2What is motivation?Motivation is concerned with the desire to do something or achieve a particular result.Motivated employees result in:Greater productivityBetter quality products or serviceLower staff turnoverReduced absenteeism
3Monetary methods of motivation Fringe benefitsExamples include company cars and discount vouchers. May not encourage greater productivity but often build company loyalty.BonusesA payment usually related to the achievement of a target. Usually easier to apply to sales or production than the provision of a service.Profit shareEmployees are encouraged to work hard to ensure that the business is profitable, however, it is usually spread evenly between both hardworking and less hardworking staff.
4Monetary methods of motivation CommissionPayments are made in relation to the number or value of sales made. Encourages increased sales but may lead to heavy handed selling techniques.Piece ratePayments are made per item produced. Encourages productivity but sometimes at the expense of quality.OvertimeAdditional payment made for extra hours worked. Can provide greater flexibility to the workforce but may result in low productivity during normal working hours so employees can access overtime payments.
5Non-monetary methods of motivation Job rotationEmployees move between different jobs e.g. on a production line. Results in flexible, multi-skilled staff but ultimately workers may just be moving from one boring job to another.Job enlargementWorkers are given a wider variety of different tasks to carry out although there is no increase in the level of responsibility. This is sometimes called horizontal loading.Job enrichmentGiving employees the chance to fully utilise their abilities through, for example, providing a range of challenges, training workers and allowing them to demonstrate their skills.
6Non-monetary methods of motivation EmpowermentAllowing workers greater autonomy. They have greater freedom and power to control their own working lives.Team-workingInvolves organising workers into groups, setting team goals and awarding team rewards for achieving targets. Team-working fits with Mayo’s findings.ParticipationEmployees participate in organisational decision making through such things as quality circles and works councils.
7Motivational theorists It is useful to know 2 or 3 motivational theories from the following list:Maslow’s hierarchy of needsTaylor’s theory of scientific managementMayo’s theory of human relationsHerzberg’s two-factor theory
8Maslow Maslow’s Hierarchy of Needs The hierarchy starts with our basic physiological needs for survival.As each need is met, the next need up the hierarchy becomes the motivator.Workplaces can meet these needs e.g. pay provides the means to satisfy basic needs whereas training can provide for self-actualisation.One criticism of Maslow’s hierarchy is that workers may not seek to have all their needs met in the workplace.Self actualisationSelf esteemSocialSafetyPhysiological
9Mayo Mayo’s Theory of Human Relations Mayo’s experiments showed that: Teamwork is an important motivator.Managers should take an interest in their workersHe suggested that physical conditions and pay matter less than social interaction when motivating employees
10Herzberg Herzberg’s Two-factor Theory ‘Motivators’ can motivate but a lack of motivators does not cause dissatisfaction‘Hygiene factors’ can cause dissatisfaction but cannot motivateHerzberg’s Two-factor TheoryMotivators are factors that can motivate workers by providing job satisfaction.Motivators are concerned with the job itself and include achievement, recognition and the responsibilityHygiene factors are external to the job itself and can only cause dissatisfaction if not fulfilled.Hygiene factors include company policy, supervision, pay and working conditions.
11Taylor Taylor’s Theory of Scientific Management Taylor suggested that workers are only motivated by pay.Scientific management also states that the most efficient way to carry out a task should be identified and then carried out – giving rise to production assembly lines.Taylor supported close supervision and pay schemes that reward those that produce more.
13Importance of motivation Why is a motivated workforce important for organisations like Tesco? Use the Tesco case study to help youA motivated workforce:Achieves greater output in less time, thereby reducing labour costsRequires less supervision and demonstrates pride in its workIs less likely to make mistakesProvide better customer serviceIs less likely to be involved in conflictIs more loyal to the company
14Taylor and TescoTaylor suggested that workers are only motivated by money. Which of the following, provided by Tesco, are considered to be financial rewards?Christmas vouchersTrainingPension schemeFree shares after one year’s servicePositive feedbackThe financial rewards are:Christmas vouchersPensions schemeFree shares
15Maslow and TescoUse the Tesco case study to give examples of how Tesco can help fulfil the different needs in Maslow’s hierarchy.Basic – regular pay, essential facilities such as a restaurantSafety – formal contracts of employment, pension and sickness schemes and health & safety in the workplaceSocial – team and group working at various levels and a home-from-home ethosSelf-esteem – Tesco values emphasis self respect and the respect of others, feedback systems recognise individual contributionsSelf-fulfilment – opportunities for promotion and career progression, fast track management programmes
16Herzberg and TescoUse the Tesco case study to find examples of Herzberg’s ‘motivators’ that are provided by the organisation.Examples of motivators include:Delegating responsibilityInvolving staff in decision makingStaff forum meetingsRewards and recognises staff achievement
17Useful resourcesMotivation lesson suggestions and activities (The Times 100)Tesco case study (The Times 100)Tesco website