MOB Chapter 7
MOB Chapter 7
W
e all make choices in life and the choices we Ability to make choices
make may be influenced by a number of factors.
One of the greatest desires for humans is having the ability
As students, there are a number of factors that
to make certain choices. When this is not the case, people
influence the level of work you do in each subject, including
may feel confined or unhappy with their current situation
Management of Business. Some of you might be driven by a
or environment. In a business operation some employees
desire to do well; a good teacher who encourages you all the
desire to have the autonomy to make choices which could
time; a desire to qualify for the best university; or wanting
influence the work environment or the way the work is
to ensure that your parents’ money is not wasted. These
done. They want to participate in decision making while
factors will influence your level of motivation. In this
knowing that their suggestions will be treated with high
chapter, the concepts of motivation, motivation theories
regard. These choices may be given to employees by a
and incentives will be discussed.
democratic leader as opposed to an autocratic one. It is
often said that employees who have a democratic leader are
usually better motivated than those with an autocratic
Factors that stimulate and influence leader. These different leadership styles will be discussed
motivation later in this book. The idea of allowing employees to have
Motivation is generally defined as the ‘will to achieve’. It is some level of autonomy is supported by the work of
the internal and external forces that arouse a person to theorists Herzberg and McGregor. Both theories are also
carry out a task with enthusiasm. Your level of motivation discussed later.
may be influenced or stimulated by the following factors:
Environmental opportunities
Individual needs The environment in which people work can be a good
We are driven by our needs and the things we do are, very source of motivation. If the work environment offers
often, influenced by our desire to satisfy these needs. An opportunities for personal growth or for promotion, then
employee’s basic need for food, clothing and shelter will people may be motivated. Employees may become de-
influence how he/she works or operates. For example, a motivated if their work environment offers neither of
these two opportunities. Working in an environment
where there is no chance of
2 MODULE 2 | UNIT 1 | THE MANAGEMENT OF PEOPLE
Questions
1. Give evidence from the case to show that the workers are de-motivated. (3 marks)
2. Discuss how the occurrences at Fun Lovers’ Paradise represent a deviation from Maslow’s Hierarchy of Needs. (10 marks)
3. Briefly explain Herzberg’s theory and discuss how it could be used to improve motivation at Fun Lovers’ Paradise. (12 marks)
Total 25 marks
outcome by the individual. For the employees’ level of Earlier in this chapter it was discussed that theorists
motivation to be high, the outcome must be desirable such as Herzberg believe that money is not source of
and highly valued. motivation.
Adams’ Equity
Theory
John Adams’ Equity Theory suggests that inequities will
exist if people believe that the rewards they receive for a
completed task are unequal to those received by other
people. If employees perceive that the rewards received
for a task are the same as the rewards for other people
carrying out a similar task, they will see themselves as being
treated fairly and equitably. Where this is not the case,
however, then they attempt to reduce the perceived
inequity by:
Modifying the inputs – for example, the level of effort
exerted to carry out the task
Changing the outcomes – for example, lobbying for
better wages and working conditions
Resigning from the post
Mentally distorting their perception.
Payment schemes
Time rates
This type of payment is used for workers who are paid for the
amount of hours they spend at work. At the end of the week,
fortnight or month, workers will be given their total wages or
salary. The rate paid is usually a fixed amount and is based on
a standard working week. For example, most CARICOM states
have a standard work week of 40 hours.
In some cases workers are paid for working over the
specified amount of hours for the week. The excess hours
work for the week is termed ‘overtime’. The payment
received for overtime work done is usually over and above the
ordinary hourly rate. For example, regular hours work may be
paid at $50 per hour but overtime is paid at ‘time and a half’
per extra hour worked – that is $75 per hour. If a worker
works for 45 hours for the week, his weekly pay would be
calculated as:
Work study
This concept was borne out of the work of FW Taylor in
his Scientific Management theory. It seeks to determine the
level of efficiency achieved through the use of labour when
compared with other factor inputs in an organisation.
Work study incorporates and uses two techniques: method
study and work measurement.
The first technique, method study, analyses the way in
which a job is performed and identifies ways to improve
performance. The process usually involves the following
steps:
1. Selecting, observing and recording the current method
of work being used
2. Examining, in detail, the method being used, placing
emphasis on quality
3. Developing an improved alternative way of performing
the job
4. Implementing the new method of performing the
task. This method should be constantly monitored and
improved to ensure that it is reaping the desired results.
The second technique, work measurement or time
study,
is used to measure and compare the time it takes to
complete a particular task or job. Work measurement may
involve the following steps:
1. Identification and selection of the work to be measured
2. Definition of the method of measurement to be used
3. Assessing the task and measuring its duration
4. Gathering details about the work
5. Setting a standard time in which the particular task
should be done.
A major feature of work study is the concept of
ergonomics. Ergonomics studies the relationship between
workers and machines or equipment. Machines and
performance. It incorporates factors such as lighting, Non-financial strategies
seating, noise level and temperature, among other Initially, most firms saw financial rewards as the way to
things. motivate workers. This view was also supported by the early
Work study is known to provide the firm with management theorists. However, the workplace is quickly
the following benefits: changing and many firms are finding that workers are not
Avoidance of bottlenecks, as work flows at a good pace motivated just by money but also by other non-financial
Management can maintain closer control
Improved performance by employees
Can be used to implement performance-based pay
Improves the overall performance and efficiency of
the firm.
Advantages of profit
sharing
Helps to motivate workers
Workers have an opportunity to earn more as
the company makes more profit
Workers are more willing to accept changes that
will improve efficiency and performance.
Disadvantages of profit
sharing
There may be disagreements about how the
profits should be divided among workers
It is sometimes difficult to see the link between workers’
performance and the profit of the firm.
Share ownership is where senior managers in the
company are given shares. This may be done
instead of paying bonuses or using profit-sharing
schemes. The manager in receipt of a share in the
company will become a part-owner of the company and
would have the same rights as any other shareholder.
The benefits of this technique would be that
managers would work harder to ensure that the
company is successful and they are less likely to resign
from since they have ownership in it. A drawback of
this practice is that it is usually not given to the entire
workforce.
factors. In this section we will examine some of these interests and needs and the remuneration is
non-financial rewards that are commonly used in the satisfactory.
organisation to motive workers.
Individual job
needs
This can be linked to the work of Frederick Herzberg. On the
heels of mounting dissatisfaction with financial incentive,
Herzberg attempted to ascertain the factors that would
reduce dissatisfaction and motivate workers. In essence,
he tried to identify the individual job needs of workers
by attempting to answer the question of ‘What do people
want from their jobs?’. From this research he came up with
what he termed ‘motivators’, which were discussed earlier
in this chapter. In order to foster motivation, jobs should
be designed to meet the individual needs of the workers.
These needs could include, but are not limited to: status,
friendship, self-fulfilment, responsibility, interaction and
cooperation. If workers feel that their individual job needs
are being met, then their level of motivation may increase.
Participatio
n
This relates to the involvement of employees in the decision-
making process of the firm. It can be used to motivate
employees, as they feel that they are valued by the firm.
Their involvement in the decision-making process gives a
sense of accomplishment and recognition. A manager who
desires to improve motivation can involve his subordinates
in decisions regarding the planning, design and scheduling
of the work.
The process of employee participation helps in their
empowerment in the organisation. Participation helps to
decentralise the organisation as decisions are no longer
skewed to top management but may involve any level of
workers. Employee participation may include quality
circles, consultation and suggestion schemes.
Some of the common benefits of employee participation
include increased motivation, increased productivity,
improvement in product quality and improvement in the
performance of employees. However, amid the benefits of
employee participation, it may considerably slow down
the decision-making process in some organisations. Also,
there may be certain sensitive information that cannot be
communicated to the wider organisation.
Job
satisfaction
An important way to improve performance on the job is
to ensure that workers are satisfied. Job satisfaction occurs
where an employee regards his/her work with a positive
attitude. It is where the work being done coincides with
The extent to which an employee is satisfied with work may
depend on the relationship with co-workers and supervisor, the
quality of the work environment and the level of
fulfilment received from working.
Managers who make the link between job satisfaction and
performance can use it to their advantage. The notion is that
the more satisfied workers are, the greater will be their level
of productivity and, hence, performance. To this end,
managers should ascertain the factors that influence workers’
satisfaction and implement them in order to improve
performance. Managers may also find that job satisfaction
can reduce the level of absenteeism and labour turnover while
improving productivity. They should also be aware that there
are other factors, apart from job satisfaction, that may affect
performance. Those factors should also be ascertained.
Job enrichment
This non-financial strategy is where employees are given
more interesting and complex tasks to complete. For job
enrichment to be successful, workers should be given greater
responsibility in the work process. The workers’ tasks may be
extended to include supervisory roles, planning the work
process and quality control, among other things. The challenge
provided by job enrichment can help workers to achieve a sense
of self-fulfilment, especially when they have successfully
completed the task. Job enrichment works to expand the
responsibility of workers ‘vertically’ and gives them an
opportunity to utilise their ‘unused’ skills. Workers who do
well with job enrichment may feel a sense of fulfilment as
they note their contribution to the success of the organisation.
Job enlargement
Unlike job enrichment, which deals with a ‘vertical’ expansion,
job enlargement involves expanding the number of tasks that
workers are expected to complete. For example, a dressmaker
would be given an entire dress to sew rather than just sewing
on a collar or sleeve. Job enlargement is particularly effective
where workers feel that the job that they are completing is
oversimplified. Using this strategy gives workers a variety of
tasks to complete and more challenge on the job. The
increase in tasks can work as a motivator for workers who
have successfully completed the tasks given amid the
challenges.
Job rotation
This strategy has helped a number of employees to develop
their skills and working ability. Job rotation involves the
moving of workers in a systematic way from one job
responsibility to another. For example, a cashier may discuss quality problems, recommend solutions and take the
be transferred to complete the task of a receptionist then necessary actions to solve the problem. Quality circles, to a
customer service representative while the others workers large extent, consist of shop-floor workers who can use the
are also reshuffled. This can be motivating for workers who opportunity to become self-motivated. This concept will be
would rather learn new tasks than do the same repetitive discussed further in Unit 2, Module 1.
tasks on a daily basis.
Quality control
circles
Quality control circles are groups of employees who have
been given the responsibility for holding regular meetings to