An investigation into employee motivation in lyca mobile

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The proposed research will benefit in sales growth and will encourage the employee to work even harder and give his 100% towards the job which would be a good sign for the company. Motivation is different for every individual; it can be money, growth (career advancement), recognition and or personal development. The researcher concentrates on the money aspect and further discusses that by implementing an incentive plan for the employees, they can be really motivated. They already have their set patterns, processes and procedures. The basic idea behind this research is to understand the basic needs to motivate the employee and boost their energy in increasing the sales. This way we could test how for this research can be helpful to achieve organizational objectives and targets.

And once we bring in the incentive scheme and set specific target so that it would be easy for the entire workforce to achieve it. And they would know what their role would be in the company.

From employer's point of view motivation increases the sales, profit and employee retention and from an employee's point of view it brings in encouragement, recognition and hope for a good career in their respective fields. The researcher aims to identify how proper management of the employees through motivation can reflect in company's (Lycamobile in this case) performance.

1.2 Research Objectives:

To review the extant literature on employee motivation

To identify different models that help explain issues on employee motivation

To identify the motivational incentives provided by Lyca to its employees

To find out the causes of employee demotivation in Lyca mobile

To find out if there is a correlation between employee motivation and employee sales performances

To propose recommendation for improving employee motivation.

1.3 Research questions

What does the concept of employee motivation entail?

What are the different models of employee motivation?

What is the importance of employee motivation?

What can the organisation do to motivate the employee in lyca mobile?

Can better employee motivation lead to greater sales performance?

What do employees think about the current motivational incentives provided by Lyca?

What can Lyca do to improve employee motivation?

1.4 Researcher motivation for choosing topic

1.4.1 Personal Reason

The reason why the researcher took this research is because researcher wants to bring in an incentive plan. The researcher currently works as a manager responsible for improving and boosting employee motivations within the firm. This would help the employee get motivated. And will definitely bring up the sales as well. Researcher would like to take his own example, when the researcher started off with lycamobile the researcher was in sales there were no incentives and none of his team mates were happy and they would always talk about incentives. The researcher felt highly de-motivated and discouraged when he wasn't satisfied in pay and recognition wise for the work he did. There are couple of his friends who left the job only because they didn't get incentives. And there was another company who was providing incentives so they all went and joined there.

The reason why the researcher wants to implement the incentive plan is because there has been instances where the incentives had been planned and promised according to the sales demanded but was never fulfilled. As by just promising the incentive is not going to bring in any improvement but by implementing it will create interest and trust. The incentive plan is to increase the company's sales by retaining the existing employees and attracting new employees through proper motivation. As employee motivation is perhaps the biggest driver of organisational performance.

This research will help the researcher a lot because he wants to make a career out of it. Now researcher work as a stock manger in lycamobile, but down the line researcher would like to see myself somewhere in the middle management. I am with this company with a long period of time and researcher knows quite a bit about the companies' profile. Working with Lycamobile is a splendid experience. I got to learn how to attend in modern trade customers, how a mobile industries functions and how a good executive should behave and handle the work pressure. Lycamobile is one of the top companies in the mobile industry and it has captured 70% of the market shares. With the above analysis we can clearly see that the management is more efficient from the other leading companies the proper management which made the company to lead than the others and hold the market efficiently and effectively without redtapism.

1.4.2 Academic Reason

There are several theories governing motivation at different levels and situations. Apart from highlighting the most important theories, the researcher is hoping to formulate or postulate a theory. If this is not achieved, then the researcher wishes to draw upon the best premises suggested from the theories to implement a plan of action at Lyca Mobile. The researcher also believes that the solutions can be shared with other companies who face a similar dilemma.

Research context

Lycamobile is a prepaid SIM card product that provides low-cost, high-quality. International calls to over 1.2 million UK customers direct from mobile phones. Lycamobile is already distributed through a UK network of more than 115,000 retail outlets. The brand was initially introduced in the Netherlands in 2006 and is already Europe's largest pre-pay MVNO with 4.5 million customers across Europe. Present in six markets, Lycamobile continues to grow rapidly with further market launches planned throughout the remainder of 2009. With a mission to acquire seven million users by 2011 by providing the broadest distribution and highest quality services at the lowest cost in the mobile international calling market Lycamobile will be a market leading global MVNO. Recently it has launched a new product which is Lycamobile Plus, the user base of which is growing at a significant rate.

The main objective of Lycamobile is the profit maximization which each company thinks about. If they come to the market, their main motive is to earn the profit this profit can only be done if they do the good sales of their product by proper branding, advertisement and marketing. Their motive is also to hold the market in their field and they want to have the market leadership in their fields which is in network of mobiles. Their entire motive can only be achieved if they offer their customers the high quality service and should provide the call rates very cheaper as well as giving them good offers and try to satisfy them. This all objectives can take lycamobile to the top if they follow up the proper sequence which they decide and this all things can lead to the growth of the company. Lycamobile continuously monitors its employees and sees that they are satisfied with the policies and their feedback is taken into the account for every policy that changes it makes.

This organization is a major foundation of competitive advantage or it is becoming the most important objective to achieve goals of the lycamobile in future for long term basis. Lyca HR recruitments works on global basis to find and bring the best talent to lyca mobile .More than 200 staff working in HR teams to get the best talent. They are responsible to identify and recruit the top quality communication and professional skills to secure long term competitive advantage for company and same time promotion of the Lyca mobile company. Lyca mobile always try to improve the relationship with the employees and always try to develop the employee's faith for the company and develop the mutual trust between the employees and the company. Lycamobile always tries to recruit those people who are necessary for the job and if they are capable of that post. They always try to meet the requirement of the and wherever they feel they are going wrong they just try to formulate that so that they are able to achieve what they wish for. Lyca also rewards the people who do the excellent work for the companies benefit.


Literature Review

Definition of the research concept

Jones and George (2008) in their empirical work 'Contemporary Management' define motivation as the "psychological forces that determine the direction of a person's behaviour in an organization, a person's level of effort, and a person's level of persistence." The direction of a person's behaviour is described as "the many possible behaviours that a person could engage in." Effort is how "hard people work." Persistence "refers to whether, when faced with roadblocks and obstacles, people keep trying or give up."

The researcher strongly believes that the theories governing motivation would support the researcher's organisation and will help to implement action plans to increase employee motivation. This may answer the one fundamental question as to what will get the sales team motivated.

2.2. Importance of Motivation

Kreitner (1995) defined Motivation as "the psychological process that gives behaviour purpose and direction". In simple words it is the inner force that pushes individuals to achieve goals-both professional and personal.

It is a known fact that it costs more to replace staff than to retain them. The staff in each company would like to feel needed and respected so that they serve the interests of the company for a longer time. Employee productivity will not only increase but also possess high quality standards. So even during tough times such as the recent recession it is important to ensure employee morale is high.

There are several theories and models that govern motivation and its factors. The researcher wishes to discuss some of these theories that will be of value and connect with the research topic.

2.3 Maslow's Hierarchy of Needs

In 1943, Abraham Maslow erected a pyramid of what he called 'essential needs' based on their order of importance. Maslow supported the paradigm that it is human to want more and more, even if one already has the wants. So saying he placed basic needs at the bottom of the pyramid while the more complicated needs like influence and self-development were positioned at the top of pyramid. Maslow as cited in Kotler (2001) suggested that over a period of time the basic needs move higher up the pyramid depending on the circumstances so it is not necessarily a fixed or rigid order. Maslow as cited in Kotler (2001) points out that there is also a possibility that people may chose to sacrifice most of their needs, becoming martyrs in the process of living a life with high moral values. The five human motivational needs listed below are arranged by ascending order of importance:

Physiological- basic needs to be met for survival like hunger, thirst, sensory pleasures.

Safety - protection from pain or threat of danger.

Social- also called 'love' needs, which means wanting to give and receive love, have a sense of belonging.

Esteem- also called 'ego' needs, inclusive of self respect and respect for others.

Self-Actualization- the interpretation of this is 'what humans can be, they must be'. Maslow (1943) suggests that unsatisfied needs are motivators that can be met and fulfilled after which the next set of unsatisfied needs become motivators.

Figure 1.0


Connecting Maslow's (1943) hierarchy of needs with the Lyca mobile case study, a few interesting facts emerge like on the contrary to the theory, if the things that satisfy the basic needs are taken away, then the need to satisfy the higher order needs does not arise. For instance, an employee who has marital problems (level 3) will not be motivated to achieve sales targets (level 4) or expecting a person whose house is going to be claimed back by the building society (level 2) will not focus much on team work (level 3). Apart from the workplace assuming that the needs at one level are partially met, that does not stop people from wanting to connect with other people.

Maslow (1943) does not claim his theory to be complete, rather he allows scope for debates and practical applications. He suggests that his theory be used a blueprint to understand human behaviour. (Ibid) was able to predict behavioural changes in today's workplace half a century ago. The concept of self-actualization holds good for today's workplace scenarios and does provide the scope for organizations to construct motivational programmes for their employees.

2.3.1 McGregor's XY Theory

The famous XY Theory was propounded by Douglas McGregor in his 1960 book 'The Human Side of Enterprise'. McGregor was an American social psychologist, whose theory provided a platform to increase constructive management style and techniques, which is why even today McGregor's X-Y Theory is extensively used to derive ideas for organizational development. The theory is pretty straightforward because it only helps classify people into two distinct groups and how to manage them.

McGregor (1960) bifurcates management styles as follows:

Theory X

Managers who fall in the theory x category are likely to be more autocratic in terms of management style. They could also be very difficult to deal with although they could be perfectionists when it comes to work. When it comes to employees; the person will need constant supervision, shrugs off responsibility- will be perceived as the 'artful dodger', is not ambitious, wants job security. Most of the times, using punishment could coerce the person into doing a job.

Theory Y

Managers who belong to this category are said to have 'participative management' styles. They will be seen as people centric managers who believe in hands-on approach to everyday issues.

Employees who belong to this category are self-motivated, have a sense of direction in the pursuit of organisational objectives, shoulder responsibilities and take complete ownership, think out of the box for new ideas and will work hard to meet both organizational and personal goals.

2.3.2 Adam's Equity theory

In sync with the interpretation of theories suggested by Maslow, Herzberg and other pioneers of workplace and behavioural psychology, John Stacey Adams propounded his Equity Theory in 1963. The main hypothesis of this theory is that where there is justice and fairness, devoid of all biases and prejudices, people feel motivated to contribute their efforts and vice versa.

Adams (1963) gave his own interpretation of a reward-to-effort ratio by suggesting that all employees give their 'inputs' and take 'outputs'. Inputs are what are contributed into work like loyalty, sacrifices besides long working hours. Outputs are everything that is taken out in return like remuneration, benefits, recognition etc.

Figure 1.1


According to this theory, employees endeavour to have a fair balance between inputs and outputs, then benchmark them against the same ratio enjoyed by other employees in the same company or different company. When the results show a more positive ratio in other companies, that is when disappointment and resentment creep in. Being human, is being vulnerable to the environment one is in. This is why even rumours in the office grapevine have a negative impact on most people. It can be inferred that there is a sense of self-perception based on the way that the environment treats them and this affects individual self-esteem and motivation. So using the premise of the Equity Theory management policy makers should make the right policy decisions.

2.3.3 Herzberg's Two Factor Theory

One of the great original thinkers in management and motivational theories, Frederick Herzberg is credited with the construction of the two factor theory. He is the pioneer of the concept of 'job enrichment'. Herzberg's (1959) carried out research among 200 engineers and accountants and was able to prove that satisfaction and dissatisfaction at work stemmed from different factors not from opposing reactions as widely believed.

The two factor theory comprises of 'hygiene' and 'motivational' needs. Examples of 'hygiene' needs, also called 'maintenance' factors, are as follows:


Employee benefits and perks

Company Policy

Relationship with reporting supervisor, peers and subordinates

Ability to balance professional and personal life

'Motivational' needs are more intrinsic or felt by individuals, examples being



Job itself


Career Growth

Herzberg (1959) stated that under ordinary circumstances, people work hard to get the 'hygiene' needs fufilled, but once the needs are fulfilled then they begin their quest for new needs. So what companies are doing are essentially fulfilling hygiene needs ignoring motivational needs. What he was trying to help realize is that companies should 'care' more about their employees by managing them well.

2.4 Academic Debate

A major question posed to the research topic is why is Motivation so important?? Survival as the researcher points out- for both employees and organizations. Motivation is a complex function for managers to pursue as McGregor's (1960) XY theory points out depending on the individual.

Kovach (1987) observed as at different career stages motivation needs are different. For instance when an employee is much younger and when income increases, money becomes less of a motivator. But in later stages interesting work becomes more of a motivator. (Ibid) was able to categorically state this based on a study of industrial employees which yielded the following ranked order of motivational factors: (a) interesting work (b) full appreciation of work done and (c) feeling of being in on things.

Adam (1965) Equity Theory warns that when there is absence of appreciation for one's work, inequity may arise when there is appreciation for someone else's work. So in a bid to reinstate equity, the disgruntled employee might underrate the job of other employees or worse adopt revenge seeking tactics that might hurt the organizational goals and objectives.

Herzberg's two-factor theory stated that to the degree that motivators are present in a job, motivation will occur, but their absence does not lead to dissatisfaction. It is when the hygiene needs are absent from a job, dissatisfaction is bound to happen. Having said that hygiene needs prevent dissatisfaction, but do not lead to satisfaction.

The researcher at this stage would like to explore the possibility of managers attempting to do

Job enlargement to make work more interesting and appealing by increasing the number and variety of activities performed.

Job enrichment to make work more interesting and increase pay by adding responsibilities and giving remuneration in the form of stipends or gift vouchers.

Houran (2007) advises the introduction of team-based or small group incentives which would encourage individuals to contribute more 'inputs' as McGregor's (1960) XY theory describes. (Ibid) however warns that if a small percentage of money is doled out then employees will feel that this is a classic case of throwing peanuts at the monkeys in the zoo.

Martin (2001) in his empirical studies has raised questions on whether firms use the right methods or right thought process while recruiting potential employees. Once recruited, (Ibid) also states that firms cannot expect employees to be automatically motivated. The firm should endeavour to hire the right person 'fit' for the job, create enthusiastic work environment, show appreciation for a job well done, ensure that employees are sent for regular training programs, have regular staff meetings, set expectations with realistic goals, deal issues with logic and justice and get rid of unproductive employees.

4.1 Researchers own opinion

The above theories have shed light on the various facets of motivation. Despite considering which theory is followed, exciting work and employee pay seem to emerge as crucial motivating factors. The researcher has understood that scientific management of job design involves skill variety, task identity, task significance and feedback.

The researcher feels that if there is the right alignment between professional and personal goals, it is possible for the employees to be motivated. The company can organize workshops and other events wherein there could be ice breakers like team building games and activities. When employees participate in an event, compete against each other, they communicate better and respect each other. This is because by then prejudices, insecurities, hierarchies, misunderstandings would have been resolved after the initial feelings of discomfort and uncertainity. They will share a healthy but competitive work relationship.

There are other options to be explored such as job improvement, job enrichment, promotions, fiscal and non-fiscal compensation (like recognition) must be considered. It may or may not be possible for companies to tailor reward and recognition programs specifically for individuals but it is possible to formulate a program that is acceptable to both the company and the employees. Communication is key to keeping motivation very high

4.1 Research Concept

Jones and George (2008) in their empirical work 'Contemporary Management' define motivation as the "psychological forces that determine the direction of a person's behaviour in an organization, a person's level of effort, and a person's level of persistence." The direction of a person's behaviour is described as "the many possible behaviours that a person could engage in." Effort is how "hard people work." Persistence "refers to whether, when faced with roadblocks and obstacles, people keep trying or give up."

The researcher strongly believes that the theories governing motivation would support the researcher's organisation and will help to implement action plans to increase employee motivation. This may answer the one fundamental question as to what will get the sales team motivated.

Doing a project will mean either undertaking a piece of research from one's thoughts or using a live example as in the case of the author's wish to bring improvement to the reward and recognition system at Lyca Mobile.

Saunders (2007) explain the term methodology as the "theory of how research should be undertaken". By methods, (Ibid) refers to the 'techniques and procedures used to obtain and analyze data'.

4.2 Research Philosophy

Research philosophy as described by Saunders (2007) means "the development of knowledge in a particular field and the nature of that knowledge". The idea behind developing a research philosophy is to study assumptions which can be tested by using the appropriate research strategy. The researcher also has the leeway of developing a personal opinion on the subject being discussed, it is also possible to chalk out a new thought process or strategy.

There are three types of research philosophy as cited by Saunders (2007):

1. Epistemology

This philosophy discusses what acceptable knowledge is when a subject is being studied. Epistemology as quoted by Saunders (2007) explores various angles of how a study is conducted like the source of the data, how far is the data authentic and devoid of biases. Epistemology can be classified into:

i) Positivism

This epistemological sub branch has a deep rooted philosophical stance as in it calls for compulsory observation of data that is being collected. Using an existing theory that will help generate a thesis, a research strategy should be finalized wherein data can be collected. Once the thesis has been tested, the results can be accepted or declined but it does pave the scope for further research. This type of an approach has very little room for personal feelings as it is more data driven.

ii) Realism

This epistemological position states that what is perceived by the senses is the truth, this position is not driven by existing personal beliefs and impressions. The theory of realism takes a scientific approach to the knowledge growth when compared to the theory of positivism. Realism is meaningful only when data is accumulated, analyzed and interpreted.

iii) Interpretivism

Interpretivism as an epistemological position promotes the idea that the social factor is necessary to understand the differences between human beings. Every human being is a 'social actor' who interprets his/her social needs and that of others with his/her own set of meanings.

2. Ontology

Ontology paves the way, as quoted in Saunders (2007), to the adequacy of the knowledge gained from the research progression. It focuses more on the nature of reality, nature of how views are held or processes carried out.

3. Axiology

Axiology on a philosophical note, observes judgements passed on human values; values that are displayed in order to know that the research carried out is credible and devoid of prejudices. Heron (1996) as cited in Saunders (2007) points out that researchers should be able to demonstrate their axiological skills by being capable of conveying the values shown while carrying out the research.

From the research philosophies outlined above it is possible to infer that the researcher must adapt the realism epistemological position because this would call for analysis of data that is devoid of personal feelings and prejudices.

4.3 Research Approach

The researcher having decided which research philosophy should be adopted must embark on deciding what research approach would be the most appropriate. The research project does involve the use of theory and the right research approach will be able to predict the outcome of the approach. Saunders (2007) lists two major researcher approaches:

Deductive Approach

This approach calls for developing a hypothesis and then chose the appropriate research strategy to test the hypothesis. The deductive approach leans more towards the positivism and induction research philosophies.

Robson (2002) as cited in Saunders (2007) postulates that if the deductive approach is chosen then there are five stages through which the research will move:

Exploring the relationship between concepts or variables and then testing the hypothesis.

The concepts or variables will have to be measured and then articulated in operational terms.

Testing the hypothesis.

Evaluating the results.

Accept or rework the concepts.

Inductive Approach

Inductive approach is certainly more research oriented because it involves the collection of data, critical analysis of data and then developing hypothesis. This approach is more concerned with the context in which the events are taking place.

Critics of the deduction approach as cited in Saunders (2007) point out that due to the rigid methodology followed, there is no alternative explanation of what is going on.

The differences between the two approaches have been tabulated as follows:

Table 1.0 Difference Between Deductive and Inductive Approaches



Scientific Principles

Understanding the meaning humans connect to actions

Move from theory to data

Close grasp of the research background

Must describe the causal relations between variables

Compilation of qualitative information

Compilation of quantitative information

Further flexible formation to permit changes to research emphasis as the research steps forward

Applying controls to make sure the validity of data

Realising that the researcher is part of the research process

Functioning of concepts to guarantee the clarity of definition

No stress on the need to generalise

Highly structured approach

Researcher independence of what is being researched

Necessity to select samples of sufficient size in order to generalise conclusions

Source: Saunders (2007) p. 120

Having understood the differences between the two approaches, Easterby-Smith (2002) as quoted in Saunders (2007) suggests that the certain fact need to be bourne in mind while choosing a research approach:

It is possible to make an informed decision about the proposed research design, based on the data available and interpretation of data.

Data access could be limited or not available at all or the researcher may have lack of prior knowledge of the subject; this could limit the formulation of hypothesis.

Based on the proposed research objective the researcher will have to choose the deductive approach because the preliminary data does exist and it is from this data that the researcher has inferred that if reward and recognition along with monetary incentives are implemented, employees at Lyca mobile will feel motivated to put in their best. The researcher feels that if the deductive research approach is used the research can be done quicker because time must be devoted to setting up the study prior to data collection and analysis and the risk involved is fairly low.

4.4 Research Strategy

The research strategy will be chosen to match the deductive approach. As cited in Saunders et. al (2007) though there are several strategies like experiment, survey, case study, action research, grounded theory, ethnography and archival research, the researcher feels that conducting a survey by framing a questionnaire would be the most appropriate. The questionnaire will collect data from a targeted sample of current Lyca mobile employees. With the quantitative data collected it would be possible to analyze and conclude as to what factors will motivate the employees better. The researcher strongly feels that with the results, he will gain additional control on the research process. Since it is only a sample of employees the costs will be minimal rather than target all employees or track down former employees.

A pilot test will be administered to test the effectiveness of the questionnaire before it is actually administered to the targeted population. The researcher realizes that a lot of patience is required because the required data is totally dependent on the responses provided by the employees. The researcher will have to use goodwill to elicit responses. The data collected is probably not as wide ranging as other methods (Saunders et. al, 2007) but if the questions are well structured and provisions to get comments are enabled, the researcher can hope to get the right data.

4.5 Research Sample

The researcher is going to focus on a sample of employees, mainly those involved in selling the sim cards as he feels that this could save time and reduce costs as well. Sampling techniques as mentioned in Saunders (2007) are bifurcated into:

Probability or Representative Sampling; wherein the probability of each individual being selected from the complete workforce is known, it is much easier to elicit responses and this type of sampling is ideal for survey and experimental research strategies.

Non Probability or Judgmental Sampling; wherein the probability of each individual being selected from the complete workforce is unknown, this would be ideal if used in a pilot survey.

The researcher will be using probability sampling for the proposed research.

4.6 Research Ethics

Blumberg (2005) as cited in Saunders (2007) defined ethics as the "moral principles, norms or standards of behavior that guide moral choices about our behavior and our relationships with others". Ethics while carrying out research is connected to how the research topic is created and conceived, designed, how data is collected, analyzed, processed and stored all done with credibility and devoid of prejudices.

The researcher intends to follow his own code of ethics which will be a personal statement of guidelines to be adhered to. There are a number of ethical issues that could arise:

Privacy of participants

Participant's ability to withdraw partially or completely from the research

Confidential maintenance of data given to protect anonymity

Participant's should be comfortable while sharing information

The researcher should therefore get the participants consent before asking to reveal any data. A consent form can be constructed for the same.

At the end of the research the participants can be given a debriefing form thanking them for their role in the research, how the information will be used and stored and the net result of the total result.

4.7 Research Reliability and Validity

As cited in Saunders (2007), reducing the possibility of getting the answer wrong means that attention has to be paid to Reliability and Validity when the research design is being constructed.

1. Reliability

Easterby-Smith (2002) as quoted in Saunders (2007) assert that Reliability refers to the extent to which data collection techniques will generate the following results:

Will the measuring variables generate the same results when as and when required, that too, when administered by other observers?

Is it free from biases?

Robson (2002) as quoted in Saunders (2007) warns of certain threats like

Subject or participant error wherein the appropriate time should be chosen and the right individuals to be chosen for the study

Subject or participant bias wherein the respondent answers should not be influenced by higher authority, anonymity should be maintained

Observer error wherein the interview should be well organized and error free

Observer bias wherein the data collated should be interpreted correctly even if there is harsh criticism.

2. Validity

Validity is about ascertaining if the yielded results are actually true. Robson (2002) as quoted in Saunders (2007) warns of certain threats like:

History- the researcher has to exercise caution while about to administer the research. For instance if the research is administered soon after employees have either been made redundant or the attrition for that financial quarter has been high, then current employees in their anger may not give the right answers or may exaggerate the facts.

Testing- if the researcher tries to capture data on every move made, this will be perceived as 'nit picking' something which the employees will not like and then refuse to divulge details.

Mortality- there is possibility of participants not wanting to complete the questionnaire in time.

The researcher will have to focus more on the reliability of the data.


Internet Sources

Houran, James, (2007) "Money and Employee Motivation", 13th January.

Management Journals

Lindner, R James, (1998) "Understanding Employee Motivation", June 1998, Volume 36, Number 3,

(Accessed on 06/04/2010)

Martin, Samuel., (2001) "Secrets of Employee Motivation", Journal of the American Chiropractic Association, July. (Accessed on 30/03/ 2010).

Maslow, A. H. (1943). A Theory of Human Motivation. Psychological Review, July 1943. 370-396.