Theories On Entrepreneurial Motivation

MOTIVATION
INTRODUCTION
 We should know what inspires entrepreneurs & their
employees to give their best to the organization.
 Motivation theories attempt to explain what energizes everyone

to accomplish organizational goals.
 Question: To what extent are these theories promote

entrepreneurship?
THE NATURE OF MOTIVATION
 Motivation is a psychological process through which
unsatisfied wants or needs lead to drives that are aimed
at goals or incentives.
The Basic Motivation Process

THEORY X AND THEORY Y
 Theory X
 The assumption that people dislike work, will attempt
to avoid it, and must be coerced, controlled, or
threatened with punishment if they are to perform.
 Theory Y
 The assumption that people like work, are creative,
seek responsibility, and can exercise self-direction
and self-control.
MOTIVATORS
 Intrinsic
 A person’s internal desire to do something, due to such things
as interest, challenge, and personal satisfaction.
 Extrinsic
 Motivation that comes from outside the person, such as pay,
bonuses, and other tangible rewards.
THE NATURE OF MOTIVATION
Content and Process Theories
 Content Theories of Motivation

Theories that explain work motivation in terms of what
arouses, energizes, or initiates employee behavior.
 Process Theories of Motivation

Theories that explain work motivation by how employee
behavior is initiated, redirected, and halted.
SELECT THEORIES OF MOTIVATION
 Content Theories
 Maslow’s Hierarchy of Needs
 Hertzberg’s Two-Factor Theory
 Achievement theory
 Process Theories
 Goal Setting Theory
 Expectancy Theory
 Equity Theory
MASLOW’S HIERARCHY OF NEEDS
Self-
actualization
Esteem
Social
Safety
Physiological
CONTENT THEORIES
Maslow’s Hierarchy of Needs
 Maslow’stheory rests on a number of basic

assumptions:
 Lower-levelneeds must be satisfied before higher-level needs
become motivators
 A need that is satisfied no longer serves as a motivator
 There are more ways to satisfy higher-level than there are ways to
satisfy lower-level needs
CONTENT THEORIES
Herzberg’s Two-Factor Theory of Motivation
A theory that identifies two sets of factors that influence job

satisfaction:
 Motivators
Job-content factors such as achievement, recognition,
responsibility, advancement, and the work itself
 Hygiene Factors
Job-context variables such as salary, interpersonal relations,
technical supervision, working conditions, and company
policies and administration
CONTENT THEORIES
Achievement Theory of Motivation
 Adherents to achievement motivation theory believe people have an

innate need to succeed or to reach a high level of attainment.
 Under the theory, achievement motivation tends to feed on itself.

That is, people who experience great levels of success are motivated
to strive for more success.
 This postulates that people who achieve high levels of excellence

tend to regard those who do not as not having tried hard enough,
while those who are not high achievers tend to see those who are as
being lucky.
PROCESS THEORIES
Goal-Setting Theory
 A process theory that focuses on how individuals go
about setting goals and responding to them and the
overall impact of this process on motivation
 Specific areas that are given attention in goal-setting
theory include:
 The level of participation in setting goals
 Goal difficulty
 Goal specificity
 The importance of objective
 Timely feedback to progress toward goals
PROCESS THEORIES
Expectancy Theory
 A process theory that postulates that motivation is influenced
by a person’s belief that
 Effort will lead to performance
 Performance will lead to specific outcomes, and
 The outcomes will be of value to the individual.
 Expectancy theory predicts that high performance followed by

high rewards will lead to high satisfaction
PROCESS THEORIES
Equity Theory
• When people perceive they are being treated equitably, it

will have a positive effect on their job performance and
satisfaction
• If they believe they are not being treated fairly (especially
in relation to relevant others), they will be dissatisfied.
This will have a negative effect on their job performance
and they will strive to restore equity.
THE DRIVING FORCE: WHAT MOTIVATES
INDIAN ENTREPRENEURS?
Motivator % mentioning
(On the basis of Rewards of entrepreneurship )
Autonomy 57
Making money/financial independence 43
Saw business opportunity/impact on industry 27
Recognition of self and/or organization 23
Desire to create something new/innovate 20
Build something important/make a difference 17
Grow a business from scratch 17
Desire to be entrepreneur/excitement of entrepreneurship 03
THE DRIVING FORCE: WHAT MOTIVATES
INDIAN ENTREPRENEURS?
Motivator % mentioning
(Personal Qualities)
Intellectual challenge/achieve potential 27
Instinct 10
Others 10
(Career)
Career growth/diversification/satisfaction 13
Others 03
(Experience)
Utilize previous experience 06
Had technology/industry vision 03
(Non-monetary Factors)
Help India in various ways 23
Non-monetary success/personal satisfaction 07
Create value/jobs/wealth in society 03
3-CIRCLES-HEDGEHOG-CONCEPT
ANOTHER VIEWPOINT
NEXT TOPIC - GOVT. SCHEMES

Theories On Entrepreneurial Motivation

Uploaded by

Copyright:

Available Formats

Theories On Entrepreneurial Motivation

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Theories On Entrepreneurial Motivation

Uploaded by

Copyright:

Available Formats

MOTIVATION

 Motivation theories attempt to explain what energizes everyone

 Question: To what extent are these theories promote

The Basic Motivation Process

Content and Process Theories

 Content Theories of Motivation

 Process Theories of Motivation

Maslow’s Hierarchy of Needs

 Maslow’stheory rests on a number of basic

A theory that identifies two sets of factors that influence job

Achievement Theory of Motivation

 Adherents to achievement motivation theory believe people have an

 Under the theory, achievement motivation tends to feed on itself.

 This postulates that people who achieve high levels of excellence

 Expectancy theory predicts that high performance followed by

• When people perceive they are being treated equitably, it

You might also like