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Subject COMMERCE

Paper No and 1: Management concept and organisational behaviour Title

Module No and 19: Content Theories of Title Module Tag COM_P1_M19

COMMERCE PAPER 1: Management concept and organisational behaviour MODULE No. : 19: Content Theories of Motivation

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TABLE OF CONTENTS

1. Learning Outcomes 2. Introduction 3. Concept of Motivation

4. Theories of Motivation 4.1 Content theory of motivation 4.2 Process theory of motivation 4.3 Basic Difference between Content theories and Process Theories

5. Content theories 5.1Abraham Maslow’s Need Hierarchy theory: based on needs 5.2Clayton Alderfer’s ERG theory: based on needs 5.3 McClellands learned need theory: based on needs 5.4 Fredrick Herzberg’s two factor theory: based on factors 5.5 Douglas McGregor’s Theory X and theory Y: based on 5.6 Comparison between different content theories 6. Summary

COMMERCE PAPER 1: Management concept and organisational behaviour MODULE No. : 19: Content Theories of Motivation

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1. Learning Outcomes

After studying this module, we shall be able to

 Define the content theories of motivation  Learn about different content theories of motivation.  Apply the understanding of different motivation theories to enhance the contribution of the employees in different work situations

COMMERCE PAPER 1: Management concept and organisational behaviour MODULE No. : 19: Content Theories of Motivation

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4.1 Content Theories of Motivation

Theories that explain based on their needs are called content theories

Following are the content theories of motivation

’s Need Hierarchy theory: based on needs  Clayton Alderfer’s ERG theory: based on needs  McClellands learned need theory: based on needs  Fredrick Herzberg’s two factor theory: based on factors  Douglas McGregor’s Theory X and theory Y: based on personality

5.Content Theories

5.1Abraham Maslow’s Need Hierarchy theory: based on needs

Abraham Maslow developed a general theory of motivation .he developed his theory of motivation based on different needs of human beings. He identified certain set of needs that human desires to have at various point of times. These needs move in a hierarchical mode level by level. These were five different levels and every level has a certain needs. Once that level is achieved, then those set of needs cease to be motivating factor and then we have to fulfill needs at the next level. Also he further explained that these needs must be fulfilled in the correct sequence. One cannot jump to next level without fulfillment of previous level needs i.e, one cannot go to higher level needs without attaining lower level needs. Maslow hierarchy of needs are depicted with the help of pyramid as pyramid of five levels which move from lower level needs to higher level needs up in the pyramid. He further explains that various levels are interdependent and over lapping i.e, each higher level need emerges before the lower need is completely satisfied .these needs as given by Maslow are shown in fig 5 below:-

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COMMERCE PAPER 1: Management concept and organisational behaviour MODULE No. : 19: Content Theories of Motivation

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Figure 4: Maslow’s Need Hierarchy

1. Basic Physiological Needs: these needs fall in the very first level of the pyramid .these are biological needs required for survival like food, air, water etc. These are also called basic survival needs. 2. Safety Needs: once physiological needs are reasonably met, next a person looks for is protection from physical dangers and economic security. All these needs fall under safety /security needs. 3. Social Needs: man is a social animal. He needs to interact with people and seeks association with people. Social needs refer to need for belonging, need for and affection etc. an organization can influence human behavior through supervision, its communication system (formal and informal work groups). 4. Esteem needs; esteem needs can be sub divided into two parts: self –esteem and esteem of others. Self esteem needs cover self respect, self confidence, knowledge and independence. Esteem of others means reputation, status, recognition. 5. Self-actualization Needs- these needs are the needs that are highest order of needs. These needs arise when one person desire to bring out his/her full potential, self development, being creative etc.this need is psychological in nature.

Critical appraisal

The theory given by maslow is widely applicable in developing countries like India were the basic lower loel needs of workers are not satisfied. Maslow theory seems to be very COMMERCE PAPER 1: Management concept and organisational behaviour MODULE No. : 19: Content Theories of Motivation

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simple when giving description about complex process of motivation .it is critised on the following grounds:-

1. it is not necessary that the needs given by maslow follow the same sequence. Need recognition and fulfillment do not always the specific sequence or hierarchy as decribed by maslow.

2. neeeds are not the only determinant for influencing human behavior.

3. there is also no particular rule that once a need of particular level is satiffied it will cease to be a motivationg factor for the individual.

4. also same kind of needs may not have same level of motivation on different individuals.

5.it is also wrong to presume that only one need can be satisfied at one time. Human behavior is guided by multiplicity of motives at any given point of time.

5.2 Herzberg’s Two – Factor Theory

This theory of motivation is based on factors that operate on work place. In late 50’s Fredrick Herzberg started a study on a sample of approximately 200 engineers and accountants in United States.in this study the persons were asked to describe the factors in there which made them happy and also to list out factors that made them unhappy.thee result of the study led to certain very important findings. It was seen that employees felt good for the factors that were related to specific tasks they performed and they felt bad because of absence of certain background factors at work.

This led to a finding that there are two different set factors that operate in a work place.

1. Motivation factors (based on job context) 2. Hygiene factors (based on job content )

Motivation Factors- motivation factors referes to those factors which provide opportunites to emploeees to becoe more expert and handle more demanding assignments. They provide employees opportunites of growth achievement and recognition . the presence of these led to high motivation among employees

Hygiene Factors- these factors served to prevent loss of money and efficiency. These factors were more potent to be dissatisfiers. They were also called Maintenece factors.it was seen that the presence of these factors didn’t led to motivation among employees but there absence led to dissatisfaction. So they were to be taken as factors desired to be present in order to support employee mental . To maintain the employee. But these factors didn’t led to motivation.

COMMERCE PAPER 1: Management concept and organisational behaviour MODULE No. : 19: Content Theories of Motivation

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Figure 6 below lists out the various hygeince and motivating factors.

Figure 5:-Motivators and Hygiene Factors

The basic crux of this theory was that one cannot achieve higher performance solely by giving high wages and having good work conditions. These factors were pointed out to be mere maintenance factors this theory stressed on job enrichment as a source of motivation. This was a significant contribution as it helped mangers to understand human behavior better.

Critical appraisal  Herzberg’s findings are based on a small sample of 200 engineers and accountants and are not representative of general work force. • His theory cannot be generalized as it failed to produce similar results later. • Though the theory holds good for people working at higher levels, it may not apply to workers at the operative levels. • It is difficult to categorize the factors as satisfiers or dissatisfiers. Also factors that are dissatisfiers for some may be motivators for others. • Many researchers have found results opposite to Herzberg’s findings. They have shown that absence of motivators can be dissatisfying and presence of hygiene factors can motivate the employees to work harder.

COMMERCE PAPER 1: Management concept and organisational behaviour MODULE No. : 19: Content Theories of Motivation

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5.3 Douglas McGregor Theory X and Theory Y

Douglas McGregor was a well know physcologist. He gave two set of contrasting theories .Theory X and Theory y based on certain assumptions of human behavior.

Under theory X the basic assumptions were that employees inherently disliked theier work and lacked ambition. They avoided responsibility and need to be directed. The employees under theory X were assumed to be lacking creativity and resistined change.under theory x employees were taken as a means of production. This theory represented old stereotyped and authoritarian mangement style of motivation where carrot and stick approach to motivation was applied.

But later on it was seen that there was a rise in the standard of living of people. There was significant improvement in the level of literacy. And theory X didn’t seem a valid explanation for all the employees. This led to development of Theory Y.

After theory x ,McGregor developed an alterate theory Y of human behavior. This theory assumed that people do not inherently dislike their job,work is a natural paly if working conditions arre conducive. People are internally motivated and need not be guided. They have amibitons and have creativity.the people are self motivated towards achievement of goals. The motivating approach for theory Y people was said to be democratic or participative style of leadership. Theory Y people were not merely motivated by money. These people had higher level of needs as propounded by maslow

Figure 6: Comparison of Theory x and Theory y assumptions

Critical Appraisal

The two theories given by mcgregor are never alone applicable in a strict manner. No man would either belong to theory x or theory y completely. A person has the traits of both theories in different situations at different point of times.thus this theory plays COMMERCE PAPER 1: Management concept and organisational behaviour MODULE No. : 19: Content Theories of Motivation

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an important role in devising incentive schemes to motivate the employees. However it can be deduced that theory x is more applicable to lower level or unskilled employees and theory y is more applicable to higher level of employees or educated ,skilled workers.

5.4 Clayton Alderfer’s ERG theory: based on needs

Clayton P. Alderfer gave ERG Theory of Motivation in 1969 in his article, "An Empirical Test of a New Theory of Human Need.” The ERG theory attempted to improve upon Maslow's needs hierarchy by allowing more flexibility of movement between needs. Under this theory Alderfer attempted to reduce the five of levelsof needs as given by maslow and allowed the order of the needs to vary by the individual; he also accepted and explained that different needs can be pursued simultaneously. There were three categories of Needs were according to Alderfers:

1.Existence Needs: Physiological and safety needs, the most concrete of needs, such as food, shelter, and water.

2. Relatedness Needs: Social relationships and external esteem (e.g. involvement with , friends, co-workers)

3. Growth Needs: Internal esteem and self-actualization, the most abstract of needs as they do not involve physical aspects. (e.g. desire to be creative or productive)

While Maslow’s theory was interpreted as portraying that satisfied needs are no longer a motivation (O’Connor & Yballe, 2007), Alderfer’s ERG theory clearly states that all categories of needs can become more important as they are satisfied. Additionally, individuals may place greater emphasis on any single category as opposed to the rigid hierarchy of moving from one need to the next (Alderfer, 1969). The main difference between Maslow's Needs Hierarchy and Alderfer's ERG Theory is the order in which needs are met. Alderfer argued that needs are met simultaneously and have no specific order, while Maslow's theory asserted that needs follow a proper flow and sequence from lower level needs to higher level. The following illustration depicts Alderfer’s ERG theory.

COMMERCE PAPER 1: Management concept and organisational behaviour MODULE No. : 19: Content Theories of Motivation

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Figure: 7 ERG theory Needs

COMMERCE PAPER 1: Management concept and organisational behaviour MODULE No. : 19: Content Theories of Motivation

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Table 2: Reorhanization of Maslow’s and Alderfer’s level of needs

Source:- https://wikispaces.psu.edu/display/PSYCH484/2.+Need+Theories

5.5 McClelland’s learned need theory

McClleland identified three types of motivation needs, and delveoped his theory based on these needs. His theory described one’s style of motivating or gettibg motivated by developing a three need model depending upon dfferent level of needs withing the individual.these three level of need were:

1.Need for Power- desire to control others, to influence their behavior or to be responsible for others

2.Need for afflaition- the desire to establish and maintain friendly and warm relations with others

3.Need for achievement- desire to do something better or more efficiently ,to solve problems, or to master complex tasks

COMMERCE PAPER 1: Management concept and organisational behaviour MODULE No. : 19: Content Theories of Motivation

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Figure 8 :- McClleland learned need model

Critical appraisal

 Mcclleland theory of needs is mouch simple to understand  It has more empeical support as compared to ther theories of motivation  But this theory has less practical effect  The needs decicbed by mcclleland are present at subconscious level of human being and chances are a person might not be aware of such needs  Owing to reason above it is also difficult to measure and cater these needs by managers

COMMERCE PAPER 1: Management concept and organisational behaviour MODULE No. : 19: Content Theories of Motivation

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5.6 Comparison of Content Theories

Figure 9:- Brief snapshot of content theories

COMMERCE PAPER 1: Management concept and organisational behaviour MODULE No. : 19: Content Theories of Motivation

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6. Summary

 Motive is the desire the makes a man move  A manger can influence the behavior of employee by fulfilling these motives  Two set of theories of motivation are present; content theories and process theories  Content theories focus on individual needs  Process theories focus on cognitive processes  Maslow theory of motivation describes five levels of needs that flow in a sequence from lower order needs to higher order  Herzberg theory is based on factor present at work  Hygiene factors are the source of dissatisfaction and therefore should be properly addressed to in order to reduce job dissatisfaction  Motivating factors are related to job content and must be increased in order to increase  Theory X and Theory Y as given by McGregor points out two set of assumptions of human behavior based on which a manger can apply different incentive schemes to motivate employees  Alderfer theory is one step improvement in Maslow’s hierarchy theory .it reduces the number of levels from five to three i.e, existence, relatedness and growth  Lastly Mccllelnad theory which is regarded as more empirical has three level needs in its model namely need for afflation, need for power and need for achievement.

COMMERCE PAPER 1: Management concept and organisational behaviour MODULE No. : 19: Content Theories of Motivation