Module -2 Individual Behaviour

Individual Behaviour in Organization

Organizations are made up of individuals, and no organization can exist without people. Human behaviour
is complex and is influenced by both internal and external factors. These factors affect how a person thinks,
feels, and reacts in different situations.

According to Kurt Lewin, human behaviour is influenced by many factors such as genetic (inborn) and
environmental factors. These factors together shape the behaviour pattern of a person.

Individuals contribute many things to an organization such as effort, skills, ability, time, and loyalty. These
contributions help the organization achieve its goals. In return, the organization provides incentives like
salary, promotion, job security, and other benefits to employees.

This relationship between the employee and the organization is called a psychological contract. It means
the expectations that both the employee and the organization have from each other. If both sides feel the
relationship is fair, they remain satisfied and continue working together.

Another important concept is person–job fit. It means how well a person’s skills and abilities match the
requirements of the job and the rewards offered by the organization.

Therefore, managers must understand the factors that influence employee behaviour in order to manage
people effectively in the organization.

NATURE OF INDIVIDUAL DIFFERENCES

Physical Differences

These are the tangible and easily observable characteristics of an person. They play a significant role in
determining how we distinguish individuals physically.

 Height: Differences in vertical stature.

 Weight: Variations in body mass.
 Body Shape: The overall structure and proportions of the body.
 Appearance: Distinctive facial features, hair color and texture.
 Complexion: Variances in skin tone and color.

Psychological Differences

Psychological differences explore into the internal, mental, and emotional characteristics that define a
person's behaviour and thought processes. Unlike physical differences, these are often less visible but
profoundly impact how a person interacts with the world.

 Personality: A person's characteristic patterns of thinking, feeling, and behaving (e.g.,

introversion/extraversion, openness to experience).
 Attitudes: An individual’s evaluations of people, objects, and issues, influencing their inclination to
act in certain ways.
 Perception: The way in which an individual processes and interprets sensory information to
understand their environment.
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  Motivation: The internal driving force that initiates and maintains goal-oriented behavior.
 Learning Ability: A person’s capacity for acquiring new knowledge, skills, and understanding.

Why Individual Differences Matter in Organizations

The interplay of both physical and psychological differences means that no two employees will perceive,
think, or react to situations in exactly the same way. Understanding these differences is not just a
theoretical concept; it is crucial for effective management.

By recognizing and valuing individual differences, managers can:

 Improve Motivation and Engagement: Align roles and rewards with what truly motivates different
individuals.
 Optimize Team Building: Create diverse teams whose varying perspectives can lead to better
problem-solving.
 Enhance Communication: Tailor communication styles to better suit different individuals, reducing
misunderstandings.
 Tailor Training and Development: Offer learning opportunities that cater to different learning
abilities and career aspirations.

Important Dimensions of Individual Differences

1. Self-Concept
 Self-concept means how a person sees and understands himself or herself.
 It is the awareness of one’s own identity as a physical, social, and moral person.
 According to Viktor Gecas, self-concept is the idea a person has about himself.
 It is based on cognitions, which include knowledge, beliefs, opinions, expectations, goals, and
personal standards.
2. Self-Esteem
 Self-esteem is the belief about one’s own value or worth.
 Low self-esteem: People feel negative about themselves, lack confidence, and find it difficult to deal
with others.
 High self-esteem: People feel confident, capable, and positive about themselves.
 Very high self-esteem may sometimes lead to being boastful or self-centered.
 Therefore, moderate self-esteem is considered best.
Ways managers can improve employee self-esteem:
1. Support employees and show concern for their problems and contributions.
2. Give work that provides variety, independence, and challenges.
3. Build trust and good relationships between managers and employees.
4. Believe in employees’ abilities and reward their success.
3. Self-Efficacy
 Self-efficacy is a person’s belief that he or she can successfully complete a task.
 People with high self-efficacy are more confident and likely to succeed.
 People with low self-efficacy often expect failure and achieve less success.
 Experience and learning help increase self-efficacy.
4. Personality Dimensions
 Personality refers to the characteristics that influence a person’s behaviour.
 The five main personality dimensions are:
o Extroversion
o Agreeableness
o Thoroughness (conscientiousness)
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 o Emotional stability
o Openness to experience
 People with strong responsibility and determination usually perform better in jobs.
5. Physical and Intellectual Qualities
 Physical qualities include strength, stamina, flexibility, and endurance.
 Intellectual qualities include reasoning ability, memory, understanding, and interpersonal skills.
 These qualities affect how effectively a person performs tasks.
6. Ability
 Ability is the capacity of a person to perform a task effectively.
 It may be physical, mental, or interpersonal ability.
 Abilities develop from natural talent (aptitude) and learning opportunities such as education, training,
and experience.
7. Skills
 Skills are task-specific abilities developed through training and practice.
 Example: A person with numerical ability who studies accounting develops accounting skills.
8. Competencies
 Competencies are advanced skills developed through long practice and experience in a particular
field.
 Example: An accountant working in taxation may become a tax expert over time.
9. Development of Abilities
 Physical abilities can improve through exercise and training.
 Mental abilities can improve through education and practice.
 Many individuals continue to develop their skills and competencies to remain valuable to their
organizations.

Psychological Process of Behaviour

Behaviour means the actions or reactions of a person. It is the result of different internal and external
factors that influence an individual. Internal factors may include feelings, thoughts, and motivation, while
external factors include the environment and situations around the person. By understanding the causes of
behaviour, it becomes easier to know why a person behaves or reacts in a particular way in different
situations.

1. SR Model (Stimulus–Response Model)

The Stimulus–Response (SR) model explains that human behaviour is mainly the result of stimulus from
the environment and the response given by an individual. A stimulus is any external factor such as heat,
sound, situation, or event that influences a person. When a person experiences a stimulus, he or she
reacts to it in the form of behaviour, which is called the response. The model also states that behaviour is
influenced by both internal feelings like motivation and external environmental factors. In simple words, a
person’s behaviour occurs as a reaction to the stimulus received from the environment. Ml
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2. SOBA Model (Stimulus–Organism–Behaviour–Accomplishment Model)

The SOBA model is a more detailed explanation of human behaviour. It includes four elements: stimulus,
organism, behaviour, and accomplishment. Stimulus refers to external environmental situations that
influence a person to act. The organism represents the individual person with his or her personal
characteristics such as heredity, knowledge, skills, and attitudes. Behaviour refers to the actions performed
by a person, including body movements, facial expressions, emotions, and thinking. Accomplishment refers
to the results or outcomes of the behaviour. Some results encourage a person to repeat the behaviour,
while others may discourage it. This model shows that human behaviour is influenced by both the
environment and the personal characteristics of the individual.

S – Stimulus
Stimulus refers to external environmental situations that influence a person and encourage them to take
action or make decisions.
O – Organism
Organism refers to the individual person including their heredity, knowledge, skills, and attitudes that affect
how they respond to a stimulus.
B – Behaviour
Behaviour means the actions or reactions of a person, such as body movements, facial expressions,
emotions, and thinking.
A – Accomplishment
Accomplishment refers to the results or consequences of behaviour, which may encourage or discourage a
person to repeat the same behaviour.

Factors Influencing Individual Behaviour

1. Personality
Personality refers to the personal traits and characteristics of an individual. These traits influence how a
person thinks, feels, and behaves in different situations. Different personalities lead to different behaviours
in the workplace.
2. Economic Factors
Economic factors include wage rate, job conditions, technological changes, and employment opportunities.
These factors influence a person’s interest and attitude toward work. Good economic conditions usually
encourage better performance and job satisfaction.
3. Socio-Cultural Factors
Socio-cultural factors relate to the social environment in which a person lives and works. It includes
relationships with friends, relatives, co-workers, superiors, and subordinates. These relationships influence
a person’s behaviour and attitude at work.
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4. Cultural Factors
Cultural factors include values, beliefs, perceptions, and work ethics of society. Culture influences how
people think and behave in different situations. It also affects preferences and attitudes toward work.
5. Organizational Factors
Organizational factors include structure, hierarchy, leadership, and resources provided by the organization.
These factors create the working environment for employees. A supportive organization can positively
influence employee behaviour.
6. Motivation
Motivation is the force that encourages a person to work and achieve goals. It can be internal, such as
personal ability and intelligence, or external, such as incentives and training. Motivation helps employees
perform their tasks more effectively.
7. Attitudes
Attitudes refer to how a person feels or thinks about something. A person may have a favourable or
unfavourable view toward people, work, or situations. Attitudes strongly influence a person’s behaviour.
8. Values
Values are the beliefs about what is right, important, or desirable. They guide a person’s behaviour and
decisions in life. Values may be personal or influenced by society.
9. Abilities
Abilities refer to the skills and capabilities of a person to perform tasks. They include both physical and
mental abilities. Higher abilities usually help individuals perform work more efficiently.
10. Perception
Perception is the way a person interprets or understands a situation. Different people may see the same
situation in different ways. This difference in interpretation affects their behaviour.

11. Personal Factors

Personal factors include age, gender, education, intelligence, marital status, and religion. These
characteristics vary from person to person. They influence how individuals behave and respond in different
situations.

Personality

Personality refers to the unique characteristics and behaviour patterns of an individual that influence how a
person thinks, feels, and interacts with others. The word personality comes from the Latin word
“personnare”, which means “to speak through.” According to Gordon Allport, personality is the dynamic
organization of psychological systems within a person that determines how they adjust to their environment.
In simple terms, personality includes a person’s traits, attitudes, and behaviour that make them different
from others and influence how they affect people and respond to situations.

Definitions of Personality

According to Salvatore R. Maddi :

Personality is a stable set of characteristics and tendencies that determine the similarities and differences in
people’s psychological behaviour.

According to Sigmund Freud :

Personality is the combination of instincts, motives, and experiences that influence a person's behaviour.

Personality Traits

Personality traits are important in organizational behaviour because they influence how people behave and
perform in their jobs. Research has identified five major personality traits that are related to job
performance. These traits are called the Big Five personality traits.
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 1. Extroversion – A person who is sociable, talkative, active, and confident in interacting with others.
2. Agreeableness – A person who is kind, cooperative, friendly, and trusting towards others.
3. Conscientiousness – A person who is responsible, dependable, hardworking, and focused on
achieving goals.
4. Emotional Stability – A person who is calm, secure, and able to handle stress without becoming
nervous or anxious.
5. Openness to Experience – A person who is imaginative, creative, curious, and open to new ideas
and experiences.

These traits show that personality plays an important role in influencing employee behaviour and
performance in organizations.

Personality Formation

Personality formation begins at birth and continues throughout a person’s life. It is influenced by different
factors that shape how a person thinks, feels, and behaves.
1. Determinants
Personality is mainly influenced by three determinants: biological, social, and cultural factors. Biological
factors include hereditary characteristics such as body shape and height. Social factors include the
influence of family, friends, and society, while cultural factors include religion, values, and traditions. These
factors interact with each other and gradually shape a person’s personality.
2. Stages
According to Sigmund Freud, personality develops through different stages such as dependent,
compulsive, oedipal, and mature stages. These stages show how a person’s behaviour and personality
develop as they grow. Understanding these stages helps managers understand employees better and
support their growth.
3. Traits
Personality traits are the characteristics that describe a person’s behaviour. Although people may share
some common traits, each person has a unique combination of traits. These traits help explain why
individuals behave differently from one another.

Determinants of Personality

1. Cultural Factors

 Culture refers to the beliefs, values, traditions, customs, and practices followed by a society.
 It influences the way people think, behave, and interact with others.
 Cultural elements such as norms, attitudes, moral values, and work ethics shape personality.
 Culture also influences how people accept changes and new ideas in life.
 Since culture is passed from one generation to another, it plays a continuous role in personality
development.

2. Family

 Family is the first social group that influences a person’s personality.

 Children learn behaviour, habits, and values by observing and imitating their parents and family
members.
 This process is called identification, where a child tries to behave like father or mother.
 Factors such as home environment, family background, parents’ education, and family relationships
influence personality.
 Birth order, number of family members, and social class also affect the development of personality.
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3. Situational Factors

 Situational factors refer to the events and experiences that an individual faces in life.
 Different situations can influence or change a person’s behaviour.
 Some experiences may have a strong impact on personality.
 For example, a difficult or traumatic experience may change a person’s behaviour.
 Sometimes people behave differently depending on the situation they face.

4. Social Factors

 Social factors refer to the influence of society and social groups on personality.
 The process through which people learn the behaviour and values of society is called socialization.
 Socialization begins with the mother and family members in childhood.
 Later it continues through interaction with teachers, friends, classmates, and co-workers.
 By accepting the norms and values of society, individuals develop their personality and behaviour.

Perception

Perception is the process by which a person selects, organizes, and interprets information from the
environment to understand a situation. It helps individuals give meaning to what they see, hear, and
experience. Different people may perceive the same situation in different ways.

Perception plays an important role in shaping the behaviour of individuals in organizations. Organizations
give instructions and messages to employees about what they should do and what they should not do.
However, even when the messages are clear, employees may understand or interpret them differently.
Therefore, managers need to understand the perceptual process to avoid misunderstandings and manage
employees effectively.

Definitions of Perception

1. Stephen P. Robbins
Perception is the process by which individuals organize and interpret their sensory impressions in
order to give meaning to their environment.
2. B. F. Skinner
Perception is the way people understand and interpret the stimuli they receive from the
environment.

Factors Affecting Perception

1. Internal Factors
a) Habit
Habit refers to the regular way a person behaves or reacts to situations. People often perceive things based
on their past habits and routines. Because of this, individuals may interpret similar situations in the same
way repeatedly.
b) Motivation and Interest
Motivation and interest influence what a person pays attention to. People usually notice things that are
related to their needs and interests. When someone is highly motivated, they are more likely to perceive
things that help them achieve their goals.
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c) Learning
Learning comes from past experiences and knowledge gained over time. What a person has learned in the
past influences how they understand new situations. Therefore, people with different learning experiences
may perceive the same situation differently.
d) Organization and Specialization
Organization and specialization refer to a person’s professional knowledge and area of expertise. People
often perceive things based on their job role or field of specialization. For example, a doctor and an
engineer may interpret the same problem in different ways.
e) Economic and Social Background
A person’s economic condition and social background influence their perception. Factors such as income
level, education, and social status affect how people view situations. Individuals from different backgrounds
may have different opinions about the same issue.
f) Personality
Personality includes a person’s traits, attitudes, and behaviour patterns. These characteristics influence
how a person interprets people and situations. For example, an optimistic person may see situations
positively, while a pessimistic person may view them negatively.
g) Attitude
Attitude refers to a person’s positive or negative feelings toward people, objects, or situations. It influences
how a person interprets and understands what they see or hear. For example, if an employee has a positive
attitude toward the manager, they may perceive the manager’s instructions as helpful, while a negative
attitude may make the same instructions seem strict or unfair.
h) Experience:
Past experiences help individuals understand and interpret new situations. People often compare present
situations with what they have experienced before. Because of this, two individuals with different
experiences may perceive the same situation in different ways. Experience also helps a person make
quicker and better judgments in similar situations.

2. External Factors

a) Intensity
Intensity refers to the strength or importance of a stimulus. Strong or noticeable stimuli attract more
attention from individuals. For example, a loud sound or bright light is easily noticed.
b) Size
The size of an object can influence perception. Larger objects usually attract more attention than smaller
ones. Because of this, people tend to notice big things more quickly.
c) Contrast
Contrast refers to the difference between objects or situations. When something stands out clearly from its
surroundings, it is more easily noticed. For example, a black object on a white background attracts attention
quickly.
d) Repetition
Repetition means presenting the same stimulus again and again. When something is repeated many times,
people are more likely to notice and remember it. This is why advertisements are often repeated.
e) Motion
Moving objects are more easily noticed than stationary objects. Motion naturally attracts a person’s
attention. Therefore, people quickly perceive objects that are moving.
f) Novelty and Familiarity
Novelty refers to something new or unusual, while familiarity refers to something known or common. New
and unusual things attract more attention because they are different. At the same time, familiar objects are
easily recognized because people already know them.
g) Situation
Situation refers to the environment or context in which perception occurs. Factors like time, place, and
social environment can influence how a person understands something. The same object or event may be
perceived differently in different situations.
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LEARNING

Learning is the process through which a person gains knowledge, skills, attitudes, or behaviour through
experience, study, or practice. It helps individuals understand situations better and improve their ability to
perform tasks.
Learning brings a change in behaviour that is relatively permanent and occurs as a result of experience. In
organizations, employees learn new skills, work methods, and attitudes that help them perform their jobs
more effectively. For example, a new employee learns how to use office software or follow company rules
through training and experience.

Definitions of Learning
B. F. Skinner
Learning is a process in which behaviour changes as a result of experience and interaction with the
environment.
Edward L. Thorndike
Learning is the process of forming connections between stimulus and response through experience.

Learning Process

The learning process explains how individuals acquire new knowledge, skills, or behaviour through
experience and practice. It usually takes place through the following stages:
1. Drive (Need or Motivation)
Drive refers to the internal desire or need that encourages a person to learn something. It creates
motivation to achieve a goal or solve a problem. For example, an employee may learn new software
because they want to perform their job better.
2. Stimulus (Cue)
Stimulus is the signal or situation that directs a person to respond in a particular way. It helps the individual
understand when and where a certain behaviour should occur. For example, instructions from a manager
can act as a stimulus for employees to learn a task.
3. Response
Response is the reaction or behaviour shown by an individual after receiving the stimulus. It is the action
taken by a person during the learning process. For instance, an employee tries to perform a new task after
receiving instructions.
4. Reinforcement
Reinforcement refers to the reward or feedback given after a response. Positive reinforcement encourages
the person to repeat the behaviour in the future. For example, praise or incentives for good performance
motivate employees to continue learning and improving.
5. Retention
Retention means the ability to remember and keep the learned behaviour or knowledge for a long period of
time. It shows how stable or lasting the learning is. If the learned information is not remembered, it is called
forgetting.

Theories of Learning

1. Classical Conditioning Theory

Classical conditioning is a learning theory explained by Ivan Pavlov through an experiment with a dog.
When Pavlov gave meat to the dog, the dog naturally started salivating. Here, the meat is called the
unconditioned stimulus and salivation is the unconditioned response. At first, when Pavlov rang a bell, the
dog did not salivate. Later he repeatedly rang the bell before giving the meat. After several repetitions, the
dog learned to salivate when it heard the bell even without meat.
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This shows that learning can happen through repeated association between a stimulus and a response.
Edward L. Thorndike explained this idea through the law of exercise, which means behaviour is learned
through repetition. However, B. F. Skinner stated that classical conditioning explains only a small part of
human learning because most human behaviour is voluntary and complex.

Key Concept in Classical Conditioning theory of Learning

 Classical conditioning was explained by Ivan Pavlov through an experiment with a dog.
 When Pavlov gave meat (unconditioned stimulus) to the dog, it naturally produced salivation
(unconditioned response).
 At first, when a bell or Whistle rang, the dog did not salivate.
 Pavlov then repeatedly rang the bell before giving the meat.
 After several repetitions, the dog learned to salivate when it heard the bell, even without the meat.
 This shows that learning can occur through repeated association between a stimulus and a
response.
 Edward L. Thorndike called this idea the law of exercise, which means behaviour is learned through
repeated practice.
 Classical conditioning mainly explains simple and automatic behaviours.
 According to B. F. Skinner, it explains only a small part of human learning because human
behaviour is usually voluntary and more complex.

 Before conditioning (Food → Salivation)

Before learning takes place, the dog naturally salivates when it sees food. Food is called the unconditioned
stimulus because it automatically causes salivation. Salivation is called the unconditioned response
because it happens naturally without any training.

Before conditioning (Bell / Whistle → No salivation)

At this stage, when the dog hears a whistle or bell, it does not salivate. The whistle is called a neutral
stimulus because it does not produce any reaction related to food. Therefore, there is no conditioned
response.
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 During conditioning (Bell / Whistle + Food → Salivation)
In this stage, the whistle is sounded just before giving the dog food. This process is repeated several times
so the dog begins to connect the whistle with the food. The dog still salivates because of the food, but it
starts learning the association between the whistle and the food.

After conditioning (Bell / Whistle → Salivation)

After repeated practice, the dog learns to associate the whistle with food. Now when the whistle is sounded
alone, the dog starts salivating even without food. The whistle becomes the conditioned stimulus and
salivation becomes the conditioned response.

2. Operant Conditioning Theory

Operant conditioning is a learning theory introduced by B. F. Skinner. It explains that people learn
behaviour based on the consequences of their actions. If a behaviour is followed by a reward, it is likely to
be repeated, and if it leads to punishment or no reward, the behaviour may decrease. This theory is widely
used in organizations because employee behaviour can be influenced through rewards and penalties.
Managers can encourage good behaviour by giving rewards and discourage bad behaviour through
punishment or by removing rewards. The main reinforcement strategies used in operant conditioning are
positive reinforcement, negative reinforcement, extinction, and punishment.
Positive reinforcement
It means giving a reward after a desired behaviour. This encourages the person to repeat the same
behaviour again in the future. For example, a manager praises or gives a bonus to an employee for
completing work on time.
Negative reinforcement
It means removing something unpleasant after a desired behaviour. This makes the person more likely to
repeat that behaviour to avoid the unpleasant situation. For example, a teacher stops giving extra
assignments when students complete their work regularly.
Extinction
Extinction means stopping the reinforcement for a behaviour. When a behaviour is not rewarded anymore,
it gradually decreases or disappears. For example, if a manager stops giving attention to employees who
complain unnecessarily, the complaining behaviour may reduce.
Punishment
Punishment means giving a penalty or negative consequence for an undesirable behaviour. It is used to
discourage or reduce unwanted behaviour. For example, an employee may receive a warning or salary
deduction for coming late to work repeatedly.

Experiment of B. F. Skinner (Skinner’s Rat Box Experiment)

 Skinner conducted an experiment using a special box called the Skinner box.
A hungry rat was placed inside the box to observe its behaviour.
 Inside the box there was a lever and a food tray.
When the rat pressed the lever, a small piece of food was released.
 At first the rat moved around the box randomly.
By chance it pressed the lever and received food.
 After receiving food, the rat started pressing the lever again.
It learned that pressing the lever gives food as a reward.
 Gradually the rat pressed the lever more frequently.
This showed that behaviour followed by a reward is repeated.
 Skinner concluded that behaviour is influenced by its consequences.
If behaviour is rewarded, it increases; if it is punished or not rewarded, it decreases.
 This experiment led to the development of operant conditioning theory, which explains how
behaviour can be controlled through reinforcement.
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3. Social Learning Theory

 Social learning theory was developed by Albert Bandura.

 It explains that people learn behaviour by observing and imitating others.
 Learning does not occur only through direct experience but also by watching others.
 This type of learning is also called observational learning or modelling.
 In this theory, behaviour is influenced by the interaction between the individual, behaviour, and the
environment.
 If people see others receiving rewards for a behaviour, they are more likely to imitate that behaviour.
 The theory involves four important processes: attention, retention, reproduction, and motivation.
 Attention means observing the behaviour carefully.
 Retention means remembering the observed behaviour.
 Reproduction means performing the same behaviour.
 Motivation means having a reason or reward to repeat the behaviour.
 In organizations, employees learn many skills by observing managers and experienced co-workers.

The theory involves four important processes:

 Attention
Attention means carefully observing the behaviour of others. A person learns only when they pay
proper attention to what another person is doing.
 Retention
Retention means remembering the behaviour that has been observed. The individual stores the
information in memory so that it can be used later.
 Reproduction
Reproduction means performing or copying the behaviour that was observed earlier. The person
tries to practice and repeat the same behaviour in real situations.
 Motivation
Motivation means having a reason or desire to repeat the learned behaviour. People are more likely
to repeat a behaviour if they receive rewards or positive results from it.

4. Cognitive Learning Theory

o Cognitive learning focuses on learning through thinking, understanding, and gaining
knowledge.
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 o It explains how people learn by understanding the relationship between events and objects.
o This type of learning involves mental processes such as thinking, memory, reasoning, and
problem solving.
o In cognitive learning, people learn by understanding concepts rather than only through
rewards or punishments.
o Most classroom learning is an example of cognitive learning.
o Students learn theories, ideas, and principles by understanding them clearly.
o This type of learning helps people make better decisions and solve problems.
o Cognitive learning helps a person do the right thing without repeated trial and error.
o Because the learner understands the concept, the task can often be done correctly the first
time.
o Therefore, cognitive learning makes learning faster and more effective.

Motivation
Motivation refers to the process of encouraging or stimulating a person to act in order to achieve a desired
goal. It is the inner force that directs a person’s behaviour towards completing tasks and achieving
objectives. In organizations, motivation helps employees work efficiently and improve their performance.

Definition of Motivation
Edwin B. Flippo
Motivation is the process of attempting to influence others to do their work through the possibility of gaining
reward.
William G. Scott
Motivation means a process of stimulating people to action to accomplish desired goals.

Features of Motivation

1. Motivation is a psychological concept

Motivation is related to the mental and emotional state of a person. It influences how people think
and behave at work.
2. Motivation is an internal feeling
Motivation comes from within an individual. It arises from personal needs, desires, and goals.
3. Motivation directs behaviour
Motivation guides a person’s actions towards achieving specific goals. It helps individuals focus their
efforts on completing tasks.
4. Motivation is continuous
Motivation is an ongoing process because human needs and desires keep changing. Therefore,
people always require motivation in different situations.
5. Motivation helps achieve goals
Motivation encourages employees to work efficiently and achieve organizational objectives. It
improves performance and productivity.
6. Motivation can be positive or negative
Motivation can occur through rewards such as praise and promotion or through fear of punishment.
Both methods influence behaviour.
7. Motivation is complex
Different people are motivated by different factors. What motivates one person may not motivate
another.
8. Motivation improves job satisfaction
Motivated employees feel more satisfied with their work. This leads to better morale and
commitment to the organization.
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Importance/Need of Motivation in an Organisation

1. Improves employee performance

Motivation encourages employees to work harder and perform their tasks more efficiently. When
employees feel motivated, they try to achieve better results.
2. Increases productivity
Motivated employees put more effort into their work. This helps the organization increase overall
productivity and output.
3. Achieves organizational goals
Motivation directs employees’ efforts towards the objectives of the organization. When employees
work with interest and dedication, organizational goals can be achieved easily.
4. Improves job satisfaction
Motivation helps employees feel satisfied with their jobs. Satisfied employees are more positive and
committed to their work.
5. Reduces employee turnover
Motivated employees are more likely to stay in the organization for a longer time. This reduces the
problem of employees leaving the organization frequently.
6. Encourages teamwork
Motivation helps employees cooperate and work together effectively. This creates a healthy and
supportive work environment.
7. Develops positive attitude
Motivated employees develop a positive attitude towards their work and the organization. This
improves their behaviour and relationship with others.
8. Encourages creativity and innovation
Motivation inspires employees to think of new ideas and better ways of doing work. This helps the
organization improve and grow.
9. Improves discipline in the workplace
Motivated employees follow rules and complete their work on time. This helps maintain discipline
and order in the organization.
10. Improves employee morale
Motivation increases the confidence and morale of employees. High morale helps employees work
with enthusiasm and commitment.

Types of Motivation

 Intrinsic Motivation (Internal Motivation)

Intrinsic motivation comes from within the individual. A person performs a task because they enjoy
the work or feel personal satisfaction from doing it. For example, an employee works hard because
they like learning new skills or feel proud of their work.
 Extrinsic Motivation (External Motivation)
Extrinsic motivation comes from external rewards or benefits given by others. A person performs a
task to receive rewards such as salary, promotion, bonus, or recognition. For example, an employee
works overtime to receive extra pay or promotion.

 Positive motivation
Positive motivation means encouraging employees by giving rewards and benefits. These rewards
may include salary increase, promotion, praise, bonus, or recognition. It creates a positive attitude
and encourages employees to perform better.
 Negative motivation
Negative motivation means motivating employees through fear of punishment or penalties.
Employees work properly to avoid consequences such as warning, demotion, or salary deduction. It
may improve discipline but should be used carefully.
 Financial motivation
Financial motivation is related to money or monetary benefits. It includes wages, salary, bonus,
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 incentives, profit sharing, and allowances. These rewards encourage employees to increase their
effort and performance.
 Non-financial motivation
Non-financial motivation includes rewards that are not related to money. These may include
recognition, appreciation, job security, promotion, participation in decision making, and good
working conditions. These factors improve job satisfaction and morale of employees.

Financial Motivation /Incentives and Non-Financial Motivation/Incentives

Financial Motivation
Financial motivation refers to motivating employees through monetary rewards or financial benefits.

1. Wages and Salary

Wages and salary are the regular payments given to employees for their work. Good pay
encourages employees to work harder and perform better.
2. Bonus
Bonus is an extra payment given to employees in addition to their salary. It is usually given for good
performance or during festivals.
3. Incentives
Incentives are additional financial rewards given for achieving specific targets. They encourage
employees to increase their productivity.
4. Profit Sharing
Profit sharing means giving employees a share of the company’s profits. This makes employees feel
more involved in the success of the organization.
5. Allowances
Allowances are extra payments given for specific purposes such as travel, housing, or medical
expenses. They help employees meet their personal needs.
6. Commission
Commission is a payment given based on sales made by an employee. It motivates sales
employees to increase their sales performance.

Non-Financial Motivation
Non-financial motivation refers to motivating employees without giving money, but through recognition and
good work conditions.

1. Recognition and Appreciation

Recognition means appreciating employees for their good work. Simple praise or appreciation can
increase confidence and motivation.
2. Job Security
Job security means assurance that employees will not lose their jobs easily. It gives employees a
sense of safety and stability.
3. Promotion
Promotion means giving a higher position or rank in the organization. It increases responsibility and
motivates employees to work better.
4. Participation in Decision Making
This means allowing employees to take part in important decisions. It makes them feel valued and
increases their interest in the organization.
5. Good Working Conditions
A clean, safe, and comfortable workplace motivates employees. Good working conditions improve
employee satisfaction and productivity.
6. Training and Development
Training helps employees improve their knowledge and skills. It motivates them by giving
opportunities for personal and career growth.
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 7. Job Enrichment
Job enrichment means giving employees more challenging and meaningful tasks. It increases
responsibility and makes the job more interesting.
8. Job Rotation
Job rotation means shifting employees from one job to another within the organization. It helps
employees learn new skills and reduces boredom.

Theories of Motivation

1. Abraham Maslow’s Need Hierarchy Theory

Maslow’s Theory of Needs was developed by Abraham Maslow. According to this theory, human needs are
arranged in a hierarchy from lower level needs to higher level needs. A person tries to satisfy lower level
needs first before moving to higher level needs.

Physiological Needs
These are the basic needs necessary for human survival. They include food, water, shelter, clothing, and
rest. In organizations, these needs are satisfied through wages or salary.

Safety Needs
Safety needs refer to the need for security and protection from danger. People want a stable job and a safe
working environment. Job security, insurance, and safe working conditions help satisfy these needs.

Social Needs
Social needs relate to love, friendship, and belongingness. People want to build good relationships with
others and feel accepted in a group. In organizations, teamwork and friendly relationships with co-workers
help satisfy these needs.

Esteem Needs
Esteem needs include respect, recognition, and appreciation from others. People want to feel valued for
their work and achievements. Promotions, praise, and awards help satisfy these needs.

Self-Actualization Needs
Self-actualization is the highest level of need in Maslow’s hierarchy. It refers to achieving personal growth
and using one’s full potential. People try to develop their talents and achieve their personal goals.

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2. McGregor’s Theory X and Theory Y of Motivation

McGregor’s theory explains two views managers can have about employees: Theory X, which assumes
employees dislike work and need strict supervision, and Theory Y, which assumes employees are self-
motivated and responsible. In Theory X, motivation is mainly external, relying on rewards, punishments, or
control to make employees work. In Theory Y, motivation is mostly intrinsic, as employees are encouraged
through trust, recognition, and opportunities for personal growth. Overall, the theory shows that a
manager’s assumptions about employees directly influence how they motivate and manage them.

Theory X (Negative View of Employees)

 Employees dislike work and will try to avoid it if they can.

 Managers believe workers need to be closely supervised and controlled.
 Threats or punishments are often used to make employees work.
 Most employees prefer to avoid responsibility.
 Workers need clear instructions and guidance from managers.
 Motivation is mainly through external rewards or fear of consequences.
 Motivation is seen as external: managers use rewards, punishments, or strict supervision to make
employees work.
 In Theory X, the manager makes all the decisions and tells employees exactly what to do. Workers
do not get a chance to make choices and must follow orders. (Autocratic leadership style)

Theory Y (Positive View of Employees)

 Employees see work as natural and can enjoy it like rest or play.
 Workers can be self-motivated and responsible.
 Employees are capable of planning and controlling their own work.
 Given the right environment, employees show creativity and initiative.
 Workers are willing to take responsibility when trusted.
 Motivation comes from personal growth, achievement, and recognition.
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  Motivation is mostly intrinsic: employees are encouraged to be self-motivated, creative, and
committed.
 In Theory Y, the manager trusts employees and lets them take part in decisions. Workers are given
responsibility and freedom to do their work in their own way. (Democratic leadership style)

3. Herzberg Two Factor Theory

Herzberg’s Two-Factor Theory, also called the Motivation-Hygiene Theory, explains what motivates
employees and what prevents dissatisfaction at work. He found that some factors at work make people
satisfied, while others only prevent them from being unhappy but do not motivate them. Herzberg said that
avoiding unhappiness and creating satisfaction are two different things. Motivational factors make
employees happy, satisfied, and willing to work harder. Hygiene factors stop employees from being
unhappy, but do not motivate them.

Hygiene Factors (Prevent dissatisfaction)

Hygiene factors are things at work that keep employees from being unhappy. They include things like
salary, job security, working conditions, and rules at the workplace. If these things are missing or bad,
employees feel dissatisfied. But even if they are very good, they do not make employees feel fully
motivated or happy.

These are factors that do not give satisfaction if improved, but if missing, they cause dissatisfaction. They
are mostly related to the work environment, not the work itself. Examples include:

1. Salary and wages

2. Company policies
3. Working conditions
4. Job security
5. Supervision
6. Relationship with colleagues

Motivational Factors (Increase satisfaction and highly motivated)

Motivational factors are things at work that make employees feel satisfied and want to do their best. They
are mostly about the work itself and chances to grow or learn new skills. Examples include achieving goals,
getting recognition, having responsibility, chances for promotion, and personal development. When these
factors are present, employees feel happy, motivated, and more committed to their job. If these factors are
missing, employees are not unhappy, but they may not give their best effort.

Motivational Factors – Examples

1. Achievement – completing tasks successfully or reaching goals.

2. Recognition – being praised or appreciated for good work.
3. Responsibility – being trusted to handle important tasks.
4. Advancement – opportunities for promotion or career growth.
5. Personal development – chances to learn new skills or improve knowledge.
6. Challenging work – tasks that make employees think and use their skills.
7. Opportunities for creativity – being allowed to suggest ideas or improve processes.
8. Job enrichment – giving employees more meaningful and varied work.
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 Herzberg’s theory says that employee satisfaction and dissatisfaction come from two different sets of
factors. Hygiene factors, like salary and working conditions, prevent unhappiness but do not motivate,
while motivational factors, like achievement, recognition, and responsibility, actually make employees
satisfied and motivated. To keep employees happy and productive, managers should improve hygiene
factors and focus on motivational factors.

4. Vroom’s Expectancy Theory

Vroom’s Expectancy Theory explains how people are motivated to work based on their expectations of
the outcomes. It says that employees will work hard if they believe their effort will lead to good
performance, and that good performance will lead to rewards they value. Motivation depends on how
much a person expects that their effort will result in desired outcomes.

5. ERG (Existence, Relatedness, Growth) Theory

ERG Theory was introduced by Clayton Alderfer, an American psychologist, in 1969. ERG Theory is a
motivation theory that simplifies Maslow’s hierarchy of needs into three main groups. Alderfer said that
employees have three types of needs that influence their motivation at work. Unlike Maslow, ERG
Theory allows more than one need to motivate a person at the same time.

Three Types of Needs

1. Existence Needs
o These are basic material needs required for survival.
o Examples: Salary, job security, safe working conditions, food, and shelter.
o They are similar to Maslow’s physiological and safety needs.
2. Relatedness Needs
o These involve social relationships and interactions with others.
o Examples: Friendships at work, team relationships, recognition by colleagues, and good
communication with managers.
o Similar to Maslow’s social needs.
3. Growth Needs
o These involve personal development and achieving one’s potential.
o Examples: Challenging work, learning new skills, promotion, career development, and
responsibility.
o Similar to Maslow’s esteem and self-actualization needs.

ERG Theory says employees are motivated by existence, relatedness, and growth needs. Managers can
use this theory to provide the right mix of rewards, relationships, and growth opportunities to motivate
employees.
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