Motivation and Leadership

Definition of Motivation:

Internal and external factors that stimulate desire and energy in people to be continually
interested and committed to a job, role or subject, or to make an effort to attain a goal.

Motivation results from the interaction of both conscious and unconscious factors such as the
(1) intensity of desire or need, (2) incentive or reward value of the goal, and (3) expectations
of the individual and of his or her peers. These factors are the reasons one has for behaving a
certain way.

What is Motivation?

Motivation is the answer to the question “Why we do what we do?”. The motivation theories
try to figure out what the “M” is in the equation: “M motivates P” (Motivator motivates the
Person). It is one of most important duty of an entrepreneur to motivate people. (I strongly
believe that motivating people with visionary and shared goals are more favorable than
motivating through tactics, incentives or manipulation through simple carrot and stick
approaches because motivating with vision is natural whereas the former is artificial and
ephemeral).

A Classification of Motivation Theories (Content vs. Process)

Motivation theories can be classified broadly into two different perspectives: Content and
Process theories. Content Theories deal with “what” motivates people and it is concerned with
individual needs and goals. Maslow, Alderfer, Herzberg and McCelland studied motivation
from a “content” perspective. Process Theories deal with the “process” of motivation and is
concerned with “how” motivation occurs. Vroom, Porter & Lawler, Adams and Locke studied
motivation from a “process” perspective.
Theories of Motivation

1. Content Theories about Motivation

i. Abraham Maslow’s Hierarchy of Needs

When motivation theory is being considered the first theory that is being recalled is Maslow’s
hierarchy of needs which he has introduced in his 1943 article named as “A Theory of Human
Motivation”. According to this theory, individual strives to seek a higher need when lower
needs are fulfilled. Once a lower-level need is satisfied, it no longer serves as a source of
motivation. Needs are motivators only when they are unsatisfied.

• In the first level, physiological needs exist which include the most basic needs for
humans to survive, such as air, water and food.
• In the second level, safety needs exist which include personal security, health, well-
being and safety against accidents remain.
• In the third level, belonging needs exit. This is where people need to feel a sense of
belonging and acceptance. It is about relationships, families and friendship.
Organizations fulfill this need for people.
• In the fourth level, self-esteem needs remain. This is where people looks to be
respected and to have self-respect. Achievement needs, respect of others are in this
level.
• In the top-level, self-actualization needs exist. This level of need pertains to realising
the person’s full potential.

ii. Alderfer’s ERG Theory

In 1969, Clayton P. Alderfer, simplified Maslow’s theory by categorizing hierarchy of needs

into three categories:

• Physiological and Safety needs are merged in Existence Needs,

• Belonging needs is named as Relatedness Needs,
• Self-esteem and Self-actualization needs are merged in Growth Needs

iii. Herzberg’s Two Factor Theory

Frederick Herzberg, introduced his Two Factor Theory in 1959. He suggested that there are
two kinds of factors affect motivation, and they do it in different ways:

1) Hygiene factors: A series of hygiene factors create dissatisfaction if individuals perceive

them as inadequate or inequitable, yet individuals will not be significantly motivated if these
factors are viewed as adequate or good. Hygiene factors are extrinsic and include factors such
as salary or remuneration, job security and working conditions.

2) Motivators: They are intrinsic factors such as sense of achievement, recognition,

responsibility, and personal growth.

The hygiene factors determine dissatisfaction, and motivators determine satisfaction. Herzberg
theory conforms with satisfaction theories which assert that “a satisfied employee tends to work
in the same organization but this satisfaction does not always result in better performance”. In
other words, satisfaction does not correlate with productivity.

iv. McClelland’s Achievement Need Theory

in his 1961 book named as “The Achieving Society”, David McClelland identified three basic
needs that people develop and acquire from their life experiences.

• Needs for achievement: The person who have a high need for achievement seeks
achievement and tries to attain challenging goals. There is a strong need for feedback
as to achievement and progress, and a need for a sense of accomplishment. The person
who have a high achievement need likes to take personal responsibility.
• Needs for affiliation: The person who have a high need for affiliation needs
harmonious relationships with people and needs to be accepted by other people.
(People-oriented rather than task-oriented).
• Needs for power: The person who have a need for power wants to direct and command
other people. Most managers have a high need for power.

Although these categories of needs are not exlusive, generally individuals develop a dominant
bias or emphasis towards one of the three needs. Entrepreneurs usually have high degree of
achivement needs.
 2. Process Theories about Motivation

i. Expectancy Theory

Expectancy Theory argues that humans act according to their conscious expectations that a
particular behavior will lead to specific desirable goals.

Victor H. Vroom, developed the expectancy theory in 1964, producing a systematic

explanatory theory of workplace motivation. Theory asserts that the motivation to behave in a
particular way is determined by an individual’s expectation that behaviour will lead to a
particular outcome, multiplied by the preference or valence that person has for that outcome.

Three components of Expectancy theory are:

1. Expectancy: E -> P. The belief of the person that her/his effort (E) will result in
attainment of desired performance (P) goals.
2. Instrumentality: P -> R. The belief of the person that she/he will receive a reward (R)
if the performance (P) expectation is met.
3. Valence: The value of the reward according to the person. (e.g. Is the reward attractive
to the person?)

The equation suggests that human behaviour is directed by subjective probability.

ii. Goal Theory

Edwin Locke proposed Goal Theory in 1968, which proposes that motivation and performance
will be high if individuals are set specific goals which are challenging, but accepted, and
where feedback is given on performance.

The two most important findings of this theory are:

1. Setting specific goals (e.g. I want to earn a million before I am 30) generates higher
levels of performance than setting general goals (e.g. I want to earn a lot of money).
2. The goals that are hard to achieve are linearly and positively connected to
performance. The harder the goal, the more a person will work to reach it.
 iii. Adams’ Equity Theory

Developed by John Stacey Adams in 1963, Equity Theory suggests that if the individual
perceives that the rewards received are equitable, that is, fair or just in comparison with those
received by others in similar positions in or outside the organization, then the individual feels
satisfied. Adams asserted that employees seek to maintain equity between the inputs that they
bring to a job and the outcomes that they receive from it against the perceived inputs and
outcomes of others.

Types of Motives: Biological, Social and Personal Motives

Psychologists have divided motives into three types—Biological motives, social motives
and personal motives:

The goal here may be fulfillment of a want or a need. Whenever a need arises the organism is
driven to fulfill that want or need. If there is no need in the organism, there will be no behavior.
For example, Horse and water. Horse does not drink water unless it has thirst or if it is not
motivated. Unlike the external stimuli, the motives are limited.

The behaviour to fulfill such needs is mechanical and alike in all the organisms. Hunger is a
motive which stimulates the organism to have food. We develop hunger when the food that
was taken earlier is exhausted.

The need for food drives us to go in search of food and to have it. Here the hunger motive not
only initiated the action, but also continued until the goal (having food) is reached. The motives
are powerful forces.

They do not allow us to stop our action or behaviour until the need is satisfied. Hence, they are
called the ‘dynamos’ of behaviour.

Types of Motives:

I Biological Motivation and Homeostasis:

Biological motives are called as physiological motives. These motives are essential for the
survival of the organism. Such motives are triggered when there is imbalancement in the body.
The body always tends to maintain a state of equilibrium called “Homeostasis”- in many of its
internal physiological processes.

This balance is very essential for the normal life. Homeostasis helps to maintain internal
physiological processes at optimal levels. The nutritional level, fluid level, temperature level,
etc., are maintained at certain optimal level or homeostasis levels. When there is some variation
in these levels the individual is motivated for restoring the state of equilibrium.

1. Physiological Motives:

a. Hunger motive:

We eat to live. The food we take is digested and nutritional substances are absorbed. The
biochemical processes get their energy from the food in order to sustain life. When these
substances are exhausted, some imbalancement exists.

We develop hunger motive in order to maintain homeostasis. This is indicated by contraction

of stomach muscles causing some pain or discomfort called hunger pangs. Psychologists have
demonstrated this phenomenon by experiments.

b. Thirst motive:

In our daily life regularly we take fluids in the form of water and other beverages. These fluids
are essential for our body tissues for normal functioning. When the water level in the body
decreases we develop motive to drink water.

Usually thirst motive is indicated by dryness of mouth. Experiments by psychologists have

shown that just dried mouth getting wetted is not enough. We need to drink sufficient quantity
of water to satiate our thirst.

c. Need for oxygen:

Our body needs oxygen continuously. We get it through continuous respiration. Oxygen is
necessary for the purification of blood. We cannot survive without regular supply of oxygen.
Lack of oxygen supply may lead to serious consequences like damage to brain or death.
d. Motive for regulation of body temperature:

Maintenance of normal body temperature (98.6°F or 37.0°C) is necessary. Rise or fall in the
body temperature causes many problems. There are some automatic mechanisms to regulate
body temperature, like sweating when the temperature rises above normal or, shivering when
it falls below normal.

These changes motivate us to take necessary steps. For example, opening of windows, put on
fans, take cool drinks, remove clothes, etc., when the temperature increases to above normal
level; and closing doors and windows, wear sweaters, take hot beverages when temperature
falls down. In this way we try to regulate the body temperature.

e. Need for sleep:

Sleep is an essential process for normal functioning of body and mind. When our body and
mind are tired they need rest for rejuvenation of energy. It is observed that there is excess
accumulation of a toxin called ‘Lactic acid’ when tired.

After sleep it disappears and the person becomes active. Sleep deprivation also leads to
psychological problems like confusion, inability to concentrate, droopy eyelids, muscle
tremors, etc.

f. Need for avoidance of pain:

No organism can continue to bear pain. Whenever we experience pain we try to avoid it. We
are motivated to escape from painful stimulus. For example, when we are under hot sun we go
to shade. When something is pinching we avoid it.

g. Drive for elimination of waste:

Our body cannot bear anything excess or anything waste. Excess water is sent out in the form
of urine or sweat. So also digested food particles after absorption of nutritional substances are
sent out in the form of stools. We experience discomfort until these wastes are eliminated.
h. Sex motive:

This is a biological motive, arises in the organism as a result of secretion of sex hormones-like
androgens and estrogens. Sex need is not essential for the survival of the individual, but it is
essential for the survival of the species. However, fulfillment of the sex need is not like
satisfying hunger or thirst.

The society and the law exercise certain codes of conduct. Human being has to adhere to these
rules.

i. Maternal drive:

This is an instinct or an inborn tendency. Every normal woman aspires to become a mother.
Psychologists have learnt from related studies that, this is a most powerful drive. That is why
in many cases the women who cannot bear children of their own, will sublimate that motive
and satisfy it through socially acceptable ways, like working in orphan schools, baby sittings
or adopting other’s children.

2. Social Motives:

Physiological motives discussed above pertain to both animals as well as human beings, but
the social motives are specific only to human beings. These are called social motives, because
they are learnt in social groups as a result of interaction with the family and society. That is
why their strength differs from one individual to another. Many social motives are recognised
by psychologists. Some of the common social motives are:

a. Achievement motive:

Achievement motivation refers to a desire to achieve some goal. This motive is developed in
the individual who has seen some people in the society attaining high success, reaching high
positions and standards.

He/she develops a concern to do better, to improve performance. David C Mc Clelland who

conducted a longitudinal study on characteristics of high and low achievers found that the high
achievers choose and perform better at challenging tasks, prefers personal responsibility, seeks
and utilizes feedback about the performance standard, having innovative ideas to improve
performance.

On the other hand, low achievers do not accept challenges, puts on average standards and
accepts failures easily. Parents must try to inculcate leadership qualities in children for better
achievement in their future life.

They must allow children to take decisions independently, and guide them for higher
achievement from the childhood, so that the children develop high achievement motivation.

b. Aggressive motive:

It is a motive to react aggressively when faced frustrations. Frustration may occur when a
person is obstructed from reaching a goal or when he is insulted by others. Even in a fearful
and dangerous do or die situation the individual may resort to aggressive behaviour. Individual
expresses such behaviour to overcome opposition forcefully, which may be physical or verbal
aggression.

c. Power motive:

People with power motive will be concerned with having an impact on others. They try to
influence people by their reputation. They expect people to bow their heads and obey their
instructions.

Usually people with high power motive choose jobs, where they can exert their powers. They
want people as followers. They expect high prestige and recognition from others. For example,
a person may aspire to go for jobs like Police Officer, Politician, Deputy Commissioner, etc.

d. Acquisitive motive:

This motive directs the individual for the acquisition of material property. It may be money or
other property. This motive arises as we come across different people who have earned a lot of
money and leading a good life. It is a human tendency to acquire all those things which appear
attractive to him.
e. Curiosity motive:

This is otherwise called stimulus and exploration motive. Curiosity is a tendency to explore
and know new things. We see people indulge in a travelling to look at new places, new things
and new developments taking place outside their environment.

People want to extend their knowledge and experiences by exploring new things. Curiosity
motive will be very powerful during childhood. That is why they do not accept any toy or other
articles unless they examine them from different angles, even at the cost of spoiling or breaking
the objects.

f. Gregariousness:

This is also known as affiliation need. Gregariousness is a tendency to associate oneself with
other members of the group or same species. The individual will be interested in establishing,
maintaining and repairing friendly relationships and will be interested in participating in group
activities.

Individual will conform to social norms, mores and other ethical codes of the groups in which
he/she is interested. To the greater extent gregariousness is developed because many of the
needs like basic needs, safety and security needs are fulfilled.

In addition to the above there are some other social motives like need for self-esteem, social
approval, self-actualization, autonomy, master motive, combat, defense, abasement, etc.

3. Personal Motives:

In addition to the above said physiological and social motives, there are some other motives
which are allied with both of the above said motives. These are highly personalized and very
much individualized motives. The most important among them are:

a. Force of habits:

We see different people having formed different habits like chewing tobacco, smoking, alcohol
consumption, etc. There may be good habits also like regular exercising, reading newspapers,
prayers, meditations, etc. Once these habits are formed, they act as drivers and compel the
person to perform the act. The specialty of habits is that, they motivate the individual to indulge
in that action automatically.

b. Goals of life:

Every normal individual will have some goals in the life. They may be related to education,
occupation, income, sports, acquisition of property, public service, social service, etc. Once a
goal is set, he will be motivated to fulfil that goal. The goals people set, depend upon various
factors like knowledge, information, guidance, support, personality, facilities available,
aspirations, family and social background, etc.

c. Levels of aspirations:

Aspiration is aspiring to achieve or to get something or a goal. But such achievement depends
upon the level of motivation the individual has. Every individual will have a goal in his life
and strive to reach that goal. But the effort to attain that goal varies from one individual to
another. The amount of satisfaction he gains depends upon his level of aspiration.

For example, if a student is expecting 80% of marks in examination, gets only 75%, he may be
unhappy. On the other hand, a student expecting failure may feel very happy if he gets just
35% passing marks, because, the student with high level of aspiration works hard, whereas the
student with low level may not.

Hence, always higher level of aspiration is advisable. However, it should be on par with his
abilities also. Because, if an individual aspires for higher level of achievement without
possessing required ability, he will have to face frustration and disappointment.

d. Attitudes and interests:

Our attitudes and interests determine our motivation. These are specific to individual. For
example, a person within the family, may have positive attitude towards family planning and
all others having negative attitudes.

So also, interests differ from one individual to another. Example, interest in sports, T.V, etc.
Whenever we have a positive attitude, we will have motivation to attain. In negative attitude,
we will be motivated to avoid. If a person is interested in music, he will be motivated to learn
it. In this way, our personal motives determine our behaviour.

Unconscious motivation:

Sigmund Freud, the famous psychologist has explained elaborately about unconscious
motivation. According to him, there are certain motives of which we are unaware, because they
operate from our unconscious.

These motives or desires which are repressed by our conscious remain in our unconscious and
will be influencing our behaviour.

Our irrational behaviour, the slip of tongue, slip of pen, amnesia, multiple personality,
somnambulism, etc., are some examples of such behaviours for which we do not have answers
apparently.

These motives can be delineated only by psychoanalysis. Many times psychosomatic disorders
like paralysis, headaches, gastric ulcers, etc., also may be due to unconscious motivation.

Frustration and conflict of motives

Frustration is a common emotional response to opposition. Related to anger and

disappointment, it arises from the perceived resistance to the fulfillment of individual will. The
greater the obstruction, and the greater the will, the more the frustration is likely to be. Causes
of frustration may be internal or external. In people, internal frustration may arise from
challenges in fulfilling personal goals and desires, instinctual drives and needs, or dealing with
perceived deficiencies, such as a lack of confidence or fear of social situations. Conflict can
also be an internal source of frustration; when one has competing goals that interfere with one
another, it can create cognitive dissonance. External causes of frustration involve conditions
outside an individual, such as a blocked road or a difficult task. While coping with frustration,
some individuals may engage in passive-aggressive behavior, making it difficult to identify the
original cause(s) of their frustration, as the responses are indirect. A more direct, and common
response, is a propensity towards aggression.
Causes:
 To the individual experiencing frustration, the emotion is usually attributed to external
factors which are beyond their control. Although mild frustration due to internal factors (e.g.
laziness, lack of effort) is often a positive force (inspiring motivation), it is more often than not
a perceived uncontrolled problem that instigates more severe, and perhaps pathological,
frustration. An individual suffering from pathological frustration will often feel powerless to
change the situation they are in, leading to frustration and, if left uncontrolled, further anger.
Frustration can be a result of blocking motivated behavior. An individual may react in
several different ways. He/She may respond with rational problem-solving methods to
overcome the barrier. Failing in this, he/she may become frustrated and behave irrationally. An
example of blockage of motivational energy would be the case of a worker who wants time off
to go fishing but is denied permission by his/her supervisor. Another example would be the
executive who wants a promotion but finds he/she lacks certain qualifications. If, in these cases,
an appeal to reason does not succeed in reducing the barrier or in developing some reasonable
alternative approach, the frustrated individual may resort to less adaptive methods of trying to
reach the goal. He/She may, for example, attack the barrier physically or verbally or both.

Symptoms:

Frustration can be considered a problem-response behavior, and can have a number of

effects, depending on the mental health of the individual. In positive cases, this frustration will
build until a level that is too great for the individual to contend with, and thus produce action
directed at solving the inherent problem. In negative cases, however, the individual may
perceive the source of frustration to be outside of their control, and thus the frustration will
continue to build, leading eventually to further problematic behavior (e.g. violent reaction).
Stubborn refusal to respond to new conditions affecting the goal, such as removal or
modification of the barrier, sometimes occurs. As pointed out by Brown, severe punishment
may cause individuals to continue nonadaptive behavior blindly: “Either it may have an effect
opposite to that of reward and as such, discourage the repetition of the act, or, by functioning
as a frustrating agent, it may lead to fixation and the other symptoms of frustration as well. It
follows that punishment is a dangerous tool, since it often has effects which are entirely the
opposite of those desired”.

Conflict of Motives:
 When two states of feeling, viewed merely as emotions, come together, if they are of the
same nature, we have a sum total--as when the occurrence of two pleasures gives a greater
pleasure. When a pain concurs with a pleasure, we find as a matter of fact that the one can
neutralize the other. All through life we apply the grateful to submerge the disagreeable. This
is one phase of the opposition of the two cardinal states of our consciousness. Each of them
has a distinct substantive existence, like black and white. There are opposites that have merely
a formal existence, as plus and minus in Algebra; but the state of pain would be a genuine fact,
although there were no state of pleasure at all; in which case the opposition would simply be
suffering and the absence of suffering. It is true, but only as a matter of observation, and not as
a matter of foregone necessity, that the remission or cessation of a pained condition yields a
pleasure, which we can accept as an element of our happiness no less than when affected with
an impression of a pleasurable origin. In the same manner, when we are under delight, a check
or suspension operates upon the mind like a positive infliction from the beginning, so that out
of pleasure springs pain, and the contrary. Nevertheless we must regard the two modes of mind
as each of a positive and independent character, although possessing those relationships of
mutual opposition. In the conflict of the two, therefore, one will be lost and the other lowered
in its efficacy; the first being pronounced the weaker, and the second the stronger.

Leadership
Define Leadership:
The individuals who are the leaders in an organization, regarded collectively.
The activity of leading a group of people or an organization or the ability to do this.

Leadership involves:

1. establishing a clear vision,

2. sharing that vision with others so that they will follow willingly,
3. providing the information, knowledge and methods to realize that vision, and
4. Coordinating and balancing the conflicting interests of all members and stakeholders.

A leader steps up in times of crisis, and is able to think and act creatively in difficult situations.
Theories of Leadership:

1. "Great Man" Theories

Have you ever heard someone described as "born to lead?" According to this point of view,
great leaders are simply born with the necessary internal characteristics such as charisma,
confidence, intelligence, and social skills that make them natural-born leaders.

Great man theories assume that the capacity for leadership is inherent – that great leaders are
born, not made. These theories often portray great leaders as heroic, mythic and destined to
rise to leadership when needed. The term "Great Man" was used because, at the time, leadership
was thought of primarily as a male quality, especially in terms of military leadership.

2. Trait Theories

Similar in some ways to Great Man theories, trait theories assume that people inherit certain
qualities and traits that make them better suited to leadership. Trait theories often identify
particular personality or behavioral characteristics shared by leaders. For example, traits like
extraversion, self-confidence, and courage are all traits that could potentially be linked to great
leaders.

If particular traits are key features of leadership, then how do we explain people who possess
those qualities but are not leaders? This question is one of the difficulties in using trait theories
to explain leadership. There are plenty of people who possess the personality traits associated
with leadership, yet many of these people never seek out positions of leadership.

3. Contingency Theories

Contingency theories of leadership focus on particular variables related to the environment that
might determine which particular style of leadership is best suited for the situation. According
to this theory, no leadership style is best in all situations.

Success depends upon a number of variables, including the leadership style, qualities of the
followers and aspects of the situation.

4. Situational Theories
Situational theories propose that leaders choose the best course of action based upon situational
variables. Different styles of leadership may be more appropriate for certain types of decision-
making. For example, in a situation where the leader is the most knowledgeable and
experienced member of a group, an authoritarian style might be most appropriate. In other
instances where group members are skilled experts, a democratic style would be more effective.

5. Behavioral Theories

Behavioral theories of leadership are based upon the belief that great leaders are made, not
born. Consider it the flip-side of the Great Man theories. Rooted in behaviorism, this leadership
theory focuses on the actions of leaders not on mental qualities or internal states. According to
this theory, people can learn to become leaders through teaching and observation.

6. Participative Theories

Participative leadership theories suggest that the ideal leadership style is one that takes the
input of others into account. These leaders encourage participation and contributions from
group members and help group members feel more relevant and committed to the decision-
making process. In participative theories, however, the leader retains the right to allow the input
of others.

7. Management Theories

Management theories, also known as transactional theories, focus on the role of supervision,
organization and group performance. These theories base leadership on a system of rewards
and punishments. Managerial theories are often used in business; when employees are
successful, they are rewarded; when they fail, they are reprimanded or punished. Learn more
about theories of transactional leadership.

8. Relationship Theories

Relationship theories, also known as transformational theories, focus upon the connections
formed between leaders and followers. Transformational leaders motivate and inspire people
by helping group members see the importance and higher good of the task. These leaders are
focused on the performance of group members, but also want each person to fulfill his or her
potential. Leaders with this style often have high ethical and moral standards.
 Characteristics of Leadership:

• Empathy: Creating a legitimate rapport with your staff makes it less likely that
personal issues and resentment can creep in and derail the group. When your team
knows that you are empathetic to their concerns, they will be more likely to work with
you and share in your vision, rather than foster negative feelings.
• Consistency: Being a consistent leader will gain you respect and credibility, which is
essential to getting buy-in from the group. By setting an example of fairness and
credibility, the team will want to act the same way.
• Honesty: Another characteristic of leadership that lends itself to credibility. Those who
are honest, especially about concerns, make it far more likely that obstacles will be
addressed rather than avoided. Honesty also allows for better assessment and growth.
• Direction: Having the vision to break out of the norm and aim for great things --then
the wherewithal to set the steps necessary to get there-- is an essential characteristic of
good leadership. By seeing what can be and managing the goals on how to get there, a
good leader can create impressive change.
• Communication: Effective communication helps keep he team working on the right
projects with the right attitude. If you communicate effectively about expectations,
issues and advice, your staff will be more likely to react and meet your goals.
• Flexibility: Not every problem demands the same solution. By being flexible to new
ideas and open-minded enough to consider them, you increase the likelihood that you
will find the best possible answer. You will set a good example for your team and
reward good ideas.
• Conviction: A strong vision and the willingness to see it through is one of the most
important characterizes of leadership. The leader who believes in the mission and works
toward it will be an inspiration and a resource to their followers.