Abstract
This research paper has been written to analyze 'two factor' theory of motivation’ developed by Frederick Herzberg, in context of Business Process Outsourcing sector in India. There has been huge attrition and employee movement in BPO and IT companies in India. The authors have tried to analyze the psychological factors associated with employees, which impact productivity as well as performance of employees in an organisation. During and immediately after the Second World War American management commentators were questioning the relationship between job and organization design and productivity. Perhaps the major contributor to this debate was Frederick Herzberg. During the 1950's and 1960's Herzberg developed his 'two factor' theory of motivation. Authors have put their effort to statistically analyze these factors on the basis questionnaires answered by a large sample of BPO employees from top companies of India.
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