17-Motivation - Business

17 MOTIVATION
Bonus : A payment in addition to the basic wage for reaching targets
Commission: Percentage payment on a sale made to the salesperson
Consultation : Listening to the views of employees before making key
decisions that affects them
Delegation : The passing of authority down the managerial hierarchy
Empowerment : Giving official authority to employees to make

decisions
Hawthorne effect : The idea that workers recognition given to them as

a group
Hygiene (maintenance factors) : Things that result at dissatisfaction at

work
Job enlargement : Giving an employee more work to do of a similar

nature
Job rotation : The periodic changing of jobs and tasks
Maslow´s hierarchy of needs : the order of people’s needs starting

with basic human needs
Motivated : The desire to take action to achieve a goal
Motivators : Things at work that lead to satisfaction
PRP : Performance-related pay : a payment system designed for non-

manual workers
Piece rates : a payment system where employees are paid an agreed

rate for every item produced
Profit sharing : Where workers are given a share of the profits, usually
as part of their pay
Scientific management : A theory that suggests there is a best way to

perform work tasks
17 MOTIVATION
Self actualisation : a level in Maslow theory where people realise their
full potential
Motivation theories :
F.W Taylor :
Select workers to perform a task (same thing 8 hours a day)
Observe them and then note the key elements
Record the time taken to do each part of the task
Chooses the quickest method discovered
Supervise workers to make sure they are following
Pay the workers on this basis of results
Taylor believed that workers were solidly motivated by money
Mayo´s human relations school :

He believed that workers were motivated by :
Working conditions
The skills of workers
Financial incentives
So workers are motivated by the way they interact with each other
Herzberg :
Asked 200 workers that what motivates them and he developed a two
factor theory :
Motivators : Things that motivates - chance of promotion
Hygiene factors : Things that prevent dissatisfaction - pay conditions
His ideas were linked to job enrichment:
Improvements in pay will not motivate workers
What motivates is :
Being involved in the production of a complete unit
Receiving feedback on their performance
Being given a range of different tasks to complete
Maslow
Suggested that classes of needs can be placed into a hierarchy
The classes needs were :
Physiological needs : High enough wages to pay the bills, good work
conditions
17 MOTIVATION
Safety needs : Job security, safe working conditions
Love and belonging : Working with colleagues that support your work,
team work and commenting
Esteem needs : Being given recognition for doing a job well
Self-actualisation : Being promoted and given more responsibility ,

scope to develop and introduce new ideas, and take on challenging
new job assignments
17 MOTIVATION
Advantages Problems
Maslow Serves to interpret human -It is hard for researchers to

behaviour and motivation really measure these needs across all
well
human population (Maslow
Easily grasped and applied
studied a narrow segment of
population)
-Some levels don’t exist for some

people
Herzberg -Money is treated secondary
-Job satisfaction and job
-Companies can focus on productivity aren’t directly related
employee problems
-Can be subjective
-Emphasis on motivation from -Ignores external factors
within the employees
Taylor -Decrease inaccuracy

-Ignoring the non-physical
-More control on workers
contributions of workers
-Cost of production is reduced

-not easy to measure the output
of workers
-time consuming
Mayo -More freedom to workers

-Increase the responsibility of the
-Great level off team work and worker which causes stress
communication
Communication between
manager and worker may lead to
argument and dissatisfaction
Questions :
Why is it important that business motivate the staff :
Increase productivity
Less absents
Improve industrial relations With trade unions
Difference between piece rates and performance-related pay?

Piece rate pay gives a payment for each item produced
Performance related pay : Payment depend on the performance of

worker
Adv: gives managers and workers an incentive to improve efficiency

and productivity. It leads to lower costs and helps the firm remain
profitable
17 MOTIVATION
Profit sharing workers :

Incentive Programme that awards employee a percentage of company
profits.Amount awarded iOS based on companies earning over a period
of time
Ads of flexible working place :

For employees :
Time to meet family and personal needs
Working during the hours that fit your energy
More control over working environment and schedule
For employers :
Reduces absents
Reduce employee turnover
Delegation in motivating staff advantages :

Skills development
Increased and improved motivation and job satisfaction
advantages of job enrichment :

Reduce workplace boredom
Challenges employees to take their skills beyond whats expected
advantages of job enlargement :

Improve earning capacity
Increases the skills of employee in different tasks
advantages of job rotation : (where employees are shifted between

two opt more assignments)
It eliminates boredom
Give employee a break from job duties
Helps you identify where employee works best

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17 MOTIVATION

Bonus : A payment in addition to the basic wage for reaching targets

Commission: Percentage payment on a sale made to the salesperson

Consultation : Listening to the views of employees before making key

decisions that aﬀects them

Delegation : The passing of authority down the managerial hierarchy

Empowerment : Giving oﬃcial authority to employees to make

Hawthorne eﬀect : The idea that workers recognition given to them as

Hygiene (maintenance factors) : Things that result at dissatisfaction at

Job enlargement : Giving an employee more work to do of a similar

Job rotation : The periodic changing of jobs and tasks

Maslow´s hierarchy of needs : the order of people’s needs starting

Motivated : The desire to take action to achieve a goal

Motivators : Things at work that lead to satisfaction

PRP : Performance-related pay : a payment system designed for non-

Piece rates : a payment system where employees are paid an agreed

Scientific management : A theory that suggests there is a best way to

Observe them and then note the key elements

Record the time taken to do each part of the task

Chooses the quickest method discovered

Supervise workers to make sure they are following

Pay the workers on this basis of results

Taylor believed that workers were solidly motivated by money

Mayo´s human relations school :

The skills of workers

Motivators : Things that motivates - chance of promotion

Hygiene factors : Things that prevent dissatisfaction - pay conditions

His ideas were linked to job enrichment:

Improvements in pay will not motivate workers

Being involved in the production of a complete unit

Receiving feedback on their performance

Being given a range of diﬀerent tasks to complete

Suggested that classes of needs can be placed into a hierarchy

The classes needs were :

Esteem needs : Being given recognition for doing a job well

Self-actualisation : Being promoted and given more responsibility ,

Maslow Serves to interpret human -It is hard for researchers to

-Some levels don’t exist for some

-Emphasis on motivation from -Ignores external factors

within the employees

Taylor -Decrease inaccuracy

-Cost of production is reduced

Mayo -More freedom to workers

Improve industrial relations With trade unions

Diﬀerence between piece rates and performance-related pay?

Performance related pay : Payment depend on the performance of

Adv: gives managers and workers an incentive to improve eﬃciency

Profit sharing workers :

Ads of flexible working place :

Time to meet family and personal needs

Working during the hours that fit your energy

More control over working environment and schedule

Reduce employee turnover

Delegation in motivating staﬀ advantages :

Increased and improved motivation and job satisfaction

advantages of job enrichment :

Challenges employees to take their skills beyond whats expected

advantages of job enlargement :