RBSE Class 12 Business Studies Notes Chapter 4 Motivation: Meaning, Definition, Needs and Importance, Techniques and Theories

Rajasthan Board RBSE Class 12 Business Studies Notes Chapter 4 Motivation: Meaning, Definition, Needs and Importance, Techniques and Theories

In modem times, the main objective of every organisation is to make optimum and efficient utilisation of human resources.

The term motivation is derived from the word ‘motive’. Motivation is the reason for people’s action, desires and needs.

It is a psychological energy which inspires people to achieve organisational goals.

Characteristics of Motivation:

  1. It is a continuous process
  2. It is a psychological process
  3. It satisfies human needs/ wants
  4. Only human resources can be motivated
  5. Motivational techniques can be either positive or negative
  6. Motivation produces goal-oriented behaviour
  7. Motivation is an energising force
  8. Motivation is both cause and effect of an organisation’s success.

RBSE Class 12 Business Studies Notes Chapter 4 Motivation: Meaning, Definition, Needs and Importance, Techniques and Theories

Need and Importance of Motivation:

  1. Helps in achieving determined goals
  2. Increases job satisfaction
  3. Ensures proper utilisation of resources
  4. Improves employees’ morale
  5. Builds better labour relations
  6. Reduces employee absenteeism and enhances employee turnover
  7. Forms a basis of managerial function
  8. Faciliates changes.

Techniques of Motivation:

  1. Financial or Monetary Techniques : Financial techniques of motivation are those which are in direct monetary terms and serve to motivate people for better performance.
  2. Non-Financial or Non-monetary Techniques : All the needs of an individual cannot be satisfied by money. Psychological, social and emotional factors play an important role in providing motivation. Non-financial techniques mainly focus on these needs.

RBSE Class 12 Business Studies Notes Chapter 4 Motivation: Meaning, Definition, Needs and Importance, Techniques and Theories

Some of the Non-Financial techniques are :

  1. Status & Job security
  2. Praise & Recognition
  3. Participation in management
  4. Effective leadership & supervision
  5. Delegation of Authority
  6. Job Rotation & Job Enlargement
  7. Employee Empowerment
  8. Group Discussion / Quality Circle.

Theories / Concepts of Motivation :

Various management thinkers have given different concepts & theories of motivation.

1. Maslow’s Need Hierarchy Theory :

Maslow’s Need Hierarchy Theory is considered as one of the most famous theories.

Abaraham Maslow, a well-known psychologist, has outlined the elements of an overall theory of motivation, in a classic paper published in 1943.

This theory was based on human needs. He felt that within every human, there exists a hierarchy of 5 needs. These are :

  • Physiological Needs : It includes the basic needs of human beings. Example : Food, Clothes, Shelter, etc.
  • Safety Needs: Includes personal & financial security & health & well-being.
  • Love: The need for friendship, relationships & family.
  • Self-Esteem Needs : The need of feel confident & be respected by others.
  • Self-Actualisation Needs : The desire to achieve everything you possibly can and make the most out of yourself.

2. Herzberg’s Two Factor Theory :

  • Motivation Hygiene Theory or dual factor theory is propounded by behavioural scientist Fedrick Herzberg.
  • He, along with his associates, researched at Psychological Service, Pittisburgh; and developed ‘Two-Factor Theory’.
  • This theory is based on empirical research on job attitudes of200 engineers and accountants of a company.

The researchers asked two questions from those hundred employees :

  • When did you feel exceptionally good about your job ?
  • When did you feel exceptionally bad about your job ?

Herzberg grouped these responses into two categories :

  • Hygiene factors or Maintenance factors.
  • Motivators or Satisfiers.

Hygiene Factors :

  • Company’s policy and administration
  • Working conditions.
  • Job security
  • Salary or wages.
  • Quality of supervision
  • Fringe benefits.
  • Interpersonal relations with superiors and subordinates.

Motivator Factors :

  • Achievement
  • Recognition and Honour
  • Development or Advancement
  • Responsibility
  • Opportunities
  • Work Itself

According to Herzberg, managers should maintain adequate amount of hygiene factors, in order to avoid dissatisfaction among employees and must ensure adequacy of motivating factors, in order to motivate the employees.

3. ‘X’ and V Theory of MC Gregor :

Prof. Douglas MC Gregor was a psychologist management consultant and an author, who named his book ‘Human Side of Enterprise’ which described two distinct sets of assumptions about people at work.

He believed that these assumptions influence the thinking and attitude of managers about the people at work.

MC Gregor has labelled these set of assumptions as Theory ‘X’ and Theory ‘Y’.
Theory X: Theory X managers tend to take a pessimistic view of people, and assume that they are naturally unmotivated and dislike work. It is a traditional approach.

Assumptions of X Theory :

The average employee / human being, inherently dislikes his/her work and considers it as a burden and will avoid work as far as possible.

  • The average human being, by nature, resists change and likes to work with traditional techniques / methods.
  • They wish to avoid responsibility.
  • They are relatively less ambitious and lack creativity.
  • They are inherently self-centered and indifferent to organisational objectives.
  • They work for economic and financial gains.
  • They want security above all other factors associated with the work.

Theory Y :

Theory Y managers have an optimistic, positive opinion of, people : People have greater responsibility & managers encourage them to develop their skills & suggest improvement.

Assumptions of Theory Y :

  • Employees find that work is as natural as play or rest, if organisational conditions are appropriate.
  • They welcome new techniques and changes and are ready to accept them.
  • They learn not only to accept, but also to seek responsibility.
  • They seek responsibility because it allows them to satisfy higher-level needs which motivates them.
  • They are intellectual, imaginative and creative to solve problems.
  • They want to make maximum use of their potential.

4. William Ouchi’s ‘Z’ Theory :

  • The credit to propound ‘Z’ theory of motivation goes to American Managerial practitioner Prof. William G. Ouchi.
  • He wrote a book entitled ‘Theory Z : How American business can meet the Japanese challenge’. This theory was published in 1981.
  • According to Wichrich and Koontz, “Theory Z refers to selected managerial practices adapted to the environment of United States as suggested by W. Ouchi.”
  • Theory Z is a hybrid management system which incorporates the strength of Japanese and American management.

5. Assumptions of ‘Z’ Theory :

  • Life-time employment to employees
  • Slow evolution and promotion.
  • Career Paths
  • Emphasis on humanity concern for the people.
  • Collective decision-making
  • Human resource development.
  • Internal control.

RBSE Class 12 Business Studies Notes Chapter 4 Motivation: Meaning, Definition, Needs and Importance, Techniques and Theories

Important Glossary :

Motivation : It is a psychological energy which inspires the people to achieve organisationl goals.

Financial Techniques : Financial techniques of motivation are those which are in direct monetary form or measurable in monetary terms.

Non-Financial Techinques : Non-financial techniques mainly focus on psychological, social and emotional factors rather than money-driven satisfaction.

Job expansion : Job expansion means expanding or adding more and different, but simple tasks to a specialised job.

Promotion : It means the deputation of an employee from his/her present profile / designation to a higher designation profile.

Delegation of Authority : Delegation of Authority means that the manager or superior delegates some work and responsibilities to his/her subodinates and holds them responsible for the task to get completed.

Group Discussion : A group discussion is a group of employees of a work unit who meet frequently with their superior to identify and solve work-related problems of their unit.

Love or Belonging Needs: These needs relate to the desire to have social interection, friendship, application, acceptance, belongingness with groups, affection, support from others and so on.

Esteem needs : These needs arise when physiological, safety and social needs have been satisfied. It relates to the ego and esteem of the person.

Self-Actualisation Needs: Needs and aspirations for growth. Such needs motivate people by their presence. They are concerned with the needs for maximising the use of one’s skills, abilities, potential to become what one is capable of.

Motivating Factors: Adequacy of motivating factors makes employees sat isfied with
their job and consequently motivates them.

X Theory: Theory ‘X’ presents a pessimistic or negative view of human nature. It is a traditional approach and it lays emphasis on controlling the man.

‘Y’ Theory : Theory V’ views human behaviour in optimistic or positive terms. It assumes the responsibility and positive role of employee in working environment as its base.

RBSE Class 12 Business Studies Notes Chapter 4 Motivation: Meaning, Definition, Needs and Importance, Techniques and Theories

Important Definitions of Motivation :

  1. According to Stanley Vance: “Any need or desire that makes people to do some work.”
  2. According to Dale S. Berch, “Motivation can be defined as willingness to spend energy to achieve a goal or a reward.”
  3. According to William G. Scott, “Motivation means a process of stimulating people tp act to accomplish desired goals.”
  4. According to McFarland, “Motivation refers to the way in which urges, drives, desires, aspirations, strivings, need control or explain the behaviour of human beings.”
  5. According to Kneitner, “The term motivation refers to the psychological process that gives behaviour, purpose and direction.”

RBSE Class 12 Business Studies Notes