 Motivation is the desire to complete a task quickly and effectively.  Can be classified as intrinsic and extrinsic: ◦ Intrinsic – comes from the satisfaction derived from working on and completing a task ◦ Extrinsic – comes from external rewards associated with working on a task, for example pay and other benefits  Motivated workers are highly productive, which means lower costs, and higher profits, for the business.

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 Low absenteeism (reduces costs and maintains high productivity)  Punctual (time is not wasted)  High quality work (minimal waste reduces costs)  Take more care and have fewer accidents as a result  Do not distract fellow workers unnecessarily

 Tend to stay longer at an employer (reduces recruitment costs)  When they move, it is for a positive reason (eg a better job)  Few grievances with the employer, resulting fewer disputes (so productivity remains high)  Respond positively and quickly to superiors in the organization  More likely to make suggestions and take on responsibilities

 High absenteeism rates – percentage of workforce that miss work without valid reasons  High labor turnover rates – number of staff who leave as a percentage of the total workforce  High wastage level – a high percentage of defective output or substandard work  Increasing number of customer complaints – because of the poorer quality of output

 Low-quality output – workers are more likely to make mistakes and care less about quality  Poor punctuality – poor timekeeping  Increasing number of disciplinary problems – corrective measures are put into place to deal less productive staff

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 Frederick Winslow Taylor  Abraham Maslow  Frederick Herzberg  Douglas McGregor

 Assumes workers are motivated only by personal gain (i.e. money).  Broke jobs down into a series of processes, then worked out how much output each employee should be able to produce each day.  Treated workers like machines.  Promoted the use of division of labor and specialization in the production process to improve efficiency and output.

 Too simplistic (people are motivated by many things).  Increasing wages does not always lead to increased output.  It can be hard to measure the output of some workers e.g. a teacher or a police officer.

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 Proposed a hierarchy of needs.  Workers are motivated by certain needs. Once a need has been met, they are motivated by the needs of the next level.

Maslow’s Hierarchy of needs

 Some levels do not exist for certain people.  Some rewards can fill several needs (e.g. money can provide food, security and status).

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 Identified TWO sets of needs; Hygiene Factors and Motivating Factors.  Hygiene factors do not motivate workers, but if they are not present they can demotivate them instead (salary; relationship with supervisor and fellow workers).  Motivating factors include being recognised for work done, achieving goals, personal development, and interesting work.

 Identified two types of manager.  A Theory X manager believes workers dislike work, are naturally lazy, and must be pushed hard to work by constant supervision, offering incentives (eg extra payments) and the threat of punishments.  A Theory Y manager believes work is natural and that workers are happy to do it. Also, workers like to be given responsibilities, and they seek self-actualisation. Workers are motivated by a working environment that helps them to do their work.

 McGregor believes that workers will be highly motivated in an environment where Managers provide help and support rather than adopt supervisory roles and impose discipline  Note, Taylor’s view of employees is like a Theory X manager.

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 Wages (time and piece rates)  Salary (fixed annual rate)  Commission  Profit-related pay  Performance-related pay  Employee share ownership schemes  Fringe payments (benefits or perks)

 Job enrichment – gives workers more challenging jobs with more responsibilities  Job enlargement – broadening or increasing the number of tasks that an employee performs  Empowerment – granting workers the authority to be in charge of their own jobs and to execute their own ideas  Teamworking – staff work with fellow employees

 Recognition and praise  The working environment  Continuous professional development  Delegation  Worker participation