Motivation refers to the inner desire or willingness that propels a person to take action and achieve a specific goal or outcome
The impact of motivation on productivity
More productive and efficient - more likely to be engaged in their work and take initiative to meet or exceed their goals.
Generate higher levels of output and quality.
Productivity results in higher profits
Impact of motivation on the reliability of workers
Motivated employees -more likely to be reliable and dependable.
Take pride in their job, show up on time, meet deadlines, and take fewer sick days.
Leads to increased trust between the business and its employees and higher productivity
Impact of motivation on turnover rates
Motivated employees are more likely to stay with the company long-term which reduces the turnover rate.
Lower turnover rates reduce the need for costly recruitment and training
Mayo suggests that the key to improving productivity and job satisfaction lies in understanding and improving the relationships between workers, supervisors, and management
Mayo's motivation theory
Empowering employees in decision-making
Team-building activities build relationships
Providing feedback and recognition to employees
Creating a positive work environment by promoting open communication and providing support to employees
Encouraging employee development by offering training programs, mentorship opportunities, and career advancement paths
Advantages of Mayo
Stronger teams - sense of community and team spirit
Employee empowerment increases worker's sense of ownership and responsibility
Better communication as workers value open and honest communication
reduces misunderstandings and conflicts
Increased productivity as workers feel valued and supported
Improved job satisfaction
Disadvantages of Mayo
Time-consuming as building positive relationships requires time and effort
Lack of control as workers take more decisions
Resistance to change - some workers and managers may be resistant to the changes required by Mayo's theory
Potential for conflict - attempts to build stronger relationships can also lead to conflicts and disagreements
Limited applicability - it may not work for businesses which require a high degree of individual autonomy and independence
Maslow's hierarchy - Physiological Needs
provide necessities for their employees e.g comfortable work environment, access to clean water and food, and adequate rest breaks
Maslow's hierarchy - Safety Needs
provide job security, fair pay, benefits, and safe working conditions for their employees
Maslow's hierarchy - Love and Belonging Needs
encourage teamwork and generate a sense of community and belonging within the workplace
Maslow's hierarchy - Esteem Needs
provide recognition for employees' accomplishments, and provide a positive work culture that values individual contributions
Maslow's hierarchy - self actualisation
can help employees achieve this need by offering opportunities for employees to pursue their passions and interests
Increased motivation: offering incentives that align with their specific needs and desires
Improved employee performance: feel valued and supported by their employers are more likely to perform at a higher level
Disadvantages - MASLOW
One size does not fit all: Businesses need to tailor their approach to meet the individual needs of their employees
Expensive: Meeting many individual needs can be costly
Time-consuming: significant effort from management to connect individually to understand opportunities for personal growth are desired
Taylor - scientific management
Focuses on breaking down complex tasks into simpler ones, standardising work processes & providing workers with clear instructions & training to achieve maximum efficiency.
Many manufacturing businesses use Taylor's principles to structure their staff benefits, e.g. piece rate pay
Production lines involving human labour are often set up based on these principles
How do business use Taylor's approach
Workers are trained to perform only one task, which they become very skilled at.
Workers are usually only paid for the completed work (piece rate pay)
Advantages - Taylor
Increased efficiency = lowers costs
Standardised procedures for work processes that everyone follows can help reduce errors and inconsistencies.
Specialisation of labour leads to greater efficiency and productivity.
Clear hierarchy and lines of authority can lead to more efficient decision-making and communication.
Improved training and development can lead to better performance and job satisfaction.
Disadvantages - Taylor
Overemphasis on efficiency reduces worker satisfaction and creativity.
Workers may disengage from work if they are reduced to working in a machine-like system.
Limited applicability - may not work for roles that require high levels of creativity, problem-solving, or interpersonal skills.
Potential for exploitation as this approach may be used to extract more work from workers without compensating them fairly.
What does Hertzberg's theory suggest?
suggests that there are two types of factors that affect employee motivation and job satisfaction.
Hygiene factors are elements that do not necessarily lead to job satisfaction, but their absence can cause dissatisfaction, which decreases motivation, e.g poor teamwork in the workplace
Motivators are elements that lead to job satisfaction and motivation, e.g. increased responsibility
Hertzberg's2 factor theory
Using hygiene factors to decrease dissatisfaction
Pay fair wages and salaries - employee may become dissatisfied and demotivated.
Offer excellent working conditions - If the workplace is dirty, unsafe, or uncomfortable, employees may become dissatisfied and demotivated.
Offer employment contracts - provide job security - employees may become anxious and demotivated and contribute less to the business goals if position not secure.
Using motivators to increase satisfaction
Build recognition and rewards culture - When employees recognised and rewarded for hard work = motivated to continue performing well.
Offer opportunities for growth and development - When given opportunities to learn new skills and advance in careers, they are motivated to continue working for the company.
Provide challenging work which requires problem solving - When given challenging work, allows them use their skills and abilities, they are motivated to continue performing well.
What are financial incentives?
Rewards or payments given to employees in return for their labour or improved performance.
Piecework
Paid according to no of units/pieces produced.
Commonly used in manufacturing or assembly-line setting - encourages workers to produce more and increase their output.
(Taylor)
Commission
percentage of sales revenue paid to workers who sell products or services.
Commonly used in sales roles & motivates staff to sell more and increase their sales revenue.
(Hygiene factors/Needs (Maslow))
Bonus
Additional payment given to staff as reward for achieving specific goals, completing projects on time, or exceeding performance expectations.
Motivates staff to work harder and achieve better results.
(Maslow's hierarchy, Hertzberg)
Profit share
Portion of company's profits are distributed among staff, - encourages them to think like owners, work collaboratively and focus on company's overall goals.
(Hertzberg - motivator)
Performance related pay
Paid based on performance - theoretically motivates staff to work harder & achieve better results.
Severely criticised as discriminatory and open to abuse by managers.
(Hygiene factor - Hertzberg)
What are non-financial incentives?
Rewards or motivators not directly related to money.
Intangible and include methods that lead to recognition, praise, job satisfaction, and work-life balance
Delegation (NFI)
involves transferring responsibility from a manager to their staff.
Gives employees a sense of ownership and control over their work, which can lead to improved productivity.
(Maslow, Motivator - Hertzberg)
Consultation (NFI)
Involves seeking input of staff on decisions that affect their work.
This inclusion can increase staff engagement and commitment - leading to improved productivity.
(Maslow)
Empowerment (NFI)
Giving staff authority & resources to make decisions and take action without first receiving management approval.
Increases staff sense of ownership and responsibility = improved productivity.
(Maslow/ Hertzberg - Motivator)
Team Work (NFI)
Involves creating opportunities for staff to work collaboratively.
Staff can share ideas and expertise, leading to improved productivity and innovation.
(Mayo)
Flexible Working (NFI)
Involves providing staff with option to work remotely or adjust hours to suit lifestyle.