Mc Gregors theory X and theory Y:

Douglas McGregor introduced Theory X and Theory Y are the two aspects of human
behaviour at work, or in other words, two different views of individuals one of which is
negative, called as Theory X and the other is positive, so called as Theory Y. According to
McGregor the perception of managers on the nature of individuals is based on various
assumptions.

Theory X:

 An average employee does not like work and tries to escape it whenever possible.
 Since the employee does not want to work, he must be forced, compelled, or warned
with punishment to achieve organizational goals. A close supervision is required.
 Many employees rank job security on top, and they have little or no ambition.
 Employees generally dislike responsibilities.
 Employees resist change.
 An average employee needs formal direction.

Theory Y:

 Employees should realise their job is relaxing and normal. They exercise their
physical and mental efforts in their jobs.
 Employees may not require only threat, external control to work, but they can use
self-direction and self-control to achieve the organizational objectives.
 If the job is rewarding and satisfying, then it will result in employees commitment to
organization.
 An employee can learn to recognize and take the responsibilities.
 The employees have skills and capabilities that can be used for solving organisational
problems.

Theory X presents a pessimistic view of employees’ nature and behaviour at work, while
Theory Y presents an optimistic view of the employees’ nature and behaviour at work. Many
organizations are using Theory Y techniques. Employees should be given opportunities to
contribute to organizational well-being. Theory Y encourages decentralization of authority,
teamwork, performance appraisal and participative decision making in an organization.

Expectancy theory of motivation:

Victor vroom proposed expectancy theory of motivation. He stresses and focuses on
outcomes, and not on needs. Theory separates effort, performance and outcomes. Vroom's
expectancy theory assumes that behaviour results from conscious choices among alternatives
whose purpose it is to maximize pleasure and to minimize pain. Vroom realized that an
employee's performance is based on individual factors such as personality, skills, knowledge,
experience and abilities. He uses the variables Expectancy , Instrumentality and Valence.
Expectancy: it is the faith that better efforts will result in better performance. Expectancy is
influenced by factors such as appropriate skills for performing the job, availability of right
resources, availability of information and getting the required support. Expectancy is the idea
that increasing the amount of effort will increase performance.

Instrumentality: It is the faith that if you perform well, then the outcome will be achieved.
Instrumentality is affected by factors such as believe in the people who decide who gets what
outcome, the simplicity of the process deciding who gets what outcome, and clarity of
relationship between performance and outcomes.

Valence: It is refers to the level of satisfaction people expect to get from the outcome and not
the actual satisfaction that an employee expects to receive after achieving the goals.

Vroom's expectancy theory of motivation is not about self-interest in rewards but about the
efforts people take towards expected outcomes and the contribution they feel they can make
towards those outcomes.

Porter lawler model:

The Porter and Lawler theory of motivation is based on the assumption that rewards cause
satisfaction and that sometimes performance produces reward. Good performance leading to
reward which lead to satisfaction. It is a multi-variable model and explains the relationship
among motivation, performance and satisfaction.

They argue that satisfaction does not always lead to performance. On the other hand,
performance can lead to satisfaction if the reward systems are effective. The theory has two
types of rewards, intrinsic and extrinsic reward.

Intrinsic reward

Performance Satisfaction

Extrinsic reward

Perceived equitable rewards

Intrinsic Rewards: It given to an individual by himself for good performance. They include
feelings of accomplishment and satisfaction of higher-level needs. Intrinsic reward are
directly related to good performance only if the job structure is challenging so an individual
can reward himself if he feels he has performed well.

Extrinsic Rewards: It given by the organization and satisfy mainly lower-level needs. They
include such things as pay, promotion, status, and job security. Extrinsic rewards are weekly
connection to performance.

In the model, rewards are linked indirectly to satisfaction through perceived equitable
rewards. This variable refers to the amount of rewards an individual feels he should receive
as a result of his performance.
Satisfaction is the difference between actual rewards and perceived equitable rewards. If
actual reward exceeds perceived rewards, then it results in satisfaction or it results in
dissatisfaction. To determine a person is either satisfied or dissatisfied depends on the size of
the difference between the actual and perceived equitable rewards.

Adam’s equity theory of work motivation:

The importance of the equity theory is the principle of balance or equity. In this theory an
individual’s motivation level is correlated to his perception of equity, fairness and justice
practiced by the management. When people feel fairly treated they are more likely to be
motivated; when they feel unfairly treated they are highly prone to feelings of demotivation.

This theory helps explaining why pay and conditions alone do not determine motivation. It
also explains why giving one person a promotion or pay-rise can have a demotivating effect
on others.

Employees seek to maintain equity between the inputs that they bring to a job and the
outcomes that they receive from it against the perceived inputs and outcomes of others. The
belief in equity theory is that people value fair treatment which causes them to be motivated
and within the relationships of their co-workers and the organization.

Input: This equity theory term includes the quality and quantity of the employees
contributions to their work. Typical inputs include time, effort, loyalty, hard work,
commitment, ability, adaptability, flexibility, tolerance, determination, enthusiasm, personal
sacrifice, trust in superiors, support from co-workers and colleagues, skill, etc.

Output:

It defined as the positive and negative consequences that an individual perceives from an
incident of their relationship with another. Outputs can be both tangible and intangible.
Typical outcomes are job security, esteem, salary, employee benefits, expenses, recognition,
reputation, responsibility, sense of achievement, praise, etc.