PERCEPTION

INTRODUCTION
Perception involves the way we view the world around us. It adds, meaning to information
gathered via the five senses of touch, smell, hearing, vision and taste. Perception is the primary
vehicle through which we come to understand our surroundings and ourselves. Perception can be
defined as a process by which individuals organize and interpret their sensory impressions in order
to give meaning to their environment.
IMPORTANCE OF PERCEPTION:
Simply because people's behavior is based on their perception of what reality is, not on reality
itself. Virtually all management activities rely on perception. In appraising performance, managers
use their perceptions of an employee's behavior as a basis for the evaluation. One work situation
that highlights the importance of perception is the selection interview. Perception is also culturally
determined. Based on our cultural backgrounds, we tend to perceive things in certain ways.
Thus, perception is the primary vehicle through which we come to understand our surroundings and
ourselves. Social perception is the process of interpreting information about another person. Social
perception is directly concerned with how one individual perceives other individuals. Formal
organization participants constantly perceive one another. Managers are perceiving workers,
workers are perceiving managers, line personnel perceive staff personnel, staff personnel perceive
line personnel, superiors perceive subordinates, and subordinates are perceiving superiors and so
on. There are numerous complex factors that enter into such social perception, but the primary
factors are found in the psychological process and personality.

FACTORS INFLUENCING PERCEPTION (PERCEPTION PROCESS):

A number of factors operate to shape and sometimes distort perception. These factors reside- In the

perceiver In the object or target being perceived orIn the context of the situation in which the perception
is made.
Characteristics of the Perceiver

Several characteristics of the perceiver can affect perception. When an individual looks at a target
and attempts to interpret what he or she, that interpretation is heavily influenced by personal
characteristics of individual perceiver. The major characteristics of the perceiver influencing
perception are:
Attitudes: The perceiver's attitudes affect perception. For example, suppose Mr. X is interviewing
candidates for a very important position in his organization – a position that requires negotiating
contracts with suppliers, most of whom are male. Mr X may feel that women are not capable of
holding their own in tough negotiations. This attitude will doubtless affect his perceptions of the
female candidates he interviews.
Moods: Moods can have a strong influence on the way we perceive someone. We think differently
when we are happy than we do when we are depressed. In addition, we remember information that
is consistent with our mood state better than information that is inconsistent with our mood state.
When in a positive mood, we form more positive impression of others. When in a negative mood,
we tend to evaluate others unfavorably.
Motives: Unsatisfied needs or motives stimulate individuals and may exert a strong influence on
their perceptions. For example, in an organizational context, a boss who is insecure perceives a
subordinate's efforts to do an outstanding job as a threat to his or her own position. Personal
insecurity can be transferred into the perception that others are out to "get my job", regardless of
the intention of the subordinates.
Self-Concept: Another factor that can affect social perception is the perceivers' self-concept. An
individual with a positive self-concept tends to notice positive attributes in another person. In
contrast, a negative self-concept can lead a perceiver to pick out negative traits in another person.
Greater understanding of self allows us to have more accurate perceptions of others in a group than
ordinary liking individuals. Motion, sound, size and other attributes of a target shape the way we
see it.
Interest: The focus of our attention appears to be influenced by our interests. Because our
individual interests differ considerably, what one person notices in a situation can differ from what
others perceive. For example, the supervisor who has just been reprimanded by his boss for coming
late is more likely to notice his colleagues coming late tomorrow than he did last week. If you are
preoccupied with a personal problem, you may find it hard to be attentive in class.
Cognitive Structure: Cognitive structure, an individual's pattern of thinking, also affects
perception. Some people have a tendency to perceive physical traits, such as height, weight, and
appearance, more readily. Others tend to focus more on central traits, or personality dispositions.
Cognitive complexity allows a person to perceive multiple characteristics of another person rather
than attending to just a few traits.
Expectations: Finally, expectations can distort your perceptions in that you will see what you
expect to see. The research findings of the study conducted by Sheldon S Zalkind and Timothy W
Costello on some specific characteristics of the perceiver reveal
Knowing oneself makes it easier to see others accurately.
One's own characteristics affect the characteristics one is likely to see in others.
People who accept themselves are more likely to be able to see favorable aspects of other people.
Accuracy in perceiving others is not a single skill.
These four characteristics greatly influence how a person perceives others in the environmental
situation.
Characteristics of the Target:
Characteristics in the target that is being observed can affect what is perceived. Physical
appearance plays a big role in our perception of others. Extremely attractive or unattractive
individuals are more likely to be noticed
Physical appearance plays a big role in our perception of others. The perceiver will notice the
target's physical features like height, weight, estimated age, race and gender. Perceivers tend to
notice physical appearance characteristics that contrast with the norm, that are intense, or that are
new or unusual. Physical attractiveness often color our entire impression of another person.
Interviewers rate attractive candidates more favorably and attractive candidates are awarded higher
starting salaries Verbal communication from targets also affects our perception of them. We listen
to the topics they speak about, their voice tone, and their accent and make judgments based on this
input. Non-verbal communication conveys a great deal of information about the target. The
perceiver deciphers eye contact, facial expressions, body movements, and posture all in an attempt
to form an impression of the target.
The perceiver, who observes the target's behavior, infers the intentions of the target. For example,
if our manager comes to our office doorway, we think "oh no! he is going to give me more work to
do". Or we may perceive that his intention is to congratulate us on a recent success. In any case,
the perceiver's interpretation of the target's intentions affects the way the perceiver views the target.
Targets are not looked at in isolation, the relationship of a target to its background influences
perception because of our tendency to group close things and similar things together. Objects that
are close to each other will tend to be perceived together rather than separately. As a result of
physical or time proximity, we often put together objects or events that are unrelated. For examples,
employees in a particular department are seen as a group. If two employees of a department
suddenly resign, we tend to assume their departures were related when in fact, they might be totally
unrelated.
People, objects or events that are similar to each other also tend to be grouped together. The
greater the similarity, the greater the probability we will tend to perceive them as a group.
Characteristics of the Situation
The situation in which the interaction between the perceiver and the target takes place has an
influence on the perceiver's impression of the target. For example, a professor may not
notice his 20-year-old female student in a bikini at the swimming pool. Yet the professor will
notice the same girl if she comes to his organizational behavior class in a bikini. In the same way,
meeting a manager in his or her office affects your impression in a certain way that may contrast
with the impression you would form had you met the manager in a restaurant.
The strength of the situational cues also affects social perception. Some situations provide strong
cues as to appropriate behavior. In these situations, we assume that the individual's behavior can be
accounted for by the situation, and that it may not reflect the individual's disposition. This is the
discounting principle in social perception. For example, you may encounter an automobile
salesperson who has a warm and personable manner, asks you about your work and hobbies, and
seems genuinely interested in your taste in cars. Can you assume that this behavior reflects the
salesperson's personality? You probably cannot, because of the influence of the situation. This
person is trying to sell you a car, and in this particular situation he probably treats all customers in
this manner.
Person Perception: Making Judgments about Others
Attribution Theory
Nonliving objects such as desks, machines, and buildings are subject to the laws of nature, but they
have no beliefs, motives, or intentions. People do. That‘s why when we observe people, we attempt
to explain why they behave in certain ways. Our perception and judgment of a person‘s actions,
therefore, will be significantly influenced by the assumptions we make about that person‘s internal
state.
Attribution theory tries to explain the ways in which we judge people differently, depending on
the meaning we attribute to a given behavior. It suggests that when we observe an individual‘s
behavior, we attempt to determine whether it was internally or externally caused. That
determination, however, depends largely on three factors: (1) distinctiveness, (2) consensus, and
(3) consistency. First, let‘s clarify the differences between internal and external causation, and then
we‘ll elaborate on each of the three determining factors. Internally caused behaviors are those we
believe to be under the personal control of the individual. Externally caused behavior is what we
imagine the situation forced the individual to do. If one of your employees is late for work, you
might attribute that to his partying into the wee hours and then oversleeping. This is an internal
attribution. But if you attribute lateness to an automobile accident that tied up traffic, you are
making an external attribution. Now let‘s discuss the three determining factors.

Distinctiveness refers to whether an individual displays different behaviors in different situations. Is

the employee who arrives late today also one who regularly ―blows off‖ commitments? What we
want to know is whether this behavior is unusual. If it is, we are likely to give it an external
attribution. If it‘s not, we will probably judge the behavior to be internal. If everyone who faces a
similar situation responds in the same way, we can say the behavior shows consensus. The behavior
of our tardy employee meets this criterion if all employees who took the same route were also late.
From an attribution perspective, if consensus is high, you would probably give an external
attribution to the employee‘s tardiness, whereas if other employees who took the same route made
it to work on time, you would attribute his lateness to an internal cause. Finally, an observer looks
for consistency in a person‘s actions. Does the person respond the same way over time? Coming in
10 minutes late for work is not perceived in the same way for an employee who hasn‘t been late for
several months as it is for an employee who is late two or three times a week. The more consistent
the behavior, the more we are inclined to attribute it to internal causes.
One of the most interesting findings from attribution theory research is that errors or biases distort
attributions. When we make judgments about the behavior of other people, we tend to
underestimate the influence of external factors and overestimate the influence of internal or
personal factors. This fundamental attribution error can explain why a sales manager is prone to
attribute the poor performance of her sales agents to laziness rather than to the innovative product
line introduced by a competitor.
Common Shortcuts in Judging Others
Selective Perception Any characteristic that makes a person, an object, or an event stand out will
increase the probability we will perceive it. Why? Because it is impossible for us to assimilate
everything we see; we can take in only certain stimuli. This explains why you‘re more likely to
notice cars like your own, or why a boss may reprimand some people and not others doing the same
thing. Because we can‘t observe everything going on about us, we engage in selective perception .
A classic example shows how vested interests can significantly influence which problems we see.
Halo Effect When we draw a general impression about an individual on the basis of a single
characteristic, such as intelligence, sociability, or appearance, a halo effect is operating. If you‘re a
critic of President Obama, try listing 10 things you admire about him. If you‘re an admirer, try
listing 10 things you dislike about him. No matter which group describes you, odds are you won‘t
find this an easy exercise! That‘s the halo effect: our general views contaminate our specific ones.

Contrast Effects An old adage among entertainers is ―Never follow an act that has kids or
animals in it.‖ Why? Audiences love children and animals so much that you‘ll look bad in
comparison. This example demonstrates how a contrast effect can distort perceptions. We don‘t
evaluate a person in isolation. Our reaction is influenced by other persons we have recently
encountered.

Stereotyping When we judge someone on the basis of our perception of the group to which he or
she belongs, we are using the shortcut called stereotyping.

IMPRESSION MANAGEMENT
Social perception is concerned with how one individual perceives other individuals. Conversely,
impression management is the process by which the general people attempt to manage or control
the perceptions that others form about them. People often tend to present themselves in such a way
so as to impress others in a socially desirable manner. Thus, impression management has
considerable' implications for activities like determining the validity of performance appraisals. It
serves as a pragmatic, political tool for someone to climb the ladder of success in organizations.

The Process of Impression Management

As with other cognitive processes, impression management has many possible conceptual
dimensions arid has been researched in relation to aggression, attitude change; attributions and
social facilitation, among other things. Most recently, however, two separate components of
impression management have been identified - impression motivation and impression construction.
Especially in an employment situation, subordinates may be; motivated to control how their boss
perceives them. The degree of this motivation to manage impression will depend
on factors like the relevance that these impressions have on the individual's goals, the value of these
goals, the discrepancy between the image one would like others to hold and the image one believes
others already hold.
Impression construction, the other major process, is concerned with the specific type of impression
people want to make and how they create it. Although some theorists limit the type of impression
only to personal characteristics others include such things as attitudes, physical status, interests, or
values. Using this broader approach, five factors have been identified as being especially relevant
to the] kinds of impression people try to construct: the self-concept, desired and undesired identity
images, role constraints, target values and current social image. Although there has been a
considerable research done on how these five factors influence the type of impression that people
try to make, there is still little known of how they select the way to manage others' perceptions of
them.

Employee Impression Management Strategies

There are two basic strategies of impression management that employees can use. If employees are
trying to minimize responsibility for some negative event or to stay out of trouble, they may
employ a demotion-preventative strategy. On the other hand, if they are seeking to maximize
responsibility for a positive outcome or to look better than what they really are, then they lean use a
promotion-enhancing strategy.
The demotion-preventative strategy is characterized by the following activities:
Employees attempt to excuse or justify their actions.
Employees apologies to the boss for some negative event.
Employees secretly tell their boss that they fought for the right thing, but were overruled.
Employees using this approach try to disassociate themselves from the group and from the problem
.
The promotion enhancing strategies involve the following activities:
Employees harbor a feeling that they have not been given credit for a positive outcome.
Employees point out that they did more, but received a lesser credit.
Employees identify cither personal or organizational obstacles they had to overcome to accomplish
an outcome and expect a higher credit.
Employees ascertain that they are seen with the right people at the right times

MOTIVATION

The word motivation is derived from ‗motive', which means an active form of a desire, craving or
need that must be satisfied. Motivation is the key to organizational effectiveness. The manager in
general has to get the work done through others. These 'others' are human resources who need to be
motivated to attain organizational objectives.

DEFINITION
According to George R. Terry, "Motivation is the desire within an individual that stimulates him or
her to action."
In the words of Robert Dubin, it is "the complex of forces starting and keeping a person at work in
an organization". Viteles defines motivation as "an unsatisfied need which creates a state of tension
or disequilibrium, causing the individual to move in a goal directed pattern towards restoring a state
of equilibrium, by satisfying the need."
According to Encyclopaedia of Management. "Motivation refers to the degree of readiness of an
organism to pursue some designated goals and implies the determination of the nature and locus of
force inducing a degree of readiness."
On the basis of above definitions, the following observations can be made regarding motivation:
Motivation is an inner psychological force, which activates and compels the person to behave in a
particular manner.
The motivation process is influenced by personality traits, learning abilities, perception and competence
of an individual.
A highly motivated employee works more efficiently and his level of production tends to be higher
than others.
Motivation originates from the-needs and wants of an individual. It is a tension of lacking
something in his mind, which forces him to work more efficiently.
Motivation is also a process of stimulating and channelizing the energy of an individual for
achieving set goals.
Motivation also plays a crucial role in determining the level of performance. Highly motivated
employees get higher satisfaction, which may lead to higher efficiency.
Motivating force an^ its degree, may differ from individual to individual depending on his
personality, needs, competence and other factors.
The process of Motivation helps the manager in analyzing and understanding human behavior and
finding but how an individual can be inspired to produce desirable working behavior.
Motivation may be positive as well as negative. Positive motivation includes incentives, rewards
and other benefits while negative motivation implies some punishment, fear, use of force etc.
The motivation procedure contributes to and boosts up the morale of the employees. A high degree
of motivation may lead to high morale.

FEATURES OF MOTIVATION

The following are the features of motivation:

It is an internal feeling and forces a person to action. It is a
continuous activity.
It varies from person to person and from time to time. It may
be positive or negative.

IMPORTANCE OF MOTIVATION
Motivation is an important part of managing process. A team of highly qualified and motivated
employees is necessary for achieving objectives of an organization because of the following
reasons:
Motivated employees make optimum use of available resources for achieving objectives.
Motivation is directly related to the level of efficiency of employees.
Motivated employees make full use of their energy and other abilities to raise the existing level of
efficiency.
Motivated employees make goal-directed efforts. They are more committed and cooperative for
achieving organizational objectives.
Motivated employees are more loyal and sincere to an organization. These factors help reduce
absenteeism and labor turnover.
Motivation is considered as a backbone of good industrial relations Effectively motivated
employees get more job satisfaction and possess high morale.
Motivation also helps in improving the image of an organization.

The motivation process begins with identification of individual needs. For example, when an
employee feels underpaid then what, then he tries to fulfill his needs by asking for a raise or by
working harder to earn a raise or by seeking a new job. He then chooses to pursue one or more of
these options for instance, working harder while simultaneously looking for a job. If his hard work
resulted in a pay rise, he probably feels satisfied and will continue to work hard. But if no raise has
been provided he is likely to try another option. Since people have many different needs, the
satisfaction of one need or set of needs is likely to give rise to the identification of other needs.
Thus, the cycle of motivation is constantly repeated.
Understanding human motivation is crucial for managing people. Extensive research has been
performed to find out what makes people work and how to motivate them. This includes managers,
social scientists, behaviorists and psychologists. A number of theories have been developed, even
though there is no universally acceptable motivation theory. Understanding these theories
facilitates the managers to get a better insight into the human behavior.

NEED-BASED THEORIES TO MOTIVATION

Need-based theories try to answer the question, "what factor(s) motivate people to choose certain
behaviors?" Some of the widely known need-based theories are as follows:
(a) Maslow's Hierarchy of Needs
Maslow Abraham proposed his theory in the 1940s. This theory, popularly known as the Hierarchy
of Needs assumes that people are motivated to satisfy five levels of needs: physiological, security,
belongingness, esteem and self-actualization needs. The figure shows Maslow's hierarchy of need

Maslow suggested that the five levels of needs are arranged in accordance with their importance,
starting from the bottom of the hierarchy. An individual is motivated first and foremost to satisfy
physiological needs. When these needs are satisfied, he is motivated and
'moves up' the hierarchy to satisfy security needs. This 'moving up process continues until the
individual reaches the self-actualization level.
Physiological needs represent the basic issues of survival such as food, sex, water and air. In
organizational settings, most physiological needs are satisfied by adequate wages and by the work
environment itself, which provides employees with rest rooms, adequate lighting, comfortable
temperatures and ventilation.
Security or safety needs refer to the requirements for a secure physical and emotional environment.
Examples include the desire for adequate housing and clothing, the need to be free from worry
about money and job security and the desire for safe working conditions. Security needs are
satisfied for people in the work place by job continuity, a grievance resolving system and an
adequate insurance and retirement benefit package.
Belonging or social needs are related to the, social aspect of human life. They include the need for
love and affection and the need to be accepted by one's peers. For most people these needs are
satisfied by a combination of family and community relationships and friendships on the job.
Managers can help ensure the 'satisfaction of these important needs by allowing social interaction
and by making employees feel like part of a team or work group.
Esteem needs actually comprise of two different sets of needs:
The need for a positive self-image and self-respect.
The need for recognition and respect from othersOrganizations can help address esteem needs by
providing a variety of external symbols of accomplishment such as job titles and spacious offices.
At a more fundamental level, organizations can also help satisfy esteem needs by providing
employees with challenging job assignments that can induce a sense of accomplishment.

At the top of the hierarchy are those needs, which Maslow defines the self-actualization needs.
These needs involve realizing one's potential for continued: growth and individual development.
Since these needs are highly individualized and personal, self-actualization needs are perhaps the
most difficult for managers to address. Therefore, an employee should try to meet these needs on
his own end. However, an organization can help his employee by creating a climate for fulfillment
of self-actualization needs. For instance, an organization can help in fulfillment of these needs by
encouraging employee‘s participation in decision-making process and by providing them with an
opportunity to learn new things about their jobs and organization. This process of contributing to
actual organizational performance helps employees experience personal growth and development
associated with self-actualizing.
Maslow's concept of the need hierarchy possesses a certain intuitive logic and has been accepted
universally by managers. But research has revealed several shortcomings of the theory such as
some research has found that five levels of needs are not always present and that the order of the
levels is not always the same as assumed by Maslow. Moreover, it is difficult for organizations to
use the need hierarchy to enhance employee motivation.

(b) ERG Theory of Motivation

Clayton Alderfer has proposed an alternative hierarchy of needs - called the ERG Theory of
Motivation. The letters E, R and G stand for Existence, Relatedness and Growth ERG Theory the
need hierarchy developed by Maslow into three 9.2. The existence needs in this theory refers to
the physiological and security needs of Maslow. Relatedness needs refers to belongingness and
esteem needs. Growth needs refers to both self-esteem and self-actualization needs.
Although ERG Theory assumes that motivated behavior follows a hierarchy in somewhat the same
fashion as suggested by Maslow, there are two important differences.

Firstly, ERG theory suggests that more than one kind of need might motivate a person at the same
time. For example, it allows for the possibility that people can be motivated by a desire for money
(existence); friendship (relatedness), and an opportunity to learn new skills (growth) all at the same
time.

Secondly, ERG theory has an element of frustrations-regression that is missing from Maslow's need
hierarchy. Maslow maintained that one heed must be satisfied before an individual can progress to
needs at a higher level, for example, from security needs to belongingness. This is termed as
satisfaction—progression process. Although the ERG theory includes this process, it also suggests
that if needs remain unsatisfied at some higher level, the individual will become frustrated, regress
to a lower level and will begin to pursue low level needs again. For" example, a worker previously
motivated by money (existence needs) is awarded a pay rise to satisfy this needs. Then he attempts
to establish more friendship to satisfy relatedness needs. If for some reason an employee finds that
it is impossible to become better friends with others in the work place, he may eventually become
frustrated and regress to being motivated to earn even more money. This is termed as ‗frustration-
regression' process.

The ERG theory emphasis on the following key points regarding needs:
Some needs may be more important than others.
People may change their behavior after any particular set of needs has been satisfied.

The Dual-Structure Approach to Motivation

Another popular need-based approach to motivation is the dual-structure approach developed by
Frederick Herzberg. This is also known as Two-factor Theory. Herzberg developed this approach
after interviewing 200 accountants and engineers in Pittsburg. He asked them to recall such
occasions when they had been dissatisfied and less motivated. He found that entirely different sets
of factors were associated with satisfaction and dissatisfaction. For instance, an individual who
identified 'low pay' as causing dissatisfaction did not necessarily mention 'high pay' as a cause of
satisfaction. Instead, several other factors, such as recognition or accomplishment, were cited as
causing satisfaction.
This finding suggests that satisfaction and dissatisfaction are at opposite ends of a single scale.
Employees would, therefore, be satisfied, dissatisfied or somewhere in between. Herzberg argued
that attitudes and motivation consists of a dual structure.
One structure involves a set of factors that result in feelings ranging from satisfaction to no
satisfaction. The other structure involves a set of factors that result in feelings ranging from
dissatisfaction to no satisfaction.
Herzberg identified two sets of factors responsible for causing either satisfaction or dissatisfaction.
The factors influencing satisfaction are called motivation factors or motivators, which are related
specifically to the job itself and the factors causing dissatisfaction are called hygiene factors, which
are related to the work environment in which the job is performed.
Motivating factors:
Achievement Recognition
Advancement The work
itself
The possibility of personal growth Responsibility
Hygiene or Maintenance Factors:
Company policies Technical
supervision
Interpersonal relations with supervisor
Interpersonal relations with peers
Interpersonal relations with subordinates
Salary
Job security Personal
life Work conditions
Status

Based on these findings, Herzberg recommended that managers seeking to motivate employees
should first make sure that hygiene factors are taken care of and that employees are not dissatisfied
with pay, security and working conditions. Once a manager has eliminated employee
dissatisfaction, Hertzberg recommends focusing on a different set of factors to increase motivation,
by improving opportunities for advancement, recognition, advancement and growth. Specifically,
he recommends job enrichment as a means of enhancing the availability of motivation factors

Although widely accepted by managers, Hertzberg‘s dual structure approach however suffers from
certain drawbacks. Other researchers who measured satisfaction and dissatisfaction based on
different aspects reached very different conclusions. They have also criticized Herzberg's theory for
its inability to define the relationship between satisfaction and motivation and to pay enough
attention to differences between individuals. Hence, at present Herzberg's theory is not held in high
esteem by researchers in the field of motivation. The theory, however, had a major impact on
managers and has played a key role in increasing their awareness of motivation and its importance
in type work place.

'X' AND ‘Y' THEORIES OF MOTIVATION

Douglas McGregor observed two diametrically opposing viewpoints of managers 'about their
employees; one is negative called "Theory of X" and another is positive called "Theory of Y".
Theory of X
Following are the assumptions of managers who believe in the "Theory of X" regarding their
employees.
Employees dislike work
Employees must be coerced, controlled or threatened to do the work.
Employees avoid responsibilities and seek formal direction.
Most employees consider security of job, most important of all other factors in the job and have
very little ambition
Theory of Y
Following are the assumptions of managers who believe in the "Theory of Y" regarding their employees.
Employees love work as play or rest.
Employees are self-directed and self-controlled and committed to the organizational objectives.
Employees accept and seek responsibilities.
Innovative spirit is not confined to managers alone, some employees also possess it.
Applicability of Theories 'X' and 'Y'
Theory 'X' in its applicability, places exclusive reliance upon external control of human behavior,
while theory 'Y', relies heavily on self-control -and self-direction.Theory 'X' points to the
traditional approach of management. Literally, this theory of behavior is related to organizations
that lay hard and rigid standards of work-behavior. Some examples of such organizations are
organizations that break down jobs into specialized elements, establish 'norms of production,
design equipment to control worker's pace of work, have rigid rules and regulations, that are
sometimes very vigorously enforced. Theory 'Y‘, on the other hand, secures the commitment of
employees to organizational objectives. This motivational theory places emphasis on satisfaction of
employees. While applying this theory, the use of authority, as an instrument of command and
control is minimal. Employees exercise self-direction and self- control.
The concepts of 'Job' Enlargement', 'Participation' and 'Management by Objectives' are quite
consistent with theory ' Y'.
McGregor supports the applicability of motivational theory 'Y', instead of theory ‗X'. Organization
should keep in mind that once theory 'X' is employed for organizational working, it is difficult for
the management to shift to theory ' Y', all of a sudden. However, with systematic, judicious and
slow steps, shifting in the practical applicability of theory 'X' to theory ' Y' usually can be achieved.

MC-CLELLAND's NEED THEORY OF MOTIVATION

David C. McClelland and his associate Atkinson have contributed to an understanding of
motivation by identifying three types of basic motivating needs. These needs have been classified
as: Need for Power Need for Affiliation Need for Achievement

Need for Power

According to this theory the need for power, which might be defined as the desire to be influential
in a group and to control one's environment is an important motivation factor. Research suggests
that people with a strong need for power, are likely to be superior performers and occupy
supervisory positions. Such types of individuals generally look for positions of leadership, they act
effectively, are outspoken, have a stubborn character and exert authority.

Need for Affiliation

The need for affiliation means the desire for human companionship and acceptance. Those with a
high need for affiliation often behave the way they think other people want them to, in an effort
to maintain friendship. They prefer a job that entails a good deal of social interaction and offers
opportunities to make friends. The principal characteristics of such peoples' traits are as follows:
Desire to like and be liked. Enjoy
company and friendship. Prefer
cooperative situation.
Excel in group task Star attraction in gathering.
Leadership qualities.
This need is closely associated with the "social-type‖ of personality, who are sociable, friendly,
cooperative and understanding. Persons with high motivation for power and affiliation have better
chances of becoming good managers
Need for Achievement
People with a high need for achievement, always feel ambitious to be successful; are ever prepared
to face challenging situations and set arduous goals .for themselves. They are prone to take
calculated risks; and possess a high sense of personal responsibility in getting jobs done. These
people are concerned with their progress, and feel inclined to put in longer hours of work" Failures
never dishearten them and they are always ready to put in their best efforts for excellent
performance.

PROCESS-BASED THEORIES TO MOTIVATION

The field of organizational behavior has generally moved away from the needs theories of
motivation. Needs theories are content-oriented - that is, they explain what are the causes leading to
motivated behaviors. They do not explain why or how motivated behavior occurs. These questions
relate to behaviors or actions, goals and feelings of satisfaction., These concepts are addressed by
various process-based theories to motivation.
Process-based theories to motivation are concerned with how motivation occurs. They focus on
why people choose to enact certain behavioral options to fulfill their needs and how they evaluate
their satisfaction after they have attained these goals. Two of the most useful process- based
approaches to motivation arc expectancy theory and equity theory.
Expectancy Theory of Motivation
Expectancy theory of motivation was developed by- Victor Vroom. Basically, Vroom's expectancy
theory views motivation as a- process of governing choices. The expectancy theory tries to explain
how and why people choose a particular behavior over an alternative. The theory suggests that
motivation depends on two things: how much an individual desires a particular goal and how likely
he thinks he can get it. For instance, a person is looking for a job and reads an advertisement for a
position of Marketing Executive with a starting salary of Rs. 3 lakh per year. Even though he might
want the job, he probably does not apply because he is aware that there is little chance of getting it.
Next he sees an advertisement is for Field Supervisor for a salary of Re. 1 lakh per year. In this
case he realizes that he .can probably get the job, but still doesn't apply simply because he doesn't
want it. Then he comes across another advertisement for a Management Trainee in a big
organization with a starting salary of Rs. 2 lakh per year. He chooses to apply for this job because
he wants it and also thinks that he has a reasonable chance of getting it.
The expectancy theory rests on four assumptions:
The theory assumes that behavior is determined by a combination of forces in the individual and in
the environment.
It assumes that people make decisions about their own behavior in organizations. It
assumes that different people have different types of needs, desires and goals.
It assumes that people make choices from among alternative plans of behavior based on their
perceptions of the extent to which a given behavior will lead to desired outcomes.
The above model suggests that motivation leads to efforts and that effort, when combined with
individual ability and environmental factors, result in performance. Performance, in turn, leads to
various outcomes—each of which has an associated value called its 'valence'. According to this
model, individuals develop some sense of these expectations before they exhibit motivated or non-
motivated behaviour. Effort-to-Performance Expectancy

The effort-to-performance expectancy refers to an individual's perception of the probability that

effort will result in high performance. When an individual believes that effort will lead directly to
high performance, expectancy is quite strong, that is close to 1.00. For instance, if one feels sure
that studying hard for an examination (effort) will result in scoring high marks (performance), then
his effort-to-performance expectancy is high, that is close to 1.0. When an individual believes that
effort and performance are unrelated, the effort-to-performance expectancy is very weak, that is
close to 0.0. Usually we are not sure about our expectations, so they fall somewhere between 0.0
and 1.0 with a moderate expectancy. ;
Performance-to-Outcome Expectancy
The performance-to-outcome expectancy means an individual's perception of the probability that
performance will result in a specific outcome. For example, an individual who believes that high
performance will lead to a pay raise has a high performance-to-outcome expectancy, approaching
to 1.00. An individual who believes that high performance may possibly lead to a pay raise has a
moderate expectancy between 1.00 and 0. And an individual who believes that performance has no
relationship to rewards has a low performance-to-outcome expectancy that is close to 0.
Outcomes and Valence
Expectancy theory recognizes that an individual may experience a variety of outcomes as a
consequence, of behavior in an organizational environment. A high performer, for example, may
get big pay raises, fast promotions and praise from the boss. However, he may also be subject to a
lot of stress and incur resentment from co-workers. Each of these outcomes has an associated value
or valence that is,, an index of how much an individual desires a particular outcome. If an
individual wants an outcome, its valence is positive. If an individual does not want an outcome, its
valence is negative. If an individual is indifferent to an outcome, its valence is zero. It is this
advantage of expectancy theory that goes beyond the need-based approaches to motivation.
Thus, for motivated behavior to occur on the part of any individual, three conditions must be met,
which are as follows:
First, the effort-to-performance expectancy must be greater than zero.
Second, the performance-to-outcome expectancy must also be greater than zero.
Third, the sum of the valences for all relevant outcomes must be greater than zero.
Expectancy theory maintains that when all of these conditions are met, the individual is motivated
to expand effort. The expectancy theory also has several other important practical
implications, which managers should keep in mind. The managers can perform the following
activities in relation to this -
Determine what outcomes employees prefer.
Define, communicate and clarify the level of performance that is desired.
Establish attainable performance goals.
Link desired outcomes to performance goal achievement.
Practical Applicability of Expectancy Theory
If a manager wishes to motivate his employees for increased and better performance, then he has to
make sure whether the reward system is highly supportive to hard work or high quality. The
manager will particularly see that the specific system, as applicable in their case, is communicated
to them, so as to make them feel confident that their energized efforts will be rewarded.
Another important point, which should not be ignored by the manger, is that rewards must
correspond to the varying preferences of an individual employee.
In conclusion, no doubt 'expectancy' theory has gained much popularity with theorists, but much
more work still needs to be put in, before it can be accepted for use as an effective instrument of
explanation of 'motivation' with all its implications.
The Porter-Lawer Extension
Porter and Lawler have proposed an interesting extension to the expectancy theory. The human
relationists assumed that employee satisfaction causes good performance but research has not
supported such relationship. Porter and Lawler suggest that there may indeed be a relationship
between satisfaction and performance but that it goes in the opposite direction, that is, superior
performance can lead to satisfaction.
Porter-Lawler Model
First, an individual's initial effort is influenced by his perception regarding the value of reward and
the likelihood that the effort will yield a reward. The probability that increased effort will lead to
improved performance is affected by an individual's traits, abilities and perception of his role in an
organization. The model also distinguishes between intrinsic and extrinsic rewards. Finally, the
Porter-Lawler model borrows from equity theory the idea that the employee's satisfaction depends
on the perceived equity of the rewards relative to the 'effort expended and the level of performance
attained.
Implications for Managers
Expectancy theory can be useful for organizations attempting to improve the motivation of their
employees. Nadler and Lawler suggest a series of steps for managers in applying the basic ideas of
the theory.
They should determine the primary outcomes that each employee likely desires.
They should decide what kind and levels of performance are needed to meet organizational goals.
They should ascertain that the desired levels of performance are attainable. They
should ensure that desired outcomes and performance are linked.
They should also analyze the complete work situation for conflicting expectancies. They
should make sure that the rewards are large enough.
They should make sure that the overall system is equitable for everyone.

The expectancy theory has also its limitations. It is quite difficult to apply, for example, application
of this theory in the work place would require to identify all the potential outcomes
for each employee, to determine all relevant expectancies and then to balance everything somehow
to maximize employee motivation. Expectancy theory also assumes that people are rational -
therefore, they will systematically consider all the potential outcomes and their associated
expectancies before selecting a particular behavior. However, few people actually make decisions
in such a precise and rational manner.
(b) Equity Theory
J. Stacy Adams developed equity theory of motivation. The equity theory argues that motivations
arise out of simple desire to be treated fairly. Equity can be defined as an individual's belief that he
is being treated fairly relative to the treatment of others. The figure shows the equity process.

A person's perception of equity develops through a four-step process as shown below: First
an individual evaluates the way he is being treated by an organization.
The next step is for an individual to choose a co-worker who seems to be in a roughly similar
situation and to observe how an organization treats him.
In the crucial step of equity theory an individual 'compares' the two treatments. In the fourth step he
evaluate a sense of equity to see if the two treatments seem similar or if the are different.
Adam suggests that employees make these comparisons by focusing on input and outcome ratios.
An employee's contributions or input to an organization include time, education, effort, experience
and loyalty. Outcomes are what an individual receives from an organization such as, pay,
recognition and social relationships. The theory suggests that people view their outcomes and
inputs as ratio and then- compare their ratio to the ratio of someone else. This other 'person' may be
someone in the work group. The comparison may result in three types of attitudes:
The individual may feel equitably rewarded, Under-rewarded, Over-rewarded
An individual will experience a feeling of equity when the two ratios are equal. If an individual has
the feeling of equity then he should maintain the status quo. If he has a feeling of inequity then he
is likely to change the input.
The single most important idea for managers to remember about equity theory is that if rewards are
to motivate employees, they must be perceived as being equitable and^ fair. However, managers
must remember that different employees have different sense towards basis for a reward and this
may result in problems. Hence, the best way to avoid such problems is to make all employees
aware of the basis for rewards.
Reinforcement Based Approaches to Motivation
A final approach to the motivation process focuses on why some behavior are maintained and
changed overtime. Reinforcement-based approaches explain the role of those rewards as they cause
behavior to change or remain the same over time. Specifically, reinforcement theory is based on the
fairly simple assumption that behaviors that result in rewarding consequences are likely to be
repeated, whereas behavior that results in punishing consequences are less likely to be repeated.
There arc similarities between expectancy theory and reinforcement theory. Both consider the
processes by which an individual chooses behaviors in a particular situation.
However, the expectancy theory focuses more on behavior choices and the latter is more
concerned with the consequences of those choices.

Reinforcement Contingencies
Reinforcement contingencies are the possible outcomes that an individual may
experience as a result of his or her behaviors. The four types of reinforcement
contingencies that can affect individuals in an organizational setting are positive
reinforcement, avoidance, punishment and extinction.
Positive Reinforcement is a method of strengthening behavior. It is a reward or a
positive outcome after a desired behavior is performed. When a manager' observes an
employee is doing a good job and offers praise then this praise helps in positive
reinforcement of behavior. Other positive reinforces include pay, promotions and
awards.
The other reinforcement, contingency that can strengthen desired behavior is avoidance.
This occurs when an individual chooses certain behavior in order to avoid unpleasant
consequences. For instance, an employee may come to work on time to avoid criticism.
Punishment is used by some managers to weaken undesired behaviors. The logic is that
the unpleasant, consequence will reduce an undesirable behavior again, for example,
punishing with fine for coming late.
Extinction can also be used to weaken behavior, specially that has previously been
rewarded. When an employee tells a vulgar joke and the boss laughs, the laughter
reinforces the behavior and the employee may continue to tell similar jokes. By simply
ignoring this behavior and not reinforcing it, the boss can cause the behavior to subside
which eventually becomes 'extinct'.
Positive reinforcement and punishment are the most common reinforcement
contingencies practiced by organizations. Most managers prefer a judicious use of
positive reinforcement and punishment. Avoidance and extinction are generally used
only in specialized circumstances.