1.4.4 Motivation in Theory and Practice

• 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