Theory and Motivation Chapter 14

Evaluate the merits of different systems in given situations A Lesson 5: Revison- Using the Specimen question paper Target Outcome Who? Keywords  Explain the role of work in satisfying human needs • Understand the concept of human needs such as physiological and social needs • Understand how work can help satisfy such needs C Identify the different methods of financial reward • Explain the different payment systems such as time rates, piece rates, bonus payments, performance rates and profit sharing • Understand the significance of different methods • Show understanding of non financial methods such as fringe benefits • Understand when benefits such as discounts on products, free accommodation, use of company car might be used B Evaluate the merits of different systems in given situations A 2

Why do we work?

Motivation: Motivation is the strength of commitment that individuals have to what they are doing Workplace motivation is concerned with commitment to an organisation and its objectives and targets. The factors which INSPIRE an employee to complete a task at work.

Motivation Theorists

Maslow’s Hierarchy of Needs

Activity Self-respect, confidence Proving what you can do Put these needs in order of importance Self-respect, confidence Proving what you can do Friendship, contact, love, sex Freedom, stability Creativity Food, shelter 8

Maslow’s Hierarchy of Needs Scope of new skills, meet new challenges and development of one’s full potential Self-actualisation Status, power, trust, recognition Self-esteem needs Team working, communication, social facilities Social needs Job security, a clear job role, clear lines of accountability Security Needs Pay levels and working conditions Basic Needs/Physical Needs

Theory X and Theory Y (McGregor)

Theory X and Theory Y (Douglas McGregor) Workers are motivated by money Workers are lazy and dislike work Workers are selfish, ignore the need of the organisation, avoid responsibility and lack ambition Workers need to be ontrolled and directed by management Theory Y Workers may have many different needs which motivate them Workers can enjoy work If motivated, workers can organise themselves and take responsibility Management should create a situation where workers can show creativity and apply knowledge to job.

Herzberg

Herzberg’s two factor theory Research into job satisfaction and dissatisfaction Based on 200 accountants and engineers in Pennsylvania, USA Asked to describe events that gave ‘good feelings’ about their jobs – Then probed why.

Herzberg’s two factor theory Five factors stood out: Achievement Recognition for achievement The work itself Responsibility Advancement

Herzberg’s two factor theory He pointed out that each of these factors concerned the job itself - rather than issues such as pay or status. Herzberg called these five factors ‘the motivators’.

Herzberg’s two factor theory The researches then asked about ‘Bad feelings’ about their jobs This revealed a separate set of five causes: Company policy and administration Supervision Salary Interpersonal relations Working conditions

Herzberg’s two factor theory He concluded that the common theme was factors which ‘surround the job’, rather than the job itself The name given to these dissatisfies was ‘hygiene factors’. This was because fulfilling them would prevent dissatisfaction, rather than cause motivation. ‘Careful hygiene prevents disease; careful hygiene factors prevent job dissatisfaction.

Activity Task 1: Note the key points of Maslow, McGregor and Herzberg. Pg 209 Task 2: Explain how the use each theorist would effect a business. Task 3: Evaluate the importance of motivation and motivation theories Key words Content Analysis Evaluation 23

Payment or Financial reward system

Pg 209 - list

Non-Financial rewards

Non-Financial Methods of Motivation Job Enlargement Job Enrichment Job Rotation Appraisal Scheme Pg 210

Match the job design, adv, disadv   Definition Advantages to the business Disadvantages to the business job enlargement movement between different jobs. Leads to multi-skilling. The ability to carry out several different jobs. Multi-skilling benefits the employer because staff shortages can be covered more easily. There will be training costs involved and employees may expect more pay job rotation Increasing the depth of the job by increasing the amount of discretion and authority for decision making the job holder has. Fewer problems with boredom, so mistakes are less likely, which reduces costs. High training costs: it may be difficult for the employee to balance new responsibilities with their existing work load. job enrichment including a wider variety of tasks within a job description. This is sometimes called horizontal loading and involves giving people more jobs to do that required the same level of skill. It allows employees to test and develop their managerial skills, which lead to an increase in internal recruitment opportunities. This system can be very complicated to organise, and the skill level achieved by an employee may not be the same for each job, causing variations in quality

Advantages to the business Disadvantages to the business Answers Job design Definition Advantages to the business Disadvantages to the business job enlargement including a wider variety of tasks within a job description. This is sometimes called horizontal loading and involves giving people more jobs to do that required the same level of skill. Fewer problems with boredom, so mistakes are less likely, which reduces costs. There will be training costs involved and employees may expect more pay job rotation movement between different jobs. Leads to multi-skilling. The ability to carry out several different jobs. Multi-skilling benefits the employer because staff shortages can be covered more easily. This system can be very complicated to organise, and the skill level achieved by an employee may not be the same for each job, causing variations in quality job enrichment Increasing the depth of the job by increasing the amount of discretion and authority for decision making the job holder has. It allows employees to test and develop their managerial skills, which lead to an increase in internal recruitment opportunities. High training costs: it may be difficult for the employee to balance new responsibilities with their existing work load.

Activity Task 1: Spider diagram how could a business use empowerment Task 2: Explain how the use of empowerment would effect a business Task 3: Evaluate the extent to which empowering employees can benefit a business Key words Content Analysis Evaluation 30

Why is motivation Important? In business all staff are motivated by their own needs. One method doesn’t work for everyone. Motivation is not static. People’s lives and priorities change. (so do their needs and the motivation) Motivation is important because it affects the efficiency of a business both in terms of quantity and quality.

Why is motivation Important? Analysis Productivity Quality Absenteeism Retention Industrial relations Public relations