Motivation

It is the drive one has to achieve something

This drive can be within (Intrinsic) or without(Extrinsic)
Achieving personal goals and organizational goals

High Productivity

Signs of poor motivation

(Table on page138)
Absenteeism Deliberate absence for which there is not a
satisfactory explanation; often follows a pattern
Lateness Often becomes habitual
Poor Performance Poor-quality work; low levels of work or greater
waste of materials
Accidents Poorly motivated workers are often more
careless, concentrate less on their work or
distract others, and this increases accidents
Labour Turnover People leave for reasons that are not
positive;even if they do not get other jobs, they
spend time in trying to do so
Grievances There are more of them within the workforce
and there might be more union disputes
Poor Response rate Workers do not respond very well to orders or
leadership and any response is often slow

Theories of Motivation

Motivation in theory: how can workers be

motivated to work well?
There are many theories of motivation, but in this chapter we will concentrate on six of the best-
known theorists. You are advised to read about others too and feel free to use
the ideas of other theorists in situations you come across during your studies.

1. Taylor - Engineer/scientist
- Economic man - money (piece rate)
2. Mayo - Social beings - Teamwork
3. Maslow - Top 1. self-actualization
2. Esteem Needs
3.Social needs
4. Security needs
5. Physiological needs
4. Herzburg - Hygiene factors

Taylor (1856-1915) and scientific management

F.W. Taylor made the first serious attempt to analyse worker motivation in order to advise
management on the best ways to increase worker performance or productivity. The techniques
he used - of establishing an idea or a hypothesis, studying and recording performance at work,
altering working methods and recording performance are still used in modern industry. This
approach has become known as `scientific management’ due to the detailed recording and
 analysis of result that it involves. Taylor’s main aim was to reduce the level of inefficiency that
existed in US manufacturing industry. Any productivity gains could then, he argued, be shared
between business owners and workers. The scope for efficiency gains in early twentieth- century
manufacturing rate’. This means paying workers a certain amount for each unit produced. To
encourage high output, a low rate per unit can be set for the first units produced and then higher
rates become payable if output targets are exceeded.

Result of Taylor’s work

The results of Taylor’s research revolutionised the way work was organized in many industries.
The emphasis on increasing efficiency and productivity was greeted by industrial leaders as a
route towards greater profits. Workers’ leaders were more suspicious as they believed that it
would lead to more work but no more pay benefits. They did not neccessarily believe Taylor’s
view that the fruits of higher efficiency would be shared between workers and business owners.
The Taylor approach was widely taken up by the manufacturers of the early twentieth century,
where the first forms of mass production and flow-line techniques were being introduced.
Workers specializing in one task, strict management control over work methods and payment by
output levels were important features of successful production-line techniques. These principles
were the driving forces behind all mass production until the `Japanese style’ of working and
people management became more widespread from the 1960s onwards. Even before this, other
research had been undertaken on people’s behaviour at work and doubt was being cast on the
simplistic nature of many of Taylor’s assumptions about worker motivation

Taylor’s Approach Relevance to modern industry

Economic man
Select the right people for each
job
Observe and record the
performance of Staff
Establish the best method of
doing a job - method study
Piece-work payment
Some managers still believe that money is the only way to motivate
staff. However, the more general view is that workers have a wide
range of needs - not just money - that can be met, in part at least,
from work.
Before Taylor there had been few attempts to identify the principles
of staff selection. The importance he gave to this is still reflected in
the significance given to careful staff selection in nearly all
businesses
This was widely adopted and became known as `time and motion
study’. Regarded with suspicion by workers as a way of making them
work harder , it is still employed as a technique but often with the
cooperation and involvement of staff
Again, this is still accepted as being important as efficiency depends
on the best ways of working being adopted. However, the Taylor
approach of management giving instructions to workers with no
discussion or feedback is considered to be undesirable. Worker
participation in devising best work practices is now encouraged
This is not now a widely used payment system. Quality may be
sacrificed in the search for quantity - workers will vary output
according to their financial needs at different times of year and it
discourages them from accepting changes at work in case they lose
some pay. In most of modern industry, especially service industries,
it has become very difficult to identify the output of individual
workers.
Mayo (1880 - 1949) and the human relations
theories
Elton Mayo is best known for is ‘Hawthorne effect’ conclusions. These were based on a series of
experiments he and his team conducted over a five-year period at the Hawthorne factory of
Western Electric Co. in Chicago. His work was initially based on the assumption that working
conditions - lighting, heating, rest periods and so on - had a significant effect on workers’
productivity. Experiments were undertaken to establish the optimum working conditions at all.
The results surprised all observers - as lighting and other conditions were changed , both
improved and worsened, so productivity rose in all groups including the control group. This
forced Mayo to accept that:
 working conditions in themselves were not that important in determining productivity levels
 other motivational factors needed to be investigated further before conclusions could be
drawn
Subsequent experiments were carried out with a group of assembly-line workers. Changes to
rest periods, payment systems, assembly-bench layout and canteen food were made at 12-week
intervals. Crucially, before
 McClelland
1. Need for power
2. Need for achievement
3. Need for Attention

Vroom
1. Valence - extrinsic e.g Money
2. Expectancy - performance
3. Instrumentality - The confidence of employees that they will actually get what they desire,
even if it has been promised by the manager

The Practice of Motivation

1. Financial Rewards - wages e.g. blue collar jobs
- piece rate & time rate
- Salary e.g. white collar jobs
- Commission e.g. sales reps
i. Expressed as a % of units sold e.g 10 000 000 * 1/100 = 100 000
- profit sharing
- bonus - lump-sum payment that relates to the performance of the worker
- performance related payment

2. Fringe benefits/non-financial rewards -

i. A company car
ii. School fees
iii. Medical aid
iv. Holiday Packages
v. Company House
These are for certain employees. You won’t see a janitor getting a company car

3. Job Satisfaction -
1. Job rotation
2. Job enlargement
3. Job enrichment - increasing activities e.g. job description
a) Doing a job that is above you
b)
4. Teamwork

Employment Contract
Employment Contract- A legal document that sets out the terms and conditions governing a
worker’s job.

The contract imposes responsibilities on both the employer - to provide the conditions of
employment laid down and the employee- to work the hours specified and to the standards
Contents of the employment contract
1. Start date should appear in contract
2. Terms of employment
3. Job title and duties
4. Place and hours of work
5. Pay and holiday entitlement
6. Pension and sickness
7. Termination conditions
8. Details relating to disciplinary issues
9. Dismissal And grievance

Labour Turn-over

Training
Training: work-related education to increase workforce skills and efficiency.

3 forms of training:
1. On the job training
2. Off the job training
3. Induction Training

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MBO

Discipline and Dismissal of Employees

1. Dismissal and Reasons

2. Unfair Dismissal
3. Redundancy
4. Work-life balance
5. Policy for diversity

MARKETING
Marketing Objectives

Objectives are short term goals

1. Markets
2. Products

Importance of objectives:
1. Give direction
2. Control mechanism
3. Formulate marketing strategies

Business Orientation
1. Market oriented - outward looking
2. Product oriented - inward looking
3. Asset led marketing
4. Societal marketing

Demand - quantity of a product bought at a give price over a period of time

Supply

Supply is the quantity of a good that producers are willing to sell at a given price over a given time
period

Look at Fig 16.3 and Fig 16.4

Equilibrium
Determining the equilibrium price - When demand and supply are combined, the equilibrium price
will determine. This will be at the point where demand=supply. This is shown in Fig 16.5

If the price were higher than this, there would be unsold stocks - excess supply. Suppliers do not want
this, so will lower the price. If the price is lower than the equilibrium, then stocks will run out - leaving
excess demand. Suppliers could make a higher profit by raising the price - to the equilibrium level.

Features of markets: location, size, growth, share and competitors

Succeessful marketing requires firms to understand which market they are operating in, who their
consumers are and where they are located, whether the market is growing or shrinking, what the
business’s share of that market is and the major competitors.

Market Location
Some businesses just operate locally - they sell products to consumers in the area where the business
is located. Firms that usually just sell in these local markets include laundries, florist shops,
hairdressers and bicycles-repair shops.
Regional markets obviously cover a larger geographical area and business that have been
successful locally often expand into the region or country so that they can increase so that they can
increase sale. Local markets obviously have limited