Project Report
Project Report
Project Report
A
PROJECT REPORT
Submitted to Gauhati University
In partial fulfillment of requirement for the award of
Bachelor Of Business Administration (BBA)
Submitted by
Rakib Saikia
GU Roll No. UM-201-017-0051
G.U. Registration No.20007112 of …………….
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CERTIFICATE OF ORGINALITY
This is to certify that RAKIB SAIKIA, a student of Bachelor of Business Administration BBA
(HONS.) 5th semester bearing Roll No UM-201-017-0051, Registration No. 20007112 of……..
of GAUHATI COMMERCE COLLEGE, GUWAHATI has prepared a project report entitled ‘A
STUDY ON EMPLOYEE MOTIVATION AT ONGC, NAZIRA’. In partial fulfillment of the
requirement for the graduate degree in Bachelor of Business Administration BBA (HONS.)
under GAUHATI UNIVERSITY.
I hereby declare that the project undertaken by him is carried out under my overall supervision
and guidance and to my best knowledge this project has not been submitted to any time to any
other university or institute for the award of any degree or diploma. It is also to be certified that
the project is original and is exclusively made by him.
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CERTIFICATE FROM GUIDE
I also hereby declare that this project report has not been submitted at any time to any other
university or institute for that award of any degree or diploma.
……………………………………………………..
Assistant Professor
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DECLARATION
I hereby declare that the Project Report entitled ‘EMPLOYEE MOTIVATION AT ONGC,
NAZIRA’ has been prepared by me during the month of November 2022 under the guidance of
Dr Bidisha Lahkar Das Assistant Professor, Department of BBA, Gauhati Commerce College,
Guwahati.
I also hereby declare that this project report has not been submitted at any time to any other
university or institute for the award of any degree or diploma.
Place: Signature
RAKIB SAIKIA
GU Roll No-UM-201-017-0051
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ACKNOWLEDGEMENT
I would also take the opportunity to thank our Coordinator Madam Dr. Anjali Bhuyan
Deka for the continuous support and motivation in preparing and completing the Project..
I express my deep sense of gratitude to my guide Prof.Dr Bidisha Lahkar Das, Department
of BBA of GAUHATI COMMERCE COLLEGE for her valuable guidance in this endeavor. She
has been a constant source of inspiration and I sincerely thank her for her suggestion and help in
preparing this report.
Place: Signature
RAKIB SAIKIA
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PREFACE
Projects are an independent part of nay kind of formal education which helps us to have a
practical exposure as well as better outlook of the subject. In professional course like BBA
students are basically trained and equipped with strong theoretical knowledge about the
accounting, finance, human resource ,marketing and also the time tested methods of running a
successful business.Lastly,students are assigned certain project in various organization to get an
idea about the practical working styles.
I was assigned to do my project in ONGC NAZIRA and did a study on “Employee Motivation at
ONGC Nazira.”
In order to make the data and findings easily understandable, efforts have been made to present
the information in simplified and organized manner, wherever possible, tables have been
incorporated.
Place: Signature
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EXECUTIVE SUMMARY
Project Title
‘A STUDY ON EMPLOYEE MOTIVATION AT ONGC, NAZIRA’
Duration
1 month
Place
Nazira
Institutional Guide
Dr Bidisha Lahkar Das
Assistant Professor, Gauhati Commerce College
MAJOR OBJECTIVES
To identify various factors that are contributing to the individual motivation of
employees.
To study the attitude of employees of ONGC towards their job and overall
administration.
SCOPE
The scope of the study are as follows:
TIME SCOPE: 1st November to 30th November
AREA SCOPE: Nazira
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RESEARCH METHODOLOGY
The research has been conducted to fulfill the objectives of the study. It involves the
applications of various techniques of research methodology as applicable in the field of
management.
The research design is descriptive in nature. Survey method is used for data collection.
Descriptive Research
Descriptive Research is used to describe the characteristic of a population or
phenomenon being studied.
In this project, information pertaining to employee is collected; hence it is
descriptive research.
DATA ANALYSIS
The data has been collected for the study and carefully analyzed. The data has been
presented in tabular form and in pie chart.
Point 1
Point 2
CONCLUSION
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The entire conclusion is drawn on the analysis and interpretation of the primary data
obtained from the employees Of ONGC Nazira which reveals the motivation of
employees in the company.
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CONTENTS
TOPIC PAGE
NO.
CERTIFICATE OF ORIGINALITY
CERTIFICATE FROM GUIDE
DECLARATION
ACKNOWLEDGEMENT
PREFACE
EXECUTIVE SUMMARY
CHAPTER – 1
1.1. Introduction to the study
1.2. Objectives
1.3. Social Significance of the study
1.4. Scope of the study
1.5. Research Methodology
1.6. Limitations of the study
1.7. Chapter planning
CHAPTER – 2
Theoretical Overview
CHAPTER – 3
Brief Profile of the company
CHAPTER – 4
Data Analysis and Interpretation
CHAPTER – 5
Findings and Recommendations
CHAPTER – 6
Conclusion
BIBLIOGRAPHY
ANNEXURE
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LIST OF TABLES
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LIST OF FIGURES
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CHAPTER 1
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1.1 INTRODUCTION OF THE STUDY
Every management tries to coordinate the various factors of production in such a way that their
coordination is maximum in achieving organisational goals. The performance of non-human
factors like machines. depends upon the level of technology and competence of those who use
them. To improve the overall performance of a business it thus becomes essential to increase the
efficiency of the human resource available., arising the need for ‘Motivation’; wherein the
management arouses, directs, encourages, modifies and maintains the desired behaviour of its
workforce towards their work and towards organisational commitment.
As Mr. Rick Pitino says “The only way to get people to like working hard is to motivate them.
Today, people must understand why they’re working hard. Every individual in an organization is
motivated by something different.”
Employee motivation is thus considered as a major task for every manager, to motivate his/her
subordinates and to create the ‘will to work’ among them, by well analyzing their needs and
adopting various forms of motivational techniques that may help create a nudge force to work
better. It should be remembered that a worker may be immensely capable of doing some work
but nothing can be achieved if he/she is not willing to work. The project report entitled
“A study on Employee Motivation at ONGC, Nazira” is mainly conducted to identify the factors
which motivates and will further motivate the employees, and to understand the employees
attitude towards their work and overall administration.
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Oil and Natural Gas Corporation Limited (ONGC) is an Indian multinational oil and gas
company headquartered in Vasant Kunj, New Delhi, India. It is an upstream oil company which
mainly deals with exploration and production of oil & gas and related oil-field services. Today,
ONGC is the flagship company of India; and making this possible is a dedicated team of nearly
33,000 professionals who toil round the clock. It is this toil which amply reflects in the
aspirations and performance figures of ONGC. The company has adopted progressive policies in
scientific planning, acquisition, utilization, training and motivation of the team. At ONGC,
everybody matters, every soul counts.
ONGC has a unique distinction of being a company with in-house service capabilities in all the
activity areas of exploration and production of oil & gas and related oil-field services.
Needless to emphasize, this was made possible by the men & women behind the machine. Over
18,000 technically-competent experienced scientists, engineers and specialist professionals,
mostly from distinguished Universities / Institutions of India and abroad form the core of our
executive profile. They include geologists, geophysicists, geochemists, drilling engineers,
reservoir engineers, petroleum engineers, production engineers, engineering & technical service
providers, financial and human resource experts and IT professionals. Such a huge workforce
needs to be motivated which would enhance their productivity. HR policies at ONGC revolve
around the basic tenet of creating a highly motivated, vibrant & self-driven team. The Company
cares for each & every employee and has in-built systems to recognize & reward them
periodically. Motivation plays an important role in HR Development. In order to keep its
employees motivated the company has incorporated schemes such as Reward and Recognition
Scheme, Grievance Handling Scheme and Suggestion Scheme.
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1.2 OBJECTIVES OF THE STUDY
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1.3. SOCIAL SIGNIFICANCE OF THE STUDY
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1.4 SCOPE OF THE STUDY
The study was conducted among the employees of ONGC, Nazira. It attempts to study the
motivational factors of an individual in the organization. The study may also be extended to
understanding the attitude of employees towards their work and overall organization
administration. Further research work may also be carried out based on this study to enhance
employee productivity in the organization.
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1.5 RESEARCH METHODOLOGY
The survey technique is intended to secure one or more items of the information from the sample
of respondent who are representative of a large group. The information is recorded on a form
known as questionnaire which has a set of printed or written questions with a choice of answers,
devised for the purposes of a survey or statistical study. As data is gathered by giving the
questionnaires to the employees who is believed to have the desired information, this method of
gathering data is known as questionnaire technique.
It can secure both quantitative and qualitative information directly from the
respondents.
It is the only method of directly measuring attitude and motivations.
It is quite flexible in terms of the type of data to be assembled, the method of
collection or the timing of research.
MEANING OF RESEARCH
RESEARCH DESIGN
The research design followed for this project is descriptive. A research design is a set of methods
and procedure used in collecting and analyzing measures of the variables specified in the
problem research. Its main purpose is to determine the frequency with which something occurs
or its association with something else. In descriptive research, the researcher presents a
description of the state of affairs as it exists at present. The researcher can present only what has
happened or what is happening. The variables remain beyond his/her control.
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In this project, information pertaining to employees motivational factors and attitude of the
employees towards their job and overall administration is gathered by asking respondents to fill
the questionnaire which has questions relevant to the objectives of this study and it is also
believed the respondents i.e., the employees have the desired information; hence it is a
descriptive research as the description is in accordance with the state of affairs as it exists at
present.
DATA COLLECTION
Primary Data: Data observed or collected directly from the first hand experience. Primary data
are data originated by a researcher for the specific purpose of addressing the problem at hand.
The following are the sources of primary data which are being used for the completion of this
study :
Questionnaire: It is the set of questions on a sheet of paper was being given to fill it, it is
the basis on which data is interpreted.
Direct Interviewing: It is a method in which information is gathered through direct
communication with the respondents involving a reciprocal exchange. In other words, it
is a proper conversation in which one or more persons(interviewer) ask question, check
or assess another person(interviewee).Questions were asked directly to the respondents
i.e., the employees and relevant information is obtained and analyzed.
Secondary Data: Secondary data are data that have already been collected for purposes other than
the problem at hand. In other words, secondary data are the data which are readily available and
did not require much effort. Such data are very helpful and are used for the study.
SAMPLING UNIT
A Sampling unit is one of the units selected for the purpose of sampling. Each unit being
regarded as individual and indivisible when the selection is made. For the study the researcher
has taken only the employees of ONGC, Nazira as the sampling unit.
SAMPLE SIZE
Sample size means the number of items or observation in a sample. For the study the researcher
has taken a sample size of 50
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RESEARCH INSTRUMENT
Research instruments are measurement tools designed to obtain and analyze the data.
The data for this research was collected by the survey technique using interview method guided
by questionnaire which is tabulated and analyzed with the help of percentage method, bar
diagram, pie charts, column charts.
SAMPLING TECHNIQUE
1.Judgement sampling technique:
Judgement sampling is a form of convenience sampling in which the population elements
are selected based on the judgement of the researcher. The researcher, exercising
judgement or expertise, chooses the elements to be included in the sample because he or
she believes that they are representative of the population of interest or are otherwise
appropriate. Common examples of judgement sampling include: (1) test markets
selected to determine the potential of a new product, (2) purchase engineers selected in
industrial marketing research because they are considered to be representative of the company,
(3) product testing with individuals who may be particularly fussy or who hold
extremely high expectations, (4) expert witnesses used in court, and (5) supermarkets
selected to test a new merchandising display system.
Judgement sampling is inexpensive, convenient and quick, yet it does not allow direct
generalisations to a specific population, usually because the population is not defined
explicitly. Judgement sampling is subjective and its value depends entirely on the
researcher’s judgement, expertise and creativity.
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of sampling units is left primarily to the interviewer. Often, respondents are selected
because they happen to be in the right place at the right time. Examples of convenience
sampling include: (1) use of students, church groups and members of social organisations,
(2) street interviews without qualifying the respondents, (3) some forms of email
and Internet survey, (4) tear-out questionnaires included in a newspaper or magazine, and
(5) journalists interviewing ‘people on the street’. Convenience sampling is the least expensive
and least time consuming of all sampling techniques. The sampling units are accessible, easy to
measure and cooperative.
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1.6 LIMITATIONS OF THE STUDY
The major constraint was the time factor. The study could only be conducted within a
very limited period and within a limited number of respondents of just 50.
The second constraint is the respondents’ response. Most of the respondents were not
interested to give information. So they gave their response unwillingly which probably
lead to some error.
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1.7 CHAPTER PLANNING
For the convenience of the study the whole project report has been divided in the
following chapters.
CHAPTER 1: Introduction
The introductory chapter of the study include a brief introduction to the study,
objectives, scope, limitations, social significance of the study.
CHAPTER 7: Conclusion
BIBLIOGRAPHY
ANNEXURE
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CHAPTER 2
LITERATURE REVIEW
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LITERATURE REVIEW
One of the most important functions of management is to create willingness amongst the
employees to perform in the best of their abilities. Therefore, the role of a leader is to arouse
interest in performance of employees in their jobs. In a complex and dynamic environment,
leader of the organization used to create the environment in which employee feel trusted and
are empowered to take decisions in the organization which leads to enhance motivation level
of employee and ultimately organizational performance are enhanced. Fredrick W Taylor
was one of the first theorists to attempt to understand employee motivation. His theory of
scientific management, also referred to as Taylorism, analyses the productivity of the
workforce.
Taylor's basic theory of motivation is that workers are motivated by money. He viewed
employees not as individuals, but as pieces of a larger workforce; in doing so his theory
stresses that giving employee's individual tasks, supplying them with the best tools and
paying them based on their productivity was the best way to motivate them.
Taylor's theory developed in the late 1890s and can still be seen today in industrial
engineering and manufacturing industries. In the mid-1920s another theorist, Elton Mayo,
began studying the workforce. His study of the Hawthorne Works, lead him to his discovery
of the Hawthorne effect. The Hawthorne effect is the idea that people change their behaviour
as a reaction to being observed.
Mayo found that employee's productivity increased when they knew they were being
watched. He also found that employees were more motivated when they were allowed to give
input on their working conditions and that input was valued.
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Smith and Rupp stated that performance is a role of individual motivation, organizational
strategy, and structure and resistance to change, is an empirical role relating motivation in the
organization.
Likewise, Malina and Selto (2001) conducted a case study in one corporate setting by using
balance score card (BSC) method and found out that organizational outcomes would be
greater if employees are provided with positive motivation.
The establishment of operations-based targets will help the provision of strategic feedback by
allowing the evaluation of actual performance against the operations-based targets. Goal
directed behaviour and strategic feedback are expected to enhance organizational
performance. Kunz and Pfaff (2002) stated no substantive reason to fear an undermining
effect of extrinsic rewards on intrinsic motivation.
Decoene and Bruggeman (2006) in their study developed and illustrated a model of the
relationship between strategic alignment, motivation and organizational performance in a
BSC context and find that effective strategic alignment empowers and motivates working
executives.
Leaders motivate people to follow a participative design of work in which they are
responsible and get it together, which make them responsible for their performance.
Monetary rewards can be a very powerful determinant of employee motivation and
achievement. Garg and Rastogi identified the key issues of job design research and practice
to motivate employees’ performance and concluded that a dynamic managerial learning
framework is required to enhance employees’ performance to meet global challenges.
Vuori and Okkonen (2012) stated that motivation helps to share knowledge through an intra-
organizational social media platform which can help the organization to reach its goals and
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objectives. Den and Verburg (2004) found the impact of high performing work systems, also
called human resource practices, on perceptual measures of firm performance.
Ashmos and Duchon (2000) recognizes that employees have both a mind and a spirit and
seek to find meaning and purpose in their work, and an aspiration to be part of a community,
hence making their jobs worthwhile and motivating them to do at a high level with a view to
personal and social development.
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CHAPTER 3
THEORETICAL OVERVIEW
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MOTIVATION
Motivation originally comes from the Latin word movere, which means “to move”. It is derived
from the word ‘motive’. Motive may be defined as an inner state of our mind that activates and
directs our behaviour. It makes us move to act. It is always internal to us and is externalized via,
behaviour. Motivation is one’s willingness to exert efforts towards the accomplishment of his/her
goal.
In the opinion of Stephen P. Robbins, “Motivation is the willingness to exert high levels of
effort toward organizational goals, conditioned by the effort ability to satisfy some individual
need.”
Gray and Strake defined motivation as “the result of processes, internal or external to the
individual, that arouse enthusiasm and persistence to pursue a certain course of action.”
Thus, motivation can be defined very simply as the willingness to exert toward the
accomplishment of goal or need.
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THEORIES OF MOTIVATION
From the very beginning, when the human organizations were established, various thinkers
have tried to find out the answer to what motivates people at work. Different approaches
applied by them have resulted in a number of theories concerning motivation. These all
theories are broadly classified into two categories:
1.Content Theories
These theories are people-centered that explain ‘what’. The main theories that fall under this
category are:
2.Process Theories
These theories are work-centered that explain ‘how.’ Following are the main theories under
this category:
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CONTENT THEORIES
SELF ACTUALISATION
ESTEEM NEEDS
SOCIAL NEEDS
SAFETY NEEDS
PHYSIOLOGICAL NEEDS
It is probably safe to say that the most well – known theory of motivation is Maslow’s need
hierarchy theory. Maslow’s theory is based on the human needs. Drawing chiefly on his clinical
experience, he classified all human needs into a hierarchical manner from the lower to the higher
order. In essence, he believed that once a given level of need is satisfied, it no longer serves to
motivate man. Then, the next higher level of need has to be activated in order to motivate the
man.
Maslow identified five levels in his need hierarchy as shown in the above figure.
1.Physiological Needs: These needs are basic to human life and, hence, include food,
clothing,shelter,air,water and other necessities of life.These needs relate to the survival and
maintenance of human life.They exert tremendous influence on human behaviour.These needs to
be met first at least partly before higher level needs emerge. Once physiological needs are
satisfied, they no longer motivate the man.
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2.Safety Needs: After satisfying the physiological needs, the next needs felt are called
safety and security needs.These needs find expression in such desires as economic security and
protection from physical dangers. Meeting these needs requires more money and,hence,the
individual is prompted to work more.Like physiological needs, these become inactive once they
are satisfied.
4.Esteem Needs: These needs refer to self-esteem andself-respect. They include such
needs which indicate self-confidence, achievement, competence, knowledge and
independence.The fulfillment of esteem needs leads to self-confidence, strength and capability of
being useful in the organization. However, inability to fulfil these needs results in feeling like
inferiority, weakness and helplessness.
The psychologist Frederick Herzberg extended the work of Maslow and proposed a new
motivation theory popularly known as Herzberg’s Two-Factor(Motivation Hygiene) Theory.
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Herzberg a widely reported motivational study on 200 acountants and engineers employed by
firms in and around western Pennsylvania.He asked these people to describe two important
incidents at their jobs: (1) When did you feel particularly good about your job,and (2) when did
you feel exceptionally bad about your job. He used the critical incident method of obtaining data.
The responses when analyzed were found quite interesting and fairly consistent. The
replied the respondents offered were consistent. The replies the respondents gave when they felt
good about their jobs were significantly different from the replies given when they felt bad.
Reported good feelings were generally associated with job satisfaction whereas bad feelings with
job dissatisfaction. Herzberg labeled the job satisfiers motivators, and he called job dissatisfiers
hygiene or maintenance factors. Taken together, the motivators and hygiene factors have
become known as Herzberg’s two-factor theory of motivation.
Herzberg’s motivational and hygiene factors have been shown in the Table
According to Herzberg, today’s motivators are tomorrow’s hygiene because the latter
stop influencing the behaviour of persons when they get them. Accordingly, one’s hygiene may
be the motivator of another.
HYGIENE: Job Dissatisfaction Motivators: Job Satisfaction
Achievement
Recognition
Work itself
Responsibility
Advancement
Growth
Supervision
Interpersonal Relations
Working Conditions
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Salary
Status
McGregor’s Theory X and Theory Y
Douglas McGregor formulated two distinct views of human being base on participation of
workers. The first basically negative, labeled Theory X, and the other basically positive, labeled
Theory Y. Theory X is based on the following assumptions :
1.People are by nature indolent. That is, they like to work as little as possible.
3.People are inherently self-centered and indifferent to organizational needs and goals.
4.People are generally gullible and not very sharp and bright.
What McGregor tried to dramatise through his theory X and theory Y is to outline the extremes
to draw the fencing within which the organization man is usually seen to behave. The fact
remains that no organizational man would actually belong either to theory X or theory Y. In
reality, he/she shares the traits of both. What actually happens that man swings from one set of
properties to the other with changes in his mood and motives in changing environment.
Clayton reexamined Maslow’s Need Hierarchy Theory with the help of empirical research. Thus,
he developed another need-based theory called ‘Existence, Relatedness and Growth (ERG)
Theory.’ Alderfer classified all human needs into three broad needs as follows:
1. Existence Needs: These are basic material needs for one’s existence or survival.
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2. Relatedness Needs: These refers to desire to establish, maintain, and develop inter-personal
relations.
3.Growth Needs: These refer to one’s intrinsic desire for one’s development to the extent one
can.
Another well known need based theory of motivation, as opposed to hierarchy of needs or
satisfaction- dissatisfaction, is the theory developed by McClelland and his associated
McClelland developed his theory based on Henry Murry's' developed long list of motives and
manifest needs used in his early studies of personality. McClelland's need theory is closely
associated with learning theory, because he believed that needs are learned or acquired by the
kinds of events people experienced in their environment and culture. He found that people who
acquire a particular need behave differently from those who do not have. His theory focuses on
three needs: achievement, power and affiliation. In the literature these three are abbreviated "n
Ach", n Pow" and "n Aff" respectively". They are defined as follow:
Need for Achievement: This is the drive to excel, to achieve in relations of standard, and to strive
to succeed. In other words, need for achievement behaviour directed toward competition with a
standard of excellence". McClelland found that people with a high need for achievement perform
better than those moderate or low need for achievement, and noted regional/national differences
in achievement motivation. Through his research, McClelland identified the following three
characteristics of high-need achievers:
ma
1. High-need achievers have a strong desire to assume personal responsibility for performing a
task of finding a solution to a problem.
2. High-need achievers tend to set moderately difficult goals and take calculated risks.
3. High-need achievers have a strong desire for performance feedback.
Need for Power: The need for power is concerned with making an impact on others, the desire
to influence others, the urge to change people, and the des make a difference in life". People with
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a high need for power are people who like to be in control of people and events. This results in
ultimate satisfaction to man.
People who have a high need for power are characterized by:
Need for Affiliation: The need for affiliation is defined as a desire to establish maintain friendly
and warm relations with other people. The need for affiliation, any ways, is similar to Maslow's
social needs. The people with high need for affiliation have these characteristics:
1. They have a strong desire for acceptance and approval from others. 2. They tend to conform to
the wishes of those people whose friendship and companionship they value.
Process Theories
One of the most widely accepted explanations of motivation is offered by Victor Vroom in his
Expectancy Theory". It is a cognitive process theory of motivation theory is founded on the basic
notions that people will motivated to exert a level of effort when they believe there are
relationships between the effort they put forth, the performance they achieve, and the
outcomes/rewards they receive.
Effort
Performance
Reward
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Will performance lead to rewards?
1. Valence: Valence, according to Vroom, means the value or strength one places on a particular
outcome or reward.
Thus, Vroom's, motivation can also be expressed in the form of an equation as follows:
Being the model multiplicative in nature, all the three variables must have high positive values to
imply motivated performance choices. If any one of the variable approaches to zero level, the
possibility of the so motivated performance also touches zero level.
In fact, Porter and Lawler's theory is an improvement over Vroom's expectancy They posit that
motivation does not equal satisfaction or performance. The model suggested by them encounters
some of the simplistic traditional assumptions made about the positive relationship between
satisfaction and performance. They proposed a multi-variate model to explain the complex
relationship that exists between satisfaction and performance. What is the main point in Porter
and Lawler's model is fort or motivation does not lead directly to performance.
It is, in fact, mediated by abilities and traits and by role perceptions. Ultimately, performance
ends to satisfaction. This is depicted in the following Fig
Effort: Effort refers to the amount of energy an employee exerts on a given How much effort an
employee will put in a task is determined by two facto value of reward and perception of effort-
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reward probability. Performance: One's effort leads to his/her performance. Both may be equal or
may not be. However, the amount of performance is determined by the amount of labour and the
ability and/or makes wrong role perception, his/her performance may be low in spite of his
putting in great efforts.
Satisfaction: Performance leads to satisfaction. The level of satisfaction depends upon the
amount of rewards one achieves. If the amount of actual rewards meet or exceed perceived
equitable rewards, the employee will feel satisfied. On the contrary, if actual rewards fall short of
perceived ones, he/she will be dissatisfied.
Rewards may be of two kinds - intrinsic and extrinsic rewards. Example intrinsic rewards are
such as a sense of accomplishment and self-actualisation.As regards extrinsic rewards, these may
include working conditions and status. A fair degree of research supports that the intrinsic
rewards are much more likely to produce attitudes about satisfaction that are related to
performance.
There is no denying of the fact that the motivation model proposed by Porter and Lawler is quite
complex than other models of motivation. In fact, motivation itself is not a simple cause-effect
relationship rather it is a complex phenomenon. Porter and Lawler have attempted to measure
variables such as the values of possible rewards, the perception of effort-rewards probabilities,
and role perceptions in deriving satisfaction. They recommended that the managers should
carefully reassess the reward system and structure. The effort-performance-reward-satisfaction
should be made integral to the entire system of managing men in organisations.
J. Stacy Adams is credited with the development of equity theory of motivation. Equity can be
defined as a ratio between inputs and outputs. Accordingly, equity theory means an individual's
subjective judgments about the fairness of the reward he or she got relatives to the inputs (such
as effort, experience, and education), in comparison with the rewards of others. According to
equity theory, there should balance of the outcomes/inputs relationship for one person in
comparison with that for
another person. On the contrary, inequity takes place when a person perceives that the ratio of
his/her outcomes to inputs and the ratio of a relevant other's outcomes to inputs are unequal. If
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people feel that they are inequitably rewarded, they may dissatisfied, reduce the production in
both quantity and organization. If people perceive the rewards as equitable, they probably will
continue at the same level of output. If people think the rewards are greater then what is
considered equitable, they may work harder. It may also be possible that some may discount the
rewards. These three situations are illustrated in the following figure.
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Importance of Motivation:
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