Business Studies XII Content

Unit 1: Nature of Management
Unit 2: Principles of Management
Unit 3: Planning
Unit 4: Organizing
Unit 5: Decision-Making
Unit 6: Direction
Unit 7: Motivation
Unit 8: Leadership
Unit 9: Supervision
Unit 10: Communication
Unit 11: Co-ordination
Unit 12: Controlling
Unit 13: Risk Management and Insurance
Unit 14 : Emerging Management Concepts
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Chapter 7 » Meaning and Importances of Motivation | Business Studies – XII


Meaning of motivation

Motivation is an inspiration that helps to use the employees’ knowledge and skill for the growth and development of the organization. It is an act of persuading the people who work in the organization. It is defines as the psychological process that hell to increase the will to do work. It is the process of inspiring people from which the people can use their ability. It is an important function of management. The employees who are engaged in the organization must be motivated. Without motivation, their ability and skill can’t be used properly. Every employee has the capacity to do work. It is the process that helps the employee to explore their talent.

“The concept of motivation is mainly psychological. It relates to those factors or forces operating with the individual employee or subordinate which impel him to act or not to act in certain ways.”

–Delton e. McFarland

Importance of motivation

1. Proper utilization of production factor: Motivation is the mechanism which is used to stimulate the employees. Stimulated employees are ready to use the production factor properly and efficiently. So it results in increase in production and productivity.



2. Willingness and interest creation: Motivation stimulates the employees in an organization. It influences the willingness of employees to work hard and help to present better performance. It is a process that acts according to desire of employees and increases the willingness and interest of employees to do work.
3. High productivity: When the employees are fully motivated there is better performance. It results high production and productivity increment.
4. Organizational goals:The machine, equipment, money cannot be effectively used when the employees are not motivated to do the work in an organization to the maximum extent.so it helps to achieve the organizational goals.
5. Readiness for change:Changes are required in every organization. Such changes may be in technology, environment etc. when the changes are introduced in the organization there is tendency to resist them by the employee or hesitate to accept the change. Motivated employees are already made ready to accept the change.
6. Efficiency in work:Motivated employees perform their duties according to the goals of the organization. They perform work efficiently and timely and increase the efficiency

7. Reduce absenteeism: – Motivated employees don’t want to be absent frequently. In other words, Motivated employees stay in the organization more and non Motivated employees are careless for the organizational goals.

8. Employees’ satisfaction:employee’s satisfaction is an important aspect for the managerial point of view. Employees may be motivated by fulfilling their needs and giving satisfaction in their work. In short Motivated employees are always satisfied.
9. Fewer disputes and strikes:  disputes and strikes are harmful for organizational activities. When the employees are not motivates they are dissatisfies which creates disputes in the organization.
10. Better human relation: all employees must be treated as human beings by the organization. Motivation I mainly related to behave the human beings.
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