Motivation and Needs in Management

Maslow's Hierarchy and Need for Achievement

• Managers may not have time to check where an employee stands in Maslow's hierarchy.
• Need hierarchy may not follow the sequence given by Maslow.
• The five major components of the need for achievement trait are:
• Responsibility for solving problems
• Setting goals
• Reaching goals through one's own efforts
• The need for feedback and using it
• Preference for moderate levels of risk-taking

David McClelland's Needs

• According to David McClelland, there are three types of needs:
• Need for achievement: the desire to grow, advance, and excel
• Need for power: a person's desire to influence and dominate others
• Need for affiliation: a person's desire to establish and maintain friendly relationships with others

Social Responsibility

• According to Kieth Davis, social responsibility is the obligation of decision makers to take decisions that protect and improve the welfare of society as a whole, along with their own interests.
• Alternative definition: social responsibility is the obligation of entrepreneurs to protect and improve both the welfare of society and the interests of the company.

Arguments in Favor of Social Responsibility

• Long run profits: when a company helps society, people will like the company, which brings profit in the long run.
• Prevents government intervention.
• Possession of resources: if people like the company, they will allow it to possess resources.
• Better environment: better quality of life can be created by solving social problems.
• Socio-cultural norms: helps to keep the social and cultural values of the society.

Arguments Against Social Responsibility

• Violation of profit maximization: if the company focuses on solving social problems, it cannot concentrate on profit maximization.
• Costs.

Responsibilities of Business

• Towards the government:
• Obey the rules and regulations
• Pay taxes and dues honestly
• Follow fair trade policies and practices
• Do not bribe the government officers
• Co-operate with the government to implement social activities
• Invest funds in government bonds, infrastructural bonds, etc.
• Towards society/community and environment:
• Provide employment
• Provide good and services
• Help in environmental protection
• Reduce pollution
• Set up industries in backward areas
• Conserve national resources
• Participate in community activities
• Promote culture and art
• Promote education
• Open hospitals
• Provide relief to victims of natural disasters

Entrepreneurship Development Programmes

• Definition: programmes designed to help an individual in strengthening their entrepreneurial motive and acquiring skills necessary for playing their entrepreneurial role effectively.
• Objectives:
• Short-term objectives:
  • Help in selecting project/product
  • Help in formulation of project
  • Help the participants understand the process and procedure of setting up a business enterprise
  • Know and influence the sources of help needed for setting up an enterprise
  • Prepare the person mentally for the entrepreneurial venture
• Long-term objectives:
  • Identify and train potential entrepreneurs
  • Develop knowledge and skill in the participants
  • Develop basic managerial understanding
  • Develop small and medium-scale industrial sectors
  • Know the pros and cons of being an entrepreneur
  • Industrialize backward areas
  • Provide self-employment to the youth

Phases of Entrepreneurship Development Programmes

• Initial or pre-training phase:
• Activities required to launch the training programme
• Main activities include:
  • Creation of infrastructure
  • Creation of training syllabus
  • Arrangement of inauguration of the programme
  • Designing techniques for selecting the trainees
  • Publicity campaign for the programme
  • Development of application form
• Training or development phase:
• Training is given to the participants to develop motivation and skills
• Post-training or follow-up phase:
• This phase involves assessment, to check how much the objectives of the programme have been achieved

Steps in Entrepreneurship Development Programmes

• Selection of potential entrepreneurs
• Identifying entrepreneurial trait
• Identification of enterprise
• Providing a package of training inputs
• Support system
• Monitoring and follow-up

Role of Entrepreneurship Development Programmes

• Stimulatory role:
• Entrepreneurial education
• Planned publicity for entrepreneurial opportunities
• Identification of potential entrepreneurs through scientific methods
• Motivational training to new entrepreneurs
• Guidance in selecting products and preparing project reports
• Providing techno-economic information and project reports
• Developing locally suitable products and processes
• Providing entrepreneurial counselling
• Creating entrepreneurial forum
• Supportive role:
• Registration of unit
• Arranging finance
• Providing land, power, water
• Guidance for selecting and obtaining machinery
• Supply of scarce raw materials
• Providing common facilities
• Granting tax relief and other subsidies
• Providing information
• Helping in marketing
• Offering management consultancy
• Sustaining role:
• Helping in modernization
• Helping in diversification
• Quality testing and improving services
• Need-based common facilities
• Socio-economic role:
• Improving the hidden talents of participants
• Utilizing hidden and unused resources like hoarded wealth for building the enterprise
• Helping in dispersal of industries
• Creating employment opportunities in small enterprises
• Ensuring equitable distribution of national income and wealth

Importance of Entrepreneurship Development Programmes

• EDPs have shown that entrepreneurs can be made and they are not born
• EDPs bring economic and social change in the entrepreneur's behaviour
• EDPs can convert ordinary people into risk-takers, innovators, and leaders of business
• EDPs can develop people to become economic emancipators, upon whom the economic well-being of the society depends
• EDPs can increase innovation of a person
• EDPs help in capital formation of the country
• EDPs help entrepreneurs to start businesses that are good for the environment
• EDPs create a sense of social responsibility in the minds of new entrepreneurs
• EDPs provide Achievement Motivation Training (ATM), which is important for entrepreneurship development
• EDPs develop social responsibility in entrepreneurs

District Industry Centres (DIC)

• Definition: DIC is a programme launched for the effective promotion of cottage and small industries in small towns.
• Functions:
• Identifies and develops new entrepreneurs by conducting entrepreneurial motivation programmes in the district
• Gives technical advice to new entrepreneurs
• Issues provisional SSI registration which is important for getting financial assistance
• Sponsors the loan applications to SIDCO (Small Industries Development Corporation) and National Banks for the purchase of land and building
• Sanction margin money payable to other financial agencies for the purchase of plant and machinery
• Takes initiative to get clearances from other departments and takes follow-up measures to get power connections fast
• Helps get financial assistance from lead bank of the district to village artisans and handicrafts
• Helps the small-scale industries to get subsidies
• Gives training to rural entrepreneurs
• Introduced the scheme of self-employment for unemployed educated youth in 1983-84