Up to this point, we have seen how people were motivated by various forms of fear, and they acted in ways indicated because they felt that any other course of action is detrimental to them. There have also been positive motivation techniques practiced historically using incentives in cash or kind. Money had always been regarded as a prime motivator and other techniques like more power, better position, better job location etc.

have been used throughout history.The naive interpretation that people can be only motivated by money kept disappearing throughout time and finally motivation became a subject area of study. Modern motivation techniques We can now look at more positive motivation techniques where, by their correct application, people will act in the way we want them to because they believe it actually achieves goals of their own! Though it is true that if a person is not paid what they perceive themselves to be worth, then they will not feel motivated, money is not a motivator by itself, but its absence is a de-motivator.Rewards as a motivator Sometimes even rewards that seem to be a great idea can be counter-productive. ESOPs or Employee Share Option Plans is a modern reward given by some companies, but it can be de-motivating if the share prices fall, and we have all seen how volatile the shares market can be. In effect, employees then discover they are not only sharing the profits or the growth of the company, but also in its losses during recessions.

Even ’employee-of the month/year’ rewards can lead to de-motivation among other employees who feel they should have got the reward.It is the same case with the “employee-of the month/year awards” as it can seriously de-motivate all the other employees who think they should have got the awards. Theories on Motivation There are several theories on motivation, which can be divided into four categories. Need Based Theories The most widely known theories of motivation are the hierarchy of needs theory, developed by psychologist Abraham Maslow. This divides our needs into five levels starting with physiological needs, such as food, water, and shelter.Then come the safety needs, belongingness needs, esteem needs and finally our Self-actualization needs.

(Bartol and Martin, 1984) The ERG theory by Clayton Alderfer divides our deeds into Existence Needs, Relatedness Needs and Growth Needs (Bartol and Martin, 1984) David C. McClelland offered a different perspective with his acquired-needs theory, which argues that our needs are acquired or learned based on our life experiences. It talks of Need for Achievement (nAch), Need for Affiliation (nAff), and the Need for Power (nPow) personal power and institutional power.(Cartwright R, 1998) Cognitive Theories Cognitive Theories: – Expectancy Theory/ Equity Theory/ Goal-setting Theory/ Assessing Cognitive Theories/ Theory X, Y and Z/ Hygiene Factors These theories attempt to isolate the thinking patterns that we use in deciding whether or not to behave in a certain way. (Cartwright R, 1998) A 1981 study by Pascale and Athos that compared major US and Japanese organizations, came out in the same year that W. Ouchi produced his Theory Z concept.

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(Cartwright R, 1998) Theory Z was based on the employment conditions in many Japanese organizations at the time. Theory Z unlike McGregor’s ideas was based on the organization and not people. Theory Z organizations were characterized by offering life time employment (thus ensuring a considerable degree of financial security), providing social activities for employees (including shops, schools and medical care), involving permanent staff in shared decision-making and had subordinate-manager relationships based on mutual respect. The motivational calculusHandy talked about a motivational calculus that allows us to decide how much effort to put n to a task based on needs and rewards (McClelland, 1985). Each need has strength and each reward can be quantified in how instrumental it is in reducing that need.

The effort required will depend on both these factors. This explains, in theoretical terms, why persistent failure produces a lowering of goals. Psychological contracts: Handy divided psychological contracts into three types: – Coercive, calculative and co-operative (McClelland, 1985)