Definition of Motivation: Motivation is a word used to refer to the reason or

reasons for engaging in a particular behavior - especially human behavior. These

reasons may include a drive, a need, a desire to achieve a goal, a state of being, or
an ideal. In human beings, motivation involves both conscious and subconscious
drives.

Importance of Motivation:
a) Puts human resources into action
Every concern requires physical, financial and human resources to accomplish the
goals. It is through motivation that the human resources can be utilized by making
full use of it. This can be done by building willingness in employees to work. This
will help the enterprise in securing best possible utilization of resources.

b) Improves level of efficiency of employees

The level of a subordinate or a employee does not only depend upon his
qualifications and abilities. For getting best of his work performance, the gap
between ability and willingness has to be filled which helps in improving the
level of performance of subordinates. This will result into Increase in productivity,
Reducing cost of operations, and
Improving overall efficiency.
c) Leads to achievement of organizational goals
The goals of an enterprise can be achieved only when the following factors take
place : There is best possible utilization of resources,
There is a co-operative work environment,
The employees are goal-directed and they act in a purposive manner,
Goals can be achieved if co-ordination and co-operation takes place
simultaneously which can be effectively done through motivation.

d) Builds friendly relationship

Motivation is an important factor which brings employees satisfaction. This
can be done by keeping into mind and framing an incentive plan for the
benefit of the employees. This could initiate the following things:
Monetary and non-monetary incentives,
Promotion opportunities for employees,
Disincentives for inefficient employees.
In order to build a cordial, friendly atmosphere in a concern, the above
steps should be taken by a manager. This would help in:
Effective co-operation which brings stability,
Industrial dispute and unrest in employees will reduce,
The employees will be adaptable to the changes and there will be no resistance
to the change,
This will help in providing a smooth and sound concern in which individual
interests will coincide with the organizational interests,
This will result in profit maximization through increased productivity.

e) Leads to stability of work force

Stability of workforce is very important from the point of view of
reputation and goodwill of a concern. The employees can remain loyal to
the enterprise only when they have a feeling of participation in the
management. The skills and efficiency of employees will always be of
advantage to employees as well as employees. This will lead to a good
public image in the market which will attract competent and qualified
people into a concern. As it is said, Old is gold which suffices with the
role of motivation here, the older the people, more the experience and their
adjustment into a concern which can be of benefit to the enterprise.

Get Motivated, Be Motivated, Stay Motivated

Every men or woman, regardless of race, color or creed will need some
motivation at some point in life.
Although life is filled with up and down moments and experiences, people are
constantly bombarded by pressures from every quarter of life and confronted by
many issues needing attention. The down moments of life may deplete your
motivational bank accounts and erode your emotions leaving you drained and
dry.
You are probably here today because you need a power surge that will replenish
and uplift your spirit.

Why do you need motivation?

You need motivation to keep you focused.
You need motivation to make you feel confident and self-assured.
You need motivation to remind you that you are capable of doing
whatever you set your mind to do.
You need motivation to lift your spirit when you are feeling blue.
You need motivation to put a smile on your face.
You need motivation to accomplish your goals.
You need motivation to make something of your life.

Could this be you?

Are you feeling stuck?
Are you hounded by feelings of under achievement?
Is there more to you than meets the eye?
Are you tired and have had enough?
Are you bored of your daily ho-hum existence and want to start living an
exciting life?
Are you wondering what more you can do with your life?
Do you need support to achieve your goals?

 Types of Motivation:
a) Achievement: This is an intrinsic thing. A burning desire to achieve
certain goal can be one of the most power motivations. When you set a
goal worthy of you and keep thinking about it day in and day out, it
soon becomes an all consuming desire and this alone can drive you to
achieve any goal you set for yourself. You should take the time to find
your life purpose, and then embark on the process of setting and achieving
goals.
b) Change: It is the drive to bring about a change in your environment. This
is usually a result of frustration with the way things are and you want
to change it for the better. This causes you to think of a better place you
want to be rather than where you are currently.

C) Power: This is the drive to influence others to get what you want. This
is mostly observed in Politics and intensely competitive work place.
D) Incentive: It is the drive to perform a task in anticipation of a reward. This
is the carrot piece of carrot and stick approach used by some managers.
E) Fear: In some situations, you may be driven to do certain task out of fear
(of losing job or losing friendship or trust). In the work environment, some
managers use this tactic. This is the stick part of the carrot and stick
approach

E) Social: This is an external driver. Intense desire to be recognized by others

(either as an equal or part of a group). If you constantly worry about being
accepted or appreciated by others, it is likely that actions you take are geared
towards pleasing others. This is a social or affiliate motivation.

 Motivational Techniques
Business Promotion: Give your employees small things like pencils, pens,
or even coffee mugs. All with your companies logo on the them. You may
even choose to do polo shirts, hats and jackets. With many great graphic
software options your employees and company will standout.

Surveys: Surveys are used widely today by almost every company.

Surveys are designed to provide feedback about any topic. Companies than
use the feedback to discover problems and solutions. They may even shed
light on possible new opportunities that were previously overlooked.

 Understanding Employees: Spending a little time with each of your

employees will go a long way. Don't just talk about work, try to find out what
they like to do outside of work. These will be things you can talk about form
time to time. Your employees will come to the conclusion that you actually care
about them.

Building Employee Recognition Program: Employee recognition programs

can be as big or small as you want. These programs are designed to motivate
employees through awards. Set up an employee of the month program. Use
awards like gift cards, days off, choice of shifts, etc, to really create excitement.
Use traditional things like plaques and coffee mugs that say employee of the
month.

 Enjoyable Work Environment: This may be one of the most important

techniques. Having a pleasant workplace environment will help in motivating
employees and increase performance. Having fun is also a great way to manage
Stress.

Assemble Roundtable Committee: Bring together five or six key people like
mid level leaders, Department Heads, etc. Then have that group elect one
representative. This individual will meet with management to discuss issues and
concerns of the employees.

 There is no I in Team: This employee motivation technique can be sometimes

difficult to create. There are times when some employees just don't trust or like
each other. As leaders sometimes we have to force the issue to build teamwork.

Group employees into different groups for a variety of projects. Tie these
projects together with a recognition program and make it an contest. Keep in
mind that you should do something for the entire workplace no matter what the
outcome. This will help you keep the peace.

 Positive Reinforcement: When it comes to human nature we all like to be

appreciated. And in business this is no different. This employee motivation
technique can be used daily and will be effective. In the past leaders have used
fear tactics or other bad management practices. These ways just create an
negative atmosphere.
In today's world there are so many negative things going on. So it is no surprise
that it effects the workplace. As leaders we need to make an commitment to
appreciating our employees. Don't just say "good job", go out of your way by
buying coffee or lunch.

Motivation Theories
Maslows Hierarchy of Needs

 Physiological Needs: The physiological needs are shown at the bottom of

the pyramid because they tend to have the highest strength until they are
reasonably satisfied. Until these needs are satisfied to the degree needed
for the efficient operation of the body, the majority of the individuals
activities will probably be at this level and the other levels will provide him
with little motivation.
Safety and Security Needs: Once the physiological needs are satisfied to
a reasonable extent, other levels of need become important. In this level
come the needs for safety and security. In the industrial society, safety
needs may take considerable importance in the context of the dependent
relationship of employees to employers.

Social Needs (Belonging and Love) :After the first two needs are
satisfied, social needs become important in the need hierarchy. Since man
is a social being, he has a need to belong and to be accepted by various
groups. When social needs become dominant, a person will strive for
meaningful relations with others. In the organization, workers form
informal group environment. Such environments develop where the work
is routine, tedious or over simplified. This situation is made worse when
workers are closely supervised and controlled, but have no clear channel of
communication with management. In this type of environment workers
depend on informal groups for support of unfulfilled social needs such as
affiliation.

 Esteem Needs: The esteem needs are concerned with self respect, self
confidence, a feeling of personal worth, feeling of being unique and
recognition.
Self Actualization Needs: Self actualization is the need to maximize ones
potential, whatever it may be. This is related with the development of
intrinsic capabilities which lead people to seek situations that can utilize
their potential. This includes competence which implies control over
environmental factors, both physical and social, and achievement.

 Herzbergs Motivation / Hygiene Theory

Frederick Herzbergs motivation/hygiene theory assumes that one group of
factors, motivators, accounts for high levels of motivation. Another group
of factors, hygiene, or maintenance factors, can cause discontent with
work. Figure 1.1 compares Herzbergs motivators and hygiene factors with
Maslows needs of hierarchy.
The implication of Herzbergs research for management and HR practices
is that although managers must carefully consider hygiene factors in
order to avoid employee dissatisfaction, even if all these maintenance
needs are addressed, people may not be motivated to work harder. Only
motivators cause employees to exert more effort and thereby attain more
productivity, and this theory suggests that managers should utilize the
motivators as tools to enhance employee performance.

 According to Herzberg, there are ten motivational or Hygiene factors,

which are as listed below:
Motivational Factors
Achievement
Recognition
Work
Responsibility
Advancement
These factors are capable of having a positive effect on job satisfaction
often resulting in an increase in ones total output. An increase in these
factors will satisfy the employees; however, any decrease will not affect
their level of satisfaction. Since these increase level of satisfaction in the
employees, these can be used in motivating them for higher output.

 Hygiene Factors
Interpersonal Relations
Company policy / administration
Supervision
Salary
Working Conditions
These factors are not intrinsic parts of a job, but they are related to conditions
under which a job is performed. They produce no growth in a workers output;
they only prevent losses in workers performance due to work restrictions.
These factors are necessary to maintain a reasonable level of satisfaction in
employees. Any increase beyond this level will not provide any satisfaction to
the employees; however, any cut below this level will dissatisfy them. As such,
these are called as dissatisfies.

 McClellands Needs Theory: McClelland has identified three types of

basic motivating needs. He classified these as need for power, need for
affiliation and need for achievement. Considerable research work was done
by McClelland and his associates in this respect, particularly, on
achievement motive.
Need for achievement: McClellands found that people with a high need
for achievement perform better than those with a moderate or low need for
achievement.
McClellands identified the following three characteristic of high-need
achievers:
a) High need achievers have a strong desire to assume personal responsibility
for performing a task of finding a solution to a problem.
b) High need achievers tend to set moderately difficult goals and take
calculated risks.
c) High need achievers have a strong desire for performing feedback.

Need for Power: The need for power is concerned with making an important
others, the desire to influence other, the urge to change people, and the people,
and the desire to make a difference life. People with a high need for power are
people and events. This results in ultimate satisfaction to man.
People who have a high-need for power are characterized by
a) A desire to influence and direct somebody else
b) A desire to exercise control over others
Need for affiliation : The need for affiliation is defined as a desire to establish
and maintain friendly and warm relations with other people.
a) They have a strong desire for accepting and approval from others .
b) They value the feelings of others.

Theory X and Y
The basic assumptions about human behavior may differ considerably because
of the complexity of factors influencing this behavior. McGregor has
characterized these assumptions in two observe points - Theory X and Theory

.
Theory X
Y

These assumptions are as follows:

The average individual is by nature indolent he works as little as possible.

The average individual lacks ambition, dislikes responsibility, and prefers to

be lead.

The average individual is resistant to change, by nature.

The average individual is inherently self centered.

 Theory Y
People resistant to organizational goals
They want to assume responsibility.
They want their organizational to succeed.
They have need for achievement.

Theory Z
Theory Z based on the following postulates
Strong bond between Organization and employee
Employee Participation and involvement
HRD

Human Resources Compensation

The Concept of Compensation..
Compensation may be defined as money received in the performance
of work, plus the many kinds of benefits and services that
organization provide their employees. Compensation includes direct
compensation (gross pay) and indirect compensation (may consist
of life and health, accident insurance, the employers contribution to
retirement pay for vacation or illness, and payments for welfare as
social security)

Importance of Compensation:
Compensation and Reward system plays vital role in a business
organization. Since, among four Ms, i.e. Men, Material,
Machine and Money, Men has been most important factor, it is
impossible to imagine a business process without Men.
Every factor contributes to the process of production/business. It
expects return from the business process such as rent is the
return expected by the landlord, capitalist expects interest
and organizer i.e. entrepreneur expects profits. Similarly the
labour expects wages from the process.

 Labour therefore expects to have fair share in the

business/production process. Therefore a fair compensation
system is a must for every business organization. The fair
compensation system will help in the following:

 An ideal compensation system will have positive impact on

the efficiency and results produced by employees. It will
encourage the employees to perform better and achieve the
standards fixed.
Such a system should be well defined and uniform. It will be
apply to all the levels of the organization as a general system.
The system should be simple and flexible so that every
employee would be able to compute his own compensation
receivable.

 It will raise the morale, efficiency and cooperation among the

workers. It, being just and fair would provide satisfaction to the
workers.
Such system should also solve disputes between the employee
union and management.
Sound Compensation/Reward System brings peace in the
relationship of employer and employees.
The system provides growth and advancement opportunities
to the deserving employees.

 It aims at creating a healthy competition among them and

encourages employees to work hard and efficiently.

The perfect compensation system provides platform for happy

and satisfied workforce. This minimizes the labour turnover.
The organization enjoys the stability.

The business organization can think of expansion and growth if

it has the support of skillful, talented and happy workforce.

WAGE AND SALARY

ADMINISTRATION
DEFINITIONS AND CONCEPTS:
Wage: Wage and salary are often discussed in loose sense, as they
are used interchangeably. But Indian Labour Organization (ILO)
defined the term wage as "the remuneration paid by the employer
for the services of hourly, daily, weekly and fortnightly
employees." It also means that remuneration paid to production and
maintenance or blue collar employees.

 Salary: The term salary is defined as the remuneration paid to the clerical
and managerial personnel employed on monthly or annual basis.

As such, the term wage and/or salary can be defined as the direct
remuneration paid to an employee compensating his services to an
organization. Salary is also known as basic pay.

 OBJECTIVE OF WAGE AND SALARY ADMINISTRATION

To acquire qualified competent personnel: Candidates decide
upon their career in a particular organization mostly on the basis of
the amount of remuneration the organization offers. Qualified and
competent people join the best-paid organizations. As such, the
organizations should aim at payment of salaries at that level, where
they can attract competent and qualified people.

To ensure desired behavior: Good rewards reinforce desired

behavior like performance, loyalty, Accepting new responsibilities
and changes etc.

 To retain the present employees: If the salary level does not

compare favorably with that of other similar organizations,
employees quit the present one and join other organizations. The
organization must keep the wage levels at the competitive level, in
order to prevent such quits.
Secure internal and external equity: Internal equity does mean
payment of similar wages for similar jobs within the organization.
External equity implies payment of similar wages to similar jobs in
comparable organizations.
Motivate personal growth
Sustain high morale

 FLFACTORS AFFECTING WAGE/SALARY

LEVELS
Remuneration

in

Comparable

Industries:

Prevailing

rates

of

remuneration in comparable industries constituted an important factor in

determining salary levels. The organization, in the long-run, must pay at
least equal to the going rate for similar jobs in similar organizations.

Firm's Ability to Pay: One of the principal considerations that weigh with
the management in fixing the salary levels is its ability to pay. But in the
short-run, the influence of ability to pay may be practically nil. However,
in the long-run, it is quite an influential factor.

Relating to Price Index: The cost of living is another important factor that
influences the' quantum of salary. The employees select that their
purchasing power be maintained at least at the same level if not increased
by adjusting wages to changes in cost of living. In fact, in recent years, in
advanced countries, "a number of labour agreements have 'escalator'
clauses, providing for automatic wage and salary increase as cost of living
index rises." Dearness allowance is an allowance granted to the employees
with a view to combating onslaughts of soaring prices.

Union Pressure and Strategies: The wages are also often influenced by
the strength of Unions, their bargaining capacity and their strategies.

Government Legislations: Government legislations influence wage

determination. The two important legislations which affect wage fixation
are: the Payment of Wages Act, 1936 and the Minimum Wages Act, 1948.
The important provisions of the Payment of Wages Act, 1936 are: ensuring
proper payment of wages and avoiding all malpractices like non-payment,
under payment, delayed and irregular payment, payment in kind and undermeasurement of work.