting theory. Goals indicate and give direction to an
employee about what needs to be done and how much effort is required to be put in. Setting of goals can
also be a motivational factor affecting the human behavior. If goals are attainable, measurable,
challenging and within the reach of individuals, they will be motivated to work towards the attainment of
these goals. When people feed committed to organisational goals, they are motivated to work hard to
achieve those goals and also associate their hard work with returns and rewards. Goal setting theory is
based on 7 principles which are –

 Clarity
 Challenge
 Commitment
 Feedback
 Task Complexity
 Self efficiency
 Goal commitment

6) Equity Theory

The Equity theory developed by J. Stacey Adams. Theory proposes that employees compare what they
obtain from a job (Outcome) with what they put into it (inputs) and then compare their inputs. There
should be a balance of the outcome and inputs relationship for one person in comparison with that for
another person. Equity theory focused on distributive Justice, which is perceived fairness of the amount
and allocation of rewords among individuals.

7) Theory X and Theory Y

Douglas McGregor developed an approach that showed how assumptions about worker’s atlituder and
behaviour affect the behaviour of managers. He developed two sets of assumption about human
behaviour which help managers in adopting motivators for them. One set of assumptions is called X
Theory and the other set of assumption Theory Y. One of McGregor’s theories is called the traditional
theory and second theory is called modern theory. The first principle presents a pessimistic and second
principle presents an optimistic view.

 X Theory – This theory is based on the assumption that every person wants to avoid work.
Therefore, to get work out of this, a negative motivation is necessary. He can be med only by
showing fear. The autocratic leadership theory in also based on this belief.
 Y Theory – Y theory is based on concept that every person is passive and unreliable nature. If he
is duly motivated, he can be loyal to work himself and produce more. In

8) Ouchi’s Z Theory:-

William ouchi proposal Theory Z as an integrated model of motivation. He developed the theory after
comparing Japanese and American management practices. Theory Z focusedan increasing employee
loyalty to the company by providing a job for life with a strong focus on the well being of the employee,
both on and off the job. According to ouchi, Theory Z based management tends to promote stable
employment, high productivity and high employee morale and satisfaction. This theory holds that every
human is a consumer. Ever if he is a producer, manager, teacher, employee, doctor etc. Z theory
emphasizes services to the society of consumer. This theory contributes to its practical implementation by
removing the barriers of Y Theory. This principle believes in substituting business as marketing.

Limitation of Motivation
It is true that motivation is a very important fact in accomplioning the objective of the organisation, but in
reality it is not an easy task to motivate the employees in the organisation. Determination of basic facts is
a problem because the basic needs of each person are different. Lack of employee loyalty towards the
organisation is also a problem. It is not easy to understand the inner feelings of the workers.

Application of Motivation Theories

A manager is interested in motivating his employees effectively. He needs specific recommendations that
can be applied in practice. The following suggestion can be given on the basis of the theories:-

 All motivation theories recognize that employees are not identical. They have different needs and
personality
 Managers should ensure the employees have specific goals and feedback on how well they are
doing in achieving those goals.
 The motivational benefits should be aligned carefully to match people with their jobs.
 Managers need to make rewards contingent on performance. Important rewards such as pay
increases and promotions, should be given for the attainment of specific goals. Furthermore,
managers should look for ways to increase the visibility if rewards, making them potentially more
motivating.
 Employees should perceive that rewords or outcomes are equal to the inputs.
 Employees perform better for managers who care about them.

Motivating the subordinate

The article, “Practice the Five R’s to Motivate Workers,” written by R. Brayton Bowen and arranged
by Prakal Panthapalangkoon, suggests that workers can be motivated by the five denominations of
responsibility, respect, relationships, recognition and rewards as follows:

 Responsibility:
When giving more responsibility to an employee, the communication must be clear to prevent the
employee from feeling that he has got additional workload. An employee should take part in
making a decision on how to work more efficiently so that
 he will be proud because his supervisor trusts him to try new and challenging ideas. This will make
him feel the ownership and try his best to complete the assignment.

 Respect:

All employees should be accepted and treated equally without any bias. They should have the
freedom to express their opinions with their colleagues or supervisors. If the employees have
good performance, the leader should show appreciation or admiration. On the contrary, if they
made a mistake, the leader should explain the reason for such mistake.

 Relationships:

A team leader should create a friendly environment where team members feel that if there are any
problems that may affect the team, they will not be afraid to tell team leader what is going on and why,
and help each other to solve such problems. Furthermore, if team members have problems with each
other, the leader has to get in to make the situation better by allowing each team member to clarify from
his perspective so that everyone in the team can continue to work together. All of these efforts will make
the team more successful and stronger. Smiles and laughter in the team are also important as a part of
making everyone work together happily.

 Recognition:

Employees should be admired and accepted for the job that has been successfully completed, either in
part or in whole. Recognition can highly motivate and make the employees proud. As a result, they will
try even harder to achieve the even better level of performance. On the contrary, if an employee cannot
do very well on a task assigned to him, the supervisor has to figure out what is missing or wrong and how
to help him improve.

 Rewards:

Praise and rewards are main factors that motivate and inspire employees to work harder. Rewards may
come in various forms, such as incentive, bonus, or a raise. However, rewards may not always come in
monetary forms, but they can be promotion, assignments to join a special project, training, and tour of
inspection to improve the performance, because after a while the employees may not feel special by the
money they have got as rewards.