Motivation

1. Motivation

2. Content • Motivation theory: • Taylor • Maslow • Herzberg • Mayo • Non monetary motivation: • Job enrichment • Job enlargement • Empowerment • Team Working • Financial Motivation: • Piecework • Salaries and wages • Fringe benefits • Performance related pay • Profit share • Share ownership • Leadership and management styles: • Authoritarian • Paternalistic • Democratic • McGregor’s Theory X and Theory Y

3. Motivation • Motivation describes the factors within individuals that arouse, maintain and channel behaviour towards a goal.

4. Taylor • Taylor did lots of work in factories and believed that workers should be told how to do a job quickly • He believed they should be closely monitored & told what to do • He devised a PIECE RATE system • He believed workers could only be motivated by money

5. Maslow • Maslow believed human needs are split into five types - a hierarchy of needs with the highest level needs at the top. Individuals need to meet basic needs before moving up the hierarchy

6. Maslow • 1. Physiological- wage, salaries and working conditions • 2. Safety- security (safe job), other benefits eg sick • pay and safe working conditions • 3. Social- team working and other functions that aim • at building a bond within the workforce • 4. Esteem- positive feedback and chances for promotion • 5. Self- actualization- creating challenges and tasks • that are stimulating

7. Herzberg • According to Herzberg motivating factors are split into two groups: • 1.  Hygiene factors- salary and security. Improving these lowers dissatisfaction but doesn't improve motivation or satisfaction • 2. Motivators- recognition, responsibility, work itself, achievement, advancement - these lead to increased motivation • In reality most managers are trying to maximize the beneficial aspects and minimize those facts which de-motivate workers.

8. Mayo • Mayo looked at motivation in the Hawthorne laboratories in the USA • Found that just by being studied the subjects levels of motivation increased • Highlighted the importance of team work and group dynamics to motivation

9. Non Monetary Forms of Motivation- Job Enrichment • When employees jobs are redesigned to provide them with more challenging and complex tasks • Increase in the range of tasks an individual does • Workers have more responsibility for their own management • Workers are able to identify and solve any problems that they encounter • Gives workers training to improve skills so can meet increased job demands

10. Job Enlargement • Giving employees more duties of a similar level of difficulty • Employees have more jobs to do at the same level • Workers carry out a range of duties rather than a single duty which helps to increase motivation

11. Employee Empowerment • Empowerment – the process of giving workers a greater control over their work • It can make work more interesting as suits individual needs • Needs training and time to be effective

12. Team working • Where organisations break down production into large units where each unit is responsible for a particular area • Fulfils individuals social needs which helps to increase motivation • Teams can include: • Production teams • Quality circle teams • Management teams

13. Monetary Forms of Motivation – Piecework • Employees paid due to quantity produced • Now with minimum wage legislation employers need to ensure piece workers hit the threshold

14. Salaries and Wages • Salaries – annual and paid monthly • If you get a salary work a set number of hours as set out in contract • Wages – paid weekly • Have to be at work for a set time, paid overtime for any extra hours • Salaries and wages are often seen as the key motivator for an individual to work

15. Fringe benefits • Rewards received by employees in addition to their wages or salary • Often classified as “perks” of the job • Examples: • Company car • Lunch • Private health care • Pensions • These can increase employee loyalty

16. Performance Related Pay (PRP) • Some of an employees pay is linked to the achievement of targets at work • Targets may be sales targets or performance appraisal

17. Criticisms of PRP • Many employees see this as unfair as can be based on an appraisal interview • Lots of businesses don’t put sufficient money aside so employees only get a small bonus

18. Developments in PRP • Increasingly firms are using a system called Variable pay • This a flexible type of PRP which offers employees a highly individual pay system related to their performance • Higher rewards for star performers

19. Profit Sharing • Employees receive part of the business profits • Profits can be paid in cash / shares • This helps motivate the workers to earn the company profit as they see the financial incentive for themselves – this can raise efficiency and productivity in the organisation

20. Share Ownership • These can be either: • Allowing employees opportunity to purchase shares after saving for a period of time • Share options – mangers have the opportunity to buy company shares on an agreed date in future at current rate • Having share options increases the feeling of ownership for an employee acting as an incentive for them to work harder

21. Leadership • Influencing others to achieve certain aims or objectives. Effective leadership skills can help a manager carry out their duties

22. Leadership Styles - Authoritarian • Senior managers take decisions with little involvement of juniors • Sets objectives • Allocates tasks • Leader retains control throughout • Communication goes down from leader to consumer

23. Paternalistic • Dictatorial, but decisions are taken in best interests of employees • Explains decisions • Ensures workers social / leisure needs met • Communication mainly downward but some feedback

24. Democratic Leadership • Running a business based on majority decisions • Encourages employees to take part in decision making • Uses delegation • Extensive two way communication

25. McGregor’s Theory He believed there were 2 types of managers that affected motivation Theory X Managers Believe that workers • Don’t like working • Do as little work as possible • Can’t be trusted • Only interested in pay • Must be told what to do Theory Y Managers • Believe that workers • Enjoy their work • Work hard to gain rewards • Can be trusted • Are motivated by factors • other than pay • Can work independently

26. Summary • Taylor says that people are motivated by money – scientific management • Maslow developed hierarchy of needs that need to be fulfilled • Herzberg – 2 factor theory hygiene factors and motivators • Mayo – non monetary motivation • Non monetary motivation includes job enrichment, job enlargement, empowerment and team working • People are also motivated by money, this can be the form of salaries / wages, performance related or can take the form of fringe benefits, profit share and shares • An Authoritarian manager makes all decisions • A Paternalistic manager makes decisions with the agreement of workers • A Democratic manager runs a business on majority decisions • McGregor’s Theory X and Theory Y – Theory X = monetary motivation, Theory Y = non monetary motivation