UNIT: III

Performance Appraisal – Methods – Job Evaluation – Job Satisfaction

– Determinants of Job Satisfaction and Morale – Motivation –
Theories of Motivation – Determinants of Personality
Performance Appraisal: Performance appraisal, also known as performance review,
performance evaluation, or employee appraisal, is a systematic process used by organizations to
assess and evaluate the job performance of employees. It typically involves a structured method
of gathering relevant information about an employee's work-related behavior, achievements, and
competencies, and comparing them against pre-established criteria and objectives.
Types of Performance Appraisal:
There are several different types of performance appraisal methods that organisations
can use to evaluate their employees. Here are some of the most common ones:
Rating Scales: Employees are assessed using a numerical scale on predefined criteria,
indicating performance levels.
360-Degree Feedback: Feedback is collected from peers, supervisors, subordinates, and self-
assessment for a well-rounded evaluation.
Behavioural Observation: Observing employees' actions and behaviours to assess job
performance and competencies.
Management by Objectives (MBO): Setting specific objectives with employees and
evaluating performance based on goal achievement.
Critical Incident Technique: Identifying specific positive and negative events that reflect an
employee's performance.
Objectives of Performance Appraisal:
The following are the objectives for conducting performance appraisals year after year:
 Employee promotion
 This is an essential first step towards promoting an employee based on subjective and
objective factors- performance and competency.
 Employee needs
 To identify the training and development needs of an employee.
 Employee Confirmation
 To provide confirmation to those employees who were recently hired and are on their
probation period.
 Making decisions about promotions and compensation
  To make a concrete decision, what should be the percentage of a hike in the salary of an
employee based on the work done by them?
 Improving communication
 To encourage a proper feedback system between the manager and employees.
 Scope of improvement
 To help employees understand where they stand in the current year and what is the scope
of improvement.
Methods of Performance Appraisal:
Management by Objectives (MBO): This method seeks to improve the performance of the
organization by setting clear goals agreed upon by both employees and managers. Set goals
should be challenging but achievable. Both managers and employees must analyse past
performance and identify problems. The information received should be used to solve the
problems and needs of the organization.
Psychological Appraisals: Psychological assessment is one of the most exciting and intuitive
assessment methods. This approach assesses the potential for future performance rather than the
past performance of employees. It focuses on the emotional, intellectual, and other personal
characteristics of employees that affect their performance.
360 Degree Feedback: 360-degree feedback is the systematic collection and feedback of
employee performance data from all of their colleagues, managers, and even customers. It is one
of the most commonly used evaluation methods. Since the involvement of managers, colleagues,
and customers is involved, this method provides an overview of performance reviews. It helps to
have different perspectives in the performance evaluation process.
Assessment Centre Method: In this method, employees are judged to be participating in
activities such as in-basket exercises, role plays, discussions, computer simulations. Their
persuasiveness, communication skills, confidence, sensitivity to the feelings of others, mental
alertness, administrative ability, etc.
Behaviorally Anchored Rating Scale (BARS): Behavior classification scales are designed to
take advantage of both quality and quantitative data in the performance testing process. BARS
compares a person's performance to a specific behavior associated with the classification of
numbers. He compares a person's performance to a specific behavior that is linked to a 5 to 9
digit score.
Cost Accounting Method: In this method, the organization evaluates employee performance
based on the monetary output from the inputs. It is confirmed by an alysing the costs associated
with retaining employees and the benefits they get from input.
Use of Performance Appraisal:
Performance appraisal serves several purposes within an organisation:
 It helps to assess employees' job performance, identifying strengths and areas for
improvement.
 It also aids in making informed decisions related to promotions, salary adjustments, and
training opportunities.
 Providing constructive feedback guides employees towards better performance and skill
development.
 It is pivotal in aligning individual goals with organisational objectives and enhancing
productivity.
Performance Appraisal Important:
Establishing compensation guidelines: Employee pay should be directly related to
productivity. Employees who exceed the call of duty receive higher annual allowances than
employees who meet the minimum. The only way to continuously monitor the performance of
exceptions is through the evaluation process. Regular one-on-one conversations about
employees' performance on their jobs help them determine the year for those in different
campuses.
Track strengths and weaknesses: The success of an organization does not depend on one
person. Different employees can share their experiences and strengths and complete projects
with minimal delay. Identifying the right candidates for the right team is an important part of
successful management. The best way to get the right people is to track the strengths and
weaknesses of each individual. Sequential grading makes this information readily available when
distributing new issues.
Identifying promotion candidates: Hiring services from within the organization strengthens the
organizational memory, which maintains the continuity of management style. Unfortunately, not
every applicant has the skills needed to be promoted. Quarterly or even annually, this assessment
allows hiring managers to look at the entire applicant's history and find the best internal
candidate to promote.
Offer feedback: Constructive criticism provides employees with the information they need to
improve their work performance. Good managers give opinions that motivate employees to
strive for betterment. Employees who are aware of performance expectations are better equipped
to meet the challenges of excellence. By regularly giving employees feedback on their
performance, managers open up communication channels, allowing for good working
relationships and fostering a spirit of collaboration.
Introducing training programs: Performance reviews provide an excellent time to discuss the
need for additional training and continuing education. Professionals need to be up-to-date on
industry best practices. The only way to make sure this is happening is to internally track the
training and deliver the programs. Training programs not only help employees to keep up with
new policies and procedures, but also help employees keep up with technology.
Key Elements of A Good Performance Appraisal:
Be relevant: Each element of the review must be relevant to the critical responsibilities that the
job requires. Focus your attention on the things that matter most to get the job done, not the more
secondary ones.
Be consistent: Find specific and measurable criteria. You want a process that gives consistent
results regardless of who performs the assessment, and it applies appropriately to each employee.
Be practical: The system should be able to operate without affecting other responsibilities in the
business if your work performance testing is ineffective, if it takes so long that it negatively
affects your other jobs. The temporal process may be more disturbing than its value, abandon it,
and end the review process.
Be open: Everyone involved in the review process, from the management to your human
resource experts to the individual workers, should have a voice in the review process. You will
help employees determine the standards on which they will be judged, because they understand
better than anyone what they need to do their job.
Job Evaluation: Meaning and Definition: Job evaluation is a formal and systematic comparison
of jobs in order to determine the worth of one job relative to another, so that a wage or salary
hierarchy results.
The purpose of job evaluation is to determine the basic wage rates for different jobs.

Definitions of Job Evaluation:

According to Edwin B. Flippo‘Job Evaluation is a systematic and orderly process of determining
the worth of a job in relation to other jobs’.
Kimball and Kimball define job evaluation as “an effort to determine the relative value of every
job in a plant to determine what the fair basic wage for such a job should be”.
Objective of Job Evaluation:
1. To Analyse the Job Factors and Requirement
2. To Facilitate Comparison and Survey
3. To Eliminate Inequalities
4. Determination of Wage Structure
5. Objectivity and Rationality in Wage Structure
6. To Solve Wage Controversies of Job Evaluation
7. To Eliminate Personal Prejudices
8. To Adopt a Clear Plan for Wage and Salary Administration
9. Standardization of Wage and Salary Rate
Job Evaluation Methods: There are different methods that can be used for job evaluation. The
easiest way to split these up is to make a distinction between qualitative and quantitative
methods.
Qualitative Quantitative Qualitative Quantitative
Job to job comparison Ranking method/ pair Factor-comparison method
comparison ranking
Job to pre-determined grade Job classification/ Grading Point-factor method
comparison Method
1. Ranking System: Under ranking system all the jobs are arranged or ranked in the order of
their importance from the simplest to the hardest, or in the reverse order, each successive job
being higher or lower than the previous one in the sequence.
Merits: i) This method is simple and easy to understand and easy to explain to employees (or a
union).
ii) Ranking method is very economical and less time consuming.
iii) It involves little paper work.
Demerits: i) It does not indicate the degree of difference between different jobs
ii) It involves subjective judgment, because a job is not analyzed and key factors are not
considered.
2. Job Classification (Or) Grading Method: Under this system, a number of pre-determined
grades or classifications are established by a committee and then the various jobs are assigned
within each grade or class.
Grading or classification method involves the following five steps:
i) The preparation of job descriptions, which gives us basic job information usually derived from
job analysis.
ii) The preparation of job descriptions, so that different levels or grades of jobs may be
identified. iii) Selection of grades and key jobs. About 10 to 20 jobs are selected, which include
all the major departments and functions and cover all the grades.
iv) Grading the key jobs. Key jobs are assigned to an appropriate grade level and their
relationship to each other studied.
v) Classification of all jobs. All the jobs in the same grade receive the same wage or range of
rates.
Merits:
i) This method is easy to understand and simple to operate
ii) It is more accurate and systematic than ranking method.
iii) It provides an opportunity to develop a systematic organization structure
iv) It is economical and suitable for small organizations also
v) Pay grades can be compared with those of other concerns. Grouping of jobs into grades
simplifies wage administration.
vi) This method is used in government offices.
Demerits:
i) It is very difficult to write accurate and precise descriptions of job grades.
ii) Some jobs may involve tasks which overlap more than one grade. It is very difficult to
classify such jobs in a particular grade.
iii) The system is rigid and personal judgment is involved in deciding job classes and assigning
jobs to specific classes.
3. Factors Comparison Method: This is a combination of both rating and point rating methods.
It means rates jobs by comparing them and makes analysis by breaking jobs into compensable
factors. This system is usually used to evaluate white collar, professional and managerial
positions.
The mechanism for evaluating jobs under this method involves the following steps.
1. Determine the compensable factors
2. Determine key jobs
3. Allocation present wages for key jobs
4. Place key jobs on a factor comparison chart
5. Evaluate other jobs
Merits:
1. It is more objective method of job evaluation
2. The method is flexible as there is no upper limit on the rating.
3. It is fairly easy method to explain to employees. 4. The use of limited number of factors
(usually five) ensures less Chances of overlapping and over-weighting of factors.
5. It facilitates determining the relative worth of different jobs.
Demerits:
1. It is expensive and time consuming method.
2. Using the same five factors for evaluating jobs may not always be Appropriate because jobs
differ across and within organization.
3. It is difficult to understand and operate.
4. The Points System: This method is most widely used type of job evaluation plan. It requires
identifying a number of compensable factors (i.e. various characteristics of jobs) and then
determining degree to which each of these factors is present in the job. Once the degree of each
factor is determined, the corresponding number of points of each factor are added and an overall
point value is obtained. The sum of these points gives us an index of the relative significance of
jobs that are rated.
The procedure involved in point method is as follows:
i) Determine the job to be evaluated
ii) Select the factors (skill, efforts, responsibility, wage conditions etc) and sub factors(education,
experience, quality of output etc).
iii) Define the factors.
iv) Determine the Degrees
v) Determine relative values of job factors
vi) Assign point values to degrees.
vii) Find point value of the job.
viii)Assign money values.
Merits:
i) Point method is most comprehensive and accurate
ii) Assignment of point scores and money value is consistent, it minimizes bias andhuman
judgment.
iii) Being the systematic method, workers of the organization favor this method.
Demerits:
1. It is both time-consuming and expensive method.
2. It is difficult to understand for an average worker.
3. a lot of clerical work is involved in recording rating scales.
4. It is not suitable for managerial jobs wherein the work content is not measurable in
quantitative terms.
Job Evaluation Committee: A job evaluation committee is group of individuals within the
organization ,responsible to conducting job evaluation and determining the relative value or
worth of various jobs within the company.
Members of Job Evaluation Committee:
1. HR professionals
2. Job Analysts
3. Subject matter experts
4. Compensation specialists
Responsibilities:
1. Job analysis
2. Selection of evaluation methods
3. Evaluation process
4. Documentation
5. Communication
6. Regular Review.
Job Satisfaction: Job Satisfaction refers to the degree of pleasure or happiness that an individual
feels in their job. This can be influenced by a variety of factors, such as the nature of the work
itself, the work environment, the company's culture, and the employee's relationships with their
co-workers.
Determinants of Job Satisfaction & Components of Job Satisfaction:
1. Work Environment: A positive and supportive work environment contributes significantly to
job satisfaction. Factors such as good relationships with colleagues, a fair and transparent
organizational culture, and opportunities for growth and development can all influence an
employee’s level of satisfaction.
2. Compensation and Benefits: Fair and competitive pay, along with attractive benefits
packages, can enhance job satisfaction. Employees who feel adequately rewarded for their efforts
are more likely to be satisfied with their jobs.
3. Job Role and Responsibilities: Clarity in job roles and responsibilities is essential for job
satisfaction. When employees understand their roles and can utilize their skills and strengths,
they tend to experience greater satisfaction.
4. Work-Life Balance: Striking a balance between work and personal life is crucial for job
satisfaction. Employers that promote work-life balance initiatives demonstrate a commitment to
their employees’ well-being, leading to higher job satisfaction.
5. Recognition and Appreciation: Employees who receive recognition and appreciation for
their contributions are more likely to feel valued and satisfied in their jobs. Simple gestures of
acknowledgment can have a profound impact on morale.
6. Career Advancement Opportunities: A clear path for career growth within the organization
is essential for job satisfaction. Employees want to see opportunities for advancement and
professional development to feel motivated and satisfied with their work.
7. Positive Organizational Culture: Jason, a human resources manager, experienced job
satisfaction in his role due to the positive organizational culture of his company. The workplace
culture prioritized open communication, collaboration, and mutual respect. Employees were
encouraged to share their ideas, opinions, and concerns without fear of reprisal, fostering a sense
of belonging and camaraderie among the team. The supportive environment contributed to
Jason’s sense of fulfillment and overall happiness at work.
8. Meaningful Work: Megan, an environmental scientist, found immense satisfaction in her job
due to its meaningful nature. Her work involved researching and implementing sustainable
practices that directly impacted the environment positively. Contributing to a cause she deeply
cared about gave her job a sense of purpose and fulfillment that went beyond financial rewards.
Types of Job Satisfaction:
1. Intrinsic Job Satisfaction: This type of satisfaction stems from the inherent enjoyment
an employee experiences while performing their job. It is driven by the satisfaction of
accomplishing tasks, using skills, and fulfilling a sense of purpose.
2. Extrinsic Job Satisfaction: Extrinsic job satisfaction is related to external factors, such as
pay, benefits, and working conditions. While these factors may not directly relate to the job
itself, they influence an employee’s overall satisfaction with their work.
3. Social Job Satisfaction: Social job satisfaction refers to the level of satisfaction an employee
derives from positive relationships with colleagues and supervisors. A supportive and friendly
work environment can contribute significantly to social job satisfaction.
Importance of Job Satisfaction:
Increased Productivity: Satisfied employees are more likely to be motivated and committed to
their work, leading to higher productivity levels. They are willing to invest more effort and time
into their tasks, resulting in improved performance.
Employee Retention: Job satisfaction is a critical factor in employee retention. When
employees are content with their jobs, they are less likely to seek opportunities elsewhere,
reducing turnover rates and associated recruitment costs.
Enhanced Employee Well-being: Job satisfaction positively impacts an employee’s overall
well-being. Satisfied employees experience lower stress levels and are generally happier both at
work and in their personal lives.
Better Organizational Reputation: Organizations that prioritize employee satisfaction tend to
build a positive reputation in the job market. This can attract top talent and create a competitive
advantage for the company.
Increased Customer Satisfaction: Satisfied employees are more likely to provide excellent
customer service and maintain positive interactions with clients. This, in turn, enhances overall
customer satisfaction and loyalty.
Moral: Employee morale is employees’ attitude, satisfaction, and overall outlook when
associating with an organization or a business. If your organization has a poor culture, there will
be adverse effects like low productivity, low employee satisfaction, etc. It can most certainly
lead to greater employee attrition, just to begin with. Organizations can create a thriving
environment where everyone can succeed by understanding and prioritizing employee morale.
Importance of Employee Morale: Employee morale is important because it’s linked directly to
employee engagement, job satisfaction, retention, and overall productivity. With good employee
morale, employees are more likely to be engaged, more productive, and have a better quality of
life. Low employee morale limits productivity and can affect employees’ health and well-being.
Productivity: High morale often leads to higher productivity, as motivated employees are more
focused and efficient.
Retention: Organizations with high morale tend to retain employees longer, reducing
recruitment and training costs associated with high turnover.
Quality of Work: Engaged employees will likely produce higher-quality work, enhancing
overall organizational performance.
Positive Culture: High morale contributes to a positive organizational culture, fostering
teamwork, collaboration, and innovation.
Customer Satisfaction: Employees with high morale often provide better customer service,
leading to increased customer satisfaction and loyalty.
Factors to Consider Before Improving Employee Morale:
Employee morale is a complex phenomenon and depends on various factors. Here is the different
criterion that affects employee morale:
1. The organization’s employee morale: While it may sound surprising, the organization is one
of the biggest and most important factors affecting employee morale. An organization influences
an employee’s attitude toward his/her work. An organization’s corporate reputation can
undoubtedly build up for better or worse, depending on an employee’s attitude toward it.
2. Type of work: The nature of work an employee performs at his/her workplace is also greatly
responsible for determining morale. An unorganized organizational structure can make situations
worse for an employee, affecting employees. If the employee feels that he/she is just a cog
machine in a factory line instead of a real person, this, too, may adversely affect their morale.
3. Personal attributes: Mental and physical health play an important role in determining
employee morale. Other important factors that concern employees’ progress and, in turn, their
morale are age, education qualification, years of experience, occupational levels, reward
perception, and similar factors.
4. Supervision and feedback: The level of supervision an employee receives is a tremendous
factor that affects morale. Suppose the employees feel they lack direction or don’t understand the
organizational goals and commitments. In that case, it is the job of the superiors and the
leadership in the organization to get them on the same page. But there should not be too much
interference, too. If the employees are free to work, their morale will be high.
5. Work-life balance influences employee morale: Most organizations need to recognize the
importance of a healthy work-life balance. The employees must have some activities to relax
while they are at work. It’s not just about the foosball culture or an inventory stuffed with
food. Forbes magazine emphasizes the importance of maintaining a balanced lifestyle for
employees to increase productivity and boost levels of employee satisfaction.
Measuring Employee Morale: Measuring employee morale is essential to understanding how
employees feel about their work environment and identifying areas for improvement. Here are
several effective methods for assessing employee morale:
1. Employee Surveys:
Pulse Surveys: Short, frequent surveys that track employee morale over time by asking about
their satisfaction, engagement, and overall sentiment.
Annual Employee Engagement Surveys: More comprehensive surveys that delve into various
aspects of work life, such as job satisfaction, management relationships, and workplace culture.
Morale-specific Surveys: Surveys focus on factors like work-life balance, communication, team
dynamics, and recognition.
2. One-on-One Meetings: Regular check-ins between employees and managers provide an
opportunity to discuss concerns, achievements, and overall well-being. These conversations give
insight into employees’ mental and emotional states.
3. Employee Feedback Platforms: Utilizing tools that allow employees to give continuous
feedback on their work environment, team collaboration, and management can help gauge
morale in real-time. Anonymous feedback options often lead to more honest responses.
4. Turnover Rates: Monitoring employee retention rates and exit interviews can be a strong
indicator of morale. High turnover or common negative feedback during exit interviews can
signal underlying morale issues.
5. Absenteeism and Productivity Levels: Low morale often manifests in frequent absenteeism,
tardiness, and decreased productivity. Tracking these metrics can help reveal morale trends
within teams or departments.
6. Social Interactions and Team Dynamics: Observing how employees interact with each other
can provide valuable insight. A collaborative, supportive work environment often indicates
higher morale, while tension and poor communication suggest morale [Link] using a
combination of these methods, organizations can clearly see employee morale and take action to
address any concerns.
Motivation: Motivation means the drive or inspiration that an individual has to perform at work.
It's what makes a person want to get up in the morning and be excited to go to work. When
employees are motivated, they're more likely to be productive, creative, and engaged in their
job. Motivation is influenced by a variety of factors. These include recognition, growth
opportunities and a positive work environment. By understanding and promoting such factors, a
better workplace culture is created. This, in turn, improves overall job satisfaction for employees.
According to W. G. Scot, “Motivation means a process of stimulating people to action to
accomplish the desired goals.”
According to Michael J. Jucius, “Motivation is the act of stimulating someone or oneself to get a
desired course of action, to push the right button to get a desired results.”
Benefits of Employee Motivation:
Improved employee engagement: A motivated workforce leads to increased employee
engagement and a positive work environment.
Boosted innovation: Employees who are motivated and engaged in their work are more likely to
offer innovative solutions. Thus, improving the profitability of the company.
Increased loyalty: A motivated workforce is less likely to seek job opportunities elsewhere. As
a result, your company may experience a lower attrition rate.
Higher productivity: Motivated employees tend to be more productive, completing more work
in less time. Thereby, adding value to the company.
Elevated employee morale: Employee Motivation is directly linked to their morale. Providing
meaningful work and decision-making opportunities can significantly boost employee morale.
Enhanced job satisfaction: Job satisfaction is essential for employee performance. A motivated
workforce is more likely to be satisfied with their job.
Strong work ethic: Motivated employees exhibit a strong work ethic. They tend to display
discipline, self-motivation, and commitment to their jobs. Such employees are an asset to the
company and easy to manage.
Types of Employee Motivation:
Here are a few of the typical Employee Motivation types.
Extrinsic Motivation: This type of motivation is based on external factors such as salaries,
bonuses, and rewards. These incentives can be used to motivate employees to work harder, meet
deadlines, and achieve company goals. Extrinsic motivation is often seen as a tangible way to
show appreciation for an employee's hard work.
Intrinsic Motivation: This type of motivation comes from within the employee. It is driven by
personal satisfaction and enjoyment of the work itself. Employees who are intrinsically
motivated feel a sense of accomplishment and satisfaction from their work. Also, they do not
rely on external incentives to stay motivated.
Social Motivation: This type of motivation comes from the desire to work with others towards a
common goal. Employees who are socially motivated enjoy collaborating with their colleagues
and feel a sense of belonging to a group. They are often more motivated when they feel that they
are part of something larger than themselves.
Monetary Motivation: This type of motivation focuses on financial incentives. These may
include pay raises and bonuses, to motivate employees to work harder. Monetary motivation can
be effective in encouraging employees to meet performance goals. However, it may be less
effective in creating long-term motivation.
Recognition Motivation: This type of motivation comes from acknowledging and rewarding
employees for their hard work and achievements. Recognition can come in the form of public
praise, awards, or special privileges. This type of motivation helps employees feel valued and
appreciated, which can boost their motivation and job satisfaction.
Responsibility Motivation: This type of motivation comes from giving employees more
responsibility and decision-making power in their jobs. Employees who are given more
responsibility feel a greater sense of ownership and pride in their work. For employees looking
for career advancement opportunities, this type of motivation is especially effective.
Different Ways to Motivate Employees: There are several Employee Motivation strategies and
techniques that managers can use to keep their team engaged and productive. Some of the more
popular ones are listed in this section.
Offering incentives and bonuses: Rewards and bonuses can be a great way to motivate
employees to reach specific goals or milestones. It can be in the form of a financial bonus, extra
time off, or a special recognition at a company event.
Creating a positive work environment: Fostering collaboration, communication, and
teamwork can create a positive work environment that motivates employees. This can be
achieved through team-building activities and regular check-ins to ensure that employees feel
valued and supported.
Providing opportunities for growth and development: You can increase Employee
Motivation by providing employees with opportunities for growth and development. Offering
mentorship programs, career advancement opportunities, and training for the workplace are some
ways to do this.
Allowing employees to have a say in decision-making: Giving staff a sense of ownership by
letting them make calls regarding their work can also boost motivation.
Understanding individual Employee Motivation: Ultimately, the most effective Employee
Motivation strategy is to understand what drives each individual employee. By taking the time to
get to know your team and what motivates them, you can tailor your Employee Motivation
strategy to best support and engage them.
Factors Influencing Motivation:
The key elements & top factors which influence employees in business or people in general are
as follows:
1. Salary: Monetary compensation & benefits like gross salary, perks, performance bonuses etc.
are the biggest motivation factors. The better the salary and monetary benefits, the higher is the
motivation level & passion of a person towards a job.
2. Recognition: Rewards, recognition, accolades etc. are important for ensuring high enthusiasm
levels for an employee. If the hard work of an individual is appreciated, it keeps them motivated
to perform better.
3. Work Ethics: Ethical working environment, honesty etc. are important factors for any
individual. Good work ethics in a company helps keep employees motivated at work place.
On the other hand, if the work environment is not ethical, then the workforce might be
demotivated.
4. Transparency with Leadership: The leadership in an organization helps in employee
motivation if there are transparent discussion and flatter hierarchies. The senior management has
to ensure that all subordinates are happy, focused & motivated.
5. Culture at Work: A good, vibrant, positive culture at workplace is always an important
factor. People from different backgrounds, religions, countries etc. working together helps create
a social bond at workplace.
6. Learning and Development: Another factor influencing is the training and development
opportunities that a person gets. L&D helps individuals develop more skills and have better
opportunities in their professional career.
7. Work Life Balance: Having a good quality of work life (QWL) helps in the motivation of
people. A good work life balance ensures that a person can give quality time to both office work
as well as family.
8. Career Growth Opportunities: Career development opportunities have a positive influence
on the motivation of any person. If a person knows their future & career path is secure, they tend
to work with more passion.
9. Health Benefits: Health benefits, insurance & other incentives act as a source of motivation
for people. If the medical bills, hospitalization charges etc. are taken care of by the company, it
helps build a strong trust.
10. Communication: A positive & transparent communication between managers and
subordinates gives a sense of belonging and adds to the employee’s motivation. Discussion
related to work as well as personal life help make a friendly bond at workplace.
There are not finite factors influencing positive attitude of an employee. These keep on changing
depending upon the type of environment, job responsibility, experience in life etc. Hygiene
Factors of motivation are also given by the Hygiene Theory.
Employee Motivation Theories: There are various theories that try to explain what motivates
employees in the workplace. Some of the widely recognised ones include the following.
Maslow's Hierarchy of Needs: This theory states that individuals are motivated by fulfilling
five basic needs. These needs start from the most basic (physiological and safety) and move up
the hierarchy towards self-actualisation.
The five needs are the following:
 Physiological needs (example: food, water, shelter)
 Safety needs (example: security, protection)
 Love and belonging needs (example: friendship)
 Esteem needs (example: self-respect, recognition)
 Self-actualisation needs (example: fulfilment of one's potential)
Herzberg's Two-Factor Theory: This theory divides job factors into two categories: hygiene
factors and motivators. Hygiene factors, such as salary and working conditions, must be met to
prevent dissatisfaction. On the other hand, motivators, such as recognition and responsibility,
drive job satisfaction.
Expectancy Theory: The expectancy theory is a widely recognised framework that explains the
factors influencing an individual's motivation. According to this theory, an individual's
motivation is based on their belief that putting in more effort will result in better outcomes.
However, for the person to be motivated, they must also value these outcomes.
Self-determination Theory: This theory posits that individuals are motivated when they
experience three feelings. The feelings are autonomy (control over their work), competence (the
belief that they are capable), and relatedness (the sense of connection to others). When these
three needs are met, individuals are more likely to be motivated and engaged in their work.
Determinants of Personality:
Personality: Personality can be described as a rich tapestry of inner psychological
characteristics that both mould and mirror an individual’s thoughts and behaviours within their
surroundings. These inner traits encompass a diverse array of qualities, attributes, traits,
factors, and mannerisms that set one person apart from another. Personalities wield substantial
influence over a person’s choices, whether it be in selecting products or choosing where to
shop. Moreover, they significantly shape how consumers respond to a company’s
communication efforts.
The term “personality” traces its origins to the Greek word “persona”, meaning “to speak
through.” Personality represents the amalgamation of characteristics and qualities that
constitute a person’s distinctive identity. It signifies the role an individual assumes in public
life. Every person possesses a unique, personal character that serves as a primary driver of their
behaviour, defining their personality.
In the realm of Organizational Behavior, an individual’s personality plays an exceptionally
pivotal role in assessing their conduct within an organisation. When a person in a senior
organisational role exhibits an incompatible personality, it can have detrimental effects on
relationships and potentially lead to unrest in the workplace.
Determinants of Personality: The determinants of personality are the various factors and
influences that shape an individual’s unique pattern of thoughts, emotions, and behaviors.
These determinants help explain why individuals differ in their personalities and why they
respond differently to various situations. The key determinants of personality include
Hereditary factors, Environmental factors, Situational factors, Cultural factors, Social factors,
etc.
I. Hereditary Factors
Heredity, also known as genetics, refers to the influence of genetic factors and
biological inheritance on an individual’s personality. It involves the transmission of traits and
characteristics from parents to their offspring. Various aspects are considered regarding
heredity when it comes to the study of personality, some of them are:
1. Genetic Inheritance: The genetic makeup of an individual is a critical determinant of their
personality. Specific genes and combinations of genes can predispose individuals to certain
traits and behaviours. For example, genes may contribute to temperament, intelligence, and
susceptibility to mental health conditions.
2. Twin and Family Studies: Research on identical and fraternal twins, as well as family
studies, has provided substantial evidence for the hereditary basis of personality. These studies
have demonstrated that certain personality traits, such as introversion-extroversion and
neuroticism, tend to have a genetic component.
3. Gene-Environment Interplay: It is important to note that genetics interact with
environmental factors. Genes can influence how individuals respond to their surroundings and
the experiences they encounter. This interaction is known as gene-environment interplay and
plays a crucial role in shaping personality.
II. Environmental Factors
Environmental factors encompass the external influences and experiences that
individuals encounter throughout their lives. These factors can significantly shape and mold an
individual’s personality. Here are key aspects of environmental determinants:
1. Family Environment: The family is often the primary socialising agent in a person’s life.
The way parents raise their children, including their parenting style and family dynamics, can
profoundly influence personality development. For example, a nurturing and supportive family
environment can foster self-confidence and a positive self-concept.
2. Cultural and Societal Influences: Cultural norms, values, and societal expectations impact
how individuals perceive themselves and others. Cultural factors, including cultural values and
social norms, shape personality traits and behaviours. For instance, collectivist cultures may
emphasisze conformity and interdependence, while individualist cultures may promote
autonomy and self-expression.
3. Peer Groups and Socialisation: Peer groups, friends, and social interactions outside the
family environment play a pivotal role in personality development. Peer influence can shape
attitudes, values, and behaviours, particularly during adolescence when peer acceptance is
highly valued.

III. Situational Factors

Situational factors refer to the immediate context or circumstances an individual
encounters. While personality is generally considered relatively stable, situations can
temporarily influence behavior and expression.
1. Stress and Coping Mechanisms: High-stress situations, such as academic exams, job
interviews, or personal crises, can evoke different aspects of an individual’s personality.
People may exhibit resilience, adaptability, or anxiety depending on the situation and their
coping mechanisms.
2. Role and Context: The roles individuals assume in various situations can lead to role-
specific behaviors. For example, someone may exhibit assertiveness and leadership traits in a
work environment but be more passive in social settings.
3. Mood and Emotional State: An individual’s mood and emotional state at a given moment
can affect their behaviour and expression. For instance, someone in a cheerful mood may
exhibit extroverted traits, while someone feeling anxious may display introverted tendencies.
IV. Cultural Factors
Cultural factors encompass the societal and cultural environment in which an individual
is immersed. These factors shape an individual’s values, beliefs, and behaviours. Key aspects
of cultural factors include:
1. Cultural Values: Each culture has its unique set of values and beliefs that influence an
individual’s worldview. These values can encompass concepts like collectivism versus
individualism, egalitarianism, and the importance of tradition.
2. Social Norms: Cultural norms dictate acceptable behaviour within a specific society or
community. These norms impact an individual’s choices and actions in various social contexts,
including family, work, and social interactions.
V. Social Factors
Social factors encompass the broader societal context and interpersonal relationships
that an individual experiences throughout their life. These factors include:
1. Peer Influence: The influence of friends and peer groups can significantly shape an
individual’s personality, values, and behaviours. Peer pressure, social acceptance, and the
desire for social belonging can impact decision-making.
2. Social Support: The quality and nature of an individual’s social relationships, including
friendships and support networks, have a profound effect on emotional well-being and can
influence personality traits like resilience and self-esteem.