Motivation Theory: The study of factors that influence the behaviour of people in the workplace.
Scientific Management: Business decision making based on data that are researched and tested quantitatively in order to improve the efficiency of an organisation.
Links between Maslow and Hertzberg
Intrinsic Rewards
Rewards that come from the job itself
e.g. responsibility, achievement of tasks etc...
Hertzberg's motivators and Maslow's esteem and self-actualisation
Extrinsic Rewards
Rewards that DO NOT come from the job itself but by means of association.
e.g. Working conditions, fringe benefits, making friends etc...
Hertzberg's hygiene factors and Maslow's physiological, safety and social needs.
Random question:
Q: What is Appraisal?
A: Appraisal is the meeting of an employer and an employee to discuss targets, issues, achievements and work.
Financial and Non-financial Motivators
Financial Methods
1. Time Rates
- Wage or a salary
- Safety need in Maslow's Hierarchy of needs.
- Paid according to input rather than output
- Motivation to work not guaranteed
2. Piece-work (Payment based on the number of items each worker produces)
- Refers to Taylor's theory
- Payment according to output
- Designed as an incentive to work harder
- Could sacrifice quality for quantity
- Costs could increase through carelessness, waste and reduced quality
- A firms output may be heavily influenced by worker's needs rather than customer demand. Output tends to increase at Christmas and summer holidays.
- Only movement not motivation (as shown by Herzberg)
3. Performance-related Pay (A bonus or increase in salary usually awarded for above-average employee performance)
- An overall increase in salary or a bonus given for performance above expectations.
4. Profit Sharing (A financial incentive in which a proportion of a firm's profit is divided among its employees in the form of a bonus paid in addition to an employee's salary)
- Basing employee's rewards on the performance of the company.
5. Share Ownership
Companies give shares to their employees or sell them at favourable rates below the market price.
- Used to encourage employees to identify more directly with company objectives, recognising that their rewards - share value and dividends - are dependant on company performance.
6. Share Options
A financial incentive in which chief executives and senior managers are given the choice of buying a fixed number of shares at a fixed price, by a given date.
- Are believed to provide senior management with the incentive to perform at their very best.
- Some people believe they it would only be short-term until the share option is due, in order to make a profit from the sale of shares. It is not long-term focussed.
- Unfair as excessive financial rewards given to senior managers when the workforce may deserve just as much credit as the directors.
7. Fringe Benefits
Benefits received by employees in addition to their wages or salary.
e.g. discounts when buying the firm's products, a company car or a company pension scheme.
- Encourages staff loyalty and commitment
- Reduces labour turnover
Non-financial methods of Motivation
1. Job enrichment
A means of giving employees greater RESPONSIBILITY and offering them CHALLENGES that allow them to utilise their skills fully.
- Herzberg suggested only job enrichment is likely to provide long-term job satisfaction.
- Enriched jobs introduce new and more difficult tasks and challenges at different ability levels.
- An enriched job involves a complete task which is meaningful rather than a repetitive part of a larger process - said by Taylor.
- Regular feedback on performance so employee is aware of how well they are performing.
- Increase accountability of individual for his/her own work (e.g. Lush)
2. Job enlargement
Increasing the SCOPE of a job, either by job enrichment or by job rotation.
- Gives: more recognition, improves promotional prospects and job achievement in themselves.
- If not used carefully --> Demoralise workforce by giving excessive workloads.
Job enrichment is where the job is expanded vertically (vertical extension) by giving workers more responsibility.
Job rotation is where the job is expanded horizontally (horizontal extension) - giving workers more tasks but the same level of responsibility.
Job Rotation
- Systematic programme of witching jobs
- Greater variety
- Varied work but same level of challenge.
Advantages of Job Rotation:
- Relieve boredom
- Useful if 1 person is absent --> Others can cover job without difficulty
- More motivated --> Wider range of skills + be more flexible
- Greater sense of participation in production process.
- Retraining cost Increase
- Decrease in output due to less specialisation
- Could be seen as involving greater number of boring tasks, but lacking in social benefits of working as groups constantly change.
3. Empowering Employees
Empowerment is = giving employees the means by which they can exercise power over their working lives.
- The freedom to decide what to do and how to do it.
- Achieved through informal systems or formals systems of autonomous work groups
--> These provide workers with autonomy and decision-making powers, and aim to increase motivation while improving flexibility and quality- adding value to the organisation.
Empowerment involves:
- Recognising workers who are capable of doing more
- Make workers feel trusted, confident in their jobs and make decisions without supervision
- Recognise workers' achievements
- Create an environment where workers wish to contribute and be involved.
3. Teamworking
Teamworking is = A system where production is organised into LARGE UNITS OF WORK and a GROUP of employees work together in order to meet shared objectives.
- By using Teamworking, an organisation gets a more motivated, flexible workforce that can cover absences more easily.
- Used with job rotation/job enrichment and decision-making --> Team work can enhance motivation and relieve boredom.
- Teamworking can be linked to Mayo (group norms) and Maslow (Social Needs)
Links between organisational structure and the motivational techniques available to managers
1. Flat organisation
- With wide span of control
- Effective delegation could empower employees by giving them more autonomy an responsibility --> Improving Motivation
- Recognition (Mayo and love and belonging needs)
- Profit Sharing?
2. Tall organisation
- Good communication is crucial in maintaining high levels of motivation
Solution: Vertical meetings, teamwork/cross jobs
Lines of Accountability
Must be clear --> Easier to recognise achievement --> To reward this -->Improved Motivation.
Communication
- Employees feel valued and important part of the organisation
- Raises morale
- Regular feedback on employee performance is needed
- Good communication is likely to mean that employees are praised for their efforts --> Maslow (Esteem needs) --> Improve motivation.
- Also good communication can help to make employees feel involved and meet their social needs (Maslow)
- Effective feedback is one of Herzberg's motivators.
Flexible working
- Allowing employees to work more flexibly
- Improved Staff motivation
- Increased productivity
- Improved client service
- Reduced absenteeism
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