The reason why employees want to work hard and work effectively for the business
Reasons why people want to work
Money
Job satisfaction
Job security
Social needs (feeling part of the team)
Esteem needs (feeling good within themselves)
Businesses need to motivate their staff because there are a number of studies that have proven that motivated staff mean that there are higher profits for business
Workers are unhappy
Lower output and no profit, higher absenteeism, higher labour turnover
Safety and security needs (protection against danger, poverty, job security)
Social needs (friendship, sense of belonging)
Esteem needs (recognition for job)
Self-actualization (promotion, more responsibility)
Maslow says that in order to be motivated, employees must have access to the higher levels of motivation
Once a level of Maslow's hierarchy has been completed, it can no longer be used to motivate
Managers must identify the level of hierarchy their employees are at and find ways for them to access the next level
Taylor's view on motivation
Financial rewards, piece rate (pay per item produced)
Herzberg's view on motivation
Hygiene factors (company policy, supervision, working conditions, salary, status, security) are not motivating, only motivator factors (achievement, recognition, the job itself, responsibility, growth) are motivating
Financial rewards
Wage
Piece rate
Time rate
Salary
Bonus
Commission
Profit sharing
Non-financial methods of motivation
Job rotation
Job enrichment
Team working
Training
Opportunities for promotion
Fringe benefits can also be used to motivate employees (e.g. car, shares, healthcare, vacation, pension)
You need to be able to recommend and justify appropriate methods of motivation in given circumstances