1. Motivation

2. 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

3. 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 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.

4. 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.

5. 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.

6. 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.

7. 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. Need Theory
People are motivated to obtain outcomes at work to satisfy their needs.
A need is a requirement for survival.
To motivate a person:
1)Managers must determine what needs worker wants satisfied.
2)Ensure that a person receives the outcomes when performing well.
Several needs theories exist.
Maslow’s Hierarchy of Needs.
Alderfer’s ERG.

9. Lower level needs must be satisfied before higher needs are addressed.
Hierarchy of Needs
Table 12.1
Need Level
Description
Examples
Self-
Actualization
Realize one’s
full potential
Use abilities
to the fullest
Esteem
Feel good
about oneself
Promotions
& recognition
Belongingness
Social
interaction, love
Interpersonal
relations, parties
Safety
Security, stability
Job security,
health insurance
Physiological
Food, water,
shelter
Basic pay level
to buy items
Lower level needs must be satisfied before higher needs are addressed.

10. Alderfer’s ERG Table 12.2 Self-development, creative work
Growth
Self-development,
creative work
Worker continually
improves skills
Relatedness
Interpersonal
relations, feelings
Good relations,
feedback
Existence
Food, water,
shelter
Basic pay level
to buy items
Lowest
Highest
Need Level
Description
Examples
After lower level needs satisfied, person seeks higher needs. When
unable to satisfy higher needs, lower needs motivation is raised.

11. Motivation-Hygiene Theory
Focuses on outcomes that can lead to high motivation, job satisfaction, & those that can prevent dissatisfaction.
Motivator needs: related to nature of the work and how challenging it is.
Outcomes are autonomy, responsibility, interesting work.
Hygiene needs: relate to the physical & psychological context of the work.
Refers to a good work environment, pay, job security.
When hygiene needs not met, workers are dissatisfied. Note: when met, they will NOT lead to higher motivation, just will prevent low motivation.

12. Goal Setting Theory
Focus worker’s inputs in the direction of high performance & achievement of organizational goals.
Goal is what a worker tries to accomplish.
Goals must be specific and difficult for high performance results.
Workers put in high effort to achieve such goals.
Workers must accept and be committed to them.
Feedback on goal attainment also is important.
Goals point out what is important to the firm.
Managers should encourage workers to develop action plans to attain goals.