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PRESENTED BY :
PRAVEEN JAIN & SAURABH WADHWA
        ROLL NO. 835 & 847
MOTIVE
―A MOTIVE IS AN INNER STATE
 THAT ENERGISES, ACTIVATES OR
 MOVES AND THAT DIRECTS
 BEHAVIOUR TOWARDS GOALS‖
 BY BERNARD BERELSON & GARRY A. STEINER
MOTIVATION
―MOTIVATION IS THE COMPLEX FORCES
 STARTING & KEEPING A PERSON AT
 WORK IN AN ORGANISATION.
 MOTIVATION IS SOMETHING THAT
 MOVES THE PERSON TO ACTION &
 CONTINUES HIM IN THE COURSE OF
 ACTION ALREADY INITIATED‖.
                BY ROBERT DUBIN
NATURE OF MOTIVATION

   BASED ON MOTIVES
   GOAL-DIRECTED BEHAVIOUR
   RELATED TO SATISFACTION
   PERSON MOTIVATED IN TOTALITY
   COMPLEX PROCESS
MOTIVATION AND BEHAVIOUR


                  GOAL-DIRECTED    GOAL-FULFILMENT/
        TENSION   BEHAVIOUR       NEED SATISFACTION
 NEED




                           FAVOURABLE
                           ENVIRONMENT
CONSEQUENCES OF NON-FULFILMENT OF
              NEED
              NON-SATISFACTION OF NEED
FLIGHT                                      APATHY
(EXTERNAL           FRUSTRATION             (INTERNAL
WITHDRAWAL)                                  WITHDRAWAL)

                    AGGRESSION


          INTERNALISED       EXTERNALISED


                 TOWARDS SOURCE      TOWARDS OTHERS


  •FLIGHT                                INANIMATE OBJECT
                            PERSON
  •APATHY
  •AGGRESSION
ROLE OF MOTIVATION
 HIGH PERFORMANCE LEVEL
 LOW EMPLOYEE TURNOVER &
  ABSENTEEISM
 ACCEPTANCE OF
  ORGANISATIONAL
  CHANGES
THEORIES OF MOTIVATION
           MASLOW’S NEED HIERARCHY
• THIS THEORY IS GIVEN BY A.H.MASLOW IN          1943, A
FAMOUS SOCIAL SCIENTIST.

• IN THIS THEROY THE BEHAVIOUR OF AN
INDIVIDUAL AT A PARTICULAR MOMENT IS USUALLY
DETERMINED BY HIS STRONG NEEDS.

• ACCORDING TO THIS THEORY THERE SEEMS TO BE A
HIERARCHY INTO WHICH HUMAN NEEDS ARE ARRANGED.
                                           SELF-ACTUALISATION
                                  ESTEEM
                         SOCIAL
                SAFETY
PHYSIOLOGICAL
• PHYSIOLOGICAL NEEDS :- IT INCLUDES THOSE
NEEDS WHICH A MAN NEEDS TO SATISFY FIRST OF ALL IN
ORDER TO REMAIN ALIVE.

• SAFTEY NEEDS :- IT MEANS PHYSICAL, ECONOMIC
AND PSYCOLOGICAL.

• SOCIAL NEEDS :- AS A MAN IS SOCIAL BEING, HE
HAS A TO LIVE IN SOCIETY WITH HONOUR.

• ESTEEM NEEDS :- THEY ARE ALSO CALLED EGO
NEEDS OF A MAN. IT IS CONCERNED WITH SELF-RESPECT,
PRESTIGE, POWER, CONTROL ETC.

• SELF ACTUALISATION NEEDS :- THIS IS
RELATED WITH THE DEVELOPMENT OF INNER CAPABILITIES.
IT MEANS THAT A MAN SHOULD BECOME WHAT HE IS
CAPABLE OF.
CRITICISM
   THE CHAIN OF NEED HIERARCHY THEORY OF
    MASLOW IS NOT PERMANENT. THIS UNDERGOES
    CHANGES ACCORDING TO THE SITUATIONS.

   IT IS NOT NECESSARY THAT THE NEEDS OF ONE
    CATEGORY MAY BE STRONGER AT A TIME AND THE
    OTHER NEEDS REMAIN UNEMPORTANT.

   A PERSON TRIES FOR HIS HIGHER LEVEL NEED
    WHEN HIS LOWER LEVEL NEED IS REASONABLE
    SATISFIED. NOW QUESTION ARISES THAT WHAT IS
    THE REASONABLE LEVEL. LEVEL OF SATISFACTION
    FOR PARTICULAR NEED MAY DIFFER FROM PERSON
    TO PERSON.
HERZBERG’S MOTIVATION-
        HYGIENE THEROY

   THIS THEROY WAS GIVEN BY PROF. FREDERICK
    HERZBERG.

   THIS STUDY CONSISTS AN INTENSIVE AN ANALYSIS
    OF THE EXPERIENCE & FEELINGS OF 200 ENGINEERS
    & ACCOUNTANTS IN 9 DIFFERENT COMPANIES IN
    PITTSBURG AREA,U.S.A.

   ON ANALYSING THE INFORMATION FROM THE
    INTERVIEW, HERZBERG CONCLUDED THAT THERE
    WERE 2 CATEGORIES OF JOB CONDITION WHICH
    EFFECTS INDIVIDUAL BEHAVIOUR.
HYGIENE OR MAINTENANCE FACTORS :-
ACCORDING TO HERZBERG, THERE ARE TEN HYGIENE
FACTORS. THESE ARE COMPANY POLICY &
ADMINISTRATION, TECHNICAL SUPERVISION, MUTUAL
RELATIONSHIP WITH SUPERIORS, MUTUAL RELATIONS
WITH TEAM MEMBERS MUTUAL RELATIONS WITH
SUBORDINATES, SALARY, JOB SECURITY, PERSONAL
LIFE, WORKING CONDITIONS & STATUS.

MOTIVATIONAL FACTORS :-

ACCORDING TO HERZBERG, THERE ARE SIX FACTORS
THAT MOTIVATES THE EMPLOYEES. THESE ARE
ACHIEVEMENT, RECOGNITION, ADVANCEMENT, WORK
ITSELF, OPPORTUNITIES FOR GROWTH AND
RESPONSIBILITY.
CRITICISM
   JOB SATISFACTION AND DISSATISFACTION ARE
    TWO OPPOSITE POINTS. INDIVIDUALS ON THE JOBS
    ARE AFFECTED BY ANY CHANGE EITHER IN THE JOB
    ENVIRONMENT OR IN THE JOB CONTENT.

   HERZBERG‘S MODEL IS ‗METHOD BOUND‘.

   THIS THEORY DOES NOT GIVE MUCH IMPORTANCE
    TO PAY, STATUS OR INTERPERSONAL
    RELATIONSHIPS WHICH ARE HELD GENERALLY AS
    IMPORTANT CONTENT OF SATISFACTION.
COMPARISION OF HERZBERG AND
          MASLOW MODELS
   BOTH MODELS FOCUS THEIR ATTENTION ON THE
    SAME RELATIONSHIP THAT IS WHAT MOTIVATES AN
    INDIVIDUAL BEHAVIOUR.

   MASLOW HAS GIVEN THAT ANY UNSATISFIED NEED
    BECOMES A MOTIVATING FACTOR FOR INDIVIDUAL
    WHERE AS HERZBERG HAS SUGGESTED ONLY
    HIGHER LEVEL NEEDS REMAIN MOTIVATING
    FACTOR FOR INDIVIDUAL.
                                              MOTIVATORS

                                           SELF ACTUALISATION
                                  ESTEEM
                         SOCIAL
                SAFETY
PHYSIOLOGICAL      MAINTENANCE
McCLELLAND’S NEED THEORY


   McClelland has identified three types of basic
    motivating needs. He classified these as :
   Need for power
   Need for affiliation
   Need for achievement
Power Motive
The ability to induce or influence behaviour is
 power. Power motive has been formally
 recognised and studied for a relatively long
 time. People with a high power need have a
 great concern for exercising influence and
 control. Such individuals generally seek
 positions of leadership; they involve in
 conversation; they are forceful, outspoken,
 hard headed, and demanding.
Affiliation Motive
   Since people are social animals, most
    individuals like to interact and be with others
    in situations where they feel belong and are
    accepted. Sometimes, affiliation is equated
    with social motives. People with high need for
    affiliation usually derive pleasure from being
    loved and tend to avoid the pain of being
    rejected. They are concerned with maintaining
    pleasant social relationship, enjoying a sense
    of intimacy and understanding, and enjoy
    consoling and helping others in trouble.
Achievement Motive
    The need for achievement is a distinct human
     motive that can be distinguished from other
     needs. It can also be isolated and assessed in
     any group. McClelland has identified four
     basic characteristics of high achievers.
1.    Moderate Risks
2.    Immediate Feedback
3.    Accomplishment
4.    Preoccupation with the tasks.
ALDERFER’S ERG
          THEORY
 Alderfer believes that there is a value in categorising
  needs and that there is a basic distinction between
     lower-order needs and higher-order needs.

 The first three letters of these needs are used to call it
                       ERG theory.
• Existence Needs.

• Relatedness Needs.

• Growth Needs.
   Existence Needs :- Existence needs include all needs
    related to physiological & safety aspects of an
    individual.

   Relatedness Needs:- Relatedness needs include all
    those needs that involve relationship with other
    people whom the individual cares.

   Growth Needs:- Growth needs involve the individual
    making creative efforts to achieve full potential in the
    existing environment.
VROOM’S EXPECTANCY
             THEORY
   Vroom‘s expectancy theory has its roots in the
    cognitive concepts in the behaviour & utility concepts
    of classical economic theory. Acc to vroom, people
    will be motivated to do things to achieve some goals
    to the extent that they expect that certain actions on
    their part will help them to achieve the goal. Vroom‘s
    is built around the concepts of value, expectancy, and
    force; its basic assumption is that the choice made by
    a person among alternative courses of action is
    lawfully related to psychological events occurring
    with the behaviour.
   Valence :- It means the strength of an individual‘s
    preference to a particular outcome.

   Instrumentality :- Another major input into the
    valence is the instrumentality of the first-level
    outcome in obtaining a derived second-level outcome.

   Expectancy :- It is the probability that a particular
    action will lead to a particular first-level outcome.
    The strength of motivation to perform a certain act
    will depend on the sum of the products of the values
    for the outcomes times the expectancies.
PORTER-LAWLER MODEL OF MOTIVATION
   Built in large part on expectancy model, Porter
    and Lawler have derived a substantially more
    complete model of motivation and have
    applied it in their study primarily of managers.
    They propose a multivariate model to explain
    the complex relationship that exists between
    job attitudes and job performance. Their model
    encounters some of the simplistic traditional
    assumptions made about the positive
    relationship between satisfaction and
    performance.
   Effort :-
              Effort refers to the amount of energy
    exerted by an employee on a given task. These
    two factors- value of reward and perception of
    effort-reward probability– determine the
    amount of effort that the employee will put in.
   Performance :-
              Efforts leads to performance but both
    of these may not be equal, rather, performance
    is determined by the amount of effort and the
    ability and role perception of the individual.
   Rewards :- Performance is seen as leading to
    intrinsic rewards (such as a sense of
    accomplishment and actualisation) and
    extrinsic rewards ( such as working conditions
    and status). In addition, the perceived equitable
    rewards vitally affect the performance-
    satisfaction relationship.
   Satisfaction :- satisfaction is derived from the
    extent to which actual rewards fall short, meet
    or exceed the individual‘s perceived level of
    equitable rewards. If actual rewards meet or
    exceed perceived equitable rewards.
McGREGOR’S THEORY X
        AND THEORY Y
   Acc. To McGregor, the management‘s action
    of motivating human beings in the
    organisation, involves certain assumptions,
    generalisations, and hypotheses relating to
    human behaviour and human nature. The
    basic assumptions about human behaviour may
    differ considerably because of the complexity
    of factors influencing this behaviour.
    McGregor has characterised these assumptions
    in two opposite points- Theory X & Theory Y.
Theory X
     This is the traditional theory of human behaviour. In this
     theory, McGregor has certain assumptions about human
     behaviour.
1.    Management is responsible for organising the elements of
      productive enterprises--money, materials, equipment,
      people—in the interest of economic ends.
2.    With respect to people, this is a process of directing their
      efforts, motivating them, controlling their actions, modifying
      their behaviour to fit the needs of the organisation.
3.    Without this active intervention by management, people
      would be passive—even resistant—to organisational needs.
      They must be persuaded, rewarded, punished, controlled, and
      their activities must be directed.
4. The average man is by nature indolent—he works as little as
    possible.
5. He lacks ambition, dislikes responsibility, prefer to be led.
6. He is inherently self-centered, indifferent to organisational
    needs.
7. He is, by nature, resistant to change.
8. He is gullible, not very bright, the ready dupe of charlatan and
    the demagogue.
       On these assumptions, managers subscribing these views
    about human nature attempt to structure, control, and closely
    supervise their employees. McGregor believes that these
    assumption about human nature have not changed drastically
    though there is a considerable change in behaviour pattern.
Theory Y
    The assumptions of theory Y are described by McGregor in
     the following words:
1.    The expenditure of physical and mental effort in the work
      is natural as play or rest. The average human being does not
      inherently dislike work. Depending upon controllable
      conditions, work may be a source of satisfaction or a source
      of punishment.
2.    External control and the threat of punishment are not the
      only means for bringing about effort towards organisational
      objectives. Man will exercise self-direction and self-control
      in the service of objectives to which he is committed.
3.    Commitment to objectives is a function of the reward
      associated with their achievement.
4. The average human being learns under proper conditions not
   only to accept , but to seek responsibility.
5. The capacity to exercise a relatively high degree of
   imagination, ingenuity, and creativity in the solution of
   organisational problems is widely, not narrowly, distributed
   in the population.
6. Under the conditions of modern industrial life, the
   intellectual potentialities of the average human beings are
   only partially utilised.
                             The assumptions of Theory Y
   suggest a new approach in management. The attempt is to
   get maximum output with minimum amount of control and
   direction.
THEORY Z
   Theory Z describes the major
    postulates of japanese management
    practices and how these practices can
    be adopted to the environment of
    united states and other countries.
FEATURES OF THEORY Z
   Trust

   Strong bond between organisation & employees

   Employee involvement

   No formal structure

   Coordination of human beings
Motivation Theories and Models Explained

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Motivation Theories and Models Explained

  • 1. PRESENTED BY : PRAVEEN JAIN & SAURABH WADHWA ROLL NO. 835 & 847
  • 2. MOTIVE ―A MOTIVE IS AN INNER STATE THAT ENERGISES, ACTIVATES OR MOVES AND THAT DIRECTS BEHAVIOUR TOWARDS GOALS‖ BY BERNARD BERELSON & GARRY A. STEINER
  • 3. MOTIVATION ―MOTIVATION IS THE COMPLEX FORCES STARTING & KEEPING A PERSON AT WORK IN AN ORGANISATION. MOTIVATION IS SOMETHING THAT MOVES THE PERSON TO ACTION & CONTINUES HIM IN THE COURSE OF ACTION ALREADY INITIATED‖. BY ROBERT DUBIN
  • 4. NATURE OF MOTIVATION  BASED ON MOTIVES  GOAL-DIRECTED BEHAVIOUR  RELATED TO SATISFACTION  PERSON MOTIVATED IN TOTALITY  COMPLEX PROCESS
  • 5. MOTIVATION AND BEHAVIOUR GOAL-DIRECTED GOAL-FULFILMENT/ TENSION BEHAVIOUR NEED SATISFACTION NEED FAVOURABLE ENVIRONMENT
  • 6. CONSEQUENCES OF NON-FULFILMENT OF NEED NON-SATISFACTION OF NEED FLIGHT APATHY (EXTERNAL FRUSTRATION (INTERNAL WITHDRAWAL) WITHDRAWAL) AGGRESSION INTERNALISED EXTERNALISED TOWARDS SOURCE TOWARDS OTHERS •FLIGHT INANIMATE OBJECT PERSON •APATHY •AGGRESSION
  • 7. ROLE OF MOTIVATION  HIGH PERFORMANCE LEVEL  LOW EMPLOYEE TURNOVER & ABSENTEEISM  ACCEPTANCE OF ORGANISATIONAL CHANGES
  • 8. THEORIES OF MOTIVATION MASLOW’S NEED HIERARCHY • THIS THEORY IS GIVEN BY A.H.MASLOW IN 1943, A FAMOUS SOCIAL SCIENTIST. • IN THIS THEROY THE BEHAVIOUR OF AN INDIVIDUAL AT A PARTICULAR MOMENT IS USUALLY DETERMINED BY HIS STRONG NEEDS. • ACCORDING TO THIS THEORY THERE SEEMS TO BE A HIERARCHY INTO WHICH HUMAN NEEDS ARE ARRANGED. SELF-ACTUALISATION ESTEEM SOCIAL SAFETY PHYSIOLOGICAL
  • 9. • PHYSIOLOGICAL NEEDS :- IT INCLUDES THOSE NEEDS WHICH A MAN NEEDS TO SATISFY FIRST OF ALL IN ORDER TO REMAIN ALIVE. • SAFTEY NEEDS :- IT MEANS PHYSICAL, ECONOMIC AND PSYCOLOGICAL. • SOCIAL NEEDS :- AS A MAN IS SOCIAL BEING, HE HAS A TO LIVE IN SOCIETY WITH HONOUR. • ESTEEM NEEDS :- THEY ARE ALSO CALLED EGO NEEDS OF A MAN. IT IS CONCERNED WITH SELF-RESPECT, PRESTIGE, POWER, CONTROL ETC. • SELF ACTUALISATION NEEDS :- THIS IS RELATED WITH THE DEVELOPMENT OF INNER CAPABILITIES. IT MEANS THAT A MAN SHOULD BECOME WHAT HE IS CAPABLE OF.
  • 10. CRITICISM  THE CHAIN OF NEED HIERARCHY THEORY OF MASLOW IS NOT PERMANENT. THIS UNDERGOES CHANGES ACCORDING TO THE SITUATIONS.  IT IS NOT NECESSARY THAT THE NEEDS OF ONE CATEGORY MAY BE STRONGER AT A TIME AND THE OTHER NEEDS REMAIN UNEMPORTANT.  A PERSON TRIES FOR HIS HIGHER LEVEL NEED WHEN HIS LOWER LEVEL NEED IS REASONABLE SATISFIED. NOW QUESTION ARISES THAT WHAT IS THE REASONABLE LEVEL. LEVEL OF SATISFACTION FOR PARTICULAR NEED MAY DIFFER FROM PERSON TO PERSON.
  • 11. HERZBERG’S MOTIVATION- HYGIENE THEROY  THIS THEROY WAS GIVEN BY PROF. FREDERICK HERZBERG.  THIS STUDY CONSISTS AN INTENSIVE AN ANALYSIS OF THE EXPERIENCE & FEELINGS OF 200 ENGINEERS & ACCOUNTANTS IN 9 DIFFERENT COMPANIES IN PITTSBURG AREA,U.S.A.  ON ANALYSING THE INFORMATION FROM THE INTERVIEW, HERZBERG CONCLUDED THAT THERE WERE 2 CATEGORIES OF JOB CONDITION WHICH EFFECTS INDIVIDUAL BEHAVIOUR.
  • 12. HYGIENE OR MAINTENANCE FACTORS :- ACCORDING TO HERZBERG, THERE ARE TEN HYGIENE FACTORS. THESE ARE COMPANY POLICY & ADMINISTRATION, TECHNICAL SUPERVISION, MUTUAL RELATIONSHIP WITH SUPERIORS, MUTUAL RELATIONS WITH TEAM MEMBERS MUTUAL RELATIONS WITH SUBORDINATES, SALARY, JOB SECURITY, PERSONAL LIFE, WORKING CONDITIONS & STATUS. MOTIVATIONAL FACTORS :- ACCORDING TO HERZBERG, THERE ARE SIX FACTORS THAT MOTIVATES THE EMPLOYEES. THESE ARE ACHIEVEMENT, RECOGNITION, ADVANCEMENT, WORK ITSELF, OPPORTUNITIES FOR GROWTH AND RESPONSIBILITY.
  • 13. CRITICISM  JOB SATISFACTION AND DISSATISFACTION ARE TWO OPPOSITE POINTS. INDIVIDUALS ON THE JOBS ARE AFFECTED BY ANY CHANGE EITHER IN THE JOB ENVIRONMENT OR IN THE JOB CONTENT.  HERZBERG‘S MODEL IS ‗METHOD BOUND‘.  THIS THEORY DOES NOT GIVE MUCH IMPORTANCE TO PAY, STATUS OR INTERPERSONAL RELATIONSHIPS WHICH ARE HELD GENERALLY AS IMPORTANT CONTENT OF SATISFACTION.
  • 14. COMPARISION OF HERZBERG AND MASLOW MODELS  BOTH MODELS FOCUS THEIR ATTENTION ON THE SAME RELATIONSHIP THAT IS WHAT MOTIVATES AN INDIVIDUAL BEHAVIOUR.  MASLOW HAS GIVEN THAT ANY UNSATISFIED NEED BECOMES A MOTIVATING FACTOR FOR INDIVIDUAL WHERE AS HERZBERG HAS SUGGESTED ONLY HIGHER LEVEL NEEDS REMAIN MOTIVATING FACTOR FOR INDIVIDUAL. MOTIVATORS SELF ACTUALISATION ESTEEM SOCIAL SAFETY PHYSIOLOGICAL MAINTENANCE
  • 15. McCLELLAND’S NEED THEORY  McClelland has identified three types of basic motivating needs. He classified these as :  Need for power  Need for affiliation  Need for achievement
  • 16. Power Motive The ability to induce or influence behaviour is power. Power motive has been formally recognised and studied for a relatively long time. People with a high power need have a great concern for exercising influence and control. Such individuals generally seek positions of leadership; they involve in conversation; they are forceful, outspoken, hard headed, and demanding.
  • 17. Affiliation Motive  Since people are social animals, most individuals like to interact and be with others in situations where they feel belong and are accepted. Sometimes, affiliation is equated with social motives. People with high need for affiliation usually derive pleasure from being loved and tend to avoid the pain of being rejected. They are concerned with maintaining pleasant social relationship, enjoying a sense of intimacy and understanding, and enjoy consoling and helping others in trouble.
  • 18. Achievement Motive  The need for achievement is a distinct human motive that can be distinguished from other needs. It can also be isolated and assessed in any group. McClelland has identified four basic characteristics of high achievers. 1. Moderate Risks 2. Immediate Feedback 3. Accomplishment 4. Preoccupation with the tasks.
  • 19. ALDERFER’S ERG THEORY Alderfer believes that there is a value in categorising needs and that there is a basic distinction between lower-order needs and higher-order needs. The first three letters of these needs are used to call it ERG theory. • Existence Needs. • Relatedness Needs. • Growth Needs.
  • 20. Existence Needs :- Existence needs include all needs related to physiological & safety aspects of an individual.  Relatedness Needs:- Relatedness needs include all those needs that involve relationship with other people whom the individual cares.  Growth Needs:- Growth needs involve the individual making creative efforts to achieve full potential in the existing environment.
  • 21. VROOM’S EXPECTANCY THEORY  Vroom‘s expectancy theory has its roots in the cognitive concepts in the behaviour & utility concepts of classical economic theory. Acc to vroom, people will be motivated to do things to achieve some goals to the extent that they expect that certain actions on their part will help them to achieve the goal. Vroom‘s is built around the concepts of value, expectancy, and force; its basic assumption is that the choice made by a person among alternative courses of action is lawfully related to psychological events occurring with the behaviour.
  • 22. Valence :- It means the strength of an individual‘s preference to a particular outcome.  Instrumentality :- Another major input into the valence is the instrumentality of the first-level outcome in obtaining a derived second-level outcome.  Expectancy :- It is the probability that a particular action will lead to a particular first-level outcome. The strength of motivation to perform a certain act will depend on the sum of the products of the values for the outcomes times the expectancies.
  • 23. PORTER-LAWLER MODEL OF MOTIVATION  Built in large part on expectancy model, Porter and Lawler have derived a substantially more complete model of motivation and have applied it in their study primarily of managers. They propose a multivariate model to explain the complex relationship that exists between job attitudes and job performance. Their model encounters some of the simplistic traditional assumptions made about the positive relationship between satisfaction and performance.
  • 24. Effort :- Effort refers to the amount of energy exerted by an employee on a given task. These two factors- value of reward and perception of effort-reward probability– determine the amount of effort that the employee will put in.  Performance :- Efforts leads to performance but both of these may not be equal, rather, performance is determined by the amount of effort and the ability and role perception of the individual.
  • 25. Rewards :- Performance is seen as leading to intrinsic rewards (such as a sense of accomplishment and actualisation) and extrinsic rewards ( such as working conditions and status). In addition, the perceived equitable rewards vitally affect the performance- satisfaction relationship.  Satisfaction :- satisfaction is derived from the extent to which actual rewards fall short, meet or exceed the individual‘s perceived level of equitable rewards. If actual rewards meet or exceed perceived equitable rewards.
  • 26. McGREGOR’S THEORY X AND THEORY Y  Acc. To McGregor, the management‘s action of motivating human beings in the organisation, involves certain assumptions, generalisations, and hypotheses relating to human behaviour and human nature. The basic assumptions about human behaviour may differ considerably because of the complexity of factors influencing this behaviour. McGregor has characterised these assumptions in two opposite points- Theory X & Theory Y.
  • 27. Theory X This is the traditional theory of human behaviour. In this theory, McGregor has certain assumptions about human behaviour. 1. Management is responsible for organising the elements of productive enterprises--money, materials, equipment, people—in the interest of economic ends. 2. With respect to people, this is a process of directing their efforts, motivating them, controlling their actions, modifying their behaviour to fit the needs of the organisation. 3. Without this active intervention by management, people would be passive—even resistant—to organisational needs. They must be persuaded, rewarded, punished, controlled, and their activities must be directed.
  • 28. 4. The average man is by nature indolent—he works as little as possible. 5. He lacks ambition, dislikes responsibility, prefer to be led. 6. He is inherently self-centered, indifferent to organisational needs. 7. He is, by nature, resistant to change. 8. He is gullible, not very bright, the ready dupe of charlatan and the demagogue. On these assumptions, managers subscribing these views about human nature attempt to structure, control, and closely supervise their employees. McGregor believes that these assumption about human nature have not changed drastically though there is a considerable change in behaviour pattern.
  • 29. Theory Y  The assumptions of theory Y are described by McGregor in the following words: 1. The expenditure of physical and mental effort in the work is natural as play or rest. The average human being does not inherently dislike work. Depending upon controllable conditions, work may be a source of satisfaction or a source of punishment. 2. External control and the threat of punishment are not the only means for bringing about effort towards organisational objectives. Man will exercise self-direction and self-control in the service of objectives to which he is committed. 3. Commitment to objectives is a function of the reward associated with their achievement.
  • 30. 4. The average human being learns under proper conditions not only to accept , but to seek responsibility. 5. The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the solution of organisational problems is widely, not narrowly, distributed in the population. 6. Under the conditions of modern industrial life, the intellectual potentialities of the average human beings are only partially utilised. The assumptions of Theory Y suggest a new approach in management. The attempt is to get maximum output with minimum amount of control and direction.
  • 31. THEORY Z  Theory Z describes the major postulates of japanese management practices and how these practices can be adopted to the environment of united states and other countries.
  • 32. FEATURES OF THEORY Z  Trust  Strong bond between organisation & employees  Employee involvement  No formal structure  Coordination of human beings