Motivation Theory in Business Development

This report delves into the significance of motivation theories in the workplace, specifically focusing on Falcon Insurance Company. It discusses various motivation theories, including equity theory, reinforcement theory, and expectancy theory, and their applications in enhancing employee performance and creating a positive work environment. The report emphasizes the need for equitable rewards and recognition to foster motivation among employees, ultimately leading to increased productivity and revenue for the company.

Running head: MOTIVATION THEORY
MOTIVATION THEORY
Name of the Student
Name of the University
Author Note

1MOTIVATION THEORY
Table of Contents
INTRODUCTION......................................................................................................................2
FALCON INSURANCE COMPANY.......................................................................................2
THEORIES OF MOTIVATION................................................................................................3
EQUITY THEORY....................................................................................................................3
FACTORS..................................................................................................................................3
APPLICATION OF THE THEORY.........................................................................................4
REINFORCEMENT THEORY.................................................................................................4
EXPECTANCY THEORY........................................................................................................5
CONCLUSION..........................................................................................................................5
REFERENCES...........................................................................................................................7

2MOTIVATION THEORY
INTRODUCTION
The report majorly focuses on the motivation that should be applied in any workplace
to keep it better. Motivation process is essentially important for any workplace. It enhances
the performance of the employees and it creates a positive environment in the firm. The
company, which is chosen for this particular project, is Falcon Insurance Company that is an
Arabian insurance company. A brief overview of this company has been provided in the
report and the need of motivation has been elaborated in the report. A further analysis of the
theories of motivation has been provided and the situation in which such motivation can be
applied has been discussed in the report.
FALCON INSURANCE COMPANY
Falcon Insurance Company is an insurance company located in Arabia. They provide
insurance facility to every individual in Oman. They offer insurance in all fields like life
insurance, they cover commercial risk plan, they also provide insurance in the field of office
cover solutions; medical; aviation; marine hull and cargo; and motor, travel, and personal
lines insurance, as well as retirement plans. Under the life insurance plans, they have many
schemes. The scheme includes the medical facilities, mortgage protection, and education
insurance. It also includes the retailing schemes and the manufacturing schemes. It provides
insurance facilities in all sectors. It now changed the name to Arabia Falcon Insurance
Company in 2017. Compared to other countries it is new in this segment. It was established
in the year 2005. The promotion is thought to be the biggest means of motivation in the
company. A common situation frequently arises in the company where the employees are not
equally rewarded. It serves as a negative point in the company. In this case the theory of
equity is applied (Cong & Van, 2013).

3MOTIVATION THEORY
THEORIES OF MOTIVATION
Motivation is an essentially important process in all the workplaces. It is of immense
important as it helps in increasing the productivity of the employees. It increases the spirit of
working among the employees. It should be present in all workplaces. There are different
theories of motivation. Motivation serves as a positive role for the betterment of an
organization (Schunk, Meece & Pintrich, 2012).
EQUITY THEORY
According to this theory, the actual reward does not motivate the employees; the
perception of the same motivates the employee. The perception includes the reward
exclusively (Dörnyei & Ushioda, 2013). If both the employees works hard putting same
efforts and they both are not equally awarded, in that case one of them gets demoralized. In
every situation the rewards and awards does not help in serving motivation. In Arabia Falcon
Insurance Company, this situation can arise. The promotions sometimes serve as a motivation
to the employees. The theory includes that the motivation of people comes down to ratios.
The ratio of his hard work is compared to his reward. The comparison is done between the
rewards and the efforts. A person actually compares the ratio of the reward to the effort with
the comparable ratio of reward to effort that the person thinks other persons are getting
(Miner, 2015).
FACTORS
The CEO of the company thinks there are certain, which are important for all the
employees to possess. The factors are the ability to perform, the self-actualization of working.
Insurance is a sector where ability and self- desire to work is extremely important. The
motivation offered to them should be in these fields. Performance is considered the most vital
function of motivation, ability and the environment in which an individual works. This

4MOTIVATION THEORY
reflects in the values of the company and it emphases on the building of team. In this
company, the person must have the self-urge to work. The self-urge of the employees can
motivate him to do the job successfully (Renninger, Hidi & Krapp, 2014).
APPLICATION OF THE THEORY
The theory that has been discussed can be applied in the company. The promotions
play as an effective means of motivation. The best way to apply the theory of motivation is
by offering a chance to the employees to work on interesting projects. The company does not
want to keep stressors and any other thing that does not satisfy the lives of the people. The
theory of rewards and recognitions are designed to motivate the workers. The company must
look into the matters of motivation. According to the equity theory of motivation, the
company must give equal opportunity to all the employees so that there is no chance of
complaining of the employees. The rewards should be equal for all. The case that has been
discussed above provokes the application of the theory of equity motivation (Pakdel, 2013).
REINFORCEMENT THEORY
Apart from the theory of equity, the reinforcement theory is also something that can
be applied in the company. It includes the strengthening of behavior. The company must give
certain extra commission, certain goodies, a bonus should be offered when somebody does a
good job. This is the positive reinforcement, which serves as the powerful motivation for the
employees. The other factor included in the theory is the negative reinforcement. This is a
form of motivation itself as it aims towards strengthening the behavior of the individuals.
Long-term sanctions are removed from the company, which is the process of the motivation.
The extinction is another major aspect of the theory. This concentrates on weakening the
behavior of an individual (Cherry, 2012). This is basically the process of excluding a person
from getting goodies while he performed. While a person does extra effort but he gets no

5MOTIVATION THEORY
acknowledgement, in return of that he stops doing the work. In this case, the individual must
be given thanks so that he gets the motivation of performing the job effectively. The
individual must be encouraged for doing the job and he must be motivated to do his work.
The acknowledgement serves as a great motivation for an individual. It is followed by
punishment. Punishment is the final aspect of the theory. It implies at weakening a behavior.
The punishment is the consequence of a behavior. This includes the process of receiving a
punishment because of a behavior. The undesirable behavior leads to the punishment
procedure. Thus from this theory this can be concluded that the positive reinforcement and
the negative reinforcements are the strengthen behaviors. On the other hand, the extinction
and the punishment are weakening behavior (Elliot & Dweck, 2013).
EXPECTANCY THEORY
Considering the above situation, the final theory that can be applied is the expectancy
theory. This theory is designed for bringing together many aspects of the theories that has
been discussed earlier. It is a combination of the above-discussed theories. The expectancy is
the perception of the person that the effort is the sole thing that affects the performance. The
theory includes the motivation, the expectancy, the instrumentality and the valence. The
motivation, reward and the action is correlated to each other. If the reward, which is the
process of motivation, is small, the action is also small and vice versa. This is not going to
change even if the expectancy and the instrumentality are high (Piaget, Inhelder & Piaget,
2013).
CONCLUSION
Therefore, from the above analysis this can be concluded by mentioning that the
theories of motivation are necessary in all workplace and in all situations. The factors are
correlated to the theory and the concept of motivation. The above mentioned theories should

6MOTIVATION THEORY
be applied in the Arabian Falcon Insurance Company to increase the productivity of the
employees which indirectly will lead to the increase in the revenue of the company. Apart
from the mentioned theory, no other theory is needed in this particular case.

7MOTIVATION THEORY
REFERENCES
Cherry, K. (2012). Theories of motivation. A closer look at some important theories.
Cong, N. N., & Van, D. N. (2013). Effects of motivation and job satisfaction on employees'
performance at Petrovietnam Nghe An Construction Joints Stock Corporation
(PVNC). International Journal of Business and Social Science, 4(6).
Dörnyei, Z., & Ushioda, E. (2013). Teaching and researching: Motivation. Routledge.
Elliot, A. J., & Dweck, C. S. (Eds.). (2013). Handbook of competence and motivation.
Guilford Publications.
Miner, J. B. (2015). Organizational behavior 1: Essential theories of motivation and
leadership. Routledge.
Pakdel, B. (2013). The historical context of motivation and analysis theories individual
motivation. International Journal of Humanities and Social Science, 3(18), 240-247.
Piaget, J., Inhelder, B., & Piaget, J. (2013). The growth of logical thinking from childhood to
adolescence: An essay on the construction of formal operational structures (Vol. 84).
Renninger, A., Hidi, S., & Krapp, A. (Eds.). (2014). The role of interest in learning and
development. Psychology Press.
Schunk, D. H., Meece, J. R., & Pintrich, P. R. (2012). Motivation in education: Theory,
research, and applications. Pearson Higher Ed.
Zimbardo, P. G., Johnson, R. L., Lee, R., & McC Ann, V. A. (2012). Psychology. Pearson,