Faculty of Mathematics and Natural Sciences Institute for Work, Social and Organizational Psychology

Entrepreneurial Motivation, Personality

and Competencies
What is motivation?

Motivation is a Latin word, which means to move.

It is the willingness of an individual to respond to

organisational requirements.

Koontz O’Donnell defines it as “ a general term

applying to the entire class of drives, desires,
needs wishes & similar forces that induce an
individual or a group of people at work.”
What is motivation?

It can also be defined as “a willingness to spend

energy to achieve a goal or a reward. It is a
force that activates dormant energies & sets in
motion the action of people. It is the function
that kindles a burning passion for action among
the human beings of an organisation.”

Performance = Ability x Motivation

What is motivation?

It is a process which starts with a physiological or

psychological deficiency or need that activates
or a drive that is aimed at a goal or incentive.

Needs: are created when there is a deprivation or

deficiency. Here, a physiological or psychological
imbalance exists.

Drives or motives: Drives are deficiencies with

direction. They are action oriented & provide a
thrust towards achieving an incentive or goal.
 Meaning of Motivation

 Motivation is the desire to achieve a goal, combined with

the energy to work towards that goal

 Motivation is the basic drive for all of our actions and it

directs our behaviour

 A motive is a need for specific experiences

 Motives are stimulated by the situation

5
Classification of motivation
1. Positive and negative

2. Financial and non – financial

3. Extrinsic and intrinsic:

Extrinsic motivation is available only after

completion of the job. Eg. increase in wages,
rest periods, holidays etc.
Intrinsic motivation is available at the time of
performance of a job. Eg. praise, recognition,
delegation of authority & responsibility.
What are motives?

A motive is an inner state that energizes,

activates, or moves & directs, channels
behaviour towards goals.
Classification of motives

Motives can be classified as:

1. Primary motives
2. General motives
3. Secondary motives
Classification of motives

Primary motives:
Also called physiological / biological / unlearned
motives. 2 criteria for the motive to be primary
are that they should be unlearned &
physiological.

Eg. hunger, thirst, sleep, avoidance of pain, sex &

material concern.

Primary motives tend to reduce the tension or

stimulation.
Classification of motives

General motives:
Are ones which are unlearned but are not
physiologically based.

These needs induce the person to increase the

amount of stimulation.

Eg. curiosity, manipulation, activity & affection

Classification of motives
Secondary motives:
These are the most important w.r.t. the study of
O.B.
A motive must be learned in order to be a
secondary one.

These drives are closely tied to the learning

concepts, such as motives for power,
achievement, affiliation referred to as n Pow, n
Ach, n Aff.
Security & status are also secondary motives.
Classification of motives

Examples of key secondary needs:

 Need for Achievement:
Doing better than competitors
Attaining a difficult goal
Solving a complex problem

Need for power:

Controlling people & activities
Being in a position of authority over others
Defeating an opponent
Classification of motives

Need for affiliation:

Being liked by many people
Working with people who are friendly & co-operative
Participating in pleasant social activities

Need for security:

Having a secure job
Having protection against illness & disability
Avoiding tasks or decision with a risk of failure &
blame
Classification of motives

Need for status:

Working for the right company in the right job
Having a degree from the right university
Having the right privileges
THE NEED FOR ACHIEVEMENT (N-
ACH)
The n-ach person is 'achievement motivated' and
therefore:
 seeks achievement,
 attainment of realistic but challenging goals,
 advancement in the job.
 There is a strong need for feedback as to achievement
and progress, accompained with a need for a sense of
accomplishment.
 THE NEED FOR AFFILIATION
(N-AFFIL)
 The n-affil person is 'affiliation motivated',
 He has a need for friendly relationships and is motivated
towards interaction with other people.
 The affiliation driver produces motivation and need to
be liked and held in popular regard.
 These people are team players.
 THE NEED FOR AUTHORITY AND
POWER (N-POW)
The n-pow person is 'authority motivated'. This
driver produces a need to be
 influential,
 effective
 to make an impact.
 There is a strong need to lead and for their
ideas to prevail.
 There is also motivation and need towards
increasing personal status and prestige.
Class activity: Entrepreneurial motivation

1) What personal factors motivate people to start up a

business?

2) What external situational factors motivate people to start

up a business?

3) What factors (both personal and situational) discourage

people to become entrepreneurs?
 Opportunity vs. Necessity

Opportunity driven entrepreneurs

(future orientation)…

- want to exploit[use] a perceived[real] business opportunity

- strive for independence, self-actualisation, recognition and profit
maximization
- on average they rise higher than necessity driven entrepreneurs

Necessity driven entrepreneurs

(‘away from’ orientation)…
- are pushed into entrepreneurship because all other options for work are
either absent or unsatisfactory
- dissatisfaction with working conditions, contents and time
- pursue entrepreneurship to secure their own existence
Push vs. pull motivational
factors
 1. Estimation of start up chances
in a given environment
2. Perception of own necessary skills and
Motivation abilities Start
up
3. Availability of role models
4. Fear of failure and its personal, social,
and financial consequences
Positive models: Bill Gates – A story of
Success
Example of Entrepreneurial Motivational Traits
Ambition (Healthy ambition)
 Strong desire to attain high results; willingness to make something real
and to meet high standards

Egoistic passion
 acting in one’s own interests, passion in following own goals doesn’t mean
ignoring other people. Scarifying other things in order to follow own
priorities

Energy
 Hardiness, endurance, stamina

Tenacity (firmness)
 being persistent in following ideas in troubles, not giving up
THANK YOU!!!