Need Based Theories Of Motivation Commerce Essay


Motivation is defined as the desire and action towards goal-directed behavior. This definition applied to the field of organization psychology gives the definition of Work motivation or rather, Employee motivation which is defined as "set of energetic forces that originate both within as well as beyond an individual's being, to initiate work-related behavior and to determine its form, direction, intensity, and duration (Pinder 1998, p. 11)." There are many theories revolving this concept which can be broadly divided into the four broad categories of need-based, cognitive process, behavioral, and job-based.

Need-based theories of motivation focus on an employee's inner drive to satisfy a variety of needs through their work. According to (PAREEK, 1974)These needs range from basic physiological needs for survival to mental processes like belonging and self-actualization. Maslow's theory is a widely-known theory. Maslow used several needs which psychologists had identified to explain human behavior. He arranged the various needs in a hierarchy, and he believed that once the needs at the lower level were satisfied, they would not motivate a person. He identified five main hierarchical levels in the needs, as shown in Figure 5. Physiological needs are the lowest order needs. These would include hunger, thirst, etc. Safety needs come after the physiological needs. Love needs are the needs of affection and affiliation. Esteem needs are the needs for getting status, power, etc. The highest level is what Maslow called self-actualization. An individual is motivated by realization of his potential. Applied to work organizations, the lowest order needs would be that of salary; security needs would include the seniority and security in the job. Love needs would include the need of belonging to a friendly work group; the esteem needs would be the needs of status and promotion. The highest is the self-actualization needs which is the need for achieving according to one's self-image. Maslow's theory has made valuable contribution in drawing attention to lower order needs which may be neglected in some organizations, and in the absence of satisfaction of these needs, the higher order needs may not be operative in the organization." However, the limitation of the theory is that in no organization higher order needs await the satisfaction of lower order needs. All the needs are operative simultaneously.

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The next psychologist to contribute to need based theory is that by Herzberg. Herzberg basically used the concept of needs as defined by Maslow. He collected data about the satisfaction and dissatisfaction people had in their jobs. The examination of data led him to identify two groups of factors , one set of needs which caused dissatisfaction if they were not met, and the other set of needs which provided positive satisfaction to people. Using his health education background, Herzberg proposed a two-factor theory. He classified the various needs he found into what he called the hygiene factors (factors which may prevent dissatisfaction) and motivators (factors which may provide positive satisfaction). According to Herzberg, preventing or reducing dissatisfaction in the work situation is not the same as providing positive satisfaction. These two are qualitatively different aspects of work motivation. According to him motivation can be provided if the motivators are used in the work situation. Hygiene conditions are salary, working conditions, company policy, and supervision. Motivators are advancement, development, responsibility, and environment.

There are many other theories relevant to the topic of this dissertation such as Vroom's Expectancy Theory which attempts to explore attitudes and their relation to effective job performance. Porter and Lawler improved on the concepts of job satisfaction initially proposed by Vroom, They claim that other more important attitudes relate to differences in job performance. Evidence for this exists in research findings which do not show strong positive relationships between job satisfaction, morale and productivity. Vroom (1964)

"Variables influencing effort are value of rewards and probability that rewards depend upon effort. Porter and Lawler hypothesize that: the greater the value of a set of rewards and the higher the probability that receiving each of these rewards depends upon effort, the greater the effort that will be put forth in a given situation." (Millar, (1976))

Building on Vroom's (1964) expectancy-valence theory of motivation, Porter and Lawler (1968) proposed a model of intrinsic and extrinsic work motivation. Intrinsic motivation involves people engaging in an activity because they derive internal fulfillment from it. "Extrinsic motivation, in contrast, requires an instrumentality between the activity and some separable consequences such as tangible or verbal rewards" so contentment comes not from the activity itself but rather from the extrinsic rewards which the activity yields. Porter and Lawler (1968) suggested structuring the work environment so that effective performance would lead to both intrinsic and extrinsic rewards, which would yield job satisfaction.

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This could be done, as proposed, by enriching the job to make them more appealing and thus more intrinsically rewarding and by making rewards such as higher pay and compensations as an uncountable offshoot of performance. The assumption here was that these rewards will automatically derive from the level of performance directly.

(MARYLENE GAGNE, 2005) links Porter's and Lawler's model with the Cognitive Evaluation Theory, which suggested first that extraneous factors such as tangible rewards, deadlines (Amabile, DeJong, & Lepper, 1976), surveillance (Lepper & Greene, 1975), and evaluations (Smith, 1975) "tend to diminish feelings of autonomy, prompt a change in perceived locus of causality (PLOC) from internal to external (deCharms, 1968; Heider, 1958), and undermine intrinsic motivation". In contrast, some external factors such as giving choice about aspects of task engagement tend to enhance feelings of autonomy, prompt a shift in PLOC from external to internal, and increase intrinsic motivation (Zuckerman et al., 1978).

CET suggests that belief of proficiency and independence are imperative for intrinsic motivation. Researches provide evidence for the claim that optimally challenging job design is highly intrinsically motivating (e.g., Danner & Lonky, 1981) and that positive feedback (Deci, 1971) reaffirms that motivation by promoting a feeling of able-ness when people attribute success to their performance (Fisher, 1978; Ryan, 1982). Also negative feedback left people feeling de-motivated and destabilized the effects of extrinsic and intrinsic motivation (Deci & Ryan, 1985a)

"Underlying these CET propositions was the assumption that people need to feel autonomous and competent, so social-contextual factors that promote feelings of autonomy and competence enhance intrinsic motivation, whereas factors that diminish these feelings undermine intrinsic motivation, leaving people either controlled by contingencies or amotivated" (MARYLENE GAGNE, 2005)

(MARYLENE GAGNE, 2005) builds upon CET and proposes SDT (Self Determining Theory of Motivation). "Central to SDT is the distinction between autonomous motivation and controlled motivation" Intrinsic motivation is an example of autonomous motivation whereas activities which induce the feeling of pressure to complete a task are an example of controlled motivation. This paper examines and explores many interesting propositions, backed by researches. One of the proposition is that "Controlled motivation will yield poorer performance on heuristic tasks than autonomous motivation, but will lead to equal to or better short-term performance on algorithmic tasks"

Research in the laboratory and in educational settings has provided consistent support for this proposition. For example, (1) tangible rewards, which facilitate controlled motivation, have been found to diminish conceptual learning and effective problem solving (e.g., McGraw, 1978; McGraw & McCullers, 1979); (2) tests and grades, which represent controlling motivators, have been shown to diminish deep processing and conceptual performance, but not rote memorization (Grolnick & Ryan, 1987); and (3) competition, rewards, and evaluations, which tend to be controlling, have been found to decrease creativity (Amabile et al., 1990). In contrast, learning material in order to put it to active use (Benware & Deci, 1984), evaluate its interest value (Grolnick & Ryan, 1987), or attain intrinsic goals (Vansteenkiste et al., 2004) facilitated autonomous motivation, deep processing, and conceptual learning.

All this yields to a better understanding of what are the deeper cognitive processes which drive performance and helps to understand motivation as well. For instance, tangible rewards (a controlled motivation) such as pay rates and promotions will work better with automated tasks (such as in the manufacturing industry) and autonomous motivation (for instance job enrichment to include more intrinsically rewarding responsibilities) will have the reverse effect for automated tasks. "Research suggests that autonomous work motivation is facilitated by environments in which jobs are interesting, challenging, and allow choice and in which the work climate is autonomy supportive, as well as by employees being high on the autonomous causality orientation" (MARYLENE GAGNE, 2005)

Also, other studies such as that by Carraher et al (2006) supports that there should be an effective reward system to retain the high performers in the organization and rewards should be related to their productivity. Bishop (1987) also suggested that pay is directly related with productivity and reward system depends upon the size of an organization. Organizations in today's competitive environment want to determine the reasonable balance between employee loyalty and commitment, and performance of the organization.

Other studies have also showed that there is not only a relationship between the organizations pay structure and reward system which affects motivation and in turn productivity but also there is a relationship between the individuals himself and his or her motivation. Among many individual experiences that influence employees' innovative performance are attitudes, cognitive styles, personality and demographic characteristics such as age, education background, and prior R&D experience. In terms of organizational backgrounds, expenditure on R&D cooperation with external technology provider, leader's influence and reward system are commonly cited as factors that affect individuals' innovative performance. Efficient reward system can be a good motivator but an inefficient reward system can lead to de-motivation of the employees. Reio and Callahon (2004) conclude that both intrinsic and extrinsic rewards motivate the employee resulting. In higher productivity.

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Most of the organizations have progressed by fully submitting with their business strategy through well-balanced reward and recognition programs for employees. Deeprose (1994) claimed that the motivation of employees and their productivity could be enhanced through providing them efficient recognition, which eventually results in improved performance of the organizations. The entire success of an organization is based on how an organization keeps its employees motivated and how they evaluate the performance of employees for job compensation.

Sometimes management pays more attention to extrinsic rewards but intrinsic rewards are equally important in employee motivation. Intangible or psychological rewards like appreciation and recognition plays a vital role in motivating employee and increasing his performance. Different psychologists have different things to say about employee motivation such as Andrew (2004) who concludes that commitment of employees is based on rewards and recognition. Next is Lawler (2003) who argued that prosperity and survival of the organizations is determined through how they treat their human resource. Ajila and Abiola (2004) also say that intrinsic rewards are rewards within the job itself like satisfaction from completing a task successfully, appreciation from the boss, autonomy.

"An Empirical Study of the Motivational Factors of Employees in Nigeria" by Aworemi, Joshua Remi who is a PHD at the University of Technology at Ogbomoso, Nigeria. This research paper is based on a study on motivation that was carried out on Nigerian employees. The target population of this study included all the employees of 15 randomly selected companies from Oyo, Kwara, Osun and Ogun States of Nigeria. The sample size included 300 randomly selected employees of the target population i.e. twenty employees from each company.

It took into account different theories of motivation as well. These theories include Maslow's hierarchy of need, McClelland's needs theory, Vroom's expectancy theory and the four drive theory. This study concluded that the ranked order of the motivating factors according to the respondents of this study was;

(a) Good working conditions

(b) Interesting work

(c) Good wages

(d) Job security

(e) Promotion and growth in the organization

(f) Full appreciation of work done

(g) Personal loyalty to employees.

This study has confirmed the importance of motivational factors in getting maximum performance out of the employees. It has also revealed, through ranking, the order at which all these factors motivates the employees. It also provides useful information for the managers and employees. Knowing how to use this information in motivating employees is multifaceted. The strategy for motivating employees depends on which motivation theories are used as a reference point. If Hertzberg's theory is followed, management should begin by focusing on pay and job security (hygiene factors) before focusing on good working condition and interesting job (motivator factors). If Lawrence's four-drive theory is followed, management should begin by focusing on an area where there would be an opportunity to fulfill the drives to acquire, bond, learn, and defend. Good working condition, good pay, job security, and promotion and growth in the organization should be the starting point. If McClelland's theory is followed, management should paid attention to the needs for achievement, affiliation and power by the employees.

A widely encompassing report by (Manzoor, 2012) explores various researches on the topic. From the literature gathered for the study, the factors that enhance employee motivation are fair pay, incentives, special allowances, fringe benefits, leadership, encouragement, trust, respect, joint decision making, quality of supervision, adequate working relationships, appreciation, chances for growth, loyalty of organization, identification and fulfillment of their needs, recognition, empowerment, inspiration, importance attached to their job, safe working conditions, training and information availability and communication to perform actions

Another cross-referenced report by (Devadass, 2011) states that "Themes in this literature align within the following four areas:

motivation and the nature of job

motivation and nature of employee

motivation and management practices

Motivation and broader environmental factors.

Employee and nature of the job

According to (Devadass, 2011) there are certain identifiable characteristics which make up the relationship between employee and nature of the job with direct reference to employee motivation. These include the nature of task/ task design(providing a motivating work environment, providing a challenging and interesting nature of work, providing a formal and informal communication, providing autonomy, job security, high-impact tasks, worker involvement, providing training),Task significance(The impact employees are having on the lives of other people, client or customer, High degree of control employees have over day-today decisions), Performance indicators(the careful selection of appropriate performance indicators that can capture and reflect the employee's effort and performance ),Career path(opportunity for advancement, promotion prospect, career planning, work/life balance: Flexibility in work times, work location )Extrinsic/ Security Motivators(material reward, progression, status, security) Intrinsic/ Contact Motivators(interest, affiliation' refers to the motivation to enjoy contact with people, autonomy) Values/ Growth motivators(personal principals, achievement, personal growth )Employee development(enriching job design, participative decision making, empowering nature of work, job Advancement, variety of Knowledge, participative decision making, high level of knowledge, develop competencies, sense of Achievement), Positive work climate(employees have a common objective to attain, employees have sufficient task interdependence, employees are constantly interacting with each other to successfully execute these tasks) ,Perceived equity(performance is linked to rewards, Fairness in the financial and non-financial rewards, adequate pay, adequate recognition, freedom at work, feedback from colleagues)

One of the factors in employee development is the 'empowering nature of work'. According to (Manzoor, 2012) "Empowerment provides benefits to organizations and makes sense of belonging and pride in the workforce. In fact, it builds a Win - Win connection among organizations and employees; which is considered an ideal environment in numerous organizations and their employees. Empowering can flourish virtual human capacities. Empowered employees focus their job and work-life with additional importance and this leads to constant progress in coordination and work procedures. Employees execute their finest novelties and thoughts with the sense of belonging, enthusiasm, and delight, in empowered organizations. Adding up, they work with a sense of responsibility and prefer benefits of the organization to theirs"

In order for the employee to be motivated, he/she must be satisfied with the job which is only possible when the employee is motivated to work. Cause and effect are hard to determine. In order to study motivation, the reverse can also be highlighted. Causes for de-motivation can be looked at so they can be discouraged, hence promoting employee motivation. (Saks, Feb 2011) examined the impact of stressful job demands on employee attitudes and attendance. Survey data from 90 male manufacturing employees regarding their control beliefs were combined with objective job analysis data concerning mental demands and one year's worth of archival data regarding unexcused absences, sick days, and days tardy. There were significant interactions between control and objective psychological demands that indicated that these demands were associated with higher levels of tardiness and sick days only under conditions of low perceived control.

Given the nature of the job, three variables were taken into study which were job demand, control and satisfaction. Job demands were psychological; a 'high' rating was given for those jobs involving a great amount of vigilance, close tolerances for machined parts, or a great cost of errors and defect rates in machined materials and material handling. Control refers to "of how much control the worker experienced over the work environment" and this covered a "variety of work domains including control over the variety of tasks performed, the order of task performance, pacing, scheduling of rest breaks, procedures and policies in the workplace, and arrangement of the physical environment" Satisfaction was the third variable. Both overall job satisfaction and satisfaction with aspects of the work itself were measured using a sexless version of Kunin's (1955) Faces scale. The fourth was employee withdrawal.

The research proves that when the work in amplified for an employee who has a high level of control on his workplace, his/her absenteeism is significantly diminished. Although when employees think they have a small measure of control on their job description and workplace, high psychological demands yield increased absenteeism. Also to reaffirm, positive correlation of the independent variable (the varying workload) with task satisfaction and its negative correlation with voluntary absenteeism proves that workers work better when they feel empowered. In the present industrial context, at least, workers actually seem to prefer greater workload when it is accompanied by high levels of perceived control. This condition of high quantitative work-load and high control describes what Karasek (1979) defined as an 'active job.' He proposed that these active jobs are actually regenerative of workers' well-being, in that they provide for challenge and an opportunity for growth. Hence findings show that a very severe de-motivator is having low empowerment and low control.

Another research article which highlights the relationship between extrinsic motivators and job satisfaction and performance is by (Igalens & Roussel, Dec., 1999) This research is aimed for understand French worker reactions to French pay systems, to see whether one or more elements of total compensation has an impact on job satisfaction. Similarly this article tests whether compensation has a direct correlation with worker motivation. "We suppose that the compensation policy of an organization is efficient if satisfaction with regard to any of the compensation components increases job satisfaction, and if motivation incited by any of the compensation components actually results in higher work motivation"

This empirical study employed data from 269 exempt employees and 297 nonexempt employees. Exempt employees are those which his is an employee who is defined by the Federal Labor Standards Act (FLSA) as being exempt from the country's labor law's minimum wage and overtime requirements. Non-Exempt are those on whom minimum wage conditions apply. Three elements need to be defined. Firstly, total compensation. In this classification, fixed pay is compensation where the amount and payment are guaranteed (base pay, seniority bonuses, 13th month, etc.). The second component is flexible pay, which includes variable pay and deferred income. Variable pay is compensation in which the amount is variable and/or its distribution is uncertain (gain-sharing, bonuses, incentives, goal-based pay, overtime, etc.). Deferred income are sums that are blocked for a given period of years before becoming available (French profit-sharing, company savings plans, employee stock ownership plans, etc.). The concept of flexible pay also encompasses the idea of forms of payment which aim to decrease the fixed costs/variable costs ratio in labor charges (Sire and David, 1993). The third component of total compensation regroups all the different kinds of benefits (for instance allowances for miscellaneous expenses)

The second component is worker motivation and the authors favor the model developed by Porter and Lawler (1968), as improved on the expectancy theory (Vroom). The process of motivation in relation to compensation can be described by three independent variables: effort-performance expectancy, performance-outcome expectancy, and valence. Outcome and valence relate to the different categories of total compensation previously mentioned. However, the first empirical studies in France based on this theoretical model show that the motivational process of employees distinguishes only three independent aspects of compensation: fixed pay, flexible pay, and benefits (Roussel, 1996). (Igalens & Roussel, Dec., 1999) thus put forward the following three hypotheses:

The third element of the study is 'Pay Satisfaction'. The aim is to measure the relationship between the feelings of satisfaction aroused by the different forms of compensation and the dependent variable 'job satisfaction'. Job satisfaction as directly related to compensation is multifaceted. It does not only depend on the amount of salary but also on three other factors. The second being the structure and administration of direct compensation, the third being the level of increases in pay and the fourth being the degree and administration of benefits. (Igalens & Roussel, Dec., 1999)

One of the problems usually faced when dealing with such closely related factors is that it is hard to determine what causes what i.e the causal relationship. Especially between three variables, it becomes hard to do. For instance, one of the solutions is to make fixed pay more satisfying. This may have a positive effect on job satisfaction without having any influence on work motivation. Similarly, initiating a more motivating administration of flexible compensation may have a positive impact on work motivation, but not necessarily on job satisfaction. (Igalens & Roussel, Dec., 1999)

Data collected was analyzed by a structural equations model with LISREL VII. Two groups were separately examined, the non-exempt employees and the exempt employees. Exempt employees i.e. Professionals, administrators, engineers and executives were among the most satisfied and motivated in their jobs, as well as having the highest level of pay satisfaction. Non-exempt employees (i.e. supervisors/foremen, technicians, employees and industrial workers), exhibited more discontent and de-motivation with regard to their job and compensation.

Two samples of employees, 269 exempt employees and 297 nonexempt employees were studied. A questionnaire was distributed through mail. The findings of the study were intricate and detailed but there were three main conclusions drawn. " (1) under certain conditions, individualized compensation of exempt employees can be a factor of work motivation; (2) flexible pay of nonexempt employees neither motivates nor increases job satisfaction; (3) benefits of exempt and nonexempt employees neither motivate nor increase job satisfaction." (Igalens & Roussel, Dec., 1999).

Hypothesis 1 was: 'The expectancy that effort leads to performance achievement positively influences work motivation'. It was supported since effort- performance expectancy was positively and significantly (t > 2) related to work motivation. Performance is dependent on worker motivation which is expected to lead to performance. This expectancy is an important indicator of work motivation for both the exempt and nonexempt employees. (Igalens & Roussel, Dec., 1999)

Another very interesting hypothesis that was proven wrong or rather did not have a high enough correlation coefficient was that the expectancy of rewards in the form of benefits or flexible pay directly impacts work motivation. This was proven to be wrong, however the exempt group showed more support rather than the non exempt group.

These findings shed light on a very integral aspect of our topic. Controlled motivators have a varying result when applied to jobs of varying nature.

Another very interesting article analyzes various motivational devices. " Since knowledge generation and transfer are essential for a firm's sustainable competitive advantage, we ask specifically what kinds of motivation are needed to generate and transfer tacit knowledge, as opposed to explicit knowledge" (Osterloh & Freynd, (Sep. - Oct., 2000)) This article explores the importance of tacit knowledge and the consequences it has on a firm's decision about extrinsic motivators. "A further important distinction has been drawn between tacit and explicit knowledge (Polanyi 1966). Explicit knowledge can be coded in writing or symbols.But only a small part of our knowledge is explicit; "we can know more than we can tell" (Polanyi 1966, p. 4). This distinction between the two types of knowledge is important because of the transferability and appropriability of explicit knowledge, as opposed to tacit knowledge (Grant 1996a, b).Tacit knowledge is acquired by and stored within individuals and cannot be transferred or traded as a separate entity. Explicit knowledge has the character of a public good (with the exception of patents or copyrights). Two important consequences follow. First, tacit knowledge is a crucial source of sustainable competitive advantage because it is difficult for competitors to imitate it (e.g.,Teece 1998). Second, the contribution of a particular employee's tacit knowledge to a team output cannot be measured and paid accordingly. This has important motivational ramifications" (Osterloh & Freynd, (Sep. - Oct., 2000))

This article then further goes on to provide theoretical framework for the claim that extrinsic motivators, when added to activities which already provide intrinisic motivation, significantly reduce work performance in the long run. Deci, Koestner, and Ryan (1999a) conducted an extensive meta-analysis including all the studies considered by Cameron, Pierce, and Eisenberger, as well as several studies that came later. 68 experiments were analyzed, and the result came out to be that explicit rewards undercut intrinsic motivation for challenging tasks(for which the employee's intrinsic interest is higher)"in a highly significant and very reliable way and that the effect is moderately large. This undermining is particularly true for monetary compensations that were perceived by the experimental subjects to be controlling and therefore tended to crowd out intrinsic motivation" The crowding-out effect was stronger with monetary than with symbolic rewards. The crowding-out effect was also larger with expected than with unexpected rewards. When the problems at issue were complicated, the negative relationship between reward and performance was stronger than when the problems were simple (Deci and Ryan 1985; Heckhausen 1991, Ch. 15)" In every experiment, In all cases, the performance was originally thought to be appealing and therefore intrinsically rewarding (Calder and Staw 1975).

The main matter of this article is the "Organizational Consequences of Motivation Crowding Effects"It focuses on three major components of the crowding out effect, which need to be considered by the firm when deciding their motivational strategy and profit strategy, since the two are linked.

Participation is an alternative to markets as a coordination mechanism. It Participation refers to signifies an concurrence on shared targets. It increases the apparent self determination of the employees which leads to higher satisfaction being yielded from the task at hand. "As experiments show, the strengthening of self-determination and intrinsic motivation takes place only when agreements about the goals serve primarily as self-control and self-obligation. In contrast, perceived external control inhibits creativity in the pursuit of goals (see Schwartz 1990)". These evidences prove the theory of management by objectives as a method dual goal setting between a primary person and mediator. The concept of "Employee Empowerment" also has its roots in this relationship. The second one is "Personal relationship" is a precondition for establishing psychological contracts based on emotional loyalties, often called team spirit. Teams and other such groups encourage interpersonal relationships. The development of said relationships increases intrinsic motivation to collaborate(e.g. Dawes et al. 1988, Frey and Bohnet 1995).

The third is" Cotingency of reward on performance" which can crowd out intrinsic motivation. The crowding-out effect provides an answer for the empirical evidence which suggests that there is no correlation between pay and performance. Instead, the "literature on incentive plans is full of vivid descriptions of the counterproductive behaviors that piece-rate incentive plans produce" (Lawler III 1990, p. 58). The same is for managerial level,( Barkema and Gomez-Mejia 1998, Prendergast 1999), a statement agreed on by the proponents of principal agent theory (e.g. Giith 1995, Jensen and Murphy 1990), who encourage compensation which is time based, as compared to variable compensation for tasks which require higher intrinsic motivation. (Osterloh & Freynd, (Sep. - Oct., 2000))

"Our analysis allows us to draw four conclusions. First, intrinsic motivation is important for firms". Its has wide returns in situations where prices and markets are not major components. The decision for firms to enhance intrinsic motivation is directly influenced by the need to convey tacit knowledge. This is imperative for supporting long term competitive advantage, for which evidence has been provided by the resource-based view of the firm. The transmittance of tacit knowledge between employees is not discernible, neither between groups, hence increase in output cannot be credited to a certain employee . Only the result of knowledge generation and transfer can be measured in terms of output. "Explicit knowledge, on the other hand, is tradable" (Osterloh & Freynd, (Sep. - Oct., 2000)).Managers have the ability of noticing how well workers with individual knowledge have performed and then can compensate them accordingly.

Secondly, the crowding effects make both automated and controlling motivation exogenous variables. "Crowding effects thus restrict the applicability of standard transactions cost and agency theory for organization design. The assumption of opportunism promotes the worst-case conditions against which these theories claim to protect" (Osterloh & Freynd, (Sep. - Oct., 2000))

Third, if tacit knowledge of several team members is imperative for a combined output (in the form of a product)," the use of market elements may lead to withholding knowledge that is needed to establish and preserve the competitive advantage of a firm". When the transfer of tacit knowledge is required, motivators like price and commands are ineffective. Instead organizational strategies which encourage participation and personal relationships, for instance having cross-teams( many teams which have overlapping goals) are required.

Fourth, firms may be interpreted in a new light. "Firms are able to manage motivation better than the market. According to the relative advantages and disadvantages of intrinsic motivation, firm managers can choose an optimal combination and can obtain it by taking motivational crowding effects into account" (Osterloh & Freynd, (Sep. - Oct., 2000))

This article tell us about the crowding out effect which states that extrinsic motivation applied as an additive to intrinsic motivation for challenging and interesting tasks reduces performance, which has economic implications. Also it outlines the functions of participation, personal relationships and contingency of reward on performance as organizational forms which, when applied to extrinsic and intrinsic motivation separately, yield a combination of results on performance.

Following from the intrinsic and extrinsic motivational aspects of a job, we consider job enrichment, as one of the factors highlighted by (Devadass, Employees Motivation in Organizations, 2011). Career development is a form of job enrichment wich can be carried out by msnsgers in order to ensure that intrinsic motivation always stays high.

Career development is a dual process including personal ambitions of an employee and the organizational support he can be provided. In this study (Raymon A.Noe) employees furnished their personal ambitions and traits while organizations provided ratings of different parameters including inclination of employees in participative management and willingness. Career management is also career development and employee motivation. In this, personal qualities like desires, strengths, weaknesses and career goals are identified and are examined whether they are achievable. (Hall & Associates1986, Leibowitz and Schlosberg 1981, London & Move 1987) are of the view that career management and development system should be used to improve career motivation of an employee because relations exists between career management, performance, development behavior and participation in development activities (stumpf, colarelli and Hartman 1983, Sugalski and Greehaus 1986) studied influence of various aspects of career development at the same time e.g career management behavior of managerial , technical and clerical employees.

Career management process is a multifaceted process which include career exploration, mental or physical activities which identifies information about an individual or environment (Jordaan 1963) Exploration is a process for motivated employees who wish to engage in successful l progress in his career. (Phillip 1982) Self motivated persons may engage in systematic or random activities in order to cultivate better awareness and understanding of developmental needs. (Cleveland and Stove 1992) are of the view that employee participation in career related activities such as job training and career advancement is age dependant.

(Loeke and Latham 1990) suggest in goal setting theory that goals bear considerable influence on behavior and efforts of employee. The employees who have high ambitions have superior performance than those who have no or unspecified goals. Goals focus can be defined as how sure the person is about career goals or specific job and/or organization. Goals focus bear direct influence on developmental behavior and willingness to participate developmental activities.

(Management Practices as Leaverages of Employee Performance - Tilaye Kassahun) This study has come up with very useful findings that facilitates the development of a theory which explains the relationships between management practices and employee performance which may ultimately have significant impact on overall organizational performance. Main objective of this study was to investigate which selected management practices could enhance employee performance. When one thinks of improving organizational performance, focus needs to be made on optimizing individual performance because individual employees serve as cornerstone of increased organizational performance. (Lawler 1994, Merchant 1999). Organizations have been in a state of constant search for leverages of employee performance which in fact are factors that promote or enhance level of employee efforts and activities. Leverages can influence employee performance through increasing knowledge and skills, provide access to important resources. Empowering employees change employee perception and attitude and boost employee morale or motivation. If maximum pressure or control is exercised on employees, it results in negative feelings and de motivates employees. During the past two decades many scholars have suggested different types of management practices that are deemed to increase knowledge and skill base of employees and boost their motivation as well as performance, some of them include high involvement management (Lavler 1986 high performance work practices ((Lowe et al 1996) and human enhancing practices (Youndt et al 1996. Apparently there are variations in the claim and use of each of these terms. The main assumption is that employees performance can be improved through adoption of a cluster of management practices in organization. Researchers have been in constant search for factors that affect employee performance. (Taylor 1911) suggested reward package which enabled employees to maximize income as return for his outstanding work. This was employee motivation related to output and productivity. Taylor and others have propounded various management processes which can boost employee performance (Huselid 1995, Feffer 1994 & Arthur 1994) This study has identified five major practices to examine the impact on employee performance. They are job autonomy, organizational support, training, distribution justice and procedural justice.

Job autonomy and performance :- Job autonomy is considered as one of the most important factor in enhancing performance. (Colarell, Dean and Konstans 1987) defined autonomy as an element that permits employees to use fully their talents and ingenuity and as a construct that causes employees to assume personal responsibility for work. Direct relationship seem to exist between autonomy & performance. Lack of autonomy and close vouching and monitoring results in diminishing performance. In the absence of employee commitment and engagement an organization is unlikely to perform well. (Meyer & Allen 1997) In a study Agarwal and Ferrat (1999) suggest that organizations can promote motivation, commitment and performance among their employees if they are able to create conditions that empower employees to take increased responsibility for their work and for decision making process.

Organization Support and performance :- is defined as " the extent to which employees perceived that the organization valued their contribution and cared about their well being. (Eisenberger, Fasolo and Divis La Mastro 1990:52) Employees exchange their genuine efforts to greater care and support they receive from their organization. They exhibit greater commitment.

Training and Performance :- Training can influence performance by improving skills and abilities relevant to employees tasks and development (Hareland Tzafrir 1999) Training influences organization based self esteem (McEvoy 1997)

Organization Justice and performance :- It has a critical role in development and performance. It develops a sense of justice. An employee can improve and increase satisfaction, commitment, efforts and performance (Folger & Cropanzano 1998) There are two types of justices :-

(a) Distributive justice which means that their should be fair play in increments, promotions, rewards etc. Inequity will bring down employee motivation. (b) procedural justice which relates to allocation of job , taking care in downsizing etc. It is generally believed that employee feels motivated when they have been given a voice and they can speak their heart and minds rather than they are snubbed and remain compulsorily silent rather than voluntarily.

(Kassahun, Jan., 2007)