Motivation

The reason why people want to work. IncentivesEncouragementEnthusiasticDrive

Content• Motivation theory:

– Taylor– Maslow– Herzberg– McGregor’s Theory X & Theory Y– Mayo

• Non monetary motivation:– Job enrichment– Job enlargement– Empowerment– Team Working

• Financial Motivation:– Piecework– Salaries and wages– Fringe benefits– Performance related pay– Profit share– Share ownership

• Leadership and management styles:– Authoritarian – Paternalistic– Democratic

F.W. Taylor• Taylor did lots of work in factories and believed that

workers should be told how to do a job quickly• He believed they should be closely monitored & told what to

do• He devised a PIECE RATE system• He believed workers could only be motivated by money

Maslow’s theory

Maslow argued that workers have a hierarchy of needs.

The first three are lower-order needs.

The top two are higher-order needs.

Herzberg• According to Herzberg motivating factors are split into two groups:

• 1. Hygiene factors- salary and security. Improving these lowers dissatisfaction but doesn't improve motivation or satisfaction

• 2. Motivators- recognition, responsibility, work itself, achievement, advancement - these lead to increased motivation

HerzbergHerzberg’s 2-factor theory (hygiene/motivation)

The absence of hygiene factors causes de-motivation, whereas the presence of hygiene factors does not cause motivation.

The absence of motivators does not cause de-motivation, whereas the presence causes motivation.

Hygiene Factors Motivators Factors

Mayo

• Mayo looked at motivation in the Hawthorne laboratories in the USA

• Found that just by being studied the subjects levels of motivation increased

• Highlighted the importance of team work and group dynamics to motivation

McGregor

X Y

McGregor’s Theory

Theory X ManagersBelieve that workers• Don’t like working• Do as little work as

possible• Can’t be trusted• Only interested in pay• Must be told what to do

Theory Y Managers

He believed there were 2 types of managers that affected motivation

Believe that workersEnjoy their workWork hard to gain rewardsCan be trustedAre motivated by factors

other than payCan work independently

What have we learnt?

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Pair work• Financial motivators:

– Wages – Salaries– Piece rate– Commission– Profit sharing– Bonus– Performance related

pay

• Non-Financial motivators:– Fringe benefits– Job satisfaction– Job rotation– Job enlargement– Job enrichment

Non Monetary Forms of Motivation- Job Enrichment

• When employees jobs are redesigned to provide them with more challenging and complex tasks

• Increase in the range of tasks an individual does• Workers have more responsibility for their own

management • Workers are able to identify and solve any problems

that they encounter• Gives workers training to improve skills so can meet

increased job demands

Job Enlargement

• Giving employees more duties of a similar level of difficulty

• Employees have more jobs to do at the same level • Workers carry out a range of duties rather than a

single duty which helps to increase motivation

Employee Empowerment

• Empowerment – the process of giving workers a greater control over their work

• It can make work more interesting as suits individual needs

• Needs training and time to be effective

Team working

• Where organisations break down production into large units where each unit is responsible for a particular area

• Fulfils individuals social needs which helps to increase motivation – Teams can include:

• Production teams• Quality circle teams• Management teams

Monetary Forms of Motivation – Piecework

• Employees paid due to quantity produced• Now with minimum wage legislation employers need to

ensure piece workers hit the threshold

Salaries and Wages• Salaries – annual and paid monthly• If you get a salary work a set number of hours as set out in

contract• Wages – paid weekly• Have to be at work for a set time, paid overtime for any

extra hours• Salaries and wages are often seen as the key motivator for

an individual to work

Fringe benefits• Rewards received by employees in addition to their wages

or salary• Often classified as “perks” of the job • Examples:

– Company car– Lunch – Private health care– Pensions

• These can increase employee loyalty

Performance Related Pay (PRP)

• Some of an employees pay is linked to the achievement of targets at work

• Targets may be sales targets or performance appraisal

Criticisms of PRP

• Many employees see this as unfair as can be based on an appraisal interview

• Lots of businesses don’t put sufficient money aside so employees only get a small bonus

Developments in PRP

• Increasingly firms are using a system called Variable pay• This a flexible type of PRP which offers employees a highly

individual pay system related to their performance• Higher rewards for star performers

Profit Sharing

• Employees receive part of the business profits• Profits can be paid in cash / shares• This helps motivate the workers to earn the

company profit as they see the financial incentive for themselves – this can raise efficiency and productivity in the organisation

Share Ownership

• These can be either:– Allowing employees opportunity to purchase shares

after saving for a period of time– Share options – mangers have the opportunity to buy

company shares on an agreed date in future at current rate

• Having share options increases the feeling of ownership for an employee acting as an incentive for them to work harder

Leadership

• Influencing others to achieve certain aims or objectives. Effective leadership skills can help a manager carry out their duties

Leadership Styles - Authoritarian

• Senior managers take decisions with little involvement of juniors

• Sets objectives• Allocates tasks• Leader retains control throughout• Communication goes down from leader to

consumer

Paternalistic

• Dictatorial, but decisions are taken in best interests of employees

• Explains decisions• Ensures workers social / leisure needs met• Communication mainly downward but some

feedback

Democratic Leadership

• Running a business based on majority decisions• Encourages employees to take part in decision

making• Uses delegation • Extensive two way communication

Summary • Taylor says that people are motivated by money – scientific management • Maslow developed hierarchy of needs that need to be fulfilled• Herzberg – 2 factor theory hygiene factors and motivators• Mayo – non monetary motivation

• Non monetary motivation includes job enrichment, job enlargement, empowerment and team working

• People are also motivated by money, this can be the form of salaries / wages, performance related or can take the form of fringe benefits, profit share and shares

• An Authoritarian manager makes all decisions • A Paternalistic manager makes decisions with the agreement of workers• A Democratic manager runs a business on majority decisions• McGregor’s Theory X and Theory Y – Theory X = monetary motivation, Theory Y =

non monetary motivation

What have we learnt?

Discuss with a partner before you

share it with the class