THEORIES OF EHBJNTREPRENEURSHIP (2).pptx

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1. THEORIES OF ENTREPRENEURSHIP .

2. 1. Maslow’s Theory of Hierarchical Needs A braham Maslow postulated that a person will be motivated when all his needs are fulfilled. people do not work for security or money, but they work to contribute and to use their skills. he demonstrated this by creating a pyramid to show how people are motivated and mentioned that one cannot ascend to the next level unless lower-level needs are fulfilled. the lowest level needs in the pyramid are basic needs and unless these lower-level needs are satisfied people do not look at working toward satisfying the upper-level needs .  

3. Below is the hierarchy of needs:  Physiological needs:  are basic needs for survival such as air, sleep, food, water, clothing, and shelter.  Safety needs:  Protection from threats, deprivation, and other dangers (e.g., health, secure employment, and property)  Social (belongingness and love) needs:  The need for association, affiliation, friendship, and so on.  Self-esteem needs:   The need for respect and recognition.  Self-actualization needs:   The opportunity for personal development, learning, and fun/creative/challenging work.  Self-actualization is the highest-level need to which a human being can aspire. 

4. The leader will have to understand at what level the team members are currently, and seek out to help them to satisfy those specific needs and accordingly work to help fulfill those needs. This will help the team members perform better and move ahead with the project. A  PMP certification  will help you better understand this concept. Also, as their needs get fulfilled, the team members will start performing, till the time they start thinking of fulfilling the next upper level of need as mentioned in the pyramid. 

5. McClelland’s Needs Theory McClelland’s Needs Theory was proposed by a psychologist David McClelland, who believed that the specific needs of the individual are acquired over a period of time and gets molded with one’s experience of the life. McClelland’s Needs Theory is sometimes referred to as Three Need theory or Learned Needs Theory. McClelland has identified three basic motivating needs, Viz. Need for Power, Need for Affiliation and Need for Achievement and, along with his associates performed a considerable research work on these basic needs.

6. Need for Power (n-pow):  What is Power? Power is the ability to induce or influence the behavior of others. The people with high power needs seek high-level positions in the organization, so as to exercise influence and control over others. Generally, they are outspoken, forceful, demanding, practical/realistic-not sentimental, and like to get involved in the conversations. Need for Affiliation (n- affil ):  People with high need for affiliation derives pleasure from being loved by all and tend to avoid the pain of being rejected. Since, the human beings are social animals, they like to interact and be with others where they feel, people accept them. Thus, people with these needs like to maintain the pleasant social relationships, enjoy the sense of intimacy and like to help and console others at the time of trouble .

7. Need for Achievement (n-ach):  McClelland found that some people have an intense desire to achieve. He has identified the following characteristics of high achievers: High achievers take the moderate risks, i.e. a calculated risk while performing the activities in the management context. This is opposite to the belief that high achievers take high risk. High achievers seek to obtain the immediate feedback for the work done by them, so as to know their progress towards the goal. Once the goal is set, the high achiever puts himself completely into the job, until it gets completed successfully. He will not be satisfied until he has given his 100% in the task assigned to him. A person with a high need for achievement accomplishes the task that is intrinsically satisfying and is not necessarily accompanied by the material rewards. Though he wants to earn money, but satisfaction in the accomplishment of work itself gives him more pleasure than merely the cash reward.

8. Motivating factors include: Achievement : A job must give an employee a sense of achievement. This will provide a proud feeling of having done something difficult but worthwhile. Recognition : A job must provide an employee with praise and recognition of their successes. This recognition should come from both their superiors and their peers. The work itself : The job itself must be interesting, varied, and provide enough of a challenge to keep employees motivated. Responsibility : Employees should “own” their work. They should hold themselves responsible for this completion and not feel as though they are being micromanaged. Advancement : Promotion opportunities should exist for the employee. Growth : The job should give employees the opportunity to learn new skills. This can happen either on the job or through more formal training.

9. Hygiene factors include: Company policies : These should be fair and clear to every employee. They must also be equivalent to those of competitors. Supervision : Supervision must be fair and appropriate. The employee should be given as much autonomy as is reasonable. Relationships : There should be no tolerance for bullying or cliques. A healthy, amiable, and appropriate relationship should exist between peers, superiors, and subordinates. Work conditions : Equipment and the working environment should be safe, fit for purpose, and hygienic. Salary : The pay structure should be fair and reasonable. It should also be competitive with other organizations in the same industry. Status : The organization should maintain the status of all employees within the organization. Performing meaningful work can provide a sense of status. Security : It is important that employees feel that their job is secure and they are not under the constant threat of being laid off .

10. Expectancy  is the belief that increased effort will lead to increased performance i.e. if I work harder then this will be better. This is affected by such things as: Having the right resources available (e.g. raw materials, time) Having the right skills to do the job Having the necessary support to get the job done (e.g. supervisor support, or correct information on the job) Instrumentality  is the belief that if you perform well that a valued outcome will be received. The degree to which a first level outcome will lead to the second level outcome. i.e. if I do a good job, there is something in it for me. This is affected by such things as: Clear understanding of the relationship between performance and outcomes – e.g. the rules of the reward ‘game’ Trust in the people who will take the decisions on who gets what outcome Transparency of the process that decides who gets what outcome

11. Valence  is the importance that the individual places upon the expected outcome. For the valence to be positive, the person must prefer attaining the outcome to not attaining it. For example, if someone is mainly motivated by money, he or she might not value offers of additional time off. The three elements are important behind choosing one element over another because they are clearly defined: effort-performance expectancy (E>P expectancy) and performance-outcome expectancy (P>O expectancy). E>P expectancy:  our assessment of the probability that our efforts will lead to the required performance level. P>O expectancy:  our assessment of the probability that our successful performance will lead to certain outcomes. Expected motivation = Valence * Instrumentality * Expectancy

12. Theory X assumptions are negative; Employees inherently dislike work and, whenever possible, will attempt to avoid it. Since’ employees dislike work, they must be coerced, controlled, or threatened with punishment. Employees will avoid responsibilities and seek formal direction whenever possible. Most workers place security above all other factors and will display little ambition. Managers who accept theory-X assumptions tend to structure, control and closely supervise their employees. These managers think that external control is appropriate for dealing with unreliable, irresponsible and immature people.

13. Theory Y assumptions are positive; Employees can view work as being as natural as rest or play. People will exercise self-direction and self-control if they are committed to the objectives. The average person can learn to accept, even seek, responsibility. The ability to make innovative decisions is widely dispersed throughout the population. Managers who accept theory-Y assumptions about the nature of man do not attempt to structure, control or closely supervise the employees. Instead, these managers help their employees mature by subjecting them to progressively less external control and allowing them to assume more and more self-control .

14. Carrot and Stick Motivation

15. This approach comes from an old story that the best way to make a donkey move is to put a carrot out in front of him or jab him with a stick from behind. The carrot is the reward for moving, the stick is the punishment for not moving. For motivating people to work more some kinds of rewards can be offered. Often this is money in the form of pay or bonuses. There can be non-monetary reward too. The punishment can also be used to push a desirable behaviour of employees. These can be in the form of reduction of bonus, demotion, fear of loss of job, loss of income etc. Management uses rewards as well as punishments for enforcing a particular behaviour. The carrot, rewards, are recognized in various theories of motivation. The performance of employees is behind certain rewards. The employees would be motivated to improve their performance and they get financial and non-financial incentives in return.

16. The stick, punishment, also pushes employees raise their performance. In order to make the stick to work effectively, some factors may have to be kept in mind. It is important to decide the proper time using the stick. The negative motivation can also bring retaliation from employees. Punishment only temporarily suppresses the behaviour. It should also be taken into consideration that stick should not become a reward for undesirable behaviour. Both carrot and stick should be used judiciously otherwise they will not help in achieving the desired results.

17. How to implement a carrot and stick policy Use these steps to begin a carrot and stick motivational policy for your team: Set a goal. Create an incentive. Decide who should receive the carrot. Outline a consequence. Decide who should receive the stick. Choose your carrot and stick policy carefully.