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MINISTRY OF EDUCATION AND SCIENCE OF UKRAINE KHARKIV NATIONAL UNIVERSITY OF ECONOMICS

Management and Business department

THE MOTIVATION OF EMPLOYEES LABOR

Student: Management and Marketing faculty Group 013 A

Ovsiy A.V.

Supervisor:

Naipak D.V.

Kharkiv 2013

CONTENTS Introduction ........................................................................................................................ 3 1. Theoretical aspects of motivation .................................................................................. 5 1.1 Definition and kinds of motivation ........................................................................... 5 1.2 Theories of motivation ............................................................................................ 11 2. Analysis of motivation ................................................................................................. 22 2.1 Motivation and frustration....................................................................................... 22 2.2 Employee motivation and organizational effectiveness ......................................... 27 3. Improving employee motivation .................................................................................. 33 Conclusions ...................................................................................................................... 37 References ........................................................................................................................ 38

INTRODUCTION The job of a manager in the workplace is to get things done through employees. To do this the manager should be able to motivate employees. Motivated employees are needed in our rapidly changing workplaces. Motivated employees help organizations to survive. Motivated employees are more productive. To be effective, managers need to understand what motivates employees within the context of the roles they perform. Nowadays managers ignore the problem of emloyees motivation. These problems arise because they pay major part of their attention to the results and not to the process and methods of workers motivation. Employee motivation has always been a central problem for leaders and managers. Unmotivated employees are likely to spend little or no effort in their jobs, avoid the workplace as much as possible, exit the organization if given the opportunity and produce low quality work. On the other hand, employees who feel motivated to work are likely to be persistent, creative and productive, turning out high quality work that they willingly undertake. There has been a lot of research done on motivation by many scholars, but the behavior of groups of people to try to find out why it is that every employee of a company does not perform at their best has been comparatively unresearched. Many things can be said to answer this question; the reality is that every employee has different ways to become motivated. Employers need to get to know their employees very well and use different tactics to motivate each of them based on their personal wants and needs. There are some different methods of employees motivation which already exist and were descripted in different scientific researches by Gerchikov V., but they are morally out-of-date and arent effective in nowadays environment. The objectives of this paper are: 1. To develop the peculiarities of the motivation process. 2. To improve possible ways of motivation of workers.

The task of this research is proving of oudating of some methods of workers motivation and developing and installing new ones which are more appropriate to nowadays environment. The object of this scientific research is relationships between managers and their employees. And subject is methods of motivation the companys employees. No matter the size of your company, having a team of motivated, hard-working employees is crucial to your business success. When people lose their motivation, however, their job performance suffers -- they become less productive, less creative, less of an asset to the company. The bottom line: You pay a heavy price when employees have motivation issues. The practical value of this paper is to approve the results of the research on practice. The methods presented in this research paper should improve ways employees motivation and thereby improve the efficiency of their work. This proposed research is needed to improve employees' performance at the workplace, to retain employees and to help companies establish a good image. If a company's employees do not acquire this motivation then the company could lose large amounts of money, customers or even go out of business. On the other hand if that company's employees are well trained and motivated by their employers it could have great income potential, keep loyal customers and gain a lot of market share. This research would help many managers and leaders in our society to identify the things that they need to do in order to successfully motivate their employees to perform at their best. As a manager this knowledge will therefore help me to understand what new strategies I could implement in order to motivate employees to achieve optimal business results. It is evident that there is a need for this study because of the many companies that are constantly spending money on various ways to increase employee motivation.

1. THEORETICAL ASPECTS OF MOTIVATION 1.1. Definition and kinds of motivation Motivation is a phrase that describes a process which controls, elicits and sustains specific behaviors. Motivation is actually a group of phenomena that affect the nature of the individuals behavior, the power of the behavior, as well as the persistence from the behavior. In other words, motivation is a word used to refer to the reason or reasons for engaging in a particular behavior especially human behavior. These reasons may include a drive, a need, a desire to achieve a goal, a state of being, or an ideal. In human beings, motivation involves both conscious and subconscious drives. The definition of motivation is always to give reason, enthusiasm, interest or incentive which causes a certain behavior or specific action. Motivation exists in every life perform. Simple acts for example; eating are motivated through hunger. Education will be motivated by desire regarding knowledge. Motivators could be anything through reward for coercion. There are three major components to motivation: activation, persistence and intensity. Activation involves the decision to initiate a behavior, such as enrolling in a psychology class. Persistence is the continued effort toward a goal even though obstacles may exist, such as taking more psychology courses in order to earn a degree although it requires a significant investment of time, energy and resources. Finally, intensity can be seen in the concentration and vigor that goes into pursuing a goal. For example, one student might coast by without much effort, while another student will study regularly, participate in discussions and take advantage of research opportunities outside of class. In economics, the term motivation has become widely applicable nowadays. The concept of motivation can be defined in a number of ways, therefore today there are dozens of different definitions of this term which are shown in Table 1.1.

Table 1.1 Definitions of motivation


Definition Key word Motivation The psychological feature that arouses an organism to action toward a desired goal Psychological and elicits, controls, and sustains certain feature goal directed behaviors. Motivation A reason or reasons for acting or behaving Reason in a particular way. An internal and external factors that stimulate desire and energy in people to Factors be continually interested and committed to a job, role or subject, or to make an effort to attain a goal. Motivation Literally the desire to do things. Desire Motivation A process that initiates, guides and Process maintains goal-oriented behaviors. Motivation A process governing choices made by person among alternative forms of voluntary activity. Motivation The result of process, internal or external to the individual that arouse enthusiasm and persistence to pursue a certain course of action. Process Concept Source (wikipedia.org)

(oxforddictionaries.com)

(businessdictionary.com)

(psychologytoday.com) (psychology.about.com)

(investorwords.com)

Process

(biztaxlaw.about.com)

Motivation

A process that starts with a physiological or psychological deficiency or need that activates behavior or a drive that aimed at a goal or an incentive Motivation How behavior gets started is energized, is sustained, is directed, is stopped, and what kind of subjective reaction is present in the organism while all this is going on.

Process

(businessdictionary.com)

Reaction

(duhaime.org)

To define motivation requires a look at the types, theories, and techniques of motivation. Motivation is a fascinating, necessary, and complex function of being human. Different types of motivation are frequently described as being either extrinsic or intrinsic [1].

Intrinsic motivation refers to motivation that is driven by an interest or enjoyment in the task itself, and exists within the individual rather than relying on external pressures or a desire for reward. Intrinsic motivation has been studied since the early 1970s. Students who are intrinsically motivated are more likely to engage in the task willingly as well as work to improve their skills, which will increase their capabilities. Students are likely to be intrinsically motivated if they: attribute their educational results to factors under their own control, also known as autonomy, believe they have the skills to be effective agents in reaching their desired goals, also known as self-efficacy beliefs are interested in mastering a topic, not just in achieving good grades. Extrinsic motivation refers to the performance of an activity in order to attain an outcome. Extrinsic motivation comes from outside of the individual. Common extrinsic motivations are rewards (for example money or grades) for showing the desired behavior, and the threat of punishment following 7 is behavior. Competition is in an extrinsic motivator because it encourages the performer to win and to beat others.
REGULATORY STYLES

A motivation

Extrinistic motivation

Intristic motivation

External regulation

Integration Introjection Identification

ASSOCIATED PROCESSES

Percieved noncontigency Low perceived competence Nonrelevance Nonintentionality

Saliance of extrinsic rewards or publishments Compliance/ Reactuance

Ego involvemen t Focus on approval from self of others

Conscious valuing of activity Selfendorseme nt of goals

Hierarchical synthesis of goals Congruence

Interest/ Enjoyment Inherent satisfaction

PERCEIVED LOCUS OF CASUALITY

Impersonal

External

Somewhat External

Somewhat Internal

Internal

Internal

Fig. 1.1. Intrinsic and extrinsic motivations

Social psychological research has indicated that extrinsic rewards can lead to overjustification and a subsequent reduction in intrinsic motivation. In one study demonstrating this effect, children who expected to be (and were) rewarded with a ribbon and a gold star for drawing pictures spent less time playing with the drawing materials in subsequent observations than children who were assigned to an unexpected reward condition. While the provision of extrinsic rewards might reduce the desirability of an activity, the use of extrinsic constraints, such as the threat of punishment, against performing an activity has actually been found to increase ones intrinsic interest in that activity. In one study, when children were given mild threats against playing with an attractive toy, it was found that the threat actually served to increase the child s interest in the toy, which was previously undesirable to the child in the absence of threat [1]. For those employees who received no extrinsic reward, self-determination theory proposes that extrinsic motivation can be internalized by the individual if the task fits with their values and beliefs and therefore helps to fulfill their basic psychological needs. There are many different forms of motivation. Each one influences behavior in its own unique way. No single type of motivation works for everyone. Peoples personalities vary and so accordingly does the type of motivation, that is most effective at inspiring their conduct: 1. Incentive is a form of motivation that involves rewards, both monetary and

nonmonetary is often called incentive motivation. Many people are driven by the knowledge that they will be rewarded in some manner for achieving a certain target or goal. Bonuses and promotions are good examples of the type of incentives that are used for motivation. This motivation involves rewards. People who believe that they will receive rewards for doing something are motivated to do everything they can to reach a certain goal. While achievement motivation is focused on the goal itself, incentive motivation is

driven by the fact that the goal will give people benefits. By offering incentives, companies hope to raise productivity and motivate their employees to work harder. 2. Nurturance motivation is manifest by a mothering nature. The need to

nurture motivates us to give support, help, service and gifts to others, no strings attached. An important factor in this motivational type is knowing you are lending comfort or a listening ear. The nurturance need is associated with the ability to empathize and respond to the needs of others. The need to display nurturing or mothering tendencies often finds an outlet in service professions. Great teachers, counselors and mothers typically manifest nurturance motivation. 3. Fear. This is often a motivation imposed on a person from an external

source, such as an employer. It is the opposite of incentive motivation where rewards are forthcoming for meeting specific objectives. Many employers consider the worry of being penalized for not doing something correctly an efficient way to keep employees focused and on their toes. Internally, the feeling of need for change, due to the pain and fear of remaining in a situation, often is a catalyst for this motivation type. Fear motivation involves consequences. This type of motivation is often one that is utilized when incentive motivation fails. In a business style of motivation often referred to as the, carrot and stick, incentive is the carrot and fear is the stick. Punishment or negative consequences are a form of fear motivation. This type of motivation is commonly used to motivate students in the education system and also frequently in a professional setting to motivate employees. 4. Achievement motivation is also commonly referred to as the drive for

competency. This kind of motivation refers to defining, pursuing and attaining goals. It can be combined with the drive to be good at something. Achievement-motivated people like work, responsibility and take pride in solving problems. Accomplishment is vital for its own sake. Rewards are not the motivating factor. When the goal has been achieved, these people move right on to the next goal without wasting any time. High levels of dedication, persistence and energy are characteristics of this motivation type.

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However, in certain circumstances be motivation for achievement may involve external recognition. It is necessary to have a desire or need to receive positive feedback from both peers and superiors. This may include anything from an award to a simple pat on the back for a job well done. 5. Growth is the need for self-improvement is truly an internal motivation. A

burning desire to increase knowledge of the outside world can be a very strong form of motivation. People seek to learn and grow as individuals. Motivation for growth can also be seen in yearning for change. Many people are wired by personality or upbringing to constantly seek a change in either external or internal environment or knowledge. 6. Security. A deep concern for the future is the basis of security motivation.

This motivation often appears early in life, often in the late teens and early 20s. The feeling that accumulating money and material possessions eases and shelters the pathway to the future is often the driving force behind this motivation. Change and risktaking are typically stressful. Having steady work and dependable income rate high on their comfort level. 7. Power and Influence. The promise of power and prestige is an intense

motivational trigger for some people. It drives them to put in long hours and extra effort to accomplish their goals. Competition with others is evidenced in this motivational type. Influence, leadership, desire to control and responsibility for others are by-products of a power position that tend to enhance its strength as motivating factor. Positive aspects of this motivation are concerned with achieving results through the efforts of others. Negative manifestation is characterized by using power for personal aggrandizement. [2] People want to have choices and control over lives and strive for the ability to direct the manner in which the way their lives will unfold in the future. The desire for control is stronger in some people than others. In some cases, the craving for power

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induces people to harmful, immoral, or illegal behavior. In other situations, the longing for power is merely a desire to affect the behavior of others. 8. Affiliation. Having a career or achieving specific goals is not as important

as being affiliated with a certain person or group. A strong desire for love and acceptance is part of this motivation type. There is a drive to relate to people on a social basis. Having a support system is crucial. Often this type of motivation is recognized when a person bypasses personal goals to dedicate his life to another person or group. Compliments, good attitude and cooperation are valued by this motivational type. A genuine and passionate desire to contribute and to make a difference in the lives of others can be another form of social motivation. The real importance of understanding the different types of motivation is in our ability to determine which form of motivation is the most effective for inspiring the desired behavior in either others or ourselves. None of these styles of motivation is inherently good or bad, the positive or negative outcome is truly determined by the way they are used.

1.2. Theories of motivation Understanding what motivated employees and how they were motivated was the focus of many researchers following the publication. Five major approaches that have led to our understanding of motivation are Maslow's need-hierarchy theory, Herzberg's two-factor theory, Vroom's expectancy theory, David c McClelland's motivational needs theory, and Skinner's reinforcement theory: 1. In 1943 a psychologist Mr. Abraham Harold Maslow suggested his Theory of Human Motivation. His theory is one popular and extensively cited theory of motivation. Maslow's theory is based on the Hierarchy of Human Needs. According to Maslow, human behavior is related to his needs. It is adjusted as per the nature of needs to be satisfied. In hierarchy of needs theory, Maslow identified five types / sets of human need arranged in a hierarchy of their importance and priority. He concluded that when one set of needs is satisfied, it ceases to be a motivating factor. Thereafter, the next set of

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needs in the hierarchy order takes its place. These needs in hierarchy can be compared to a pyramid (fig. 1.2). At the lowest level, there will be first set of needs which can be described as basic needs and are universal in character. This will be followed by other sets of needs. [3]

Self-actualization Esteem
Love/ belonging

morality, creativity, spontaneity, problem solving, lack of prejudice, acceptance of facts

Self-esteem, confidence, achievement, respects of others, respect by others

Friendship, family, sexual intimacy

Safety Physiological

Security of: body, employment, resources, morality, the family, health, property

Breathing, food, water, sex, sleep, homeostasis, excretion

Fig. 1.2. Pyramid of Maslow

Maslow's Assumptions in Hierarchy of Needs Theory are : man is a wanting being, i.e. his wants are growing continuously even when some wants are satisfied. Human needs are of varied and diversified nature. They can be arranged in a hierarchy of importance progressing from a lower to a higher order of needs;

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needs have a definite hierarchy of importance. As soon as needs on a lower level are fulfilled, those on the next level will emerge and demand satisfaction. This suggests that bread (food) is essential and is a primary need of every individual. According to Maslow, "Man lives by bread alone when there is no bread." However, he feels the other needs when his physiological needs are fulfilled. In brief, bread is important but man does not live by bread alone. There are other needs (security / safety, social, esteem and self actualisation which influence behavior of people (employees) to work. This is the basic feature of Maslow's need hierarchy. Attention to all human needs is essential for motivation of employees. Attention to the provision of bread alone is not adequate for motivating employees. Bread can act as motivating factor when there is no bread but when it is available, its use as motivator comes to an end. Here, other motivators (e.g. security of job, social status, etc.) will have to be introduced for motivating employees. Attention to other needs such as security needs, social needs, esteem needs and self actualisation needs is equally important and essential for the motivation of different categories of employees. Maslow, in his theory, has referred to different needs and suggested that attention needs to be given to all such needs as attention to physiological needs alone is not adequate for motivating employees. According to Maslow, "Man does not live by bread alone". This conclusion of Maslow is a practical reality and needs to be given adequate attention while motivating employees; a satisfied need does not act as a motivator; as one need is satisfied, another replaces it. conscious level and thus they not much affected by social or cultural circumstances. 2. Frederick Herzberg's motivational theory. Frederick Herzberg was a well respected American who has contributed greatly to the way in which managers think about motivation at work. He first published his theory in 1959 in a book entitled The Motivation to Work and put forward a two factor content theory which is often referred to as a two need system. It is a content theory which explains the factors of an

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individuals motivation by identifying their needs and desires, what satisfies their needs and desires and by establishing the aims that they pursue to satisfy these desires. Herzbergs original research was undertaken in the offices of engineers and accountants rather than on the factory floor and involved interviewing over two hundred employees. His aim was to determine work situations where the subjects were highly motivated and satisfied rather than where the opposite was true and his research was later paired with many studies involving a broader sampling of professional people [4]. In his findings Herzberg split his factors of motivation into two categories called hygiene factors and motivation factors. The Hygiene factors can de-motivate or cause dissatisfaction if they are not present, but do not very often create satisfaction when they are present; however, Motivation factors do motivate or create satisfaction and are rarely the cause of dissatisfaction. The two types of factors may be listed as follows in order of importance (fig. 1.2): Hygiene Factors (leading to dissatisfaction): company policy; supervision; relationship with boss; work conditions; salary; relationship with peers. Motivators (leading to satisfaction): achievement; recognition; the work itself; responsibility; advancement; growth.

15 Low High

Hygiene factors - Quality of supervision - Pay - Company policies - Physical working condition - Relations with others - Job security

Job satisfaction Motivation factors - Promotion opportunities - Opportunities for personal growth - Recognition -Responsibilty - Achievement

Job satisfaction
High Low

Fig. 1.3 Job satisfaction The dissatisfiers are hygiene factors in the sense that they are maintenance factors required to avoid dissatisfaction and stop workers from being unhappy, but do not create satisfaction in themselves. They can be avoided by using hygienic methods to prevent them. It is clear from the lists that the factors in each are not actually opposing i.e. the satisfiers are not the opposite of the dissatisfiers. The opposite of sati sfaction isnt dissatisfaction but is no satisfaction. Both lists contain factors that lead to motivation, but to a differing extent because they fulfil different needs. The Hygiene factors have an end which once fulfilled then cease to be motivating factors while the Motivation factors are much more open-ended and this is why they continue to motivate. Herzberg also developed the concept that there are two distinct human needs [5]: physiological needs: avoiding unpleasantness or discomfort and may be fulfilled via money to buy food and shelter etc.; psychological needs: the need for personal development fulfilled by activities which cause one to grow.

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He identified this as the Adam and Abraham Concept where Adam is animal and wants to avoid pain or discomfort, but Abraham is human and needs to go beyond the physical requirements and expand psychologically too. Herzberg believed that the Hygiene factors causing no satisfaction are not applicable to the task an employee undertakes but are external to that task. They are the Adam part of the concept where an incentive may be attributed to a fear of punishment or increase in discomfort or as he phrased it A Kick up the Ass (KITA). He thought that these did work but only as short term motivators e.g. constantly increasing someones salary to motivate them will merely encourage them to look for the next wage rise and nothing else; however, salary may also be a de-motivator where the employee perceives it to be too low or low compared to that of their peers. The long term motivators are the Abraham part of the concept that lead to satisfaction and are intrinsic to the job itself and the job design. Consider the chambermaid who prefers to receive a note of appreciation for her high standards from a guest than a carelessly delivered gratuity. It is important to understand that the two types of factors are not mutually exclusive and that management must try to fulfil both types of need for an employee to be truly satisfied with their job. Once the Hygiene factors have been satisfied providing more of them will not create further motivation but not satisfying them may cause demotivation; unlike the Motivation factors where management may not fulfil all of them but the workers may still feel motivated. Major companies have recognised this

situation when designing their methods of reward and recognition. [6] 3. Victor Vrooms expectancy theory (fig. 1.4). The expectancy theory was proposed by Victor Vroom of Yale School of Management in 1964. Vroom stresses and focuses on outcomes, and not on needs unlike Maslow and Herzberg. The theory states that the intensity of a tendency to perform in a particular manner is dependent on the intensity of an expectation that the performance will be followed by a definite outcome and on the appeal of the outcome to the individual.

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Expectancy

Instrumentality

Valence

Effort
1) Will my effort lead to high performance?

Performance
2) Will performance lead to outcomes?

Rewards
3) Do I find the outcomes desirable?

Fig. 1.4 Vrooms expectancy theory The Expectancy theory states that employees motivation is an outcome of how much an individual wants a reward (Valence), the assessment that the likelihood that the effort will lead to expected performance (Expectancy) and the belief that the performance will lead to reward (Instrumentality). In short, Valence is the significance associated by an individual about the expected outcome. It is an expected and not the actual satisfaction that an employee expects to receive after achieving the goals. Expectancy is the faith that better efforts will result in better performance. Expectancy is influenced by factors such as possession of appropriate skills for performing the job, availability of right resources, availability of crucial information and getting the required support for completing the job. [7] Instrumentality is the faith that if you perform well, then a valid outcome will be there. Instrumentality is affected by factors such as believe in the people who decide who receives what outcome, the simplicity of the process deciding who gets what outcome, and clarity of relationship between performance and outcomes. Thus, the expectancy theory concentrates on the following three relationships: effort-performance relationship: What is the likelihood that the individuals effort be recognized in his performance appraisal?; performance-reward relationship: It talks about the extent to which the employee believes that getting a good performance appraisal leads to organizational rewards; rewards-personal goals relationship: It is all about the attractiveness or appeal of the potential reward to the individual.

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Vroom was of view that employees consciously decide whether to perform or not at the job. This decision solely depended on the employees motivation level which in turn depends on three factors of expectancy, valence and instrumentality. 4. David c McClelland's motivational needs theory (fig. 1.5). In his acquiredneeds theory, David McClelland proposed that an individual's specific needs are acquired over time and are shaped by one's life experiences. Most of these needs can be classed as either achievement, affiliation, or power. A person's motivation and effectiveness in certain job functions are influenced by these three needs. McClelland's theory sometimes is referred to as the three need theory or as the learned needs theory [8]: achievement. 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 nAch individuals prefer work that has a moderate probability of success, ideally a 50% chance. Achievers need regular feedback in order to monitor the progress of their acheivements. They prefer either to work alone or with other high achievers; affiliation. Those with a high need for affiliation (nAff) need harmonious relationships with other people and need to feel accepted by other people. They tend to conform to the norms of their work group. High nAff individuals prefer work that provides significant personal interaction. They perform well in customer service and client interaction situations; power. 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. 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.

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Motivation Need theories


McClellands acquired needs theory:
Whch needs make the best manager?

Need for achievement

Personal power Need for power


Need for affiliation

Institutional power

Fig. 1.5 McClellands acquires needs theory 5. Reinforcement theory is the process of shaping behavior by controlling the consequences of the behavior. In reinforcement theory a combination of rewards and/or punishments is used to reinforce desired behavior or extinguish unwanted behavior. Any behavior that elicits a consequence is called operant behavior, because the individual operates on his or her environment. Reinforcement theory concentrates on the relationship between the operant behavior and the associated consequences, and is sometimes referred to as operant conditioning. [9] Behavioral theories of learning and motivation focus on the effect that the consequences of past behavior have on future behavior (fig. 1.6). This is in contrast to classical conditioning, which focuses on responses that are triggered by stimuli in an almost automatic fashion. Reinforcement theory suggests that individuals can choose from several responses to a given stimulus, and that individuals will generally select the response that has been associated with positive outcomes in the past. E.L. Thorndike articulated this idea in 1911, in what has come to be known as the law of effect. The law of effect basically states that, all other things being equal, responses to stimuli that are

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followed by satisfaction will be strengthened, but responses that are followed by discomfort will be weakened. B.F. Skinner was a key contributor to the development of modern ideas about reinforcement theory. Skinner argued that the internal needs and drives of individuals can be ignored because people learn to exhibit certain behaviors based on what happens to them as a result of their behavior. This school of thought has been termed the behaviorist, or radical behaviorist, school. [10] The most important principle of reinforcement theory is, of course, reinforcement. Generally speaking, there are two types of reinforcement: positive and negative. Positive reinforcement results when the occurrence of a valued behavioral consequence has the effect of strengthening the probability of the behavior being repeated. The specific behavioral consequence is called a reinforcer. An example of positive reinforcement might be a salesperson that exerts extra effort to meet a sales quota (behavior) and is then rewarded with a bonus (positive reinforcer). The administration of the positive reinforcer should make it more likely that the salesperson will continue to exert the necessary effort in the future. [11] Negative reinforcement results when an undesirable behavioral consequence is withheld, with the effect of strengthening the probability of the behavior being repeated. Negative reinforcement is often confused with punishment, but they are not the same. Punishment attempts to decrease the probability of specific behaviors; negative reinforcement attempts to increase desired behavior. Thus, both positive and negative reinforcement have the effect of increasing the probability that a particular behavior will be learned and repeated. An example of negative reinforcement might be a salesperson that exerts effort to increase sales in his or her sales territory (behavior), which is followed by a decision not to reassign the salesperson to an undesirable sales route (negative reinforcer). The administration of the negative reinforcer should make it more likely that the salesperson will continue to exert the necessary effort in the future.

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As mentioned above, punishment attempts to decrease the probability of specific behaviors being exhibited. Punishment is the administration of an undesirable behavioral consequence in order to reduce the occurrence of the unwanted behavior. Punishment is one of the more commonly used reinforcement-theory strategies, but many learning experts suggest that it should be used only if positive and negative reinforcement cannot be used or have previously failed, because of the potentially negative side effects of punishment. An example of punishment might be demoting an employee who does not meet performance goals or suspending an employee without pay for violating work rules. [12] Extinction is similar to punishment in that its purpose is to reduce unwanted behavior. The process of extinction begins when a valued behavioral consequence is withheld in order to decrease the probability that a learned behavior will continue. Over time, this is likely to result in the ceasing of that behavior. Extinction may alternately serve to reduce a wanted behavior, such as when a positive reinforcer is no longer offered when a desirable behavior occurs. For example, if an employee is continually praised for the promptness in which he completes his work for several months, but receives no praise in subsequent months for such behavior, his desirable behaviors may diminish. Thus, to avoid unwanted extinction, managers may have to continue to offer positive behavioral consequences.
Positive Reinforcement
Positive behavior followed by positive consequences (Manager praises the employee)

Negative Reinforcement
Positive behavior followed by removal of negative consequences (Manager stops nagging the employee)

Punishment
Negative behavior followed by negative conquences (Manager demotes the employee)

Extinction
Negative behavior followed by removal of positive consequences (Manager ignores the behavior)

Fig. 1.6 Behavioral theories

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2. ANALYSIS OF INFORMATION 2.1. Motivation and frustration The framework of motivation indicates that motivation is a simple process. But in reality, the task is more daunting. One reason why motivation is a difficult task is that the workforce is changing. Employees join organizations with different needs and expectations. Their values, beliefs, background, lifestyles, perceptions and attitudes are different. Not many organizations have understood these and not many human resource experts are clear about the ways of motivating such diverse workforce. Motivating employees is also more challenging at a time when firms have dramatically changed the jobs that employees perform, reduced layers of hierarchy, and jetusoned large numbers of employees in the name of right-sizing or down- sizing. These actions have considerably damaged the level of trust and commitment necessary for employee to put in efforts above minimum requirements some organization have resorted to hire and fire and pay-for-performance strategies almost giving up motivational efforts. Such strategies may have some effects (both positive and negative) but fail to make and individual overreach him or her.Third, motives can only be inferred, but not seen. The dynamic nature of needs offend poses challenge to any manager in motivating his or her subordinate. An employee, at any given time, has a various needs, desire, and expectations. Employees who put in extra hours at work to fulfill their needs or accomplishment may find that these extra hours conflict directly with needs for affiliation and their desire to be with their families. However, there is no shortage of models, strategies, and tactics for motivating employees. As a result, firms constantly experiment with next motivational programmed and practice. The basic process of motivation as defined earlier involves a smooth progression of the need-drive-goal motivational cycle. The motivational cycle begins with a need followed by a response directed toward a goal object, when this goal directed drive is blocked before reaching a desired goal, frustration result. [13]

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Frustration is a common event in the daily lives of employees. The strength of frustration in a situation is related to the magnitude of the need which is being thwarted. The barrier may be either overt (outward, or physical) or covert (inward, or mentalsocio-psychological). When a person is frustrated, defense mechanisms get triggered in him. Traditionally, psychologists like Dollard and others felt that frustration always leads to the defense mechanism of aggression. On becoming frustrated, it was thought that a person will react by physically or symbolically attacking the barrier. More recently, aggression is considered as only one possible reaction. Responses to frustration are now viewed as defense mechanisms falling into four broad categories: aggression, withdrawal, fixation and compromise. In order to analyze specific aspects of on-the-job behavioral reaction to know some behavioral reactions to frustration that may occur in the formal organization: aggression is a reaction to a situation wherein ones motives are blocked causing one to turn against others or oneself in verbal, ranting attacks or physical injury. Individual tries to injure or hurt the object, person or group that is acting as the barrier; withdrawal / flight. Leaving the field in which frustration, anxiety, or conflict is experienced either physically or psychologically; fixation. Maintaining a persistent non-adjustive reaction even though all the cues indicate the behavior is not an appropriate response to the problem. Behavior is repeated over and without accomplishing anything for instance, unreasonable stubbornness; compromise. It usually involves substituting a new goal or sublimation; compensation. Individual devotes himself to a pursuit with increased vigor to make up for same feeling of real or imagined inadequacy. In indirect compensation the individual puts in hard efforts to make-up for a weakness in one area by becoming outstanding or excelling in some either area; conversion. Emotional conflicts are expressed in muscular, sensory, or bodily symptoms of disability, malfunctioning, or pain. This is sometimes also known as introverted aggression and it is usually indicated by depression, lack of initiative, self-

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accusation and low energy. Individual anger is directed inwards. His sense of failure results in self-punishment; displacement. It is also known as transferred aggression. Basic psychological process is redirecting pent-up emotions towards persons, ideas, or objects other than the primary source of the emotion. This form occurs when the obstacle is unknown or when the obstacle is known but it is unwise to show direct aggression. When people cannot attack the cause of their frustration directly, they may look for a scapegoat as a target for their hostility. [14] For instance, a worker feels hurt and gets angry when his boss insults him in front of some co-workers. However, the workers future prospects in the organizations and his fate are in the hands of the boss. A typical example is seen when a disgruntled employee continually picks on a week colleague and makes him suffer for the frustration factory atmosphere: fantasy. Day dreaming or other forms of imaginative activity provide an escape from reality and imagined satisfaction. The individual may attempt to daydream that his goals (for instance, promotion) which are otherwise impossible to achieve in real life, have been accomplished. The individual tries to reduce frustration by imagining the satisfaction which he cannot otherwise attain. Temporary escape from reality by day dreaming is apparently a universal characteristic. It serves many useful functions because it tends to strengthen aspirations during a period when goals might otherwise disappear. However, there is danger when the individual relies too heavily upon fantasy and becomes inactive; rationalization. The basic psychological process involves justifying inconsistent or undesirable behavior, Beliefs, statement, and motivations by providing acceptable explanations for them. It simply means making excuses. An individual rationalizes when he gives a good reason rather than a true reason for his behavior. It is interesting to observe when an employee tries to explain why he made a mistake or why he was late to

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work. The motive to avoid criticism and disapproval is quite strong in many individuals when they rationalize and invent reasons; projection. Individual protects himself from awareness of his own undesirable traits or unacceptable feelings by attributing them to others. Individual tends to attribute ones own shortcomings to others so as to cover up his own weakness. The individual does not have to be troubled about a weakness that everyone else has; if he can project that weakness on to other people, he does not have worry about it in himself. So the individual projects: its you, not me; repression. The basic psychological process involves completely excluding from consciousness impulses, experiences and feelings which are psychologically disturbing because they arouse a sense of guilt or shame or anxiety. Repression is a form of forgetting an unhappy incident involving emotions and thereby avoiding all mentions or thought of it. It involves efforts to repress threatening information and keep it in the unconscious. The example of repression is the behavior of a subordinate who forgets to tell his boss something which was embarrassing to him; regression is essentially not acting ones own age. Individual returns to an earlier, less mature level of adjustment and behave in childish way when exposed to frustrating situation, for instance, individual may engage in behaviours such as crying, weeping, sulking or throwing temper- tantrums whenever they are under stress, annoyed or frustrated; reaction formation. Individual acts contrary to his real feelings and emphasizes it with force Thus, an individual who has acquired a reputation as abrasive may behave cordially to minimize his anxieties arising from past abrasive activities. Urge not acceptable to consciousness are repressed and in their stead opposite attitudes or modes of behavior are expressed with considerable force; negativism is an active or passive resistance operating unconsciously; negative adaptation is accepting things as they are, making psychological adaptations unpleasant situation;

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identification. Individual may react to the characteristics and achievements of another person as if they were his own. The individual wants to become like someone else and thus, closely associates with his attitudes and actions identification is modeling oneself after another person imitating his or her characteristics, values, attitudes and other allied qualities. It is not simply copying another individual. It relates to incorporation of another individuals thinking and behavior in ones own thinking and behavior. For instance the junior executives take on the vocabulary, style and mannerisms, or even pomposity of their senior boss who may be highly successful; resignation / apathy / boredom. It is a type of frustration where is one gives-up. It occurs after prolonged frustration when individual loses hope of accomplishing his goal in a particular situation and withdrawn from reality and the source of frustration. This phenomenon is common characteristic of people in dull and boring of routine jobs. Resignation or apathy essentially involves breaking psychological contact with the environment; withholding any sense of emotional or personal involvement; insulation. The individual tries to protect himself emotionally by keeping distance from others. He insulates himself, gets detected, uninvolved, aloof and isolated. He may appear self-sufficient but he maintains this behaviour as a protection rather than because he enjoy it. Individuals who learn to fear situations where they will fail or be ridiculed are particularly apt to adjust by using the mechanism of insulation; sour Grapism is that reaction where by highly desirable but unattainable goals or objectives are considered undesirable. The fox and grapes fable is a classic example of reaction to frustration. The fox who convinced himself that he never wanted the grapes at all since they were sour, the individual also tries to deceive oneself by saying, I never did want to have this promotion since it involved transfer to a remote place. Actually, just like the fox who tries in vain to reach the bunch of grapes, this individual also tries in vain to get the promotion. The sour grapes mechanism comes into existence when the individual wants to hide sense of failure;

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devaluation. Since one of the common causes of self rejection is unfavorable social judgments. One way to defend ones ego against such judgments is to devalue their source. This can be done either by minimizing the importance of judgment or by trying to prove to oneself and others that those who made the adverse evaluation were not competent to pass judgment or were prejudiced. [15]

2.2. Employee motivation and organizational effectiveness No one works for free, nor should they. Employees want to earn reasonable salary and payment, and employees desire their workers to feel that is what they are getting. Money is the fundamental inducement, no other incentive or motivational technique comes even close to it with respect to its influential value. It has the supremacy to magnetize, maintain and motivate individuals towards higher performance. Research has suggested that reward now cause satisfaction of the employee which directly influences performance of the employee. Rewards are management tools that hopefully contribute to firms effectiveness by influencing individual or group behavior. All businesses use pay, promotion, bonuses or other types of rewards to motivate and encourage high level performances of employees. To use salaries as a motivator effectively, managers must consider salary structures which should include importance organization attach to each job, payment according to performance, personal or special allowances, fringe benefits, pensions and so on. Leadership is about getting things done the right way, to do that you need people to follow you, you need to have them trust you. And if you want them to trust you and do things for you and the organization, they need to be motivated. Theories imply that leader and followers raise one another to higher levels of morality and motivation. Motivation is purely and simply a leadership behavior. It stems from wanting to do what is right for people as well as for the organization. Leadership and motivation are active processes.

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Empowerment provides benefits to organizations and makes sense of belonging and pride in the workforce. In fact, it builds a win - win connection among organizations and employees; which is considered an ideal environment in numerous organizations and their employees. Empowering can flourish virtual human capacities. Empowered employees focus their job and work-life with additional importance and this leads to constant progress in coordination and work procedures. Employees execute their finest novelties and thoughts with the sense of belonging, enthusiasm, and delight, in empowered organizations. Adding up, they work with a sense of responsibility and prefer benefits of the organization to theirs. Trust is defined as the perception of one about others, decision to act based on speech, behavior and their decision. If an organization wants to improve and be successful, trust plays a significant role so it should always be preserved to ensure an organizations existence and to enhance employees motivation. It can make intrapersonal and interpersonal effects and influence on the relations inside and out the organization. No matter how automated an organization may be, high productivity depends on the level of motivation and the effectiveness of the workforce so staff training is an indispensible strategy for motivating workers. One way managers can instigate motivation is to give appropriate information on the sentences of their actions on others. From the literature gathered for the study, the factors that enhance employee motivation are fair pay, incentives, special allowances, fringe benefits, leadership, encouragement, trust, respect, joint decision making, quality of supervision, adequate working relationships, appreciation, chances for growth, loyalty of organization, identification and fulfillment of their needs, recognition, empowerment, inspiration, importance attached to their job, safe working conditions, training and information availability and communication to perform actions (fig. 2.1, 2.2).

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Employee Motivation

Organizational Effectiveness

Fig. 2.1 Dependance between employee motivation and organizational effectiveness

The following is the model of the study which will be further discussed and justified.

Recognition

Employee Motivation

Empowerment

Organizational Effectiveness

Fig. 2.2 Influence of recognition and empowerment on organizational effectiveness

Rewards and recognition are essential factors in enhancing employee job satisfaction and work motivation which is directly associated to organizational achievement. The results of the study showed that there exists a significant relationship between recognition and employee work motivation. [16] An empirical study was conducted to examine the impact of reward and recognition programs on employee motivation and satisfaction. The results showed that there is a statistically significant direct and positive relation between recognition and employee work motivation. According to the study job satisfaction is directly associated

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with internal work motivation of employees that enhances as the satisfaction of employees increases. That is why a study says that deficiency of appropriate recognition and rewarding reduces employees work motivation and job satisfaction. Hence, administration of organizations and institutions should build up the arrangement for giving that rewards and recognition to enhance employee job satisfaction and motivational level. Studies and discussion fully recognize the theory that employees work increases their motivation to accomplish tasks and execute responsibilities towards them by the organization. Empowerment is defined as an approach to leadership that empowers subordinate as a main constituent of managerial and organizational effectiveness. Empowerment may also be xpressed as a site to permit employees to formulate decisions. Empowering is giving authority and liberating potential of employees. The main driving force of empowerment is having larger control over how jobs are done and carried for more growth and productivity. It is the study of internal organization power and control which illustrated that the distribution of power and control enhances organizational effectiveness. Empowerment process is a mastering on problems of organizations by people, organizations and societies. It makes employees feel that they are appreciated and for making it possible continuous and positive feedback on their performance is essential. For victorious appliance of empowerment it is essential for an individual to do efforts and take actions in an environment where they are responsible for what they are doing. Employee contribution and their energetic participation in configuring up the organization are tremendously essential to the hale and hearty place of work. Employee empowerment and participation consists of contribution of employees in administration and decision making associated to policies, objectives and strategies of the organization. Employees perceptive of the goals, standards and political principles of their firms were positively and significantly related to employee motivation and

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gratification towards work. Empowerment results in motivating employees that leads to constant expansion and organizational growth. Empowerment directs faster decision of customer troubles for the reason that employees did not dissipate time referring customer objections to managers. Increased autonomy enhances work productivity, amplifies employees wisdom of self-efficacy and their motivation to get upon and complete certain tasks. Managers should regard employees in decision making procedures. Employee participation in organization measures develops motivation and jobsatisfaction level. Empowerment creates motivation and energy in workforce to do their work efficiently and effectively. Together the job characteristics of career revamp and employee empowerment are imperative characteristics in giving greater employee dedication and trustworthiness toward the organization and increased level of motivation. More the loyalty towards the organization and higher the motivation works best for the effectiveness and growth of a business. Participative decision making as a set of planned procedures for systematizing individual sovereignty and autonomy in the perspective of faction accountability and associated to system-wide control. Employee participation and empowerment not only direct to efficiency, effectiveness and innovation but they also boost employee gratification, work motivation and trust in the organization. Empowerment and recognition encourages and motivates people to work. He elaborates it that empowerment grants people with responsibility and authority to act as it puts people in control of their own destinies Also he wrote that its fundamental to our humanity that everyone needs to be recognized about how and what work they have done and next time they do it more efficiently for the sake of more recognition. Employee satisfaction and motivation towards work refers to prospects of the employee about the organization and his approaches frontward his service. Organizational effectiveness refers to locating targets and attaining them proficiently in

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spirited and energetic surroundings. There exists significant positive correlation between employee motivation and organizational effectiveness. The autocratic leadership styles, mechanistic design of organization and authoritarian rules as practiced in African organizations, are all where decision making is concerned only to top management and employees are just given orders to accomplish different tasks. In these types of organizational environment the employees may suppress innovativeness and their motivation hinders which has a direct negative effect on organizational performance, growth and effectiveness. [17] An internally satisfied, delighted and motivated worker or employee is actually a productive employee in an organization which contributes in efficiency and effectiveness of organization which leads to maximization of profits. Thus from the literature and various studies it is scientifically prooved that there exists a positive relationship between employee motivation and organizational effectiveness.

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3. IMPROVING EMPLOYEE MOTIVATION Some employers think that paying their staff a good salary is enough to get the highest level of performance and some employers do not even do that. Paying a good salary is just not enough. Most employees still need to be motivated to increase their awareness of the status of the company, let them know what are expected of them and have them develop genuine care as to the growth and progress of the company they are working for. The most productive and successful businesses are ones where employees are motivated to work. Theyre the ones where staff enjoys their time in the workplace, instead of meandering through the day with one eye on the clock. In this paragraph, various ways to create that positive environment and help build employee motivation will be examoned. [18] Here are some ways to motivate the staff into giving their peak performance: 1. The first step is the hiring process. Before hiring an employee, it is needed to

make sure that he or she is someone who can be motivated. Some employees work only for the money. But it would be best for the company if it has staff who works not only for the money, but for the growth of the company as well. Rewards, bonuses and incentives are also good to get the staff to work for the betterment of the company. Also a good staff motivation scheme is to offer profit-sharing to the employees. This means that if the company is doing well, the staff would also be receiving a portion of the company profits. 2. The employer should also create a good working atmosphere for the

employees. This includes a friendly atmosphere and a well laid out and designed work space. They have to have a workplace which is conducive for productivity. One method often used is to arrange the desks and chairs in such a way that chit chat would be difficult to do. Each of the employees may be assigned a cubicle as their personal space.

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Unfortunately however, building cubicles can cost much, but having a good desk and chair arrangement is the least expensive method to increase work productivity. 3. Management should build and foster good rapport with the staff. Good rapport between staff and employers will instill in the employees a genuine care for the company. It would be to the companys advantage if the staff is allowed to ask for advice from the management or other team members on how to perform their jobs in the most efficient way. The companys staff policies can also be greatly improved i f the employees are allowed to participate in policy-making. Staff appreciate being able to contribute ideas and through this, they can discuss their own beliefs on what is fair and not fair in the subject of employee-discipline and create a better working relationship with the company. [19] 4. The company also has to have annual activities to create friendship and harmony among its employees. An annual Family Day, Christmas party, Team-building activities and Sports day may be included in the companys annual itinerary. It would also be great for the employer to acknowledge an employees contribution to the company by honouring him as the Employee of the Month and by giving him cash or other forms of incentives. A reward system for the employees will often do wonders for the company. Bonuses and incentives can be anything from cash, appliances, and vacation packages to scholarship grants. These will stimulate staff satisfaction and motivation. Have these rewards written in clear black and white and posted on the company bulletin board or in conspicuous areas in the office. That way, the employees know what rewards they can get for their accomplishments. The company should also classify its employees into 3 different categories: those employees who perform efficiently and can deliver the best results. These are those whom the company must keep and reward well; those employees who have potential but are averagely efficient. They still need to be guided and motivated some more in order to extract better productivity. The

company must weigh these employees according to their talents, potentials and degree of efficiency. If they have more efficiency than talent, or more of the latter than efficiency, the company must then decide what would be best for its interest-- to let these employees stay, or to let them go;

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those employees who like to waste time despite the companys earnest efforts at motivation. They are those who waste precious company hours. These are the kind of employees whom the company must immediately dispose of as large amounts of money are being wasted paying these employees. These employees lack emotional involvement in the welfare of the company and do not contribute to the success of the business. Their salaries are wasted and just go down the drain. 5. Match tasks to talents. Employees who succeed at a given task are more likely to feel motivated. In order to ensure this success, its important to understand your employees strengths and weaknesses. To begin with, match them with tasks that play to their strengths to ensure positive outcomes. If an employee finds themselves pigeon holed in a task or area of your business which they dont find comfortable, theyre more likely to become disillusioned. 6. Offer new challenges. While the previous suggestion would seem to contradict this, offering new challenges for employees is a natural progression after theyve enjoyed their first few successes. Those who are truly encouraged will be motivated to expand their skill sets with different on-the-job tasks. Additionally, while an employee may enjoy completing tasks at which theyre proficient early on, they may become bored and lose motivation if their role isnt varied enough in the long term. 7. Educational skills. All career-minded individuals that can be an asset to a company like to feel as though they are improving themselves constantly. By offering educational opportunities such as training days whether in-house or at an outside location staff will be improving their resumes and feel like the business is contributing to their own betterment, thereby building loyalty. Staff should not be thrown straight into the deep end either; induction software can be helpful in this regard, as it allows them to hit the ground running with the required skill set from day one on the job. 8. Be open by letting employees know how the business is performing keeping them in the dark just creates an environment of distrust that negatively affects

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motivation. It is not about a revealing the finances of the business, but let employees know how things are looking for the future, where the company is looking to grow, and how they can contribute to that growth in their role. 9. Acknowledge good work and contributions. Further to the ideas mentioned above, employees like to know that theyre contributing. Not only does this mean understanding how they can contribute it also means letting them know when they have contributed. Create a positive environment by offering kind words and encouragement when your employee does something that benefits the company. It can also be helpful to offer performance-based benefits, such as gift certificates, bonuses and awards. 10. Keep it fun. It is important to remember at all times that work should not be just about work. The average worker spends almost 2,000 hours a year at their place of employment thats a lot of time to waste if theyre not enjoying themselves. In order to maintain employee motivation, its important to hold team-building occasions such as sports days, lunches and after-work drinks at the pub. This helps with team bonding and creates a positive environment where employees can thrive. [20] Staff motivation is critical to the companys advancement so it is something that the employer must understand and practice. The companys development relies heavily on the kind of employees it hires. Thus, having top employees can help propel the company into the big leagues in no time.

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CONCLUSION Motivation is based on growth needs. It is an internal engine, and its benefits show up over a long period of time. Because the ultimate reward in motivation is personal growth. The only way to motivate an employee is to give him challenging work for which he can assume responsibility. Human motivation is so complex and so important, successful management development for the next century must include theoretical and practical education about the types of motivation, their sources, their effects on performance, and their susceptibility to various influences. Employees are the company best assets. If employees are not as motivated, it will have a tremendous effect on productivity. The organizations overall efficiency will decline by unmotivated employees. Managers may even need to hire additional employees to complete tasks that could be done by the existing force. It is important to understand that emotions are also involved in motivation. An employee who is easily emotional about situations may lack the stability to perform optimally. Motivation is also influenced but morale and attitude. Based on previous research done, under regular conditions, employees tend to work at only about twothirds of their capacity. Motivation may also be influenced by the mana gers management style. If a manager is not liked, employees may function minimally. Proper motivation of employees is directly associated with productivity and with maintenance factors. Workers who are content with their jobs, who feel challenged, who have the opportunity to fulfill their goals will exhibit less destructive behavior on the job. They will be absent less frequently, they will be less inclined to change jobs, and, most importantly, they will produce at a higher level.

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