MOTIVATION
INTRODUCING THE TOPIC
PAGE 154
 Read
the case study we will discuss.
MOTIVATION
In the current business climate keeping staff
motivated and on task can be very difficult as
concerns about the economy and rising costs can
lead to an unmotivated workforce it is important
for managers to motivate there staff to ensure
they work at optimal efficiency.
 If workers are motivated there are many spinoff
benefits for an organisation these include. High
profile, low staff turnover and absenteeism, high
productivity, creativity and suggestions for
improvement.

MOTIVATIONAL THEORIES


1.
2.
3.
4.
5.
6.
7.
Taylor Scientific Management – Taylors idea was to find
the quickest most efficient way to get a job done using
money as the main motivator. I.e. the more work you did
the more you got paid.
Taylors 7 step process to improving output per worker.
Select workers to perform the task
Observe how they do the task
Record time take to complete each task
Identify the quickest method
Train each worker in that method
Supervise workers to ensure the best way is being done and
to the time specified.
Pay workers based on there results (economic man)
TAYLOR
 This
theory as stated was all based on
money as a motivated the more output
achieved the greater monetary gain for the
employee, therefore the business got a fair
days work and the employee a fair days
pay.
 Taylors motivational theory revolutionised
the manufacturing industry and most mass
produced products were built around this
method.
 Does the 7 Step process work today?
MAYO – HUMAN RELATIONS
THEORIES
Mayo’s theory was originally based on the
assumption that working conditions had a
significant impact on productivity.
 The results surprised Elton as the lighting and
other conditions were changed and both the
control group and the other workers increased
productivity.
 Mayo found that working conditions in themselves
were not that important and other factors needed
to be investigated such as changes to rest
periods, payment systems, assembly bench
layout and canteen food. (before each change
they discussed it with the workers.)

THE HAWTHORNE EFFECT
Mayo's results indicated
 Changes in working conditions and financial
rewards have little or no effect on productivity.
 When management consult with workers and take
an interest motivation improves.
 Working in teams improves productivity.
 When workers have some control over there work
lives there is a positive motivational effect.
 Groups can establish there own targets or norms.
Is this approach relevant today?
MASLOW – HIERARCHY OF
NEEDS
MASLOW
 When
a employee satisfies one level of needs
they are no longer motivated by it i.e. if they
have all of there physical needs then more
money want motivate, you can drop a level if
one of your needs is threatened i.e. job
security during the recession.
 There are limitations to this approach how do
you identify what level an employee is on?
Money plays a role in different levels, and self
actualisation can only be achieved if you are
continually challenged at work.
ACTIVITY 9.1 PAGE 160
 Answer
questions 1 and 2.
HERZBERG – TWO FACTOR
THEORY
His research was based on finding out what led
employees to having good feelings about there
jobs and those factors that led them to be
dissatisfied.
 He noted the following five factors determined job
satisfaction.

Job Satisfaction (Motivators)
Job Dissatisfaction (Hygiene)
Achievement
Company Policy and
administration
Recognition for achievement
Supervision (Your Boss)
Your Job
Salary
Responsibility
Relationships (With Colleagues)
Advancement
Working Conditions
HERZBERG’S THEORY
Money (or more off it) does not motivate people
to do the work it encourages them to do it . (not
necessarily well) Employees need job enrichment
to be prepared and willing to always give there
best.
 Job Enrichment – Requires more from a job,
rather then doing the same repetitive job
employees should be in charge of a wide range of
activities to keep them motivated. Employees also
require constant feedback (pat on the back) this
often makes employees work harder , and
ultimately make the environment and job
enjoyable.

MCCLELLAND
– MOTIVATIONAL NEEDS THEORY
 McClelland
argued that there were
three types of motivational need in all
workers and managers to varying
degrees.
 Achievement Motivation –
Someone who is motivated by
achievement, they want to achieve
goals and advance there career
quickly. Often if they are managers
they can struggle to motivate people
who don't have the same drive.
MCCLELLAND
– MOTIVATIONAL NEEDS THEORY
Authority Motivation – This person likes to be
in charge and have control of the business. They
need to be careful not to offend employees or
disregard there part in the business. Often when
these people have the power they meet the self
actualisation need on Maslow's hierarchy.
 Affiliation Motivation – These people want to fit
in are motivated by team work and a friendly
work enviroment, every business needs these
people as they are often the glue that holds the
company together.

VROOM – EXPECTANCY
THEORY
Vroom believed that people behave in ways
that will help them reach a favourable outcome.
i.e. Marketing professional might redesign
packaging to have there mark on the business.
(self actualisation makes them feel good)
 Vroom's Three Beliefs
- Valance – the depth or want for a reward.
- Expectancy – the belief that putting in the
work will result in a reward.
- Instrumentality – the confidence that they
will get the reward they desire.

MOTIVATIONAL THEORIES

There will always be much debate about what is
the most appropriate way to motivate staff, and
whose job is it to motivate staff the manager, the
work itself or the strive to better oneself. At the
end of the day we are all motivated by different
factors and different workplaces will require
different styles of motivation to ensure a cohesive
environment.
Note: When answering a motivation question in a exam
don't just list the findings of the motivational theorist but
apply them to the business context and provide examples.
ACTIVITY 9.3 PAGE 163
 Complete
question 1 and 2. What people
want from work.
FINANCIAL REWARDS MOTIVATION
 The
most common payment systems are.
- Hourly wage rate – retail, factory
workers etc
- Piece rate – the more you produce the
more money you make.
- Salary – fixed yearly payment.
- Commission – a % of sales made.
What would be the advantages and disadvantages of
the above payment systems?
FINANCIAL REWARDS
Performance related pay – this is usually in the
form of a bonus paid above your salary for
performing above expectations. This requires
targets to be set and constant monitoring of
employees progress to wards meeting these
goals.
 All businesses make different decisions around
bonus payments and often will base it on overall
company results. Will this motivate all staff or
does it become an expectation? What if the
company doesn't meet targets, no one gets a
bonus whose to blame?

FINANCIAL REWARDS
Profit Sharing – The business owners share
some of the profits with the employees, the idea
is that it will motivate staff to work harder to
achieve more in order to get a higher share of the
profits.
 Fringe Benefits – These are non cash but are of
significant value to the employee i.e. Company
Car, product discounts, health schemes, free
lunches. These will often provided to higher level
staff as motivational tools, but also the lower
level staff may be motivated to get there and will
work harder to get these benefits that can save
them significant amounts of money.

NON FINANCIAL METHODS
OF MOTIVATION

While Financial reward can motivate the ability to
change jobs or as Herzberg, Maslow and co
suggested having job enrichment or self
actualisation needs met is normally more
important. This can be done through many
methods.
- Job Rotation, enlargement and enrichment
- Delegation
- Participation
- Team Work
- Empowerment
- Target Setting
NON FINANCIAL METHODS
OF MOTIVATION
Job Rotation – Allowing workers to do different
jobs of the same skill level by switching between
them at time intervals. Common in
manufacturing.
 Job Enlargement – This can be motivating and
discouraging as it involves increasing a persons
workload which is likely to increase the challenge.
 Job Enrichment (Herzberg) – This allows
employees more autonomy and control over there
job as well as greater challenge to motivate them.
 Job Redesign – Linked to the above changing a
persons job to increase the challenge and re
motivate a stale worker.

NON FINANCIAL METHODS
OF MOTIVATION
Quality Circles – Groups of workers who meet
together to discuss work related problems and
issues.
 Participation – this requires managers to give
workers the opportunity to be involved with
decision making in different employee related
issues.
 Team Working – This is a common practice as it
allows people to discuss work ideas with
colleagues however there can be downtime if no
one takes charge of the project or if they have
meetings for meetings sake.

NON FINANCIAL METHODS
OF MOTIVATION
 Target
Setting – this is often described
as KPI (Key Performance indicators) it
allows staff to get feedback from
employers on there performance against
agreed targets.
 Delegation and Empowerment –
Allowing employees to take full
responsibility for the work they are
undertaking, they make all the decisions
related to the project.
MOTIVATION EVALUATION

The decision on how to motivate employees will
be based on the managers bias towards there
employees and what generally motivates them. It
takes a savvy manager to work out what
motivates different employees and adapts there
style to suit there employees, Managers need to
realise to increase productivity and efficiency they
need to get the best out of there employees, this
means ensuring they use the motivational
techniques suited to different employees. Both
Financial and Non Financial.
REVISION CASE STUDY PAGE
175
 Complete
factory)
Questions 1-4 (Unrest at the