MOTIVATION AT WORK

What is motivation?
The process of stimulating people to
action, to accomplish desired goals. It
involves arousing needs and desires in
people to initiate and direct their behaviour
in a purposeful manner.
MOTIVATED WORKERS - HIGH PRODUCTIVITY -INCREASED OUTPUT-

HIGHER PROFITS

UNHAPPY WORKERS-DO NOT WORK EFFECTIVELY-

LOW OUTPUT-LOWER OR NO PROFIT

 MOTIVATION THEORIES
The study of factors that influence
the behavior of people in the
workplace.

For your exam you need to study 4 theorists

1.F.W. Taylor 2.Abraham

Maslow 3.Frederick Herzberg
4.McGregor
 Scientific Management and
F.W.Taylor
• F.W. Taylor (1856 – 1915) was an American engineer who
invented work-study and founded the scientific approach to
management
• He considered money to be the main factor that motivated
workers, so he emphasised the benefits of Piece Work.

• Scientific Management – Business decision making based on

data that are researched and tested quantitatively in order to
improve efficiency of an organisation.
• Higher efficiency would generate higher profits and thus
higher wages to workers.
• Taylor saw Humans as Machines
 Scientific Management and
F.W.Taylor
• Taylor recommended:
– Extreme division of labour (with workers specilising in one very narrow
task)
– Payment by piecework
– Tight management control

• Division of labour – breaking a job into small repetitive tasks,

each of which can be done at a speed with little training.
• Piecework – Means payment by results, e.g. per item produced.
• Tight management ensures the workers concentrate on their
jobs and follow the correct processes.
• This method had a big influence on Mass production,
introduced at Ford Motor Company – led to poor industrial
relations and saw a growth in trade unions.
 Maslow’s Hierarchy of Needs
• Maslow classified human needs and then considered
how the classes related to each other

Self
fulfilment
needs

Self-esteem needs

Group needs

Security needs

Basic needs
 Maslow’s Hierarchy of Needs
• Basic needs • Self- esteem needs
– Required for survival – • Recognition as individuals
food, shelter, clothing – Praised for work
e.g. receipt of minimum – Efforts and rewards
wage • Self-fulfillment
• Security needs – Full personal development
– Safety, rest periods, • Individual creativity
– Full use of talents and abilities
sickness schemes
MASLOW ARGUED THAT
• Group needs
WHILST LOWER LEVEL
– Sense of belonging – NEEDS MUST BE MET, HIGHER
can be problem in large
organisations – LEVEL EQUALLY ESSENTIAL TO
managers need to form REALISE FULL POTENTIAL
teams to recognise AND AVOID CAREER
group needs FRUSTRATION
Herzberg’s Theory of Motivation
and Dissatisfiers
• Herzberg identified 9 factors
he called ‘dissatisfiers’ which
could cause absenteeism, low
production, dislike of change
and other negative actions at
work
Herzberg’s Theory of Motivation

• The ‘satisfiers’ were:-

– Recognition of effort and
performance
– Job that provides enough
challenges
– Sense of achievement
– Assumption of responsibility
– Chance of promotion
Herzberg’s Theory of Motivation “
HYGIENE FACTORS
• The ‘dissatisfiers were:-
– Fluctuating company policy & admin
– Low pay
– Poor working conditions
– Confrontational relationships
– Unfriendly relationships
– Unfair management
– Unfair treatment of employees
– Feeling inadequate
– No individual development
McGregor’s Theory X versus
Theory Y
• McGregor divided managers into 2 types
• Theory X

Theory Y
 Theory X Managers
• They take the view that
– People don’t really like work and avoid it
if possible, so they need incentives for
company to achieve aims
– People need to be pushed, threatened
and driven to get things done
– People like to be told what to do, avoid
responsibility and lack ambition; they
thus need to be ‘managed’
 Theory Y Managers
• They on the other hand
think
– Work is a natural activity
which people enjoy, so
management must
create right conditions
– Employees who identify
with organisation’s will be
motivated to work hard
– One way to do this is
self-fulfillment (Maslow)
– management should
provide ways to do this
• Given the opportunity,
people learn to accept
and seek responsibility
• People will contribute to
organisation’s objectives
if they are able to
• People’s full potential is
rarely reached in the
workplace environment
THERE ARE 3 FACTORS WHICH CAN MOTIVATE
EMPLOYEES

1. FINANCIAL REWARDS

2. NON-FINANCIAL REWARDS

3. WAYS TO JOB SATISFACTION

FINANCIAL REWARDS: Monetary incentives involve payments in cash or kind or
both.

WAGES

1. Wage: A wage is a payment for work, usually paid weekly and which is
measurable and the following deductions are made : a] Tax to government,
b] pension scheme and trade union subscription.

TYPES OF WAGES RATES FOLLOWED IN ORGANISATION ARE TIME

RATE AND PIECE RATE.

2. SALARY or COMPONENTS OF SALARY USUALLY PAID AS A REWARD

TO BASIC SALARY

A. COMMISSION
B PROFIT SHARING
C BONUS
D. PERFORMANCE RELATED PAY
E. SHARE OWNERSHIP
SALARY:A Salary is a payment for work normally paid for staff on a monthly basis and
work is not measurable.

Commission: Payment relating to the number of sales made.

Profit sharing: It is a system whereby a proportion of the company’s profits is paid out
to employees.

Bonus: It is an additional amount of payment above basic pay as a reward for good
work.

Performance related pay: A pay which is related o the effectiveness of the employee.

Share ownership: Employees are given some shares in the company which will help
them work hard to earn dividends.
Time rate system is systems of wages in which wages are directly
linked with time spend by workers on the job. Wages can be
calculated as under:
Wages = Time spent * Rate of wages permit.

Merits :
1. It is simple to understand.
2. This system provides a feeling of economic security to workers
as temporary sickness or injury does not affect it
3. In time rate system, wastage of material tools and equipments
are less as the workers handle the resources carefully.
4. Maintains higher quality of output..
5. Accepted by trade unions.
It is the only method that can be used where the work is not
standardized and output cannot be measured.
This method is helpful to new workers as they can learn the job
without any reduction in their wages
Limitations: Reduces the quantity of output.
Lack of incentive to reach and sustain a reasonable level of work.
No incentive or reward for excellent workers.
There is a need for constant supervision.
1. Overtime wages: Employees work for longer time than the normal
time/working hours and they are paid double the wages.
PIECE RATE SYSTEM
Piece rate is a system of wage payment made on the no. of pieces produced,
a basic rate is usually paid with additional money, usually paid to individuals or for
team performance

MERITS

1. It eliminates the tendency of workers to go slow as remuneration is

directly linked with performance.
2. It reduces the cost of supervisors as minimum supervision is required.
3. It rewards superior performers and recognizes merit.
4. It motivates them towards hi9gher productivity and leads to higher
output
 Disadvantages of PIECE rate system
1.There is a danger that quantity will be
secured at the expense of quality or perhaps of
safety
2. While determining production standards the
industrial engineers face stiff resistance from
workers and opposition from trade union.
3.It is not suitable for setting up group incentive
plans unless all the workers’ jobs happen carry
the same hourly wage rate or production
standard.
NON – FINANCIAL MOTIVATORS: Fringe benefits are non financial rewards given to
employees

They are:

1. Children’s education fees paid

2. Discounts on the firm’s products

3. Health care

4. Company vehicle usually car facility

5. Free accomodation

6. Share ownership

7. Food and clothing

8. Pension paid

9. Free trips/holidays
Examples of Non-financial
rewards (1)
PENSION
SCHEMES CANTEENS

CRÈCHES

HOUSING

EDUCATION

HOLIDAYS
 Examples of Non-financial
rewards (2)
DISCOUNTS

HEALTHCARE
PHONES

INSURANCE
SPORTS TIME OFF
Before paying any incentives an organisation carries out appraisal:

An appraisal is a method of assessing the effectiveness of an employee

The other types of motivation that motivates workers are :

1. Job Satisfaction: It is the enjoyment derived from feeling that you have done a good
job.
Usually employees ideas of job satisfaction are:

1.Pay

2.Opportunities for promotion

3.Working conditions, working hours, the nature of work

4.Fringe benefits [details above]

5.Treatment of an employee, sense of achievement derived from the job,

recognition for good work, chance for training, status of the job.
2. JOB ROTATION:It involves workers swapping
round and doing each specific task for only a limited
time and then changing round again.

3. Job enlargement: It is where extra tasks of a

similar level of work are added to a worker’s job
description.

4. Job enrichment: It involves looking at jobs and

adding tasks that require more skill and or
responsibility.

5. Autonomous Team: Involves group of workers

who decide as a group how to complete the tasks or
organize the jobs, workers get involved in decision
making and take responsibility.