Motivation

What is motivation? Motivation is concerned with the desire to do something or achieve a particular result. Having motivated employees results in: Greater productivity Better quality products or service Lower staff turnover Reduced absenteeism

Monetary methods of motivation Fringe benefits Examples include company cars and discount vouchers. May not encourage greater productivity but often build company loyalty. Bonuses A payment usually related to the achievement of a target. Usually easier to apply to sales or production rather than the provision of a service. Profit share Employees are encouraged to ensure that the business is profitable. However it is usually spread evenly between both hard-working and less hard-working staff.

Monetary methods of motivaiton Commission Payments are made in relation to the number or value of sales made. Encourages increased sales but may lead to heavy-handed selling techniques. Piece rate Payments are made per item produced. Encourages productivity but sometimes at the expense of quality. Overtime Additional payment made for extra hours worked. Can provide greater flexibility to the workforce but may result in lower productivity during normal working hours if employees know they can access overtime payments.

Non-monetary methods of motivation Job rotation Employees 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 enlargement Workers 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 enrichment Giving 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.

Non-monetary methods of motivation Empowerment Allowing workers greater autonomy. They have greater freedom and power to control their own working lives. Team-working Involves organising workers into groups, setting team goals and awarding team rewards for achieving targets. Team-working fits with Mayo’s findings. Participation Employees participate in organisational decision-making through such things as quality circles and works councils.

Motivational theorists It is useful to know 2 or 3 motivational theories from the following list: Maslow’s hierarchy of needs Taylor’s theory of scientific management Mayo’s theory of human relations Herzberg’s two-factor theory

Need Theory People are motivated to obtain outcomes at work to satisfy their needs. A need is a requirement for survival. To motivate a person: 1)Managers must determine what needs worker wants satisfied. 2)Ensure that a person receives the outcomes when performing well. Several needs theories exist. Maslow’s Hierarchy of Needs. Alderfer’s ERG.

Lower level needs must be satisfied before higher needs are addressed. Hierarchy of Needs Table 12.1 Need Level Description Examples Self- Actualization Realize one’s full potential Use abilities to the fullest Esteem Feel good about oneself Promotions & recognition Belongingness Social interaction, love Interpersonal relations, parties Safety Security, stability Job security, health insurance Physiological Food, water, shelter Basic pay level to buy items Lower level needs must be satisfied before higher needs are addressed.

Alderfer’s ERG Table 12.2 Self-development, creative work Growth Self-development, creative work Worker continually improves skills Relatedness Interpersonal relations, feelings Good relations, feedback Existence Food, water, shelter Basic pay level to buy items Lowest Highest Need Level Description Examples After lower level needs satisfied, person seeks higher needs. When unable to satisfy higher needs, lower needs motivation is raised.

Motivation-Hygiene Theory Focuses on outcomes that can lead to high motivation, job satisfaction, & those that can prevent dissatisfaction. Motivator needs: related to nature of the work and how challenging it is. Outcomes are autonomy, responsibility, interesting work. Hygiene needs: relate to the physical & psychological context of the work. Refers to a good work environment, pay, job security. When hygiene needs not met, workers are dissatisfied. Note: when met, they will NOT lead to higher motivation, just will prevent low motivation.

Goal Setting Theory Focus worker’s inputs in the direction of high performance & achievement of organizational goals. Goal is what a worker tries to accomplish. Goals must be specific and difficult for high performance results. Workers put in high effort to achieve such goals. Workers must accept and be committed to them. Feedback on goal attainment also is important. Goals point out what is important to the firm. Managers should encourage workers to develop action plans to attain goals.