1. Motivation

2. Agenda Define motivation Monetary motivators None monetary motivators
Motivation Theories:
Maslow’s hierarchy of needs
Mayo’s theory of human relations
Frederick Taylor- Theory of Scientific Management
Herzberg’s two-factor theory

3. Learning Goals What is motivation?
Understand Monetary methods of motivation
Understand none-monetary methods of motivation
Understand and apply the 3 motivational theories (Elton Mayo – the human relations movement, Maslow’s Hierarchy of needs, Frederick Taylor Theory of Scientific Management

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

5. Monetary methods of motivation
Fringe benefits
Examples include company cars and discount vouchers. May not encourage greater productivity but often build company loyalty (increase organizational commitment).
Bonuses
A 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 encouraged to ensure that the business is profitable. However it is usually spread evenly between both hard-working and less hard-working staff.

6. Monetary methods of motivaiton
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 lower productivity during normal working hours if employees know they can access overtime payments.

7. 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.

8. 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.

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

10. Maslow’s hierarchy of needs

11. Abraham Maslow
Abraham Maslow was an American psychologist. He fully introduced his hierarchy of needs in 1954 to explain how people are motivated. Although Maslow’s theory was not intended to apply only to the workplace, it has practical applications in business.

12. Maslow’s hierarchy of needs
Self actualisation
Self esteem
Social
Safety
Physiological

13. 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 help to meet these needs.

14. Maslow and the workplace
Maslow’s needs
Examples of how these may be met in the workplace
Physiological/Basic
Pay
Decent working conditions
Safety
Health and safety provision
Job security
Social
Staff room
Team-working opportunities
Self-esteem
Recognition e.g. Employee of the month
The chance to make a difference
Self-actualisation
Training
Opportunities for promotion and career progression

15. However...
One criticism of Maslow’s hierarchy is that workers may not seek to have all their needs met in the workplace. For example, if a worker has a hectic social and family life, they may not need to have their social needs met at work.
Some researchers have questioned the order that Maslow has given the needs, whereas others even question the existence of a hierarchy at all.

16. Elton Mayo – the human relations movement

17. Elton Mayo
Elt0n Mayo was a psychology lecturer in Australia and the USA during the early part of the 20th century. Mayo’s human relations school of management theory came out of a study he carried out at Western Electric company’s Hawthorne Plant in Chicago.

18. 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 the physical conditions and pay matter less than social interaction when motivating employees.

19. Humans relations and firms
According to Mayo, workers will be motivated if given
the opportunity to:
Work in teams
Get involved in the direction and decision making of the organisation
Access effective communication channels with managers and other workers.

20. Frederick Taylor Theory of Scientific Management

21. 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.

22. Modern Time - Movie Clip

23. Herzberg’s two-factor theory (review)

24. Frederick Herzberg
Frederick Herzberg was an American psychologist. His two-factor theory was derived from the research he carried out in the 1950s to find out what caused satisfaction and dissatisfaction in the workplace.

25. Two-factor theory
‘Motivators’ can motivate but a lack of motivators does not cause dissatisfaction
‘Hygiene factors’ can cause dissatisfaction but cannot motivate

26. Motivators
Motivators are factors that can motivate workers by providing job satisfaction.
Motivators are concerned with the job itself and include achievement, recognition, opportunities for career progression and the responsibility.

27. Hygiene Factors
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.

28. Two-factor and firms To create a motivated workforce firms must ensure
that:
Hygiene factors are met so workers are not demotivated
Motivators are present to allow workers to be satisfied
However, it may be difficult to provide motivators in
low skilled jobs and, indeed, the workers themselves
may not welcome career advancement or greater
responsibility.

29. Comparison

30. Virgin Mobile Case Study
Answer the questions on the handout and question 3+4 at the end of the case.
Activity 9.1