Motivation THE TIMES 100

What is motivation? Motivation is concerned with the desire to do something or achieve a particular result. Motivated employees result in: Greater productivity Better quality products or service Lower staff turnover Reduced absenteeism

Monetary methods of motivation Fringe benefits Examples include company cars and discount vouchers. May not encourage greater productivity but often build company loyalty. Bonuses A payment usually related to the achievement of a target. Usually easier to apply to sales or production than the provision of a service. Profit share Employees are encouraged to work hard to ensure that the business is profitable, however, it is usually spread evenly between both hardworking and less hardworking staff.

Monetary methods of motivation Commission Payments are made in relation to the number or value of sales made. Encourages increased sales but may lead to heavy handed selling techniques. Piece rate Payments are made per item produced. Encourages productivity but sometimes at the expense of quality. Overtime Additional payment made for extra hours worked. Can provide greater flexibility to the workforce but may result in low productivity during normal working hours so employees can access overtime payments.

Non-monetary methods of motivation Job rotation Employees move between different jobs e.g. on a production line. Results in flexible, multi-skilled staff but ultimately workers may just be moving from one boring job to another. Job enlargement Workers are given a wider variety of different tasks to carry out although there is no increase in the level of responsibility. This is sometimes called horizontal loading. Job enrichment Giving employees the chance to fully utilise their abilities through, for example, providing a range of challenges, training workers and allowing them to demonstrate their skills.

Non-monetary methods of motivation Empowerment Allowing workers greater autonomy. They have greater freedom and power to control their own working lives. Team-working Involves organising workers into groups, setting team goals and awarding team rewards for achieving targets. Team-working fits with Mayo’s findings. Participation Employees participate in organisational decision making through such things as quality circles and works councils.

Motivational theorists It is useful to know 2 or 3 motivational theories from the following list: Maslow’s hierarchy of needs Taylor’s theory of scientific management Mayo’s theory of human relations Herzberg’s two-factor theory

Maslow Maslow’s Hierarchy of Needs The hierarchy starts with our basic physiological needs for survival. As each need is met, the next need up the hierarchy becomes the motivator. Workplaces can meet these needs e.g. pay provides the means to satisfy basic needs whereas training can provide for self-actualisation. One criticism of Maslow’s hierarchy is that workers may not seek to have all their needs met in the workplace. Self actualisation Self esteem Social Safety Physiological

Mayo Mayo’s Theory of Human Relations Mayo’s experiments showed that: Teamwork is an important motivator. Managers should take an interest in their workers He suggested that physical conditions and pay matter less than social interaction when motivating employees

Herzberg Herzberg’s Two-factor Theory ‘Motivators’ can motivate but a lack of motivators does not cause dissatisfaction ‘Hygiene factors’ can cause dissatisfaction but cannot motivate Herzberg’s Two-factor Theory Motivators are factors that can motivate workers by providing job satisfaction. Motivators are concerned with the job itself and include achievement, recognition and the responsibility Hygiene factors are external to the job itself and can only cause dissatisfaction if not fulfilled. Hygiene factors include company policy, supervision, pay and working conditions.

Taylor Taylor’s Theory of Scientific Management Taylor suggested that workers are only motivated by pay. Scientific management also states that the most efficient way to carry out a task should be identified and then carried out – giving rise to production assembly lines. Taylor supported close supervision and pay schemes that reward those that produce more.

Motivation in context

Importance of motivation Why is a motivated workforce important for organisations like Tesco? Use the Tesco case study to help you A motivated workforce: Achieves greater output in less time, thereby reducing labour costs Requires less supervision and demonstrates pride in its work Is less likely to make mistakes Provide better customer service Is less likely to be involved in conflict Is more loyal to the company

Taylor and Tesco Taylor suggested that workers are only motivated by money. Which of the following, provided by Tesco, are considered to be financial rewards? Christmas vouchers Training Pension scheme Free shares after one year’s service Positive feedback The financial rewards are: Christmas vouchers Pensions scheme Free shares

Maslow and Tesco Use the Tesco case study to give examples of how Tesco can help fulfil the different needs in Maslow’s hierarchy. Basic – regular pay, essential facilities such as a restaurant Safety – formal contracts of employment, pension and sickness schemes and health & safety in the workplace Social – team and group working at various levels and a home-from-home ethos Self-esteem – Tesco values emphasis self respect and the respect of others, feedback systems recognise individual contributions Self-fulfilment – opportunities for promotion and career progression, fast track management programmes

Herzberg and Tesco Use the Tesco case study to find examples of Herzberg’s ‘motivators’ that are provided by the organisation. Examples of motivators include: Delegating responsibility Involving staff in decision making Staff forum meetings Rewards and recognises staff achievement

Useful resources Motivation lesson suggestions and activities (The Times 100) Tesco case study (The Times 100) Tesco website