EXECUTIVE SUMMARY

Employee Motivation is an integral part Human Resource Management and it plays a

crucial role in the long-term growth of an organization. Motivation can be defined as
the inherent enthusiasm and driving force to accomplish a task. It can be used in
directing employees behaviour and actions for a constructive vision or goal.
Well-motivated employees are an asset to the organization and they write the success
of organization and therefore, every organization should accord utmost attention to
employees’ motivation.
A well-motivated employee stays with the organization through its thick and thin.
Motivation is essential for establishing an effective relationship between the employer
and the employees.
It can also be defined as the attitude employees have towards their work. It is the desire
and energy that makes people continually interested and committed to a job. It is what
drives them, pushes them, or “motivates” them to achieve or even show up at work
every day.
In the Modern Management System many methods of motivation have been put into
practice to enhance productivity of the employees. Apart from various methods of
motivation, there are certain well-acknowledged motivators such as job design, nature
of job and system of incentives and rewards for the employees that play a decisive role
in ensuring employees’ longevity, productivity and efficiency.
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 A STUDY ON EMPLOYEE MOTIVATION
CHAPTER 1

1. INTRODUCTION TO HRM

Human resource management (HRM or HR) is the management of human resources. It

is designed to maximize employee performance in service of an employee’s strategic
objectives. HR is primarily concerned with the management of people within
organization, focusing on policies of an system.HR departments are possible for
overseeing employee benefits design, employee recruitment, training, and development
performance appraisal, and rewarding (e.g., managing pay and benefit system). HR also
concerns itself with organizational change and industrial relations that is, the balancing
of organizational practices and requirement arising from collective bargaining and form
governmental loss. HR is a product of the human relations movement of the early 20th
century when researchers began to document the ways of creating business values
through the strategic management. It was initially dominated by transactional work,
such as payroll and benefits administration, but due to globalization, company
consolidation, technological advances, and further research, HR as of 2015 focuses on
strategic initiatives like mergers and acquisitions, talent management, succession
planning, industrial and labor relation, and diversity and inclusion.

Human resource is a business field focusing on maximizing employee productivity.

Human resources professionals manage the human capital of an organization and focus
on implementing policies and processes. They can be specialists focusing on recruiting,
training, employee relations or benefits. Recruiting specialists are in charge of finding
and hiring top talent. Training and development professional ensure that employees are
trained and have continuous development.

1.1 Employee motivation

Employee motivation is the level of energy, commitment, and creativity that a

company’s workers bring to their jobs. Whether the economy is growing or shrinking,
finding ways to motivate employees is always a management concern. Competing
theories stress either incentives or employee involvement (empowerment).
Motivation is an important function which very manager performs for actuating the
people to work for accomplishment of objectives of the organization. Issuance of well-
conceived instructions and orders does not mean that they will be followed. A manager
has to make appropriate use of motivation to enthuse the employees to follow them.
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Effective motivation succeeds not only in having an order accepted but also in gaining a
determination to see that it is executed efficiently and effectively.

To motivate workers to work for the organizational, goals, the managers must determine
the motives or needs of the workers and provide an environment in which appropriate
incentives are available for their satisfaction. If the management is successful in doing
so; it will also be successful in increasing the willingness of the workers to work. This
will increase efficiency and effectiveness of the organization. There will be better
utilization of resources and workers abilities.

1.1.1 Meaning of employee motivation

Motivation is nothing but it is a systematic process of encouraging the employees by

considering different models in view of making them to complete any kind of work
within time

1.1.2 Definition of employee motivation

According to Dalton E. McFarland, “The concept of motivation is mainly

psychological. It related to those forces are many and keep changing with time motives
are invisible and directed towards certain goals

1.2 Types of factors

Financial incentives

• Wages
• Salary
• Bonus
• Profit sharing
• Insurance
• Housing facility
• Medical reimbursement

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Non-financial incentives

• Job security
• Performance Appraisal
• Participation
• Delegation of authority
• Status and pride
• Work environment

1.3 Theories of motivation

1.3.1 Abraham Maslow’s need hierarchy

Abraham Maslow’s widely acknowledged need hierarchy theory evolved in 1940’s

holds good even today for having a good understanding of human motivation. The
theory of tremendous effect on modern management approach to motivation. Basing
upon his experience of human behaviour. Maslow concluded that a person’s
motivational needs can be put in a hierarchical order.

Maslow’s founds five level in his need hierarchy.

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Physiological needs
Basic needs food, drink, shelter, clothing while motivating employees. These needs
once fulfilled no longer motive. However, existence of these needs largely employee’s
performance.

Safety
It is human nature to feel safe and secure everywhere personal security, financial
security, job security, misfortune etc. such needs are generally met by safety laws,
measure of social security.

Social Needs
After physiological and safety needs are fulfilled, the third level of human needs is
interpersonal and involves feelings of belongingness. Love, friendship, Affection

Esteem needs
These needs are reflected in our desire for status and recognition, respect and prestige in
the work group or workplace. Human beings strongly want for power, authority,
achievement, and high status that give him reputation and esteems in the society.

Self-actualization
It is the higher order need in Maslow’s need hierarchy. It is a desire to become what one
wants in life. The need to lead a meaningful and satisfied life belongs to this level. A
sense of self-fulfilment motivates a person to do higher achievements.

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1.3.2 Fredrik Herzberg

Fredrik Herzberg that there are certain factors in the workplace that there are two factors

Hygiene factors

• Working condition
• Salary and job status
• Security
• Company policy

Motivate factors

• Achievement
• Recognition
• Promotion
• Responsibility

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1.3.3 McClelland’s

Need for achievement

These kind of employees always challenging assignments something difficult attain
high standard of success

Need for affiliation

Desire to form close personal relationship and friendships, avoid conflicts

Need for power

Desire to influence or control others, be responsible and have authority over others

1.4 Process of motivation

• Identification of need
• Tension
• Goals

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1.5 Types of motivation

Intrinsic motivation
Intrinsic motivation means that the individual's motivational stimuli are coming from
within. The individual has the desire to perform a specific task, because its results are in
accordance with his belief system or fulfills a desire and therefore importance is
attached to it

• Acceptance
• Honor
• Independence

Extrinsic motivation

Extrinsic motivation means that the individual's motivational stimuli are coming from
outside. In other words, our desires to perform a task are controlled by an outside
source. Note that even though the stimuli are coming from outside, the result of
performing the task will still be rewarding for the individual performing the task

• Employee of month award

• Benefit packages
• Bonuses
• Organized activities

1.6 Significance of motivation

Motivation involves getting the members of the group to pull weight effectively, to
give their loyalty to the group, to carry out properly the purpose of the organization.
The following results maybe expected if the employees are properly motivated.

• The workforce will be better satisfied if the management provides them with
opportunities to fulfil their physiological and psychological needs. The
workers will cooperate voluntarily with the management and will contribute
their maximum towards the goals of the enterprise.

• Workers will tend to be as efficient as possible by improving upon their skills

and knowledge so that they are able to contribute to the progress of the
organization. This will also result in increased productivity.

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1.7 Importance of motivation

• It leads to high level performance of organization

• Improvement of skills and knowledge
• Drives to the best result of goals
• To increase the confidence level of the employee
• Improves relation between manager and employees

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