Understanding Intrinsic And Extrinsic Motivational Theories Commerce Essay

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Intrinsic motivation reflects a person's inner satisfaction that's called self satisfaction and he is not worried about external rewards and this self satisfaction enough for him to perform same activity in future in better way. Playing chess is a good example of intrinsic motivation because by playing this a person enjoying effortful thinking.

If a person is motivated by external rewards, praise that is called extrinsic motivation, but in extrinsic motivations it's not necessary for a person that he must enjoy it, because in extrinsic motivation some persons don't like to do something but they have to do it to get reward from management. For example a person doesn't like to job as a sales manager but he accepts the same post because of good salary and commission.

There are different theories to explain the factors which motivate the employees of any organization, all theories are different from each other following are the some famous theories of motivation that presented by different people in different times.

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Abraham Maslow

Elton Mayo

Frederick Herzberg

Frederick Winslow Taylor

We will explain only Abraham Maslow's motivational theory as follow.

Abraham Maslow's Motivational Theory: (1908-1970)

Neo-Human Relations School introduced by Maslow in 1950's. Maslow explain in his motivational theory that there are five levels of a employee's need that he want to fulfilled at job place. Following are the five level of needs explain by Abraham Maslow.

Level 5: Self Actualization

Level 4: Esteem

Level 3: Social belonging and love needs

Level 2: Safety

Level 1: Physiology

Maslow's motivational theory explain that different employees has different needs and company can fulfill by understanding these needs, If the desires of employees will fulfill properly they will motivate to produce more effective work for company . All managers should offer different incentives to different employees according to their needs in turn and progress toward all five levels mentioned above. For example if a person doesn't have anything to eat will be motivated to get a basic salary in order to buy something to eat and will not be worried about to get high salary to achieve his other achievements.

IMPORTANCE OF EMPLOYEE MOTIVATION

Employee motivation is very important factor in success of any business, that can be explained in following headings.

Loyalty with company:

If employees are high motivated they will be more loyal with the company, they will try to follow company's rules and regulation and try to follow the company's privacy policy and not to try leaking any important information of the company.

Increased performance

Motivation play an important role to increase company's performance in the market, as the employees of the company highly motivated they will produce good results to enhance the company's progress in the market that will help the company to get maximum share of the market.

High employee morale

If company keep motivating their employees on daily basis this will enhance the capacity of employees to do their work with more attention and to achieve maximum goals for organization to move it towards success. Motivation also caused to reduce absenteeism at work place.

Reduction in turnover

Motivation also important to reduce turnover of employees, if managers motivate their employees by giving them more incentives and rewards they will not go to other place and will like to spend maximum job time with the same company.

More ideas for business

As more motivation more happier staff, this will encourage staff to create more productive ideas for business by using them company can earn maximum profits share in the market.

EMPLOYEE APPRAISALS:

The method by which organization evaluate overall performance of its employees is called employee appraisals.

IMPORTANCE OF EMPLOYEE APPRAISALS:

Employee appraisals play an important role in company's progress and employee's promotion. Importance of employee appraisals can be discussed as follow.

Personal attention

During appraisal process employee and supervisor sit together and discuss the employee's strength and weaknesses. Appraisal process provides a chance to employee to discuss his personal concern with supervisor.

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In every job employees need to know that how are they doing their work, and employee appraisal is the best way to give their feedback to employees, after getting their feedback they will come to know about their strengths and weaknesses and they will work hard to overcome their weaknesses.

Career path

It is very easy for an employee to talk freely with his supervisor during employee appraisal and he can get better guidance from his supervisor and can choose better career path for himself.

Discussion about company goals

During employee appraisal employee and supervisor come face to face meeting so this is the better chance for supervisor to explain goals and targets of the company, and employee will come to know that what are the goals that he has during achieve to make his company more successful.

MOTIVATIONAL PROGRAMME FOR SMALL AND MEDIUM BUSINESS

Small and medium companies can motivate their employees as follow

Outside seminars

Company should arrange outside seminars for employees to give information to employees and let them know about company's goals. And through this employees can explain their feelings and can contribute their share in company's progress towards success.

Additionality responsibility

If supervisors give additional responsibility to their employees this will give more motivation to employees and this make them feel that supervisors are satisfied with their work and by thinking this employees can do more hard work.

Social gathering

Social gatherings are also an important factor to motivate their employees. This is the way through which employees come closer to each other and share their feelings with supervisors and colleagues.

Leadership roles

By giving them leadership roles company can show the importance of employees and this make to employees to make work hard.

On spot praise

If supervisors happy with the performance of employees they should praise them on spot, this will encourage employees to produce better piece of work.

Working environment

Company can get better results by providing a good working environment to employees, this also motivate employees to do work hard.

One to one training

If supervisors arrange one to one training for all employees this will motivate them to do their work more efficiently, and it also important to for company to get better results.

MANAGEMENT STYLES

Following are the main management styles and their affects on managing change of the company.

Bureaucratic Style

In this style of management company's management has to follow the company's rules and regulation and need to perform all their work according to this rules and regulations. If the company employees have better knowledge of company rules and regulation they can participate in company's success by applying these rules and regulations in their work. This style of management may not affect they managing changes of the company because they all have to follow the rules and regulations of the company that are already described from start of the company.

Democratic management style

In this management style employees have empowerment and they can do their decisions in their own way, but mangers give a specific time limit to complete a specific task and employees have to complete that task within time allowed by using any work method of their choice. This style of management is may lead to slow decision making because sometimes employees need to consult their ideas with someone else. Management changes may take place because of work load and to reduce this work burden management can recruit more staff.

Autocratic management style

In this type of management style all work done by mangers and there is no contribution from employees this management style may affect they employee's performance as they may think that they have no direct contribution in company's success. This style of management can save the time of management to take important decisions about company's matters as there is no need to contact all employees and get their opinion in a specific company matter, this style of management can affect the managing changes to move the company on the way to success.

Laissez Faire management style

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Laissez faire style sometimes calls permissive style of management. In his style of management company employees have complete freedom from management and they can take any decision about any matter, this empowerment make them able to produce creative ideas that can be use to make company a successful company, but sometimes this managing change can lead the company to wrong way because all decisions are taken by the employees without getting any consultation or direction from their supervisors. This style of management is the good way to motivate employees of the company.

Consultative management style

As its shown from its name in style of management supervisors get opinion and different views of different employees in any specific matter of the company , this managing change motivate the employees to create more ideas for company, Final decisions are taken by supervisors but it show the employees importance in company affairs.

Training style management

In this management style company supervisors try to train all new and existing employees and arranged different induction programs to get them latest information and training regarding company's goals. This style of management can affect the managing changes as all employees can get latest information about company's matter and they can produce better results for company by keeping this information in their mind.

Management by walking around (MBWA)

MBWA is a management style which used by good managers .By this management style managers can get real and unfiltered information about company's policies and it also make them able to know level of employee's satisfaction and morale of the organization. This management style help to build trust and loyalty within a company. Because in this management style managers and employees have direct relation so this management style helps the manager to know employees behavior in case of management changes,

(http://www.successconsciousness.com/strengthen_motivation.htm)

(http://www.psychologyandsociety.com/motivation.html)

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"http://www.google.co.uk/imgres?imgurl=http://tutor2u.net/business/gcse/people_motivation_introduction_clip_image002.jpg&imgrefurl=http://tutor2u.net/business/gcse/people_motivation_theories.htm&usg=__fndTVB458oetIqL0MJ1NwUEVuXY=&h=378&w=567&sz=19&hl=en&start=2&zoom=1&um=1&itbs=1&tbnid=Su9BKMzRWvGc5M:&tbnh=89&tbnw=134&prev=/images?q=herzberg+theory+of+motivation&um=1&hl=en&sa=N&tbm=isch&ei=OPaaTaztLsqI5Aaz86yJBw"tbnw=134HYPERLINK "http://www.google.co.uk/imgres?imgurl=http://tutor2u.net/business/gcse/people_motivation_introduction_clip_image002.jpg&imgrefurl=http://tutor2u.net/business/gcse/people_motivation_theories.htm&usg=__fndTVB458oetIqL0MJ1NwUEVuXY=&h=378&w=567&sz=19&hl=en&start=2&zoom=1&um=1&itbs=1&tbnid=Su9BKMzRWvGc5M:&tbnh=89&tbnw=134&prev=/images?q=herzberg+theory+of+motivation&um=1&hl=en&sa=N&tbm=isch&ei=OPaaTaztLsqI5Aaz86yJBw"&HYPERLINK "http://www.google.co.uk/imgres?imgurl=http://tutor2u.net/business/gcse/people_motivation_introduction_clip_image002.jpg&imgrefurl=http://tutor2u.net/business/gcse/people_motivation_theories.htm&usg=__fndTVB458oetIqL0MJ1NwUEVuXY=&h=378&w=567&sz=19&hl=en&start=2&zoom=1&um=1&itbs=1&tbnid=Su9BKMzRWvGc5M:&tbnh=89&tbnw=134&prev=/images?q=herzberg+theory+of+motivation&um=1&hl=en&sa=N&tbm=isch&ei=OPaaTaztLsqI5Aaz86yJBw"prev=/images%3Fq%3Dherzberg%2Btheory%2Bof%2Bmotivation%26um%3D1%26hl%3Den%26sa%3DN%26tbm%3DischHYPERLINK "http://www.google.co.uk/imgres?imgurl=http://tutor2u.net/business/gcse/people_motivation_introduction_clip_image002.jpg&imgrefurl=http://tutor2u.net/business/gcse/people_motivation_theories.htm&usg=__fndTVB458oetIqL0MJ1NwUEVuXY=&h=378&w=567&sz=19&hl=en&start=2&zoom=1&um=1&itbs=1&tbnid=Su9BKMzRWvGc5M:&tbnh=89&tbnw=134&prev=/images?q=herzberg+theory+of+motivation&um=1&hl=en&sa=N&tbm=isch&ei=OPaaTaztLsqI5Aaz86yJBw"&HYPERLINK "http://www.google.co.uk/imgres?imgurl=http://tutor2u.net/business/gcse/people_motivation_introduction_clip_image002.jpg&imgrefurl=http://tutor2u.net/business/gcse/people_motivation_theories.htm&usg=__fndTVB458oetIqL0MJ1NwUEVuXY=&h=378&w=567&sz=19&hl=en&start=2&zoom=1&um=1&itbs=1&tbnid=Su9BKMzRWvGc5M:&tbnh=89&tbnw=134&prev=/images?q=herzberg+theory+of+motivation&um=1&hl=en&sa=N&tbm=isch&ei=OPaaTaztLsqI5Aaz86yJBw"ei=OPaaTaztLsqI5Aaz86yJBw)

(http://careers.iloveindia.com/articles/importance-of-employee-motivation.html)

(http://www.ehow.com/facts_5007163_importance-performance-appraisals.html)

(http://www.biztrain.com/motivation/stories/20ways.htm)