Intrinsic and Extrinsic Motivational

tactics used at Larsen and Toubro

(L&T)

Submitted By-
Name: Raveena Sharma
Roll no: 20MBA019
MBA I Semester
 MOTIVATION
It is a process which begins with a
physical or psychological need or
deficiency which triggers behaviour
or a drive that is aimed at a goal or
an incentive.
 MOTIVATION
Motivation is two dimensional.

MOTIVATION

INTRINSIC MOTIVATION EXTRINSIC MOTIVATION

 INTRINSIC MOTIVATION
Intrinsic motivation arises from self-generated factors that
influence people’s behavior. It is not created by external
incentives. It can take the form of motivation by the work
itself when individuals feel that their work is immportant,
interesting and challenging and provides then with a
reasonable degree of autonomy, opportunites to achieve and
advance, and scope to see and develop their skills and
abilities. Some examples are:
Learning and growth opportunity.
Social contact and status
Curiousity
Respect and Honour.
 EXTRINSIC MOTIVATION
Extrinsic motivation occurs when things are done to or
for people to motivate them.
 It is a behaviour driven by external factors such as
reward or avoidance of negative outcomes. Money is
the most obvious example of an extrinsic motivation.
 It includes rewards, such as incentives, bonuses/perks,
increased pay, praise or promotion; and punishments,
such as disciplinary action, withholding pay, or
criticism. Extrinsic motivators can have an immediate
and powerful effect but wont necessarily last long.
 COMPANY PROFILE
Larsen and Toubro is commonly known as L&T.
An Indian technology, engineering, construction,
manufacturing and financial services conglomerate.
Headquartered in Mumbai, Maharashtra.
Founded by two Danish engineers taking refuge in India.
Addresses critical needs in key sectors – Hydrocarbon,
Infrastructure, Power, Process Industries and Defence.
Serves customers over 30 countries around the world.
 Founders of L&T

Henning Holck- Larsen Soren Kristian Toubro

Human Resource in L&T
The company considers people as the most important asset.
Have teams with diverse profile including people from various
backgrounds,
Prefers people that are motivated themselves and have a strong
sense of commitments with their clients.
The people of the company do not mind going an extra mile for
appreciation.
The company maintains a strong value driven professional work
environment where every employee feels respected and fulfilled.
They also follow a competency development approach which
would allow them to maintain the talent the company has made
the people develop.
INTRINSIC MOTIVATIONAL TACTICS
1.CHALLENGE:
Employees in L&T are really career driven and
committed.
They get involved because they appreciate the
challenges that come with it.
 Managers at L&T use this intrinsic motivation of
searching for a challenge to motivate employees to
succeed.
By working with employees to create goals and
develop a career path, managers satisfy the need for a
challenge while rewarding the employee with access to
greater corporate opportunity.
INTRINSIC MOTIVATIONAL
TACTICS
2. TALENT MANAGEMENT INITIATIVE:
 In an effort to activate the strategic potential of the
employees for tackling the managerial challenges in the
global business arena, L&T has recently introduced a
comprehensive talent management initiative.
 According to the company, a system has been kicked off to
nurture talent that can nourish performers, whose actions
will in turn translate into profitable business models for the
company.
 In this way the talent of the employees are also retained,
rewarded and enhanced and enriched benefitting both the
employees and the company.
INTRINSIC MOTIVATIONAL
TACTICS
3.AUTONOMY:
 Managers at L&T incentivize the employees by
autonomy which makes them seek more
responsibility, increased trust and freedom to
perform work their own way.
 They simply accommodate this by releasing the reins
and cutting back on micromanaging.
 Though this doesn't mean letting go of the control
altogether.
INTRINSIC MOTIVATIONAL
TACTICS
4. COMPETENCE DEVELOPMENT:
L&T continuously invest in deepening and maintaining
the professional skilss of their employees
They encourage individuals to develop their
professional expertise by learning on the job.
Also organises sufficient orientation for new employees.
Focuses on the quality of supervisory work and the
development of supervisory expertise, which in turn
helps in the development of the competence of all the
employees.
INTRINSIC MOTIVATIONAL
TACTICS
5. A SENSE OF MEANINGFULNESS:
Employees want jobs they actually care about them, and
they want to know their effort makes a real difference to
their team, managers and the company as a whole
L&T gives employees a sense of their own importance by
keeping the lines of communication open.
Mangers take time to explain thouroughly to employees
the company’s mission and how their efforts contribute to
the success of the company
This makes the employees valued, which significabtly
contributes to their sense of accomplishmnet.
EXTRINSIC MOTIVATIONAL
TACTICS
L&T uses both monetary as well as not monetary
extrinsic motivational tactics. These include:
1. REMUNERATION:
 L&T rewards their personnel for good job performance.
 The remuneration depends on personal performance
hence it acts as a motivator to work more efficiently and
effectively.
 It aims to encourage good performance and motivate the
employees to engage in long term work to help the
company achieve strategic objectives.
EXTRINSIC MOTIVATIONAL
TACTICS
2. STATUTORY HEALTHCARE:
All the employees in L&T are entitled to statutory
healthcare from the start of their employment
relationship, regardless of its type and duration.
They also provide general practitioner level medical
care for their employees as an employee benefit.
Has established L&T sickness funds with its
employees which suppors L&T’s work ability
management and supplements occupational healthcare.
EXTRINSIC MOTIVATIONAL
TACTICS
3. ANNUAL APPRECIATION DAYS:
L&T organises annual meetings for employees
wherein the employees are rewarded for their work.
This gives them a sense of recognition that helps
works as a great extrinsic motivator.
It makes the employee feel wanted and will also
inspire the rest of the employees to work harder to
achieve the same status.
 EXTRINSIC MOTIVATIONAL
TACTICS
4.WORK COMMUNITY AND ATMOSPHERE:
L&T ensures that the working environment is
continuously monitored and developed in order to suit
to the need of the employees.
Safe, hygienic and pleasant working condition and
atmosphere is always maintained in order to make the
employee willing to work efficiently in the
orgnaisation.
 CONCLUSION
L&T has a positive work culture where employees feel
motivated to work and realise their true potential.
The culture encourages the employees to grow as
individuals and learn to work as an effective team
member.
 It can be concluded that L&T is more focused on
intrinsic motivators rather than extrinsic ones.
Despite the fact that the external rewards are essential to
motivate the company’s employees, L&T does not rely
solely on extrinsic motivation as it is not much
beneficial in the long run.
THANKYO
U