Motivation

Content
• Motivation theory:
– Taylor
– Maslow
– Herzberg
– 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
– McGregor’s Theory X and Theory Y
 Motivation
• Motivation describes the factors within
individuals that arouse, maintain and
channel behaviour towards a goal.
 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
• Maslow believed human needs are split into five types - a hierarchy of needs with
the highest level needs at the top. Individuals need to meet basic needs before
moving up the hierarchy
 Maslow

1. Physiological- wage, salaries and working condition

2. Safety- security (safe job), other benefits eg sick
pay and safe working conditions
3. Social- team working and other functions that aim
at building a bond within the workforce
4. Esteem- positive feedback and chances for promot
5. Self- actualization- creating challenges and tasks
that are stimulating
 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
• In reality most managers are trying to maximize the
beneficial aspects and minimize those facts which de-
motivate workers.
 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
 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
 McGregor’s Theory
He believed there were 2 types of managers
that affected motivation

Theory X Managers Theory Y Managers

Believe that workers Believe that workers
• Don’t like working Enjoy their work
Work hard to gain rewards
• Do as little work as
Can be trusted
possible
Are motivated by factors
• Can’t be trusted
other than pay
• Only interested in pay Can work independently
• Must be told what to do
 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