1.4 Managing people 1.4.4 Motivation in theory and practice Theme 1: Marketing and people What motivates you at school or college? Is this the same as what motivates you at work? What will you look for in your future career to provide motivation? 1.4 Managing people 1.4.4 Motivation in theory and practice Edexcel Business

1.4.4 Motivation in theory and practice In this topic you will learn about The importance of employee motivation to a business Motivation theories: Taylor (scientific management) Mayo (human relations theory) Maslow (hierarchy of needs) Herzberg (two factor theory) Financial incentives to improve employee performance: piecework commission bonus profit share performance-related pay Non-financial techniques to improve employee performance: delegation consultation empowerment team working flexible working job enrichment job rotation job enlargement

Employee motivation Motivation is the factors influencing the way people behave Financial incentives Non-financial incentives Individual character Desire to achieve a goal Motivated employees will be engaged employees Engaged employees are those who are fully committed to their role and strive to help the business achieve its objectives

Employee motivation Benefits: Higher labour productivity Lower labour turnover Higher retention rates Lower unit costs Lower absenteeism Improved customer service Better workplace relations How would you keep workers happy? http://www.bbc.co.uk/news/business-23640900 From heart rates to surveys: How to keep workers happy

Motivation theories Theories of motivation include: Taylor’s scientific management Mayo’s human relations theory Maslow’s hierarchy of needs Herzberg’s two factor theory Each theory attempts to explain the key influences on human behaviours Why is it difficult to explain what motivates employees in the workplace?

Frederick Winslow Taylor (1856 – 1915) American Taylor is seen as the father of ‘Scientific Management’. Taylor believed that workers were not capable of understanding their tasks and should follow strict rules on how to produce products All tasks should be studied scientifically using a study of time and motion The most efficient way of carrying out a task will hence be identified Each employee can then be trained and instructed in exactly how to do a job in the most efficient manner Workers should be closely supervised He coined the term economic man believing money is the key to motivation His ideas are linked to piece rate, the division of labour and mass production He is criticised for making jobs tedious Write a definition for each of the terms shown in purple. https://www.youtube.com/watch?v=8PdmNbqtDdI Ford and Taylor Scientific Management (Edited)

George Elton Mayo (1880 – 1949) Believed that workers must be seen as members of a group not as individuals He emphasised the informal work group as the means to improving productivity He believed that workers had ‘social needs’ and that these should take precedence over other areas such as money as a motivator Changes in working conditions and financial incentives have little impact on labour productivity In his ‘Hawthorne experiments’ he looked at the power of informal, as opposed to formal, groups as a basis for production in the workplace His findings were that motivation can be improved by: Consultation Paying an interest in workers Team work Some degree of autonomy in one’s working day e.g. break times Australian Mayo looked at the importance of human relations in the workplace.

Abraham Harold Maslow (1908 – 1970) Maslow’s hierarchy of needs is based on seeing human needs as being placed in order, each need must be fulfilled before one could move on to the next Employees can be motivated by being presented with the opportunity to achieve the next level American Maslow belongs to the Neo-Human relations school of management. He is well known for his hierarchy of needs. Higher order needs Lower order needs

Frederick Irving Herzberg (1923 – 2000) American Herzberg introduced the notion of job enrichment. In 1959 he proposed the ‘Two factor theory’ of job satisfaction. Job satisfaction is a key factor leading to motivation Job satisfaction could be influenced both positively and negatively Motivating factors Hygiene factors if present, lead to job satisfaction and hence motivation achievement, recognition, work, responsibility, promotion and growth if present do not lead to motivation but if absent lead to dissatisfaction pay and benefits, company policy, workplace relationships, work conditions, status and job security https://www.youtube.com/watch?v=o87s-2YtG4Y https://www.youtube.com/watch?v=gtYi4102OvU Jumping for the Jelly Beans (1 of 2) & (2 of 2) Jumping for the Jelly Beans.

In pairs Select one business or industry Identify a range of jobs within that business or industry Explain what motivates employees in each of the jobs with reference to the 4 motivational theorists How useful do you think motivational theories are in understanding workplace behaviour?

Test yourself - 4 minutes Explain Taylor’s theory of scientific management. Underline or highlight each business term used in your explanation. End

Test yourself - 4 minutes Explain Herzberg’s two factor theory. Underline or highlight each business term used in your explanation. End

Test yourself - 4 minutes Explain Maslow’s hierarchy of needs. Underline or highlight each business term used in your explanation. End

Test yourself - 4 minutes Explain Mayo’s human relations theory. Underline or highlight each business term used in your explanation. End

Financial incentives to improve employee motivation Financial incentives are the variety of methods that have a money value and are used to reward the workforce and influence their behaviours at work Non-financial incentives are the methods of motivating employees through elements of job design Zappos: a case study. http://www.zapposinsights.com/blog/item/6-ways-to-build-employee-engagement-and-relationships-in-your-company http://www.bbc.com/future/story/20120509-is-it-all-about-the-money Does money really motivate people? Does money really motivate people?

financial methods of motivation Financial methods of motivation include: Piece rate is when payment is based on the number of items (pieces) produced by an employee Commission is when payment is based on the number of units sold Bonus is an additional, lump sum, one off payment to an employee for meeting individual, team or company targets Profit share is when a proportion of employee pay varies with the profits of the company Performance related pay (PRP) is when employees receive a bonus based on the performance of the employee measured against a pre agreed range of criteria Which motivational theorist would be in favour of piece rate pay as a financial motivator? BBC John Lewis' bumper profits The John Lewis Partnership has reported a huge increase in profits, with staff in line for a bumper bonus Which financial method would motivate you? Could these be applied to sixth form studies?

Non-financial techniques to improve employee performance Delegation involves the passing of authority down the hierarchy Responsibility remains with the manager This will: free up time for management motivate workers by providing them job enrichment may mean that decisions are being made closer to the grass roots How easy is it to delegate? http://www.wikihow.com/Delegate Are there any risks associated with delegation??

Non-financial techniques to improve employee performance Discuss how each of these techniques could improve motivation. Consultation Empowering Team working Flexible working

Non-financial techniques to improve employee performance Job enrichment Job rotation Job enlargement What would be the most effective way of attracting doctors into general practice? http://www.bbc.co.uk/news/uk-wales-33385870 GP incentives 'not the answer' to recruitment, experts say

Test yourself - 4 minutes With the use of examples distinguish between financial and non-financial incentives. End

In pairs – draw the grid below onto A3 paper and complete where appropriate to explain the links between the motivational techniques and theories. Taylor Mayo Maslow Herzberg Financial incentives Delegation Consultation Empowerment Team working Flexible working Job enrichment, rotation and enlargement

1.4.4 Motivation in theory and practice In this topic you have learnt about The importance of employee motivation to a business Motivation theories: Taylor (scientific management) Mayo (human relations theory) Maslow (hierarchy of needs) Herzberg (two factor theory) Financial incentives to improve employee performance: piecework commission bonus profit share performance-related pay Non-financial techniques to improve employee performance: delegation consultation empowerment team working flexible working job enrichment job rotation job enlargement