Unit 2.5 Motivation Lesson 1: Theories of motivation pp. 269-276. IB Business and Management Unit 2.5 Motivation Lesson 1: Theories of motivation pp. 269-276.

1. Think about it… President Jefferson (1743-1826) once said, “I’m a great believer in luck, and I find the harder I work, the more luck I have.” What did he mean by this? What motivates you to do something? Are you easily motivated? …

2. Focus Questions What are the several theories of motivation? What are the differences between intrinsic and extrinsic needs and rewards? What are the benefits of increased worker motivation? Are there any negative aspects to poor worker motivation? …

3a. Motivation Motivation: General: Desire, effort, and passion to achieve something Business: Willingness to complete a task with enthusiasm Getting someone to do what you want OR wanting to do something for yourself

3a. Motivation Managers / leaders main goal: inspire and motivate your workforce to complete tasks that are set out by you. Think about how you are going to promote / instill in your staff the desire, effort, and passion to complete a task with enthusiasm. Must determine what drives your employees.

3a. Motivation Remember: People are the most valuable and expensive asset of any company. It only makes senses to get the most out of your human resources, doesn’t it? Focus of 2.5: How managers seek to motivate their workforce to maximize job satisfaction, moral, and labor productivity What are some of the benefits of a motivated workforce? ...

Benefits of increased worker motivation Improves corporate image Higher morale and job satisfaction Improves corporate image Lowers conflict in the workplace Lower staff turnover Lower absenteeism $$$ Higher profits

Warning signs of poor motivation High labor turnover rates High absenteeism rates High labor turnover rates High waste level Low quality output Increased customer complaints Poor punctuality Increased number of disciplinary problems

3d. Motivation Can be classified as intrinsic or extrinsic. People can be motivated by combination of both factors. Intrinsic motivation: When you engage in an activity out of your own desire. Because you find them challenging, stimulating, or satisfying. Extrinsic motivation: When you participate in an activity because of the benefits and rewards associated with the activity. The rewards maybe: Tangible: wages, salaries, bonuses, YOUR grade  Intangible: recognition or praise, to avoid punishment, candy, prizes …

4. Motivation in Theory YOU as a manager in a company will need some knowledge and understanding of how your employees or staff think and what motivates them and even finding out what really motivates you. Because at the end of the day, or at the beginning, even you have a boss or someone to answer to and they will have to motivate you!

4b. Frederick Winslow Taylor (1856-1915) Supported the use of piece-rate payment system. Wrote a book on “The Principles of Scientific Management (1911). He assumed that people were motivated by money. He also believed that higher productivity could be obtained by setting output and efficiency targets related to pay. He viewed the duty of the manager to decided how each person’s task should be completed. Supported repetitive tasks based on division of labour and specialization in the production process. He suggested that man try to do as little as possible. That managers need to plan, direct and control their workforce. …

4c. Frederick Winslow Taylor (1856-1915) He also introduced differentiated piecework. A payment system where a work would receive pay based on a standard level of output and receive another rate if they exceeded that level. This was his incentive scheme that reward those who were productive workers. He recommended that workers should be scientifically selected for jobs, based on their abilities. His ideas were very popular in 1920’s, Ford and McDonald’s would use them. McDonald's still uses them today. …

4d. Frederick Winslow Taylor (1856-1915) He has been criticized for ignoring the non-physical contributions of workers. That can be defined: labour input as the mental and physical human effort used in the production process. So how easy is it to measure this? It is not easy at all to measure the “output” of certain professionals. For example, if you all get accepted into an Ivy League school, does that make me a great teacher, a productive employee of the school? …

4e. Frederick Winslow Taylor (1856-1915) He has also ignored the non-financial factors. Due to a highly educated workforce, people do not prefer to be bossed around, but would like a say in how things are done at work. His theory can also lead to repetitive and monotonous tasks. This will lead to job dissatisfaction rather than motivation. Can you think of some other companies or countries who might use Taylor's theories? Do you think his theories are still being practiced today? Can you give examples? ..

5a. Abraham Maslow (1908-1970) Focused on the psychological (emotional and mental) needs of workers. He believed people are motivated by more than just money. He argued that these needs (see right pyramid) must be met to motivate people. Called the Hierarchy of needs (1943). … Maslow’s Hierarchy of Needs

5b. Abraham Maslow (1908-1970) Maslow’s Hierarchy of Needs … He also suggested that the needs at the lower level must be met before people could progress to higher level needs. Let’s think about it…would it be feasible for a company to aim to motivate all workers up the hierarchy? Which workers would you want to motivate the most? And at which levels in the hierarchy? … Maslow’s Hierarchy of Needs

5c. Abraham Maslow (1908-1970) Maslow’s Hierarchy of Needs … Some criticize Maslow on how difficult it is to measure the level of needs. How can a business measure esteem or love issues of an employee? He also assumed that everyone is motivated in the same pre-determined order of his model. And what motivated the people who have achieved self-actualization? What drives Bill Gates or Donald Trump? What motivates these kinds of people to keep on working? … Maslow’s Hierarchy of Needs

6a. Douglas McGregor Created the Theory X and Theory Y (1960) to represent the different assumptions managers have about their employees. His theory was that the beliefs managers have about worker attitudes directly influences their management style. Confused? McGregor’s theory focuses on manager’s attitudes, not on a motivational theory. …

6b. Douglas McGregor Theory X explains the negative management attitude about the workforce. Workers as lazy, avoiding work. Workers need to be given direction and clear instructions. Authoritarian management style. Emphasis is on output and productivity. You will follow Taylor’s scientific management approach. …

6c. Douglas McGregor Theory Y managers take a more positive approach. Assume employees are able to achieve objectives on their own. Think workers can gain satisfaction from work and are able to take on responsibility. McGregor suggested that workers will be less motivated if there is a lack of challenge in a job. Theory Y managers take a democratic and decentralized approach in their style. So, adopt the Theory Y approach!!!  …

US Army General George S. Patton (1885-1945) “Never tell people how to do things. Tell them what to do and they will surprise you with their ingenuity.” US Army General George S. Patton (1885-1945)

7a. Prof. Frederick Herzberg (1923-2000) Focuses on what causes satisfaction and dissatisfaction at work. These fall under his Hygiene factors (maintenance factors) These meet people’s basic needs. Must be met to prevent dissatisfaction A pay raise will not motivate an employee in the long run. …

7b. Prof. Frederick Herzberg (1923-2000) Motivators: Factors which lead to the psychological growth of the employee. Will increase worker satisfaction and performance. Suggested that firms motivate employees by using a democratic management style, provide training, Three Key areas in worker motivation: Job enlargement: variety in what workers do. Job enrichment: more complex and challenging tasks. Job empowerment: delegating decision-making power to workers. …

7c. Prof. Frederick Herzberg (1923-2000) Movement and Motivation: Movement: when someone does something because they need to. (extrinsic) Motivation: when someone does something because they want to. (intrinsic) He believed that people are motivated by being responsible for their work. That work itself can be rewarding. …

7d. Prof. Frederick Herzberg (1923-2000) So as a manager you need to make sure your employees are motivated. But remember, not all employees are motivated the same way. What works to motivate them today, may not work tomorrow. Critics of Herzberg: His two factor theory does not apply to many occupations. Especially where job enrichment and job empowerment are not a feature. i.e. at a factory. Also, some employees do not want job enrichment, they do not want the extra responsibility. His research also ignored the role of the team working in motivating the workforce. …

Unit 2.5 Motivation Lesson 2: Motivation in practice pp. 280-294. IB Business and Management Unit 2.5 Motivation Lesson 2: Motivation in practice pp. 280-294.

1. Focus Questions What are the differences between financial and non-financial motivation?

2. An overview: Financial motivation: Non-financial motivation: A way for companies to motivate workers by using some form of monetary rewards. Non-financial motivation: Non-monetary factors that motivate people by offering psychological and intangible benefits. …

(look at the advantages and disadvantages of each on pp.281-285) Financial Motivation (look at the advantages and disadvantages of each on pp.281-285) Wages. Time-based payment systems. Overtime. Piece rate. (remember Taylor?) Salary Commission (output-based payment system) Profit-related pay. Profit sharing. Performance-related pay (PRP) Employee share ownership schemes Fringe payments. Perks.

Non-financial Motivation (look at the advantages and disadvantages of each on pp.286-290) Job enrichment (Herzberg) Vertical loading= challenging jobs Job enlargement Increase number of tasks Job rotation (horizontal loading) Doing a number of tasks in order Empowerment Granting more authority to the workers Team working Working in groups reduces boredom. (Adair & Belbin model) Recognition and praise The working environment Continuous professional development Delegation Worker participatoion

5a. Team Building Models The Adair Model: Task Individual Team The Adair Model: Three parts to effective team work. Tasks must be challenging. Team must work collectively. Team caters for the needs of each member. An idea situation where team leaders strive to accomplish challenging tasks, build teams and develop individuals. You as the manager or team leader will be dealing with group dynamics. The range of individual problem-solving skills and experience. You will need to reinforce the importance of every member on your team. …

5b. Team Building Models The Belbin Model: Looks at the behavior of managers from all over the world. They were put in groups and psychometric test were conducted. The finds were as follows: Nine patterns of behavior or team role: (see more info on pp.288-289) Action Orientated Shaper Implementer Completer Finisher People Orientated Coordinator Team worker Resource Investigator Cerebral Orientated Plant Monitor Evaluator Specialist

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