2. INTRODUCTION
Management is the art of getting things done by others.
Getting work done is a difficult task. It is related to human
behaviour.
The success of any organisation depends upon the behaviour
and the interest of the employees.
Human behaviour is the outcome of motives.
It is needs and desires that cause and bring about motivation
which becomes apparent in observed behaviour.
In order to motivate his subordinates, a manager has to find
answers to several questions, e.g., What makes people
work? Why some persons perform better than others? Why
does the same individual act differently at different times?

3. MOTIVATION- Meaning
The term motivation has been derived from the word motive.
Motive is anything that initiates or sustains activity.
Motivation may be defined as the work a manager performs
in order to induce subordinates to act in the desired manner
by satisfying their needs and desires. Thus, motivation is
concerned with how behaviour gets started, is energised,
sustained and directed.
Motivation is a general inspirational process which gets the
members of the team to pull their weight effectively, to give
their loyalty to the group, to carry out properly the tasks that
they have accepted and generally to play an effective part in
the job that the group has undertaken.

4. DEFINITIONS OF MOTIVATION
There are many definitions of motivation. Some of which are
as follows:
Eduir B. Flippo, “ Motivation is the process of attempting to
influence others to do your will through the possibility of gain
reward.”
Koontz and O’Donnell, “Motivation is a general term applying
to the entire class of drives, desires, needs, wishes and
similar forces that induce an individual or a group of people to
work.”
Stanley Vance defines motivation as, “any emotion or desire
which so conditions one’s will that the individual is propelled
into action.”
“ Motivation refers to the degree of readiness of an organism
to pursue some destinated goal, and implies the
determination of the nature and locus of the forces inducing
the degree of readiness.”
-The Encyclopedia of

5. Unending process
A psychological concept
The whole individual is motivated
Motivation may be financial or non-financial
Frustrated man cannot be motivated
Goals are motivators
Unifying forces
Motivation can be positive or negative
Motivation and job satisfaction are different
NATURE OF
MOTIVATION

6. IMPORTANCE OF
MOTIVATION
Higher efficiency
Optimum utilisation of resources
Reduction in labour turnover
Better industrial relations
Easier selection
Facilitates change

7. TECHNIQUES OF
MOTIVATION
Carrot and Stick Approach to Motivation
This approach is based upon the old belief that the best way
to get work from a person is to put a reward (carrot) before
him or to hold out the threat of punishment (stick). Carrot is
the reward for working and stick is the punishment for not
working.
Motivation Through Job Enrichment
Job enrichment may be defined as an attempt to design jobs
in such a way as to build in the opportunity for achievement,
recognition, responsibility and personal growth. Job
enrichment involves designing jobs with variety of work
content that requires a high level of knowledge and skill.

8. Other Techniques:
Monetary incentives
Job-based techniques
MBO technique
Leadership technique
Sensitivity

9. THEORIES OF MOTIVATION
Some of the popular theories of motivation are
Maslow’s Need Priority Model
Herzberg’s Two-Factor Theory
McGregor’s Theory X and Theory Y
Ouchi’s Theory Z
Achievement Motivation Model
Adam’s Equity Theory
Vroom’s Expectancy Theory
Transactional Analysis

10. 1. Maslow’s Need Priority Model
Abraham H. Maslow, an eminent American
psychologist, developed general theory of motivation,
also called “ Need hierarchy theory”.
Salient features are:
The urge to fulfill needs is a prime factor in motivation.
Human needs form a particular structure or hierarchy.
A higher level need does not become an active
motivating force until the preceding lower-order needs
are satisfied.
As soon as one need is satisfied, another need
emerges.
A satisfied need is not a motivator.
Various need levels are interdependent and
overlapping.

12. 2. Herzberg’s Two-Factor
Theory
According to Herzberg, maintenance or hygiene factors are
necessary to maintain a reasonable level of satisfaction
among employees. These are not intrinsic parts of a job but
they are related to conditions under which a job is performed.
These factors do not provide satisfaction to the employees
but their absence will dissatisfy them.
On the other hand, motivational factors are intrinsic parts of
the job. Any increase in these factors will satisfy the
employees and help to improve performance. But a decrease
in these factors will not cause dissatisfaction.
Herzberg noted that two sets of factors are uni-dimensional.
It is also related to the personality of the individual who may
be either a ‘motivation seeker’ or a ‘maintenance seeker’.

14. 3. McGregor’s Theory X and Theory Y
Prof. Douglas McGregor has developed a theory of motivation
on the basis of hypothesis relating to human behavior. There
are two sets of assumptions which McGregor has described
as Theory X and Theory Y.
Theory X Theory Y
Inherent dislike for work
Unambitious and prefer to be
directed by others
Lack creativity and resist change
Focus on lower level (
physiological and safety) needs
to motivate workers.
Work is natural like rest and play
Ambitious and capable of directing
their own behavior
Creativity widely spread
Both lower level and higher order
needs like social, esteem and self-
actualization are sources of
motivation

15. Contd..
Theory X Theory Y
External control and close
supervision required to achieve
organizational objectives
Centralization of authority and
autocratic leadership
People lack self- motivation.
Self-direction and self control
Decentralization and participation
in decision-making. Democratic
leadership.
People are self-motivated.

16. 4. Theory Z
William Ouchi developed Theory Z after making
comparative study of Japanese and American
management practices.
Theory Z is an integrated model of motivation.
A type Z organization has three major features- trust,
subtlety and intimacy.
The distinguishing features of Theory Z are :
Trust
Strong Bond between Organization and Employees
Employee Involvement
Integrated Organization
Coordination
Informal Control system

17. 5.Achievement Motivation Model
McClelland has identified three types of human needs,
namely, the need for achievement (n Ach), the need for
affiliation (n Aff) and the need for power (n P).
Achievement Motive
Some people have an intensive desire to achieve for the sake
of achievement.
Power Motive
It refers to the need to influence and control people. People
with high need for power seek positions of leadership.
Affiliation Motive
The need for affiliation reflects a desire to interact socially
with people.
Persons with a high need for affiliation usually desire
pleasure from being loved and tend to avoid the pain of being
rejected.

19. 6. Adam’s Equity theory
The theory is based on the assumption that members of
an organization expect justice, balance and fairness in
treatment by their employers.
Inputs are the contributions which an individual
perceives that he puts into his job.
Outcomes are the rewards which an individual receives
from the organization and from his job.
When the individual feels that outcomes he receives
from the organization are fair in terms of his inputs, he
is satisfied and motivated.
Equity = Person’s outcomes = Others
outcomes
Person’s inputs Others inputs.

21. Merits and demerits
Merits
It tells managers that equity motive is one of the important
motives of employee.
Perceptions and feelings are as important in motivation as
facts.
While determining a wage and salary structure in the
organization managers must pay attention to equity
considerations.
Demerits
This theory is easily understood but its application is difficult.
The process by which individuals decide whom to compare
themselves with is not clear.
Equity theory is not a complete theory of motivation but deals
only with one particular aspect (equity) of motivation.

22. 7. Vroom’s Expectancy Theory
Valence
Valence implies the strength of a person’s desire or
preference or a particular outcome.
It is importance or value that an individual places on the
potential outcome or reward.
Expectancy
It implies the extent to which a person believes that his effort
will lead to high performance.
Managers can improve expectancy by matching jobs to
people.
Instrumentality
It implies the degree to which a first level outcome will lead to
a desired second level outcome.
It is simply the relationship between first level outcome and
second level outcome.

23. 8. Transactional Analysis
Transactional Analysis refers to the examination or study of
the transactions which take place between two individuals.
Transactional analysis is a method of analyzing and
understanding interpersonal behavior.
TA is based on the hypothesis that a person has a multiple
nature.
In order to understand TA Ego states, life positions and types
of transactions should be considered.
A. Ego States
This refers to individual behavioral make-up. They are of 3 types
.
1. Parental ego state
― the values and behavior of parents are recorded in the
mind of the child and these become the parental ego state
of the personality.
― tend to be over-protective, authoritative, impatient and
upright.

24. Contd..
2. Adult ego state
― reflected in behavior which is rational, analytical and logically
weighing the pros and cons of a decision making situation.
3. Child ego state
― characterized by emotion, impulsiveness, anxiety, fear and
conformity.
B. Life positions
They refer to the dominant philosophy of an individual.
It is tied to an individual’s identity, sense of worth and his
perceptions of other people.
I am O.K.
You Are O.K.
I am Not O.K.
You Are O.K.
I am O.K
You Are Not O.K.
I am Not O.K.
You Are Not O.K.
You are O.K.
You Are not O.K.
I am
O.K.
I am
not
O.K.

25. Contd..
I am O.K. You Are O.K
This is the ideal life position as it is rational based on adult
ego state.
People with this life position show confidence and
competence and feel that life is worth living.
Managers with this life position tend to be effective and tend
to delegate authority.
I am O.K. You Are Not O.K.
This position is found among people who feel victimised or
persecuted.
Look upon the whole world as their enemies.
Managers operating with this life position are too much task-
oriented.
They do not care for the feelings and emotions of others.

26. Contd..
I am Not O.K. You Are O.K.
This position is found among persons who feel powerless in
comparison to others.
Managers with this position tend to be too much relations-
oriented.
Their feelings and emotions guide their actions. They tend to
be unpredictable and erratic.
I am Not O.K. You Are Not O.K.
This is a desperate life position found in persons who are
seriously neglected by their parents and are brought up by
servants.
They are indifferent towards people and feel that life is not
worth living at all.
Managers having this life position tend to be indecisive and
provocative
They are neither results oriented not task oriented.

28. C. Types of transactions
Depending on the ego states of the persons involved in a
transaction, there are two main types:
1. Complementary transactions.
When the stimulus and response patterns from one ego
state to another are parallel, a transaction is known as
complementary.
The transaction is said to be complementary because the
stimulus (S) gets the expected response(R).
In such a case, both persons are usually satisfied and
communication is complete.
Out of the nine complementary transactions, adult-adult and
parent-child transactions are most desirable.

29. Contd..
2. Cross transactions
In a cross transaction stimulus –response lines are not
parallel.
This happens when stimulus does not get the expected
result.
A cross transaction is not desirable because the line of
communication is blocked and further interaction does not
take place.

30. Advantages of Transactional Analysis
Developing positive thinking.
Interpersonal Effectiveness
Motivation
Organizational development.

32. PERFORMANCE APPRAISAL
MEANING
Performance appraisal means the systematic
evaluation of the performance of an employee by an
expert or his immediate subordinate
DEFINITION
Edwin B. Flippo, “ Performance appraisal is a
systematic, periodic and so far as humanly possible, an
important rating of an employee excellence in matters
pertaining to his present job and to his potentialities for
a better job.”

33. IMPORTANCE OF PERFORMANCE
APPRAISAL
Helps the manager to take decision about the salary
increase of an employee.
Improving quality of an employee in job performance.
Minimizes communication gap.
Training needs can be identified.
Decision for discharging an employee from job can also
be taken.
Grievances of an employee are eliminated.
Job satisfaction is achieved through performance
appraisal.
Improves employer and employee relationship.

34. METHODS OF PERFORMANCE APPRAISAL
1.Ranking method
Very old and simple form.
Am employee is ranked against each other in the working
group.
2. Paired comparison method
Each employee is compared with other taking only one at a
time.
The evaluator compares two employees and puts a tick mark
against an employee whom he considers a better employee.
An employee who gets maximum ticks for being a better
employee is considered the best employee.
The number of comparison is calculated by a formula n(n-1) /
2, where ‘n’ stands for the number of persons to be compared.

35. Contd..
3. Forced Distribution Method.
A method which forces the rater to distribute the ratings of the
overall performance of an employee is forced distribution
method.
Groupwise rating is done under this method.
4. Grading.
Certain categories of abilities or performance of employees are
defined well in advance to fall in certain grades under this
method.
Such grades are very good, good, average, poor, very poor.
5. Check list.
The appraisal of the ability of an employee through getting
answers for a number of questions is called the method of
check list.
These questions are related to the behavior of an employee .

36. Contd..
6. Forced Choice Method.
A series of groups of statements are prepared positively or
negatively under this method.
The rater is forced to tick any one of the statements either out
of positive statements or negative statements.
The final raring is done on the basis of all such statements.
But the rater doesn’t know the statements which are for final
rating.
7.Critical Incident Method.
The performance of an employee is done on the basis of the
incidents occurred really to the concerned employee.
Some incidents may occurred due to the inability of the
employee.
But the rating is done on all the events occurred in particular
period.

37. Contd..
8. Graphic Rating Scales
Graphic rating scale is a chart that presents the list of qualities
and the range of degree for each quality.
Numerical qualities are assigned to each quality on the scale.
Discrete Scale ― in which two or more categories representing discrete
degrees of ability are given.
Continuous Scale ― wherein an uninterrupted line is given and the rater
can tick at any point along its length.
9.Field Review Method
An employee’s performance is appraised through an interview
between the rater and the immediate superior or supervisor of a
concerned employee.

38. MODERN METHODS
1. Assessment Centers
Many organizations use assessment centers to predict
the future performance more accurately.
In an assessment centre, individuals from different
departments are brought together. They are given
assignments similar to the ones they will be handling
after promotion.
A number of persons observe them working.
The probed judgment of observers leads to an order of
merit ranking for each participant.
The major competencies that are judged in assessment
centers are interpersonal skills, intellectual capability,
planning and organizing capabilities, motivation, career
orientation etc.

39. Contd..
2. Behaviorally Anchored Rating Scale
Behaviorally Anchored Rating Scales (BARS) is a
relatively new technique which combines the graphic rating
scale and critical incidents method.
It consists of predetermined critical areas of job
performance or sets of behavioral statements describing
important job performance qualities as good or bad.
These statements are developed from critical incidents.
Developing and practicing BARS requires expert
knowledge.

40. DEVELOPING BARS
Examples of effective and ineffective behaviour related to job are
collected from people with knowledge of job using the critical
incident technique.
These data are then converted into performance dimensions.
A group of subject matter experts (SMEs) are asked to re-translate
the behavioural examples back into their respective performance
dimensions.
The retained behaviours are then scaled by having SMEs rate the
effectiveness of each behaviour. These ratings are usually done on
a 5- to 9-point scale.
Behaviours with a low standard deviation are retained while
behaviours with a higher standard deviation are discarded.
Finally, behaviours for each performance dimensions, all meeting
re-translation and criteria, will be used as scale anchors.

41. Contd..
3. Human Resource Accounting Method
Human resource accounting may be defined as the
measurement and reporting of the costs incurred to recruit,
hire, train and develop employees and their present economic
value to the organization.
Main methods of measuring the value of human resources are:
A. Historical or Actual Costs Methods
B. Replacement Cost Method
C. Standard cost Method
D. Current Purchasing Power Method
E. Present Value Method.
The difference between the cost and the contribution will be
the performance of the employees.
Ideally, the contribution of the employees should be greater
than the cost incurred on them.

42. Contd..
4. 360 ˚ Performance Appraisal
360 degree feedback, also known as 'multi-rater feedback', is
the most comprehensive appraisal where the feedback about
the employees’ performance comes from all the sources that
come in contact with the employee on his job.
360 degree appraisal has four integral components:
A) Self appraisal
B) Superior’s appraisal
C) Subordinate’s appraisal
D) Peer appraisal.
It provides a "360-degree review" of the employees’
performance and is considered to be one of the most credible
performance appraisal methods.
Some of the organizations following it are Wipro, Infosys, and
Reliance Industries etc.

43. Pros and Cons of 360-Degree Appraisal
PROS
◦ The system is more comprehensive in that responses are
gathered from multiple perspectives.
◦ Quality of information is better.
◦ It may lessen bias/prejudice since feedback comes from
more people, not one individual.
◦ Feedback from peers and others may increase employee
self-development.
CONS
 The system is complex in combining all the responses.
 There may be conflicting opinions, though they may all be
accurate from the respective standpoints.
 The system requires training to work effectively.
 Appraisers may not be accountable if their evaluations are
anonymous.

44. Contd..
5. Management By Objective
It is a process of defining objectives within an organization so
that management and employees agree to the objectives and
understand what they need to do in the organization in order to
achieve them.
The term "management by objectives" was first popularized
by Peter Drucker in his 1954 book The Practice of Management.
The essence of MBO is participative goal setting, choosing
course of actions and decision making.
Features of MBO
Motivation
Better communication and coordination
Clarity of goals
Higher commitment to objectives
Common goal for whole organization

47. JOB DESIGN- JOB DESCRIPTION – JOB ANALYSIS- JOB
EVALUATION

48. Job design
Definition:
Process of deciding
―on the content of a job in terms of its duties and responsibilities;
―on the methods to be used in carrying out the job, in terms of
techniques, systems and procedures;
―on the relationships that should exist between the job holder
and his superiors, subordinates and colleagues.
Goals of Job Design
to meet the organizational requirements
To satisfy the needs of the individual employees
To integrate the needs of the individual with the organizational
requirements.

49. Job Analysis
Job analysis deals with the contents and characteristics of
each job.
Job analysis points out the duties and responsibilities involved
in each job.
Jo analysis discloses the conditions under which each job is
performed and the element of risk involved in them.
Procedure of job analysis
All job holders are requested to fill up the questionnaire
supplied by the management
The job holders are requested to keep a diary.
A direct interview with job holders is held.
A separate person is appointed to observe the behavior of job
holders
Finally a detailed report is prepared.

50. Job Description
Job description is an important document which is
basically descriptive in nature and contains a statement
of job analysis.
Characteristics of Good Job Description:
Earnest Dale developed following hints for writing the job
description
It should indicate the scope and nature of the work.
It should be clear regarding the work of the position,
duties etc.
More specific words should be selected.
Brief and accurate statements should be used.
Utility of description should be checked from the extent
of understanding the job description by a new
employee.

51. Job Evaluation
Job evaluation is a systematic procedure which measure the
relative importance and values of each job on the basis of
skills, duties responsibilities and the like.
It is otherwise called job rating.
Job evaluation is the expression of each job in terms of
money.
The very purpose of job evaluation is to fix wage rates
according to the job done by a worker.
Procedure of Job Evaluation
A detailed study of the job
Identification of physical and mental efforts.
A job description.
Consider the characteristics of a job in terms of points,
experience and training.

52. Contd…
Job analysis
Comparison of one job with another
Determine number of points to be given for each
characteristic of a job.
Add the points for each job.
Rank the jobs on the basis of points.
Expression of the value of the jobs in terms of money
according to the points obtained.

53. References
Harold Koontz and Heinz Weihrich. 2010. Essentials Of
Management-
An International Perspective. Tata McGraw Hill Education
Private Ltd.
New Delhi, India.
Ramasamy, T. 2006. Principles Of Management. Himalya Publishing
House,
Mumbai, India.
Saul W. Gellerman. 1963. Motivation and Productivity. D.B.
Taraporewala Sons
Co Private Ltd, Bombay, India.
Sudhir Dawra. 2003. Human Resource Development. Rajat
Publications,
New Delhi, India.