Internal environment of the organization is composed of the elements within the boundaries of the organization. Internal Environment consists of: 1. Employees 2. Management 3. Culture
Employees
Employees are the people working within the organization.
Management
Management includes CEO, Board of Directors and all the other managers. These are the people who manage employees and their work. They are capable of motivating or demotivating the employees with their behavior and rules.
Culture
Culture are the shared principles, values,traditions and ways of doing things which have an influence on the employees.
There are two types of culture
Invisible Culture
Invisible culture is deeply embedded in the individuals such as norms, morals, motives, etc. It's a hidden culture.
Visible Culture
Visible culture is the one that you can see and understand easily in an organization. It includes dress, eating habits, architecture etc. of the organization.
Internal Environment in English:
A single person economy is the simplest economy. In a single person economy there's no differentiation between individual and society but it doesn't allow you to skip the complex economic questions. The three basic Questions have to be answered in every economy regardless of its size, what, how and for whom to produce.
Let's imagine if only one person is living in an island now he is having lots of resources of the island but he has limited time and skills. Now those scarcities makes him choose among his needs or wants. He has to choose what he would do at a time while trading off his other choices (which is an opportunity cost). Hence, this individual has to list his needs/wants in a list of priorities.
Scarcity and Choice in a Two or More Person Economy
This Economy has to answer the three basic questions and along with that it has to solve the distribution, cooperation and specialization questions. Two or more people have to cooperate among themselves for making their lives better and fulfilling all their needs.
Scarcity, Choice and Opportunity Cost in Urdu/Hindi:
This theory of motivation was proposed by David McClelland and his associates. They called this theory "Three Needs theory". In this theory he is explaining the process of motivation by breaking down what and how needs are and how can they be approached.
It is a very simple and straightforward theory. He proposed that there are three categories of needs: achievement, affection and power. It was noted in this theory that regardless of a person's sex, age, race or culture, all of us are possessing one of these needs and are driven by it.
Need for Achievement
As the name suggests, this need is the urge to achieve something in your job or life. If you are a teacher you want to teach your pupil in the best possible way and be recognized, if you are a gamer you want to compete in most games, complete tough levels and be recognized, or if you are a lawyer you will have the need to win most cases and be recognized.
It is the need which pushes you towards work and to struggle for the objectives that you want to achieve.
If you are motivated by needs for achievement then you will be having a strong desire of setting up difficult objectives and accomplishing them. You prefer to work in a result-oriented work environment and you will appreciate feedback given on your work. These people wouldn't be opting for high -risk or low-risk situations. Along with that you will also prefer working alone.
Need for Affiliation
Need for Affiliation is the urge of an individual to create interpersonal relations and social relationships with other people. They look for opportunities to work in groups by making friendly and long lasting relations. They have the urge to be liked by others. They are likely to avoid high-risk situations.
Need for Power
It is the urge of an individual to have authority and control over others. These people aspire status and recognition. They love winning and would work really hard for that.
This theory is also called Acquired needs as McClelland stated that the particular needs of people are acquired and shaped over time through his experiences in life.
McClelland's Theory of Motivation | McClelland's Theory of Needs | Three Needs Theory in English:
McClelland's Theory of Motivation | McClelland's Theory of Needs | Three Needs Theory in Urd/Hindi:
Today, we are studying Herzberg's Two-factor Theory aka Two Factor Theory aka Hygiene factors theory.
Herzberg’s Two-factor theory
This theory was presented by Fredrick Herzberg in 1959. Fredrick Herzberg was a psychologist who specialized in business management. He was interested in knowing when people felt exceptionally good or bad about their jobs or you can say when people were satisfied or dissatisfied with their jobs.
He interviewed some people and found out that people who were motivated and satisfied with their jobs referred to intrinsic factors (which are factors related to the job itself) and the people who were dissatisfied or demotivated referred to the extrinsic factors (factors related to the job context). So, the factors for motivation and demotivation of an employee weren’t the same.
Herzberg had to put these factors in categories and make sense of them which is why he named intrinsic factors (factors which motivated employees) as motivators and extrinsic factors (factors which were responsible for demotivation of people) as Hygiene factors. Here is the visual picture of these factors:
Now here's the thing, yellow triangle that you see behind the factors are telling you the intensity of satisfaction or dissatisfaction of an employee. The employee starts from being extremely dissatisfied when they don't have any hygiene factors or motivators and they are dissatisfied than gradually they are given their hygiene factors and once their requirements are met an employee moves towards the neutralization. This employee isn't dissatisfied nor satisfied he is in the middle. Once reaching this stage you start giving these employees Motivators that are going to motivate them and make them reach the extremely satisfying stage. In addition to that he also stated that the opposite of satisfaction is not dissatisfaction in fact it is no satisfaction and in the same way dissatisfaction’s opposite is no dissatisfaction.
Real-Life Example:
You (employee) were hungry you needed food, your waiter (supervisor) served you a sandwich. You ate this sandwich which is a very average sandwich but in this state of hunger, you liked it and ate it. You are now in the neutral stage and when you are given a desert (motivator), which was just a 10/10 you fell in love with the chef who was cooking your food and you want to come to this place every day (company).
How to motivate Employees?
First, you have to meet the hygiene factors and then you give the employees motivators for motivating them.
Videos: Herzberg's Two Factor Theory in Urdu or Hindi:
Do you have limited resources? Yes, everyone has limited resources.
Are you still capable of fulfilling your needs and wants through that limited resources? In most cases Yes.
This procedure of you using your resources for fulfilling your needs and wants is what we study in Economics.
Definition of Economics:
It is a social science/behavioral science concerned with the distribution, production and consumption of goods and service. In economics we study how individuals and societies are using the available scarce resources provided by nature and previous generations.
In simple words, economics is the study of how society utilizes (uses) its limited resources.
