Theories of motivation very important for CAIIB ABM exam

 Theories of motivation very important for CAIIB ABM exam

There are various theories of motivation such as:

Scientific management or Rational EconomicView

FW Taylor contributed much to this theory. Theory states that:
-Physical work could be scientifically studied to determine the optimal method of
performing a job.
-Workers can be made efficient by giving prescription.
-Workers would be willing to accept these prescriptions, if paid on a differential piece
work basis.


Human Relations Model


As per Elton Mayo, social contracts at workplace are important in addition to money.
Workers can be motivated by acknowledging their social needs and making them feel
useful and important.

Abraham
Maslow's
Need
Hierarchy Theory
He identified five levels of needs:
1:Physiological needs: Food, rest, exercise, shelter etc.
2:Safety needs: Protection against danger, threat, deprivation.
3:Social needs: Need for belonging, for association, for acceptance, for giving
and receiving friendship and love.
4:Ego/esteem needs: Need For self confidence, for dependence, for achievement,
for knowledge and need for status, recognition, appreciation.
5:Self-fulfillment or self-actualisation needs: To realise one's own potentialities, to
experience continued self-development, to be creative.

Frederick Herzberg's
Two Factor Theory
It states that there are two sets of motivating factors i.e. hygiene or maintenance
factors relating to job environment and other the motivators relating to contents of the
job.
Motivational factors include recognition, advancement, responsibility, achievement,
possibility of growth & work itself.
Maintenance factors include company policy and administration, technical
supervision, salary, job security, personal life, working conditions, status, interpersonal
relations with peers and supervisors.
It is based on existence, relatedness and growth (ERG). People have needs in a
hierarchy and these-needs determine the human behaviour. ERG theory has three
levels of needs compared to 5 in case of Maslow. As per ERG theory, more than oneneed
may be operative at one point of time rather than only one need as per Maslow
theory.


Clayton Alderfer's
ERG Theory

It is based on existence, relatedness and growth (ERG). People have needs in a
hierarchy and these-needs determine the human behaviour. ERG theory has three
levels of needs compared to 5 in case of Maslow. As per ERG theory, more than oneneed
may be operative at one point of time rather than only one need as per Maslow
theory.

Achievement
Motivation Theory

According to DC McCelland, there are three needs i.e. for achievement, for power and
for affiliation.

Victor H Vroom's
Expectancy Model

This theory is known by other names also such as instrumentality theory, path-goal
theory, valence-instrumentality-expectancy theory. As per theory, motivation is
determined by the nature of reward people expect to get as a result of their job. Man
being rational tries to maximize his perceived value of such rewards. There are three
elements in the model i.e. expectancy, instrumentality and valence (value a person
assigns to the desired reward).

James Stacy Adams'
Equity Theory

Theory proposes that motivation to act, develops after the person compares the
inputs / outcomes with the identical ratio in comparison to the other person. Upon
feeling inequity, the person is motivated to reduce it.


Lyman W Porter and
Edward E Lawler—
Performance
satisfaction Model
It states that the motivation does not equal satisfaction and performance. These are
all separate variables. Effort does not lead to performance directly. The reward that
follows will determine the satisfaction.


Reinforcement Theory. The consequences of an individual's behaviour in one situation influences that
individual's behaviour in a similar situation.