1.4.4 Motivation in theory & pratice

• What is motivation?

  A force that makes people act, set goals and achieve them - it is a process that controls human behaviour, as well as setting direction and action
• What are the benefits of having a motivated workforce?

  • Absenteeism falls
  • Increased customer service
  • More loyal
  • More in tune with objectives
  • Higher productivity
  • Higher staff retention
  • Gain competitive advantage
• There are 4 main motivational theorists:

  • FW Taylor - Scientific Management: 1856-1915
  • A Maslow - Hierarchy of Needs: 1908-1970
  • F Herzberg - Two Factor Theory: 1923-2000
  • E Mayo - Hawthorne Experiments: 1880-1949
• FW Taylor

  • Believed that money was the key reason why workers were motivated and if left to their own devices they would do the bare minimum. To get around this he came up with:

  1. Division of labour - Break the work down into a lot of small repetitive tasks with little training needed
  2. Piece rate - Pay workers according to quantity produced to raise productivity
  3. Tight management - There to ensure workers are efficient and for quality control purposes
• Advantages of Taylor

  • Some aspects have survived into modern times - piecework, the supervisor role and it has had a very big influence on mass production.
• Disadvatages of Taylor

  • Taylor’s methods could be seen as exploitation.
  • His theory does ignore factors such as how demotivating doing very repetitive tasks can be and to feel not trusted by supervisors.
• A Maslow - Hierarchy of Needs

  • Findings based on human motivation, then later were applied to the workplace
  • Came up with his hierarchy of needs - suggested that people are all driven / motivated by similar needs & each need must be fulfilled before progression to the next level.

  Five layers in the hierarchy:

  1. Basic Physical Needs - food / water / shelter / clothes
  2. Safety Needs - safe environment / job security
  3. Social Needs - friendship / teamwork
  4. Self-Esteem Needs - achievement / promotion
  5. Self Actualisation Needs - creative / meeting potential
• Advantages of Maslow

  • Recognises that people have different motivations but each of the five have some importance to workers
  • Recognises that people’s motivations change over time
• Disadvantages of Maslow

  • It isn’t always obvious which level staff are on
  • Some workers may put their needs in a different order e.g. valuing friendship over achievement
  • Are all businesses able to provide all these motivators? - do you think businesses are responsible for each level of the hierarchy?
• F Herzberg - Two Factor Theory

  - interviewed accountants and engineers to find out what motivated and satisfied them at work.

  Identified two groups of factors which influenced the motivation of workers:

  • Hygiene factors - These do not motivate staff however if they are absent or poor then staff will become demotivated
  • Motivating factors - They do positively motivate workers 
• Main criticism of Herzberg

  his study was founded on a small sample and does not consider that people have different hygiene and motivating factors.
• Hygiene factors

  • Working conditions
  • Company policy
  • Job security
  • Supervision
  • Relationship with colleagues
• Motivating factors

  • Responsibility
  • Promotion
  • Interest in the work
  • Achievement
  • Responsibility
  • Recognition
  • Personal growth
• E Mayo - Hawthorne Experiments  

  - Conducted the Hawthorne Experiments to create the Human Relations Theory of Motivation.

  • Investigated whether certain factors affected worker’s productivity:

   - One group of employees worked in their usual working conditions - -- One group of employees had their working conditions changed 

  e.g. brightness of the workplace, length and number of rest breaks…
• E Mayo - Hawthorne Experiments  

  • Conducted the Hawthorne Experiments to create the Human Relations Theory of Motivation.

  Investigated whether certain factors affected worker’s productivity:

   One group of employees worked in their usual working conditions

  
  

  One group of employees had their working conditions changed  

  e.g. brightness of the workplace, length and number of rest breaks…
• What was the main focus of the Mayo-Hawthorne Experiments?

  The impact of changes in workplace conditions on productivity
• What was the outcome when workplace conditions were changed according to the Mayo-Hawthorne Experiments?

  There was an increase in productivity
• What happened to productivity even when changes made conditions worse in the Mayo-Hawthorne Experiments?

  Productivity still increased
• What was identified as the primary reason for the increase in productivity during the Mayo-Hawthorne Experiments?

  The attention given to workers by management
• How did teamwork affect productivity in the Mayo-Hawthorne Experiments?

  Productivity increased when employees worked together in teams
• What condition was necessary for teamwork to positively impact productivity in the Mayo-Hawthorne Experiments?

  Workers needed to receive attention from managers
• What are the overall benefits of informal social interactions and group work according to the Mayo-Hawthorne Experiments?

  • Workers benefit from informal social interactions
  • Working in groups enhances productivity
• Motivation methods

  Two methods that a business can use to motivate its employees:

  • Financial - Money is used as an incentive
  • Non-Financial - Jobs are designed to be more satisfying
• Piece work

  Often used for assembly line workers
• Commission

  Often used in sales roles
• Performance related pay

  Used to reward the best employees
• Bonus schemes

  Motivates employees to reach targets
• Profit sharing

  Encourages employees to work hard for the overall good of the business
• Financial methods:

  • Piece work
  • Commission
  • Performance related pay
  • Bonus schemes
  • Profit sharing
• What is piecework pay?

  Workers are paid per unit produced without a fixed salary.
• When is piecework pay typically used?

  It is used when the quantity produced is easily measured, such as on a production line.
• What is a potential benefit of piecework pay?

  It can encourage people to work harder and produce more.
• How does piecework pay affect supervision needs?

  It can require less supervision as the tasks are often repetitive.
• What is a potential downside of piecework pay regarding quality?

  Quality can suffer, necessitating the introduction of quality control measures.
• Why might some businesses avoid piecework pay year-round?

  Some businesses may not want high production all year round, such as seasonal businesses.
• Which motivational theorist believed that money was the only motivator for piecework pay methods?

  Taylor
• What is commission pay?

  Workers are paid upon completing a task, often as a percentage of sales made.
• How can commission pay affect sales staff motivation?

  It can increase motivation and hunger among sales staff.
• What is a potential negative consequence of commission pay?

  It can lead to overselling or an aggressive approach that may deter customers.
• What budgeting challenge does commission pay present for businesses?

  It makes it hard for the business to budget labor costs each month.