MOTIVATION

1. MOTIVATION

2. INTRODUCING THE TOPIC PAGE 154 Read the case study we will discuss.

3. MOTIVATION In the current business climate keeping staff motivated and on task can be very difficult as concerns about the economy and rising costs can lead to an unmotivated workforce it is important for managers to motivate there staff to ensure they work at optimal efficiency. If workers are motivated there are many spinoff benefits for an organisation these include. High profile, low staff turnover and absenteeism, high productivity, creativity and suggestions for improvement.

4. MOTIVATIONAL THEORIES Taylor Scientific Management – Taylors idea was to find the quickest most efficient way to get a job done using money as the main motivator. I.e. the more work you did the more you got paid. Taylors 7 step process to improving output per worker. Select workers to perform the task Observe how they do the task Record time take to complete each task Identify the quickest method Train each worker in that method Supervise workers to ensure the best way is being done and to the time specified. Pay workers based on there results (economic man)

5. TAYLOR This theory as stated was all based on money as a motivated the more output achieved the greater monetary gain for the employee, therefore the business got a fair days work and the employee a fair days pay. Taylors motivational theory revolutionised the manufacturing industry and most mass produced products were built around this method. Does the 7 Step process work today?

6. MAYO – HUMAN RELATIONS THEORIES Mayo’s theory was originally based on the assumption that working conditions had a significant impact on productivity. The results surprised Elton as the lighting and other conditions were changed and both the control group and the other workers increased productivity. Mayo found that working conditions in themselves were not that important and other factors needed to be investigated such as changes to rest periods, payment systems, assembly bench layout and canteen food. (before each change they discussed it with the workers.)

7. THE HAWTHORNE EFFECT Mayo's results indicated Changes in working conditions and financial rewards have little or no effect on productivity. When management consult with workers and take an interest motivation improves. Working in teams improves productivity. When workers have some control over there work lives there is a positive motivational effect. Groups can establish there own targets or norms. Is this approach relevant today?

8. MASLOW – HIERARCHY OF NEEDS

9. MASLOW When a employee satisfies one level of needs they are no longer motivated by it i.e. if they have all of there physical needs then more money want motivate, you can drop a level if one of your needs is threatened i.e. job security during the recession. There are limitations to this approach how do you identify what level an employee is on? Money plays a role in different levels, and self actualisation can only be achieved if you are continually challenged at work.

10. ACTIVITY 9.1 PAGE 160 Answer questions 1 and 2.

11. HERZBERG – TWO FACTOR THEORY His research was based on finding out what led employees to having good feelings about there jobs and those factors that led them to be dissatisfied. He noted the following five factors determined job satisfaction.

12. HERZBERG’S THEORY Money (or more off it) does not motivate people to do the work it encourages them to do it . (not necessarily well) Employees need job enrichment to be prepared and willing to always give there best. Job Enrichment – Requires more from a job, rather then doing the same repetitive job employees should be in charge of a wide range of activities to keep them motivated. Employees also require constant feedback (pat on the back) this often makes employees work harder , and ultimately make the environment and job enjoyable.

13. MCCLELLAND – MOTIVATIONAL NEEDS THEORY McClelland argued that there were three types of motivational need in all workers and managers to varying degrees. Achievement Motivation – Someone who is motivated by achievement, they want to achieve goals and advance there career quickly. Often if they are managers they can struggle to motivate people who don't have the same drive.

14. MCCLELLAND – MOTIVATIONAL NEEDS THEORY Authority Motivation – This person likes to be in charge and have control of the business. They need to be careful not to offend employees or disregard there part in the business. Often when these people have the power they meet the self actualisation need on Maslow's hierarchy. Affiliation Motivation – These people want to fit in are motivated by team work and a friendly work enviroment, every business needs these people as they are often the glue that holds the company together.

15. VROOM – EXPECTANCY THEORY Vroom believed that people behave in ways that will help them reach a favourable outcome. i.e. Marketing professional might redesign packaging to have there mark on the business. (self actualisation makes them feel good) Vroom's Three Beliefs - Valance – the depth or want for a reward. - Expectancy – the belief that putting in the work will result in a reward. - Instrumentality – the confidence that they will get the reward they desire.

16. MOTIVATIONAL THEORIES Note: When answering a motivation question in a exam don't just list the findings of the motivational theorist but apply them to the business context and provide examples. There will always be much debate about what is the most appropriate way to motivate staff, and whose job is it to motivate staff the manager, the work itself or the strive to better oneself. At the end of the day we are all motivated by different factors and different workplaces will require different styles of motivation to ensure a cohesive environment.

17. ACTIVITY 9.3 PAGE 163 Complete question 1 and 2. What people want from work.

18. FINANCIAL REWARDS - MOTIVATION What would be the advantages and disadvantages of the above payment systems? The most common payment systems are. - Hourly wage rate – retail, factory workers etc - Piece rate – the more you produce the more money you make. - Salary – fixed yearly payment. - Commission – a % of sales made.

19. FINANCIAL REWARDS Performance related pay – this is usually in the form of a bonus paid above your salary for performing above expectations. This requires targets to be set and constant monitoring of employees progress to wards meeting these goals. All businesses make different decisions around bonus payments and often will base it on overall company results. Will this motivate all staff or does it become an expectation? What if the company doesn't meet targets, no one gets a bonus whose to blame?

20. FINANCIAL REWARDS Profit Sharing – The business owners share some of the profits with the employees, the idea is that it will motivate staff to work harder to achieve more in order to get a higher share of the profits. Fringe Benefits – These are non cash but are of significant value to the employee i.e. Company Car, product discounts, health schemes, free lunches. These will often provided to higher level staff as motivational tools, but also the lower level staff may be motivated to get there and will work harder to get these benefits that can save them significant amounts of money.

22. NON FINANCIAL METHODS OF MOTIVATION While Financial reward can motivate the ability to change jobs or as Herzberg, Maslow and co suggested having job enrichment or self actualisation needs met is normally more important. This can be done through many methods. - Job Rotation, enlargement and enrichment - Delegation - Participation - Team Work - Empowerment - Target Setting

23. NON FINANCIAL METHODS OF MOTIVATION Job Rotation – Allowing workers to do different jobs of the same skill level by switching between them at time intervals. Common in manufacturing. Job Enlargement – This can be motivating and discouraging as it involves increasing a persons workload which is likely to increase the challenge. Job Enrichment (Herzberg) – This allows employees more autonomy and control over there job as well as greater challenge to motivate them. Job Redesign – Linked to the above changing a persons job to increase the challenge and re motivate a stale worker.

24. NON FINANCIAL METHODS OF MOTIVATION Quality Circles – Groups of workers who meet together to discuss work related problems and issues. Participation – this requires managers to give workers the opportunity to be involved with decision making in different employee related issues. Team Working – This is a common practice as it allows people to discuss work ideas with colleagues however there can be downtime if no one takes charge of the project or if they have meetings for meetings sake.

25. NON FINANCIAL METHODS OF MOTIVATION Target Setting – this is often described as KPI (Key Performance indicators) it allows staff to get feedback from employers on there performance against agreed targets. Delegation and Empowerment – Allowing employees to take full responsibility for the work they are undertaking, they make all the decisions related to the project.

26. MOTIVATION EVALUATION The decision on how to motivate employees will be based on the managers bias towards there employees and what generally motivates them. It takes a savvy manager to work out what motivates different employees and adapts there style to suit there employees, Managers need to realise to increase productivity and efficiency they need to get the best out of there employees, this means ensuring they use the motivational techniques suited to different employees. Both Financial and Non Financial.

27. REVISION CASE STUDY PAGE 175 Complete Questions 1-4 (Unrest at the factory)