EXAM QUESTION

1. Explain OB model II with diagram

2. Explain group development stage with diagram
3. What is motivation? Which theory of motivation is applicable for banking industry?
Why?
4. Explain type of communication
5. Explain one theory of leadership with suitable example

Herzbergs Two Factor Theory still holding

strong
Business & Management
Friday, February 10th, 2012
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Some of the most informative management platforms are those most entrenched.
Herzbergs motivation hygiene system still rings true
Psychologist Frederick Herzberg developed his motivation-hygiene theory, also commonly
referred to as the Two Factor Theory, in 1959, by interviewing a large number of engineers and
accountants in the Pittsburgh area.
The theory states that there are specific factors in the work environment that result in job
satisfaction. Apart from these there are different sets of factors that cause dissatisfaction.
Herzbergs theory therefore differs from similar theories in the respect that he theorised that job
dissatisfaction and job satisfaction were caused by two independent sets of factors. Removing the
factors that cause job dissatisfaction will, according to his theory, therefore not result in job
satisfaction, since this is determined by a separate set of factors.

Fundamentals of the Two Factor Theory

According to Abraham Maslow, individuals have five essential needs, starting with basic
physical at the bottom, going through security needs, social needs and self-esteem needs, until
we get to self fulfilment needs at the top. His theory has been highly influential in the workplace
and is still used today by managers around the world.
Where Herzberg agrees with Maslow is that he says fulfilling individuals basic needs for
pleasant working conditions, a safe environment and a minimum salary, are not sufficient to
satisfy them. They are, instead, motivated by the fulfilment of higher-level psychological needs,
such as recognition, a sense of achievement, advancement and responsibility and the nature of
the work they have to do.
Herzberg, however, added a second dimension to Maslows theory by suggesting that there are
separate sets of factors that will cause workers to be dissatisfied in the workplace, even if all
their other needs are met in terms of the Maslow hierarchy of needs. Some of the factors he listed
are supervision problems, company policy, relationship with peers and seniors, working
conditions, salary and security.
Satisfaction and dissatisfaction do not form a continuum therefore, with one decreasing as the
other one increases. To improve productivity and attitudes in the workplace, managers must
recognise and attend to both sets of factors and not make the false assumption that increasing
satisfaction will automatically lead to a decrease in dissatisfaction.
Tesco is one company that uses elements of Herzbergs theory to motivate its employees. The
company pays attention to factors causing dissatisfaction as well as those causing satisfaction.
As an example, employees are motivated and empowered by timely and appropriate
communication, by involving personnel in decision-making and by delegating wherever possible.
Forums are held every year in which staff can provide input on pay rises. Tesco personnel even
get an opportunity to give their input when restaurant menus are designed, helping to prevent
feelings of alienation and dissatisfaction.
In a 2009 study at the University of Malaysia and the University Tunku Abdul Rahman, also in
Malaysia, it was found that the major factors determining job satisfaction for staff members were
salary, policy and administration. The main factors that caused job dissatisfaction were lack of
personal growth and personal achievement.