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Chapter 22: Developing and retaining an effective workforce

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1 Chapter 22: Developing and retaining an effective workforce
Motivating Employees

2 Theories of Motivation: Scientific Management and F.W. Taylor
Considered money to be the main factor that motivated workers, so he emphasised the benefits of piecework, where workers are paid according to how much they produce. Extreme division of labour – where a job is broken down into small, repetitive tasks, each of which can be done at speed and with little training (Specialisation) Tight management control – which ensures that workers concentrate on their jobs and follow the correct processes. **Saw humans as machines with financial needs**

3 Theories of Motivation: Elton Mayo and the Hawthorne Effect
Emphasised the importance of human relations in the workplace and suggested: Recognition, belonging and security are more important in motivating employees than simply money and working conditions Work is a group-based activity and employees should be seen as members of a group Managers need to pay attention to individuals’ social needs and the influence of the informal groups to which they belong Managers must communicate with informal groups, ensuring that their goals are in tune with those of the organisation Increases of output are due to greater communication and improved relations in informal groups

4 Motivation Theories: Maslow’s hierarchy of needs
He said the people have 5 types of needs that they try to satisfy. Once the first set of needs has been satisfied, it no longer works as a motivator so people move on to the next set of needs. Self-Actualisation Needs Esteem Needs Social Needs Safety Needs Basic Needs The satisfaction gain from realising personal ambition or personal targets People need to feel they belong, they want to be part of a group + enjoy friendship Food, clothing and shelter – the basic necessities of life People need to feel respected by others for their abilities. People need to be sure + feel secure that they can continue to survive.

5 Motivation Theories: Herzberg’s Two-Factor theory of job satisfaction and dissatisfaction
Motivators (factors that motivate and give job satisfaction): A sense of achievement Recognition for effort and achievement The nature of the work itself Responsibility Promotion and improvement opportunities Hygiene Factors (can reduce job dissatisfaction): Company policy and administration, which includes paperwork Supervision (especially if workers feel that they are over-supervised Pay Interpersonal relations, especially with supervisors and peers Working conditions

6 Using financial methods to motivate employees
Time rates Piecework Performance-related pay Profit sharing Share ownership and share options Fringe benefits

7 Non-financial methods of motivating employees
Job enrichment (a means of giving employees greater responsibility and offering them challenges that allow them to utilise their skills fully) Job enlargement (increasing the scope of a job, either by job enrichment or by job rotation) Empowering employees Working in teams

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