Motivation
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What is motivation?
Motivation is concerned with the desire to
do something or achieve a particular
result.
Motivated employees result in:
 Greater productivity
 Better quality products or service
 Lower staff turnover
 Reduced absenteeism
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Monetary methods of motivation
Fringe
benefits
Examples include company cars and discount
vouchers. May not encourage greater productivity
but often build company loyalty.
Bonuses
A payment usually related to the achievement of a
target. Usually easier to apply to sales or production
than the provision of a service.
Profit
share
Employees are encouraged to work hard to ensure
that the business is profitable, however, it is usually
spread evenly between both hardworking and less
hardworking staff.
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Monetary methods of motivation
Commission
Payments are made in relation to the number or
value of sales made. Encourages increased sales
but may lead to heavy handed selling techniques.
Piece rate
Payments are made per item produced. Encourages
productivity but sometimes at the expense of
quality.
Overtime
Additional payment made for extra hours worked.
Can provide greater flexibility to the workforce but
may result in low productivity during normal
working hours so employees can access overtime
payments.
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Non-monetary methods of
motivation
Job rotation
Employees move between different jobs e.g. on a
production line. Results in flexible, multi-skilled
staff but ultimately workers may just be moving
from one boring job to another.
Job
enlargement
Workers are given a wider variety of different
tasks to carry out although there is no increase in
the level of responsibility. This is sometimes
called horizontal loading.
Job
enrichment
Giving employees the chance to fully utilise their
abilities through, for example, providing a range
of challenges, training workers and allowing them
to demonstrate their skills.
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Non-monetary methods of
motivation
Empowerment
Allowing workers greater autonomy. They have
greater freedom and power to control their own
working lives.
Team-working
Involves organising workers into groups, setting
team goals and awarding team rewards for
achieving targets. Team-working fits with Mayo’s
findings.
Participation
Employees participate in organisational decision
making through such things as quality circles and
works councils.
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Motivational theorists
It is useful to know 2 or 3 motivational
theories from the following list:
Maslow’s hierarchy of needs
 Taylor’s theory of scientific management
 Mayo’s theory of human relations
 Herzberg’s two-factor theory

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Maslow
Maslow’s Hierarchy of Needs
• The hierarchy starts with our
basic physiological needs for
survival.
Self actualisation •As each need is met, the next
need up the hierarchy becomes
the motivator.
Self esteem
•Workplaces can meet these
needs e.g. pay provides the
Social
means to satisfy basic needs
whereas training can provide
Safety
for self-actualisation.
•One criticism of Maslow’s
Physiological
hierarchy is that workers may
not seek to have all their needs
met in the workplace.
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Mayo
Mayo’s Theory of Human Relations
 Mayo’s experiments showed that:
◦ Teamwork is an important motivator.
◦ Managers should take an interest in
their workers
 He suggested that physical conditions
and pay matter less than social
interaction when motivating employees
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Herzberg
‘Motivators’ can
motivate but a
lack of
motivators does
not cause
dissatisfaction
‘Hygiene
factors’ can
cause
dissatisfaction
but cannot
motivate
Herzberg’s Two-factor Theory
•Motivators are factors that can
motivate workers by providing
job satisfaction.
•Motivators are concerned with
the job itself and include
achievement, recognition and
the responsibility
•Hygiene factors are external to
the job itself and can only cause
dissatisfaction if not fulfilled.
•Hygiene factors include
company policy, supervision,
pay and working conditions.
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Taylor
Taylor’s Theory of Scientific
Management
 Taylor suggested that workers are only
motivated by pay.
 Scientific management also states that
the most efficient way to carry out a
task should be identified and then
carried out – giving rise to production
assembly lines.
 Taylor supported close supervision and
pay schemes that reward those that
produce more.
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Motivation in context
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Importance of motivation
Why is a motivated workforce important for
organisations like Tesco?
Use the Tesco case study to help you
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Taylor and Tesco
Taylor suggested that workers are only
motivated by money. Which of the
following, provided by Tesco, are
considered to be financial rewards?
 Christmas vouchers
 Training
 Pension scheme
 Free shares after one year’s service
 Positive feedback
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Maslow and Tesco
Use the Tesco case study to give examples
of how Tesco can help fulfil the different
needs in Maslow’s hierarchy.
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Herzberg and Tesco
Use the Tesco case study to find examples
of Herzberg’s ‘motivators’ that are
provided by the organisation.
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Useful resources
Motivation lesson suggestions and
activities (The Times 100)
 Tesco case study (The Times 100)
 Tesco website

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