MCOB

UNIT 4
Maslow’s Hierarchy of Needs Theory
Maslow’s Hierarchy of Needs Theory is regarded as one of the most popular
theories on motivation. It is a theory of psychology that explains that humans are
highly motivated in order to fulfill their needs, which is based on hierarchical
order.
It was first introduced by Abraham Maslow in 1943 for his paper titled Theory of
Motivation and is based on a hierarchy of needs, which starts with the most basic
needs and subsequently moves on to higher levels.
The main goal of this need hierarchy theory is to attain the highest position or the
last of the needs, i.e need for self actualization.
In business studies, it is used as a part of organisational behaviour and also
regularly used in psychology lectures.
 Levels of Hierarchy
The levels of hierarchy in Maslow’s need hierarchy theory appear in the shape of a pyramid,
where the most basic need is placed at the bottom while the most advanced level of hierarchy
is at the top of the pyramid.
Maslow was of the view that a person can only move to the subsequent level only after
fulfilling the needs of the current level.
The needs at the bottom of the pyramid are those which are very basic and the most complex
needs are placed on the top of the pyramid.
1. Physiological needs: The physiological needs are regarded as the most basic of the needs
that humans have. These are needs that are very crucial for our survival. The examples of
physiological needs are food, shelter, warmth, health, homeostasis and water, etc.
In addition to all the above needs, Abraham Maslow also included sexual reproduction as one
of the most common needs as it is essential for the survival of the species.
2. Safety Needs: Once the basic needs of food, shelter, water, etc are fulfilled,
there is an innate desire to move to the next level. The next level is known as the
safety needs. Here the primary concern of the individual is related to safety and
security.
Safety and security can be regarding many things like a stable source of income
that provides financial security, personal security from any kind of unnatural
events, attacks by animals and emotional security and physical safety which is
safety to health.
The various actions taken by an individual in ensuring safety and security are
finding a job, getting an insurance policy, choosing a secure neighborhood for
staying with family, etc.
3. Social Needs (Also known as Love and Belonging Needs): This is the third level in
the need hierarchy theory. It is that stage where an individual having fulfilled his
physiological needs as well as safety needs seeks acceptance from others in the form of
love, belongingness.
In this stage, human behaviour is driven by emotions and the need for making emotional
relationships is dominant here.
The following examples can satisfy this need:
1. Friendship
2. Family
3. Intimacy
4. Social Groups
When an individual is deprived of the above needs, he/she feels lonely and depressed.
4. Esteem needs: This is considered as the fourth level of the hierarchy of needs theory.
It is related to the need of a person being recognised in the society. It deals with getting
recognition, self respect in the society.
The need for recognition and acceptance arises when a person has fulfilled their need for
love and belongingness.
In addition to recognition from others, there is a need for the person to develop self
esteem and personal worth.
5. Self-actualization needs: This is the final level of the theory of hierarchy of needs as
proposed by Maslow.
It is the highest level of needs and is known as the self-actualization needs. It relates to
the need of an individual to attain or realise the full potential of their ability or potential.
At this stage, all individuals try to become the best version of themselves.
In other words, self actualisation is the journey of personal growth and development.
Hierarchy of needs is always displayed
as a pyramid
McGregor Theory-
Theory X and Theory Y

Douglas McGregor work is established in motivation theory. McGregor postulated 2

theories on human management and leadership which are Theory X and Theory Y.
Theory X advanced the view that human beings have an innate dislike for work.
They can only be made to get results at work by the application of coercive methods
and by direction. Theory X stresses on the authoritarian style of leadership where
results are the focus of leadership and it is more work-centered than people-centered.
Theory Y approach to management is more people-centered. Here the individual is
valued and appreciated. Theory Y submits that when workers are given the right kind
of environment, they can reach their highest potential and can be of great value to
their organizations.
 McGregor’s Theory X & Y

Theory X Theory Y

Work Avoiding Work is natural

Need to control Capable of self-direction

Avoid responsibility Seek responsibility

Workers seek security Can make a good decision

McGregor postulated, that leaders who hold Theory X assumptions believe
that people are lazy, abhor responsibility and not motivated and therefore
need to be coerced before they will work and show commitment.
Such a leadership assumption leads to very close supervision and control
of workers and siphons the ingenuity of workers and results in a lack of
motivation in workers.
Leaders, who practice Theory Y assumptions, on the other hand, involves
workers to engage in joint problem solving, to understand the needs of
team members and to integrate personal needs of achievement with
organizational objectives.
Although with such an approach the leader facilitates and initiates the
control process, it is done with the involvement of the workers in mind and
can be encouraging and motivating for them.
Herzberg’s Model

Frederick Herzberg, an American psychologist mostly known for

introducing the two-factor theory or Herzberg’s motivation-
hygiene theory.
His theory tries to get to the root of motivation in the workplace.
According to Herzberg’s Model theory, there are some job factors in
the workplace that result in satisfaction while there are other job
factors that cause dissatisfaction.
Herzberg Model defined two sets of factors in determining an employee’s
working attitude and level of performance name Motivation and Hygiene factors.
1.Motivators: Motivation factors are essential to motivate an employee to higher
performance.
Examples: Meaningful and challenging work, recognition for one’s
achievement, responsibility, involvement in decision making, sense of
importance to an organization, etc.
2.Hygiene factors: These do not lead higher motivation or cause satisfaction but
in its absence there is dissatisfaction.
The term hygiene is used in the sense that these are maintenance factors. Hygiene
factors are extrinsic to work.
Examples: Pay, job security, company policies, security, status, etc.
The Four Combinations

According to Herzberg’s Model, here are 4 possible combinations:

1.High Hygiene and High Motivation: The perfect situation where employees are
highly motivated and have fewer complaints.
2.High Hygiene and Low Motivation: Employees have fewer complaints but are
not highly motivated. The job is viewed as a pay check.
3.Low Hygiene and High Motivation: Employees are motivated but have a lot of
complaints. A situation where the job is exciting and challenging but salaries and
work conditions are not up to standard or par.
4.Low Hygiene + Low Motivation: Employees are not motivated and have many
complaints.
Limitations of the Theory

•The theory applies to white collar workers only.

•The most common criticism in this theory is that happy and satisfied workers produce more,
which might not be the case. For example, if playing a better game of badminton is the means
chosen to satisfy one’s need for recognition, then one will find ways to play and think about
badminton more often, perhaps resulting in a lower output on the job due to a lower amount of
focus.
•There is no objective way to measure employee satisfaction in this theory.
Implications of Two-Factor Theory

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

Psychologist David McClelland advocated the Need theory, also popular as

Three Needs Theory. This motivational theory states that the needs
for achievement, power, and affiliation significantly influence the behavior of
an individual, which is useful to understand from a managerial context.

This theory can be considered an extension of Maslow’s hierarchy of needs. As

Per McClelland, every individual has these three types of motivational needs
irrespective of their demography, culture, or wealth. These motivation types are
driven by real-life experiences and the views of their ethos.
1. Need For Achievement
The need for achievement as the name itself suggests is the urge to achieve something in
what you do.
It is the need that drives a person to work and even struggle for the objective that he
wants to achieve.
People who possess high achievement needs are people who always work to excel by
particularly avoiding low reward low-risk situations and difficult to achieve high-risk
situations.
Such people avoid low-risk situations because of the lack of a real challenge and their
understanding that such achievement is not genuine.
They also avoid high-risk situations because they perceive and understand it to be more
about luck and chance and not about one’s own effort.
These people find innovative clever ways to achieve goals and consider their
achievement a better reward than financial ones.
2. Need For Power
The need for power is the desire within a person to hold control and authority over
another person and influence and change their decision in accordance with his own
needs or desires.
The need to enhance their self-esteem and reputation drives these people and they desire
their views and ideas to be accepted and implemented over the views and ideas over
others.
These people are strong leaders and can be best suited to leading positions.

The individuals motivated by the need for power have a desire to control and influence
others. Competition motivates them and they enjoy winning arguments.
Status and recognition is something they aspire for and do not like being on the losing
side.
They are self-disciplined and expect the same from their peers and teams.
3. Need For Affiliation

The need for affiliation is the urge of a person to have interpersonal and social
relationships with others or a particular set of people.
They seek to work in groups by creating friendly and lasting relationships and have
the urge to be liked by others. They tend to like collaborating with others to
competing with them and usually avoids high-risk situations and uncertainty.
The individuals motivated by the need for affiliation prefer being part of a group.
They like spending their time socializing and maintaining relationships and possess a
strong desire to be loved and accepted.
These individuals stick to basics and play by the books without feeling a need to
change things, primarily due to a fear of being rejected.
Self-Efficacy Theory
Self-efficacy is an individual's belief in their capacity to act in the ways necessary to reach
specific goals. The concept was originally proposed by the psychologist Albert Bandura.
Self-efficacy affects every area of human endeavor. By determining the beliefs a person holds
regarding their power to affect situations, self-efficacy strongly influences both the power a
person actually has to face challenges competently and the choices a person is most likely to
make.
A person with high self-efficacy views challenges as things that are supposed to be mastered
rather than threats to avoid. These people are able to recover from failure faster and are more
likely to attribute failure to a lack of effort. They approach threatening situations with the
belief that they can control them. These things have been linked to lower levels of stress and a
lower vulnerability to depression.
In contrast, people with a low sense of self-efficacy view difficult tasks as personal threats
and shy away from them. Difficult tasks lead them to look at the skills they lack rather than
the ones they have. It is easy for them to lose faith in their own abilities after a failure. Low
self-efficacy can be linked to higher levels of stress and depression.
Self-determination theory (SDT)
SDT is a macro theory of human motivation and personality that concerns people's
innate growth tendencies and innate psychological needs. It pertains to
the motivation behind people's choices in the absence of external influences and
distractions. SDT focuses on the degree to which human behavior is self-motivated and
self-determined.
Intrinsic motivation refers to initiating an activity because it is interesting and satisfying
in itself to do so, as opposed to doing an activity for the purpose of obtaining an external
goal (extrinsic motivation).
A classification of motivations has been described based on the degree to which they
are internalized.
Internalization refers to the active attempt to transform an extrinsic motive into
personally endorsed values and thus adapt behavioral principles that were originally
external.
Vroom’s expectancy theory
Victor Harold Vroom created the Expectancy Theory of Motivation in 1964. His study of
psychology has shed light on how people behave in the workplace, particularly when it comes to
motivation, leadership and decision-making.
It works on the assumption that people will choose to maximise pleasure and minimise pain. This
means that people will behave in a way that results in the best outcome or reward.
The theory is dependent on the idea that the more an employee values the outcome, the more
motivated they will be to achieve it. The more effort they put in to succeed, the more certain they
are of getting that satisfying reward.
To make the connection between motivation, effort and performance, Expectancy Theory has
three variables: Expectancy, Instrumentality and Valence.
Expectancy (E)
If an employee puts in the effort, they expect a certain result. If they do not get that result, they
will not be motivated to make the effort again and so will not be satisfied with the outcome.

Instrumentality (I)
Your employee might make the effort and get the expected result but if they do not believe that
the result is instrumental in getting the reward, they will not be motivated. And so the outcome
is not achieved and your employee is not satisfied.
It is important to note though, that the reward might not always be what the employee expected
at first.
For example, if they learn new skills in an effort to earn a promotion but that employee is not
rewarded with the position they want, they will still have those skills which might result in them
getting promoted in the future or recruited for a more senior role in another company.
Valence (V)
Valence is how much the outcome is valued, if at all. The more an employee values a certain
reward, the more satisfied they will be with their efforts.
A reward doesn’t have to be a grand gesture, it just has to be meaningful to the employee –
whether that’s a bonus, extra time off or simply a bit of recognition.
It’s important to make it clear to your employee that their effort will have a satisfying outcome or
reward that they value. This establishes trust and paves the way for the rest of the chain of
motivation to succeed.
So, the chain (or equation) of Vroom’s Expectancy Theory is as follows:
Motivational Force (MF) = Expectancy (E) x Instrumentality (I) x Valence (V)
If either E, I or V are zero, then the equation fails, and this indicates that motivation is low or
non-existent.
 Equity Theory of Motivation
The equity theory of motivation describes the relationship between the employee’s perception of how
fairly is he being treated and how hard he is motivated to work. J. Stacy Adams developed equity theory.
This theory show-
• Inputs: Inputs include all the rich and diverse elements that employees believe they bring or contribute
to the job – their education, experience, effort, loyalty, commitment.
• Outcomes: Outcomes are rewards they perceive they get from their jobs and employers’ outcomes
include- direct pay and bonuses, fringe benefit, job security, social rewards and psychological.
• Overrewarded: if employees feel over-rewarded equity theory predicts then they will feel an imbalance
in their relationship with their employee and seek to restore that balance.
• Equity: if employees perceive equity then they will be motivated to continue to contribute act about the
same level.
• Unrewarded: unrewarded who feel they have been unrewarded and seek to reduce their feeling inequity
through the same types of strategies but the same of this specific action is now reverse.
This theory is based on the following two assumptions about human behavior:
1.Individuals make contributions (inputs) for which they expect certain outcomes (rewards).
Inputs include such things as the person’s past training and experience, special knowledge,
personal characteristics, etc. Outcomes include pay, recognition, promotion, prestige, fringe
benefits, etc.
2.Individuals decide whether or not a particular exchange is satisfactory, by comparing their
inputs and outcomes to those of others, in the form of a ratio. Equity exists when an individual
concludes that his/her own outcome/input ratio is equal to that of other people.
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.
Organizational Behaviour Modification
Modern behaviorists lay great emphasis on operant conditioning for molding behaviour
of individuals and motivating them. Behaviour modification, popularly known as OB
MOD makes use of various reinforcements to influence the behaviour of individuals. OB
Mod is derived and developed from the work of B.F. Skinner. This technique helps the
managers in modifying or eliminating undesirable behaviour and replacing it with
behaviour that is more compatible with goal attainment.
OB Mod in simple words can be defined as a technique for modifying behaviour of the
organisational members so that they are engaged in desirable behaviour and replacing it
with undesirable behaviour.
It can be used for motivating the employees as well as for enhancing organisational
effectiveness.
There can be two contingencies of behaviour:
(i) The Antecedents. These are the events preceding the behaviour.
(ii) The consequences i.e. the events that follow a particular behaviour.
Both these variables put together form the A-B-C model.
The main aim of this model is to change Behaviour by managing its
antecedents and consequences as is shown in the following diagram:
Perception: Definition, Importance, Factors,
Perceptual Process, Errors
According to B. V. H. Gilmer, “Perception is the process of becoming aware of situations, of
adding meaningful associations to sensations.”
Uday Pareek said perception can be defined as “the process of receiving, selecting, organizing,
interpreting, checking, and reacting to sensory stimuli or data.”
According to S. P. Robbins, perception can be defined as “the process by which individuals
organize and interpret their sensory impressions to give meaning to their environments.”
Importance of Perception
It is the process by which an organism detects and interprets information from the external world
by means of the sensory receptors and involves both the recognition of environmental stimuli and
actions in response to these stimuli.
1.Perception is very important in understanding human behavior because every person perceives
the world and approaches life problems differently.
2.If people behave based on their perception, we can predict their behavior in the changed
circumstances by understanding their present perception of the environment.
3.With the help of perception, the needs of various people can be determined .
4.Perception is very important for the manager who wants to avoid making errors when dealing
with people and events in the work setting. In order to deal with subordinates effectively,
managers must understand their perceptions properly.
5.Perception builds character (not necessarily good or bad character) that defines different roles
individuals fall into the clown, the hypocrite, the self-righteous, the victim, etc.
6.It is vitally important if we want to get along with others to try to see things from their
perspective.
Perceptual Process

Perceptual process are the different stages of perception we go through. The different stages are −
•Receiving
•Selecting
•Organizing
•Interpreting
 Receiving
Receiving is the first and most important stage in the process of perception. It is the initial stage in which a
person collects all information and receives the information through the sense organs.
Selecting
Selecting is the second stage in the process. Here a person doesn’t receive the data randomly but selectively.
A person selects some information out of all in accordance with his interest or needs. The selection of data
is dominated by various external and internal factors.
• External factors − The factors that influence the perception of an individual externally are intensity, size,
contrast, movement, repetition, familiarity, and novelty.
• Internal factors − The factors that influence the perception of an individual internally are psychological
requirements, learning, background, experience, self-acceptance, and interest.
Organizing
Keeping things in order or say in a synchronized way is organizing. In order to make sense of the
data received, it is important to organize them.
We can organize the data by −
•Grouping them on the basis of their similarity, proximity, closure, continuity.
•Establishing a figure ground is the basic process in perception. Here by figure we mean what is
kept as main focus and by ground we mean background stimuli, which are not given attention.
•Perceptual constancy that is the tendency to stabilize perception so that contextual changes don’t
affect them.
Interpreting
Finally, we have the process of interpreting which means forming an idea about a particular
object depending upon the need or interest. Interpretation means that the information we have
sensed and organized, is finally given a meaning by turning it into something that can be
categorized. It includes stereotyping, halo effect etc.
Errors in Perception

Many times the prejudices in the individual, time of perception, unfavorable background, lack of
clarity of stimulus, confusion, conflict in mind, and other factors are responsible for errors in
perception.
There are some errors in perception;
•Illusion.
•Hallucination.
•Halo Effect.
•Stereotyping.
•Selective Perception.
•Similarity.
Illusion
The illusion is a false perception. Here the person will mistake a stimulus and
perceive it wrongly.
For example, in the dark, a rope is mistaken for a snake or vice versa. The voice
of an unknown person is mistaken as a friend’s voice. A person standing at a
distance who is not known may be perceived as a known person.
Hallucination
Sometimes we come across instances where the individual perceives some
stimulus, even when it is not present.
This phenomenon is known as a hallucination. The person may see an object,
person, etc. or he may listen to some voice though there are no objects and
sounds in reality.
Selective Perception
Selective perception is when people selectively interpret what they see on the basis
of their interests, background, experience, and attitudes.
It means any characteristics that make a person, object, or event stand out will
increase the probability that it will be perceived.
Because it is impossible for us to assimilate everything we see, only certain stimuli
can be taken in.
Halo Effect
The individual is evaluated on the basis of perceived positive quality, feature, or
trait. A halo effect operates when we draw a general impression about an
individual based on a single characteristic, such as intelligence, sociability, or
appearance.
In other words, this is the tendency to rate a man uniformly high or low in other
traits if he is extraordinarily high or low in one particular trait: If a worker has few
absences, his supervisor might give him a high rating in all other areas of work.
Managerial and Behavioral Application
of Perception
Managerial perception, or perception management, is a process in which you can
learn about the ways other people interpret your actions and behaviors within a
professional setting. Understanding this information can help you make choices
that influence the ways others perceive you. This can help you get ahead in a
position by demonstrating your skills, abilities and strengths. If you're a manager
or hold another supervisory position, you can also use managerial perception to
understand and manage how employees perceive the company and its work.
For example, if you'd like to pursue a leadership position, you can use perception
management to understand if your supervisors or coworkers consider you to be a
strong leader. If you believe there are opportunities for improvement in this area,
you can change your behavior to demonstrate your qualifications. In this way, you
can manage their perceptions of you and your skills. Some ways to understand
perceptions include distributing surveys, paying close attention to the ways that
others react to you or asking others for their opinions.
Factors that influence managerial
perception
Here are some of the factors that can influence the ways others perceive
you or the company:

Behaviors
One major factor that can determine how someone perceives you is your
behavior. In many cases, coworkers consider your behavior to be an
outward extension of your personality and beliefs. If they see you behave a
certain way, they may be more likely to believe that you are that type of
person. For example, if your coworkers often see you helping others within
the organization, they may perceive you as a helpful, generous person.
Responses

Another major aspect of perception is the way that you respond to stimuli
within your position. This can include verbal, behavioral or emotional
responses. It can also include the ways that you respond to both positive
and negative situations. For example, if you want others to perceive you as
calm, you can try to respond in a calm and collected manner even when
you're upset or unhappy.
Interactions
Your interactions with others can also influence the ways others perceive
you. While your behavior and responses can be a part of these interactions,
it can also be important to understand how you relate to others and treat
them on a daily basis. For example, you can create a perception of yourself
as being respectful by listening carefully to others when you interact with
them, making eye contact and politely shaking hands after the interaction.
Management style
Especially if you hold a leadership role within an organization, the ways others
perceive you can depend on the ways that you manage those who work under you.
This can involve other factors such as the way you interact with or respond to those
who you manage. It can also depend on your ability to be fair, provide quality
direction and offer strong but supportive leadership.
Work environment
If you're interested in managing the ways employees perceive their workplace, one
factor to consider is the work environment. The way an office looks and runs can
influence employees' ideas about the type of place it is. For example, if an office is
clean and uncluttered, employees may perceive the company as being organized
and competent. You can similarly use these principles to understand how others
may perceive you based on your own personal work environment.
Policies
Another way to influence the ways that employees perceive you and the company
is to understand the way they perceive company policies, especially ones that
you've created or implemented. If, for example, a company offers training and
continuing education opportunities for employees, they may perceive the company
as caring about them and their education.