Course Instructor:

B. G. Bhattacharya

ENTREPRENEURSHIP
CHAPTER : III

Entrepreneurship
Motivation

Purbanchal University, Nepal

MOTIVATION
DEFINITION OF MOTIVATION

The result of the interaction between the

individual and the situation.
The processes that account for an individuals
intensity, direction, and persistence of effort toward
attaining a goal specifically, an organizational goal.

Three key elements:

Intensity how hard a person tries
Direction effort that is channeled toward, &
consistent with, organizational goals
Persistence how long a person can maintain effort
DEFINITION OF MOTIVATION

Motivation is:

The driving force within individuals by

which they attempt to achieve some
goal in order to fulfill some needs or
expectation.
The degree to which an individual wants
to choose in certain behavior.
THE NATURE OF MOTIVATION

Intrinsically Motivated Behavior

The sense of accomplishment and achievement
derived from doing the work itself

Extrinsically Motivated Behavior

Behavior that is performed to acquire material or
social rewards or to avoid punishment.
The source of the motivation is the consequences of
the behavior and not the behavior itself.
 OUTCOMES & INPUTS IN
MOTIVATION

Input
Anything a person contributes to his or her job
or organization (Time, effort, skills, knowledge,
work behaviors).

Outcome
Anything a person gets from a job or an
organization (pay, job security, autonomy,
accomplishment).
THE MOTIVATION EQUATION
ENTREPRENEURIAL MOTIVATION

Entrepreneurial Motivation
is the drive of an
entrepreneur to maintain
an entrepreneurial spirit in
all their actions.
ENTREPRENEURIAL MOTIVATION
What motivates an entrepreneur? (motivating factors)

Autonomy
Making money/Financial Independence
Saw business opportunity/Impact on Industry
Recognition of self and/or organization
Desire to create something new/innovate
Build something important/make a difference
Grow a business from scratch
Desire to be entrepreneur/excitement of entrepreneurship

ENTREPRENEURIAL MOTIVATION

What motivates an entrepreneur? (motivating factors)

Intellectual challenge/achieve potential

Instinct
Career growth/diversification/satisfaction
Utilize previous experience
Had technology/industry vision
Non-monetary success/personal satisfaction
Create value/jobs/wealth in society
ENTREPRENEURIAL MOTIVATION

Basic Features of Entrepreneurial Motivation:

Effort
Need
and
Satisfaction
Performance

Extrinsic
Motivating
and Intrinsic
People
Rewards
ENTREPRENEURIAL MOTIVATION
Effort and Performance:

Effort

Initiation
Direction Performance
Persistence
ENTREPRENEURIAL MOTIVATION
Need Satisfaction:
Needs
physical or psychological requirements
must be met to ensure survival and well being
Unmet needs motivate people
If you normally skip breakfast but then get stuck working
through lunch, chances are you'll be so hungry by late
afternoon that the only thing you'll be motivated to do is
find something to eat.
So, according to needs theories, people are motivated by
unmet needs. But once a need is met, it no longer
motivates. When this occurs, people become satisfied.
ENTREPRENEURIAL MOTIVATION
Extrinsic and Intrinsic Rewards:

Extrinsic rewards are tangible and visible to others and are

given to employees contingent on the performance of specific
tasks or behaviors. External agents (managers, for example)
determine and control the distribution, frequency, and amount
of extrinsic rewards, such as pay, company stock, benefits, and
promotions.

By contrast, intrinsic rewards are the natural rewards

associated with performing a task or activity for its own sake.
Examples of intrinsic rewards include a sense of
accomplishment or achievement, a feeling of responsibility, the
chance to learn something new or interact with others, or
simply the fun that comes from performing an interesting,
challenging, and engaging task.
ENTREPRENEURIAL MOTIVATION
Motivating People:

Ask people what their needs are

Satisfy lower-order needs first

Expect peoples needs to change

Satisfy higher order needs by looking for ways to allow

employees to experience intrinsic rewards
MASLOWS HIERARCHY OF NEEDS
There is a hierarchy of five needs. As each need is
substantially satisfied, the next need becomes dominant.

Assumptions
Self-Actualization Individuals cannot
Higher Order move to the next
Internal Esteem higher level until all
needs at the current
Social (lower) level are
Lower Order Safety satisfied
External Must move in
Physiological
hierarchical order
MASLOWS HIERARCHY OF NEEDS
According to Maslow, within every human being, the following
hierarchy of needs exists.
1. Physiological. Hunger, thirst, shelter, clothes, and other survival
needs.
2. Safety. Security, stability, and protection from physical or
emotional harm.
3. Social. Social interaction, affection, companionship, and
friendship.
4. Esteem. Self-respect, autonomy, achievement, status, recognition,
and attention.
5. Self-actualization. Growth, self-fulfillment, and achieving ones
potential.

The first three are deficiency needs because they must be satisfied
if the individual is to be healthy and secure. The last two are growth
needs because they are related to the development and
achievement of ones potential.
As each of these needs becomes substantially satisfied, the next
higher need becomes dominant.
ALDEFERS ERG THEORY

Growth

Relatedness

Existence
 ALDEFERS ERG THEORY

Aldefers ERG Theory collapses Maslows five needs

into three.

Existence: safety and physiological needs

Relatedness: belongingness

Growth: esteem and self-actualization

Alderfer also differed from Maslows concept of hierar-

chical need base. He argued that any need can come at
any point of life, not necessarily in any chronological
order.
ACQUIRED NEEDS THEORY

Developed by David McClelland in the late 1940s

Used TAT (Thematic Apperception Testing) as a way of
examining human needs
Discovered three major human needs
1. Need for Achievement (nAch)
2. Need for Power (nPower)
3. Need for Affiliation (nAff)
ACQUIRED NEEDS THEORY
NEEDS CLASSIFICATION

Maslows Alderfers McClellands

Hierarchy ERG Learned Needs

Higher Self- Growth Power

-Order Actualization Relatedness Achievement
Needs Esteem Affiliation
Belongingness

Lower- Safety Existence

Order Physiological
Needs
 NEEDS CLASSIFICATION
Things become even more complicated when we consider
the different predictions made by these theories.

According to Maslow, needs are arranged in a hierarchy

from low (physiological) to high (self-actualization). Within
this hierarchy, people are motivated by their lowest
unsatisfied need. And, as needs are met, they work their
way up the hierarchy from physiological to self-
actualization needs.

By contrast, Alderfer says that people can be motivated by

more than one need at a time. Furthermore, he suggests
that people are just as likely to move down the needs
hierarchy as up, particularly when unable to achieve
satisfaction at the next higher need level.
 NEEDS CLASSIFICATION
McClelland, on the other hand, argues that the degree to
which particular needs motivate varies tremendously from
person to person, with some people being motivated
primarily by achievement and others by power or
affiliation.
Moreover, McClelland says that needs are learned, not
innate. Lower order needs are concerned with safety and
with physiological and existence requirements. However,
higher order needs are concerned with relationships
(belongingness, relatedness, and affiliation); challenges
and accomplishments (esteem, self-actualization, growth,
and achievement); and influence (power).
Studies generally show that higher order needs will not
motivate people as long as lower order needs remain
unsatisfied.
 CONTEMPORARY
MOTIVATIONAL STRATEGIES
Motivation through job design
Job rotation
Job enlargement
Job enrichment

Motivation through incentives

Training and education
Motivation through empowerment
Teambuilding
 CONTEMPORARY
MOTIVATIONAL STRATEGIES

Positive Reinforcement & Recognition : Job-Related

Confirming Behaviors

Praise

Positive Written Communication

Orientation and Training

Active Listening

Courtesy
 CONTEMPORARY
MOTIVATIONAL STRATEGIES
Barriers to Positive Reinforcement:

Preoccupation with self

Narcissism
Misconceptions about positive reinforcement
The too busy syndrome
Not identifying commendable actions
Not knowing what to say or do
Lack of appropriate role models
 CONTEMPORARY
MOTIVATIONAL STRATEGIES
Self Motivation Strategies:

Take control of your expectations

Fight the urge to underachieve

Learn to love the job you hate

Build immunity to cynicism

Strive for balance

 INDIVIDUALIZING MOTIVATION

1. Understand that each individual has different

motivators and individuals are motivated differently
depending upon the situation

2. Understand that Motivation is not a personality trait,

which either you have or you dont. It is by degree for
everyone

3. Invite employees to participate in determining their

own rewards

4. Make certain that motivation is being handed out

equitably
INDIVIDUALIZING MOTIVATION

5. Connect rewards to both individual & team

performance

6. Ensure that employees are both having fun and

producing

7. Balance the needs of the employee with the needs of

the organization (provide the best reward under the
circumstances)

8. View individuals as followers, not as employees!