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The Classical theory & organization

According to the Classical theory, an individual will choose an action that is economical and profitable for him or her. Humans are motivated by financial gains. This theory only considers monetary means of increasing or improving productivity. According to Frederick Taylor, man can be motivated efficiently through financial incentives. If the financial gain is higher, the output of the staff member would also increase. However, a major limitation of this theory is that it can be applied only to the lower staff members and not those who have achieved their basic needs (Putti, 1987).

According to Maslow’s Hierarchy theory, an individual’s needs may have five level of needs namely, ‘basic or physiological needs’ (such as food, water, etc), ‘safety and security needs’ (such as protection, insurance, etc), ‘belongingness and security needs’ (such as friends, socialization, family, social relationships, marriage, etc), ‘esteem and status needs’ (such as status, fame, luxuries, self-respect, etc), and ‘actualization growth needs’ (motivation for growth and expansion) (Boeree, G. C. , 1998).

Once the needs at the lower level are fulfilled, the individual would go on in aiming at the next level of needs. The needs at the lower level usually overpower the needs at the next level. Maslow

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considered this as the basic manner in which the employees could be motivated. Along with the organizational growth, the employees should also be able to grow through continuous motivation. If a staff member is not upgraded or allowed to move up the ladder, de-motivation would set in, resulting in reduced efficiently and effectiveness at performing the work.

Achievement was the most vital factor that leads to development and motivation of the staff members. The Vroom’s Preference-Expectancy theory was put forth by Victor Vroom and studies motivation based on the reason for which the individual opts for a certain course of action. An individual obtains certain values from the results of alternative courses of action. Once values are assumed, the individual would prefer to perform the action (based on its values). However, the expected outcome may not be the same in each and every case.

If the individual is successful, he/she is usually satisfied with the outcome. The individual may be sad if he/she fails. The actual or perceive rewards available to perform towards achieving a certain objective is known as ‘motivation’. It is directional proportional to the product of expectancy and valence. Valence is the importance or strength the individual attaches with the expected outcome. Again, the strength of each outcome depends on the relationship and strength of other outcomes.

Expectancy is the chances that a particular action would be repeated after a specified first level outcome (especially linking the outcome to success). Motivation is the product of valence and expectancy (Putti, 1987). On the other hand, instrumentality is the belief that success in a particular circumstance would be attached to the expected outcome. The Vroom theory gives a lot of importance to belief playing a role in developing motivation (Droar, 2003). The consequences of de-motivation can be very severe on the employee, teams and the organization

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