Saturday, 24 January 2015

EFFECT OF MOTIVATION WORKERS' PRODUCTIVITY.

Motivation is concerned with why people do what
they do. It answers such questions as why do
managers or workers got o work and do a good
job. This tries to explain what motivates people to
act the way they do, with primary focus on the
work place. It is the primary task of the manager
to create and maintain an environment in which
employees can work efficiently to realize the
objectives of the organization.
Employees differ not only in their ability to work
but also in their will to do so (motivation). To
motivate is to induce, persuade, stimulate, even
compel, an employee to act in a manner which
fulfills the objectives of an organization. The
motivation of employees depends on the strength
of their motives. Motives are needs, wants, drives,
or impulses within the individual, and these
determine human behaviour.
Motivation then is the process of:
v Arousing behaviour.
v Sustaining behaviour in progress, and
v Channeling behaviour into a specific course of
action.
Thus, motives (needs, desires) induce employees
to act. Motivation, therefore, is the inner state that
energies, channels, and sustains human
behaviour.
Since it has been established that all behaviour
except involving responses are goals directed,
manager can apply motivational theories of
management in their attempt to direct the job
behaviour of employees towards the goal of their
establishment.
1.2 STATEMENT OF THE PROBLEM
Workers leave organization due to the fact that
they are not motivated enough. Some are not
willing to leave because they are enjoying some
benefit in terms of promotion which leads to
increase in salaries and wages, bonuses and
some other incentives.
Organizations must improve the work
performance, productivity, skills and ability of its
employees. The problem is how to motivate
workers to achieving higher productivity.
1.3 RELEVANT RESEARCH QUESTIONS
Some of the research questions are:
1. To what extent does the personnel policy
implemented by your company affect your
productivity?
2. How often does the company embark on staff
training and development?
3. Does your company clearly/respect trade union
position of its employees?
4. Are there differences in the way staff and
workers are t4eated in the organization?
5. Is joint consultation practiced positively, as a
method of obtaining employees views on
problems and proposed charges before final
decisions are taken?
1.4 STATEMENT OF RESEARCH HYPOTHESES
The research hypotheses are:
Hypothesis I:
HO: The more there is effective motivation, the
less the morale of employees.
H1: The more there is effective motivation, the
more the moral of employees.
Hypothesis II:
HO: Adoption of motivational techniques will
automatically decrease the workers productivity.
H1: Adoption of motivational techniques will
automatically increase the workers productivity.
Hypothesis III:
HO: the success of an organization does not
depend on the motivational procedures being
adopted.
H1: The success of an organization depends on
the motivational procedures being adopted.
1.5 PURPOSE/OBJECTIVE OF THE STUDY
The study is to ascertain the motivational
activities of Intercontinental bank Plc.
a. To ascertain the application of the motivational
techniques by the organization concerned.
b. To know the problem inhibiting the success of
the employees’ motivation in the organization.
c. To know the response of the employees to
motivational techniques adopted by the
organization.
d. To provide solutions and recommendations
where necessary on the best and effective
motivational techniques used in the organization.
1.6 SCOPE AND LIMITATIONS OF THE STUDY
This project covers the aspect of motivation in
persuading, stimulating and compelling an
employee to act in a manner which fulfills the
objectives of the organization.
One cannot but say that data collection is the
most tedious of writing the project.
Another limitation is that the researcher being a
student who has to read other courses as well as
to take normal lectures during the period of the
research may be limited by time given for the
study being too short.
Lastly, the fund constraint in carrying out this
research project, the cost of getting materials and
information as well as their adequacies will also
constitute the limitation of the study.
1.8 SIGNIFICANCE OF THE STUDY
The significance of this study cannot be over-
emphasized. It will be base don the examination
of the motivation practice in Intercontinental Bank
Plc, and to know the extent to which it is being
carried out, the effects on the workers, the
organization and the country at large. Moreso, to
acquaint the various managers and different
categories of employees to the need to embrace
motivation which will go along way in achieving
higher productivity.
Besides, those students in the field of
administration will find it educative, interesting
and challenging in that, the various activities and
techniques of motivation are revealed and logically
analyzed.
Lastly, this project will be of value to those who
may want to carry out similar research in the
nearest future.
1.9 HISTORICAL BACKGROUND OF
INTERCONTINENTAL BANK PLC
Intercontinental Bank Plc came into existence in
March, 1989 as a product of the partnership
between some visionary and dynamic Nigerian
businessmen, to provide innovative and
customer-focused products and services that will
satisfy the publics’ growing need for sophisticated
banking services. Since its inception then a s
Nigerian Intercontinental Merchant Bank Limited,
the bank has been providing a wide array of
products and services covering investment
banking, retail and funds management.
Since its debut in t eh commercial banking field,
Intercontinental Bank Plc has pursued an
aggressive branch network expansion
programme. As at March, 2005, the Bank has 63
branches making it sixth largest bank in the
country in terms of network.
A socially responsible organization,
Intercontinental Bank maintains a long-standing
policy of corporate responsibility to the
communities in which it operates, and has made
impact in the areas of public health and
education.
In July, 1991, the Bank converted to a commercial
bank and later obtained a Universal Banking
License to avail many more customers of its
unique products and services as well as tap into
other market opportunities in the Nigerian
economy. Following a resolution of the Board in
October, 2001, the Bank changed to a Public
Limited Liability Company in June, 2002 and
followed it up in July same year with an Initial
Public Offering (IPO). The capitalization of the
Bank was further boosted with N3.58 billion being
proceeds of the IPO and by mid 2004, the Bank’s
shareholders’ funds had grown to N10 billion
before the new minimum capital base of N25
billion was set by the regulators. Consequently,
the Bank returned to the capital market and raised
new funds totaling N22.4 billion thereby growing
its shareholders’ fund to N34.7 billion. The
Bank’s shares are listed on the Nigerian Stock
Exchange (NSE).
1.10 DEFINITION OF TERMS
Motivation: This is the process of arousing
behaviour, sustaining behaviour in progress, and
channeling behaviour into a specific course of
action.
Management: This is the process of getting things
done through people. It involves planning,
organizing, staff, directing, coordinating and
controlling both human and material resources for
the purpose of achieving a set goal.
Responsibility: This is the subordinate’s
obligation to perform a duty which has been
assigned to him.
Leadership: Is a process of using non-coercive
influence to direct and coordinate the activities of
group members towards goals’ accomplishment.
Manager: Is one who performs the functions of
management (planning, organizing, staffing, etc)
and occupiers a formal position in an
organization.
Organization: This has to do with determination
and provision of capital, material, equipment and
personnel that may be required in an enterprise in
order to achieve the set goals.
Organizational Structure: This is the established
pattern of relationships among the components of
the organization.
Organizational Chart: It is a diagram that shows
the arrangement, positions and interrelationship of
various component parts of company.
Employee: This is a person who is paid to work
for an organization or business enterprise.
Behaviour: Is the manner that someone, an
animal, a plant etc do thing sin a particular way.
Department: Any of the division or unit of a
government, business, school or college and so
on.
Employees’ Services: This is the maintaining of
the general welfare of employees on the job and
assisting with problems related to their security
and personal wellbeing e.g. medical services and
insurance protection.
REFERENCES
Ajayi Nelson (1991): Managerial Planning and
Control, Ibadan: U.I. Press Limited.
Akintunde, A.D. (2005): How to Motivate Workers
to Achieve Higher Productivity, Unpublished ND
Business Studies Polytechnic Ibadan, Oyo State.
Donely Gibson (1984): Fundamental of
Management Plan, New York: Texas Business
Company.
Intercontinental Bank Plc (2005): Annual Report
and Accounts.
Kolawole, E.O. (2002): The Effectiveness of Auditor
Report on Management Decision-Making of Some
Selected Companies in the Insurance Industry,
Unpublished B.Sc. Accounting University of Ado,
Ekiti, David Binders & partners, Lagos.
CHAPTER TWO
REVIEW OF LITERATURE
2.1 INTRODUCTION
Business organization exists to produce goods
and services, which they hope to exchange for
money to maximize profit. In the pursuit of these
defined objectives, the organization procures
resources and processed them into output. Of the
resources acquired, the human factor has been
described as the most significant because if not
properly managed, it can deliberately retard
organizational effectiveness.
Evidence abounds to attest to the fact that all
employees do not exert the same effort towards
organizational goals or in other words, some
employees achieve better results than others.
To achieve results, employees will exhibit the
required job behaviour. The dilemma that
managers face in today’s business is how they
could get employees to exhibit the required job
behaviour in the work place. Since it has been
established that all behaviours except involuntary
responses are goals directed, managers can apply
motivational theories of management in their
attempt to direct the job behaviour of employees
towards the goal of their establishment.
2.2 MODELS AND THEORIES ON MOTIVATION
A number of concepts have been established to
explain the phenomenon of human motivation. It
is useful to classify these concepts into two broad
categories, which are: Content theories and
Process theories.
CONTENT THEORIES
These emphasized reason for motivated behaviour
and or what causes it. They explain behaviour in
terms of specific ‘needs’ or ‘motive’ (the two
terms used interchangeably here). Content
theories help to represent physiological or
psychological deficiencies that an individual feels
some compulsion to eliminate. Some of the major
content theories are:
v Hierarchy of needs - Abraham Maslow
v ERG - Clayton Alderfer
v Two Factor Theory - Fredrick Hertzberg
v Learned Needs Theory - David McClelland.
a. HIERARCHY OF NEEDS
In 1943, Abraham Maslow in a seminar paper
titled, “A Theory of Human Motivation” proposed
that a person’s motivational needs could be
arranged in a hierarchical order. Inherent in this
hierarchical order of needs is that once a given
level of need is satisfied, it no longer serves to
motivate rather the next higher level of need has
to be activated in order to motivate the individual.
Maslow identifies five levels of needs, which are:
Ø Physiological Needs: These are the basic
human needs to sustain life as food, clothing, and
shelter. Until these basic needs are satisfied to the
degree needed, needs for the sufficient operation
of the body, the majority of a person activity will
probably be a t this level and other needs will
provide little or no motivation. But once the
physiological needs have been satisfied, other
levels of needs become important and these
motivate and dominate the behaviour of the
individual.
Ø Safety or Security Needs: These needs are
essential, the desire to be free of the fear of
physical danger and the deprivation of the basic
physiological needs. This is a need for self-
preservation and the concern for the future. If an
individual’s safety or security need is in danger,
other things seem unimportant. Maslow stressed
emotional as well as physical safety. “The whole
organism may become a safety-seeking
organism”. Yet, as it is true of the physiological
needs, once these safety needs are satisfied, they
no longer motivate.
Ø Social or Affiliation Need: In the original version
of Maslow’s theory, he used the word “Love” to
describe the need for attention and affiliation. This
however has been modified by the post Maslow
theorist for the word love may include sexual
relationship, which is a physiological need. Social
need include the need to belong and be accepted
by people, this also means belongingness,
acceptance and friendship.
Ø Esteem Needs: The esteem needs represents
self-esteem and recognition from others. The
satisfaction of these needs produces feelings of
self-confidence, prestige, power and control.
People being to feel that they are useful and have
some effect on their environment.
Ø Self-Actualization: This is the need to maximize
one’s potential whatever, it may be as Maslow
expressed it, “What a man be, he must be”. It is
also the desire to become what one is capable of
becoming. These needs as presented by Maslow
can be arranged in a hierarchy presented below.
Self
Actualization
Esteem
Social Needs
Safety Needs
Physiological Needs
Higher Needs
Lower Needs
Source: Cherington, D.J. Organizational
Behaviour,
2nd Edition, Mass Allyn and Bacon, 1994:136
(Adapted)
b. THE ERG THEORY OF MOTIVATION
The ERG Theory propounded by Clayton Alderfer
is indeed a reaction of Maslow’s Theory. He
argued that there are three core needs which he
classified as “Existence, Relatedness and
Growth” (ERG).
The Existence need has to do with the satisfaction
of our basic material requirements such as food,
water, pay and working conditions, they can be
classified as physiological and safety needs.
The relatedness need is similar to the social role
needs of Maslow’s Theory and this includes social
and interpersonal relationship.
Finally, the Growth needs are intrinsic desire for
personal development or making creative
productive contribution.
Furthermore, Alderfer argued that if the
gratification of a higher-level order need is stifled,
the desire to satisfy a lower level need increase
i.e. frustration, regression and dimension. In other
words, if a person fails to satisfy a higher-level
need, he/she moves back to a lower-level need,
which then acts as a motivating force.
This frustration – regressive – dimension can be
illustrated below.
Frustration of
Growth Needs
Importance of Growth Needs
Satisfaction of Growth Needs
Frustration of
Relatedness Existence
Importance of Relatedness Needs
Satisfaction of Relatedness Needs
Frustration of
Existence Needs
Importance of Existence Needs
Satisfaction of Existence Needs
Source: Gibson Ivancevich and Donnelly 1997,
Organizational Irwin. McGraw Hill, Boston.
c. LEARNED NEEDS THEORY
David McClelland proposed learned needs of
motivation, which according to him is associated
with learning concepts. He identified three needs
that motivate people. these are:
The need for achievements.
The need for affiliation.
The need for power.
The need for achievement: This is the need/desire
to set challenging goals, work to achieve the
goals or the drive to excel in relation to set
standards. The need for achievement is defined
by the following desires, “to accomplish
something difficult: to master, manipulate or
organize physical objects human beings or ideas.
To rival and surpass others. To increase self-
regard by the successful exercise of talent.
The need for affiliation: This is the need to be
liked and accepted by others. People with the
need strive for friendship, prefer cooperative
situations rather than competitive situations and
desire relationship involving a high degree of
mutual understanding. People with a high need
for affiliation prefer to spend more time
maintaining social relationship, joining groups,
etc. individual with a high degree of this need are
not effective managers or leaders because they
will find it difficult to make decisions without
worrying about the feeling of others or being
disliked by others.
The need for power: This is the dislike to have
impact, to be influence and to control others.
They also have the desire to coach, teach or
encourage others to achieve, they love to work
and are concerned with discipline and self-
respect. The need for power has both negative
and positive sides. The negative side is
manifested in a winner’s takes all mentality e.g.
“if I win, you lose”. The positive side is focused
on accomplishing group goals and helping others
obtain the feeling of competence.
PROCESS THEORIES OF MOTIVATION
These are theories that describe and analyzed
how behaviour is energized, directed, sustained
and stopped. While it is true that people work in
order to satisfy their needs, some employees want
to work and do good job and in some case,
employees may exhibit effort beyond the level
where the reward surpassed their need. It is
therefore the duty of management to provide an
environment that facilitates high-level of
performance. Because at this point, what
motivates the employee is not the desire to
satisfy their needs but rather factors in the
environment. This is the basis of the process
theories of motivation.
Three of the process theories of motivation will be
discussed here, these are:
· Goal setting theory.
· Expectancy theory.
· Equity theory.
a. Goal Setting Theory: This theory was
propounded by Edwin Locke (1968)
Directing One’s
Attention
Regulating One’s Effort
Increasing One’s Performance
Encouraging of the Development of Goal
Attainment Strategies of Action Plan
Goals Motivate the Individual
By -------------------
Task Performance
A Theory of Goal Setting and Task Performance.
According to the above model proposed by Locke,
goals setting have four motivational mechanisms:
a. Goals Direct Attention: behaviours are goal-
oriented. Goals that are personally meaningful
tend to focus one’s attention on what is relevant
and important. This is because the perceived
outcome of such behaviour is desired and
cherished by the person exhibiting the behaviour.
b. Goals Regulate Effort: The level of effort
exhibited is proportionate to the difficulty of the
goal. In other words, a goal that appears difficult
to attain will elicit a greater effort if personally
desired. On the other hand, easily attained goals
will require little efforts.
c. Goals Increase Persistence: Persistence here
means the effort expended on a task over an
extended period of time. In the pursuance of an
objective or a goal, difficulties may arise, there is
always the tendency for people to abandon the
pursuit of this goal or objective where they are
not personally involved in the setting of the goal.
On the contrary, when people are involve din the
goal setting process, they are likely t o persist in
their effort towards attaining the goals.
d. Goals Foster Strategies and Action Plans:
Setting of goals or stating performance standard
is the first step towards attaining these goals.
However, it is important to ask the question, “How
are the goals going to be achieved?” When goals
are set, it encourages people going to be
achieved. When goals are set, it encourages
people to develop strategies and action plans that
will enable them achieve the goals.
VROOM’S EXPECTANCY THEORY
In 1964, Victor Vroom proposed an Expectancy
Theory of Motivation in which he defined
motivation as a process governing choice among
alternative form of voluntary activity.
To understand the individual’s choice of voluntary
activities, it is important to first appreciate certain
concepts that are embedded in the expectancy
theory. These concepts are:
Ø Outcome: This is the result of doing a particular
thing. The outcome can be first level or second
level. The first level outcomes are the product of
behaviour associated with doing the job such as
productivity and absenteeism, while the second
level outcomes are the product of the first level
outcome, which include punishment and reward.
Ø Instrumentality: This is the individual
perception or belief that the first level outcome is
associated with the second level outcome.
Instrumentality ranges from – 1 to + 1.
-1 Instrumentality is the perception that
attainment of second level outcome is certain
without the first level outcome and that second
level outcome is impossible with first level
outcome.
+1 instrumentality is the perception that first level
outcome is necessary and sufficient for the
second level outcome to occur.
0 Instrumentality is the perception that there is no
linkage between first level and second level
outcomes.
Ø Valence: This is the preference for outcome.
Among the second level outcomes which of them
do the student for example prefer? Does the
student desire an A,B,C,D,E, or F score in the
examination or a first class, second class upper,
second class lower, third class or pass?
Ø Expectancy: This refers to the individual belief
concerning the likelihood or subjective probability
that a particular behaviour will be followed by a
particular outcome. That is an exhibited behaviour
can elicit a particular outcome. Expectancy ranges
from 0 to + 1.
O Expectancy: This implies that there is no
chance of the occurrence of an outcome after the
behaviour.
+1 Expectancy: This implies that the outcome will
certainly follow the behaviour.
Ø Force (M): This is equated to motivation. The
intent of expectancy theory is to assess the
magnitude and direction of all the forces acting on
the individual. The act associated with the
greatest force is most likely to occur.
Ø Ability (A): This refers to a person’s potential
for doing a job. Ability could be physical or
mental.
Vroom used a mathematical equation to integrate
these concepts into a predictive model of
motivational force. Expectancy theory is therefore
based on the following principles:
V = E (V2 x I) i.e. the valence associated with t
he various first level outcome is a sum of the
multiplication of valences (V2) attached to all
second level outcomes with their respective
instrumentality (I).
(2) M = F (VI x E): Motivation is a multiplicative of
the valences for each first level outcome (VI) and
the perceived expectancy (E) that a given
behaviour w ill be followed by a particular first
level outcome. If expectancy is low, there will be
low motivation.
(3) P = F (M x A): The performance of a job is a
multiplicative function of motivation (forces) and
ability.
EQUITY THEORY OF MOTIVATION
The equity theory of motivation developed by
Stacey Adams holds that individuals who work in
exchange for rewards from organization are
motivated by a desire to be equitably treated at
work. Four importance components are involve
din the equity theory. These are:
v Person: The individual for whom equity or
inequity is perceived.
v Comparison other: Any individual or group used
by person as a referent regarding the ratio of
inputs and outcomes.
v Inputs: These are the individual characteristics
brought to the job by the person. These inputs
are the factors the individual considers when
making equity comparison. They include:
§ Time
§ Education/training.
§ Experience
§ Skills.
§ Creativity.
§ Seriously.
§ Age
§ Personality trait.
§ Effort expended
§ Personal appearance.
v Outcomes: These are what a person receives
from the job or what he/she gets in exchange
with his/her inputs. Factors to be considered
under outcome when making equity comparism
include:
§ Pay/bonuses.
§ Fring benefit.
§ Challenging assignment.
§ Job security.
§ Career advancement.
§ Status symbols.
§ Pleasant/safe working environment.
§ Opportunity for personal growth/development.
FREDERICK HERTZBERG – HYGIENE THEORY
His approach is similar to that of Maslow though
more practical. He has broken motivation into
two. The hygiene/disatisfier and the motivators/
satisfier. The lower level needs are identified as
Hygiene factors and t eh higher level needs are
motivators. Security need and the social needs
while the higher-level needs comprise the ego/
esteem needs and the self-actualization needs.
Hygiene factors are those absence of which cause
dissatisfaction and indifference when present e.g.
salary, working condition, inter-personal relation
supervision company policy and administration.
Motivators are those the absence of which does
not demotivate workers while the presence really
motivate them e.g. Responsibility, career growth
and advancement, achievement recognition and
job enrichment.
HENRY L. GANTT (TASK AND BONUS SYSTEM)
He was a contemporary of Taylor in the
management movement. Gantt was one of the first
to give major attention to human relations in
industry – particularly humanizing management
science, as distinguished from Taylor’s emphasis
on financial incentives. Well, Gantt’s first original
contribution to management science was his
concept of the “Task and Bonus” system of wage
payment, which differed from Taylor’s piece rate
system in that Gantt believed that scientific
management should entail the study of problems
according to the scientific methods, moreso these
tasks or incentives to motivate. According to him,
when these are accomplished, efficiency will be
enhanced.
Another notable contribution of Gantt in this
movement is the fact that he stressed the point
that the training of workers should be the sole
responsibility of management. This is evidently in
practice in majority of organizations today.
ELTON MAYOR
His theories were borne out of the criticism of
Hawthorne research. According to mayor, no
change in any work condition could result solely
from physical change but rather such a change
could only occur as a result of the change in
workers attitude. At the bottom of t eh triangle are
t eh needs of our animalistic nature for self-
preservation for sleep, food including shelter etc.
These are the basic needs once satisfied they
cease to be strong motivators to increase
productivity or action. Thus, as human beings to
feel more materially secured his higher needs for
self-expression will begin to be strong. It follows,
therefore, that, in stable circumstances and with
proper management, the majority of the men can
be self-directed if they become committed to an
objective they value. They will not only accept
responsibility but often will seek it, then to work
will be as natural as to eat or to sleep as in
McGregor’s Theory Y.
In other words, man can be self-motivated. The
task of the manager (as one who accomplishes
his objectives through others) is to create
conditions of work in which and through which
self-motivations can find its release. In situations
where this is difficult to achieve as in dull,
repetitive work, higher pay remains the paramount
importance. Since workers are forced to find
satisfaction outside the work situations.
DOUGLAS McGREGOR (THEORY X & Y)
He believe in group decision-making, which is
constant with individual responsibility. McGregor
is more particularly, for his influential model in
which he contrasts two views of man in the
working situations.
This, he, conveniently termed Theory X and Y.
According to Theory X, he prosecuted that:
The average person has an inherent dislike for
work and w ill try to avoid it if possible.
The average person lacks ambition, dislikes work
responsibility and preferred to be closely directed,
coerced, controlled, and threatened with
punishment to get him to put forth adequate effort
towards the achievement of corporate objectives.
The average person is resistance to change.
The average person is by nature self-centred and
indifference to corporate goals.
On the other hand, theory Y says the above is not
totally true because:
· The average person is not (as a fact) by nature,
passive or resistant to the organization needs.
That the expenditure of physical and mental effort
in work is as natural as play or rest.
· In fact, external control and the threat of
punishment are not the only means for bringing
about efforts towards organizational goals.
Particularly, economic benefits and job security,
as a fact, are just only two of the possible
rewards desired by the average man.
· The average human being leans, under the ideal
conditions, to accept and seek responsibilities –
wants to exercise autonomy and creativity to aid
his/her growth ant eh accomplishment of
corporate objectives.
In view of the above assumptions, McGregor
thinks that the best managers could do is to use
both theories (since they are “legitimate” beliefs
about the nature of man that influence managers)
to adopt one strategy than another situationally –
that is, depending upon a prevailing situation, a
manager who holds the belief, say, of theory X,
could adopt a considerable array of strategies
(either X or Y).
2.3 CURRENT LITERATURE REVIEW
2.3.1 DEFINITION OF MOTIVATION
Several management scholars have given several
definitions of motivation. According to Middle
Most and Hitt (1981), “Motivation is the willful
desire to direct one’s behaviour toward goals. The
three key elements in this definition are willful
desire (Person’s choice), behaviour, and goal-
directed purpose of behaviour.
Wallace and Andrews Zilagy (1994) opine that
“Motivation is a dynamic process that, motivate,
energizes, directs and determines change in
behaviours. It must be understood from the onset
that motivation is not only rewards and
punishment; it includes ideas, expectations and
experience. When it comes to motivation, people
mostly act on perception and not reality”.
Lakin Folajin (2001), spoke at motivation as term
used generally when somebody is stimulated, the
interest of a workers so as to be able to work and
bring or breeds efficiency in his work.
Luthans (1998), Motivation is a process which
starts with a physiological or psychological
deficiency or need that activates behaviour at a
drive that is aimed of a goal or incentive.
Ateman and Snell (1999) see motivation as the
forces that energizes, direct and sustains a
person’s effort.
Robbins (2001) defines motivation as the
processes that account for an individual’s
intensity, direction and persistence of effort
towards attaining a goal.
Joena Agbato (1988) says “motivation is an
important determinant of human behaviour, it sit
ht which movies one towards a goal, thus,
motivation begat performance”.
Translated, it means when one is motivated, it
precipitates a behaviour and this leads to
performance. This means (100%) that one is
positively motivated. It leads to positive
behaviours and thus writes’ agree that motivated
behaviour is goal-directed behaviours, which is
behaviour resulting from internal drives. This
internal devices or (tension) are the roof of
motivation. Hence, it is important for managers to
motivate behaviour so as to reduce these
‘tension’ even though it has been agreed that
these motivation behaviour are “innate”. It should
be stated, that sometime, external force can
dominate and determine behaviour. Yet, at other
times, it is directed towards self-satisfaction. Most
significantly, behaviour is directed to obtain want,
which will satisfy needs.
Ricky Griffin (1984) defined ‘motivation’ as a
cyclical process affecting the inner needs that he
or she wants to satisfy. Although there are certain
common human needs, each person also has his
own particular needs. Our strong needs provide
us with personal goals that satisfy needs.
The intensity of needs and drive varies widely
from one person to another. It is the strongest
drive. The sound manager therefore, tries t o
recognize the strong need especially the
dominating ones in particular individuals. By so
doing, he is able to understand his subordinates
or employees and this will go a long way in
achieving the enterprise objectives.
NEED WANT SATISFACTION CHAIN
NEED WANT TENSION
ACTION SATISFACTION
In conclusion, Gibson (1997) defined motivation
as the concept used to describe the forces acting
on or within an individual to initiate and direct
behaviour.
The definition by Gibson portends two basic
classifications of variables that could motivate
people to work. These are variables acting on the
individuals, these variables are external (process)
therefore can be controlled by other people. The
other set of variables are the variables acting
within the individual (content) these variables are
internal and reflects the state of need of the
individual.
From these definitions, three basic elements can
be seen as inherent in the concept of motivation.
These elements are:
v Intensity: This refers to the degree of effort
exerted by an individual or employee towards
organizational goals. Employees put up different
degrees of effort in achieving organizational goals.
v Direction: This refers to the area in which the
employee directs his effort to, within the
organization. If employee’s efforts are not directed
towards organizational goal then the efforts are
exercised in futility.
v Persistence: This refers to the extent to which
effort or behaviour can be sustained. A t the
commencement of work, a new employee is likely
to exhibit a high degree of effort towards the
organizational goals, but for how long can this
employee sustain this effort?

EFFECT OF MOTIVATION WORKERS' PRODUCTIVITY.

Motivation is concerned with why people do what
they do. It answers such questions as why do
managers or workers got o work and do a good
job. This tries to explain what motivates people to
act the way they do, with primary focus on the
work place. It is the primary task of the manager
to create and maintain an environment in which
employees can work efficiently to realize the
objectives of the organization.
Employees differ not only in their ability to work
but also in their will to do so (motivation). To
motivate is to induce, persuade, stimulate, even
compel, an employee to act in a manner which
fulfills the objectives of an organization. The
motivation of employees depends on the strength
of their motives. Motives are needs, wants, drives,
or impulses within the individual, and these
determine human behaviour.
Motivation then is the process of:
v Arousing behaviour.
v Sustaining behaviour in progress, and
v Channeling behaviour into a specific course of
action.
Thus, motives (needs, desires) induce employees
to act. Motivation, therefore, is the inner state that
energies, channels, and sustains human
behaviour.
Since it has been established that all behaviour
except involving responses are goals directed,
manager can apply motivational theories of
management in their attempt to direct the job
behaviour of employees towards the goal of their
establishment.
1.2 STATEMENT OF THE PROBLEM
Workers leave organization due to the fact that
they are not motivated enough. Some are not
willing to leave because they are enjoying some
benefit in terms of promotion which leads to
increase in salaries and wages, bonuses and
some other incentives.
Organizations must improve the work
performance, productivity, skills and ability of its
employees. The problem is how to motivate
workers to achieving higher productivity.
1.3 RELEVANT RESEARCH QUESTIONS
Some of the research questions are:
1. To what extent does the personnel policy
implemented by your company affect your
productivity?
2. How often does the company embark on staff
training and development?
3. Does your company clearly/respect trade union
position of its employees?
4. Are there differences in the way staff and
workers are t4eated in the organization?
5. Is joint consultation practiced positively, as a
method of obtaining employees views on
problems and proposed charges before final
decisions are taken?
1.4 STATEMENT OF RESEARCH HYPOTHESES
The research hypotheses are:
Hypothesis I:
HO: The more there is effective motivation, the
less the morale of employees.
H1: The more there is effective motivation, the
more the moral of employees.
Hypothesis II:
HO: Adoption of motivational techniques will
automatically decrease the workers productivity.
H1: Adoption of motivational techniques will
automatically increase the workers productivity.
Hypothesis III:
HO: the success of an organization does not
depend on the motivational procedures being
adopted.
H1: The success of an organization depends on
the motivational procedures being adopted.
1.5 PURPOSE/OBJECTIVE OF THE STUDY
The study is to ascertain the motivational
activities of Intercontinental bank Plc.
a. To ascertain the application of the motivational
techniques by the organization concerned.
b. To know the problem inhibiting the success of
the employees’ motivation in the organization.
c. To know the response of the employees to
motivational techniques adopted by the
organization.
d. To provide solutions and recommendations
where necessary on the best and effective
motivational techniques used in the organization.
1.6 SCOPE AND LIMITATIONS OF THE STUDY
This project covers the aspect of motivation in
persuading, stimulating and compelling an
employee to act in a manner which fulfills the
objectives of the organization.
One cannot but say that data collection is the
most tedious of writing the project.
Another limitation is that the researcher being a
student who has to read other courses as well as
to take normal lectures during the period of the
research may be limited by time given for the
study being too short.
Lastly, the fund constraint in carrying out this
research project, the cost of getting materials and
information as well as their adequacies will also
constitute the limitation of the study.
1.8 SIGNIFICANCE OF THE STUDY
The significance of this study cannot be over-
emphasized. It will be base don the examination
of the motivation practice in Intercontinental Bank
Plc, and to know the extent to which it is being
carried out, the effects on the workers, the
organization and the country at large. Moreso, to
acquaint the various managers and different
categories of employees to the need to embrace
motivation which will go along way in achieving
higher productivity.
Besides, those students in the field of
administration will find it educative, interesting
and challenging in that, the various activities and
techniques of motivation are revealed and logically
analyzed.
Lastly, this project will be of value to those who
may want to carry out similar research in the
nearest future.
1.9 HISTORICAL BACKGROUND OF
INTERCONTINENTAL BANK PLC
Intercontinental Bank Plc came into existence in
March, 1989 as a product of the partnership
between some visionary and dynamic Nigerian
businessmen, to provide innovative and
customer-focused products and services that will
satisfy the publics’ growing need for sophisticated
banking services. Since its inception then a s
Nigerian Intercontinental Merchant Bank Limited,
the bank has been providing a wide array of
products and services covering investment
banking, retail and funds management.
Since its debut in t eh commercial banking field,
Intercontinental Bank Plc has pursued an
aggressive branch network expansion
programme. As at March, 2005, the Bank has 63
branches making it sixth largest bank in the
country in terms of network.
A socially responsible organization,
Intercontinental Bank maintains a long-standing
policy of corporate responsibility to the
communities in which it operates, and has made
impact in the areas of public health and
education.
In July, 1991, the Bank converted to a commercial
bank and later obtained a Universal Banking
License to avail many more customers of its
unique products and services as well as tap into
other market opportunities in the Nigerian
economy. Following a resolution of the Board in
October, 2001, the Bank changed to a Public
Limited Liability Company in June, 2002 and
followed it up in July same year with an Initial
Public Offering (IPO). The capitalization of the
Bank was further boosted with N3.58 billion being
proceeds of the IPO and by mid 2004, the Bank’s
shareholders’ funds had grown to N10 billion
before the new minimum capital base of N25
billion was set by the regulators. Consequently,
the Bank returned to the capital market and raised
new funds totaling N22.4 billion thereby growing
its shareholders’ fund to N34.7 billion. The
Bank’s shares are listed on the Nigerian Stock
Exchange (NSE).
1.10 DEFINITION OF TERMS
Motivation: This is the process of arousing
behaviour, sustaining behaviour in progress, and
channeling behaviour into a specific course of
action.
Management: This is the process of getting things
done through people. It involves planning,
organizing, staff, directing, coordinating and
controlling both human and material resources for
the purpose of achieving a set goal.
Responsibility: This is the subordinate’s
obligation to perform a duty which has been
assigned to him.
Leadership: Is a process of using non-coercive
influence to direct and coordinate the activities of
group members towards goals’ accomplishment.
Manager: Is one who performs the functions of
management (planning, organizing, staffing, etc)
and occupiers a formal position in an
organization.
Organization: This has to do with determination
and provision of capital, material, equipment and
personnel that may be required in an enterprise in
order to achieve the set goals.
Organizational Structure: This is the established
pattern of relationships among the components of
the organization.
Organizational Chart: It is a diagram that shows
the arrangement, positions and interrelationship of
various component parts of company.
Employee: This is a person who is paid to work
for an organization or business enterprise.
Behaviour: Is the manner that someone, an
animal, a plant etc do thing sin a particular way.
Department: Any of the division or unit of a
government, business, school or college and so
on.
Employees’ Services: This is the maintaining of
the general welfare of employees on the job and
assisting with problems related to their security
and personal wellbeing e.g. medical services and
insurance protection.
REFERENCES
Ajayi Nelson (1991): Managerial Planning and
Control, Ibadan: U.I. Press Limited.
Akintunde, A.D. (2005): How to Motivate Workers
to Achieve Higher Productivity, Unpublished ND
Business Studies Polytechnic Ibadan, Oyo State.
Donely Gibson (1984): Fundamental of
Management Plan, New York: Texas Business
Company.
Intercontinental Bank Plc (2005): Annual Report
and Accounts.
Kolawole, E.O. (2002): The Effectiveness of Auditor
Report on Management Decision-Making of Some
Selected Companies in the Insurance Industry,
Unpublished B.Sc. Accounting University of Ado,
Ekiti, David Binders & partners, Lagos.
CHAPTER TWO
REVIEW OF LITERATURE
2.1 INTRODUCTION
Business organization exists to produce goods
and services, which they hope to exchange for
money to maximize profit. In the pursuit of these
defined objectives, the organization procures
resources and processed them into output. Of the
resources acquired, the human factor has been
described as the most significant because if not
properly managed, it can deliberately retard
organizational effectiveness.
Evidence abounds to attest to the fact that all
employees do not exert the same effort towards
organizational goals or in other words, some
employees achieve better results than others.
To achieve results, employees will exhibit the
required job behaviour. The dilemma that
managers face in today’s business is how they
could get employees to exhibit the required job
behaviour in the work place. Since it has been
established that all behaviours except involuntary
responses are goals directed, managers can apply
motivational theories of management in their
attempt to direct the job behaviour of employees
towards the goal of their establishment.
2.2 MODELS AND THEORIES ON MOTIVATION
A number of concepts have been established to
explain the phenomenon of human motivation. It
is useful to classify these concepts into two broad
categories, which are: Content theories and
Process theories.
CONTENT THEORIES
These emphasized reason for motivated behaviour
and or what causes it. They explain behaviour in
terms of specific ‘needs’ or ‘motive’ (the two
terms used interchangeably here). Content
theories help to represent physiological or
psychological deficiencies that an individual feels
some compulsion to eliminate. Some of the major
content theories are:
v Hierarchy of needs - Abraham Maslow
v ERG - Clayton Alderfer
v Two Factor Theory - Fredrick Hertzberg
v Learned Needs Theory - David McClelland.
a. HIERARCHY OF NEEDS
In 1943, Abraham Maslow in a seminar paper
titled, “A Theory of Human Motivation” proposed
that a person’s motivational needs could be
arranged in a hierarchical order. Inherent in this
hierarchical order of needs is that once a given
level of need is satisfied, it no longer serves to
motivate rather the next higher level of need has
to be activated in order to motivate the individual.
Maslow identifies five levels of needs, which are:
Ø Physiological Needs: These are the basic
human needs to sustain life as food, clothing, and
shelter. Until these basic needs are satisfied to the
degree needed, needs for the sufficient operation
of the body, the majority of a person activity will
probably be a t this level and other needs will
provide little or no motivation. But once the
physiological needs have been satisfied, other
levels of needs become important and these
motivate and dominate the behaviour of the
individual.
Ø Safety or Security Needs: These needs are
essential, the desire to be free of the fear of
physical danger and the deprivation of the basic
physiological needs. This is a need for self-
preservation and the concern for the future. If an
individual’s safety or security need is in danger,
other things seem unimportant. Maslow stressed
emotional as well as physical safety. “The whole
organism may become a safety-seeking
organism”. Yet, as it is true of the physiological
needs, once these safety needs are satisfied, they
no longer motivate.
Ø Social or Affiliation Need: In the original version
of Maslow’s theory, he used the word “Love” to
describe the need for attention and affiliation. This
however has been modified by the post Maslow
theorist for the word love may include sexual
relationship, which is a physiological need. Social
need include the need to belong and be accepted
by people, this also means belongingness,
acceptance and friendship.
Ø Esteem Needs: The esteem needs represents
self-esteem and recognition from others. The
satisfaction of these needs produces feelings of
self-confidence, prestige, power and control.
People being to feel that they are useful and have
some effect on their environment.
Ø Self-Actualization: This is the need to maximize
one’s potential whatever, it may be as Maslow
expressed it, “What a man be, he must be”. It is
also the desire to become what one is capable of
becoming. These needs as presented by Maslow
can be arranged in a hierarchy presented below.
Self
Actualization
Esteem
Social Needs
Safety Needs
Physiological Needs
Higher Needs
Lower Needs
Source: Cherington, D.J. Organizational
Behaviour,
2nd Edition, Mass Allyn and Bacon, 1994:136
(Adapted)
b. THE ERG THEORY OF MOTIVATION
The ERG Theory propounded by Clayton Alderfer
is indeed a reaction of Maslow’s Theory. He
argued that there are three core needs which he
classified as “Existence, Relatedness and
Growth” (ERG).
The Existence need has to do with the satisfaction
of our basic material requirements such as food,
water, pay and working conditions, they can be
classified as physiological and safety needs.
The relatedness need is similar to the social role
needs of Maslow’s Theory and this includes social
and interpersonal relationship.
Finally, the Growth needs are intrinsic desire for
personal development or making creative
productive contribution.
Furthermore, Alderfer argued that if the
gratification of a higher-level order need is stifled,
the desire to satisfy a lower level need increase
i.e. frustration, regression and dimension. In other
words, if a person fails to satisfy a higher-level
need, he/she moves back to a lower-level need,
which then acts as a motivating force.
This frustration – regressive – dimension can be
illustrated below.
Frustration of
Growth Needs
Importance of Growth Needs
Satisfaction of Growth Needs
Frustration of
Relatedness Existence
Importance of Relatedness Needs
Satisfaction of Relatedness Needs
Frustration of
Existence Needs
Importance of Existence Needs
Satisfaction of Existence Needs
Source: Gibson Ivancevich and Donnelly 1997,
Organizational Irwin. McGraw Hill, Boston.
c. LEARNED NEEDS THEORY
David McClelland proposed learned needs of
motivation, which according to him is associated
with learning concepts. He identified three needs
that motivate people. these are:
The need for achievements.
The need for affiliation.
The need for power.
The need for achievement: This is the need/desire
to set challenging goals, work to achieve the
goals or the drive to excel in relation to set
standards. The need for achievement is defined
by the following desires, “to accomplish
something difficult: to master, manipulate or
organize physical objects human beings or ideas.
To rival and surpass others. To increase self-
regard by the successful exercise of talent.
The need for affiliation: This is the need to be
liked and accepted by others. People with the
need strive for friendship, prefer cooperative
situations rather than competitive situations and
desire relationship involving a high degree of
mutual understanding. People with a high need
for affiliation prefer to spend more time
maintaining social relationship, joining groups,
etc. individual with a high degree of this need are
not effective managers or leaders because they
will find it difficult to make decisions without
worrying about the feeling of others or being
disliked by others.
The need for power: This is the dislike to have
impact, to be influence and to control others.
They also have the desire to coach, teach or
encourage others to achieve, they love to work
and are concerned with discipline and self-
respect. The need for power has both negative
and positive sides. The negative side is
manifested in a winner’s takes all mentality e.g.
“if I win, you lose”. The positive side is focused
on accomplishing group goals and helping others
obtain the feeling of competence.
PROCESS THEORIES OF MOTIVATION
These are theories that describe and analyzed
how behaviour is energized, directed, sustained
and stopped. While it is true that people work in
order to satisfy their needs, some employees want
to work and do good job and in some case,
employees may exhibit effort beyond the level
where the reward surpassed their need. It is
therefore the duty of management to provide an
environment that facilitates high-level of
performance. Because at this point, what
motivates the employee is not the desire to
satisfy their needs but rather factors in the
environment. This is the basis of the process
theories of motivation.
Three of the process theories of motivation will be
discussed here, these are:
· Goal setting theory.
· Expectancy theory.
· Equity theory.
a. Goal Setting Theory: This theory was
propounded by Edwin Locke (1968)
Directing One’s
Attention
Regulating One’s Effort
Increasing One’s Performance
Encouraging of the Development of Goal
Attainment Strategies of Action Plan
Goals Motivate the Individual
By -------------------
Task Performance
A Theory of Goal Setting and Task Performance.
According to the above model proposed by Locke,
goals setting have four motivational mechanisms:
a. Goals Direct Attention: behaviours are goal-
oriented. Goals that are personally meaningful
tend to focus one’s attention on what is relevant
and important. This is because the perceived
outcome of such behaviour is desired and
cherished by the person exhibiting the behaviour.
b. Goals Regulate Effort: The level of effort
exhibited is proportionate to the difficulty of the
goal. In other words, a goal that appears difficult
to attain will elicit a greater effort if personally
desired. On the other hand, easily attained goals
will require little efforts.
c. Goals Increase Persistence: Persistence here
means the effort expended on a task over an
extended period of time. In the pursuance of an
objective or a goal, difficulties may arise, there is
always the tendency for people to abandon the
pursuit of this goal or objective where they are
not personally involved in the setting of the goal.
On the contrary, when people are involve din the
goal setting process, they are likely t o persist in
their effort towards attaining the goals.
d. Goals Foster Strategies and Action Plans:
Setting of goals or stating performance standard
is the first step towards attaining these goals.
However, it is important to ask the question, “How
are the goals going to be achieved?” When goals
are set, it encourages people going to be
achieved. When goals are set, it encourages
people to develop strategies and action plans that
will enable them achieve the goals.
VROOM’S EXPECTANCY THEORY
In 1964, Victor Vroom proposed an Expectancy
Theory of Motivation in which he defined
motivation as a process governing choice among
alternative form of voluntary activity.
To understand the individual’s choice of voluntary
activities, it is important to first appreciate certain
concepts that are embedded in the expectancy
theory. These concepts are:
Ø Outcome: This is the result of doing a particular
thing. The outcome can be first level or second
level. The first level outcomes are the product of
behaviour associated with doing the job such as
productivity and absenteeism, while the second
level outcomes are the product of the first level
outcome, which include punishment and reward.
Ø Instrumentality: This is the individual
perception or belief that the first level outcome is
associated with the second level outcome.
Instrumentality ranges from – 1 to + 1.
-1 Instrumentality is the perception that
attainment of second level outcome is certain
without the first level outcome and that second
level outcome is impossible with first level
outcome.
+1 instrumentality is the perception that first level
outcome is necessary and sufficient for the
second level outcome to occur.
0 Instrumentality is the perception that there is no
linkage between first level and second level
outcomes.
Ø Valence: This is the preference for outcome.
Among the second level outcomes which of them
do the student for example prefer? Does the
student desire an A,B,C,D,E, or F score in the
examination or a first class, second class upper,
second class lower, third class or pass?
Ø Expectancy: This refers to the individual belief
concerning the likelihood or subjective probability
that a particular behaviour will be followed by a
particular outcome. That is an exhibited behaviour
can elicit a particular outcome. Expectancy ranges
from 0 to + 1.
O Expectancy: This implies that there is no
chance of the occurrence of an outcome after the
behaviour.
+1 Expectancy: This implies that the outcome will
certainly follow the behaviour.
Ø Force (M): This is equated to motivation. The
intent of expectancy theory is to assess the
magnitude and direction of all the forces acting on
the individual. The act associated with the
greatest force is most likely to occur.
Ø Ability (A): This refers to a person’s potential
for doing a job. Ability could be physical or
mental.
Vroom used a mathematical equation to integrate
these concepts into a predictive model of
motivational force. Expectancy theory is therefore
based on the following principles:
V = E (V2 x I) i.e. the valence associated with t
he various first level outcome is a sum of the
multiplication of valences (V2) attached to all
second level outcomes with their respective
instrumentality (I).
(2) M = F (VI x E): Motivation is a multiplicative of
the valences for each first level outcome (VI) and
the perceived expectancy (E) that a given
behaviour w ill be followed by a particular first
level outcome. If expectancy is low, there will be
low motivation.
(3) P = F (M x A): The performance of a job is a
multiplicative function of motivation (forces) and
ability.
EQUITY THEORY OF MOTIVATION
The equity theory of motivation developed by
Stacey Adams holds that individuals who work in
exchange for rewards from organization are
motivated by a desire to be equitably treated at
work. Four importance components are involve
din the equity theory. These are:
v Person: The individual for whom equity or
inequity is perceived.
v Comparison other: Any individual or group used
by person as a referent regarding the ratio of
inputs and outcomes.
v Inputs: These are the individual characteristics
brought to the job by the person. These inputs
are the factors the individual considers when
making equity comparison. They include:
§ Time
§ Education/training.
§ Experience
§ Skills.
§ Creativity.
§ Seriously.
§ Age
§ Personality trait.
§ Effort expended
§ Personal appearance.
v Outcomes: These are what a person receives
from the job or what he/she gets in exchange
with his/her inputs. Factors to be considered
under outcome when making equity comparism
include:
§ Pay/bonuses.
§ Fring benefit.
§ Challenging assignment.
§ Job security.
§ Career advancement.
§ Status symbols.
§ Pleasant/safe working environment.
§ Opportunity for personal growth/development.
FREDERICK HERTZBERG – HYGIENE THEORY
His approach is similar to that of Maslow though
more practical. He has broken motivation into
two. The hygiene/disatisfier and the motivators/
satisfier. The lower level needs are identified as
Hygiene factors and t eh higher level needs are
motivators. Security need and the social needs
while the higher-level needs comprise the ego/
esteem needs and the self-actualization needs.
Hygiene factors are those absence of which cause
dissatisfaction and indifference when present e.g.
salary, working condition, inter-personal relation
supervision company policy and administration.
Motivators are those the absence of which does
not demotivate workers while the presence really
motivate them e.g. Responsibility, career growth
and advancement, achievement recognition and
job enrichment.
HENRY L. GANTT (TASK AND BONUS SYSTEM)
He was a contemporary of Taylor in the
management movement. Gantt was one of the first
to give major attention to human relations in
industry – particularly humanizing management
science, as distinguished from Taylor’s emphasis
on financial incentives. Well, Gantt’s first original
contribution to management science was his
concept of the “Task and Bonus” system of wage
payment, which differed from Taylor’s piece rate
system in that Gantt believed that scientific
management should entail the study of problems
according to the scientific methods, moreso these
tasks or incentives to motivate. According to him,
when these are accomplished, efficiency will be
enhanced.
Another notable contribution of Gantt in this
movement is the fact that he stressed the point
that the training of workers should be the sole
responsibility of management. This is evidently in
practice in majority of organizations today.
ELTON MAYOR
His theories were borne out of the criticism of
Hawthorne research. According to mayor, no
change in any work condition could result solely
from physical change but rather such a change
could only occur as a result of the change in
workers attitude. At the bottom of t eh triangle are
t eh needs of our animalistic nature for self-
preservation for sleep, food including shelter etc.
These are the basic needs once satisfied they
cease to be strong motivators to increase
productivity or action. Thus, as human beings to
feel more materially secured his higher needs for
self-expression will begin to be strong. It follows,
therefore, that, in stable circumstances and with
proper management, the majority of the men can
be self-directed if they become committed to an
objective they value. They will not only accept
responsibility but often will seek it, then to work
will be as natural as to eat or to sleep as in
McGregor’s Theory Y.
In other words, man can be self-motivated. The
task of the manager (as one who accomplishes
his objectives through others) is to create
conditions of work in which and through which
self-motivations can find its release. In situations
where this is difficult to achieve as in dull,
repetitive work, higher pay remains the paramount
importance. Since workers are forced to find
satisfaction outside the work situations.
DOUGLAS McGREGOR (THEORY X & Y)
He believe in group decision-making, which is
constant with individual responsibility. McGregor
is more particularly, for his influential model in
which he contrasts two views of man in the
working situations.
This, he, conveniently termed Theory X and Y.
According to Theory X, he prosecuted that:
The average person has an inherent dislike for
work and w ill try to avoid it if possible.
The average person lacks ambition, dislikes work
responsibility and preferred to be closely directed,
coerced, controlled, and threatened with
punishment to get him to put forth adequate effort
towards the achievement of corporate objectives.
The average person is resistance to change.
The average person is by nature self-centred and
indifference to corporate goals.
On the other hand, theory Y says the above is not
totally true because:
· The average person is not (as a fact) by nature,
passive or resistant to the organization needs.
That the expenditure of physical and mental effort
in work is as natural as play or rest.
· In fact, external control and the threat of
punishment are not the only means for bringing
about efforts towards organizational goals.
Particularly, economic benefits and job security,
as a fact, are just only two of the possible
rewards desired by the average man.
· The average human being leans, under the ideal
conditions, to accept and seek responsibilities –
wants to exercise autonomy and creativity to aid
his/her growth ant eh accomplishment of
corporate objectives.
In view of the above assumptions, McGregor
thinks that the best managers could do is to use
both theories (since they are “legitimate” beliefs
about the nature of man that influence managers)
to adopt one strategy than another situationally –
that is, depending upon a prevailing situation, a
manager who holds the belief, say, of theory X,
could adopt a considerable array of strategies
(either X or Y).
2.3 CURRENT LITERATURE REVIEW
2.3.1 DEFINITION OF MOTIVATION
Several management scholars have given several
definitions of motivation. According to Middle
Most and Hitt (1981), “Motivation is the willful
desire to direct one’s behaviour toward goals. The
three key elements in this definition are willful
desire (Person’s choice), behaviour, and goal-
directed purpose of behaviour.
Wallace and Andrews Zilagy (1994) opine that
“Motivation is a dynamic process that, motivate,
energizes, directs and determines change in
behaviours. It must be understood from the onset
that motivation is not only rewards and
punishment; it includes ideas, expectations and
experience. When it comes to motivation, people
mostly act on perception and not reality”.
Lakin Folajin (2001), spoke at motivation as term
used generally when somebody is stimulated, the
interest of a workers so as to be able to work and
bring or breeds efficiency in his work.
Luthans (1998), Motivation is a process which
starts with a physiological or psychological
deficiency or need that activates behaviour at a
drive that is aimed of a goal or incentive.
Ateman and Snell (1999) see motivation as the
forces that energizes, direct and sustains a
person’s effort.
Robbins (2001) defines motivation as the
processes that account for an individual’s
intensity, direction and persistence of effort
towards attaining a goal.
Joena Agbato (1988) says “motivation is an
important determinant of human behaviour, it sit
ht which movies one towards a goal, thus,
motivation begat performance”.
Translated, it means when one is motivated, it
precipitates a behaviour and this leads to
performance. This means (100%) that one is
positively motivated. It leads to positive
behaviours and thus writes’ agree that motivated
behaviour is goal-directed behaviours, which is
behaviour resulting from internal drives. This
internal devices or (tension) are the roof of
motivation. Hence, it is important for managers to
motivate behaviour so as to reduce these
‘tension’ even though it has been agreed that
these motivation behaviour are “innate”. It should
be stated, that sometime, external force can
dominate and determine behaviour. Yet, at other
times, it is directed towards self-satisfaction. Most
significantly, behaviour is directed to obtain want,
which will satisfy needs.
Ricky Griffin (1984) defined ‘motivation’ as a
cyclical process affecting the inner needs that he
or she wants to satisfy. Although there are certain
common human needs, each person also has his
own particular needs. Our strong needs provide
us with personal goals that satisfy needs.
The intensity of needs and drive varies widely
from one person to another. It is the strongest
drive. The sound manager therefore, tries t o
recognize the strong need especially the
dominating ones in particular individuals. By so
doing, he is able to understand his subordinates
or employees and this will go a long way in
achieving the enterprise objectives.
NEED WANT SATISFACTION CHAIN
NEED WANT TENSION
ACTION SATISFACTION
In conclusion, Gibson (1997) defined motivation
as the concept used to describe the forces acting
on or within an individual to initiate and direct
behaviour.
The definition by Gibson portends two basic
classifications of variables that could motivate
people to work. These are variables acting on the
individuals, these variables are external (process)
therefore can be controlled by other people. The
other set of variables are the variables acting
within the individual (content) these variables are
internal and reflects the state of need of the
individual.
From these definitions, three basic elements can
be seen as inherent in the concept of motivation.
These elements are:
v Intensity: This refers to the degree of effort
exerted by an individual or employee towards
organizational goals. Employees put up different
degrees of effort in achieving organizational goals.
v Direction: This refers to the area in which the
employee directs his effort to, within the
organization. If employee’s efforts are not directed
towards organizational goal then the efforts are
exercised in futility.
v Persistence: This refers to the extent to which
effort or behaviour can be sustained. A t the
commencement of work, a new employee is likely
to exhibit a high degree of effort towards the
organizational goals, but for how long can this
employee sustain this effort?

DEFINE MANAGEMENT, ITS FUNCTIONS AND PRINCIPLES

     Management is the process of reaching
organizational goals by working with and through
people and other organizational resources.
Management has the following 3 characteristics:
1. It is a process or series of continuing and
related activities.
2. It involves and concentrates on reaching
organizational goals.
3. It reaches these goals by working with and
people and other organizational
resources.
MANAGEMENT FUNCTIONS:
The 4 basic management functions that make up
the management process are described in the
following sections:
1. PLANNING
2. ORGANIZING
3. INFLUENCING
4. CONTROLLING. PLANNING : Planning involves choosing tasks that
must be performed to attain organizational goals,
outlining how the tasks must be performed, and
indicating when they should be performed.
Planning activity focuses on attaining goals.
Managers outline exactly what organizations
should do to be successful. Planning is concerned
with the success of the organization in the short
term as well as in the long term.
ORGANIZING:
Organizing can be thought of as assigning the
tasks developed in the planning stages, to various
individuals or groups within the organization.
Organizing is to create a mechanism to put plans
into action.
People within the organization are given work
assignments that contribute to the company’s
goals. Tasks are organized so that the output of
each individual contributes to the success of
departments, which, in turn, contributes to the
success of divisions, which ultimately contributes
to the success of the organization.
INFLUENCING :
Influencing is also referred to as motivating,leading
or directing.Influencing can be defined as guiding
the activities of organization members in he
direction that helps the organization move towards
the fulfillment of the goals.
The purpose of influencing is to increase
productivity. Human-oriented work situations
usually generate higher levels of production over
the long term than do task oriented work situations
because people find the latter type distasteful.
CONTROLLING:
Controlling is the following roles played by the
manager:
1. Gather information that measures
performance
2. Compare present performance to pre
established performance norms.
3. Determine the next action plan and
modifications for meeting the desired
performance parameter

PRINCIPLES OF MANAGEMENT?
DESCRIPTION
The 14 Management Principles from Henri Fayol
(1841-1925) are:
1. Division of Work . Specialization allows the
individual to build up experience, and to
continuously improve his skills. Thereby he can be
more productive.
2. Authority. The right to issue commands, along with
which must go the balanced responsibility for its
function.
3. Discipline . Employees must obey, but this is two-
sided: employees will only obey orders if
management play their part by providing good
leadership.
4. Unity of Command . Each worker should have only
one boss with no other conflicting lines of
command.
5. Unity of Direction . People engaged in the same
kind of activities must have the same objectives in
a single plan. This is essential to ensure unity and
coordination in the enterprise. Unity of command
does not exist without unity of direction but does
not necessarily flows from it.
6. Subordination of individual interest (to the general
interest). Management must see that the goals of
the firms are always paramount.
7. Remuneration. Payment is an important motivator
although by analyzing a number of possibilities,
Fayol points out that there is no such thing as a
perfect system.
8. Centralization (or Decentralization). This is a
matter of degree depending on the condition of the
business and the quality of its personnel.
9. Scalar chain (Line of Authority). A hierarchy is
necessary for unity of direction. But lateral
communication is also fundamental, as long as
superiors know that such communication is taking
place. Scalar chain refers to the number of levels
in the hierarchy from the ultimate authority to the
lowest level in the organization. It should not be
over-stretched and consist of too-many levels.
0. Order. Both material order and social order are
necessary. The former minimizes lost time and
useless handling of materials. The latter is
achieved through organization and selection.
1. Equity . In running a business a ‘combination of
kindliness and justice’ is needed. Treating
employees well is important to achieve equity.
2. Stability of Tenure of Personnel . Employees work
better if job security and career progress are
assured to them. An insecure tenure and a high
rate of employee turnover will affect the
organization adversely.
3. Initiative . Allowing all personnel to show their
initiative in some way is a source of strength for
the organization. Even though it may well involve a
sacrifice of ‘personal vanity’ on the part of many
managers.
4. Team Spirit (Esprit de Corps) . Management must
foster the morale of its employees. He further
suggests that: “real talent is needed to coordinate
effort, encourage keenness, use each person’s
abilities, and reward each one’s merit without
arousing possible jealousies and disturbing
harmonious relations.”
WHAT IS MANAGEMENT? FIVE ELEMENTS
Fayol's definition of management roles and actions
distinguishes between Five Elements:
1. Prevoyance . (Forecast & Plan). Examining the
future and drawing up a plan of action. The
elements of strategy.
2. To organize. Build up the structure, both material
and human, of the undertaking.
3. To command . Maintain the activity among the
personnel.
4. To coordinate . Binding together, unifying and
harmonizing all activity and effort.
5. To control. Seeing that everything occurs in
conformity with established rule and expressed
command.
ORIGIN OF THE 14 PRINCIPLES OF MANAGEMENT.
HISTORY
Henri Fayol (1841-1925) was a French
management theorist whose theories in
management and organization of labor were widely
influential in the beginning of 20th century. He was
a mining engineer who worked for a French mining
company Commentry-Fourchamboult-Decazeville,
first as an engineer. Then he moved into general
management and became Managing Director from
1888 to 1918. During his tenure as Managing
Director he wrote various articles on
'administration' and in 1916 the Bulletin de la
Société de l’ Industrie Minérale, printed his
"Administration, Industrielle et Générale –
Prévoyance, Organisation, Commandement,
Coordination, Contrôle". In 1949 the first English
translation appeared: ‘General and Industrial
Management’ by Constance Storrs.
USAGE OF THE 14 MANAGEMENT PRINCIPLES.
APPLICATIONS
Change and Organization.
Decision-making.
Skills. Can be used to improve the basic
effectiveness of a manager.
Understand that management can be seen as a
variety of activities, which can be listed and
grouped.
Book: Henri Fayol - General and Industrial
Management -
Principles of Management - Fayol Forum (40
topics) Help
Management Mantras
What is the present management mantra practiced
in your organisation? A paradigm shift in
management may lead to innovations which may
lead to new applications.
Or are the old management theories still being
practiced in your organization?...
Books by Henri Fayol on Management
Has he written any books? I can only find articles
about his management style, but no books. Please
help....
Exactly Where are the 14 Principles of Fayol
Located?
I am writing an essay which encompasses Fayol's
theory and applying it to a modern business. I
have a copy of General and Industrial Management
to hand but I'm having difficulty to find a reference
to the 14 principles in the book.
Are these pri...
The Contribution of Henri Fayol to Strategy
The biggest contribution Fayol made to the
discipline of management or administration is not
his 14 principles or the 5 functions of a manager.
In my opinion, it was to identify that there is a
framework of strategies common to all
organizations...
Current Research on Fayol / 14 Principles?
Although they are now almost 100 years old, we
seem to agree that Fayol's principles continue to
be relevant today.
Do you know of any research teams who are
currently working on ...
Are Fayol's Principles of Management also
applicable to non-profit organizations?
Fayol's principles of management were written
having industrial (mining) firms in mind. Obviously
these are for profit companies.
Are the 14 principles also applicable to non-profit
organizations? Which principles would have to be
changed should...
On the 4th Principle: Unity of Command
According to Fayol's 4th Principle, Unity of
Command, I should receive instruction from one
boss who is my immediate manager.
However I have been instructed by other managers
from other department too. And even by my
colleagues. These instructio...
Difference between Adminstration and
Management
Should't Fayol's principles be called the 14
principles of Administration? Why was
'administration' (in the French language) translated
into English in 1949 as 'management'? What
differences are there between the area of studying
administratio...
All of These Principles are Obvious Features
In every organization, we can see all of them but
we can't classify the companies with them. For
example: classify to efficient or non efficient
organization, competitive or primitive, dynamic or
static, etc.
These principles just tell us how an...
Manager in Conflict with Top Management...
Conflicts occur regularly in almost all
organisations. Managers having a conflict with top
management normally have to accept the decision
and command of top management.
But quite often, the manager might be right as he
is the one who is convers...
(Why) Do we Need Managers?
Why do we need managers? They are a layer of
cost and add no real value, so why do we have
them? Most specialists left their field to be
managers and usually hate it and perform at lower
levels than in their previous roles.
What if we reduced ma...
Managers versus Leaders
Not all managers are good leaders and not all
leaders are good managers. We need to develop
both managers and leaders to realize the vision
and mission of the company....
On #9: Scalar Chain has to be Modified for
Current Times
Had Fayol been alive today, he would have
modified scalar structure as the hierarchy is
different and structures are much more flat today.
People are working in different countries on a
single project and individual responsibility is
bigger combined ...
Fayol's Management Roles
Fayol mentioned 5 roles (or actions):
1. Prevoyance.
2. To organize.
3. To command.
4. To coordinate.
5. To control.
Apart from these 5 managerial functions or roles in
my view:
6.
Fayols Principles are the Basis of Many Later
Management Concepts
Many recent management principle are extension
of these 14 concepts. The only difference is often
that they are confined to a set of more practical
concepts to survive in the highly competitive
global market....
Some Items May Be Missing, But...
Dear all, we can now identify what is missing in
the 14 principles. But when there were no
principles, could we imagine the missings?
The 14 Principles of Fayol are the fundamental
thoughts of management and now others items
can be added in mana...
Add #15 Principle: Conformity to the Basic
Origin
Aristotle noticed that well-being everywhere
depends on two things: a choice of the correct
goal , and a choice of a correct way of its
achievement. In other words, to do the right things
in the right way.
The 14 principles of Fayo...
Need for Employees' Welfare in the Principles
It is obvious that in this 14 principles something is
missing: the inclusion of "staff welfare". Because
after all proper measures has been put in place,
and the end-result is achieved, what becomes of
this team that achieved this goal, apart from be...
School Based Management
For school based management, behavioural
aspects of management will be predominant while
for higher levels the nitty-gritty of business will be
more important....
What is Prevoyance? Explanation
Prevoyance is the function of management which
says one must examine the future and draw a
plan. How hard is it to forecast what needs to be
done in the future? I need
The Principles of Management
Management principles are guidelines for the
decisions and actions of managers. They were
derived through observation and analysis of
events faced in actual practice.
The Principles of Management are the essential,
underlying factors that form the foundations of
successful management. According to [ Henri
Fayol ] (1841-1925) in his book General and
Industrial Management (1916), there are
fourteen 'principles of management'. These can
be used to initiate and aid the processes of
change, organization, decision making, skill
management and the overall view of the
management function.
Division of Work
The specialization of the workforce according to
the skills of a person , creating specific
personal and professional development within
the labour force and therefore increasing
productivity; leads to specialization which
increases the efficiency of labour. By separating
a small part of work, the workers speed and
accuracy in its performance increases. This
principle is applicable to both technical as well
as managerial work. this can be made useful in
case of project works too.
Authority and Responsibility
The issue of commands followed by
responsibility for their consequences. Authority
means the right of a superior to give enhance
order to his subordinates; responsibility means
obligation for performance. This principle
suggests that there must be parity between
authority and responsibility. They are co-
existent and go together, and are two sides of
the same coin.
Discipline
Discipline refers to obedience, proper conduct
in relation to others, respect of authority, etc. It
is essential for the smooth functioning of all
organizations.
Unity of Command
This principle states that every subordinate
should receive orders and be accountable to
one and only one superior. If an employee
receives orders from more than one superior, it
is likely to create confusion and conflict.Unity
of Command also makes it easier to fix
responsibility for mistakes.
Unity of Direction
All those working in the same line of activity
must understand and pursue the same
objectives. All related activities should be put
under one group, there should be one plan of
action for them, and they should be under the
control of one manager.
It seeks to ensure unity of action, focusing of
efforts and coordination of strength.
Subordination of Individual Interest
The management must put aside personal
considerations and put company objectives first.
Therefore the interests of goals of the
organization must prevail over the personal
interests of individuals.
Remuneration
Workers must be paid sufficiently as this is a
chief motivation of employees and therefore
greatly influences productivity. The quantum
and methods of remuneration payable should be
fair, reasonable and rewarding of effort.
The Degree of Centralization
The amount of power wielded with the central
management depends on company size.
Centralization implies the concentration of
decision making authority at the top
management. Sharing of authority with lower
levels is called decentralization. The
organization should strive to achieve a proper
balance.
Scalar Chain
Scalar Chain refers to the chain of superiors
ranging from top management to the lowest
rank. The principle suggests that there should
be a clear line of authority from top to bottom
linking all managers at all levels. It is
considered a chain of command. It involves a
concept called a "gang plank" using which a
subordinate may contact a superior or his
superior in case of an emergency,defying the
hierarchy of control.However the immediate
superiors must be informed about the matter
Order
Social order ensures the fluid operation of a
company through authoritative procedure.
Material order ensures safety and efficiency in
the workplace. Order should be acceptable and
under the rules of the company
Equity
Employees must be treated kindly, and justice
must be enacted to ensure a just workplace.
Managers should be fair and impartial when
dealing with employees.
Stability of Tenure of Personnel
The period of service should not be too short
and employees should not be moved from
positions frequently. An employee cannot render
useful service if he is removed before he
becomes accustomed to the work assigned to
him.
Initiative
Using the initiative of employees can add
strength and new ideas to an organization.
Initiative on the part of employees is a source of
strength for organization because it provides
new and better ideas. Employees are likely to
take greater interest in the functioning of the
organization.
Esprit de Corps
This refers to the need of managers to ensure
and develop morale in the workplace;
individually and communally. Team spirit helps
develop an atmosphere of mutual trust and
understanding.
Key Roles
Fayol also divided the management function
into five key roles: [1]
To organise
To plan and forecast (Prevoyance)
To command
To control
To coordinate

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