Motivation

The reason why employees want to work hard and work effectively for the business

Advantages of well-motivated work force

1.better productivity
2.lower levels of absenteeism
3.lower levels of staff turnover
4.improve industrial relations with trade union
5.improve product quality

F.W. Taylor's motivation theory

All the workers are motivated by personal gain
If they are paid more, they will work more effectively

Maslow's motivation theory

1.physiological needs
2.safety/security needs
3.social needs
4.esteem needs
5.self-actualisation

Herzberg's motivation theory

Humans have 2 sets of needs:
1.basic animal needs ('Hygiene' factors)
2.a human being to be able to grow psychologically ('Motivators')

Factors of motivate employees

1.financial rewards
2.non-financial rewards
3.introducing ways to give job satisfaction

Wage
Payment for work, usually paid weekly
Time rate
Payment by the hour (payment for a period of time)
Piece rate
Paid depending on the quantity of products made (usually bonus)
Salary
Payment for work, usually paid monthly
Commission
Payment relating to the number of sales made
Profit sharing
A system whereby a proportion of the company's profits is paid out to employees
Bonus
An additional amount of payment above basic pay as a reward for good work
Performance related pay
Payment related to the effectiveness of the employee where their output can easily be
measured
Share ownership
Where shares in the company are given to employees so that they become part owners in the
company
Appraisal
A method of assessing the effectiveness of an employee
Fringe benefits
Non-financial rewards given to employees
Job satisfaction
The enjoyment derived from feeling that you have done a good job
Job rotation
Involves workers swapping round and doing each specific task for only a limited time and
then changing round again
Job enlargement
Extra tasks of a similar level of work are added to a worker's job description
Job enrichment
Looking at jobs and adding tasks that require more skill and/or responsibility

Why Do People Work ?

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survive, profit, achieve goal

What is motivation ?

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willingness, satisfaction, improve, do better

What is the importance of motivation ?

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satisfaction, production, quality

Fill in the blanks

MASLOW

Abraham Maslow (1908 – 1970) introduced the Neo-Human Relations School in the 1950's,
which focused on the ____________needs of employees. Maslow put forward a theory
that there are __________ levels of human needs which employees need to have fulfilled at
work.

All of the needs are structured into a __________ and only once a lower level of need has
been fully met, would a worker be motivated by the opportunity of having the next need up
in the hierarchy satisfied. For example a person who is dying of hunger will be motivated to
achieve a basic wage in order to buy food before worrying about having a secure job contract
or the respect of others.

A business should therefore offer different ____________to workers in order to help them
fulfill each need in turn and progress up the hierarchy

Managers should also recognise that workers are not all motivated in the same way and do
not all move up the hierarchy at the same pace. They may therefore have to offer a slightly
__________ set of incentives from worker to worker.

psychological five hierarchy incentives different

Draw and label The Maslow Hierarchy

Taylor

Frederick Winslow Taylor (1856 – 1917) put forward the idea that workers are motivated
mainly by ____________. The theory was also called
___________________________

His Theory of Scientific Management argued the following:

Workers do not naturally enjoy work and so need close supervision and control. Therefore
managers should break down production into a series of small tasks

Workers should then be given appropriate training and tools so they can work as efficiently
as possible on one set task. Workers are then paid according to the number of items they
produce in a set period of time- piece-rate pay.As a result workers are encouraged to work
hard and maximise their productivity.

It was unpopular because

_______________________________________________________________
___________________

pay, performance related pay

Herzberg

Frederick Herzberg (1923 believed in a _______factor theory of motivation.

He argued that there were certain factors that a business could introduce that would directly
motivate employees to work harder ____________ . Some Examples include
1.

3.

However there were also factors that would de-motivate an employee if not present but
would not in themselves actually motivate employees to work harder ______________

Some examples include

1.

3.

two, motivators, hygiene

Herzberg believed that businesses should motivate employees by adopting a democratic
approach to management and by improving the nature and content of the actual job through
certain methods. Some of the methods managers could use to achieve this are:

Job enlargement – workers being given a greater variety of tasks to perform (not
necessarily more challenging) which should make the work more interesting.

Job enrichment - involves workers being given a wider range of more complex, interesting
and challenging tasks surrounding a complete unit of work. This should give a greater sense
of achievement.

Empowerment means delegating more power to employees to make their own decisions
over areas of their working life.
 Mcgregor

Douglas McGregor found out that there are broadly ___________ types of managers. One
who believes in Theory __________ and the other who believes in Theory
____________

Theory x (_______________ style)

 The average person dislikes work and will avoid it he/she can.
 Therefore most people must be forced with the threat of punishment to work towards
organisational objectives.
 The average person prefers to be directed; to avoid responsibility; is relatively unambitious,
and wants security above all else.

Theory y (_______________ style)

 Effort in work is as natural as work and play.

 People will apply self-control and self-direction in the pursuit of organisational objectives,
without external control or the threat of punishment.
 Commitment to objectives is a function of rewards associated with their achievement.
 People usually accept and often seek responsibility.
 The capacity to use a high degree of imagination, ingenuity and creativity in solving
organisational problems is widely, not narrowly, distributed in the population.
 In industry the intellectual potential of the average person is only partly utilised.

two, X, Y, 'authoritarian management, 'participative management

 How can managers motivate their staff to do better

Managers can influence employee motivation in a variety of ways:

 Monetary factors: some staff work harder if offered higher pay.
 Non monetary factors: other staff respond to incentives that have nothing to do with pay,
eg improved working conditions or the chance to win promotion.

Pay Methods

 Managers can motivate staff by paying a fair wage. Payment methods include:
 Time rate: staff are paid for the number of hours worked.
 Overtime: staff are paid extra for working beyond normal hours.
 Piece rate: staff are paid for the number of items produced.
 Commission: staff are paid for the number of items they sell.
 Performance related pay: staff get a bonus for meeting a target set by their
manager.
 Profit sharing: staff receive a part of any profits made by the business.
 Salary: staff are paid monthly no matter how many hours they work.
 Fringe benefits: are payments in kind, eg a company car or staff discounts.
Non-pay methods of motivation
Managers can motivate staff using factors other than pay through:

 Job rotation: staff are switched between different tasks to reduce monotony.
 Job enlargement: staff are given more tasks to do of similar difficulty.
 Job enrichment: staff are given more interesting and challenging tasks.
 Empowerment: staff are given the authority to make decisions about how they do their
job.
 Putting groups of workers in a team who are responsible together for completing a
certain task.

Answer the following

Which of the following describes the mood of staff?

Staff training

Staff motivation

Staff appraisal

2.
How is a worker on commission paid?

According to how much time is worked

According to the level of output

According to how many items are sold

3.
John is paid piece rates. What does this mean?

He is paid according to how much time is worked

He is paid according to how much output is made

He is paid according to how many items are sold

4.
Dipu is paid by the hour. What does his take home pay depend on?

How much time he has worked

How much output he has made

How many items he has sold

5.
Dipu earns £8 an hour and usually works 8 hour shifts four days a week. What is his typical
gross weekly wage?

£448

£320

£256

6.
Which of the following is an example of a fringe benefit?

A salary

Commission

A company car

7.
What is switching staff between different tasks to reduce monotony called?

Job rotation

Job enlargement

Job enrichment

8.
What does Taylorism claim workers are motivated by?

Pay

Being given authority

Enjoying their work

9.
What can affect staff motivation?

Work environment

Managers

Both managers and work environment