2.

4 Motivation

Motivation

theories Methods

Taylor Maslow’s hierarchy Herzberg Financial Non-financial

Taylor:
Main idea: (money) (more pay , more output) (different piece rate)
to motivate workers to be more efficient and productive. Such a payment system rewards those
who meet or exceed targets. So, higher financial reward for more hard-working and productive
workers

For example, a worker who makes up to 100 units of output might be paid $3 per unit but this
increases to $4 per unit for each item made above 100 units. Hence, piece rate as a financial
payment system rewards workers who are more productive, i.e. piece rate can be highly effective
in motivating and rewarding workers.

Criticism:

the scientific management approach to human resources is rather authoritarian, and perhaps
less suitable in modern businesses of the 21st Century

subsequent theorists (such as Maslow as well as Herzberg) felt that there is far more to
motivation than money. They argue that people cannot be effectively managed in a scientific
way. People are not motivated in the same way.

Qualitative factors that affect the level of employee motivation are ignored.

Maslow’s hierarchy of needs:

Main idea:
-(Lower order needs) : physiological, safety, and social needs. These needs must be met to
prevent dissatisfaction or unhappiness.

-(Higher order needs) : esteem and self-actualization needs. Meeting these needs help to
provide a person with a genuine sense of being complete, contented and overjoyed.

 Physiological needs : requirements for human survival(Food,clothe,…). Improved

financial reward systems and working conditions can help people to meet these basic
needs.
 Safety needs : requirements that make people feel safe( job security,..). Factors
affecting job security include a worker's performance, financial success of the business,
employment legislation and the current economic climate. However, firms can address
safety needs, to some extent, by using contracts of employment.
 Social needs : requirements for belonging and being accepted.it can be achieved in
workspace by creating team work and having social facilities like using informal
communication. consequently, this increase sense of belonging.
 Esteem needs refer to the desire of people to feel respected, having value and having
self-respect. Feeling good about themselves,being trusted by others.
 Self-actualisation occurs when people become the very best that they can be, i.e.
fulfilling their full potential. (Accomplishment, Develop fully)

Examples of Maslow's hierarchy of needs

Love and
Self- Physiological
Esteem needs belonging Safety needs
actualization needs
needs

Accomplishment Achievement Acceptance Job security Basic necessities

Develop fully Reputation Affection Predictability Biological needs

Herzberg’s two factor theory (motivation-hygiene theory):

Main idea:

Hygiene factor: prevent dissatisfaction but does not boost motivation. (salaries, wages ,working
environment and job security).

Motivators: boost motivation. (recognition, responsibilities, achievements and decision making. )

Financial rewards:
Managers needs to ensure that payments are sufficient to retain and attract employees.

Remuneration: is the overall financial package of a person.

-financial remuneration package can help to improve employee motivation, morale, productivity,
loyalty and performance.

 Salaries: paid monthly

 Wages: paid according to time and output.(time rate or piece rate)

Piece rate payment systems reward workers based on their output or productivity.

Although piece rate can improve staff motivation, it can create unnecessary conflict and
competition between employees.

 Commission: type of financial payment system that rewards workers a certain percentage
of the sales of each good or service that they are responsible for completing.

It encourages employees to sell more products and it’s a common used payment system
for sales staff to increase their productivity.

commission can be harmful to team members if it encourages unhealthy competition

between colleagues and can cause a hostile culture in the workplace.

They are also paid salaries.

 Performance-related pay (PRP):

It is a financial reward system that pays employees bonus for exceeding or reaching their
target .

It can be in the form of cash bonuses or result in higher wages or salaries.

 Profit-related pay(PRP):

is a type of financial reward system which remunerates workers a certain percentage of the
annual profits that the business earns. It is rewarded on top of an employee’s salary or
wages.
Profit-related pay let workers be more productive, and to work hard in order to meet the profit
targets. It can also be used to create employee loyalty, as senior staff may earn a higher
percentage or amount of the profits.
However, this financial reward system can be costly to a business, as profits are shared with
employees. In addition, it can be rather demotivating if workers narrowly miss their profit targets
especially if they are unrealistic targets.

 Employee share ownership schemes(esos):

 It is a type of financial payment system that involves giving workers shares in the company
they work for.

its given to employees by:

-The company gives employees several shares, freely without any charge

- Employees are offered the opportunity to purchase shares at a discounted price

It encourages the employees to increase productivity and efficiency of the organization to earn a
profit for the organization. Because the greater the profit earned the larger the dividends .

Esos is expensive for the company.

 Fringe benefits:

are financial benefits of a job in addition to the basic pay.

E.g:medical insurance or gym membership,…

Businesses provide fringe benefits as a form of financial motivation. However, there are also tax
benefits as some fringe benefits are exempt from tax. Businesses such as Google offer a wide
variety of attractive fringe benefits, which helps to build a better corporate image as caring
employers.

Types of non-financial rewards:

 Job enrichment:

Enhancing the experiences and skills of the employee by giving them challenging tasks.

Employer gain a more motivated skilled workforce.

Adv Dis adv.

Self esteem for emploees Emploees may feel pressure by extra task
and responsibility

Encourage emploees to be more productive Emploeeses may ask for appropriate

remunation

Extra tasks lead to promotion Its costy.(training,upskilling workers)

Emploees are recognized t is not appropriate for many job roles or

unskilled workers
  Job rotation: workers working on different jobs within the organization not only
single task.
Swapping tasks
It helps to spread the range of skills and expertise within the business. here is the greater

Adv. Disadv.

Reduce boredom.
can be both time consuming and expensive.
workers are more flexible and adaptable
Because of the higher training cost to ensure
because they are now multiskilled
employees are upskilled.
Introduce variety

Upskilling of staff helps to make it easier to

cover for absent colleagues

It enables the employer to benefit from a Some employees see this is workload,
more widely trained workforce especially without remuneration

 Job enlargement:
Added task but at the same level of responsibility:
Disadv:
Can reduce productivity as workers may be less efficient at completing a whole task

Increased workloads may become unmanageable or unsustainable for some workers.

 Empowerment: is the delegation of decision-making power to workers.

Delegation:
Autonomy : The ability to make informed decisions in an independent or self-governing way.
Employee participation : This means that workers are given responsibilities and autonomy to do their
jobs.
Continuous professional development (CPD) : Training and learning activities to enhance the professional
practice and capabilities of employees

 Purpose:

people believe they do genuinely meaningful work.

 Teamwork

Types of training:
Training is the process of instructing and teaching employees how to perform certain tasks in their
job. It also enables workers to develop their level of skills and expertise for the workplace and to
meet the needs of the organization.
  Induction:

Mentoring involves pairing, or attaching, an employee (the trainee or mentee) with a more
experienced colleague (the mentor) who acts as a coach, trainer or advisor. The mentor provides
advice and support to the less experienced workers in matters related to their roles and
responsibilities at work. The trainee carries out his or her job, but seeks guidance from the mentor
should problems arise.

Advantages of induction training

 Induction helps to welcome and settle new colleagues, thereby improving their morale (first
impressions count).
 It can increase employee commitment and job satisfaction.
 Helps new workers to understands the organization’s values and culture, thereby enabling the
recruits to integrate quickly.
 Appropriate induction training helps new recruits to become productive as fast as possible.

Disadvantages of induction training

 Induction training takes time and effort to plan and execute successfully.
 New staff can become overwhelmed with the vast amount of new information they need to
retain.
 Managers leading the induction are unable to get their own work done, so this can overburden
line managers too.

 On the job training takes place within the organization so employee are performing
work tasks. Hence, employees do not leave the workplace

Advantages of on the job training

 It is cheaper than using off the job training as in-house (internal) specialists are used
rather than hiring a venue and/or external specialists to provide the training.
 Training is focused and personalised, as it is targeted to the specific needs of the
employees and organization. Hence, on the job training is directly relevant to the needs
of the organization, whereas off the job training can sometimes be less purposeful.
 There are fewer disruptions for the organization as the employers are at work, so can get
on with their at least parts of their jobs.
 It can improve professional dialogue between colleagues and create better professional
working relationships.
 For the individual worker, it can increase their level of morale and motivation, as they are
more skilled and gain increased job satisfaction.

Disadvantages of on the job training

 Even though the employees are at work, on the job training can still be disruptive - while
the staff are being trained at learning new skills, their workflow is interrupted.
  In-house training is often unfeasible as employees may lack the necessary expertise to
run the training.
 Trainees and mentees might take short cuts as they learn the bad working habits of their
trainer or mentor.
 Mentors and trainers cannot get their own work done during the time they deliver training
to other staff. In addition, its take time to plan and deliver training that is purposeful and
effective.
 As with any form of training, there is no guarantee that the employees will continue to
work at the organization once they have been upskilled.

 Off the job training is training led by external specialists and takes place away from the
place of work.

Advantages of off the job training

 As the training takes place off-site, off the job training minimises distractions. This
enables workers to focus on their training and learning.
 The training is conducted by specialists and experts, so is likely to be professionally
organized. In addition, the expertise may simply not be available within the organization.
 It caters for a very wide range of skills and qualifications, such as first aid training, health
and safety, and wellbeing.

Disadvantage of off the job training

 Off the job training is not always directly related to the job context, so employees may
find this less valuable.
 It is more expensive than on the job training. For example, employers may to pay for
training course fees, travel expenses, insurance and meal allowances.
 There is lost productivity whilst the employees are away from work in order to attend the
training.
 Like on the job training, there is no guarantee that workers who gain new skills and
higher qualifications will decide to stay at the organization, as they may be more
attractive to another employer who is prepared to pay more to hire these workers.