Motivation and Morale - Relationship and Differences

Morale can be defined as the total satisfaction derived by an individual from his job, his work-
group, his superior, the organization he works for and the environment. It generally relates to
the feeling of individual’s comfort, happiness and satisfaction.
According to Davis, “Morale is a mental condition of groups and individuals which determines
their attitude.”
In short, morale is a fusion of employees’ attitudes, behaviours, manifestation of views and
opinions - all taken together in their work scenarios, exhibiting the employees’ feelings towards
work, working terms and relation with their employers. Morale includes employees’ attitudes on
and specific reaction to their job.

There are two states of morale:

High morale - High morale implies determination at work- an essential in achievement of
management objectives. High morale results in:

 A keen teamwork on part of the employees.

 Organizational Commitment and a sense of belongingness in the employees mind.
 Immediate conflict identification and resolution.
 Healthy and safe work environment.
 Effective communication in the organization.
 Increase in productivity.
 Greater motivation.
Low morale - Low morale has following features:

 Greater grievances and conflicts in organization.

 High rate of employee absenteeism and turnover.
 Dissatisfaction with the superiors and employers.
 Poor working conditions.
 Employees frustration.
 Decrease in productivity.
 Lack of motivation.

Though motivation and morale are closely related concepts, they are different in following
ways:
While motivation is an internal-psychological drive of an individual which urges him to
behave in a specific manner, morale is more of a group scenario.
Higher motivation often leads to higher morale of employees, but high morale does not
essentially result in greatly motivated employees as to have a positive attitude towards all
factors of work situation may not essentially force the employees to work more efficiently.
While motivation is an individual concept, morale is a group concept. Thus, motivation takes
into consideration the individual differences among the employees, and morale of the
employees can be increased by taking those factors into consideration which influence
group scenario or total work settings.
Motivation acquires primary concern in every organization, while morale is a secondary
phenomenon because high motivation essentially leads to higher productivity while high
morale may not necessarily lead to higher productivity.
Things tied to morale are usually things that are just part of the work environment, and things
tied to motivation are tied to the performance of the individual.
Staff Motivation - Motivation Tips for Employees
Employees are the building blocks of an organization. Organizational success depends on the
collective efforts of the employees. The employees will collectively contribute to organizational
growth when they are motivated.

Workplace Motivation - Carrot or Stick approach doesn’t work anymore(Reward and

Punishment)
“I am in this job because I have no other option.” If this is what an employee of your company
feels, read on to know how this statement can be changed to something more positive - “I love
what I do.”
First things first - whose responsibility is it to ensure that an employee loves his job? While an
employee would say - the employer, the human resource experts have a different point of view
which sounds fair. It’s both the employer and the employee who should work together to make
work fun for each other.
It is interesting to know here, that employees do not rank ’salary’ as the top factor in determining
whether they like their jobs or not. What is important to them then - the opportunity to do what is
’important’. Almost all the employees would like to feel part of the big picture and would want to
contribute to the organizational goals in some way or the other. Doing the mundane, routine
work will never excite them - what excites them is - work that challenges them to use their
talent. Right Management Consultants conducted a survey sometime back and found that 83%
of about 500 workers surveyed were motivated by “challenges at work”. Also, as per an
executive editor of the Harvard Business Review, while salary and promotions could do a great
job of demotivating people if handled ineffectively, they aren’t so much effective in motivating
people.
So then what needs to be done for effective motivation at workplace?
Link Rewards directly to Performance- An organization should adopt a fair reward
structure which provides incentive to the most deserving employee. Have an incentive
structure in place doesn’t solve the problem... what makes it workable is the employees trust
in the system and believe that they will be rewarded if they perform well.
Compliment employees- Even though an employee’s name has not appeared in the list of
people getting incentives, go ahead and compliment that employee for a job well done - no
matter how small. There is nothing more satisfying to an employee than a pat on his back.
Be transparent- While there may be some strategic decisions which you might want to
share with the employees at a later stage, make sure employees do not give in to the
rumours. Stay in touch with the employees.
Work on your PDP- Every employee is responsible for his / her own career. He / she should
work towards his ’Personal Development Plan’ [PDP] as discussed and agreed by his
manager. Find out what are the training company offers and which is best suited to his
development needs. How this will motivate you - remember training always increase your
marketability and enhance your career.
Participate and Network- Remember you work for a company where a one-on-one
attention might not be possible. Do not wait for an invitation to participate in a discussion. If
you are a part of a forum, then you have full right to express your opinion and be a part of
the process. Expressing yourself is a good way of motivating yourself.

Self Motivation at Work

Self-motivation is a power that drives us to keep moving ahead. It encourages continuous

learning and success, whatever be the scenario. Self-motivation is a primary means of realizing
our goals and progressing. It is basically related to our inventiveness in setting dynamic goals
for ourselves, and our faith that we possess the required skills and competencies for achieving
those challenging goals. We often feel the need for self-motivation.
Following are the ways/techniques for self-motivation:
Communicate and talk to get motivated: Communicating with someone can boost up your
energy and make you go on track. Talk with optimistic and motivated individuals. They can
be your colleagues, friends, wife, or any one with whom you can share your ideas.
Remain optimistic: When facing hurdles; we always make efforts to find how to overcome
them. Also, one should understand the good in bad.
Discover your interest area: If you lack interest in current task, you should not proceed and
continue with it. If an individual has no interest in the task, but if it is essential to perform, he
should correlate it with a bigger ultimate goal.
Self-acknowledgement: One should know when his motivation level is saturated and he
feels like on top of the world. There will be a blueprint that once an individual acknowledge,
 he can proceed with his job and can grow.
Monitor and record your success: Maintain a success bar for the assignments you are
currently working on. When you observe any progress, you will obviously want to foster it.
Uplift energy level: Energy is very essential for self-motivation. Do regular exercises. Have
proper sleep. Have tea/coffee during breaks to refresh you.
Assist, support and motivate others: Discuss and share your views and ideas with your
friends and peers and assist them in getting motivated. When we observe others performing
good, it will keep us motivated too. Invite feedback from others on your achievements.
Encourage learning: Always encourage learning. Read and grasp the logic and jist of the
reading. Learning makes an individual more confident in commencing new assignments.
Break your bigger goals into smaller goals: Set a short time deadline for each smaller
goal so as to achieve bigger goal on time.
Team Motivation - Tips for Motivating Team
A group heading towards a common objective will perform best when it is motivated as a team.
Team motivation is determined by how well the team members’ needs and requirements are
met by the team.
Some tips for effective team motivation are as follows:
The team’s objective should well align and synchronize with the team members needs and
requirements.
Give in written the team’s mission and ensure that all understand it (as mission is a
foundation based on which the team performs).
For maintaining motivation, the team should be given challenges (which must be difficult but
achievable) consistently.
Giving a team responsibility accompanied by authority can also be a good motivator for the
team to perform.
The team should be provided with growth opportunities. The team’s motivation level is high
when the team members feel that they are being promoted, their skills and competencies are
being enhanced, and they are learning new things consistently.
Effective and true leaders can develop environment for the team to motivate itself. They
provide spur for self- actualization behaviours of team members.
Devote quality/productive time to your team. Have an optimistic and good relation with your
team members. This will make you more acquainted with them and you can get knowledge
of how well they are performing their job. Welcome their views and ideas as they may be
fruitful and it will also boost their morale.
Motivation is all about empowerment. The skills and competencies of the team members
should be fully utilized. Empowering the team members makes them accountable for their
own actions.
Provide feedback to the team consistently. Become their mentor. Give the team recognition
for good and outstanding performance. Give the team a constructive and not negative
feedback.
Discover and offset the factors which discourage team spirit such as too many conflicts,
lethargy, team members’ escape from responsibilities, lack of job satisfaction, etc.

The Role of Motivation in Organizational Behavior

Motivation and Organizational Theory

Though we have discussed motivation extensively earlier, the role of the HR department and

the role of the organizational culture in motivating employees have not been discussed at
length. As organizational theory states,

employees need to be motivated to actualize their potential and there are several ways of
enabling them and empowering them to do so.
These include the role of reward systems in motivating employees according to their needs for
extrinsic or external motivation and by providing them opportunities that appeal to their intrinsic
or internal motivation needs. The other factors that motivate employees are the kind of job that
they are asked to perform, the added benefits like extended vacations and perquisites like
company provided accommodation and funding for kids schooling as well as provision of
medical insurance coverage for the employees and their families. In recent years, there has
been lot of emphasis on motivating employees by organizing offsite events and fun and
recreation events where the employees let their hair down and indulge in the much-needed
stress relieving activities. Further, many employees are motivated because of the presence of
famous business leaders in the top management of the company as is the case with Apple,
Microsoft, Infosys, and the TATA Group.
Some Factors that can Motivate Employees

The organizational structure is another aspect that can motivate employees. For instance, it has
been found that flat organizations as opposed to hierarchical organizations motivate employees
more. Next, the organizational culture plays an important role in motivating employees. The
examples of Google, Facebook, and startup companies where the organizational culture is open
and collegiate are relevant in this regard. Third, the HR managers have an important role to play
in motivating employees by interacting with them,

finding their grievances, and proposing solutions to behavioral problems.

There are many multinationals like Fidelity where the HR managers hold one on one sessions
with the employees to foster an open and inclusive culture where employees do not hold
anything back and where they are encouraged to be as forthright as possible. Fourth,
organizations that promote diversity as an organizational imperative are known to motivate
women employees who feel less threatened and less insecure than in organizations where bias
and prejudice are rampant. Fifth, many organizations have the habit of saying one thing and
doing something else altogether which means that they are hypocritical in their approach. Such
organizations cannot motivate the employees particularly at the lower levels since the fresh
recruits and those with less experience often look to the senior managers and the leadership for
integrity and consistency.

Essentials / Features of a Good Motivation System

Motivation is a state of mind. High motivation leads to high morale and greater production. A
motivated employee gives his best to the organization. He stays loyal and committed to the
organization. A sound motivation system in an organization should have the following features:

Superior performance should be reasonably rewarded and should be duely acknowledged.

If the performance is not consistently up to the mark, then the system must make provisions for
penalties.
The employees must be dealt in a fair and just manner. The grievances and obstacles faced by
them must be dealt instantly and fairly.

Carrot and stick approach should be implemented to motivate both efficient and inefficient
employees. The employees should treat negative consequences (such as fear of punishment)
as stick, an outside push and move away from it. They should take positive consequences
(such as reward) as carrot, an inner pull and move towards it.
Performance appraisal system should be very effective.
Ensure flexibility in working arrangements.

A sound motivation system must be correlated to organizational goals. Thus, the

individual/employee goals must be harmonized with the organizational goals.
The motivational system must be modified to the situation and to the organization.
A sound motivation system requires modifying the nature of individual’s jobs. The jobs should
be redesigned or restructured according to the requirement of situation. Any of the alternatives
to job specialization - job rotation, job enlargement, job enrichment, etc. could be used.
The management approach should be participative. All the subordinates and employees should
be involved in decision- making process.
The motivation system should involve monetary as well as non- monetary rewards. The
monetary rewards should be correlated to performance. Performance should be based on the
employees’ action towards the goals, and not on the fame of employees.
“Motivate yourself to motivate your employees” should be the managerial approach.
The managers must understand and identify the motivators for each employee.
Sound motivation system should encourage supportive supervision whereby the supervisors
share their views and experiences with their subordinates, listen to the subordinates views, and
assist the subordinates in performing the designated job.
Classical Theories of Motivation
The motivation concepts were mainly developed around 1950’s. Three main theories were
made during this period. These three classical theories are-

 Maslow’s hierarchy of needs theory

 Herzberg’s Two factor theory
 Theory X and Theory Y
These theories are building blocks of the contemporary theories developed later. The working
mangers and learned professionals till date use these classical theories to explain the concept
of employee motivation.
Maslow’s Hierarchy of Needs Theory
Abraham Maslow is well renowned for proposing the Hierarchy of Needs Theory in 1943. This
theory is a classical depiction of human motivation. This theory is based on the assumption that
there is a hierarchy of five needs within each individual. The urgency of these needs varies.
These five needs are as follows-
1. Physiological
needs- These are the basic
needs of air, water, food,
clothing and shelter. In
other words, physiological
needs are the needs for
basic amenities of life.
2. Safety needs- Safety
needs include physical,
environmental and
emotional safety and
protection. For instance-
Job security, financial  FIGURE:
security, protection from Maslow’s Need Hierarchy Model
animals, family security,
health security, etc.
3. Social needs- Social
needs include the need for
love, affection, care,
belongingness, and
friendship.
4. Esteem needs- Esteem
needs are of two types:
internal esteem needs
(self- respect, confidence,
competence, achievement
and freedom) and external
esteem needs (recognition,
power, status, attention and
admiration).
5. Self-actualization
need- This include the urge
 to become what you are
capable of becoming / what
you have the potential to
become. It includes the
need for growth and self-
contentment. It also
includes desire for gaining
more knowledge, social-
service, creativity and
being aesthetic. The self-
actualization needs are
never fully satiable. As an
individual grows
psychologically,
opportunities keep cropping
up to continue growing.
According to Maslow, individuals
are motivated by unsatisfied
needs. As each of these needs is
significantly satisfied, it drives and
forces the next need to emerge.
Maslow grouped the five needs
into two categories - Higher-order
needs and Lower-order needs.
The physiological and the safety
needs constituted the lower-order
needs. These lower-order needs
are mainly satisfied externally. The
social, esteem, and self-
actualization needs constituted the
higher-order needs. These higher-
order needs are generally satisfied
internally, i.e., within an individual.
Thus, we can conclude that during
boom period, the employees
lower-order needs are significantly
met.
Implications of Maslow’s Hierarchy of Needs Theory for Managers

As far as the physiological needs are concerned, the managers should give employees
appropriate salaries to purchase the basic necessities of life. Breaks and eating
opportunities should be given to employees.

As far as the safety needs are concerned, the managers should provide the employees job
security, safe and hygienic work environment, and retirement benefits so as to retain them.

As far as social needs are concerned, the management should encourage teamwork and
organize social events.

As far as esteem needs are concerned, the managers can appreciate and reward
employees on accomplishing and exceeding their targets. The management can give the
deserved employee higher job rank / position in the organization.

As far as self-actualization needs are concerned, the managers can give the employees
challenging jobs in which the employees’ skills and competencies are fully utilized.
Moreover, growth opportunities can be given to them so that they can reach the peak.
The managers must identify the need level at which the employee is existing and then those
needs can be utilized as push for motivation.
Limitations of Maslow’s Theory

 It is essential to note that not all employees are governed by same set of needs.
Different individuals may be driven by different needs at same point of time. It is always
the most powerful unsatisfied need that motivates an individual.
 The theory is not empirically supported.
 The theory is not applicable in case of starving artist as even if the artist’s basic needs
are not satisfied, he will still strive for recognition and achievement.
Herzberg’s Two-Factor Theory of Motivation
In 1959, Frederick Herzberg, a behavioural scientist proposed a two-factor theory or the
motivator-hygiene theory. According to Herzberg, there are some job factors that result in
satisfaction while there are other job factors that prevent dissatisfaction. According to Herzberg,
the opposite of “Satisfaction” is “No satisfaction” and the opposite of “Dissatisfaction” is “No
Dissatisfaction”.

FIGURE: Herzberg’s view of satisfaction and dissatisfaction

Herzberg classified these job factors into two categories-

a. Hygiene factors- Hygiene factors are those job factors which are essential for existence
of motivation at workplace. These do not lead to positive satisfaction for long-term. But if
these factors are absent / if these factors are non-existant at workplace, then they lead
to dissatisfaction. In other words, hygiene factors are those factors which when
adequate/reasonable in a job, pacify the employees and do not make them dissatisfied.
These factors are extrinsic to work. Hygiene factors are also called as dissatisfiers or
maintenance factors as they are required to avoid dissatisfaction. These factors
describe the job environment/scenario. The hygiene factors symbolized the physiological
needs which the individuals wanted and expected to be fulfilled. Hygiene factors include:
 Pay - The pay or salary structure
should be appropriate and reasonable. It
must be equal and competitive to those in the
same industry in the same domain.
 Company Policies and administrative
policies - The company policies should not be
too rigid. They should be fair and clear. It
should include flexible working hours, dress
code, breaks, vacation, etc.
 Fringe benefits - The employees
should be offered health care plans
(mediclaim), benefits for the family members,
employee help programmes, etc.
 Physical Working conditions - The
working conditions should be safe, clean and
hygienic. The work equipments should be
updated and well-maintained.
 Status - The employees’ status within
the organization should be familiar and
retained.
 Interpersonal relations - The
relationship of the employees with his peers,
 superiors and subordinates should be
appropriate and acceptable. There should be
no conflict or humiliation element present.
 Job Security - The organization must
provide job security to the employees.

b. Motivational factors- According to Herzberg, the hygiene factors cannot be regarded

as motivators. The motivational factors yield positive satisfaction. These factors are
inherent to work. These factors motivate the employees for a superior performance.
These factors are called satisfiers. These are factors involved in performing the job.
Employees find these factors intrinsically rewarding. The motivators symbolized the
psychological needs that were perceived as an additional benefit. Motivational factors
include:
 Recognition - The employees should be praised and recognized for their
accomplishments by the managers.
 Sense of achievement - The employees must have a sense of achievement. This
depends on the job. There must be a fruit of some sort in the job.
 Growth and promotional opportunities - There must be growth and advancement
opportunities in an organization to motivate the employees to perform well.
 Responsibility - The employees must hold themselves responsible for the work.
The managers should give them ownership of the work. They should minimize
control but retain accountability.
 Meaningfulness of the work - The work itself should be meaningful, interesting
and challenging for the employee to perform and to get motivated.
Limitations of Two-Factor Theory
The two factor theory is not free from limitations:

1. The two-factor theory overlooks situational variables.

2. Herzberg assumed a correlation between satisfaction and productivity. But the research
conducted by Herzberg stressed upon satisfaction and ignored productivity.
3. The theory’s reliability is uncertain. Analysis has to be made by the raters. The raters
may spoil the findings by analyzing same response in different manner.
4. No comprehensive measure of satisfaction was used. An employee may find his job
acceptable despite the fact that he may hate/object part of his job.
5. The two factor theory is not free from bias as it is based on the natural reaction of
employees when they are enquired the sources of satisfaction and dissatisfaction at
work. They will blame dissatisfaction on the external factors such as salary structure,
company policies and peer relationship. Also, the employees will give credit to
themselves for the satisfaction factor at work.
6. The theory ignores blue-collar workers. Despite these limitations, Herzberg’s Two-Factor
theory is acceptable broadly.
Implications of Two-Factor Theory

The Two-Factor theory implies that the managers must stress upon guaranteeing the
adequacy of the hygiene factors to avoid employee dissatisfaction. Also, the managers must
make sure that the work is stimulating and rewarding so that the employees are motivated to
work and perform harder and better. This theory emphasize upon job-enrichment so as to
motivate the employees. The job must utilize the employee’s skills and competencies to the
maximum. Focusing on the motivational factors can improve work-quality.
Theory X and Theory Y

In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting two aspects of
human behaviour at work, or in other words, two different views of individuals (employees): one
of which is negative, called as Theory X and the other is positive, so called as Theory Y.
According to McGregor, the perception of managers on the nature of individuals is based on
various assumptions.

Assumptions of Theory X
An average employee intrinsically does not like work and tries to escape it whenever possible.
Since the employee does not want to work, he must be persuaded, compelled, or warned with
punishment so as to achieve organizational goals. A close supervision is required on part of
managers. The managers adopt a more dictatorial style.
Many employees rank job security on top, and they have little or no aspiration/ ambition.
Employees generally dislike responsibilities.
Employees resist change.
An average employee needs formal direction.
Assumptions of Theory Y
Employees can perceive their job as relaxing and normal. They exercise their physical and
mental efforts in an inherent manner in their jobs.
Employees may not require only threat, external control and coercion to work, but they can use
self-direction and self-control if they are dedicated and sincere to achieve the organizational
objectives.
If the job is rewarding and satisfying, then it will result in employees’ loyalty and commitment to
organization.
An average employee can learn to admit and recognize the responsibility. In fact, he can even
learn to obtain responsibility.
The employees have skills and capabilities. Their logical capabilities should be fully utilized. In
other words, the creativity, resourcefulness and innovative potentiality of the employees can be
utilized to solve organizational problems.
Thus, we can say that Theory X presents a pessimistic view of employees’ nature and
behaviour at work, while Theory Y presents an optimistic view of the employees’ nature and
behaviour at work. If correlate it with Maslow’s theory, we can say that Theory X is based on the
assumption that the employees emphasize on the physiological needs and the safety needs;
while Theory X is based on the assumption that the social needs, esteem needs and the self-
actualization needs dominate the employees.

McGregor views Theory Y to be more valid and reasonable than Theory X. Thus, he
encouraged cordial team relations, responsible and stimulating jobs, and participation of all in
decision-making process.

Implications of Theory X and Theory Y

Quite a few organizations use Theory X today. Theory X encourages use of tight control
and supervision. It implies that employees are reluctant to organizational changes. Thus, it does
not encourage innovation.
Many organizations are using Theory Y techniques. Theory Y implies that the managers
should create and encourage a work environment which provides opportunities to employees to
take initiative and self-direction. Employees should be given opportunities to contribute to
organizational well-being. Theory Y encourages decentralization of authority, teamwork and
participative decision making in an organization. Theory Y searches and discovers the ways in
which an employee can make significant contributions in an organization. It harmonizes and
matches employees’ needs and aspirations with organizational needs and aspirations.
Modern Theories of Motivation
We all are familiar with the classical theories of motivation, but they all are not empirically
supported. As far as contemporary theories of motivation are concerned, all are well supported
with evidences. Some of the contemporary / modern theories of motivation are explained below:

 ERG Theory
 McClelland’s Theory of Needs
 Goal Setting Theory
 Reinforcement Theory
 Equity Theory of Motivation
 Expectancy Theory of Motivation
ERG Theory of Motivation
To bring Maslow’s need hierarchy theory of motivation in synchronization with empirical
research, Clayton Alderfer redefined it in his own terms. His rework is called as ERG theory of
motivation. He recategorized Maslow’s hierarchy of needs into three simpler and broader
classes of needs:

 Existence needs- These include need for basic material necessities. In short, it includes
an individual’s physiological and physical safety needs.
 Relatedness needs- These include the aspiration individual’s have for maintaining
significant interpersonal relationships (be it with family, peers or superiors), getting public
fame and recognition. Maslow’s social needs and external component of esteem needs
fall under this class of need.
 Growth needs- These include need for self-development and personal growth and
advancement. Maslow’s self-actualization needs and intrinsic component of esteem
needs fall under this category of need.

The significance of the three classes of needs may vary for each individual.

McClelland’s Theory of Needs

David McClelland and his associates proposed McClelland’s theory of Needs / Achievement
Motivation Theory. This theory states that human behaviour is affected by three needs - Need
for Power, Achievement and Affiliation. Need for achievement is the urge to excel, to
accomplish in relation to a set of standards, to struggle to achieve success. Need for power is
the desire to influence other individual’s behaviour as per your wish. In other words, it is the
desire to have control over others and to be influential. Need for affiliation is a need for open
and sociable interpersonal relationships. In other words, it is a desire for relationship based on
co-operation and mutual understanding.

The individuals with high achievement needs are highly motivated by competing and
challenging work. They look for promotional opportunities in job. They have a strong urge for
feedback on their achievement. Such individuals try to get satisfaction in performing things
better. High achievement is directly related to high performance. Individuals who are better and
above average performers are highly motivated. They assume responsibility for solving the
problems at work. McClelland called such individuals as gamblers as they set challenging
targets for themselves and they take deliberate risk to achieve those set targets. Such
individuals look for innovative ways of performing job. They perceive achievement of goals as a
reward, and value it more than a financial reward.

The individuals who are motivated by power have a strong urge to be influential and controlling.
They want that their views and ideas should dominate and thus, they want to lead. Such
individuals are motivated by the need for reputation and self-esteem. Individuals with greater
power and authority will perform better than those possessing less power. Generally, managers
with high need for power turn out to be more efficient and successful managers. They are more
determined and loyal to the organization they work for. Need for power should not always be
taken negatively. It can be viewed as the need to have a positive effect on the organization and
to support the organization in achieving it’s goals.

The individuals who are motivated by affiliation have an urge for a friendly and supportive
environment. Such individuals are effective performers in a team. These people want to be liked
by others. The manager’s ability to make decisions is hampered if they have a high affiliation
need as they prefer to be accepted and liked by others, and this weakens their objectivity.
Individuals having high affiliation needs prefer working in an environment providing greater
personal interaction. Such people have a need to be on the good books of all. They generally
cannot be good leaders.
Goal Setting Theory of Motivation

In 1960’s, Edwin Locke put forward the Goal-setting theory of motivation. This theory states that
goal setting is essentially linked to task performance. It states that specific and challenging
goals along with appropriate feedback contribute to higher and better task performance.

In simple words, goals indicate and give direction to an employee about what needs to be done
and how much efforts are required to be put in.

The important features of goal-setting theory are as follows:

The willingness to work towards attainment of goal is main source of job motivation. Clear,
particular and difficult goals are greater motivating factors than easy, general and vague goals.
Specific and clear goals lead to greater output and better performance. Unambiguous,
measurable and clear goals accompanied by a deadline for completion avoids
misunderstanding.
Goals should be realistic and challenging. This gives an individual a feeling of pride and triumph
when he attains them, and sets him up for attainment of next goal. The more challenging the
goal, the greater is the reward generally and the more is the passion for achieving it.
Better and appropriate feedback of results directs the employee behaviour and contributes to
higher performance than absence of feedback. Feedback is a means of gaining reputation,
making clarifications and regulating goal difficulties. It helps employees to work with more
involvement and leads to greater job satisfaction.
Employees’ participation in goal is not always desirable.
Participation of setting goal, however, makes goal more acceptable and leads to more
involvement.
Goal setting theory has certain eventualities such as:

Self-efficiency- Self-efficiency is the individual’s self-confidence and faith that he has potential of
performing the task. Higher the level of self-efficiency, greater will be the efforts put in by the
individual when they face challenging tasks. While, lower the level of self-efficiency, less will be
the efforts put in by the individual or he might even quit while meeting challenges.
Goal commitment- Goal setting theory assumes that the individual is committed to the goal and
will not leave the goal. The goal commitment is dependent on the following factors:
Goals are made open, known and broadcasted.
Goals should be set-self by individual rather than designated.
Individual’s set goals should be consistent with the organizational goals and vision.
Advantages of Goal Setting Theory
Goal setting theory is a technique used to raise incentives for employees to complete work
quickly and effectively.
Goal setting leads to better performance by increasing motivation and efforts, but also through
increasing and improving the feedback quality.
Limitations of Goal Setting Theory
At times, the organizational goals are in conflict with the managerial goals. Goal conflict has a
detrimental effect on the performance if it motivates incompatible action drift.
Very difficult and complex goals stimulate riskier behaviour.
If the employee lacks skills and competencies to perform actions essential for goal, then the
goal-setting can fail and lead to undermining of performance.
There is no evidence to prove that goal-setting improves job satisfaction.

Reinforcement Theory of Motivation

Reinforcement theory of motivation was proposed by BF Skinner and his associates. It states
that individual’s behaviour is a function of its consequences. It is based on “law of effect”, i.e,
individual’s behaviour with positive consequences tends to be repeated, but individual’s
behaviour with negative consequences tends not to be repeated.

Reinforcement theory of motivation overlooks the internal state of individual, i.e., the inner
feelings and drives of individuals are ignored by Skinner. This theory focuses totally on what
happens to an individual when he takes some action. Thus, according to Skinner, the external
environment of the organization must be designed effectively and positively so as to motivate
the employee. This theory is a strong tool for analyzing controlling mechanism for individual’s
behaviour. However, it does not focus on the causes of individual’s behaviour.

The managers use the following methods for controlling the behaviour of the employees:

Positive Reinforcement- This implies giving a positive response when an individual

shows positive and required behaviour. For example - Immediately praising an employee for
coming early for job. This will increase probability of outstanding behaviour occurring again.
Reward is a positive reinforce, but not necessarily. If and only if the employees’ behaviour
improves, reward can said to be a positive reinforcer. Positive reinforcement stimulates
occurrence of a behaviour. It must be noted that more spontaneous is the giving of reward, the
greater reinforcement value it has.
Negative Reinforcement- This implies rewarding an employee by removing negative /
undesirable consequences. Both positive and negative reinforcement can be used for
increasing desirable / required behaviour.
Punishment- It implies removing positive consequences so as to lower the probability of
repeating undesirable behaviour in future. In other words, punishment means applying
undesirable consequence for showing undesirable behaviour. For instance - Suspending an
employee for breaking the organizational rules. Punishment can be equalized by positive
reinforcement from alternative source.
Extinction- It implies absence of reinforcements. In other words, extinction implies
lowering the probability of undesired behaviour by removing reward for that kind of behaviour.
For instance - if an employee no longer receives praise and admiration for his good work, he
may feel that his behaviour is generating no fruitful consequence. Extinction may unintentionally
lower desirable behaviour.
Implications of Reinforcement Theory
Reinforcement theory explains in detail how an individual learns behaviour. Managers who are
making attempt to motivate the employees must ensure that they do not reward all employees
simultaneously. They must tell the employees what they are not doing correct. They must tell
the employees how they can achieve positive reinforcement.