1. MOTIVATION
Essay
Chaitanya Jeendgar
Chaitanya.jeendgar@yahoo.com
Abstract
How motivation is created in a business? This essay will clear the concepts of motivation as
well as the different theories of motivation.

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Contents
Motivation......................................................2
Introduction....................................................2
Importance of Motivation .............................2
Characteristics and Nature of Motivation.....3
Motivational Theories....................................3
Techniques of Motivation..............................6
Essentials of a sound motivation system ......6
Conclusion ......................................................7

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Motivation
Introduction
“Motivation is the need or reason that makes people to work or to take action. It
includes the processes and forces in an individual that influence or encourage him
to act or not to act in particular ways. It arouses or energises the willingness to
put in effort in a particular direction”. We have also noticed that in every business
motivation is required for the employees. Motivation does not only mean that to
increase the salary or wages of the person, it is beyond that. Motivation can be
both financial as well as non-financial. It also increases the willingness of doing
a particular work or task that has been asked from the employee or worker. It is
also dependent on the person’s behaviour too. Motivation also helps the person
to do that particular task which can be interesting for him or in which he or she
sees in growing. Motivation plays a crucial role in every business because as it
means “to empower the employees or workers”. The empowerment to the
employee will create motivation in performing their particular task. As a leader,
the main objective is to inspire and motivate the workforce to complete the tasks
that are set by the organization.
Importance of Motivation
The importance of motivation is required in every business or the organizations.
There can be many importance of motivation which are as follows:
1. Inspires employees to work- The employees of the organization will be
inspired to do the tasks in the organization and will perform much better
than usual.
2. High morale and job satisfaction- The person or employee which is
working in the organization should be fully satisfied. Employee should be
confident towards its job (high morale).
3. Improves corporate image- It also improves the corporate image by
assigning the duties to the employees or workers which will help them to
get the tasks which has to be completed.
4. Lowers conflict in the workplace- There will be lower conflicts in the
workplace if the staff members are fully motivated and satisfied.
5. Lower staff turnover- The employees or the workers will not leave the job
and will stay in the organization if they are motivated. There will be a
higher number of staff members.
6. Lower absenteeism- The employees will be regular at their work as
they will start getting interest in that particular job which has been assigned
by the owner or the manager of the organization.

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7. Higher profits- If the employees are working and increasing the
working efficiency then the organization or the company will earn more
or higher profits which they were earning before.
8. Higher performance- Highly motivated employees perform better and
higher as compared to the employees with low level of motivation.
9. Sense of belongingness- Employees starts to feel that enterprise belongs
to them and therefore they will be more concerned about the wellbeing
of the enterprise.
10.Facilitates change- The properly motivated employees are more
receptive to new things and ready to accept the new changes.
Characteristics and Nature of Motivation
The characteristics and the nature of motivation are as follows:
1. Motivation is internal feeling
2. Continuous process
3. Dynamic process
4. A psychological concept
5. A way to direct and explain behaviour
6. It is the willingness to exert effort
7. System-oriented
8. Need-satisfying process
9. Energising force
10.Positive or negative
11.Whole individual is motivated
12.Frustrated individual cannot be motivated
13.Motivation is different from morale
14. Motivation and job satisfaction are not synonymous
Motivational Theories
There are many theories of motivation which helps the organization to run well
in the future and also helps the workers as well as the employees to work more
efficiently in the organization. The theories can be different from each other as
all theories have different perspective. These theories will require knowledge and
understanding of how the employees or staff thinks and of course what motivates
them. There are many motivational theories which takes place in the businesses
and organizations which are:
1. Maslow’s need hierarchy theory

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In Maslow’s Theory there are hierarchy of needs which is basically for the
human motivation. According to Maslow, within every person there is a
hierarchy of five needs which are as follows:
i. Physiological Needs: These are the basic needs of a human being or
the essentials for the survival. These includes food, water, shelter,
clothing, recreation etc.
ii. Safety Needs: These needs are concerned with protecting the person
from physical and psychological harm as well as the assurance that
physiological needs will continue to be met. For example- pension,
insurance etc.
iii. Social Needs: These needs relate to the desire to have social
interaction, friendship, affiliation belongingness with groups,
acceptance, affection and so on.
iv. Self-esteem Needs: These needs constitute the fourth level in the
hierarchy of needs. This includes the needs of prestige, recognition,
acceptance, attention status, reputation and appreciation from
others.
v. Self-actualisation Needs: These needs are concerned with the needs
for maximising the use one’s skills, abilities, potential to become
everything that one is capable of becoming.
2. McGregor’s theory X and theory Y
Theory X presents a pessimistic or negative view of human nature whereas
Theory Y reflects an optimistic or positive view of human behaviour. Both
the theories are described below in the points-
Self
Actualization
Needs
Esteem Needs
Social Needs
Safety Needs
Physiological Needs

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Theory X
i. Dislike work and will avoid work
ii. Coerced, controlled or threatened with punishment
iii. Prefers to be directed
iv. Wishes to avoid responsibility
v. Relatively little ambition
vi. Wants security above all other factors
vii. Self-centred and indifferent
viii. Resist change
Theory Y
i. Does not inherently dislike, work is as natural as play or rest
ii. Self-direction and self-control
iii. Objectives is a function of the rewards
iv. Motivated by higher-level needs
v. Learns not only to accept but to seek responsibility
vi. Seeks responsibility
vii. Imagination and creativity in the solution of problems is widely
range.
viii. Potentialities of the average human being are only partially utilised.
3. Herzberg’s motivation hygiene theory
Hygiene Factors Motivators
 Company’s policy and
administration.
 Achievements
 Working conditions  Recognition
 Job security  Advancement
 Salary  Responsibility
 Quality of supervision  Personal growth
 Interpersonal relations with
superiors, co-workers and
subordinates.
 Opportunities
 Work itself
 Hygiene factors: These are related to the job environment. The presence of
these factors is necessary to avoid dissatisfaction and pain in the work
environment. These factors also influence the level of job dissatisfaction.
 Motivators motivates employees: These factors make employees satisfied
with their job and consequently motivate them. These factors also
influence the level of job satisfaction.

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Techniques of Motivation
I. Financial Techniques
These techniques of motivation are those which involve financial
expenditure for an organization and increase money income of its
employees. This includes:
a) Pay
b) Dearness and other allowances
c) Bonus
d) Profit-sharing
e) Fringe benefits
II. Non-financial Techniques
These techniques of motivation are those which are not associated with
financial rewards. Such techniques contribute to satisfaction of higher-
level needs such as social, esteem and self-actualization needs are as
follows:
a) Job enlargement (adding more duties)
b) Job enrichment (greater challenges)
c) Job rotation (different jobs)
d) Praise and recognition (appreciation)
e) Participation (involvement)
f) Competition (contests)
g) Promotion or status (higher post)
h) Delegation of authority (execution of given task)
i) Security of job (pension)
j) Feeling of accomplishment (better career planning)
k) Congenial social environment (satisfying social and ego needs of
employees)
l) Opportunity for advancements (social and self-actualization)
m) Quality circles (working in a group)
n) Sound work climate (facilities such as rest-rooms, canteen etc)
Essentials of a sound motivation system
The following are the essentials of a sound motivation system which helps the
organization-
1. Purposive
2. Productive
3. Positive
4. Simple
5. Challenging

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6. Competitive
7. Comprehensive
8. Flexible and dynamic
9. Stable and permanent
10.Equitable
11.Linkages between performance and reward
12.Integration of organizational individual goals
13.Blending financial and non-financial incentives
14.Provision for punishment
15.Feedback
Conclusion
It is proved that motivation is very important for business and organizations. The
motivation plays a vital role which is mentioned in this essay. The main purpose
of writing this essay is to clear the concept of motivation. If every organization
uses a correct technique of motivation whether it is Maslow’s need hierarchy
theory, McGregor’s theory X and theory Y, Herzberg’s two factor theory.
Motivation also helps in encouraging the workers and employees in performing
a particular task which has been assigned to him/her. Motivation is both financial
and non-financial. Increasing the salary of workers does not mean that the
workers are motivated, there should be a balance of both financial and non-
financial techniques. It should empower the workers or the employees which are
working in an organization or any other random business. Motivation is important
for both employees as well as the organization because it helps to grow in the
future of the company.
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