INSITITUTE OF BUSINESS AND TECHNOLOGY BIZTEK

Submitted To: Institute of Business and Technology Gulshan Campus, Karachi Submitted By: MBA Ist semester Fahad Abbas Bm-25078 Zohaib Abbas Bm-25081 Asad Mazher Bm-25065 Ali Qasim Bm-25048

LETTER OF ACKNOWLEDGEMENT

Dear Reader, We would like to thank ALLAH Almighty, for finally making our efforts worthwhile. We also like to thank Dr Rahat Aalam course instructor, method in business management research, biztek, Karachi for her amiable support and guidance in completing this report. It is due to her that, we had the opportunity of learning how to carry out and conduct a research report. This report about Motivation, this will help us in enhancing research and creative skills in the practical scenario.

Sincerely,
Fahad Abbas Zohaib Abbas Asad Mazher Ali Qasim

LETTER OF TRANSMITTAL

Institute of Business and Technology (Biztek)Gulshan-e-Iqbal,Karachi, Pakistan

To Whom It May Concern

Dear Sir, Presented here is the report on Motivation as a part of the requirement of the course research report M.B.A (semester One) This report follows the guidelines given in the course outline provided by biztek it has been reviewed and duly approved our course instructor The research report provides flaws present Motivation Factor Your feedback is vital for the credibility and worthiness of this research report. Please do not hesitate to contact us for any additional information or question.00923452837521 Thank You Yours Truly Fahad Abbas
Zohaib Abbas Asad Mazher Ali Qasim

TABEL OF CONTENT

1.0 What is motivation ----------------------------01 1.1 Motivation Concept -----------------------02 1.2 Intrinsic & Extrinsic Motivation-----03-04 1.3 Seven Rules of motivation------------05-06 2.0 Marketing Research---------------------------07 3.1 Method of data collection----------------------08 3.2 Survey Result--------------------------------08 4.0 Motivation Theories------------------------11-15 4.1 Motivational Speech Techniques----------16 5.0 Herzberg`s Two Facter theory-----------17-20 5.1 Alderfer`s ERG theory----------------------20 6.0 Theory X Theory Y-------------------------21-23 7.0 Goal setting Theory-------------------------23-24 8.0 Expectancy theory--------------------------24-26 9.0 Equity Theory--------------------------------27-30 10.0 Reinforcement Theory--------------------31-32 11.0 Graphical Presentation-------------------33-34 12.0 Conclusion--------------------------------------35 13.0 Recommendation------------------------------36 14.0 Bibliography------------------------------------37 15.0 Questionnaire-------------------------------38-39

Motivation is the set of reasons that determines one to engage in a particular behavior. The term is generally used for human motivation but, theoretically, it can be used to describe the causes for animal behavior as well. human motivation. According to various theories, motivation may be rooted in the basic need to minimize physical pain and maximize pleasure, or it may include specific needs such as eating and resting, or a desired object, hobby, goal, state of being, ideal, or it may be attributed to less-apparent reasons such as altruism, morality, or avoiding mortality.

In Other Words The Willingness to exert high levels of effort toward Organizational goals, conditioned by the efforts ability to satisfy some individual need.

Basic Characteristics of Motivation

Effort. This refers to the strength of a person's work-related

behavior. Persistence. This refers to the persistence that individuals exhibit in applying effort to their work tasks. Direction. This refers to the quality of a person's work related behavior. Goals. This refers to the ends towards which employees direct their effort.

The Incentive Theory of Motivation A reward, tangible or intangible, is presented after the occurrence of an action (i.e. behavior) with the intent to cause the behavior to occur again. This is done by associating positive meaning to the behavior. Studies show that if the person receives the reward immediately, the effect would be greater, and decreases as duration lengthens. Repetitive action-reward combination can cause the action to become habit. Motivation comes from two things: you, and other people. There is extrinsic motivation, which comes from others, and intrinsic motivation, which comes from within you. Rewards can also be organized as extrinsic or intrinsic. Extrinsic rewards are external to the person; for example, praise or money. Intrinsic rewards are internal to the person; for example, satisfaction or a feeling of accomplishment.

Some authors distinguish between two forms of intrinsic motivation: one based on enjoyment, the other on obligation. In this context, obligation refers to motivation based on what an individual thinks ought to be done. For instance, a feeling of responsibility for a mission may lead to helping others beyond what is easily observable, rewarded, or fun.

Intrinsic Motivation Intrinsic Motivation: Stems from the direct relationship between the worker and the task and it is usually self-applied.

Intrinsic motivation occurs when people engage in an activity, such as a hobby, without obvious external incentives.

In knowledge-sharing communities and organizations, people often cite altruistic reasons for their participation, including contributing to a common good, a moral obligation to the group, mentorship or 'giving back'. In work environments, money may provide a more powerful extrinsic factor than the intrinsic motivation provided by an enjoyable workplace. In terms of sports, intrinsic motivation is the motivation that comes from inside the performer. That is, the athlete competes for the love of the sport.

Extrinsic Motivation
Extrinsic Motivation: Stems from the work environment external to the task and it is usually applied by someone other than the person being motivated. Extrinsic motivation comes from outside of the performer. Money is the most obvious example, but coercion and threat of punishment are also common extrinsic motivations. In sports, the crowd may cheer the performer on, and this motivates him or her to do well. Trophies are also extrinsic incentives. Competition is often extrinsic because it encourages the performer to win and beat others, not to enjoy the intrinsic rewards of the activity. Social psychological research has indicated that extrinsic rewards can lead to over justification and a subsequent reduction in intrinsic motivation.

Self-control
The self-control of motivation is increasingly understood as a subset of emotional intelligence; a person may be highly intelligent according to a more conservative definition (as measured by many intelligence tests), yet unmotivated to dedicate this intelligence to certain tasks. Yale School

of Management Professor Victor Vroom's "expectancy theory" provides an account of when people will decide whether to exert self control to pursue a particular goal.

Rule #1 Set a major goal, but follows a path. The path has mini
goals that go in many directions. When you learn to succeed at mini goals, you will be motivated to challenge grand goals.

Rule #2 Finish what you start. A half finished project is of no use

to anyone. Quitting is a habit. Develop the habit of finishing selfmotivated projects.

Rule # 3 Socialize with others of similar interest. Mutual

support is motivating. We will develop the attitudes of our five best friends. If they are losers, we will be a loser. If they are winners, we will be a winner. To be a cowboy we must associate with cowboys

Rule #4 learns how to learn. Dependency on others for knowledge

supports the habit of procrastination. Man has the ability to learn without

instructors. In fact, when we learn the art of self-education we will find, if not create, opportunity to find success beyond our wildest dreams.

Rule #5 Harmonize natural talent with interest that motivates. Natural talent creates motivation, motivation creates
persistence and persistence gets the job done.

Rule #6 Increase knowledge of subjects that inspires. The

more we know about a subject, the more we want to learn about it. A selfpropelled upward spiral develops.

Rule #7 Take risk. Failure and bouncing back are elements of

motivation. Failure is a learning tool. No one has ever succeeded at anything worthwhile without a string of failures.

We collect Primary data by questionnaires by observing human behavior interest. We collect Secondary data from Internet, Newspaper, and Books.

We conduct a survey to get or find the Motivation position in firms & and employee conflicts against employer, or management. We extracted from possessive survey is that the majority of people demotivated because of lack of reward system and other opportunities. We tried to find out the de motivation factor, what is the reason. We find that employee want reward system, they want to completely full fill their needs,Our survey result shows that we can easily solve this problem due to follow of some special technique to managing human behavior. Employee Motivation Survey Design An employee motivation survey is your first step towards employee retention. Infosurv begins the process by designing a customized employee motivation survey for your organization,. Employee Motivation, including: Overall satisfaction Corporate culture Supervisor relations Training Pay and benefits Work environment Communications

Our standard employee motivation surveys are comprehensively designed to identify and isolate key independent and dependent variables. Independent Variables Supervisor relations Pay & benefits Work environment Corporate communications Dependent Variables Overall satisfaction Likelihood to recommend Likelihood to stay Employee loyalty

Our research shows that employee attitudes are a better predictor of future employee behavior than past behavior. Our employee motivation surveys are specifically designed to accurately measure attitudes that affect real business metrics, like employee retention rates and turnover. Employee Satisfaction Surveys Are Essential For Retention An employee satisfaction survey is an invaluable tool that can measure and analyze the satisfaction of employees. Research shows that employee turnover costs companies big money every year - as much as 25 - 200% of an employee's annual compensation. By understanding the concerns of your employees through tools such as employee satisfaction surveys, companies are better able to implement policies and procedures that can improve retention. Longterm, employee surveys: Increase the sense of commitment and loyalty of your employees Save company money due to fewer turnovers Increase employee morale Gain employee trust In addition to the above, research has shown that employee satisfaction has a direct relationship to business revenue and customer loyalty. Satisfied employees perform better at their jobs. Employees with poor attitudes can have a negative affect on their co-workers and their customers.

Employee satisfaction surveys are inexpensive, yet will generate results that are worth many times your small investment. If you choose to do your employee satisfaction survey online, you'll receive real-time results in as little a few minutes upon implementation. Employee satisfaction surveys can assess just about anything that relates to the work environment, including: Overall satisfaction Management/employee relations Corporate culture Career development Compensation Benefits Recognition and rewards Working conditions Training Staffing levels Safety concerns Policies and procedures

Maslow's hierarchy of needs

Need Theories
Maslow's hierarchy of needs is a theory in psychology, proposed by Abraham Maslow in his 1943 paper A Theory of Human Motivation,[2] which he subsequently extended to include his observations of humans' innate curiosity.

Maslows
SELF SELF

Theory

ACTUALIZATION ACTUALIZATION

SELF ESTEEM SELF ESTEEM SOCIAL SOCIAL SECURITY SECURITY SAFETY SAFETY PHSIOLOGICAL PHSIOLOGICAL

Physiological needs
For the most part, physiological needs are obvious - they are the literal requirements for human survival. If these requirements are not met (with the exception of sex), the human body simply cannot continue to function. Physiological needs include:

Breathing Homeostasis Water Sleep Food Excretion Sex

Safety needs
With their physical needs relatively satisfied, the individual's safety needs take over and dominate their behavior. These needs have to do with people's yearning for a predictable, orderly world in which injustice and inconsistency are under control, the familiar frequent and the unfamiliar rare. In the world of work, these safety needs manifest themselves in such things as a preference for job security, grievance procedures for protecting the individual from unilateral authority, savings accounts, insurance policies, and the like. For the most part, physiological and safety needs are reasonably well satisfied in the "First World." The obvious exceptions, of course, are people outside the mainstream the poor and the disadvantaged. If frustration has not led to apathy and weakness, such people still struggle to satisfy the basic physiological and safety needs. They are primarily concerned with survival: obtaining adequate food, clothing, shelter, and seeking justice from the dominant societal groups. Safety and Security needs include:

Personal security Financial security Health and well-being Safety net against accidents/illness and the adverse impacts

Social needs
After physiological and safety needs are fulfilled, the third layer of human needs is social. This psychological aspect of Maslow's hierarchy involves emotionally-based relationships in general, such as:

Friendship Intimacy Having a supportive and communicative family

Humans need to feel a sense of belonging and acceptance, whether it comes from a large social group, such as clubs, office culture, religious groups, professional organizations, sports teams, gangs ("Safety in numbers"), or small social connections (family members, intimate partners, mentors, close colleagues, confidants). They need to love and be loved (sexually and non-sexually) by others. In the absence of these elements, many people become susceptible to loneliness, social anxiety, and Clinical depression. This need for belonging can often overcome the physiological and security needs, depending on the strength of the peer pressure; an anorexic, for example, ignores the need to eat and the security of health for a feeling of control and belonging. Esteem All humans have a need to be respected, to have self-esteem, self-respect, and to respect. Also known as the belonging need, esteem presents the normal human desire to be accepted and valued by others. People need to engage themselves to gain recognition and have an activity or activities that give the person a sense of contribution, to feel accepted and selfvalued, be it in a profession or hobby. Imbalances at this level can result in low self-esteem or an inferiority complex. People with low self-esteem need respect from others. They may seek fame or glory, which again depends on others. It may be noted, however, that many people with low self-esteem will not be able to improve their view of themselves simply by receiving fame, respect, and glory externally, but must first accept themselves internally. Psychological imbalances such as depression can also prevent one from obtaining self-esteem on both levels.

Aesthetic needs The motivation to realize one's own maximum potential and possibilities is considered to be the master motive or the only real motive, all other motives being its various forms. In Maslow's hierarchy of needs, the need for self-actualization is the final need that manifests when lower level needs have been satisfied.

Self-Transcendence Near the end of his life Maslow revealed that there was a level on the hierarchy that was above self-actualization: selftranscendence"[Transcenders] may be said to be much more often aware of the realm of Being (B-realm and B-cognition), to be living at the level of Being to have unitive consciousness and plateau experience (serene and contemplative B-cognitions rather than climactic ones) and to have or to have had peak experience (mystic, sacral, ecstatic) with illuminations or insights. Analysis of reality or cognitions which changed their view of the world and of themselves, perhaps occasionally, perhaps as a usual thing."

Five simple strategies to motivate your listeners.

One of the most important elements of leadership is the ability to motivate people. Without motivation, even the most skilled team of seasoned professionals is unlikely to achieve great things. A highly motivated group of talented people, on the other hand, can move mountains.

While its true that motivating people involves more than just changing the way you speak, there are some simple guidelines you can follow to help build team motivation with only your words and your voice: Be enthusiastic. Enthusiasm is contagious! Before you present your ideas, think about the aspects of the subject that you find most interesting, and dont be afraid to let that interest come through in your voice. Use quotes, stories and anecdotes. Along with their obvious entertainment value, quotes and stories can lend authority to your topic and provide concrete examples that people can relate to. Speak with confidence. Deliver your message loud and clear. Maintain eye contact with your listeners. Dont mumble or slouch. Say you and we, not I and me. Instead of telling people what you want them to do, present ways for them to work together to achieve their goals. Involve listeners in the success of the group. Keep it simple. People arent motivated by what you say; theyre motivated by what they understand. The best way to ensure audience understanding is to break down complex ideas into simple components.

Frederick Herzberg has tried to modify Maslows need Hierarchy theory. His theory is also known as two-factor theory or Hygiene theory. He devised his theory on the question: What do people want from their jobs? He asked people to describe in detail, such situations when they felt exceptionally good or exceptionally bad. From the responses that he received, he concluded that opposite of satisfaction is not dissatisfaction. He states that presence of certain factors in the organization is natural and the presence of the same does not lead to motivation. However, their nonpresence leads to De-motivation. In similar manner there are certain factors, the absence of which causes no dissatisfaction, but their presence has motivational impact.

HYGIENE FACTORS
Conditions

Pay Status Security Company policies

MOTIVATIONAL FACTORS
Achievement Recognition Growth/Advancement Interest in the job

Two Factor Theory

(Also known as Herzberg's Motivation-Hygiene Theory) was developed by Frederick Herzberg, a psychologist who found that job satisfaction and job dissatisfaction acted independently of each other. Two Factor Theory states that there are certain factors in the workplace that cause job satisfaction, while a separate set of factors cause dissatisfaction

Two Factor Theory Fundamentals

Anna Lustig attitudes and their connection with industrial mental health are related to Maslow's theory of motivation. His findings have had a considerable theoretical, as well as a practical, influence on attitudes toward administration]. According to Herzberg, individuals are not content with the satisfaction of lower-order needs at work, for example, those associated with minimum salary levels or safe and pleasant working conditions. Rather, individuals look for the gratification of higher-level psychological needs having to do with achievement, recognition, responsibility, advancement, and the nature of the work itself. So far, this appears to parallel Maslow's theory of a need hierarchy. However, Herzberg added a new dimension to this theory by proposing a two-factor model of motivation, based on the notion that the presence of one set of job characteristics or incentives lead to worker satisfaction at work, while another and separate set of job characteristics lead to dissatisfaction at work. Thus, satisfaction and dissatisfaction are not on a continuum with one increasing as the other diminishes, but are independent phenomena. This theory suggests that to improve job attitudes and productivity, administrators must recognize and attend to both sets of characteristics and not assume that an increase in satisfaction leads to an decrease in unpleasurable dissatisfaction. The two-factor, or motivation-hygiene theory, developed from data collected by Herzberg from interviews with a large number of engineers and accountants in the Pittsburgh area. From analyzing these interviews, he found that job characteristics related to what an individual does that is, to the nature of the work she performs apparently have the capacity to gratify such needs as achievement, competency, status, personal worth, and self-realization, thus making her happy and satisfied. However, the absence of such gratifying job characteristics does not appear to lead to unhappiness and dissatisfaction. Instead, dissatisfaction results from unfavorable assessments of such job-related factors as company policies, supervision, technical problems, salary, interpersonal relations on the job,

and working conditions. Thus, if management wishes to increase satisfaction on the job, it should be concerned with the nature of the work itself the opportunities it presents for gaining status, assuming responsibility, and for achieving self-realization. If, on the other hand, management wishes to reduce dissatisfaction, then it must focus on the job environment policies, procedures, supervision, and working conditions If management is equally concerned with both (as is usually the case), then managers must give attention to both sets of job factors. The theory was based around interviews with 203 American accountants & engineers in Pittsburgh, chosen because of their professions' growing importance in the business world. The subjects were asked to relate times when they felt exceptionally good or bad about their present job or any previous job, and to provide reasons, and a description of the sequence of events giving rise to that positive or negative feeling. Here is the description of this interview analysis: Briefly, we asked our respondents to describe periods in their lives when they were exceedingly happy and unhappy with their jobs. Each respondent gave as many "sequences of events" as he could which met certain criteria including a marked change in feeling, a beginning and an end, and contained some substantive description other than feelings and interpretations.... The proposed hypothesis appears verified. The factors on the right that led to satisfaction (achievement, intrinsic interest in the work, responsibility, and advancement) are mostly unipolar; that is, they contribute very little to job dissatisfaction. Conversely, the dis-satisfiers (company policy and administrative practices, supervision, interpersonal relationships, working conditions, and salary) contribute very little to job satisfaction.

Two Factor Theory distinguishes between:

Motivators (e.g. challenging work, recognition, responsibility) which give positive satisfaction, arising from intrinsic conditions of the job itself, such as recognition, achievement, or personal growth. Hygiene factors (e.g. status, job security, salary and fringe benefits) which do not give positive satisfaction, although dissatisfaction results from their absence. These are extrinsic to the work itself, and include aspects such as company policies, supervisory practices, or wages/salary.

Essentially, hygiene factors are needed to ensure an employee is not dissatisfied. Motivation factors are needed in order to motivate an employee to higher performance, Herzberg also further classified our actions and how and why we do them, for example, if you perform a work related action because you have to then that is classed as movement, but if you perform a work related action because you want to then that is classed as motivation. Unlike Maslow, who offered little data to support his ideas, Herzberg and others have presented considerable empirical evidence to confirm the motivation-hygiene theory. Their work, however, has been criticized on methodological grounds. Nevertheless, Herzberg and his associates have rendered a valuable service to science and to management through their efforts to apply scientific methods to understanding complex motivational problems at work and have stimulated others to continue the search.

Clayton Alderfer, expanding on Maslow's hierarchy of needs, created the ERG theory (existence, relatedness and growth). Physiological and safety, the lower order needs, are placed in the existence category, while love and self esteem needs are placed in the relatedness category. The growth category contains our self-actualization and self-esteem needs.

Theory X and Theory Y are theories of human motivation created and developed by Douglas McGregor at the MIT Sloan School of Management in the 1960s that have been used in human resource management, organizational behavior, organizational communication and organizational development. They describe two very different attitudes toward workforce motivation. McGregor felt that companies followed either one or the other approach. He also thought that the key to connecting self-actualization with work is determined by the managerial trust of subordinates.

Theory X Under the assumptions of theory X:

Employees inherently do not like work and whenever possible, will attempt to avoid it. Because employees dislike work, they have to be forced, coerced or threatened with punishment to achieve goals. Employees avoid responsibilities and do not work fill formal directions are issued. Most workers place a greater importance on security over all other factors and display little ambition. In this theory, which many managers practice, management assumes employees are inherently lazy and will avoid work if they can. They inherently dislike work. Because of this, workers need to be closely supervised and comprehensive systems of controls developed. A hierarchical structure is needed with narrow span of control at each and every level. According to this theory, employees will show little ambition

without an enticing incentive program and will avoid responsibility whenever they can. According to Michael J. Papa, if the organizational goals are to be met, theory X managers rely heavily on threat and coercion to gain their employee's compliance. Beliefs of this theory lead to mistrust, highly restrictive supervision, and a punitive atmosphere. The Theory X manager tends to believe that everything must end in blaming someone. He or she thinks all prospective employees are only out for themselves. Usually these managers feel the sole purpose of the employee's interest in the job is money. They will blame the person first in most situations, without questioning whether it may be the system, policy, or lack of training that deserves the blame. A Theory X manager believes that his or her employees do not really want to work, that they would rather avoid responsibility and that it is the manager's job to structure the work and energize the employee. One major flaw of this management style is it is much more likely to cause Diseconomies of Scale in large businesses.

Theory Y In contrast under the Assumptions of Theory Y:

Physical and mental effort at work is as natural as rest or play. People do exercise self-control and self-direction and if they are committed to those goals. Average human beings are willing to take responsibility and exercise imagination, ingenuity and creativity in solving the problems of the organization. That the way the things are organized, the average human beings brainpower is only partly used. In this theory, management assumes employees may be ambitious, selfmotivated, and exercise self-control. It is believed that employees enjoy their mental and physical work duties. According to Papa, to them work is as natural as play. They possess the ability for creative problem solving, but their talents are underused in most organizations. Given the proper conditions, theory Y managers believe that employees will learn to seek out and accept responsibility and to exercise self-control and selfdirection in accomplishing objectives to which they are committed. A Theory Y manager believes that, given the right conditions, most people will want to do well at work. They believe that the satisfaction of doing a good job is a strong motivation. Many people interpret Theory Y as a positive set of beliefs about workers. A close reading of The Human Side of Enterprise reveals that McGregor simply argues for managers to be

open to a more positive view of workers and the possibilities that this creates. He thinks that Theory Y managers are more likely than Theory X managers to develop the climate of trust with an employee that is required for human resource development. It's here through human resource development that is a crucial aspect of any organization. This would include managers communicating openly with subordinates, minimizing the difference between superior-subordinate relationships, creating a comfortable environment in which subordinates can develop and use their abilities. This climate would include the sharing of decision making so that subordinates have say in decisions that influence them.

Goal-setting theory is based on the notion that individuals sometimes have a drive to reach a clearly defined end state. Often, this end state is a reward in itself. A goal's efficiency is affected by three features: proximity, difficulty and specificity. An ideal goal should present a situation where the time between the initiation of behavior and the end state is close. This explains why some children are more motivated to learn how to ride a bike than mastering algebra. A goal should be moderate, not too hard or too easy to complete. In both cases, most people are not optimally motivated, as many want a challenge (which assumes some kind of insecurity of success). At the same time people want to feel that there is a substantial probability that they will succeed. Specificity concerns the description of the goal in their class. The goal should be objectively defined and intelligible for the individual. A classic example of a poorly specified goal is to get the highest possible grade. Most children have no idea how much effort they need to reach that goal.

Douglas Vermeeren, has done extensive research into why many people fail to get to their goals. The failure is directly attributed to motivating factors. Vermeeren states that unless an individual can clearly identify their motivating factor or their significant and meaningful reasons why they wish to attain the goal, they will never have the power to attain it.

Expectancy theory is about choice. It explains the processes that an individual undergoes to make choices. In organizational behavior study, expectancy theory is a motivation theory first proposed by Victor Vroom of the Yale School of Management. Expectancy theory predicts that employees in an organization will be motivated when they believe that:

putting in more effort will yield better job performance better job performance will lead to organizational rewards, such as an increase in salary or benefits These predicted organizational rewards are valued by the employee in question.

"This theory emphasizes the need for organizations to relate rewards directly to performance and to ensure that the rewards provided are those rewards deserved and wanted by the recipients." - Emphasizes self interest in the alignment of rewards with employee's wants. - Emphasizes the connections among expected behaviors, rewards and organizational goals Vroom's theory assumes that behavior results from conscious choices among alternatives whose purpose it is to maximize pleasure and to minimize pain. Together with Edward Lawler and Lyman Porter, Vroom suggested that the relationship between people's behavior at work and their goals was not as simple as was first imagined by other scientists. Vroom realized that an employee's performance is based on individual factors such as personality, skills, knowledge, experience and abilities. Victor H. Vroom introduces three variables within the expectancy theory which are valence (V), expectancy (E) and instrumentality (I). The three elements are important behind choosing one element over another because they are clearly defined: effort-performance expectancy (E>P expectancy), performance-outcome expectancy (P>O expectancy). E>P expectancy: Our assessment of the probability our efforts will lead to the required performance level. P>O expectancy: Our assessment of the probability our successful performance will lead to certain outcomes.

Vrooms model is based on three concepts:

1. Valence - Strength of an individuals preference for a particular outcome. For the valence to be positive, the person must prefer attaining the outcome to not attaining it. 2. Instrumentality Means of the first level outcome in obtaining the desired second level outcome; the degree to which a first level outcome will lead to the second level outcome. 3. Expectancy - Probability or strength of belief that a particular action will lead to a particular first level outcome. Vroom says the product of these variables is the motivation.

In order to enhance the performance-outcome tie, managers should use systems that tie rewards very closely to performance. Managers also need to ensure that the rewards provided are deserved and wanted by the recipients. In order to improve the effort-performance tie, managers should engage in training to improve their capabilities and improve their belief that added effort will in fact lead to better performance.

Equity Theory attempts to explain relational satisfaction in terms of perceptions of fair/unfair distributions of resources within interpersonal relationships. Equity theory is considered as one of the justice theories, It was first developed in 1962 by John Stacey Adams, a workplace and behavioral psychologist, who asserted that employees seek to maintain equity between the inputs that they bring to a job and the outcomes that they receive from it against the perceived inputs and outcomes of others (Adams, 1965). The belief is that people value fair treatment in which causes them to be motivated to keep the fairness maintained within the relationships of their co-workers and the organization. The structure of equity in the workplace is based on the ratio of inputs to outcomes. Inputs are the contributions made by the employee for the organization; this includes the work done by the employees and the behavior brought by the employee as well as their skills and other useful experiences the employee may contribute for the good of the company.
Definition of Equity

An individual will consider that he is treated fairly if he perceives the ratio of his inputs to his outcomes to be equivalent to those around him. Thus, all else being equal, it would be acceptable for a more senior colleague to receive higher compensation, since the value of his

experience (an input) is higher. The way people base their experience with satisfaction for their job is the make comparisons with themselves to the people they work with. If an employee notices that another person is getting more recognition and rewards for their contributions, even when both have done the same amount and quality of work, it would persuade the employee to be dissatisfied. This dissatisfaction would result in the employee feeling underappreciated and perhaps worthless. This is in direct contrast with the idea of equity theory, the idea is to have the rewards (outcomes) be directly related with the quality and quantity of the employees contributions (inputs). If both employees were perhaps rewarded the same, it would help the workforce realize that the organization is fair, observant, and appreciative. This can be illustrated by the following equation:
Inputs and outcomes

Inputs

Inputs are defined as each participants contributions to the relational exchange and are viewed as entitling him/her to rewards or costs. The inputs that a participant contributes to a relationship can be either assets entitling him/her to rewards or liabilities - entitling him/her to costs. The entitlement to rewards or costs ascribed to each input vary depending on the relational setting. In industrial settings, assets such as capital and manual labor are seen as "relevant inputs" inputs that legitimately entitle the contributor to rewards. In social settings, assets such as physical beauty and kindness are generally seen as assets entitling the possessor to social rewards. Individual traits such as boorishness and cruelty are seen as liabilities entitling the possessor to costs (Walster, Traupmann & Walster, 1978). Inputs typically include any of the following:

Time Effort Loyalty Hard Work Commitment Ability Adaptability Flexibility Tolerance

Determination Enthusiasm Personal sacrifice Trust in superiors Support from co-workers and colleagues Skill

Outcomes Outputs are defined as the positive and negative consequences that an individual perceives a participant has incurred as a consequence of his/her relationship with another. When the ratio of inputs to outcomes is close, than the employee should have much satisfaction with their job. Outputs can be both tangible and intangible (Walster, Traupmann & Walster, 1978). Typical outcomes include any of the following: Job Security Esteem Salary Employee benefit Expenses Recognition Reputation Responsibility Sense of achievement Praise Thanks Stimuli Propositions Equity Theory consists of four propositions: Individuals seek to maximize their outcomes (where outcomes are defined as rewards minus costs) Groups can maximize collective rewards by developing accepted systems for equitably apportioning rewards and costs among members. Systems of equity will evolve within groups, and members will attempt to induce other members to accept and adhere to these systems. The only way groups can induce members to equitably behave is by making it more profitable to behave equitably than inequitably. Thus, groups will generally reward members who treat others equitably and generally punish (increase the cost for) members who treat others inequitably. When individuals find themselves participating in inequitable relationships, they become distressed. The more inequitable the relationship, the more distress individuals feel. According to equity theory, both the person who gets too much and the person who gets

too little feel distressed. The person who gets too much may feel guilt or shame. The person who gets too little may feel angry or humiliated. Individuals who perceive that they are in an inequitable relationship attempt to eliminate their distress by restoring equity. The greater the inequity, the more distress people feel and the more they try to restore equity. (Walster, Traupmann and Walster, 1978)

Equity Theory in Business

Equity Theory has been widely applied to business settings by Industrial Psychologists to describe the relationship between an employee's motivation and his or her perception of equitable or inequitable treatment. In a business setting, the relevant dyadic relationship is that between employee and employer. As in marriage and other contractual dyadic relationships, Equity Theory assumes that employees seek to maintain an equitable ratio between the inputs they bring to the relationship and the outcomes they receive from it (Adams, 1965). Equity Theory in business, however, introduces the concept of social comparison, whereby employees evaluate their own input/output ratios based on their comparison with the input/outcome ratios of other employees (Carrell and Dittrich, 1978). Inputs in this context include the employees time, expertise, qualifications, experience, intangible personal qualities such as drive and ambition, and interpersonal skills. Outcomes include monetary compensation, perquisites (perks), benefits, and flexible work arrangements. Employees who perceive inequity will seek to reduce it, either by distorting inputs and/or outcomes in their own minds ("cognitive distortion"), directly altering inputs and/or outcomes, or leaving the organization (Carrell and Dittrich, 1978). Thus, the theory has wide-reaching implications for employee morale, efficiency, productivity, and turnover.

Reinforcer: Any stimulus that, when contingent on a response, serves to increase the rate of responding Reinforcement theory: The main idea that reinforcers can control behavior. The definition has two main components: Contingency, where the occurrence of the reinforcer depends on the occurrence of the learner's response, and Rate of Responding, where the reinforcer serves to increase the learner's rate of responding.

Schedules of Reinforcement
When the desired behavior is gained as a result of reinforcement, reinforcing again and again becomes too time-consuming. An abrupt stoppage of the reinforcement would cause the performance of the desired behavior to weaken. Therefore, a gradual thinning of reinforcement is necessary. Schedules of reinforcement are the rules for how a reinforcer is presented following a behavior. They can be defined in terms of time (interval) or number of responses (ratio). Fixed interval

Reinforces behaviors at a specific time (ex. Every 5 minutes). One reinforcer would be delivered if at least one correct response was made during the time interval. The reinforced can become aware of the time length and, knowing he has to perform just once, will wait for the time limit to run out before beginning his next task. Example: Rewarded at the end of every class period for good behavior Fixed ratio Reinforces behaviors after a specific number of responses (ex. Every 5th response). The key here is to seek the right amount of work given the reward schedule. Normally a ratio schedule produces consistent work. Example: Rewarded for every homework assignment turned in

Variable interval Reinforces behaviors at various time intervals randomly. The student's behavioral performance is is higher and steadier because he cannot determine the next time interval that will be used to make the reinforcement available. Example: Rewarded at different times of the day for good behavior Variable ratio Reinforces behaviors after various numbers of responses randomly. It is done in such a manner that the reinforcer is not predictable, so the student maintains or even increases the pace of his output. Example: Rewarded for some homework assignments turned in

We would like to conclude on a special note regarding very keen and sharp completive environment in which Motivation is placed in Pakistan. We conclude that employee motivation is a most sensitive factor in management, employee wants satisfaction, and reward opportunity, but major problem is that there is a conflict between employer & employee empolyee nees job securityand they want to full fill basic needs we can reduce de motivation facter with providing maximum benefits & good relationship.

 Motivation in pakistan company now required to full fill employee need,

Motivation can run an organization successfully.

Employer must be mental association with people.

Www.yahoo.com Www.wiki-answer.org www.motivation123.com

Q#1) As a manager you know that without motivation we cannot run a company suecssfully,so tell me what are the problem that you are face during management. a) b) c) d) Dis- satisfactiom of employee Employee not listen carefully Confilct between You and empolyee Other.__________________________

Q#2) As a manager what facter that you like to see in your employee a) Discipline b) Hard worker c) Self motvation Q#3) how can we reduce de-motivation a) b) c) d) Through Reward System Good relationship Maximum Full fill needs of employee Other.___________________________

Q#4 What do you think about motivation theory ,Which theory is practical Implication. _____________________________________

Q#1) As a Empolyee What are the problem that you face mostly a) b) c) d) No reward system More working hours Low rate of wages Other.____________________________

Q#2 What would you like to change in your company employement a) Employer must be co-operative b) Increase in salary c) Other._____________________________ Q#3 Whats your major need or problem that you want to solve? __________________________________ Q11) Personal Information Name: ____________ Sex: ______________ Age: _____________ Qualification: ____________

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