UNIT-3

Meaning of Motivation in Management:

In management, motivation refers to the processes and factors that stimulate
employees to take action, engage in their work, and contribute to the
achievement of organizational goals. It involves understanding and addressing
the needs, desires, and expectations of individuals to encourage positive
workplace behaviors.

Importance of Motivation in Management:

1. Increased Productivity: Motivated employees are more likely to be
productive. They invest time and effort into their work, leading to higher
levels of output and efficiency.
2. Employee Engagement: Motivation fosters employee engagement by
creating a positive work environment where individuals feel valued and
connected to the organization's mission and goals.
3. Job Satisfaction: Motivated employees are generally more satisfied with
their jobs. Meeting their personal and professional needs through
motivation can contribute to higher job satisfaction levels.
4. Retention and Loyalty: Motivated employees are more likely to stay with
an organization. A positive and motivating work environment can
contribute to higher levels of employee retention and loyalty.
5. Innovation and Creativity: Motivated individuals are more likely to think
creatively and contribute innovative ideas. A motivated workforce is
essential for fostering a culture of continuous improvement and
innovation.
6. Effective Leadership: Motivation is a key aspect of effective leadership.
Managers who understand how to motivate their team can lead more
successfully and build strong, cohesive workgroups.

Need for Motivation in Management:

1. Individual Differences: Employees in an organization have diverse
backgrounds, personalities, and needs. Motivation helps address these
individual differences and provides a framework for understanding what
drives each employee.
2. Achievement of Organizational Goals: Motivated employees are more
likely to align their efforts with the organization's goals. A motivated
workforce is essential for achieving strategic objectives and maintaining
competitiveness.
3. Conflict Resolution: Motivation can help resolve conflicts by addressing
underlying issues that may be affecting employee morale. Understanding
and meeting the needs of individuals can contribute to a harmonious
work environment.
4. Adaptability to Change: Motivated employees are more adaptable to
organizational changes. Motivation helps individuals see the benefits of
change and encourages a positive attitude towards adaptation.
5. Employee Development: Motivation is linked to personal and
professional development. Managers can use motivation as a tool to
encourage employees to pursue training, education, and skill
development opportunities.
6. Effective Communication: Motivation is closely tied to effective
communication. Managers need to communicate organizational goals,
expectations, and feedback in a way that resonates with employees'
motivational factors.

Motivation
Motivation drives an individual to go beyond the normal level and
achieve success with great energy and enthusiasm. It pushes people to
come out of their comfort zone, perform well, and be productive for
their personal or professional growth. Theories of motivation allow
management to understand the behavior of their employees based on
their passion and interest. They put them in situations that lead to better
progress of individuals and the organization as a whole.

What are Motivation Theories?

Motivation theories refer to the study of the development of inspiration
to achieve certain aims at a professional or personal level. It means the
theories help identify the process of learning and understanding an
individual's motivation to achieve a particular result. Motivation theories
are helpful in several fields, including sociology, psychology, and business
management.
 1. Maslow's Theory Of Hierarchical Needs
Any individual cannot focus on complex requirements until their basic
requirements have not been fulfilled. Maslow’s theory outlines this
hierarchy by creating a pyramid to portray the process of individuals
fulfilling their basic needs before progressing to the higher level needs.
These needs are generally categorized into five types, including
1. Psychological Needs: It is about the basic survival needs that are needed
in our daily life routine, such as food, shelter, water, clothes and so on.
Psychological needs can only be fulfilled by the individual’s income.
2. Safety Requirements: Safety needs refer to the needs that make
individuals feel secure and protected. Protection from deprivation,
employment security, health, property and other factors are included in
safety requirements.
3. Social Needs: They cover the individual’s sense of belonging. Everyone
strives to associate with people and organizations to connect, affiliate,
and join groups and communities. They indulge in team-building
activities.
4. Self-Esteem Needs: Individuals have a quest for recognition and respect.
It makes them feel confident in their area and boosts self-esteem. This
esteem can be fostered by acknowledging the employees' achievements
and providing positive feedback.
5. Self-Actualization Needs: Self-actualization is the highest phase of
Maslow’s theory that trains individuals to have long-term complex goals
to reach this level. The need inspires workers to deliver effective tasks,
learn more, and work for their personal development in challenging
fields.
 2. Mcclelland's Theory Of Needs
The theory affirms the three motivating drivers that every individual
needs, though each would vary with the type of personality. The
management must understand employees' behavior of striving for their
specific needs and motivate them accordingly. The three dominant needs
are as follows:
1. Achievement:
Some people have a hunger to be successful and get recognition. They
always strive for competition to achieve higher standards in their work
environment. Furthermore, they seek quick acknowledgment of their
progress to be consistent in their result-based efforts.
2. Affiliation:
The theory claims that individuals want to be associated and accepted in
groups. The theory aids management in understanding their employees'
striving for growth within the team and building interpersonal skills,
strengthening the relations between coworkers so that they can
encourage them accordingly.
3. Power:
Some desire control of their work and are interested in leading others at
their workplace. They incorporate their leadership skills to distribute
work, coordinate events, and inspire coworkers.
 3. Incentive Theory
The theory determines that rewards influence employees' work
behavior. Therefore, these are the primary motivators for individuals
performing certain tasks and achieving specific results. For instance,
• Bonus: It refers to the reward that is given to the employees for their
exceptional performance.
• Opportunity: It is a type of incentive given to individuals through paid
training or continuing education to enhance their knowledge and build
their skills.
• Promotion: Providing a higher position or salary can make employees
feel their importance and growth.
• Paid off: Providing compensation for taking leave as additional holidays
on emergency needs or planned trips can make employees feel satisfied.
 4. Herzberg's Two-Factor Theory
The theory states that two factors influence satisfaction or
dissatisfaction:
1. Hygiene Factors: Satisfaction can be influenced by factors like
professional relations, policies, working environment, attitude of the
supervisor. If these factors are fine, they can motivate employees and
vice versa.
2. Motivators Factors: Motivating factors, including recognition, personal
growth, achievements, career and responsibilities, are crucial for
employees. Acknowledging these enhances job satisfaction.
 5. McGregor’s Theory X And Theory Y
McGregor introduced Mcgregor’s theory in his book named ‘The Human
Side of Enterprise.’ In the book, he stated two styles of management,
i.e.,
1. Theory X:
The theory incorporates micromanaging individuals who have low
motivation, are incapable of performing well, dislike their work, avoid
work and responsibility and so on. Micromanagement gets the task done
appropriately by using an authoritarian style of management.
2. Theory Y:
The theory states that managers can use a decentralized and
participative management approach for people who are enthusiastic
towards their work, take responsibility for their work or do not need to
be supervised to get the task done appropriately.

Leadership Style
1. Democratic Leadership
A democratic leadership style is where a leader makes decisions based on the
input received from team members. It is a collaborative and consultative
leadership style where each team member has an opportunity to contribute to
the direction of ongoing projects. However, the leader holds the final
responsibility to make the decision.
Democratic leadership is one of the most popular and effective leadership
styles because of its ability to provide lower-level employees a voice making it
equally important in the organization. It is a style that resembles how decisions
are made in company boardrooms. Democratic leadership can culminate in a
vote to make decisions.
Democratic leadership also involves the delegation of authority to other people
who determine work assignments. It utilizes the skills and experiences of team
members in carrying out tasks.
The democratic leadership style encourages creativity and engagement of team
members, which often leads to high job satisfaction and high productivity.
However, establishing a consensus among team members can be time-
consuming and costly, especially in cases where decisions need to be made
swiftly.
2. Autocratic Leadership
Autocratic leadership is the direct opposite of democratic leadership. In this
case, the leader makes all decisions on behalf of the team without taking any
input or suggestions from them. The leader holds all authority and
responsibility. They have absolute power and dictate all tasks to be undertaken.
There is no consultation with employees before a decision is made. After the
decision is made, everyone is expected to support the decision made by the
leader. There is often some level of fear of the leader by the team.
The autocratic type of leadership style can be very retrogressive as it fuels
employee disgruntlement since most decisions would not be in the employees’
interests. An example can be a unilateral increase in working hours or a change
in other working conditions unfavorable to employees but made by leadership
to increase production. Without employee consultation, the manager may not
be fully aware of why production is not increasing, thereby resorting to a
forced increase in working hours. It can lead to persistent absenteeism and
high employee turnover.
However, autocratic leadership can be an effective approach in cases where the
leader is experienced and knowledgeable about the circumstances surrounding
the decision in question and where the decision needs to be made swiftly.
There are other instances where it is also ideal such as when a decision does
not require team input or an agreement to ensure a successful outcome.
3. Laissez-Faire Leadership
Laissez-faire leadership is accurately defined as a hands-off or passive approach
to leadership. Instead, leaders provide their team members with the necessary
tools, information, and resources to carry out their work tasks. The “let them
be” style of leadership entails that a leader steps back and lets team members
work without supervision and free to plan, organize, make decisions, tackle
problems, and complete the assigned projects.
The laissez-faire leadership approach is empowering to employees who are
creative, skilled, and self-motivated. The level of trust and independence given
to the team can prove to be uplifting and productive and can lead to job
satisfaction.
At the same time, it is important to keep such a type of leadership in check as
chaos and confusion can quickly ensue if the team is not organized. The team
can end up doing completely different things contrary to what the leader
expects.
According to research, laissez-faire leadership is the least satisfying and least
effective.
4. Transformational Leadership
Transformational leadership is all about transforming the business or groups by
inspiring team members to keep increasing their bar and achieve what they
never thought they were capable of. Transformational leaders expect the best
out of their team and push them consistently until their work, lives, and
businesses go through a transformation or considerable improvement.
Transformational leadership is about cultivating change in organizations and
people. The transformation is done by motivating team members to go beyond
their comfort zone and achieve much more than their perceived capabilities. To
be effective, transformational leaders should possess high levels of integrity,
emotional intelligence, a shared vision of the future, empathy, and good
communication skills.
Such a style of leadership is often associated with high growth-oriented
organizations that push boundaries in innovation and productivity. Practically,
such leaders tend to give employees tasks that grow in difficulty and deadlines
that keep getting tighter as time progresses.
However, transformational leaders risk losing track of individual learning curves
as some team members may not receive appropriate coaching and guidance to
get through challenging tasks. At the same time, transformational leaders can
lead to high productivity and engagement through shared trust and vision
between the leader and employees.
5. Transactional Leadership
Transactional leadership is more short-term and can best be described as a
“give and take” kind of transaction. Team members agree to follow their leader
on job acceptance; therefore, it’s a transaction involving payment for services
rendered. Employees are rewarded for exactly the work they would’ve
performed. If you meet a certain target, you receive the bonus that you’ve
been promised. It is especially so in sales and marketing jobs.
Transactional leadership establishes roles and responsibilities for each team
member and encourages the work to be completed as scheduled. There are
instances where incentive programs can be employed over and above regular
pay. In addition to incentives, there are penalties imposed to regulate how
work should be done.
Transactional leadership is a more direct way of leadership that eliminates
confusion between leader and subordinate, and tasks are clearly spelled out by
the leader. However, due to its rigid environment and direct expectations, it
may curb creativity and innovation. It can also lead to lower job satisfaction
and high employee turnover.
6. Bureaucratic Leadership
Bureaucratic leadership is a “go by the book” type of leadership. Processes and
regulations are followed according to policy with no room for flexibility. Rules
are set on how work should be done, and bureaucratic leaders ensure that
team members follow these procedures meticulously. Input from employees is
considered by the leader; however, it is rejected if it does not conform to
organizational policy. New ideas flow in a trickle, and a lot of red tape is
present. Another characteristic is a hierarchical authority structure implying
that power flows from top to bottom and is assigned to formal titles.
Bureaucratic leadership is often associated with large, “century-old”
organizations where success has come through the employment of traditional
practices. Hence, proposing a new strategy at these organizations is met with
fierce resistance, especially if it is new and innovative. New ideas are viewed as
wasteful and ineffective, or even downright risky.
Although there is less control and more freedom than an autocratic leadership
style, there is still no motivation to be innovative or go the extra mile. It is,
therefore, not suitable for young, ambitious organizations on a growth path.
Bureaucratic leadership is suitable for jobs involving safety risks or managing
valuable items such as large amounts of money or gold. It is also ideal for
managing employees who perform routine work.
7. Servant Leadership
Servant leadership involves a leader being a servant to the team first before
being a leader. A servant leader strives to serve the needs of their team above
their own. It is also a form of leading by example. Servant leaders try to find
ways to develop, elevate and inspire people following their lead to achieve the
best results.
Servant leadership requires leaders with high integrity and munificence. It
creates a positive organizational culture and high morale among team
members. It also creates an ethical environment characterized by strong values
and ideals.
However, other scholars believe servant leadership may not be suitable for
competitive situations where other leaders compete with servant leaders.
Servant leaders can easily fall behind more ambitious leaders. The servant
leadership style is also criticized for not being agile enough to respond to tight
deadlines and high-velocity organizations or situations.

Other Leadership Styles

1. Coach-style Leadership
Coach-style leadership involves identifying and nurturing individual strengths
and formulating strategies for the team to blend and work well together,
cohesively and successfully.
2. Charismatic Leadership
Charismatic leadership employs charisma to motivate and inspire followers.
Leaders use eloquent communication skills to unite a team towards a shared
vision. However, due to the charismatic leaders’ overwhelming disposition,
they can see themselves as bigger than the team and lose track of the
important tasks.
3. Strategic Leadership
Strategic leadership leads the company’s main operations and coordinates its
growth opportunities. The leader can support multiple employee layers at the
same time.

Quality of Effective leaders

1. Integrity
Integrity is an essential leadership trait for the individual and the organization.
It’s especially important for top-level executives who are charting the
organization’s course and making countless other significant decisions. Our
research has found that integrity may actually be a potential blind spot for
organizations, so make sure your organization reinforces the importance of
honesty and integrity to leaders at various levels.

2. Delegation
Delegating is one of the core responsibilities of a leader, but it can be tricky to
delegate effectively. The goal isn’t just to free yourself up — it’s also to enable
your direct reports to grow, facilitate teamwork, provide autonomy, and lead to
better decision-making. The best leaders build trust in the workplace and on
their teams through effective delegation.

3. Communication
Effective leadership and effective communication are intertwined. The best
leaders are skilled communicators who are able to communicate in a variety of
ways, from transmitting information to inspiring others to coaching direct
reports. And you must be able to listen to, and communicate with, a wide
range of people across roles, geographies, social identities, and more. The
quality and effectiveness of communication among leaders across your
organization directly affects the success of your business strategy, too.

4. Self-Awareness
While this is a more inwardly focused trait, self-awareness and humility are
paramount for leadership. The better you understand yourself and recognize
your own strengths and weaknesses, the more effective you can be as a leader.
Do you know how other people view you or how you show up at work? Take
the time to learn about the 4 aspects of self-awareness and how to strengthen
each component.
5. Gratitude
Being thankful can lead to higher self-esteem, reduced depression and anxiety,
and better sleep. Gratitude can even make you a better leader. Yet few people
regularly say “thank you” in work settings, even though most people say they’d
be willing to work harder for an appreciative boss. The best leaders know how
to show gratitude in the workplace.

6. Learning Agility
Learning agility is the ability to know what to do when you don’t know what to
do. If you’re a “quick study” or are able to excel in unfamiliar circumstances,
you might already be learning agile. But anybody can foster and increase
learning agility through practice, experience, and effort. After all, great leaders
are really great learners.

7. Influence
For some people, “influence” feels like a dirty word. But being able to convince
people through the influencing tactics of logical, emotional, or cooperative
appeals is an important trait of inspiring, effective leaders. Influence is quite
different from manipulation, and it needs to be done authentically and
transparently. It requires emotional intelligence and trust.

8. Empathy
Empathy is correlated with job performance and is a critical part of emotional
intelligence and leadership effectiveness. If you show more inclusive leadership
and empathetic behaviors toward your direct reports, our research shows
you’re more likely to be viewed as a better performer by your boss.
Plus, empathy and inclusion are imperatives for improving workplace
conditions for those around you.

9. Courage
It can be hard to speak up at work, whether you want to voice a new idea,
provide feedback to a direct report, or flag a concern for someone above you.
That’s part of the reason courage is a key trait of good leaders. Rather than
avoiding problems or allowing conflicts to fester, having courage enables
leaders to step up and move things in the right direction. A workplace with high
levels of psychological safety and strong conversational skills across the
organization will foster a coaching culture that supports courage and truth-
telling.

10. Respect
Treating people with respect on a daily basis is one of the most important
things a leader can do. It will ease tensions and conflict, create trust, and
improve effectiveness. Creating a culture of respect is about more than the
absence of disrespect. Respectfulness can be shown in many different ways,
but it often starts with simply being a good listener who truly seeks to
understand the perspectives of others.

Principles of Directing
1. Harmony of objective
2. Maximum individual contribution
3. Unity of command
4. Direct supervision
5. Managerial communication
6. Effective leadership
7. Effective motivation
8. Follow through

✔ 1. Harmony of objective – Principles of Directing

This principle of harmony of objectives states that there should be harmony
between the organization’s objectives and the individual objectives of an
organization. If harmony exists then there is no conflict between the
organization and individual objectives.
With effective use of directing a manager could ensure harmony between
employees’ objectives and the organization’s objectives which results in a high
level of coordination, communication, and a decrease in conflict.

✔ 2. Maximum individual contribution

As per the principle of maximum individual contribution, mean management
should adopt such a policy that maximizes individual potential and facilitate
him or her to contribute more in achieving the organization’s goal.
Through the effective utilization of directing techniques, a manager helps their
subordinate to realize his or her full potential and ensures that subordinates
contribute maximum from their side in order to successfully accomplish the
task.
✔ 3. Unity of command – Principles of Directing
As per this principle, the subordinate should receive a command from only one
superior, and the subordinate should obey it.
According to Henri Fayol unity of command implies that an employee should
receive orders from one superior only.
If subordinates take orders from only one subordinate then it helps to avoid
confusion, and it also reduces the conflict between superiors and subordinates.

✔ 4. Direct supervision – Principles of Directing

In every organization, supervision is done by the manager so that manager can
check whether employees are adhering to his instruction or not. Direct
supervision ensures quick feedback and boosts the morale of the employee.
Supervision involves overseeing work being done by subordinates and ensuring
that they timely and effectively achieve the target.

✔ 5. Managerial communication
As per this principle of directing, good and healthy communication between
employees and management prevents miscommunication or conflicts which
may hinder the functioning of the organization.
Communication is important when it comes to directing the employee.
Communication is responsible for building cordial relations which superiors and
subordinates.

✔ 6. Effective leadership – Principles of Directing

The main role of the manager is to adopt a suitable leadership style that
matches the situation because the leadership style varies with the situation.
A manager is said to be an effective leader when he or she has such qualities
that influence the behavior of his or her subordinates and team members to
push themself further.

✔ 7. Effective Motivation
As per the principle of effective motivation, a manager should use appropriate
motivation techniques according to the needs of employees.
First, a manager should find what is the need of an employee and then find
how can be it satisfied. Managers should use some motivation tools like
increasing pay, status, remuneration, assigning challenging tasks, etc so that
the productivity of employees can increase.

✔ 8. Follow through
This is the most important principle of directing according to the principle of
follow through, the manager should examine the policies, procedures, and
instructions, and if the manager finds any problem then he or she should take
suitable action to correct this.

What is Controlling?
Controlling is regarded as one of the most important management functions. In
fact, without the presence of a control function, the entire management
function will become obsolete. The management will not be able to determine
if the plan is working properly or not, or if it is properly implemented or not.
The main objective of the control process is to make sure that the activities
within an organisation are going as per the planning. Control process helps the
managers in determining the level of performance of their respective
organisations.

Steps involved in Control Process

The following are the steps involved in the control process:
1. Establishing standards and methods or ways to measure performance
2. Measuring actual performance
3. Determining if the performance matches with the standard
4. Taking corrective action and re-evaluating the standard
Let us go ahead and discuss the above mentioned steps in detail.
Establishing performance standards: Although setting of goals and standards
are part of the planning process, it also plays an important role in controlling.
The main objective of controlling is to guide the business towards the desired
target. Therefore, if the employees or members of a business are well aware of
the target, it will result in more awareness about the target.
The managers must communicate the goals and objectives clearly to the
employees without any ambiguities. An organisation in which everyone is
working towards a common objective has a better chance to grow and prosper.
Measuring actual performance against the set standards : The immediate
action that managers need to take after being made aware of the goals, is to
measure their actual performance and compare that with the standards
already set. This helps in identifying if the plan is actually working as was
thought to be.
Once a plan is implemented, the task of managers is to monitor the plans and
evaluate. Managers must be ready with an alternative plan or suggest
corrective measures in case the plan is not going as was intended.
This can be done only when managers are measuring their actual performance.
The way performance can be evaluated is to measure it in monetary terms,
hiring financial experts.
This step of controlling is helpful in detecting future problems and issues and is
essential for taking decisions immediately so that the company is able to
recover from the losses.
Determining if the performance matches with the standard: Checking if the
performance matches with the standards is very important. It is an important
step in controlling. In this step, the results are measured with the already set
standards.
Taking corrective action and re-evaluating the standard: Corrective measures
need to be taken when there is a discrepancy. Correct actions provide
protection against loss and stop them from reappearing in future.

Techniques of Control in Management

There are two types of control techniques in management. Let us look at them.
A) Traditional
The traditional techniques are as follows:
#1 – Budgeting
A budget is a statement reflecting an organization’s future
expenditures, profits, and earnings. It is an estimate of a company’s future
financial position. Units sold, units produced, and unit labor and material costs
are a few of a budget’s crucial components. Budgeting control involves
comparing the actual performance with the budgeted or planned performance.
Some of the different types of budgets are cash budget, sales budget,
and production budget.
#2 – Personal Observation
This is the easiest way for managers to control organizational activities.
Managers of a business can observe the work in progress to accumulate
information as first-hand information. Then, if they spot any performance gap,
they correct it instantly by taking the necessary action.
#3 – Break-Even Analysis
Managers utilize this method to study the relationship between volume,
profits, and costs. This helps them understand the possible losses or profits at
different activity levels while analyzing the organization’s overall position.
#4 – Statistical Reports
This refers to analyzing data and reports presented to an organization’s
managers to give them an idea regarding the business’s performance in
different areas. The information is presented in tables, graphs, charts, etc.,
enabling managers to compare with previous periods’ performance easily.
B) Modern
Now, let us look at some modern control techniques used in organizations.
#1 – Return On Investment
Also called ROI, it is a useful technique that helps determine whether the
business has been able to utilize the available capital efficiently. Besides the
overall organizational performance, one can gauge the performance of
individual divisions or departments using this technique.
#2 – Ratio Analysis
Companies use ratio analysis to measure the organization’s performance. The
different types of ratios commonly used are profitability ratios, solvency
ratios, liquidity ratios, and turnover ratios.
#3 – Responsibility Accounting
This is an accounting system where the involvement of different sections,
departments, and divisions is set up as ‘Responsibility Centers’. These centers
can be of various types, like revenue and cost centers. Every center’s head is
responsible for achieving the center’s predetermined objective.
#4 – Management Audit
This is the systematic appraisal of an organization’s management team based
on performance. It aims to assess the efficiency of the management. Moreover,
it plays a crucial role in improving future performance.
Example
Let us look at this control in management example to understand the concept
better.
Suppose Organization ABC focuses on the control process more than any other
management function to ensure efficient allocation of resources and
coordination in the team. All superiors across different management levels
assign work to the subordinates and then measure their performance.
Jim and Mike can know about the actions and efforts of every employee by
measuring the performance of every employee and the business’s owners.
Then, by comparing employees’ performance with the desired results, they can
decide which employees deserve a bonus, promotion, or hike.