UNIT III HBO
UNIT III HBO
figure Motive B is the highest strength need, and therefore it is this need that determines
behaviour.
TYPES OF MOTIVATION
Motivation is what makes us do things. It's really important if you want to get something done,
like finishing a project or reaching a goal. Sometimes, the push to act comes from wanting to feel
good about ourselves or enjoying what we do. Other times, it might be because we want to get a
reward, like money or praise, or to avoid something we don't like. It helps us keep going, even
when things get tough, and makes sure we stick with our tasks until we're done. Motivation
affects everything we do, from the big goals we chase to the small choices we make every day. It
could be wanting to do well at work, living healthier, or helping others. Motivation keeps us
Theories of Motivation
Definition: There are several Theories of Motivation that are developed to explain the concept
of “Motivation”. The motivation is a drive that forces an individual to work in a certain way. It is
the energy that pushes us to work hard to accomplish the goals, even if the conditions are not
going our way.
With the establishment of human organizations, people tried to find out the answer to, what
motivates an employee in the organization the most. This gave birth to several content theories
and process theories of motivation.
The content theories deal with “what” motivates people, whereas the process theories deal
with, “How” motivation occurs. Thus, theories of motivation can be broadly classified as:
i. Physiological needs: These refer to physical or biological needs meant for survival and
maintenance of life. These include food, clothing, shelter, air, sleep and other basic needs.
ii. Safety needs: Once the physiological needs are satisfied a person aspires for safety needs.
These includes security for life, job, protection from environment, animals etc. As a manager,
you can account for the safety needs of your employees by providing the safe and secure
working conditions, proper compensation (such as a salary) and job security, which is especially
important in a bad economy.
iii. Social needs: After the first two needs are satisfied, social needs become important in the
need hierarchy. Since man is a social being , he has a need to belong and to be accepted by
various groups. It includes need for acceptance, need for belonging, need for love, affection,
friendship etc. As a manager, you can account for the social needs of your employees by making
sure each of your employees know one another, encouraging cooperative teamwork, being an
accessible and kind supervisor and promoting a good work-life balance.
iv. Esteem and status needs: these needs are concerned with self-respect, self-confidence, a
feeling of personal worth, feeling of being unique, and recognition. As a manager, you can
account for the esteem needs of your employees by offering praise and recognition when the
employee does well, and offering promotions and additional responsibility to reflect your belief
that they are a valued employee.
v. Self-actualisation needs: Self-actualisation is the need to maximize one’s potential whatever
it may be. These needs arise only after the four categories of need are fulfilled. These needs are
more like mission, lifetime aspiration, e.g., leprosy eradication mission, mission of Mahatma
Gandhi to liberate India from British Rule.
Maslow’s needs theory has received wide recognition, particularly among practicing managers.
This can be attributed to the theory’s intuitive logic and ease of understanding. Following are
some problems which are not solved by this theory:
a) This theory is common with many other theories also, that there is lack of direct cause-effect
relationship between need and behaviour. Thus a particular need may cause behaviour in
different ways in different needs.
b) There is another problem in applying the theory into practice. A person tries for his higher-
level need when his lower-order need is reasonably satisfied. What is this reasonable level is a
question of subjective matter. Thus, the level of satisfaction for particular need may differ from
person to person.
B. Theory X and Theory Y: Douglas McGregor has proposed two models i.e., Theory X and
Theory Y. Under Theory X, managers believe that employees inherently dislike work and must
therefore be directed or even coerced into performing it. In this type of theory, workers generally
shirk work and do not like to work. They avoid responsibility and need to be directed. While
under theory y , manager assume that employees can view work as being as natural as rest or
play and therefore the average person can learn to accept, and even seek responsibility. Good
motivation makes workers readily accept responsibility and self-direction.
ERG Theory recognizes that the importance of the three categories may vary for each individual.
Managers must recognize that an employee has multiple needs, which must be satisfied
simultaneously. According to the ERG theory, if you focus exclusively on one need at a time, this
will not effectively motivate. In addition, the ERG theory acknowledges that if a higher level
need remains unfulfilled, the person may regress towards lower level needs, which appear easier
to satisfy. This is known as: the frustration-regression principle.
F. Vroom Expectancy Theory:
This theory was first proposed by Victor Vroom of the Yale School of Management in 1964.
Expectancy theory says that employees will be motivated to exert a high level of effort when
they believe:
That effort will lead to a good performance appraisal;
That a good appraisal will lead to organizational rewards, such as bonus, a salary increase,
or a promotion; and
That the rewards will satisfy the employees’ personal goals.
Expectancy theory must focus on three things i.e. Efforts (E), Performance (P) and Outcomes (O).
In order to be motivated to act or perform their job, employees must perceive that their efforts (E)
are likely to lead to good performance (P). In other words, effort has to be instrumental to good
performance. Second, people must expect that their performance is clearly linked to certain
outcomes (O). And finally they have to value (V) the outcome they obtain when they perform. If
all these paths and linkages are clear, the person will be motivated. Two other factors that can
affect motivation are ability and role clarity. A person might be highly motivated, but if she does
not have the ability to perform the job or task and a clear understanding of how to direct her
efforts in a manner that is appropriate to her organizational role, then the task might not be
accomplished.
One of the important features of this theory is that it recognizes individual differences in work
motivation and suggests that motivation is a complex process as compared to Maslow’s or
Herzberg’s simplistic models. It also clarifies the relationship between individual and
organizational goals. Further, this theory is difficult to research and apply in practice. This is
evident by the fact that there have been only a few research studies designed specifically to test
the Vroom theory.
G. Equity Theory:
As per this motivation theory, an individual’s motivation level is correlated to his perception of
equity, fairness and justice practiced by the management. Higher is individual’s perception of
fairness, greater is the motivation level and vice versa.The theory states that when a person
compares himself to his co-workers and finds the results to be fair, he will be more motivated. If,
on the other hand, he compares himself to his co-workers and finds the results to be unequal or
“unfair,” he will be less motivated. The essence of the Equity Theory lies in this sense of
motivation through perceived fairness.
A referent group is a selection of people an individual relates to or uses when comparing
themselves to the larger population. If a salesperson compares themselves to the rest of the sales
staff, the referent group is the sales staff.
There are four referent comparisons that an employee can use:
a. Self-inside: An employee’s experiences in a different position inside the employee’s current
organization.
b. Self-outside: An employee’s experiences in a situation or position outside the employee’s
current organization.
c. Other-inside: Another individual or group of individuals inside the employee’s organization.
d. Other-outside: Another individual or group of individual outside the employee’s organization.
There are two assumptions on which the theory works:
a. Individuals make contributions (inputs) for which they expect certain rewards (outcomes).
b. Individuals decide whether or not a particular exchange is satisfactory, by comparing their
inputs and outcomes with those of others and try to rectify any inequality.
Various types of inputs and outcomes of an individual which are as follows:
Inputs: Efforts, Time, Education, Experience, Training, Ideas, Ability
Outcomes: Pay, Promotion, Recognition, Security, Personal Development, Benefits, Friendship
opportunity
Employee might compare themselves to friends, neighbours, co-workers or colleagues in other
organizations or compare their present job with past jobs. Which referent an employee chooses
will be influenced by the information the employee holds about referents as well as by the
attractiveness of the referent. This has led to focusing on moderating variables, such as gender.
Exchange relationship between a person’s inputs/outcomes in relation to those of other persons
may be of three types: overpaid inequity, underpaid inequity and equity.
Overpaid Inequity: In this case, the person perceive that his outcomes are more as compared to
his inputs in relation to others. In this case, the person experiences satisfaction.
The impact of inequity on the person is as follows:
i. Perceived inequity creates tension in the person.
ii. The amount of tension is proportional to the magnitude of inequity.
iii. The tension created in the person will motivate him to reduce it.
iv. The strength of the motivation to reduce inequity is proportional to the perceived inequity.
Elements of Sound Motivation System:
1. Adequate Motivation: The motivation system should be adequate covering the entire
workforce in the organisation and it should also cover entire activities of the workforce.
Sometimes, the presence of a motivational factor fails to produce any effective result,
particularly when its amount is too small.
2. Analysis of Motives: A good motivation system also attempts at analysing the factors which
motivate the employees in the prevailing organisational environment.
3. Simplicity in Motivation System: The system should be simple both in terms of its
understanding by the employees and its applicability in the organization.
4. Uneven Motivation: In an organization, all the employees are not of same type. They differ in
education, attitude, ambition, etc. Thus, more educated, ambitious persons can be motivated up
to very high level, while others cannot be.
Lyman Porter and Edward Lawler came up with a comprehensive theory of motivation,
combining the various aspects. Porter and Lawler's model is a more complete model of
motivation. This model has been practically applied also in their study of managers. This is a
multivariate model which explains the relationship that exists between job attitudes and job
performance. This model is based on four basic assumptions about human behaviour :
(i) As mentioned above, it is a multivariate model. According to this model, individual behaviour
is determined by a combination of factors in the individual and in the environment.
(ii) Individuals are assumed to be rational human beings who make conscious decisions about
their behaviour in the organizations.
(iv) On the basis of their expectations, individuals decide between alternative behaviours and
such decided behaviour will read to a desired outcome.
The various elements of this model are explained in the Fig. 5.11.
In fact, Porter and Lawler's theory is an improvement over Vroom's expectancy theory. They say
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 multivariate model to explain the
complex relationship that exists between satisfaction and performance. What is the main point in
Porter and Lawler's model is that effort or motivation does not lead directly to performance. It is,
in fact, medicated by abilities and traits and by role perceptions.
The Various Elements of Porter and Lawler Model
1. Effort,
2. Performance and
3. Satisfaction.
Effort : Effort refers to the amount of energy an employee exerts on a given task. How much
effort an employee will put in a task is determined by two factors: (i) value of reward and (ii)
perception of effort-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
role perception of the employee. Thus, if an employee possesses less ability and/or makes wrong
role perception, his/her performance may be low in spite of his great efforts.
Satisfaction : Performance leads to satisfaction. The level of satisfaction depends upon the
amount of rewards achieved. 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. Examples of intrinsic rewards are
such as a sense of accomplishment and self-actualization. Extrinsic rewards 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 their reward system and structure. The effort-performance-reward-satisfaction
should be made integral to the entire system of managing men in organizations.
Integrating motivational theories
Integrating various motivation theories provides a more holistic understanding of what drives
individuals, encompassing both internal factors like needs and external factors like rewards and
goals.
On the other hand, intrinsic motivation comes from within. There are internal drives that inspire
us to behave in certain ways, including our core values, our interests, and our personal sense of
morality.
It might seem like intrinsic motivation and extrinsic motivation are diametrically opposed—with
intrinsic driving behavior in keeping with our “ideal self” and extrinsic leading us to conform
with the standards of others—but there is another important distinction in the types of motivation.
SDT differentiates between autonomous motivation and controlled motivation (Ryan & Deci,
2008).
Autonomous motivation includes motivation that comes from internal sources and includes
motivation from extrinsic sources for individuals who identify with an activity’s value and how it
aligns with their sense of self. Controlled motivation is comprised of external regulation—a type
of motivation where an individual acts out of the desire for external rewards or fear of
punishment.
On the other hand, introjected regulation is motivation from “partially internalized activities and
values” such as avoiding shame, seeking approval, and protecting the ego.
When an individual is driven by autonomous motivation, they may feel self-directed and
autonomous; when the individual is driven by controlled motivation, they may feel pressure to
behave in a certain way, and thus, experience little to no autonomy (Ryan & Deci, 2008).
One step to the right of amotivation is external regulation, in which motivation is exclusively
external and regulated by compliance, conformity, and external rewards and punishments.
The next level of extrinsic motivation is termed introjected regulation, in which the motivation is
somewhat external and is driven by self-control, efforts to protect the ego, and internal rewards
and punishments.
In identified regulation, the motivation is somewhat internal and based on conscious values and
that which is personally important to the individual.
The final step of extrinsic motivation is integrated regulation, in which intrinsic sources and the
desire to be self-aware are guiding an individual’s behavior.
The right end of the continuum shows an individual entirely motivated by intrinsic sources.
In intrinsic regulation, the individual is self-motivated and self-determined, and driven by
interest, enjoyment, and the satisfaction inherent in the behavior or activity he or she is engaging
in.
Although self-determination is generally the goal for individuals, we can’t help but be motivated
by external sources—and that’s not necessarily a bad thing. Both intrinsic and extrinsic
motivation are highly influential determinants of our behavior, and both drive us to meet the
three basic needs identified by the SDT model:
1. Autonomy: people have a need to feel that they are the masters of their own destiny and
that they have at least some control over their lives; most importantly, people have a need
to feel that they are in control of their own behavior.
2. Competence: another need concerns our achievements, knowledge, and skills; people
have a need to build their competence and develop mastery over tasks that are important
to them.
3. Relatedness (also called Connection): people need to have a sense of belonging and
connectedness with others; each of us needs other people to some degree (Deci & Ryan,
2008).
According to the developers of SDT, Deci and Richard M. Ryan, individual differences in
personality result from the varying degrees to which each need has been satisfied—or thwarted
(2008). The two main aspects on which individuals differ include causality orientations and
aspirations or life goals.
Causality orientations refer to how people adapt and orient themselves to their environment and
their degree of self-determination in general, across many different contexts. The three causality
orientations are:
Aspirations or life goals are what people use to guide their own behavior. They generally fall
into one of the two categories of motivation mentioned earlier: intrinsic or extrinsic. Deci and
Ryan provide affiliation, generativity, and personal development as examples of intrinsic life
goals, while they list wealth, fame, and attractiveness as examples of extrinsic life goals (2008).
Aspirations and life goals drive us, but they are considered learned desires instead of basic needs
like autonomy, competence, and relatedness.
SDT presents two sub-theories for a more nuanced understanding of intrinsic and extrinsic
motivation. These sub-theories are Cognitive Evaluation Theory (CET) and Organismic
Integration Theory (OIT) which help explain intrinsic motivation with regards to its social
factors and the various degrees of contextual factors that influence extrinsic motivation (Deci &
Ryan, 2000).
Edwin Locke (1968) published his groundbreaking Goal Setting Theory in ‘Toward a Theory of
Task Motivation and Incentive’.
Locke’s primary revelation was around the power of setting specific and measurable goals,
rather than keeping outcomes general. With his theory he demonstrated how targets like
“increase sales by 20%”etc are much more effective than vague direction such as “complete your
work to a higher standard”.
1.Clarity.
A goal must be specific and clear. Goals should be clear, well-defined, and easily measurable,
leaving no room for ambiguity. Specific goals provide a clear direction for the individual to
follow.
2.Challenge.
An easy or tedious goal is demotivating.
But keep a realistic balance: don’t expect anyone on your team to spin straw into gold.
Goals that are moderately difficult but attainable can stimulate individuals to put in more effort
and perform better than if the goals were too easy or too difficult.
3.Commitment.
Your employees have to understand and buy in to the goal from the outset.
Individuals must be committed to achieving the goals they set. Commitment ensures that they are
willing to invest the necessary time and effort to achieve their objectives.
4.Feedback.
Provide regular feedback throughout the whole process. This helps to keep the goal on track.
Regular feedback on progress toward the goal is essential. Feedback helps individuals monitor
their performance, make necessary adjustments, and stay on track.
5.Task complexity.
Think about realistic timescales, and break down the process into sub-goals with regular reviews.
The level of complexity of a task can influence the effectiveness of goal setting. For simple and
routine tasks, specific goals work well, but for complex and creative tasks, a more flexible
approach may be necessary.
Locke and Latham’s (1990) found in a comprehensive meta-analysis of more than 35 years of
research on goal setting, that a strong positive relationship between specific, challenging goals
and performance. The study concluded that setting specific and difficult goals led to higher
levels of task performance compared to easy or no goals.
Reinforcement theory of motivation is based law of effect, where behaviors are selected by their
consequences and overlook the individual’s internal state. ▸ iedunote.com/reinforcement-theory
Reinforcement theory of motivation was proposed by B.F. Skinner and his associates. It states
that individual’s behavior is a function of its consequences.
It is based on “law of effect”-this law of effect is the idea that behaviors are selected by their
consequences, i.e., individual’s behavior with positive consequences tends to be repeated, but
individual’s behavior with negative consequences tends not to be repeated.
Reinforcement theory of motivation overlooks the internal state of the 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 behavior.
However, it does not focus on the causes of individual’s behavior. ▸
iedunote.com/reinforcement-theory
The managers use the following methods for controlling the behavior of the employees;
Positive Reinforcement
Positive reinforcement implies giving a positive response when an individual shows positive and
required behavior.
For example – immediately praising an employee for coming early for the job. This will increase
the probability of outstanding behavior occurring again.
The reward is a positive reinforcement, but not necessarily. ▸ iedunote.com/reinforcement-
theory
If and only if the employees’ behavior improves, the reward can say to be a
positive reinforcement. Positive reinforcement stimulates occurrence of a behavior. It must be
noted that more spontaneous is the giving of reward, the greater reinforcement value it has.
Negative Reinforcement
Negative reinforcement implies rewarding an employee by removing negative/undesirable
consequences. Both positive and negative reinforcement can be used for increasing desirable /
required behavior.
Punishment
Punishment reinforcement implies removing positive consequences so as to lower the probability
of repeating the undesirable behavior in future. In other words, punishment means applying
undesirable consequence for showing undesirable behavior.
For instance; suspending an employee for breaking the organizational rules, punishment can be
equalized by positive reinforcement from an alternative source.
Extinction
Extinction reinforcement implies the absence of reinforcements. In other words, extinction
implies lowering the probability of an undesired behavior by removing reward for that kind of
behavior.
For instance – if an employee no longer receives praise and admiration for his good work, he
may feel that his behavior is generating no fruitful consequence. Extinction may unintentionally
lower desirable behavior.
Implications of Reinforcement Theory
Reinforcement theory explains in detail how an individual learns behavior.
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 correctly. They must tell the employees
how they can achieve positive reinforcement.
The reinforcement theory suggests that managers should try to structure the contingencies of
rewards and punishments on the job in such a way that the consequences of effective job
behavior are positive while the consequences of ineffective work behavior are negative o:
unpleasant.
The focus of this approach is upon changing or modifying the behavior of people on the job.
That is why it is also regarded as organizational behavior modification.
The basic notion underlying reinforcement theory is the concept of reinforcement itself. An event
is said to be reinforcing if the event following some behavior makes the behavior more likely to
occur again in the future. ▸ iedunote.com/reinforcement-theory
Self-Efficacy Theory
Self-Efficacy is the belief that you are capable of achieving a specific goal or performing a
particular task. Self-efficacy is task-specific. For example, if your boss asked you to manage a
simple project, then you might feel confident in your ability to complete this task.
Self-efficacy isn’t general. It’s not about being good at your job in a broad sense or believing
you’re a good manager or believing you’re intelligent. These are more general beliefs.
Self-Efficacy Theory of Motivation
The higher your self-efficacy, the more you will believe you are capable of achieving a task or
goal. Conversely, the lower your-self-efficacy, the less you will believe you are capable of
performing a task.
Albert Bandura developed the Self-Efficacy Theory of Motivation. Bandura, born 1925, is a
Canadian psychologist who described self-efficacy in detail in his 1997 book, Self-Efficacy: The
Exercise of Control.
How We Determine Our Self-Efficacy
We use four factors to determine our self-efficacy and, in turn, our performance for a task.
1. Experience
Experience refers to your past experience of completing similar tasks. This is the most important
factor in self-efficacy.
If you performed a similar task well in the past, then you are more likely to be confident that you
can complete similar tasks well in the future.
2. Vicarious Experience
You can develop self-efficacy vicariously by watching other people perform a task.
If you watch someone similar to you perform a task and succeed at that task, then your self-
efficacy will increase. Conversely, if you watch someone similar to you perform a task and fail,
this can negatively affect your self-efficacy.
3. Social Persuasion
You can increase your self-efficacy if others give you encouragement that you can perform a task.
Likewise, your self-efficacy will decrease if you receive discouraging or disparaging remarks
about your ability to perform a task.
4. Physiological Feedback
When confronted with a task, you experience a sensation from your body. How you interpret
these signals will impact your self-efficacy.
How do you interpret this feeling? If you interpret this feeling as being excited to get on stage,
this will increase your self-efficacy. If you experience these butterflies as stage-fright or anxiety,
this will decrease your self-efficacy for this and similar tasks.
In general, the more at ease you are with a particular type of task, the higher your self-efficacy
will be.
Using the Self-Efficacy Theory of Motivation
To make use of the Self-Efficacy Theory of Motivation, we need ways to build our self-efficacy.
There are four ways in which you can build self-efficacy.
If you’re a manager, you can also use these approaches to help build a team member’s self-
efficacy, which will boost not only their competence but also their motivation.
1. Master Tasks
To begin increasing your self-efficacy for a particular task, start by setting realistic but
challenging goals based on where you are right now. When you succeed with that goal, build on
it by setting a slightly more challenging goal.
Over time these accomplishments will grow to build you a high self-efficacy for this type of task.
Here is an example from the workplace. Suppose you are terrified of public speaking. You could
begin building your self-efficacy by merely attending a public speaking meeting in a safe
environment outside the workplace, such as Toastmasters.
Over time you might start to speak at these events, and your self-efficacy will grow further. Once
your self-efficacy is high enough, you’ll eventually feel confident enough (your self-efficacy will
be high) that you can transfer your newfound speaking prowess back into the more pressurized
environment of the workplace.
If you experience a setback at any point, reset your goal based on where you are now and repeat
the process. Resetting your goals and then continuing to progress after experiencing a setback
will help you build resilience.
2. Model Behavior
Find role models to observe who have high self-efficacy in the area or skill where you are
looking to build self-efficacy.
These role models can be a powerful motivating force especially if they have also built their self-
efficacy from a similar position as yours is now.
If you can’t find or don’t want to find role models from the workplace, then the Internet is a great
place to seek out role models.
3. Social Persuasion
While modeling behavior is about observing others who have achieved high self-efficacy in a
particular area and using this as motivation, social persuasion is about finding mentors and
coaches.
These are people who will work directly with you to build your self-efficacy step by step. As
they have themselves “been there and done that,” they can help lead you to high self-efficacy
more quickly than you could achieve under your own initiative.
4. Improve Your Emotional State
We all interpret our past experiences and the physical sensations coming from our bodies.
Sometimes we can misinterpret this information.
Suppose we get nervous before giving a presentation. This feeling is perfectly natural. But
suppose we believe that we’re bad at performing presentations. The feeling is so strong it affects
our performance in our presentation. This is obviously bad.
Because of our poor performance in our last presentation, we further believe in our minds that
we’re no good at presentations. Thus we get even more nervous the next time we have to do one.
Disadvantages
Most people can benefit from increasing their self-efficacy around tasks necessary to their jobs at
which they are not confident or competent. However, sometimes having a high self-efficacy has
disadvantages.
The Self-Efficacy Theory of Motivation is a way to explain motivation. Studies have shown that
self-efficacy is a strong predictor of high-performance. By increasing our self-efficacy, or that of
our teams, we can raise our confidence and performance.
Management by objectives (MBO), as the name suggests, is a method of enhancing how the
company goals and strategies are understood by the managers and the employees.
This gap between the company’s work strategy and the employee’s understanding of it leads to a
state of inefficient work output and lack of dedication. Management by Objective appears to
be the best method to resolve this issue.
In this article, we will explore the meaning of MBO, the steps involved in processing MBO and
its advantages.
What is MBO?
MBO stands for Management by Objectives.
MBO is also known as Management by Planning (MBP). The book ‘Practice of Management,
published in 1954 was the first time when the term was introduced to the world by Peter F.
Drucker and gained popularity over the years.
Management by objectives (MBO) is a strategy based model designed to enhance the overall
productivity and performance of a company. In this method, the company defines a clear set of
objectives that are addressed and adhered to by both the management and the employees.
MBO is all about planning, constructing and executing a particular set of actions dedicated to
certain goals. These actions are coordinated to the working teams with complete transparency to
prevent confusion and errors. A time frame is assigned to each action plan and regular
performance assessment infuses discipline and punctuality in the workspace.
Another benefit of MBO is that it serves as a base for contemplating bonuses, increments,
appraisals, promotions or demotions.
S- Specific
M- Measurable
A- Achievable or Attainable
R- Relevant
T- Time-Bound or Time-limited
These are factors that must be kept in mind while formulating management objectives for a
business venture. The SMART strategy will guide you in formulating a plan that aligns
individual goals with the company goals.
Management by Objectives Process
MBO is an essential procedure for the benefit of an enterprise. In order to enjoy its advantages, it
is important to implement it in a correct manner.
There are 5 major steps in the MBO process. These steps are-
In the first step of MBO processing, Management by Objectives concentrates on either setting,
revising or amending organizational objectives. The objectives being assessed require to be
measurable and attainable. The most important factor to be considered is the relevance of the
goal to the company’s ultimate mission.
The second step in MBO processing is to align the organizational objectives of the company
with that of the employees. The SMART strategy will guide you through this step.
Step three is all about assessing the employees and giving them the liberty to plan their
individual objectives. So far the administration did all work for them, now is the time to give
them the control. This acquired ownership will give them a sense of responsibility, dedication
and motivation to achieve their goals which will ultimately benefit the organization.
In the fourth step, the emphasis is on regulating and monitoring the work progress of employees.
It is aimed at ensuring that the mechanism is going smooth and the work output is on track with
the formulated work structure and deadlines.
Management by Objectives (MBO) can be exercised in many ways. It is all about deriving
specific goals and leading the company on the path of success. There are many renowned
companies like Google, Puma and Apple, that use MBO to improve their work output and
performance.
Management by Objectives is a functional strategy and does not interfere in the execution
processes of the set goals. It is a result-oriented strategy and focuses mainly on the result.
The manager plays an important role in deducing the strategic objectives of the company. These
goals are all based on an estimation of conceivable goals within a specific time frame. This
highlights the role of a manager as an essential component in the successful implementation and
output of MBO.
Management of a company is said to be efficient when the work output of their employees is
higher than the capital and resources that are invested in the input. In the absence of proper
management, this efficiency suffers a backlash.
Companies that work with MBO as a part of their strategic planning, witness better productivity
as their employees have a better understanding of their goals and a better work structure to
follow.
EFFECTIVE PLANNING
Planning aims to create a framework that guides the company in initiating every important step
towards strengthening and widening its business. Good planning automatically shows its impact
on the overall performance of the enterprise.
With the help of MBO, planning becomes easy and presents a clearer picture of instructions,
expectations, and goals to both the company and the employees.
GOAL SETTING
Setting a clear set of goals allows the managers and employees to plan their action strategy
around their primary objectives. This invokes a sense of awareness and allows the employees to
make better decisions after measuring the work assigned to them and the time given to complete
it.
The Management by Objectives strategic model allows goal setting with mutual involvement of
both the management and the employees. It gives everyone a say in the process and allows them
to get a clear picture of the company’s ultimate goal.
Job satisfaction
Job Satisfaction refers to the extent to which employees feel content and fulfilled with their
jobs. It encompasses an individual's overall attitude towards their role and is influenced by
various factors including the nature of the work, the working environment, relationships with
colleagues and supervisors, and compensation.
Job Satisfaction refers to the extent to which employees feel content and fulfilled with their
jobs. High job satisfaction occurs when the expectations, needs, and desires of an employee
align well with what the job provides. However, lack of job satisfaction can lead to
disengagement, decreased productivity, and higher turnover rates. This subjective measure is
crucial not only for the well-being of employees but also for the health of organizations, as it
directly impacts performance and retention. Understanding and enhancing job satisfaction is
vital for employers aiming to maintain a motivated, effective, and stable workforce.
Components of Job Satisfaction
Job Satisfaction comprises of several key components that collectively influence how
employees feel about their jobs. Understanding these components can help organizations better
address the needs and expectations of their workforce:
1. Work: The nature of the work is crucial. Jobs that are interesting, engaging, and provide
variety can lead to higher satisfaction. Employees tend to feel more satisfied when their jobs
entail meaningful tasks, allowing them to use their skills effectively and offering a degree of
autonomy.
2. Compensation: Fair and adequate compensation including salary, bonuses, and benefits
plays a significant role in job satisfaction. Competitive and equitable pay that aligns with
industry standards and rewards employees for their contributions is essential.
3. Job Security: Stability and security at work are vital. Employees who feel that their job is
secure are more likely to be satisfied. Uncertainty about job continuity can significantly impact
employee morale.
4. Advancement Opportunities: Opportunities for professional growth and career
advancement also affect job satisfaction. Employees are more satisfied when they see a clear
path for progression and when they feel supported in their career development efforts.
5. Working Conditions: A safe, healthy, and comfortable working environment is important
for job satisfaction. This includes not only physical conditions but also work hours,
organizational culture, and the work-life balance offered by the employer.
6. Supervision: The quality of leadership and management within an organization is a
significant factor. Effective, fair, and supportive supervisors contribute to higher job
satisfaction. Employees value leaders who provide clear communication, feedback, and
recognition.
7. Coworker Relations: Good relationships with colleagues can enhance job satisfaction. A
supportive, friendly team environment where employees can form positive connections adds to
their job contentment.
8. Recognition and Feedback: Regular acknowledgment of employees' hard work and
achievements, along with constructive feedback, enhances job satisfaction. Recognition
programs and performance evaluations can motivate employees and make them feel valued.
9. Work-Life Balance: Managing the demands of work and personal life is crucial. Employers
who support work-life balance through flexible schedules, remote work options, and sufficient
time off tend to have more satisfied employees.
Factors Affecting Job Satisfaction
Several factors contribute to job satisfaction, influencing how content and motivated
employees feel in their workplace. These factors can vary significantly from one individual to
another, but there are common elements that frequently impact job satisfaction:
1. Work Conditions: The physical and psychological conditions of the workplace play a
crucial role. This includes the safety of the work environment, the tools and resources available
for employees to perform their duties, and the overall comfort and cleanliness of the work
setting.
2. Nature of the Work: Jobs that are intellectually stimulating, offer variety, and provide
opportunities to use skills effectively tend to increase job satisfaction. Employees generally
prefer roles that match their personal interests and skills.
3. Compensation and Benefits: Competitive wages, along with appropriate benefits like
health insurance, retirement plans, and paid leave, are fundamental for employee satisfaction.
Compensation also includes bonuses and other performance-related pay that recognize and
reward employee contributions.
4. Organizational Culture and Values: A positive, inclusive, and ethical culture that aligns
with personal values enhances job satisfaction. Employees feel more satisfied in environments
where there is a strong sense of community and shared purpose.
5. Relationships at Work: Good relationships with colleagues and supervisors can greatly
enhance job satisfaction. Respectful, supportive interactions and a collaborative work
environment are highly valued.
6. Job Security: Stability in employment ensures that employees don’t feel constant stress
about losing their jobs, which can significantly increase job satisfaction.
7. Work-Life Balance: The ability to balance work demands with personal life significantly
affects satisfaction. Flexibility in work schedules, telecommuting options, and policies that
support personal time off contribute to a better work-life balance.
8. Recognition and Rewards: Feeling valued and recognized for one’s work through formal
recognition programs, promotions, and positive feedback can boost job satisfaction.
9. Career Development Opportunities: Opportunities for professional growth, such as
training, education, and advancement prospects, are important. Employees who see a clear path
for career progression are more likely to be satisfied with their jobs.
10. Autonomy and Empowerment: The degree of control and independence, employees have
over their work can significantly affect their job satisfaction. Jobs that allow for decision-
making autonomy and provide empowerment tend to be more satisfying.
Importance of Job Satisfaction
The importance of job satisfaction extends beyond the individual employee to impact the
overall health and effectiveness of an organization. Here are several reasons why job
satisfaction is crucial:
1. Enhanced Productivity: Satisfied employees are typically more productive. When
employees are happy and engaged with their work, they are more likely to put in the effort and
dedication needed to achieve high levels of performance.
2. Reduced Turnover: High job satisfaction is a key factor in retaining employees. Workers
who are content with their jobs are less likely to seek employment elsewhere, reducing the
costs and disruptions associated with high staff turnover.
3. Improved Quality of Work: Job Satisfaction is often linked to a higher quality of work.
Employees who are satisfied are more attentive to detail and take greater pride in their work,
leading to better outcomes and fewer mistakes.
4. Employee Engagement: Satisfied employees are more engaged and committed to their
organization. This engagement can lead to greater loyalty and a willingness to go above and
beyond their regular duties, which benefits the organization as a whole.
5. Attracting Talent: Organizations known for high job satisfaction are more attractive to
potential employees. This reputation can help attract top talent, as prospective employees are
more likely to apply to companies where workers are known to be happy and well-treated.
6. Positive Workplace Environment: High job satisfaction contributes to a more positive,
energetic, and collaborative workplace atmosphere. This positivity can be infectious,
improving morale and reducing conflicts among staff.
Benefits of Employee Job Satisfaction
Employee Job Satisfaction offers a range of benefits that can profoundly impact the
functioning and success of an organization. Here are some key benefits of high job satisfaction
among employees:
1. Increased Productivity: Satisfied employees are generally more productive because they
are motivated to achieve their best and contribute positively to the organization. Their
enthusiasm often translates into higher quality work and better overall performance.
2. Enhanced Employee Retention: High levels of job satisfaction are closely linked to
reduced employee turnover. Employees who are content with their jobs are less likely to leave,
which helps the organization retain valuable talent and reduces the costs associated with hiring
and training new employees.
3. Improved Health and Well-being: Job Satisfaction contributes to better physical and
mental health among employees. This can lead to lower healthcare costs and fewer sick days,
benefiting both the employees and the organization.
4. Positive Organizational Culture: When employees are satisfied with their work, it fosters a
positive work environment. This positivity can boost morale and lead to a more cooperative
and collaborative culture.
5. Lower Levels of Absenteeism: Satisfied employees are less likely to take unnecessary days
off, which helps maintain consistent productivity and operational efficiency.
6. Better Customer Satisfaction: Employees who are happy in their jobs are more likely to
provide excellent customer service, leading to higher customer satisfaction and loyalty. This
can enhance the organization's reputation and lead to increased business opportunities.
7. Attracting Top Talent: Organizations known for high job satisfaction are more attractive to
potential employees. This reputation can help attract highly skilled individuals, thereby
enhancing the talent pool and contributing to innovation and growth.
Tips to Increase Job Satisfaction
Increasing job satisfaction is crucial for any organization aiming to enhance productivity,
reduce turnover, and foster a positive workplace culture. Here are some tips to help increase
job satisfaction among employees:
1. Provide Fair Compensation: Ensure that pay and benefits are competitive and
commensurate with the employees' roles and responsibilities. Regularly review and adjust
compensation to reflect market standards and individual performance.
2. Offer Career Development Opportunities: Facilitate opportunities for employees to grow
professionally through training, workshops, and continued education. Clear paths to
advancement within the company can also increase job satisfaction by giving employees goals
to strive toward.
3. Enhance Work-Life Balance: Implement flexible working hours, remote working options,
and policies that allow employees to better balance their personal and professional lives. This
can reduce burnout and increase overall job satisfaction.
4. Improve Work Conditions: Create a safe, healthy, and pleasant work environment. This
includes everything from ergonomic office furniture to a clean, well-maintained workspace, as
well as a positive organizational culture.
5. Encourage Autonomy: Whenever possible, allow employees more control over how they
accomplish their tasks. Autonomy can boost job satisfaction by making employees feel trusted
and valued.
6. Recognize and Reward Performance: Develop a system of recognition that acknowledges
employees' efforts and achievements. This could include formal award programs, public
recognition, bonuses, or simple thank-you notes.
7. Ensure Effective Management: Train managers and supervisors in effective leadership
techniques, focusing on communication, empathy, and constructive feedback.
Good management is key to employee satisfaction.
How to Measure Job Satisfaction?
Measuring job satisfaction is essential for organizations to understand how their employees
feel about their work and the workplace environment. Accurate measurement helps identify
areas needing improvement and assess the effectiveness of initiatives aimed at enhancing job
satisfaction. Here are common methods used to measure job satisfaction:
1. Employee Surveys: These are the most widely used tools for measuring job satisfaction.
Surveys can be comprehensive, covering various aspects like the nature of the work,
compensation, work conditions, relationships with colleagues and supervisors, and overall
workplace atmosphere. Surveys can be administered annually or biannually to track changes
and trends over time.
2. Exit Interviews: Conducting interviews with employees who are leaving the company can
provide insights into why they are dissatisfied with their jobs. This feedback can be invaluable
for understanding areas that may not be captured through regular surveys.
3. One-on-One Interviews: Regularly scheduled individual meetings between employees and
their managers can help gauge satisfaction levels and address any issues before they escalate.
These interviews allow for more in-depth understanding and personal feedback.
4. Focus Groups: Organizing focus group discussions among employees can uncover deeper
insights into job satisfaction levels. These sessions facilitate a more open conversation where
employees can discuss their views and experiences in a group setting.
5. Pulse Surveys: These are shorter, more frequent surveys that focus on specific areas of
interest. Pulse surveys can help track the immediate impact of any changes made within the
organization and are useful for quick assessments.
6. Performance Reviews: Although primarily aimed at evaluating employee performance,
these reviews can also provide insights into job satisfaction by assessing attitudes, workplace
behaviors, and engagement levels.
7. Job Satisfaction Metrics: Specific metrics such as turnover rates, absenteeism rates, and
productivity levels can indirectly indicate job satisfaction. High turnover and absenteeism
might suggest low job satisfaction, while increased productivity may indicate high satisfaction.
Job Enrichment : Meaning, Types, Advantages and Disadvantages
ob Enrichment is a strategy that enhances job roles to make them more stimulating. It involves
adding dimensions to existing jobs, such as additional tasks (job enlargement), diversifying
skills, infusing jobs with meaning, fostering autonomy, and providing feedback. The objective
of job enrichment is to create a job that motivates. This can be achieved by adding extra
responsibilities to a routine job, making it more meaningful to the employee. Job enrichment is
a component of job design and job redesign. The primary reason to invest in job enrichment is
its potential to boost motivation, making it particularly relevant for highly skilled, white-collar
service jobs.
Types of Job Enrichment
Job enrichment is a concept that revolves around enhancing an employee's job satisfaction by
modifying their work. This modification often involves adding more responsibilities and
variety to their role. Some of the common strategies that are used:
1. Empowering Employees: One of the most effective ways to enrich a job is by giving
employees more control over their work. This could mean allowing them to make decisions
about how they perform their tasks or even giving them the authority to make larger decisions
about the direction of their work.
2. Innovating Existing Tasks: Another strategy is to encourage employees to find new ways
to accomplish their tasks. This not only adds variety to their work, but also stimulates their
creativity and problem-solving skills.
3. Introducing New Tasks: Also known as job enlargement, this strategy involves adding new
tasks to an employee's role. This can help to keep their work interesting and challenging.
4. Diversifying Daily Tasks: By changing up the tasks that an employee does each day,
employers can help prevent their work from becoming monotonous. This increases
engagement along with productivity.
5. Expanding Skill Set: Encouraging employees to use a wider range of skills in their jobs can
help to keep them engaged and motivated. This increases growth along with development.
6. Increasing Task Load: Also known as job enlargement, this strategy involves increasing
the number of tasks that an employee is responsible for. This can help to keep their work
varied and interesting.
7. Adding Significance to Tasks: Making tasks more meaningful can greatly increase an
employee's motivation. This could involve explaining the impact of their work or showing
them how their tasks contribute to the larger goals of the organisation.
8. Implementing Incentive Programs: Rewarding employees for their hard work can be a
great motivator. This could involve financial rewards, recognition, or other forms of
appreciation.
9. Rotating Shifts: Changing an employee's working hours or shifts can add variety to their
work schedule. This can help to keep their work interesting and prevent burnout.
10. Promoting Employee Development: Providing opportunities for employees to learn and
grow can be a great way to enrich their jobs. This could involve offering training classes,
tuition reimbursement, or other forms of professional development.
These strategies aim to create a positive work environment that motivates employees from
within. They promote a culture of psychological safety, where managers encourage a growth
mindset, and employees are eager to take on more responsibility.
Advantages of Job Enrichment
Job enrichment, as defined, aims to foster motivation, enhance satisfaction, and improve the
quality of work for employees.
1. Impact: The impact of job enrichment can be divided into psychological states and personal
and work outcomes. Psychological states may include a sense of meaningfulness,
responsibility for work outcomes, and awareness of the actual results and influence of the work.
Work outcomes might encompass motivation, superior work performance, increased job
satisfaction, improved employee experience, and reduced absenteeism and employee turnover
(Hackman & Oldham, 1980; Orpen, 1979).
2. Perception: One might assume that job enrichment could lead to decreased satisfaction due
to the increased intensity and breadth of the work. Instead, the increased intensity and breadth
are perceived as motivational factors. The exception is for workers with low growth needs or
limited knowledge and skills. For these individuals, job enrichment is more likely to cause
frustration than satisfaction (Cummings & Worley, 2009).
3. Loyalty: Additional benefits include employees perceiving their jobs as more enriched,
exhibiting higher job involvement, intrinsic motivation, and increased loyalty. A study by
Niehoff and colleagues (2001) demonstrated that job enrichment led to higher loyalty in the
high-stress environment of a downsizing company. In this context, job enrichment was
effectively used as a strategy to retain employees.
4. Productivity: Interestingly, job enrichment does not necessarily result in increased
productivity. While employees may find the work more meaningful, it does not necessarily
translate into higher output.
Disadvantages of Job Enrichment
Cummings and Worley identify several impediments to job enrichment. These hindrances are
often embedded in the organizational system. Recognizing potential constraints to job
enrichment is crucial as they can influence the feasibility and efficacy of your intervention.
1. Technical System: Existing systems within the organisation may hinder job enrichment. For
instance, an assembly line where workstations are designed for a single activity. This results in
highly standardised work, making enrichment impossible without altering the technical system.
2. Human Resources System: The human resources system may have formalised jobs with
job descriptions that obstruct job enrichment. Roles may also be defined by labour unions or
collective labour agreements. Enriching jobs may require extensive negotiation between the
employer and unions, making it nearly impossible.
3. Control System: Budgets, production reports, and accounting practices may limit the extent
to which jobs can be enriched. Organisational departments may also pose a challenge. For
example, the sales department typically manages client relationships. If the product team seeks
to enhance customer connections, it may lead to internal competition and conflicts.
4. Supervisory System: The active participation of management is essential for any successful
HR intervention. The supervisory system can pose a significant obstacle when it comes to
granting autonomy, task completion, and feedback. A controlling manager can derail a job
enrichment intervention aimed at vertically loading a job.
5. Individual Motivation: The individual's motivation is another factor. Job enrichment is
particularly effective for individuals with a high growth need as they embrace the additional
change and challenge. However, for workers with a low growth need, job enrichment is more
likely to cause frustration than satisfaction.
Difference Between Job Enrichment and Job Enlargement
Basis Job Enlargement Job Enrichment
Approach This process involves the The approach focuses on the job as a whole
quantitative expansion of a job’s and provides opportunities, recognition and
Basis Job Enlargement Job Enrichment
Aim It aims to reduce the monotony of The aim is to improve employee satisfaction
performing repetitive tasks. and performance.