Literature
review

Philosophers
and scholars have theorized for centuries about human needs motives. During the
past century, attention was given to understand motivation in businesses and
other organizations (J.P. Campbell and R.D. Pritchard, 1976). A more complex
theory was proposed by Sigmund Freud. He saw much of human motivation as
unconscious by nature. Psychoanalysis was Freud’s method for delving into the
unconscious mind. The psychoanalytic approach helps to analyze person’s
unconscious needs and motives. Research suggests that people’s deeper feelings
may transcend culture, with most people caring deeply about the same few things
(K.J. Sweetman, 2001).

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Abraham
Maslow, a psychologist, proposed a need theory of motivation emphasizing
psychological and interpersonal needs in addition to physical needs and
economic necessity. Maslow conceptually derived the five need categories as
physiological needs, safety and security needs, social needs, esteem needs and
the need for self actualization. Maslow’s need theory was later tested in
research with working populations. One study reported that middle managers and
lower-level managers had different perceptions of their need deficiencies and
the importance of their needs (L.W. Porter, 1961). Douglas McGregor understood
people’s motivation using Maslow’s need theory. McGregor proposed two
alternatives sets of assumptions about people at work based on which set of
needs were the motivators. Theory X assumptions are appropriate for employees
motivated by lower order needs. Theory Y assumptions, in contrast, are
appropriate for employees motivated by higher order needs.

Clayton
Alderfer recognized Maslow’s contribution to understanding motivation, yet
believed that the original need hierarchy was not quite accurate in identifying
and categorizing human needs. AS an evolutionary step, Alderfer proposed the
ERG theory of motivation, which grouped human needs into only three basic
categories: existence, relatedness, and growth. A second major need theory of
motivation focuses on personality and learned needs. Henry Murray developed a
long list of motives and manifest needs in his early studies of personality.
David McClelland was inspired by Murray’s early work. McClelland identified
three learned or acquired needs, called manifest needs. These manifest needs
were the needs for achievement, for power, and for affiliation.

Vroom’s
expectancy theory of motivation focuses on personal perceptions of the
performance process. Expectancy theory is a cognitive process theory of
motivation. The key constructs in the expectancy theory of motivation are the
valence of and outcome, expectancy, and instrumentality. Many theories were
concerned on the need of motivating employees by the managers (Herzberg, 1959).
It is mainly done to run a company effectively (Smith, 1994). Managers should
understand the need of motivating employees since motivated employees are the
pillars of successful organization (Amabile, 1993).

Motivation
is classified as intrinsic and extrinsic motivation. Sources of both these
types are different. When people are internally motivated by interest,
satisfaction, challenges and self-expression it is intrinsic motivation. But
when they are motivated by external factors to obtain some goal apart from the
work itself it is extrinsic motivation (Amabile 1993). Bigger salary,
incentives, job benefits etc. are some rewards that leads to extrinsic
motivation (Deci, 1972).

Intrinsic
and extrinsic motivations are different but some researchers believe that
intrinsic and extrinsic motivations also have an effect on each other. In other
words it can be stated that intrinsic and extrinsic motivation can reinforce
each other. It is important to consider all hygiene and motivator factors to
motivate employees (Saiyadain, 2009).

According
to Golzadeh (2001), employees, whether in industrial or business organizations
are seen as one of the important factors for the attainment of organizational
objectives. There are many questions related with this topic, answers of which
can be found in the background of employee’s motivation and objectives. According
to Mullins (2005), a major international study by Proud foot Consulting
revealed that, the most important reason for productivity loss was poor working
morale. This includes absence of positive team spirit, low motivation, and poor
sense of belonging, people feeling undervalued and poorly rewarded. But
motivation is not only factor responsible for determining productivity. Skills,
knowledge, emotions and feelings, etc. also holds great importance in deciding
productivity (Kreitner et al. 1999).