CHAROTAR UNIVERSITY OF SCIENCE AND TECHNOLOGY

INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT STUDIES (IIIM)

CHANGA

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FACULTY NAME: MARGI MEHTA

CLASS: MBA
SEMESTER: I
SUBJECT CODE: MBUC505
SUBJECT NAME: MANAGEMENT PROCESS & ORGANIZATIONAL BEHAVIOUR

MODULE 3: ORGANIZATIONAL BEHAVIOUR &

MOTIVATION

INTRODUCTION TO ORGANIZATIONAL BEHAVIOUR

Few things touch our daily life as much as organisations do. We depend on organisations
for education, employment, food, clothing, shelter, health, wealth, recreation, travel, and
much more. They touch every aspect of human life, as told in the opening case, from birth
to death. In fact, life becomes unliveable sans organisations.
But most of us have a casual attitude towards organisations. We notice their importance
when they fail to deliver their goods and services to us. For example, when trains stop
running we take notice of the indifferent services rendered by rail ways. When electricity
fails, we blame the State Electricity Board for its incompetent and corrupt administration.
When doctors in a government hospital strike work, we blame the government, and so on.
It is essential for us to understand what these organisations are, how do they function and
how to make them more effective in their functioning.

It is essential that organisations should function effectively if they are to be useful.

Ineffective organisations are no better than sick people. Organisations are said to be
effective when they produce quality goods and services at reasonable cost without
compromising on profit-making. The other requirement of effectiveness is that the
organisations should seek to satisfy their diverse stakeholders. Stakeholders are all the
people and groups affected by, or that can affect, an organisation’s decisions, policies, and
operations. It is the duty of managers to keep all the stakeholders satisfied and the extent
satisfaction derived by stakeholders speaks about the effectiveness of an organisation.
Organisational Behaviour (OB) helps firms achieve effectiveness in their activities.
Organisations, as stated earlier, comprise people and OB helps in utilising these resources
for achieving organısational effectiveness. People generally possess these physical
strength, skills of some for achieving kind, executive qualities and organising abilities. OB
helps harness these qualities and use them for achieving organisational goals.

Definition and Meaning of OB

The definitions on OB are many. However, three features need to be emphasised in any
definition:

 OB is the study of human behaviour;

 The study is about behaviour in organisations; and
 Knowledge about human behaviour would be useful in improving
an organisation's effectiveness.
Combining the above three features, OB may be understood to be the study of
human behaviour in organisational settings, of the interface between human behaviour
and the organisation, and of the organisation itself. Knowledge gained from such a study
is useful in improving organisational effectiveness. The following definitions are
appropriate:

OB refers to the behaviour of individuals and groups within organisations and the interaction
between organisational members and their external environments.

OB is a field of study that investigates the impact that individuals, groups and structure have on
behaviour within organisations for the purpose of applying such knowledge towards improving
an organisation's effectiveness.

To sum up. OB obviously comprises individual behaviour, group behaviour and of the
organisation itself. Understanding of the subject is complete when all the three are studied
carefully. The study of individual behaviour alone is incomplete because the actions of the
employee influence and are influenced by the organisation where he or she works. Again,
studying only organisations without learning about the people amounts to looking at only
part of the picture.
NATURE OF OB

(1) Multidisciplinary Approach: OB borrows concepts from various fields such as

psychology (study of individual behaviour), sociology (study of groups), anthropology
(study of culture), and political science (study of power and politics).

Example: When a company trains employees using motivation theories from

psychology and also uses sociology concepts to improve teamwork.

(2) Behavioural Aspect of Management: OB focuses on understanding human behaviour

within an organizational setting—how people think, feel, and act at work, both
individually and in groups.

Example: A manager noticing that a normally active employee is quiet during meetings
and finding out that unclear instructions are causing the behaviour.

(3) Goal-Oriented: The ultimate aim of OB is to make organizations more effective. By

understanding behaviour, managers can guide employees toward achieving company
goals.

Example: Using incentive programs to boost sales targets.

(4) Human-Centered: OB treats employees as the most important resource of the

organization. It focuses on their satisfaction, development, and well-being because
happy employees are more productive.

Example: Offering flexible work-from-home options to reduce stress.

(5) Both Science and Art: OB is a science because it is based on research, theories, and
facts. It is also an art because applying these ideas requires personal skills, judgment,
and creativity.

Example: A manager uses research-based conflict resolution techniques but also

adapts them according to the personalities involved.

SCOPE OF ORGANIZATIONAL BEHAVIOUR

(1) Individual Behaviour: This includes understanding personality, perception, attitudes,

motivation, and learning patterns of employees.
 Example: Some employees prefer detailed instructions, while others like freedom to
explore—knowing this helps a manager assign work effectively.

(2) Group Behaviour: People often work in teams, so OB studies group dynamics,
leadership styles, communication patterns, and conflict resolution.

Example: Marketing and sales teams holding joint meetings to avoid

miscommunication.

(3) Organizational System: OB looks at the bigger picture—organizational structure,

culture, policies, and processes that influence behaviour.

Example: A company shifting from a rigid hierarchy to a team-based system to

encourage faster decision-making.

(4) Interface with External Environment: OB also studies how outside factors—
economic changes, cultural differences, or technological shifts—affect how people
work.

Example: Adapting policies for a more diverse workforce after hiring employees from
different regions.

IMPORTANCE OF ORGANIZATIONAL BEHAVIOUR

1. Improves Employee Performance: By knowing what motivates employees, managers

can design rewards and work conditions that bring out their best.

Example: Giving recognition awards to high performers to keep morale high.

2. Enhances Teamwork: OB teaches how to build trust and cooperation among team
members, leading to better results.

Example: Organizing team outings to strengthen bonds between members.

3. Effective Change Management: People often resist change. OB helps managers

understand and reduce this resistance through communication and participation.
 Example: Offering training before introducing new software so employees feel
confident using it.

4. Better Leadership: OB explains different leadership styles and how they impact
employees, helping managers choose the most effective approach.

Example: A transformational leader inspiring the team to come up with innovative

marketing ideas.

5. Improved Communication: OB encourages open, two-way communication, which

prevents misunderstandings and increases trust.

Example: Weekly feedback sessions where employees share ideas with managers.

6. Organizational Effectiveness: When individuals and teams work in harmony with the
organization’s goals, performance improves at all levels.

Example: Aligning employee KPIs with the company’s mission so everyone works
toward the same targets.

INDIVIDUAL BEHAVIOUR

Individual behaviour at work is shaped by personal factors, environment, and

organizational culture. No two individuals behave exactly the same in similar situations.
Managers must understand these differences to predict and influence behaviour
effectively. Key factors include:

1. Biographical Characteristics
o Age – Younger employees may be more energetic and risk-taking; older
employees bring experience and stability.

Example: A young marketing executive may quickly adopt new social media
trends, while a senior employee uses past client-handling experience to build
trust.

o Gender – Skills like problem-solving or leadership are not gender-specific.

Example: Women fighter pilots in the Indian Air Force show equal capability in
high-pressure roles.

o Religion & Culture – Shape work ethics and values.

 Example: An employee from a culture valuing punctuality may see late arrivals
as unprofessional.

o Marital Status – Married employees often show fewer absences and more job
stability due to family responsibilities.

o Tenure – Longer service is linked to higher job satisfaction and lower turnover.

Example: A long-term employee may be more committed during organizational

change.

2. Ability
o Intellectual Ability – Skills like reasoning, verbal comprehension, and memory
help in problem-solving roles.

Example: An R&D analyst using inductive reasoning to develop a new product.

o Physical Ability – Strength, coordination, and stamina are essential for jobs
like defence or manufacturing.

Example: A warehouse worker’s physical endurance for loading goods.

3. Emotional Intelligence (EI)

o The ability to understand and manage one’s own emotions and those of others.
Example: A team leader calming conflicts during a stressful deadline.

4. Learned Characteristics

These include personality, perception, learning, and motivation—each influencing

how individuals behave at work. These will be discussed in detail in their respective
sections of the syllabus.

Example: A motivated employee with a positive perception of management is likely

to contribute more effectively to team goals.

PERSONALITY AND OB

Personality is a very complex and multidimensional construct of a human being. No

common definition of personality has so far been arrived at. Every individual defines
personality in different way which includes trait factors and physical appearance.
“Personality is a dynamic organization within an individual of those psychological systems that
determines his unique adjustment with the environment. It is a sum total of ways in which an
individual reacts and interacts with others.” As far as physical aspect is concerned it relates
to individual charm, attitude while dealing with others and smiling face can also be
included into personality.

Personality refers to the consistent patterns of thinking, feeling, and behaving that make
each individual unique. In OB, understanding personality helps managers predict how
employees will respond to tasks, teams, and workplace changes.

One widely accepted framework is the OCEAN model, also called the Big Five
Personality Traits:

1. Openness to Experience

 Meaning: Degree of curiosity, creativity, and willingness to try new things.

 High Openness: Imaginative, open to change, enjoys variety, experiments with

new ideas. For example, in a tech startup, a highly open product developer may
experiment with AI-based customer service tools before competitors.

 Low Openness: Prefers routine, traditional approaches, and familiar tasks.

Example in OB: A finance executive sticking to tried-and-tested accounting methods
despite software upgrades.

Impact on OB: High openness supports innovation and adaptability in fast-changing

markets, while low openness may ensure consistency in roles where stability is critical.

2. Conscientiousness

 Meaning: Level of organization, responsibility, reliability, and self-discipline.

 High Conscientiousness: Structured, detail-oriented, meets deadlines, follows

rules. For example, a supply chain manager who creates accurate inventory forecasts
and ensures deliveries are always on time.
 Low Conscientiousness: Less focused, may procrastinate, struggles with planning.
Example in OB: A sales rep forgetting to follow up on leads, resulting in lost
business.

Impact on OB: High conscientiousness is often linked to better job performance and fewer
errors. In critical roles like finance or quality control, it directly improves organizational
efficiency.
3. Extraversion

 Meaning: Degree of sociability, assertiveness, and comfort in social settings.

 High Extraversion: Outgoing, energetic, enjoys teamwork, good at persuasion.

For example, a marketing executive who thrives at networking events, generating
leads through personal interactions.

 Low Extraversion (Introversion): Prefers solitary work, reflective, focused on

deep thinking. For example, a software developer excelling in coding tasks that
require long, uninterrupted focus.

Impact on OB: Extraverts are suited for customer-facing, sales, and leadership roles, while
introverts may excel in analytical or research-based jobs.

4. Agreeableness

 Meaning: Tendency to be cooperative, trusting, and helpful.

 High Agreeableness: Compassionate, empathetic, avoids conflict, fosters

teamwork. For example, a project coordinator who mediates between departments
to ensure smooth collaboration.

 Low Agreeableness: More competitive, critical, and less willing to compromise.

For example, a tough negotiator in procurement who prioritizes cost savings over
vendor relationships.

Impact on OB: High agreeableness helps in building trust and maintaining harmony,
especially in service-oriented roles. Low agreeableness may be useful in jobs requiring
tough decision-making.

5. Neuroticism (Emotional Stability)

 Meaning: Tendency to experience negative emotions like anxiety, anger, or

depression. Lower neuroticism means higher emotional stability.

 Low Neuroticism (High Stability): Calm, handles stress well, resilient under
pressure. For example, a crisis manager who keeps a clear head during a company
PR disaster.
  High Neuroticism: Easily stressed, moody, struggles with criticism.
For example, an employee who becomes overly anxious before every performance
review.

Impact on OB: Emotionally stable employees adapt better to change, handle workplace
challenges calmly, and maintain consistent performance.

Why OCEAN Matters in OB

 Role Allocation: Managers can match people’s personality strengths to job

requirements.
Example: A conscientious person in compliance, an extravert in sales.

 Team Composition: Balancing traits improves team performance.

Example: Pairing a high-openness creative designer with a high-conscientiousness
project manager ensures both innovation and timely delivery.

 Predicting Behaviour: Personality insights help anticipate responses to stress,

change, or collaboration.

PERCEPTION AND OB

Perception is the process by which individuals select, organize, and interpret sensory
information to give meaning to their environment. It’s not just what we see or hear — it’s
how we interpret it based on our experiences, values, and attitudes.

In OB, perception matters because how employees perceive their work, leaders, policies,
and colleagues directly affects their motivation, satisfaction, and behaviour.

Example: Two employees receive the same feedback from a manager. One perceives it as
constructive guidance and feels motivated, while the other perceives it as criticism and
feels demoralized.

Factors Affecting Perception

1) The Perceiver – Personal characteristics like attitude, motives, interests, past

experiences, and expectations influence perception.
 Example: A manager with past bad experiences in remote work may perceive current
remote employees as less productive.

2) The Target – The object, person, or event being observed also affects perception.

Example: A well-dressed candidate in an interview may be perceived as more

competent than one dressed casually, regardless of actual skills.

3) The Situation – Context, timing, and environment shape how we interpret things.

Example: A manager being strict during a crisis may be perceived as disciplined, but in
normal times as unnecessarily harsh.

Perceptual Errors in Organizational Behaviour

In organizations, perceptual errors occur when people misinterpret others or situations due
to mental shortcuts and personal biases. These distortions can affect hiring, appraisals,
promotions, teamwork, and employee relationships.

1. Stereotyping

Judging a person based on generalized beliefs about the group they belong to, rather than
their individual qualities. It happens because our brain simplifies information by
categorizing people into groups.

OB Example:

 Assuming all young employees are great with technology, so a manager assigns
them all IT-related tasks, ignoring older employees who may be equally skilled.
 Believing women are less suitable for field sales jobs because of traditional gender
roles.

Impact: Can lead to unfair treatment, missed opportunities, and workplace

discrimination.

2. Halo Effect

Forming a positive overall impression of someone based on one strong quality and letting
it influence all other judgments. This occurs when one standout trait dominates our
thinking.

OB Example:
  A manager finds an employee’s presentation skills impressive and assumes they
must also be good at report writing, planning, and teamwork — without checking.

Impact: May lead to overrating employees in areas where they’re actually average or
weak.

3. Horn Effect (Opposite of Halo Effect)

The opposite of the halo effect — forming a negative impression of someone based on one
weakness and letting it overshadow their other qualities. This happens when one flaw
creates a lasting bias.

OB Example:

 An employee is late once to an important meeting, and the manager starts viewing
them as generally irresponsible — even if they have a strong track record otherwise.

Impact: Leads to undervaluing talent and damaging morale.

4. Selective Perception

Focusing only on information that confirms existing beliefs and ignoring evidence that
challenges them. It occurs because people prefer to avoid information that creates mental
conflict.

OB Example:

 A manager believes that remote workers are less productive, so they notice only
delays from remote employees but ignore timely or early deliveries.

Impact: Encourages bias, reinforces incorrect beliefs, and may cause unfair
evaluations.

5. Projection

Attributing one’s own feelings, motives, or traits to others, assuming they think or act the
same way. This happens because people often use themselves as a reference point for
judging others.

OB Example:

 A competitive sales manager assumes all team members are equally driven by
competition and ignores those who value collaboration more than rivalry.

Impact: Can lead to mismatched role assignments and misunderstandings.

6. First Impression Error (Primacy Effect)

Allowing an initial impression — whether positive or negative — to shape all future

judgments. It occurs because first impressions are emotionally strong and hard to change.

OB Example:

 A candidate makes a nervous mistake at the start of an interview, and the panel
continues to see them as underconfident even after they answer later questions well.

Impact: Prevents objective evaluation and can harm deserving candidates.

7. Recency Effect

Placing more weight on recent behaviour or events than on a person’s long-term

performance. It happens because recent information is fresher and easier to recall.

OB Example:

 In performance reviews, a manager rates an employee highly just because they

completed a project successfully last week, ignoring earlier months of average
performance.

Impact: Leads to inaccurate appraisals and possibly unfair rewards.

8. Attribution Errors

Misjudging the reasons for someone’s behaviour due to bias in explaining causes. This
occurs because people tend to overemphasize personal traits and underemphasize
situational factors, or vice versa.

 Fundamental Attribution Error: Blaming personal factors instead of situational

ones.
Example: Assuming an employee missed a deadline due to laziness, not last-minute
client changes.

 Self-Serving Bias: Taking credit for success but blaming external factors for failure.
Example: A salesperson credits skill for high sales but blames the economy for low
sales.
LEARNING

In OB, learning is a relatively permanent change in an individual’s behaviour, knowledge,

or skills that occurs as a result of experience, practice, or training. It is not just gaining
knowledge — learning is reflected in actual behaviour at work.

Example: An employee learning a new software tool through training and then applying it
effectively in their daily tasks.

In organizations, learning is crucial because it helps employees adapt to change, improve

performance, and develop new skills. Managers use learning principles to design training
programs, motivate employees, and modify behaviours to match organizational goals.

Why Learning Matters in OB:

1. Improves Performance: Well-trained employees perform tasks more effectively.

2. Helps Adapt to Change: In dynamic industries, continuous learning ensures
employees keep up with technology and market shifts.
3. Shapes Workplace Behaviour: Learning influences attitudes, work habits, and
interpersonal relationships.
4. Supports Career Growth: Encourages self-development and long-term
commitment.

Theories of Learning in Organizational Behaviour

1. Classical Conditioning (Stimulus–Response Learning)

 Concept: Classical conditioning is learning by association, where a natural,

involuntary response becomes linked to a new, previously unrelated stimulus. It
works on the principle that if two stimuli are repeatedly presented together, the
response to one will eventually be triggered by the other.

 Origin: Introduced by Ivan Pavlov in his experiment where dogs learned to

salivate (response) at the sound of a bell (conditioned stimulus) because the bell
was repeatedly paired with food (unconditioned stimulus).

 In OB: Often used in conditioning attitudes and behaviours indirectly.

o Example: If every time a manager visits the office, employees are praised for
being organized, employees may automatically tidy their workspace when
they hear the manager is coming — even without direct instruction.
2. Operant Conditioning (Behaviour–Consequence Learning)

 Concept: This is learning through the consequences of behaviour — behaviours

followed by rewards are likely to be repeated, while those followed by punishment
are less likely to occur. It’s based on the idea that behaviour is voluntary and can
be shaped through reinforcement.

 Origin: Developed by B.F. Skinner, who demonstrated that rats could be trained
to press a lever to get food (reward) or avoid a mild electric shock (punishment).

 Types of Reinforcement in OB:

o Positive Reinforcement: Giving a reward (e.g., bonus for meeting sales targets).

o Negative Reinforcement: Removing something unpleasant (e.g., reducing

supervision once an employee proves reliable).
o Punishment: Applying a negative consequence (e.g., warning letter for
misconduct).
o Extinction: Withholding reinforcement to reduce behaviour (e.g., ignoring
constant, unnecessary complaints).

 In OB Example: A call centre manager gives “Employee of the Month”

recognition to top performers to reinforce productivity.

3. Cognitive Learning Theory

 Concept: This theory sees learning as an internal process of thinking, reasoning,

and problem-solving. People don’t just respond to stimuli; they actively interpret
and process information, form mental maps, and apply knowledge to new
situations.

 Origin: Supported by Edward Tolman’s experiments with rats, which showed that
they developed a “cognitive map” of a maze and could find food even when routes
changed.

 In OB:
o Employees learn not only from direct experience but also from
understanding how things work.
o Example: An HR manager studies turnover patterns, identifies causes, and
then develops retention strategies — applying learned knowledge rather
than just reacting to resignations.
4. Social Learning Theory (Observational Learning)

 Concept: People learn by observing others, especially role models, and then
imitating their behaviour if it is seen as successful or rewarded. It combines
behavioural and cognitive elements, emphasizing the role of social interaction in
learning.

 Origin: Developed by Albert Bandura, who showed in his “Bobo doll” experiment
that children imitated aggressive behaviour they saw in adults.

 Key Processes in OB:

1. Attention: The learner must notice the model’s behaviour.

2. Retention: The learner must remember it.
3. Reproduction: The learner must have the ability to perform it.
4. Motivation: The learner must see a reason to adopt it.
 In OB Example: A new sales executive learns persuasive techniques by shadowing
a senior salesperson during client visits.

MOTIVATION MODELS

Motivation is a state of mind, filled with energy and enthusiasm, which drives a person to
work in a certain way to achieve desired goals. Motivation is a force that pushes people to
work with a high level of commitment and focus, even if things are going against them.
Motivation translates into a certain kind of human behaviour. In short, motivation is the
driving force behind human actions.

There are many different forces that guide and direct our motivations. It is important to
ensure that every team member in an organization is motivated and meets the best project
management course bottom line. Various psychologists have studied human behaviour
and have formalized their findings in the form of various motivational theories. These
motivational theories provide insights into the way people behave and what motivates
them.

Motivation theory is a way of looking at the motivation of a person and how this influences
their behaviour, whether for personal or professional reasons. It's important to every aspect
of society but is especially relevant to business and management. Motivation is the key to
more profitable employees, as a motivated employee is more productive.

Motivation is a huge field of study. Psychologists have proposed many different theories
of motivation. Some of the most famous motivational theories include the following:
1. Maslow’s Theory of Hierarchical Needs

Abraham Maslow postulated that a person will be motivated when all his needs are
fulfilled. People do not work for security or money, but they work to contribute and to use
their skills. He demonstrated this by creating a pyramid to show how people are motivated
and mentioned that one cannot ascend to the next level unless lower-level needs are
fulfilled. The lowest level needs in the pyramid are basic needs and unless these lower-
level needs are satisfied people do not look at working toward satisfying the upper-level
needs.

Below is the hierarchy of needs:

 Physiological needs: are basic needs for survival such as air, sleep, food, water,
clothing, and shelter.
 Safety needs: Protection from threats, deprivation, and other dangers (e.g., health,
secure employment, and property)
 Social (belongingness and love) needs: The need for association, affiliation,
friendship, and so on.
 Self-esteem needs: The need for respect and recognition.
 Self-actualization needs: The opportunity for personal development, learning,
and fun/creative/challenging work. Self-actualization is the highest-level need to
which a human being can aspire.
The leader will have to understand at what level the team members are currently, and seek
out to help them to satisfy those specific needs and accordingly work to help fulfil those
needs. This will help the team members perform better and move ahead with the project.
Also, as their needs get fulfilled, the team members will start performing, till the time they
start thinking of fulfilling the next upper level of need as mentioned in the pyramid.

2. Hertzberg’s two-factor Theory

Herzberg theory of motivation is also called Two Factor Theory or Motivator-Hygiene

Theory. Herzberg classified the various factors that can influence motivation at the
workplace into two groups

1) Hygiene Factors – The presence of these factors does not necessarily motivate people
to work hard, but the absence of these will demotivate people at the workplace.
2) Motivational Factors or Motivating Agents or Motivators – The presence of these
factors will motivate people to work hard.

Hygiene Factors

The Herzberg Hygiene factors are mandatory factors without which you cannot motivate
people. These are those factors that are essential for motivation to exist in the workplace.

The existence of Hygiene factors does not necessarily lead to any positive satisfaction,
but the absence of these factors will definitely result in negative satisfaction or
dissatisfaction.

It can be said that Hygiene factors are Physiological and Safety needs that individuals
expect to be fulfilled.

Examples of Hygiene Factors: Personal safety and good working conditions, Company
policies, Fair compensation, Job security, Good relationships at work, Work-life balance,
etc.

Motivating Factors

These factors motivate the employees for better performance as they are perceived as
additional benefits. Motivational factors, if present would lead to positive
satisfaction, however, the Absence of these factors does not necessarily lead to negative
satisfaction or dissatisfaction.

Motivating Factors are also called Motivators or Motivating agents.

Examples of Motivating Factors: Rewards and Recognition, Achievement, Nature of work,
Responsibility, Personal Growth, etc.

3. McClelland’s Theory of Needs

McClelland’s Needs Theory was proposed by a psychologist David McClelland, who

believed that the specific needs of the individual are acquired over a period of time and
gets moulded with one’s experience of the life. McClelland’s Needs Theory is sometimes
referred to as Three Need theory or Learned Needs Theory.

McClelland has identified three basic motivating needs, Viz. Need for Power, Need for
Affiliation and Need for Achievement and, along with his associates performed a
considerable research work on these basic needs.
Need for Power: What is Power? Power is the ability to induce or influence the behaviour
of others. The people with high power needs seek high-level positions in the organization,
so as to exercise influence and control over others. Generally, they are outspoken, forceful,
demanding, practical/realistic-not sentimental, and like to get involved in the
conversations.

Need for Affiliation: People with high need for affiliation derives pleasure from being
loved by all and tend to avoid the pain of being rejected. Since, the human beings are social
animals, they like to interact and be with others where they feel, people accept them. Thus,
people with these needs like to maintain the pleasant social relationships, enjoy the sense
of intimacy and like to help and console others at the time of trouble.

Need for Achievement: McClelland found that some people have an intense desire to
achieve. He has identified the following characteristics of high achievers:

 High achievers take the moderate risks, i.e. a calculated risk while performing the
activities in the management context. This is opposite to the belief that high achievers
take high risk.
 High achievers seek to obtain the immediate feedback for the work done by them, so
as to know their progress towards the goal.
 Once the goal is set, the high achiever puts himself completely into the job, until it gets
completed successfully. He will not be satisfied until he has given his 100% in the task
assigned to him.
 A person with a high need for achievement accomplishes the task that is intrinsically
satisfying and is not necessarily accompanied by the material rewards. Though he
wants to earn money, but satisfaction in the accomplishment of work itself gives him
more pleasure than merely the cash reward.

Hence, McClelland’s Needs Theory posits that the person’s level of effectiveness and
motivation is greatly influenced by these three basic needs.

4. Vroom’s Theory of Expectancy

Vroom’s expectancy theory of motivation says that an individual’s motivation is affected

by their expectations about the future. In his view, an individual’s motivation is affected
by –
  Expectancy: Here the belief is that increased effort will lead to increased
performance i.e., if I work harder then it will be better. This is affected by things
such as:
o Having the appropriate resources available (e.g., raw materials, time)
o Having the appropriate management skills to do the job
o Having the required support to get the job done (e.g., supervisor support, or
correct information on the job)

 Instrumentality: Here the belief is that if you perform well, then the outcome will
be a valuable one for me. i.e., if I do a good job, there is something in it for me.
This is affected by things such as:
o A clear understanding of the relationship between performance and
outcomes – e.g., the rules of the reward ‘game’
o Trust in the people who will take the decisions on who gets what outcome
o Transparency in the process decides who gets what outcome

 Valence: is how much importance the individual places upon the expected
outcome. For example, if someone is motivated by money, he or she might not
value offers of additional time off.

Motivation = V * I * E

DISCLAIMER

This study material is prepared by Margi Mehta. The basic objective of this material is to supplement teaching and
discussions in the classroom in the respective subject. Students are required to go for extra reading in the subject.