1. Motivation

2. Management Theorists McGregor Herzberg Taylor Maslow

3. Frederick W. Taylor Scientific Management (1856-1915) Division of Labour Managerial control over the workplace Measurement Standardisation, Efficiency and Discipline

4. Criticisms Workers only interested in money and that they could be programmed like machines One best way of doing things It does not take into account the welfare of workers

5. Theory X In this theory, management assumes employees are inherently lazy Workers will avoid work if they can Workers need to be closely supervised Comprehensive systems of controls developed A hierarchical structure is needed with narrow span of control at each level Employees will show little ambition Employees need an enticing incentive program Employees will avoid responsibility Managers adopt a more authoritarian style based on the threat of punishment Douglas McGregor (1906-1964)

6. Theory Y Management assumes employees may be ambitious, self- motivated, anxious to accept greater responsibility, and exercise self-control and self-direction Believe employees enjoy their mental and physical work duties Believe employees have the desire to be creative and forward thinking in the workplace Employees given more freedom so a chance for greater productivity Given the right conditions, most people will want to do well at work and that there is a pool of unused creativity in the workforce Believe that the satisfaction motivates Manager will try to remove the barriers that prevent workers from fully actualising themselves

7. Maslow’s Hierarchy of Needs

8. Levels Physiological Needs Safety Needs Love and Belonging Esteem needs Self- Actualisation

9. Frederick Irving Herzberg (1923-2000) Herzberg proposed the Motivation-Hygiene Theory, also known as the Two factor theory of job satisfaction. According to his theory, people are influenced by two factors: Satisfaction, which is primarily the result of the motivator factors. These factors help increase satisfaction but have little effect on dissatisfaction. Dissatisfaction is primarily the result of hygiene factors. These factors, if absent or inadequate, cause dissatisfaction, but their presence has little effect on long-term satisfaction.

10. Frederick Irving Herzberg (1923-2000) Motivator Factors: Achievement Recognition Work itself Responsibility Promotion Growth Hygiene Factors: Pay and Benefits Company Policy and Administration Relationships with Co-workers Physical Environment Supervision Status Job Security

11. Monetary Methods of Motivation Time Rates Piece Rates Commission Fees Fringe Benefits Profit Sharing Performance Related Pay

12. Time Rates Rewards employees for the amount of time that they spend on work Calculated by multiplying the number of hours that an employee works by the hourly rate of pay Workers do not need to rush what they are doing, hence quality of the product produced is not put in jeopardy Workers have no incentive to work hard and time-wasting can actually occur It is useful when employees are working in groups or for people working in the service sector where there is no actual product to produce Useful includes situations where an employee has no control over the speed of the work carried out, and cases where the product is not a standardised one

13. Piece Rates Rewards an employee according to the quantity of items that an individual (or group of workers) produces Ensures that employees are rewarded for what they actually do Can lead to employees rushing work or taking shortcuts which can result in sub standard products being produced If quality control is introduced to ensure that shortcuts are not being taken If a machine breaks down or if an employee is part of an assembly line that stops, there is the possibility that the employee could be penalised through no fault of their own

14. Commission Employees rewarded for the quantity or value of work that they sell Employees given a percentage of the value of the work that is sold Does not take into account the amount of effort that they make as it is linked to what is actually sold

15. Fees Fees are one-off payments made to employees for one-off tasks. The amount paid will depend on a number of factors such as the time taken to do the task, the complexity of the task, and the skills required to do the task.

16. Fringe benefits These are benefits that may be given to employees such as a company pension scheme, a company car, or free private medical insurance Some of these benefits may be welcome to employees from a taxation point of view, although in recent years the benefits are not as great as they once were

17. Profit Sharing This involves employees receiving a share of the company’s profits at the end of the financial year. Such schemes have many advantages such as providing an incentive for employees to work harder as well as reducing staff turnover. However if the organisation does not make high levels of profit, employees will receive little or nothing. This can demotivate staff. Additionally, profit sharing schemes tend to reward all employees equally, irrespective of how much effort individuals contributed to the organisation’s performance.

18. Performance Related Pay These schemes link an employee’s annual salary to their performance Can be measured in a number of ways such as comparing an individual’s actual performance with their agreed targets Can motivate workers to perform better Will not work if the reward is not perceived as valuable to the employee Problems can arise in situations where it may be difficult to measure performance accurately

19. Non-Monetary Methods of Motivation Job Enlargement Involves giving employees more to do, creating a broader job with more variety May give employees more satisfaction allowing them to complete an entire job rather than one part of it The major criticism is that employees may see it as an attempt to increase their work load through requiring them to carry out more tasks at the same level If the tasks are of a similar nature, job design may have no impact whatsoever on reducing boredom Ignores the benefits that may be achieved through job specialisation, and efficiency may in fact decline

20. Job Rotation Involves an employee changing tasks or jobs in an attempt to reduce boredom and increase motivation Employees can become multi-skilled Productivity may be lost if employees need to be trained to carry out new tasks Boredom may not be reduced if employees are simply rotated from one boring job to another

21. Job Enrichment Gives employees greater responsibility by allowing them to have more autonomy and more participation in the decision making process Gives employees a challenge and makes them feel that they are a part of the organisation Allows employees to make decisions about methods and sequence of work and increases their individual responsibility Criticised as a way of cutting the workforce Not all workers want to have more responsibility

22. Team Working Team working involves setting up the production process in teams The members of these teams decide between themselves how the work should be distributed and how problem solving should take place

23. Quality Circles Groups of employees who meet on a regular basis to discuss production techniques and make suggestions as to how production problems might be solved Employees are directly involved in the work that they are carrying out The major disadvantage is that they only work if they have the full support of both managers and employees

24. Empowerment Power or authority is given to employees so they can make their own decisions regarding their working life They are encouraged to consider problems they face and come up with some solutions Workers must have adequate training and/or good skill levels in order to be trusted to make the correct decisions