The challenge is that it is extremely difficult for modern leader-managers to motivate and inspire employees, analyze their needs and meet these needs. Lack of leadership and management skills may lead to a failure, low productivity and poor organizational performance. In modern environment, the main challenge is that leader-manager deals with culturally and economically diverse workforce, so he/she should be well aware of motivational theories and their practical application. Combs (2002) pays a special attention to leadership challenges and motivational problems typical for modern organizations. Motivation is one of the main factors which influence productivity and morale, feelings and human relations in the workplace. There are different theories of motivation which try to explain human needs and intentions, intrinsic and extrinsic drivers. People with a high degree of achievement motivation are more persistent, realistic, and action-minded than people with other kinds of motivational patterns.
Silva (2005), Schultz (2003) and Meuse and Claire (2007) show that motivation has changed influenced by external and internal stimuli.This does not necessarily make them more productive; that seems to depend on whether the task requires some degree of personal initiative or inventiveness. If it does, the achievement-motivated person is very likely to leave his competitors far behind. A great deal can be learned from the cultural environment if attention is paid to complaints, compliments, surveys, and other opinions of employees and patterns of service demand. Finally, among the factors to be considered as part of the internal organizational environment are the structure of an organization, its history, its distinctive strengths and weaknesses, changes in its values, and its culture.
Kiel (1999) and Barak (2000) examine and analyze Mallow's hierarchy of needs and motivation principles. Once basic needs for food, clothing, and shelter are satisfied, he wants friends and to get folksy and group. Once these needs for belonging are satisfied, he wants recognition and respect from his fellowmen and he wants to achieve independence and competence for himself. One approach, widely known by managers, is set out by Abraham H. Maslow in his book "Motivation and Personality". Maslow's theory of motivation claims that human motives develop in sequence according to five levels of needs. These needs are: psychological (hunger, thirst), safety (protection), social (be accepted, belong to a certain group), esteem (self-confidence, achievements, respect, status, recognition), and self-actualization (realizing one's potential for continued self-development). This theory show that needs follow in sequence and when one need is satisfied it decreases in strength and the higher need then dominates behavior. This leads to the statement that a satisfied need is not a motivator. There is a doubt whether this really applies in practice to the higher needs as it is likely that self-esteem requires continues stimulation and renewal. Few attempts have been made to test the validity of Maslow's ideas. A big problem is that Bill does not satisfy higher-order needs through their jobs or occupations, and this cannot really be tested. Another point is that he viewed satisfaction as a major motivator and this is not directly related to