1. Motivation THE TIMES 100

2. 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

3. THE TIMES 100 Monetary methods of motivation Fringe benefits Examples include company cars and discount vouchers. May not encourage greater productivity but often build company loyalty. BonusesA payment usually related to the achievement of a target. Usually easier to apply to sales or production rather than the provision of a service. Profit share Employees are encourage to ensure that the business in profitable, however, it is usually spread evenly between both hardworking and less hardworking staff.

4. THE TIMES 100 Monetary methods of motivation CommissionPayments are made in relation to the number or value of sales made. Encourages increased sales but may lead to heavy handed selling techniques. Piece ratePayments are made per item produced. Encourages productivity but sometimes at the expense of quality. OvertimeAdditional 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.

5. THE TIMES 100 Non-monetary methods of motivation Jot rotationEmployees 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.

6. THE TIMES 100 Non-monetary methods of motivation EmpowermentAllowing workers greater autonomy. The have greater freedom and power to control their own working lives. Team-workingInvolves organising workers into groups, setting team goals and awarding team rewards to achieving targets. Team-working fits with Mayo’s findings. ParticipationEmployees participate in organisational decision making through such things as quality circles and works councils.

7. THE TIMES 100 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

8. THE TIMES 100 Maslow Self actualisationSelf esteemSocialSafetyPhysiological 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.

9. THE TIMES 100 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

10. THE TIMES 100 Herzberg ‘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.

11. THE TIMES 100 Taylor Taylor’s Theory of Scientific Management Taylor suggested that workers are only motivated by pay. Scientific management 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.

12. THE TIMES 100 Motivation in context

13. THE TIMES 100 The importance of motivation Why is it important for organisations like Siemens to have a motivated workforce? Use the Siemens case study to help you

14. THE TIMES 100 Motivating factors at Siemens What might employees find motivating about working in a creative environment like Siemens? Use the case study to help you

15. THE TIMES 100 Higher order needs How does Siemens help its workers meet the higher order needs in Maslow’s hierarchy? Use the case study to help you

16. THE TIMES 100 Herzberg and Siemens What did Herzberg mean by ‘hygiene factors’ and how has Siemens endeavoured to prevent dissatisfaction? Use the case study to help you

17. THE TIMES 100 Useful resources Motivation lesson suggestions and activities (The Times 100) Siemens case study (The Times 100) Siemens website