1.4.4 Motivation in Theory and Practice

Cards (55)

  • Motivation
    The desire to achieve a result results in greater productivity, less waste and higher profitability
  • Taylor: Scientific Motivation

    -Clear division and specialisation of labour
    -Performance-based pay (piece-rate) increases efficiency
    -Improved training
    -Standardised procedures
  • Advantages of Taylor
    -Increased production
    -Lower costs of production
    -Fewer defects as the employee becomes specialised
    -Benefits the best employees
    -More control over employees
  • Disadvantages of Taylor

    -Costly to implement
    -Work becomes repetitive
    -Alienation
    -Increased unemployment as workers can be replaced by technology
    -Deskilling
    -Limited applicability
    -Workers are exploited
  • Deskilling
    Workers become overspecialised and cannot perform any other tasks
  • Mayo: Human Relations

    -Communication between managers and workers
    -Greater management involved
    -Teamwork as group norms influences the behaviour of workers
    Works with paternalistic leadership
  • Advantages of Mayo

    -increased production
    -cheap to implement
    -improved morale and empowerment
    -increased employee retention
    -increased motivation
  • Maslow: Hierarchy of Needs
    There are 5 tiers of needs: physiological, safety, social, esteem and self-actualisation which employers can fulfil in the workplace eg. job security meets safety needs
  • Advantages of Maslow
    -Higher employee satisfaction
    -Increased motivation
    -Improved employee performance
  • Disadvantages of Maslow

    -Needs to be tailored to fit individual needs
    -Expensive
    -Time-consuming
  • Disadvantages of Mayo
    -Time-consuming
    -Lack of control
    -Workers may resist change
    -Potential conflict due to increased communication
    -Limited applicability
  • Hygiene Factors

    Elements that can lead to job dissatisfaction if absent eg. poor teamwork
  • Use of Hygiene Factors

    -Pay fair wages
    -Offer excellent working conditions
    -Offer contracts with job security
  • Use of Motivators
    -Build a recognition and rewards culture
    -Offer opportunities for growth and development
    -Provide challenging work
  • Mayo in the Workplace
    -Empowering employees
    -Team-building activities
    -Providing feedback
    -Create a positive work environment
    -Encouraging employee development
  • Taylor in the Workplace

    -Workers perform one task (specialisation)
    -Workers are only paid a piece-rate
  • Piecework
    Workers are paid per unit of output
  • Advantages of Piecework
    -Incentive to work
    -Home workers can start and finish when they want
    -Benefits better workers
  • Disadvantages of Piecework
    -Quality decreases as workers cut corners
    -Workers may fall under the national minimum wage
  • Commission
    A percentage of sales revenue paid to workers
  • Benefits of Commission
    -Skilled workers earn more
    -Employer does not pay for downtime
    -Motivates employees to increase sales
  • Limitations of Commission
    -Unstable income
    -Employees prioritise sales over customers
  • Bonus
    A lump sump paid in addition to wages
  • Limitations of Bonuses
    -Expensive
    -Employee is taxed on their bonus
  • Benefits of Bonuses
    -Incentivises employees to meet sales objectives
    -Motivates workers as their work is appreciated
  • Profit Share

    An annual dividend paid to employees based on the firm's profits
  • Benefits of Profit Shares

    -High motivation
    -Employees identify with the company so increased retention
    -Employees will focus on profitability
  • Limitations of Profit Shares

    -Salaries rise equally not based on contribution
    -Employees' earnings can vary greatly at small firms
    -Prioritise profit over quality
  • Performance Related Pay

    Staff are paid based on the performance goals they have met
  • Benefits of Performance Related Pay

    -Improved performance
    -Easy to choose who to promote
  • Limitations of Performance Related Pay

    -Can cause jealousy and unrest
    -Employees may be demotivated if they do not reach goals
  • Delegation
    Allocating tasks to employees thus giving them more responsibility
  • Benefits of Delegation
    -empowers managers to make decisions
    -maximises team's potential
    -builds trust between managers and employees
  • Limitations of Delegation
    -Managers delegate tasks when overloaded instead of to motivate
    -Managers may not choose the most suitable employee
  • Consultation
    Including employees in the decision making process
  • Benefits of Consultation
    -Prevents minor issues getting bigger
    -Helps avoid union action
    -Increased motivation as their views matter
  • Limitations of Consultation
    -Employees may not know how to run a successful firm
    -Employees may have grudges
  • Empowerment
    Giving employees more authority to delegate tasks to others
  • Benefits of Empowerment
    -Staff feel recognised for their effort
    -Increased productivity
    -More effective problem-solving as they are local
    -Increased employee retention
  • Limitations of Empowerment
    -Makes managers insecure as it may lead to delayering
    -Employees have more work but no pay rise
    -Lack of experience may lead to mistakes