PEOPLE IN BUSINESS

BY SHARIFAH KATENDE
 This chapter will explain,
Why people work and what motivation means
The benefits of a well-motivated
workforce,labour productivity, reduced
absenteeism and labour turnover
MOTIVATI The concept of human needs,eg Maslow’s
NG hierarchy
Key motivational theories: Taylor and Herzberg
EMPLOYEE Financial rewardseg wage, salary,
S bonus,commission and profitsharing
Non-financial methods eg job enrichment,job
rotation,teamworking,training,opportunities for
promotion
Recommend and justify appropriate methods of
motivation in given circumstances
MOTIVATION

DEFINITION TO LEARN
Motivation is the reason why
employees want to work hard and
work effectively for the business
WHY PEOPLE
WORK

• Have a better standard of living: by

earning incomes they can satisfy their
needs and wants
• Be secure: having a job means they
can always maintain or grow that
standard of living
• Gain experience and status: work
allows people to get better at the job
they do and earn a reputable status in
society
• Have job satisfaction: people also
work for the satisfaction of having a
job
•Motivation is the reason why
employees want to work hard and
work effectively for the
business. Money is the main
motivator, as explained above. Other
factors that may motivate a person to
choose to do a particular job may
include social needs (need to
communicate and work with
others), esteem needs (to feel
important, worthwhile), job
satisfaction (to enjoy good
work), security (knowing that your job
and pay are secure- that you will not
lose your job).
 Why do firms go to the pain of
making sure their workers are
motivated? When workers are
well-motivated, they become
highly productive and effective
in their work, become absent
less often, and less likely to
WHY MOTIVATE leave the job, thus increasing
the firm’s efficiency and output,
WORKERS? leading to higher profits. For
example, in the service sector, if the
employee is unhappy at his work,
he may act lazy and rude to
customers, leading to low customer
satisfaction, more complaints and
ultimately a bad reputation and low
profits.
BENEFITS OF A WELL MOTIVATED
WORKFORCE
• Increased employee`engagement
• Higher productivity and performance
• Better customer service
• Greater levels of creavity and innovation
• Improved manager employee relationships
MOTIVATION THEORIES

F. W. Taylor: Taylor based his ideas on the assumption that workers were
motivated by personal gains, mainly money and that increasing pay
would increase productivity (amount of output produced). Therefore he
proposed the piece-rate system, whereby workers get paid for the
number of output they produce. So in order, to gain more money, workers
would produce more. He also suggested a scientific management in
production organisation, to break down labour (essentially division of
labour) to maximise output
However, this theory is not entirely true. There are various other motivators
in the modern workplace, some even more important than money. The
piece rate system is not very practical in situations where output cannot be
measured (service industries) and also will lead to (high) output that
doesn’t guarantee high quality
 Maslow’s Hierarchy: Abraham
Maslow’s hierarchy of needs shows
MASLOW’ that employees are motivated by
S each level of the hierarchy going
from bottom to top. Mangers can
HIERARCH identify which level their workers are
on and then take the necessary
Y action to advance them onto the
next level.
 HERZBERG’S TWO-FACTOR THEORY
Frederick Herzberg’s two-factor
Needs that allow the human
theory, wherein he states that
being to grow
people have two sets of needs:
psychologically, called the
Basic animal needs called
‘motivators’:
‘hygiene factors’:
• status • achievement
• security • recognition
• work conditions • personal growth/development
• company policies and • promotion
administration • work itself
• relationship with superiors
• relationship with subordinates
• salary
 According to Herzberg, the hygiene
factors need to be satisfied, if not
they will act as de-motivators to the
workers. However hygiene factors
CONTI don’t act as motivators as their effect
quickly wear off. Motivators will truly
motivate workers to work more
effectively.
FINANCIAL
REWARDS/
MOTIVATORS

• Wages: often paid weekly. They can be

calculated in two ways:Time-Rate: pay based
on the number of hours worked. Although
output may increase, it doesn’t mean that
workers will work sincerely use the time to
produce more- they may simply waste time on
very few output since their pay is based only
on how long they work. The productive and
unproductive worker will get paid the same
amount, irrespective of their output.
• Piece-Rate: pay based on the no. of
output produced. Same as time-rate, this
doesn’t ensure that quality output is produced.
Thus, efficient workers may feel demotivated
as they’re getting the same pay as inefficient
workers, despite their efficiency
 • Salary: paid monthly or annually.
• Commission: paid to salesperson, based on a
percentage of sales they’ve made. The higher
the sales, the more the pay. Although this will
encourage salespersons to sell more products
and increase profits, it can be very stressful for
them because no sales made means no pay at
all.
• Bonus: additional amount paid to workers for
CONT.. good work
• Performance-related pay: paid based on
performance. An appraisal (assessing the
effectiveness of an employee by senior
management through interviews, observations,
comments from colleagues etc.) is used to
measure this performance and a pay is given
based on this.
 • Profit-sharing: a scheme whereby
a proportion of the company’s
profits is distributed to workers.
Workers will be motivated to work
better so that a higher profit is
made.
CONT.. • Share ownership: shares in the
firm are given to employees so that
they can become part owners of the
company. This will increase
employees’ loyalty to the company,
as they feel a sense of belonging.
 • Fringe benefits are non-
financial rewards given to
NON- employees
• Company vehicle/car
FINANCIAL • Free healthcare
MOTIVATO • Children’s education fees paid
for
RS • Free accommodation
• Free holidays/trips
• Discounts on the firm’s
products
JOB SATISFACTION

Refers to the enjoyment derived from the feeling that

you’ve done a good job.
Employees have different ideas about what motivates them- it
could be pay, promotional opportunities, team involvement,
relationship with superiors, level of responsibility, chances for
training, the working hours, status of the job etc.
Responsibility, recognition and satisfaction are in particular
very important.
So, how can companies ensure that they’re workers are
satisfied with the job, other than the motivators mentioned
above?
 Refers involves workers swapping around
jobs and doing each specific task for only a
limited time and then changing round again.
This increases the variety in the work itself and
will also make it easier for managers to move
JOB around workers to do other jobs if somebody is
ill or absent. The tasks themselves are not
ROTATION. made more interesting, but the switching of
tasks may avoid boredom among workers. This
is very common in factories with a huge
production line where workers will move from
retrieving products from the machine to
labelling the products to packing the products
to putting the products into huge cartons.
 where extra tasks of similar level
of work are added to a worker’s
job description. These extra tasks will
JOB not add greater responsibility or work
ENLARGEMEN for the employee, but make work
T more interesting. E.g.: a worker hired
to stock shelves will now, as a result
of job enlargement, arrange stock on
shelves, label stock, fetch stock etc.
 involves adding tasks that require
more skill and responsibility to a
job. This gives employees a sense of
trust from senior management and
JOB motivate them to carry out the extra
tasks effectively. Some additional
ENRICHMEN training may also be given to the
T employee to do so. E.g.: a
receptionist employed to welcome
customers will now, as a result of job
enrichment, deal with telephone
enquiries, word-process letters etc
•Team-working: a group of workers is given responsibility for a particular process,
product or development. They can decide as a team how to organize and carry out
the tasks. The workers take part in decision making and take responsibility for the
process. It gives them more control over their work and thus a sense of commitment,
increasing job satisfaction. Working as a group will also add to morale, fulfill social needs
and lead to job satisfaction.
•Opportunities for training: providing training will make workers feel that their work is
being valued. Training also provides them opportunities for personal growth and
development, thereby attaining job satisfaction
•Opportunities of promotion: providing opportunities for promotion will get workers to
work more efficiently and fill them with a sense of self-actualisation and job satisfaction
•