Motivation The reason why people want to work. Incentives Encouragement Enthusiastic Drive

Content Motivation theory: Taylor Maslow Herzberg McGregor’s Theory X & Theory Y Mayo Non monetary motivation: Job enrichment Job enlargement Empowerment Team Working Financial Motivation: Piecework Salaries and wages Fringe benefits Performance related pay Profit share Share ownership Leadership and management styles: Authoritarian Paternalistic Democratic

F.W. Taylor Taylor did lots of work in factories and believed that workers should be told how to do a job quickly He believed they should be closely monitored & told what to do He devised a PIECE RATE system He believed workers could only be motivated by money

Maslow’s theory Maslow argued that workers have a hierarchy of needs. The top two are higher-order needs. Maslow argued that the need not achieved acts as the motivator. The first three are lower-order needs.

Herzberg According to Herzberg motivating factors are split into two groups: 1.  Hygiene factors- salary and security. Improving these lowers dissatisfaction but doesn't improve motivation or satisfaction 2. Motivators- recognition, responsibility, work itself, achievement, advancement - these lead to increased motivation

Herzberg Hygiene Factors Motivators Factors Herzberg’s 2-factor theory (hygiene/motivation) The absence of hygiene factors causes de-motivation, whereas the presence of hygiene factors does not cause motivation. The absence of motivators does not cause de-motivation, whereas the presence causes motivation. Hygiene Factors Motivators Factors

Mayo Mayo looked at motivation in the Hawthorne laboratories in the USA Found that just by being studied the subjects levels of motivation increased Highlighted the importance of team work and group dynamics to motivation

McGregor X Y

McGregor’s Theory Theory X Managers Believe that workers He believed there were 2 types of managers that affected motivation Theory X Managers Believe that workers Don’t like working Do as little work as possible Can’t be trusted Only interested in pay Must be told what to do Theory Y Managers Believe that workers Enjoy their work Work hard to gain rewards Can be trusted Are motivated by factors other than pay Can work independently

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Pair work Financial motivators: Non-Financial motivators: Wages Salaries Piece rate Commission Profit sharing Bonus Performance related pay Non-Financial motivators: Fringe benefits Job satisfaction Job rotation Job enlargement Job enrichment

Non Monetary Forms of Motivation- Job Enrichment When employees jobs are redesigned to provide them with more challenging and complex tasks Increase in the range of tasks an individual does Workers have more responsibility for their own management Workers are able to identify and solve any problems that they encounter Gives workers training to improve skills so can meet increased job demands

Job Enlargement Giving employees more duties of a similar level of difficulty Employees have more jobs to do at the same level Workers carry out a range of duties rather than a single duty which helps to increase motivation

Employee Empowerment Empowerment – the process of giving workers a greater control over their work It can make work more interesting as suits individual needs Needs training and time to be effective

Team working Where organisations break down production into large units where each unit is responsible for a particular area Fulfils individuals social needs which helps to increase motivation Teams can include: Production teams Quality circle teams Management teams

Monetary Forms of Motivation – Piecework Employees paid due to quantity produced Now with minimum wage legislation employers need to ensure piece workers hit the threshold

Salaries and Wages Salaries – annual and paid monthly If you get a salary work a set number of hours as set out in contract Wages – paid weekly Have to be at work for a set time, paid overtime for any extra hours Salaries and wages are often seen as the key motivator for an individual to work

Fringe benefits Rewards received by employees in addition to their wages or salary Often classified as “perks” of the job Examples: Company car Lunch Private health care Pensions These can increase employee loyalty

Performance Related Pay (PRP) Some of an employees pay is linked to the achievement of targets at work Targets may be sales targets or performance appraisal

Criticisms of PRP Many employees see this as unfair as can be based on an appraisal interview Lots of businesses don’t put sufficient money aside so employees only get a small bonus

Developments in PRP Increasingly firms are using a system called Variable pay This a flexible type of PRP which offers employees a highly individual pay system related to their performance Higher rewards for star performers

Profit Sharing Employees receive part of the business profits Profits can be paid in cash / shares This helps motivate the workers to earn the company profit as they see the financial incentive for themselves – this can raise efficiency and productivity in the organisation

Share Ownership These can be either: Allowing employees opportunity to purchase shares after saving for a period of time Share options – mangers have the opportunity to buy company shares on an agreed date in future at current rate Having share options increases the feeling of ownership for an employee acting as an incentive for them to work harder

Leadership Influencing others to achieve certain aims or objectives. Effective leadership skills can help a manager carry out their duties

Leadership Styles - Authoritarian Senior managers take decisions with little involvement of juniors Sets objectives Allocates tasks Leader retains control throughout Communication goes down from leader to consumer

Paternalistic Dictatorial, but decisions are taken in best interests of employees Explains decisions Ensures workers social / leisure needs met Communication mainly downward but some feedback

Democratic Leadership Running a business based on majority decisions Encourages employees to take part in decision making Uses delegation Extensive two way communication

Summary Taylor says that people are motivated by money – scientific management Maslow developed hierarchy of needs that need to be fulfilled Herzberg – 2 factor theory hygiene factors and motivators Mayo – non monetary motivation Non monetary motivation includes job enrichment, job enlargement, empowerment and team working People are also motivated by money, this can be the form of salaries / wages, performance related or can take the form of fringe benefits, profit share and shares An Authoritarian manager makes all decisions A Paternalistic manager makes decisions with the agreement of workers A Democratic manager runs a business on majority decisions McGregor’s Theory X and Theory Y – Theory X = monetary motivation, Theory Y = non monetary motivation

What have we learnt? Discuss with a partner before you share it with the class