This chapter will explain: ‘© why people work and motivation theories (© what are the factors that motivate workers (financial and non-financial rewards) job satistacton, Why people work People work for a variety of reasons, The main reason why most people work is because they need to etn money to buy fod and the basi neces for fe. Bat some work 8 wolnany and docs not yield any money This chapter considers wide Tange of motivations for work and how frm can make use ofthis votvation vo ‘encourage dele worker co work more effeively. High productive dna bones sally comes fom a workforce tha s motivated ro Work efectively and fom this Comes increaed profs, Iealso considers leadership sles which might be used by manager, he effet of trade unions on the workers and legal considerations when “playing workers i re pop warrant tradi nt Security Mon sone a cy. bowing Io paybreecesten od some fotos yb nd payaso = fore 7 you 3 ea oss your ob wiry work? Sociol needs (afflation) Esteem needs Job satefaction fecng rot ageupo:—(salhimpertance) ‘toy! deed fom cuonepon wearg pele, ekg npn tugs fekig faye tow de naling Hach rw fea yada mga ‘et ‘Of course, improved organisation in a business and/or the increasing use of new technology, especially when it replaces workers, result in productivity gains. However, businesses also need to recognise that the value of cheir employees output, in terms ‘of how much they proxtuce and the quality of it, comes from how well motivated they are 10 work effectively Employees are a firm's greatest asset! ‘Higher potty wolrotvored fa " ‘roveosed so Beg a GS loner/no pelt dorothy bw. woes | een" opr, (6.9)Motivation theories ‘When people work for themselves they tend ro work hard and effectively as they see the direct benefits of their labours. However, once people work for someone else then they may not work as effectively. One of the tasks of management is to get theit workforce to contribute fully to the success of the business. To this end, many studies have been carvied out to discover what makes employees work effectively. Three main theories are outlined on the following pages. EW. Taylor Frederick Taylor started his working lift as a labourer in a factory in America in the 1880s, He rose vo become chief engineer, During this time he conducted experiments, at the steel company where he worked, into haw labour productivity cauld be increased. Taylor based his ideas on the assumprion that alt individuals are motivated by personal gain and therefore, if they are paid more, they will work more effectively. He was looking at workers who worked in factories. He brake down their jobs into simple processes and then calculated how musch output they should be able todo in a day. If they produced this target output, they would be paid more money. “Taylor saw employees rather like machines — when they were working hard, their productiviey would be high and therefore their labour costs would be low. (Any extra ourput would be worth more than the extra pay the workers received.) “Taylor's ideas resulted in big productiviey gains ar ehe company where he worked and many other businesses adopted his ideas. Bur there are several criticisms of “Taylor's ideas: © his ideas were too simplistic — employees are motivated by many things and nor just money © yu can pay an employee more money, but if they are unfilled by their work in some way, there will be no increase in theie eflectiveness at work and there will be no productivity gains ‘© 4 practical problem arises if you cannor easly measure an employee's ourpur. ‘netivity 6.1 3) From the following ist of jobs. say what you could measure to find out how effectively ‘the employees are working (how much output they are producing): car production worker shop assitant waiter teacher police officer © soldier © baker, 1) Ave there any jobs from the ist for which output isdlifficult to measure? Hf 50, explain ‘why [tis difficult to measure their output in each case. © Ifyou cannot measure workers” output, how can you pay them more money if they work «) Does this present problems for medern economies today where the majority of the work: force work in service tector jabs?