Motivation – Content Theories

Concept Notes

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Contents
1 What is Motivation?.............................................................................................................................. 3
1.1 Motive, Motivators and Motivating.............................................................................................. 3
1.2 Motivation Process ....................................................................................................................... 3
2 Types of Motivation .............................................................................................................................. 5
3 Motivational Theories ........................................................................................................................... 6
4 Content Based Theories ........................................................................................................................ 6
4.1 Maslow’s Motivation Theory ........................................................................................................ 7
4.1.1 Maslow’s Extended Motivation Theory .............................................................................. 11
4.2 Alderfer's Hierarchy of Motivational Needs ............................................................................... 12
4.3 McClelland’s Theory of Needs (Achievement Theory of Motivation) ........................................ 15
4.4 Herzberg's Two Factor Theory .................................................................................................... 19
4.4.1 Herzberg's KITA ................................................................................................................... 23
4.4.2 Relationship between Herzberg and Maslow Models ........................................................ 24
4.5 Relationship between above Maslow’s, Herzberg’s, Alderfer’s and McClelland’s Theory......... 25
4.6 McGregor’s Theory X and Theory Y ............................................................................................ 25
4.7 Theory Z (US-Japanese Management Style) by William Ouchi ................................................... 28
4.8 Instinctive Theory of Motivation................................................................................................. 29
5 System view of Motivation ................................................................................................................. 30
5.1 Individual ..................................................................................................................................... 31
5.2 Organization ................................................................................................................................ 31
5.3 Job Characteristics ...................................................................................................................... 31
5.4 Exogenous Variable ..................................................................................................................... 31
6 Job Satisfaction ................................................................................................................................... 32
6.1 Factors Impacting Job Satisfaction.............................................................................................. 32
6.2 Relationship between Job Satisfaction and Productivity ............................................................ 33
7 Importance of Motivation in an Organization .................................................................................... 33

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1 What is Motivation?
Motivation is defined as the process that initiates, guides, and maintains goal-oriented
behaviors. Motivation is what causes us to act, whether it is getting a glass of water to
reduce thirst or reading a book to gain knowledge. For example, if Ram keeps on studying
then the reason might be because Ram is motivated to become a doctor.

The formal definition of motivation is that motivation is willingness of person to make

intense and persistent efforts to achieve desired goals. There are 3 components in
definition of motivation.

1. Willingness refers to state of readiness for a person to act.

2. Intense Effort refers to how hard a person tries.
3. Persistence effort refers to continuity of the effort.

If degree of willingness is high to make intense or persistent effort, motivation would be

high.

1.1 Motive, Motivators and Motivating

Motive: Motive (also known as need) is the inner state of a person that he is lacking
something which moves him to engage in goal-directed behavior. For example, if you are
thirsty (inner state), you will drink water (goal directed behavior)

Motivators: A motivator is anything which satisfy your need. For example, for a thirsty
person, the motivator would be availability of water.

Motivating: Motivating is the process of inducing others to engage in goal-directed

behavior by presenting motivators. In organizational context, managers use a variety of
motivators (incentives) as part of motivating the employees.

1.2 Motivation Process

Motivation is a goal directed behavior. Feeling of need by an individual generates a feeling
that he lacks something.

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1. Need: Arousal of need is starting step of motivation process. Need is inner state of a
person that he is lacking something. For example, if a person is thirsty then he needs
water.
2. Tension: Tension is a feeling of being worried which makes it difficult for a person to
relax. For example, a thirsty person will get tense if he is not able to get water.
3. Goal-Directed behavior: In order to overcome this tension, the person engages in goal-
directed behavior through which tension is overcome. For example, if a person is thirsty
then he may drink water.
4. Need Satisfaction: Goal-directed behavior may lead to satisfaction (goal fulfillment). For
example, drinking of water by thirsty person would lead to need satisfaction.
Sometimes goal-directed behavior may not lead to need satisfaction.
5. Feedback: Feedback involves the analysis whether need satisfaction is proper or not.
For example, if a very thirsty person is given only one glass of water, then his need
satisfaction may not be proper.

Consequences of Non-Satisfaction of Need:

If a need is not satisfied even after goal-directed behavior, the person will try to modify the
behavior. He may produce following behaviors

1. Flight: One way is to leave the field. For example, employee quits the job that
becomes frustrating
2. Apathy: He will become indifferent towards the situation. For example, if a person
does not leave the frustrating job then he may not be serious anymore about the job
3. Aggression: He may become aggressive due to frustration. An employee frustrated
with the job may become aggressive towards his superior, family etc.
4. Rationalization: Rationalization involves justifying the outcome of goal-directed
behavior. For example, a person frustrated with his job might find fault in himself or
his superior who has not given them their due.

Real life example of Motivation

Sachin Tendulkar – Also known as “God of Cricket” has motivated

thousands of cricket players across the globe. Sachin’s journey of
Cricket was not always as smooth as it seems but was filled with lots
of Ups and Downs. From the Taking a blow in the first match to
tennis elbow, from stone pelting by fans to getting a tag of God, from
rumors of retirement to having one of the longest careers in cricket
history. Sachin has seen it all. But one thing that kept him motivated
through the rough time was his passion for the sport and the desire
to lift the world cup for the country.

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2 Types of Motivation
1. Positive vs. Negative: Motivating forces can be positive, as in impelling one to reach a
certain goal. They can also be negative, as in driving one away from an unwanted situation.
You can be positively motivated about going to work because you like your colleagues and
some parts of the work, and negatively motivated because you have bills to pay.

2. Basic vs. Learned: Motivation leans on motives. Motives are often categorized into basic
motives and learned motives. Basic or primary motives are unlearned and common to both
animals and humans. We’re talking hunger, thirst, sex, avoidance of pain, and perhaps
aggression and fear. The learned or secondary motives include achievement, power,
recognition, love.

3. Extrinsic motivation and Intrinsic Motivation:

Extrinsic motivation occurs when we are motivated to perform a behavior or engage in an
activity to earn a reward or avoid punishment. The motivation comes from outside.

Examples of behaviors that are the result of extrinsic motivation include:

• Studying because you want to get a good grade.
• Cleaning your room to avoid being reprimanded by your parents.
• Participating in a sport to win awards.
• Competing in a contest to win a scholarship.

Intrinsic motivation involves engaging in behavior because it is personally rewarding;

essentially, performing an activity for its own sake rather than the desire for some external
reward. It comes from inside the individual and is not done for external rewards. Examples
are.

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• Participating in a sport because you find the activity enjoyable.
• Solving a word puzzle because you find the challenge fun and exciting.
• Playing a game because you find it exciting.

3 Motivational Theories
The motivational theories are basically categorized into the following

1. Content Theories: Content Theories look at specific needs that motivate people. The
need can be intrinsic or extrinsic needs and hence managers should know the needs of
everyone. This set basically concentrates on what motivates an individual. These are
also known as traditional theories.

2. Process Theories: Process theories attempt to explain how the process of motivation
works in an individual. Individuals make choices based on preferences, rewards, and
accomplishments and therefore managers need to understand the process of
motivation. These are also known as contemporary theories.

We will discuss Content Based theories in this document.

4 Content Based Theories

These are also called Need based theories or Humanistic approach to motivation. The basis
behind these theories is that individuals have certain needs which if not met create tension in
the mind of people. The individuals will then try to satisfy the need to reduce the tension. The

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managers should try to understand the needs of people and try to satisfy them. This will
motivate them

For example, an employee wants to buy a car and is feeling frustrated without a car. For such
an employee, a salary raise might be the biggest motivation. On the other hand, an employee is
feeling dissatisfied because the employee is not finding the work challenging. For such an
employee salary rise might not be a good motivator, only a challenging project can motivate
the employee.

Among the above theories – All falls under Traditional Theories but if we categorize them as
Content theories which are need based theories then Theory X and Theory Y will not come
under Content Theories as they are not need based

Concept Check

Question – Identify the incorrect statement from below –

A. Content Theories look at specific needs that motivate people.

B. Process theories attempt to explain how the process of motivation works in an individual.
C. Content Theories are also known as Contemporary Theories of motivation.
D. Maslow need theory is an example of content-based theory of motivation.

Answer – Option C
Explanation - Content theories are called as traditional theories; hence statement C is incorrect.

4.1 Maslow’s Motivation Theory

Maslow has proposed that motivation of people depends on their needs and these needs may
be arranged in a hierarchy shown below.

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Need hierarchy is based on following assumptions.
1. Needs are to be fulfilled from bottom to top. Individuals must satisfy lower-level needs
before they can satisfy higher order needs. This concept of lower-level needs being
satisfied first before moving higher is called satisfaction progression. Motivating a person
depends on knowing at what level that a person is on the hierarchy.
2. A satisfied need does not motivate a person, only a next higher order needs motivates
him.

There are five needs in Maslow need hierarchy – Physiological needs, safety needs, Social
needs, Self-Esteem needs, Self-Actualization needs. Let us discuss these needs one by one

1. Physiological needs: These primary needs are created in an individual by nature. Needs of
air, water, food, defecation etc. are such needs. These are the things without which we
cannot live. Unless these needs of the individual are fulfilled, he cannot even think of
higher-level needs. Example: If a child is hungry or thirsty, the teacher cannot motivate
him for learning in the class.

2. Safety needs (Security needs): After fulfilling physiological needs an individual wants
physical safety and well-being (emotional security, financial security). He wants to be
protected in the environment from his enemies whether they are his fellow being or the
fury of the environment in the form of heat, cold, rain etc. Example: A child must feel
that the classroom is a fair, orderly and safe place for learning at all the times. It must be a
place free from physical bullying

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3. Needs of belongingness: Having the above two needs been fulfilled an individual wants a
sense of belonging to someone or a group. He wants love, affection, and friendship from
his fellow beings. To satisfy these very needs child participates in diverse types of
programmes in school. To draw the attention and love of his teachers, he fulfills the work
given to him. Example: Students need to feel emotionally and physically safe and
accepted within the classroom to progress and reach their full potential. Children who are
not accepted in the groups in the class would not develop well.

4. Esteem needs: All humans have a need to feel respected; this includes the need to
have self-esteem and self-respect. Esteem presents the typical human desire to be
accepted and valued by others. People often engage in a profession or hobby to gain
recognition. These activities give the person a sense of contribution or value. Low self-
esteem or an inferiority complex may result from imbalances during this level in the
hierarchy. People with low self-esteem often need respect from others; they may feel the
need to seek fame or glory.

However, fame or glory will not help the person to build their self-esteem until they
accept who they are internally. Psychological imbalances such as depression can hinder
the person from obtaining a higher level of self-esteem or self-respect.

Most people have a need for stable self-respect and self-esteem. Maslow noted two
versions of esteem needs: a "lower" version and a "higher" version. The "lower" version
of esteem is the need for respect from others. This may include a need for status,
recognition, fame, prestige, and attention. The "higher" version manifests itself as the
need for self-respect. For example, the person may have a need for strength,
competence, mastery, self-confidence, independence, and freedom. This "higher" version
takes precedence over the "lower" version because it relies on an inner competence
established through experience. Deprivation of these needs may lead to an inferiority
complex, weakness, and helplessness.

Example: A child wants to become monitor of the class or captain of football or cricket
team or a child wants to become best dancer in the school. To motivate such students for
learning, it is necessary that such needs of these students must be fulfilled to the
maximum level possible

5. Needs of self-actualization: An individual comes to recognize his strengths and

weaknesses fully before coming to this last level of needs. Based on potentialities, he

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wants to do such an extra-ordinary work so that he may acquire the top place in the eyes
of the people. It can be achieved only when each of the other levels have been mastered,
not just understood. Example: Talented students after a period come to know that they
can achieve much more. A child can realize that he has the potential to become the best
scientist or a film actor. To achieve this target, they try their best. If a teacher fails to
recognize the abilities of these students and does not respond properly at their
achievement, these students lag their actual level of performance.

Implication at Workplace:

1. Maslow’s hierarchy of needs applied to work situations implies that managers have the
responsibility, firstly, to make sure their people’s deficiency needs are met. Only once the
deficiency needs are met, one can go for self-actualization.

2. Secondly, it implies creating a proper climate in which employees can develop their fullest
potential. Failures to do so would theoretically increase employee frustration and could
result in inferior performance, lower job satisfaction, and increased withdrawal from the
organization. For example, in this theory job insecurity and the threat of layoffs will block
the person from their higher growth needs.

Criticism of Maslow’s theory

1. Wrong Order of Needs:
a. The order in which the hierarchy is arranged has been criticized as being ethnocentric
by Geert Hofstede. Maslow's hierarchy of needs fails to illustrate and expand upon the
difference between the social and Self-esteem/self-actualization needs of those raised
in individualistic societies and those raised in collectivist societies. The needs and
drives of those in individualistic societies tend to be more self-centered focusing on
improvement of the self, with self-actualization whereas in collectivist societies, the
social needs of acceptance and community will outweigh other needs.
b. Some people may be deprived of lower order needs but still try for self-actualization.
Mahatma Gandhi is an example of the same.
c. For some people self-esteem need is more important than social needs and they may
try to assert themselves on others even at the cost of social needs

2. The position and value of sex on the pyramid has also been a source of criticism regarding
Maslow's hierarchy. Maslow's hierarchy places sex in the physiological needs category along
with food and breathing; it lists sex solely from an individualistic perspective. For example,
sex is placed with other physiological needs which must be satisfied before a person
considers "higher" levels of motivation. Some critics feel this placement of sex neglects the

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emotional, familial, and evolutionary implications of sex within the community. The critics
feel sex should be placed in the social belonging category.

3. It is wrong to assume that only one motive is present at any point of time. Some people
may be aspiring to fulfill multiple needs at one point in time.

4. Maslow’s theory has primary application to lower-level workers in a country like India
where the basic need of workers is not satisfied fully. In countries like US where basic needs
are fulfilled for all, the people may have different order of needs and there it might be
necessary, and needs be fulfilled in this order only.

5. Needs other than those identified by Maslow also motivate people – e.g., spiritual needs.

6. People can also operate on more than one need level simultaneously or may move to a
lower level of needs if their life circumstances change. For e.g., during the recession, when
many jobs were cut, suddenly lower-order needs became dominant over higher-order
needs.

4.1.1 Maslow’s Extended Motivation Theory

Since at least the 1970s there have been debates and discussions on whether Maslow identified
all the motivating stages that drive humans. Some have argued that there should be more
levels to the Hierarchy of Needs. Most seem to
agree that there should be three new additions
to the Hierarchy of Needs. As a result, the
extended version of Maslow Theory was
introduced which has 3 new levels as shown
below.

The three new additions to Maslow’s original

Hierarchy of Needs model are:

• Knowledge and Understanding (Cognitive

Needs)
• Need for Aesthetics
• Transcendence

1. Knowledge and Understanding (Cognitive

Needs): People have a desire to explore and
learn new things or understand the world

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around them. The inability to meet the cognitive needs may make it difficult to reach Self-
Actualization. Self-Actualization is about personally growing and is a more complex form of
gaining knowledge and understanding.

For example, Ram has a curiosity to solve complicated algebra problems. He solves these
problems in her free time.

2. Need for Aesthetics: This is about the desire for beauty and pleasing surroundings in our
life. Through the chaos, we seek order and balance. We want to appreciate the things we
find beautiful. For example, Tiya wants to arrange her wardrobe in a way that looks
balanced and pretty.

3. Transcendence (helping others find fulfillment): Transcendence is the desire to move

beyond ourselves. In the expanded hierarchy it is placed after Self-Actualization, making it
the highest level in the hierarchy. People seeking to fulfill their Transcendent needs may
be motivated by helping others or becoming wholly driven by factors that do not
personally impact them. They are so confident in their lower-level needs being met
satisfactorily that they worry about the needs of others. For example, an IAS Officer after
attaining self-actualization helping other needy IAS aspirants crack IAS exam.

Concept Check:

Question – Motivation is defined as the process that initiates, guides, and maintains goal-oriented behaviors. In
the same regard, which of the following is not need as per Maslow’s Theory?

A. Esteem Need
B. Self-Actualization Need
C. Physical Need
D. Physiological Need

Answer – Option C

4.2 Alderfer's Hierarchy of Motivational Needs

Clayton P. Alderfer's believed that the original need hierarchy was not quite accurate in
identifying and categorizing human need. As an evolutionary and criticism to hierarchy theory,
Alderfer proposed ERG theory in 1969 which condenses Maslow's five human needs into three
categories: Existence, Relatedness and Growth.

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1. Existence refers to our concern with
basic material existence
requirements; what Maslow called
physiological and safety needs.

2. Relatedness refers to the desire we

have for maintaining interpersonal
relationships; like Maslow's
social/love need,

3. Growth refers to an intrinsic desire

for personal development, Maslow's
esteem need, and self-actualization.

Even though the priority of these needs differs from person to person, Alderfer's ERG theory
prioritizes in terms of the categories' concreteness. Existence needs are the most concrete, and
easiest to verify. Relatedness needs are less concrete than existence needs, which depend on a
relationship between two or more people. Finally, growth needs are the least concrete in that
their specific objectives depend on the uniqueness of each person.

Difference between Alderfer’s Theory and Maslow’s Theory

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Implications in Workplace
1. On a work level, Alderfer’s model implies that managers must recognize their
employees’ multiple simultaneous needs. Focusing exclusively on one need at a time
will not motivate your people.
2. The frustration-regression principle impacts workplace motivation. For example, if
growth opportunities are not provided to employees, they may regress to relatedness
needs, and socialize more with co-workers. If you can recognize these conditions early,
steps can be taken to satisfy the frustrated needs until the employee is able to pursue
growth again.

Real life example of Google with respect to Alderfer theory of Motivation

Google has bicycles and electric cars to get staff to meetings, gaming centres,
Existence Needs organic gardens, and eco-friendly furnishings. The company wants to make its
employees' lives more comfortable, and they are continually searching for
ways to improve the health, well-being, and morale of its Googlers.

The company fulfils relatedness needs by providing various levels of

Relatedness Needs communication, valuing employee feedback, and ensuring that employees are
facilitated to build satisfying interpersonal relationships with other
employees and with senior management.

Google provides various opportunities for personal growth and development

to enable its employees to accomplish the growth needs level. For example,
Growth Needs the company practices high employee engagement practices and have an in-
house reward mechanism aimed at acknowledging and appreciating the work
of employees according to its organizational vision and values.

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Concept Check

Ram is currently working in the XYZ company, and he is employed in company for a long period of time. Another
company which is very much in the news is ABC company. ABC company is operating on small scale, and it has huge
growth potential. Ram got fascinated by the growth prospectus of the ABC company and thereby he decided to join
the ABC company. ABC company offered a high reputed job position to Ram and thereby Ram accepted the job offer.

Question – As Ram shifted from XYZ company to the ABC company, this change of job can be explained by which of
the following Theory of motivation?

A. Existence needs – Alderfer Theory of motivation

B. Achievement needs – David McClelland Theory of motivation
C. Belonginess Needs – Maslow Theory of Motivation
D. Growth Needs - Alderfer Theory of motivation

Answer – Option D
It’s clearly given in the question that, Ram got fascinated by the growth prospectus of the ABC company. Hence the
correct answer will be option D.

4.3 McClelland’s Theory of Needs (Achievement Theory of Motivation)

David McClelland identified three learned or acquired needs, called manifest needs. These
needs are:

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1. Need for Achievement (n-Ach):
a. The need for achievement is characterized by the wish to take responsibility for finding
solutions to problems, master complex tasks, set goals, and get feedback on level of
success. There is a strong need for feedback as to achievement and progress, and a need
for a sense of accomplishment.
b. McClelland found that people with a high need for achievement:
• Seek to excel and thus tend to avoid both low-risk and high-risk situations.
Achievers avoid low-risk situations because the easily attained success is not a
genuine achievement. In high-risk projects, achievers see the outcome as one of
chance rather than one's own effort. High n-ach individuals prefer work that has a
moderate probability of success, ideally a 50% chance. They prefer either to work
alone or with other high achievers.
• They do not like having external events or other people interfere with their
progress towards the goals.

Real life Example of Need of Achievement – Jeff Bezos

Amazon started its Journey from a Garage Bookstore and today its a
Trillion Dollar company. Jeff Bezos went onto to build a web retailing
system, while the world was still wondering how an internet can
function. The key focus for Amazon has never been to defeat
competitors. Rather it focuses on helping consumers and building a
value for them. This keeps them engrossed in implementing their
plans and policies. Therefore, its apt to say that Jeff Bezos is driven by
the need of achievement.

2. Need for Affiliation (n-Affil):

a. The need for affiliation is characterized by a desire to belong, an enjoyment of
teamwork, a concern about interpersonal relationships, and a need to reduce
uncertainty.
b. These people are team players.
c. They tend to conform to the norms of their work group. High n-affil individuals prefer
work that provides significant personal interaction.
d. This person favors collaboration over competition and does not like situations with
substantial risk or high uncertainty.

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Real life Example of Need of Affiliation – Ratan Tata

Ratan Tata undertook a journey from his house in

Mumbai all the way to Friends Society in Pune just to
meet a former employee. Earlier, Tata had personally
visited the families of all 80 of his employees who were
affected by the 26/11 terror attack of 2008. Ratan Tata
not only is one of the top industrialists in the country
which shows he has high need of Achievement, but
above shared examples shows that he also has high need
for affiliation.

3. Need for Power (n-Pow):

a. The need for power is characterized by a drive to control and influence others, a need to
win arguments, a need to persuade and prevail.
b. A person's need for power can be one of two types - personal and institutional. Those
who need personal power want to direct others, and this need often is perceived as
undesirable.
c. Persons who need institutional power (also known as social power) want to organize the
efforts of others to further the goals of the organization. Managers with a high need for
institutional power tend to be more effective than those with a high need for personal
power.
d. People in this category enjoy work and place a high value on discipline. The downside to
this motivational type is that group goals can become zero-sum in nature, that is, for one
person to win, another must lose.
e. However, this can be positively applied to help accomplish group goals and to help others
in the group feel competent about their work.

Real life Example of Need for Power – Elon musk

Elon Musk, CEO of Tesla and SpaceX thinks and acts on a larger, more
cosmic scale than we are accustomed to from entrepreneurs. He has
plans to colonize Mars and thinks AI may turn humans into its pets. But
beyond the hype, his enormous net worth, and Twitter presence clearly
shows his need for Power. Elon Musk's success can be attributed to a
combination of his desire to solve big problems, his willingness to take
risks, and his strategic thinking.

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Henry Murray’s Manifest Needs Theory:
Manifest needs theory assumes that human behavior is driven by the desire to satisfy needs.
• Manifest needs theory laid the groundwork for later theories, most notably McClelland’s learned needs
theory.
• Murray identified needs as one of two types:
o Primary needs: Primary needs are basic needs that are based upon biological demands, such as the
need for oxygen, food, and water.
o Secondary needs: Secondary needs are generally psychological, such as the need for nurturing,
independence, and achievement. While these needs might not be fundamental for basic survival, they
are essential for psychological well-being.

Implication in Workplace

People with diverse needs are motivated differently.

1. High need for achievement - High achievers should be given challenging projects with
reachable goals. They should be provided frequent feedback. While money is not an
important motivator. Rather, it is an effective form of feedback.

2. High need for Affiliation - Employees with a high affiliation need perform best in a
cooperative environment.

3. High need for power - Management should provide power seekers the opportunity to
manage others. While n-pow people are attracted to the leadership role, they may not
possess the required flexibility and people-centered skills. A strong n-pow 'authority-
motivation' will produce a determined work ethic and commitment to the organization.

4. According to the research by McClelland and others, Effective managers show high on
achievement and power and low on affiliation. Achievement oriented people are the
backbone of most of the organization for their fast growth. Achievement need may be
developed at an early stage as well as at a later stage through training and counselling.

Concept Check:
Suppose a Company is starting an overly critical project with the client. The success of this project is especially
important for the company. The company has three Roles and three people to whom those roles need to be assigned.

Roles:
Role A: Business Analyst which requires lot of clients’ interactions.
Role B: Tech Lead which requires finding solutions for challenging tasks.

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Role C: Project Manager which requires meeting deadlines, planning, and delegating tasks and decides rewards and
Punishments.

People:
Ram: He has need for achievement
Sham: He has need for Power
Laxman: He has need for Affiliation.

Question - What should be the right combination of roles to be assigned to Ram, Sham and Laxman
A) Ram (Tech Lead), Sham (Project Manager), Laxman (Business Analyst)
B) Ram (Tech Lead), Sham (Business Analyst), Laxman (Project Manager)
C) Ram (Business Analyst), Sham (Tech Lead), Laxman (Project Manager)
D) Ram (Project Manager), Sham (Tech Lead), Laxman (Business Analyst)

Answer – Option A.
• Ram has need for achievement which means he likes challenges and hence role of tech lead is perfect for him.
• Sham has need for power and since project manager requires delegating tasks and deciding rewards and
punishments. Hence, Project Manager has the Power and is fitting role for Sham.
• Laxman has need for affiliation. Business analyst role requires interaction with client which means affiliation
with people. Hence, he is fit for Business Analyst

4.4 Herzberg's Two Factor Theory

Herzberg's Two Factor Theory is also known as the Motivation Hygiene Theory. It states two
different facets of motivation, the first being ‘hygiene’ factors or job context. The second factor
is ‘satisfiers’ or job content, i.e. the intrinsic qualities of the job. According to Herzberg, there
are some job factors that result in satisfaction while there are other job factors that prevent
dissatisfaction. According to Herzberg, the opposite of “Satisfaction” is “No satisfaction” and
the opposite of “Dissatisfaction” is “No Dissatisfaction”.

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So the satisfiers/motivators provides satisfaction or motivation. Hygiene factors just decides
employee being dissatisfied or not dissatisfied

1. SATISFACTION (MOTIVATION): According to Herzberg, the hygiene factors cannot be

regarded as motivators. The motivational factors yield positive satisfaction. These factors
are inherent to work. These factors motivate the employees for a superior performance.
These factors are called satisfiers. These are factors involved in performing the job.
Employees find these factors intrinsically rewarding. The motivators symbolized the
psychological needs that were perceived as an additional benefit.

Motivational factors include:

• Achievement
• Recognition
• Work itself
• Responsibility
• Advancement
• Growth and Promotion

2. DISSATISFACTION (HYGIENE): Hygiene factors also known as maintenance factors are not
intrinsic part of the job but are related to conditions under which job is performed. Hygiene
factors are those factors which when adequate/reasonable in a job, pacify the employees
and do not make them dissatisfied but do not motivate them. But if these factors are absent
/ if these factors are non-existent at workplace, then they lead to dissatisfaction. These
factors are extrinsic to work. Hygiene factors are also called as dissatisfiers or maintenance
factors as they are required to avoid dissatisfaction. These factors describe the job
environment/scenario. The hygiene factors symbolized the physiological needs which the
individuals wanted and expected to be fulfilled.

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Hygiene factors include:
• Company policy
• Administrative policies
• Supervision
• Salary
• Interpersonal relations
• Working conditions
• Job Security

Herzberg also says that it is not only these factors but the personality of the individual also
an important factor. Based on personality there are 2 types of individuals – motivation seekers
and maintenance seekers. The motivation seekers generally are individuals who are primarily
motivated by the satisfiers. On the other hand, maintenance seekers are more concerned
about dissatisfiers.

Another point mentioned by Herzberg is that today’s motivators would be tomorrow’s

hygiene because once they get any particular thing it does not motivate them any longer.

Four Situations as per Herzberg

According to the Two-Factor Theory there are four possible combinations:

1. High Hygiene + High Motivation: The ideal situation where employees are highly motivated
and have few complaints.
2. High Hygiene + Low Motivation: Employees have few complaints but are not highly
motivated. The job is viewed as a paycheck.
3. Low Hygiene + High Motivation: Employees are motivated but have a lot of complaints. A
situation where the job is exciting and challenging but salaries and work conditions are not up
to par.
4. Low Hygiene + Low Motivation: This is the worst situation where employees are not
motivated and have many complaints.

Job enrichment according to Herzberg's two factor theory

Job enrichment attempts to give employees greater responsibility by increasing the range and
complexity of tasks, as employees are called upon to complete and for job enrichment
necessary authority should also be granted. Herzberg argued that job enrichment (through
motivators) should be a central element in any policy of motivation. Herzberg suggests that
work be enriched (or 'vertically loaded') for true motivation to spark up. This is different from

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horizontal job loading, which reduces the personal contribution rather than giving
opportunities for growth. Some examples of horizontal loading are:

• Challenging the employee by increasing the amount of production expected.

• Adding another meaningless task to the existing one.
• Rotating the assignments of several jobs that need to be enriched.
• Removing the most difficult parts of the assignment.

Criticism of Herzberg’s theory

1. Herzberg drew conclusions from a limited experiment covering engineers and accountants.
Engineers, accountants, and other professionals like them may like responsibility and
challenging jobs. But the general body of workers are motivated by pay and other benefits
(Hygiene factors)
2. The two-factor theory is an over-simplification of the true relationship between motivation
and dissatisfaction. Several studies showed that one factor can cause job satisfaction for one
person and job dissatisfaction for another.
3. Herzberg’s inference regarding differences between satisfiers and hygiene factors cannot
be completely accepted. People generally attribute the causes of satisfaction to their
achievements. But more likely they attribute their dissatisfaction to obstacles presented by
the company’s policies or superiors than to their deficiencies.

Real life Example of Herzberg two factor theory – Tata Motors

Frederick Herzberg’s two factor theory best describes rewards management and motivation
technique at TATA Motors. TATA Motors provides its employees with hygiene factors like particularly
good salary and perks, very good work environment and freedom to employees.

Besides the hygiene factors, TATA motors provide its employees with adequate motivational factors.
These factors include Learning Advisory Council, which designs, implements, and reviews the learning
agenda of the employees, Fast Track Selection Scheme, Management Career Acceleration Track
(MCAT) etc., to providing fast track growth opportunities for the development and growth of the
employees along with providing them challenging opportunities in mid management level.
Employees take pride in being part of Tata Motors and in creating products and services which are

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changing the world.

Implication of Herzberg’s theory

1. The Two-Factor theory suggests that the managers should focus on ensuring the
acceptability of the hygiene factors to avoid employee dissatisfaction.
2. Furthermore, the managers must make certain that the work is motivating and rewarding
so that the employees are motivated to work and perform firmer and better.
3. The theory stresses upon job-enrichment because this particular practice helps to
accelerate employee motivation.
4. The basic purpose and characteristic of a job is to make use of the employee’s expertise and
competencies to the maximum. A continuous concentration on the motivational factors
can strengthen work-quality.

4.4.1 Herzberg's KITA

Herzberg often referred to hygiene factors as "KITA" factors, which is an acronym for "kick in
the ass", the process of providing incentives or threat of punishment to make someone do
something. There are three types of KITA’s
1. Negative Physical KITA: Threatening the employee to do work
2. Negative Psychological KITA: Playing emotional games to get the work done
3. Positive KITA: Giving just promotion or status without recognition.

Concept Check:

Question – Identify the framework developed by Frederick Herzberg, that suggests, there are certain factors in the
workplace that can cause job satisfaction and a separate set of factors can cause dissatisfaction. Which theory are we
talking about?
A. Equity Theory
B. Two Factor Theory
C. Self-Efficacy Theory
D. Competency Theory

Answer – Option B

Question – In the field of motivation, which of the following is not a hygiene factor as per Two Factor Theory?

A. Supervision
B. Recognition
C. Salary
D. Job Security

Answer – Option B

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4.4.2 Relationship between Herzberg and Maslow Models
There is great similarity between Herzberg and Maslow models. If we closely analyze the
Herzberg model, then it says that some employees may have achieved a level of social and
economic progress and for them high level needs of Maslow such as esteem and self-
actualization are more important. However, they must still satisfy the lower level needs for the
maintenance of their current state. The maintenance/hygiene and Motivator factors of
Herzberg theory can be mapped to lower and higher order needs of Maslow as shown in figure
below:

Maslows physiological, security and social needs come under Herzberg maintenance factors
whereas self-fulfillment needs come under Herzberg’s motivators. It must be noted that part
of esteem need comes under maintenance factors and another under motivational factors. The
esteem needs are divided because esteem can be related to status or recognition.

Status tend to be a function of position one occupies, and status may be gained through family
ties or social pressures and so this may not reflect personal achievement or earned recognition.
Recognition on the other hand is gained through competence and achievement. So, status is
classified with physiological, safety and social needs as a hygiene factor while recognition is
classified with esteem or motivator

Difference between Maslow and Herzberg Model

1. Basis of theory: Maslow’s theory is based on the hierarchy of human needs. He

identified five sets of human needs (on priority basis) and their satisfaction in motivating
employees while Herzberg refers to hygiene factors and motivating factors in his theory.
2. Nature of theory: Maslow’s theory is rather simple and descriptive; the theory is based
long experience about human needs. While Herzberg’s theory is more prescriptive. It

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suggests the motivating factors which can be used effectively. The theory is based on
actual information collected by Herzberg after interviewing 203 engineers and
accountants.
3. Motivator: According to Maslow’s model, any need can act as a motivator provided it is
not satisfied while Herzberg in his dual factor model, hygiene factors (lower levels) do
not act as motivators, only higher order needs (achievement, recognition, challenging
work) act as motivators.

4.5 Relationship between above Maslow’s, Herzberg’s, Alderfer’s and McClelland’s Theory
Although the Content theories are different from each other, but the overall essence remains
the same.
1. There are lower and higher-level needs.
2. Higher level needs are intrinsic motivators whereas lower-level needs are extrinsic
motivators.
3. Manager needs to motivate an individual as per his/her needs.
The figure below shows the relationship between various theories. For example, the Hygiene
factors in the Herzberg theory are the same as lower-level needs in Maslow’s Hierarchy.

4.6 McGregor’s Theory X and Theory Y

Douglas McGregor developed the theory that there are two basic management behavior types,
Theory X managers and Theory Y managers, each of which has a quite different set of
assumptions about others.

Theory X managers

Theory X managers are authoritarian and controlling, using threat and punishment to coerce
people into working hard. The carrot and stick approach to motivation is followed. People are

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shown carrot (rewards) to get the work done and if they are not able to meet the targets then
they are punished. They tend not to produce elevated levels of performance from their teams.

Theory X Assumptions:
1. People have an inherent dislike of work and will try to avoid it at all costs.
2. People need to be coerced, controlled, and threatened to work hard.
3. People are not ambitious and dislike responsibility, preferring to be directed.
4. Above all else, people want security.

Theory Y managers

Theory Y managers are democratic, consultative and empowering, helping people to develop
and encouraging them to take the initiative. These enlightened managers tend to achieve the
best results from their teams.

Theory “Y" managers gravitate towards relating to the worker on a more personal level, as
opposed to a more conductive and teaching based relationship. As a result, Theory Y followers
may have a better relationship with their higher ups, as well as potentially having a healthier
atmosphere in the workplace.

Theory Y Assumptions:
1. People naturally put as much effort into their work as they do into play or rest
2. People will exercise self-direction and self-control if they are committed to a goal
3. People will be committed to an organization if they are satisfied in their job
4. People relish and seek responsibility
5. People are good at creative problem-solving
6. People’s talents and skills are normally underused

Interpretation/Difference between Theory X and Theory Y

1. Level of Needs: Theory of X assumes Maslow’s lower-level needs dominate in employees.

Whereas Theory of Y, assumes Maslow’s higher-level needs dominate in employees

2. Type of Leadership: Theory X focusses on autocratic leadership whereas theory Y focusses

on democratic leadership Although an authoritarian style of leadership is occasionally
necessary in crisis situations, but the positive and participative Theory Y style is generally
accepted as more effective for motivating people. People will contribute more to their job
and organization if they are treated as emotionally mature, responsible, and valued
employees and are given challenging work.

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3. Situations: Theory X is more applicable to handle unskilled and uneducated low-level
employees whereas theory Y is more applicable for skilled and educated employees

4. Locus of Control: Theory X people lacks self-motivation and has external locus of control;
they require close supervision to get maximum output from them. In theory Y, people are
self-directed, creative and prefer self-control

5. Centralization or Decentralization: Theory X emphasizes scalar chain system and

centralization of authority in the organization while Theory Y emphasizes decentralization of
authority and greater participation in decision making

Management Implications of Theory X and Theory Y

❖ Quite a few organizations use Theory X today. Theory X encourages use of tight control and
supervision. It is useful in organizations where repetitive tasks are to be done in tight
schedule. It implies that employees are reluctant to organizational changes. Thus, it does
not encourage innovation.

❖ If Theory Y is embraced, the organization can accurately perform several elements to attach
the motivational dynamism of its employees: Theory Y gives employees freedom and
encourages self-control and participation in decision making. Employees are able to take
higher responsibility.

If accurately applied, such an atmosphere would end result in a boundless level of

motivation as employees work to gratify their higher-level personal needs through their
work.

Concept Check

Question - Ram and his wife are managers in the company. Ram is more of a person who believes that
salary and Job security are more important in life. He likes to threaten and motivate people. Ram’s wife is
an outgoing person who gives importance to achievement and recognition and doing what one can do.
Which of the following is true statement?
A) Ram and his wife have opposing views in life as Ram wants security, and his wife wants recognition.
Ram is theory X type while his wife is theory Y type. Both are at lower level of Maslow.
B) Ram and his wife have same views as Job Security will ultimately lead to recognition. Both are theory
X leaders. Both are at lower level of Maslow.
C) Ram and his wife have opposing views in life as Ram wants security, and his wife wants recognition.
Ram is theory X type while his wife is theory Y type. Ram is at lower-level needs of Maslow while his

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wife at higher level needs to Maslow.
D) Ram and his wife have same views as Job Security will ultimately lead to recognition. Both are theory
X leaders. Ram is at lower-level needs of Maslow while his wife at higher level needs of Maslow.

Answer - Option C
Ram wants job security and not recognition. So, he is theory X. His wife wants recognition, so she is theory
Y. Theory X leaders are at lower-level needs of Maslow while Theory Y leaders are at higher level needs of
Maslow

4.7 Theory Z (US-Japanese Management Style) by William Ouchi

The founder of Theory Z is William Ouchi, he wrote a book called “Theory Z: How American
Business Can Meet the Japanese Challenge (1981)”. In this book, Ouchi shows how
American corporations can meet the Japanese challenges by adopting a highly effective
Japanese Management Style with little variations.

The major features of Theory Z are as follows.

1. Strong bond between Company and the Employees: Theory Z suggests long term
employment without any layoffs. Company should give both financial and non-financial
incentives to the employees.

2. Participation of Employees in decision making and Mutual Trust or High degree of

confidence: There should be trust between employees and all levels and trust can be
developed through openness in the organization.

3. Human Resource Development: Ouchi explains that the employees must be very
knowledgeable about the various issues of the company, as well as possess the competence
to make those decisions. Theory Z stresses the need for the workers to become
generalists, rather than specialists, and to increase their knowledge of the company and its
processes through job rotations and constant training

4. Integrated Structure: No formal structure is recommended in Theory Z. The organization

should be based on teamwork and employees must develop team spirit, but there should
be Equality in terms of common uniforms, canteens, parking etc. for all categories of
employees.

5. Collective Responsibility: Emphasis is on group responsibility as it removes intra-group

rivalry, and No Unions of workers is formed in this style.

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6. Down-up Decision-Making system called Ringi System: Ringi (also ringi seido, ringi system)
is a decision making process in Japanese management systems. It is a bottom-up
approach of decision making in which suggestions are forwarded by workers to managers
related to improvement areas

7. Employment of Quality Circles: A quality circle is a participatory management technique

that enlists the help of employees who are your colleagues in solving problems related to
their own jobs. Circles are formed of employees working together in an operation who
meet at intervals to discuss problems of quality and to devise solutions for improvements

Assumptions of theory Z manager.

Ouchi's Theory Z makes certain assumptions about workers. Some of the assumptions about
workers under this theory include:

• Workers tend to want to build happy and intimate working relationships with those that
they work for and with, as well as the people that work for them.
• Workers have a high need to be supported by the company, and highly value a working
environment in which such things as family, cultures and traditions, and social institutions
are regarded as equally important as the work itself. These types of workers have a very
well-developed sense of order, discipline, and a moral obligation to work hard, and a sense
of cohesion with their fellow workers.
• Workers can be trusted to do their jobs to their utmost ability, so long as management can
be trusted to support them and look out for their well-being.

4.8 Instinctive Theory of Motivation

The Instinct Theory of Motivation views biological or genetic programming as the cause of
motivation. This claim means that all humans have the same motivations due to our similar
biological programming. This theory says that the root of all motivations is the motivation to
survive. From our motivation to survive, all other motivations emerge. And, as we act or behave
with this kind of motivation, all our actions are therefore considered as instincts. Learning or
Conditioning does not affect the motivation to behave in certain way

A common example used to explain the Instinct Theory is that a human mother will attempt to
provide comfort to a baby who has been crying all night and will not sleep until she sees that
the baby is calm and asleep. According to Instinct theory, human mothers behave in this way
because they were biologically programmed to do so; it is a mother’s instinct to provide
comfort to her child.

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Some More Examples where the motivation to act is because of biological factors

• Bees communicating the location of food to each other.

• Army ants embarking on synchronized hunting expeditions.
• Spider making a spider web so it can catch food.
• A baby crying for food because it is hungry.
• Humans salivate when they are about to eat.
• A dog barking when it senses danger.
• Wolf pups are born with more natural aggression than domestic dogs.
• A fly circling a light bulb.
• A cat raises his tail when it senses danger

The motivation in instinctive theory is driven by biological needs such as hunger, thirst etc.

Concept Check:
Question - Identify the Motivation theory in which a person aims at gaining new knowledge, has desire for
beauty and wants to help others etc. is known as __________?

A. Maslow’s Extended Theory of Motivation

B. Alderfer’s ERG Theory
C. Herzberg’s Two Factor Theory
D. Adam’s Equity Theory

Answer – Option A

Question - There are various theories of motivation given by different people from time to time, one such
theory is ERG theory, in the same regard, what does R for in ERG theory of motivation?

A. Relation
B. Relatedness
C. Relative
D. Recycle

Answer – Option B

5 System view of Motivation

System view of motivation tells a manager that motivation is interplay of following 4 factors

1. Individual
2. Organization

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3. Job Characteristics
4. Exogenous variable

5.1 Individual
Every induvial has different needs and interest. So, motivation is also different for each
individual.

5.2 Organization
Every organization emphasize different motivation patterns. The climate of the organization
has important part to play in workers motivation. The culture of the organization depends on
following 8 values known as OCTAPACE
values

1. Openness & Risk Taking

2. Confrontation
3. Trust
4. Autonomy
5. Proactivity
6. Authenticity
7. Collaboration
8. Experimentation

5.3 Job Characteristics

Job characteristics are another important
determination of motivation. As per Hackman,
the job characteristics which impact motivation are

1. Skill Variety: Refers to usage of different skills

2. Task Identity: Refers to extent to which the job is a complete module in itself
3. Task Significance: Refers to importance of task to the pride of the organization
4. Autonomy: Freedom in executing the task
5. Feedback: Refers to information regarding progress or performance in the task

The above characteristics create psychological states in a worker leading to positive work
motivation.

5.4 Exogenous Variable

Workers professional life is strongly assonated with personal life. They cannot be separated.
Exogenous variable can impact the motivation of a person. For example, a bad relationship with
wife can impact his motivation.

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6 Job Satisfaction
Job satisfaction is pleasurable state or feeling in an individual with respect to his work. There
are 3 theories related to Job satisfaction.

1. Herzberg’s Motivation Hygiene theory: As per this the presence of satisfiers such as
recognition. Achievement will lead to more job satisfaction as compared to presence of
hygiene factors.
2. Need-Fulfillment theory: As per this the person is satisfied if he gets what he wants. We can
connect this with Maslow theory of needs where the need of a person would depend on
where he is the pyramid.
3. Social Reference group theory: As per this the job which meets the interest, desires, and
requirements of his reference group then he will like it otherwise not. So, job of a clerk
might give satisfaction to the person belonging to economic and weaker section of the
society whereas the same might not give same satisfaction to someone belonging to higher
sections of the society.

6.1 Factors Impacting Job Satisfaction

The factors impacting job satisfaction can be categorized as

1. Nature of Job: There are 2 variables related to Nature of Job that impact job satisfaction.
a. Occupational Level: Higher the level of the job, higher the satisfaction
b. Job Content: The greater the variation in the job content and less the repetitiveness, the
greater the satisfaction

2. Personal Variables: There are 3 personal variables that impact job satisfaction.
a. Age: Generally, there is positive correlation between Age and Job Satisfaction. As age
increases people feel more satisfied except in the last some years before retirement.
b. Educational level: There is negative relationship between education and job
satisfaction. The more educated an individual, the higher the reference group to which
the individual looks for guidance. As a result, he might feel dissatisfied with his own
achievements.
c. Sex: Though there is no consistent evidence, but it is seen many a times that women are
more satisfied than men

3. Situational Variables: There are 5 situational variables impacting Job satisfaction

a. Considerate Leadership: People like to be treated with respect. More considerate the
leadership, higher the satisfaction
b. Pay and Promotional Opportunities: Higher the pay and promotion opportunities, the
better it is.

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c. Interaction and the work group: When there is positive environment in a group
resulting in group effort towards accomplishment of goals, one feels more satisfied.
d. Equitable Reward: If the rewards seem to be equitable with Job performance, then it
leads to Job satisfaction.
e. Working Conditions: The physical environment at the work location such as proper
lightening, canteen, sports facilities, proper tools to do the job enhances the Job
satisfaction.

6.2 Relationship between Job Satisfaction and Productivity

There are 2 views on this.

1. Job satisfaction impacts productivity: The logic is happier person will more effort in Job
performance.
2. Happier worker is not necessarily a productive worker: The logic is given by set of
reasons listed below.
a. It is the Job performance which leads to Job Satisfaction and not that Job
satisfaction leads to Job performance. There are two type of rewards – intrinsic and
extrinsic. Intrinsic rewards come from the job itself, so a better job performance
leads to higher intrinsic reward and hence better satisfaction.
b. The expectations of a person form the job may be low. So, by performing less he is
happy, but he is not productive.

7 Importance of Motivation in an Organization

The importance of motivation in an organization may be summed up as follows:

1) High Performance Level: A motivated employee put higher performance as compared to

other employees because a motivated employee attempts to use their maximum ability in
performing a job while other employees just use a part of their ability. Moreover, a motivated
employee increases their ability through learning which further increases their performance.

2) Low Employee Turnover and Absenteeism: Motivated employee stay in the organization and
lower their absenteeism. High turnover and absenteeism not only affect the productivity of an
organization but recruiting and developing large number of new employees take a lot of time
and resources. Moreover, high employee turnover also affects the reputation of the
organization in a negative way.

3) Acceptance of Organizational changes: An organization has to keep changing with the

changing environment, but many a times faced with a resistance to change. However, if the
employees are properly motivated, they accept, introduce, and implement these changes
keeping the organization on the right track of progress.

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