The Outcome of Motivation in Firms

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Motivation is the outcome of processes, internal or external to the individual that arouses interest and diligence to pursue a certain course of accomplishment. Motivation represents a displeased need, which creates a state of anxiety or disequilibrium, causing the individual to make a goal-oriented pattern towards restoring a state of equilibrium by pleasing the need. The factors that motivate an individual keep altering as one climbs the ladder of age and maturity. Moreover, achievement of one goal sets the ball rolling for another one to be achieved. Therefore, to be motivated is a constant necessitate. One needs to take stalk every now and then and find the motivator required to carry them through. What so ever, motivation is important for several aspects, such as, High performance Low employee turnover and absenteeism Better organizational Image Better industrial relations Acceptability to change Better quality orientation Better productivity Thus, the body of the report will be overlooking at how the above shown can be achieved and what motivational theories are more effective for their achievement.

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Different Motivational Theories Practiced by Organizations and Why They Use them on Employees

Abraham Maslow’s hierarchy of human needs Herzberg’s motivator-hygiene theory (Herzberg’s dual factor theory) Adam’s equity theory Expectancy theory Goal setting theory McGregor X & Y theory

Abraham Maslow’s hierarchy of human needs

Maslow’s need hierarchy divides human needs into five levels. The basis of Maslow’s theory of motivation is that beings are motivated by unsatisfied needs, and that certain lower needs need to be satisfied before higher needs can be addressed. As to the teachings of Maslow, there are general needs such as, Physiological needs: These are the basic human needs including food, clothing, shelter and other necessities of life. Once these are satisfied they no longer motivate the man. Safety needs: These include economic security, protection from physical dangers. Social needs: Need for love, affection, emotional needs, warmth and friendship. Self esteem: Ego or self-esteem, self respect, self confidence, recognition. Self-actualization needs: desire for personal achievement or mission of his life. These have to be fulfilled before a person is able to act unselfishly.

Why Maslow’s theory is been used in organizations

In the words of Fred Luthans, “The theory does make a significant contribution in terms of making management aware of the diverse needs of humans at work. The number or names of the levels are not important, nor is the hierarchical concept. What is important is the fact that humans in the work-place have diverse motives.” There are two key points why organizations practice Maslow’s theory: Not all employees are motivated by the same needs The needs that motivate individuals can change in the fullness of time. Moreover, the specific reasons why organization use this theory is due to the followings, It is a logical theory It clearly states that satisfied needs are not motivators. Therefore, organizations can easily concentrate on unsatisfied needs of their subordinates. It shows the organization that a worker advances to the next level only when the lower level is satisfied It offers ideas for understanding the work force needs The theory helps to find out the reasons that influence behavior of a person

Herzberg’s motivator-hygiene theory (Herzberg’s dual factor theory)

Frederick Herzberg, set out to determine which work factors such as wages, security, job or advancement made people feel good about their jobs and which made them feel bad about their work. The survey he conducted analyzed results and concluded that to understand employee satisfaction or dissatisfaction. He divided the work factors into two categories: Motivation factors: those factors that are strong contributors to job satisfaction Hygiene factors: those factors that are not strong contributors to satisfaction but that must be present to meet a worker’s expectations and prevent job dissatisfaction. Thus, the motivation factors such as promotions and opportunities are related to the nature of the work itself and the way the employee performs it. Whereas, hygiene factors such as, physical working conditions are related to the environment in which it is performed.

Why Herzberg’s theory is in practice

The two Factor theory clearly distinguishes between the factors that motivate employees on the job ant the factors that maintain employees on the job. It helps the organization to understand the effect of the job content on motivation of employees It explains to the organization managers the significance of job enrichment on the job redesign and motivation It clearly identifies the factors, which cause job satisfaction & dissatisfaction. Hence, it points out to the organization that the presence of maintenance of hygiene factors avoids dissatisfaction of employees but does not cause satisfaction.

Adam’s equity theory

Applied to the work environment, this theory proposes that employees analyze their contribution or job inputs (hours worked, experience, performance) and their rewards or job out comes (benefits, salary, recognition). Then they create a rewards ratio and compare it to those of other people such as, Someone in a similar position Someone with a similar occupation Someone who shares certain characteristics

Why organizations practice equity theory

Equity theory advises organizations to focus on treating workers fairly, especially in determining compensation, which is, naturally, a common basic of comparison. This is mostly studied in organizations to overcome the problem of an employee perceiving an inequity, where he or she might bring the ratio into balance, either by decreasing inputs (working fewer hours) or by increasing outputs (asking for a raise). If this strategy fails, an employee might leave the organization.

Expectancy theory

Expectancy theory states that an individual tends to proceed in a certain way based on the potential that the act will be followed by a given outcome and on the magnetism of that to the individuals. This includes three variables. The key to expectancy theory is to understand an individual’s goal and the linkage among effort and performance, performance and reward and last but not the least between rewards and individual goal satisfaction. Thus, expectancy theory has recognized that there is no universal principle for explaining what motivates individuals and, consequently, stresses that managers must understand why employees sights certain outcomes attractive or unattractive. Furthermore, this theory emphasizes expected behavior and individual perception.

Why organizations practice expectancy theory

This theory helps organizations to drive employee productivity through motivation. Therefore, an organization can link positive valence of the employee to high performance, and ensure that the connection is communicated to employees. In addition, to secure expectation, the organization can identify the resources, training or supervising required. To end with, the management of the respective company needs not to not just ensure that promises of rewards are fulfilled but also make sure employees remain aware of this.

Goal setting theory

There is extensive support for the proposition that specific goals increase performance and that complicated goals, when accepted, result in higher presentation than do easy goals. This proposition is known as goal setting theory. Goal setting theory has demonstrated the superiority of specific and challenging goals as motivating forces. The specificity of the goal itself acts as an internal stimulus. Hence, a person with a specific goal will outperform someone else operating with no goals. The main findings of goal setting theory are: The mere act of setting goals leads to higher performance compared to having no goals Setting specific, difficult, attainable goals lead to higher performance Challenging goals energize people to put forth greater effort than they otherwise would. Difficult goals lead to the marshaling of existing knowledge and skills

Why organizations practice goal-setting theory

Correct goal setting and management of the work force enhances performance through increased motivation, effort and persistence. Goal setting theory also improves the quality and frequency of feedback on performance. However, with a clear goal setting theory managers can help employees measure their progress and make necessary adjustments to their methods or effort throughout the process.

McGregor’s X & Y theory

Douglas McGregor is best known for his formulation of two sets of assumptions about human nature: theory X and theory Y. Theory X presents an fundamentally negative view of people and it assumes that workers have little aspiration, dislike work and need to be closely controlled to work effectively. Therefore, theory Y offers a positive view. It assumes that workers can exercise self-direction, accept and seek out responsibility and consider work to be a natural activity. It is believed that the assumptions of theory Y were more valid than those of theory X. Hence, McGregor himself has proposed that participation in decision making, responsible and challenging jobs and group relations would exploit employee motivation.

Why organizations practice X & Y theory

If the assumption Y is true, an organization and its management can apply the shown principles to improve employee motivation: Broadening the scope of an employee’s job adds a variety of opportunity to satisfy ego needs Consulting employees in the decision making taps their creative capacity and provides control over their work environment By performance appraisal, having the employees set objectives and participate in the motivation process evaluating how well they were met


Leadership is a process by which a person influences others to accomplish an objective and directs the organization in a way that makes it more cohesive and coherent. There are several styles of leadership: Authoritarian leadership Participative leadership Laissez – faire leadership

Authoritarian leadership

This style is used when leaders tell their employees what they want done and how they want it accomplished, without getting the advice of their followers. This style is appropriate to use when the leaders have the information to solve the problem, when they are short on time or when the employees are well motivated. Whatsoever, the authoritarian style should normally only be used on rare occasions.

Participative leadership

This style involves the leader including one or more employees in the decision making process. However, the leader maintains the final decision making authority. By using this style, it will point outs a sign of strength that the employees will respect eventually. This style is normally used when the leader has part of the information while the employee has the other parts. In addition, this style allows leaders to become a part of the team and allows them to make better decisions.

Laissez – faire leadership

In this specific style, the leader allows the employees to make the decision. However, the leader is still responsible for the decision that are been made. This used when employees are able to analyze the situation and determine what needs to be done and how. This style is only used when the leader trusts and is confident about the employees below them.

Effectiveness of Leadership

A good leader uses all three styles, depending on the forces, which are involved between the followers, leader and the situation. Authoritarian style can be used on a new employee who has just joined the company. Whereas, in this situation the leader can competent as a good coach and the employee will be motivated to learn new skills. Never the less, participative style can be taken into practice when the leader is aware of the problems, but does not have all the information. In this case, when the leader is working with a team of workers who knows the job they will become a part of the decision-making and the overall decision will be more effective. Laissez – faire style is used with an employee who knows more about the job than the leader. Whereas, when the leader cannot do everything the employee takes the ownership of the job. In addition, this style also allows the leader to be at other palaces attending other tasks.

Difference between Motivation & Leadership

Motivation is significant because it inspires high performance and achievement within organizations. Whereas, leadership evokes imagery of inspiration, vision, courage creativity and passion. Motivation is linked to both organizational excellence and profitability while, leadership is followed because it is worth following – leaders inspire and motivate employees. Motivation is to improve productivity and performance increases when they have challenging goals. Leadership is about product of capability and creditability. Creditability is the key to motivating and inspiring employees to achieve organizational excellence.

Effective Leader; a Paramount to an Organization

In an organization, normally the managers are the leaders. Therefore, the success or the failure of an organization depends on their leadership skills. Effective leaders are involved with bringing together resources, developing strategies, organizing and controlling activities in order to achieve objective resources. In addition, if the leadership is effective, they can be successful by helping subordinates to find solutions to their problems. Thus, a successful leadership is that function of management, which is largely involved with establishing goals and motivating people to help achieve them. A person might be an effective manager, a good planner and an organized administrator – but lack the motivation skills of an effective leader. Given the challenges of dynamic engagement in today’s business world, most organizations today are putting premium on managers who possess effectual leadership skills. Effective leadership is the art or process of the workforce so that they will strive willingly and enthusiastically towards the achievement of organizational goals. It is the ability to persuade others to work towards defined objectives. An effective leader binds a group together and motivates it towards organizations goals. Never the less, a first-class leader helps the organization attain objectives through the finest of its capabilities.

Task 04

Nature of Group and Team Roles

Nature of groups

Groups fall into two categories, formal and informal. Both these groups can be found at Etisalat Sri Lanka. Formal groups are those given legitimacy by the organization whereas informal groups tend to be more social in nature. However, at Etisalat groups are sanctioned by the organization in order to simulate innovation or increase employee morale. Although Etisalat had made sure that these groups would not develop any chaos within the organization but develop in multiple fields such as the, employment exchange which creates more work and career opportunities. By attaining this method, the organization has been capable to: To give the employees a different perspective on the company and their business by living in a different culture. To spur innovation.

Team roles

Beblin Suggested that, by understanding a particular role within a particular team, people can develop their strengths and mange their weaknesses as a team member, and so improve how to contribute to the team. Though it is rare to find teams which include with all nine team roles, Etisalat has made sure to combined employees who does have multiple roles in there organizational teams. Therefore, Etisalat has above mentioned employee exchange programs as well as well as job rotation programs and teamwork trainings. By these programs, Etisalat tries to build a stronger organizational culture and a strong relationship among the employees. By encouraging each individuals with different team roles Etisalat is attaining to achieve more strength within the organization. Never the less, the organization objective is to create a change in corporate culture by realizing the power of the workforce committed to updating their skills and meeting the demands of the future dynamic synergy through team work. In addition, Etisalat also uses team wok to motivate individuals, who are timid and makes them realize of new strengths by interacting with people talented in multiple ways.

Stages of Team Building

There are four stages of team building. They are: Forming – the “polite” stage in which the team starts to form and members are been treated as strangers Storming – this includes feelings and behaviors of the members, members start communicating, and they start testing others. Norming – the team starts to work together, and has turned around from the storming phase. The members will be able to express criticism constructively. Performing – this is the level where the team is a high-performance team. They can be given new projects and tasks to be accomplished successfully. Above-mentioned stages are evident within Etisalat. The first two stages are clearly seen when employees are newly selected or when they are switched into different locations. Whatsoever, as time passes the employees will be communicating well and will be starting to learn new cultures. Never the less, it is also visible that in the norming stage of teams the employees are more productive in expressing criticism. Coming to the last stage it can be evident that the teams are more flexible and engaged in tasks which are been successfully accomplished in the end. These can be manifest by looking at the event and the group projects, which Etisalat has organized. Addition to the above mentioned stages there are two more, which are known as adjourning. This stage involves disbandment of the team, termination of roles and the completion of tasks.

Team Cohesiveness

Team cohesiveness plays an important role in Etisalat’s organizational behavior of individuals working in it. This is the essential factor at Etisalat, which binds the members of the teams together. Hence, it is hard for an organization to function without the cohesive feature. At many aspects, it has been told that team cohesiveness has been a negative influence; however, Etisalat has taken many steps to build a good cohesive unit. Team cohesiveness has helped Etisalat to bind by small group size members where the members can easily interact and know individuals thoughts relating to a particular process.

Motivation Tools and Techniques

There are several ways that Etisalat motivates the workforce. Mentioned below are those significant techniques: Training – Etisalat starts training employees from the time they have been selected for a job and continues until the employee leaves the organization. By this, the employee gets to keep in touch with new cultures in the organization as well the new technology and environment around them. Recognition – At Etisalat when employees accomplish their tasks, we do our best to give them recognition by presenting them with awards such as the “best employee of the month” or by handing them over promotions. Social gatherings – scheduling offsite events to enhance bonding which in turn helps team spirit, which ultimately influences a positive work environment, this is another motivation method that Etisalat follows. Good working environment – Etisalat has flexible working conditions among the employees. In addition, Etisalat has a peaceful environment with fresh paints and innovative creations, which gives the employees the need to work at Etisalat. Furthermore, the organization also gives other facilities such as, leadership roles, casual dress day and time offs to keep the workforce motivated all along.

Impact of Technology on Team Building

The new use of technologies can improve and in some cases hinder team functioning. Shown belp are the latest technologies that Etisalat uses to improve team building: E-mail – Etisalat uses e-mail, so that the team members do not need to be in the same place at the same time in order to communicate effectively. Never the less, e-mail also has it’s negative aspects in terms of managing them. Blackberry – Etisalat has given some significant team members technology such as Blackberry and 4G data cards, which allows team members to work while communicating. Groupware – this is used at Etisalat to plan meetings, collaborate, delegate all within a virtual environment, which can often be accessed remotely from anywhere in the world. PDA’s – personal digital assistants now are used at Etisalat to communicate more efficiently while carrying out various teamwork. These are more portable than computers or laptops. However, it is clear that there is negativity in using new technology such as, the lower satisfaction levels for team users of virtual meeting tools in contrast face-to-face meetings. Therefore, understanding that there are pros and cons of technology on team building, Etisalt has a good balance of using modern technology and keeping in touch with traditional practices.


Leaders and employees reach out beyond their boundaries in order to develop more effective relations, procedures, processes and visions. Most of the problems of today’s organizations are due to lack of leadership not talent. Understanding leadership and motivation opens our minds to new thought processes of how people behave and why, helps understand some general principles of human behavior and allows us to use these theories as a guide for day-to-day workplace participation. Moreover, helps analysis and understand group behavior. In today’s competitive market, organizations want more from their employees: they want employees who can participate in teams to help them achieve greater success. Leaders know that teams offer many advantages over the traditional distribution of labour and can provide richer, more diverse solutions to problems. Consequently, today’s organizations need to understand the importance of team skills and teamwork to be successful.

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The Outcome of Motivation in Firms. (2017, Jun 26). Retrieved December 9, 2022 , from

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