1. Motivation The reason why people want to work. Incentives
Encouragement
Enthusiastic
Drive

2. Content Motivation theory: Taylor Maslow Herzberg
McGregor’s Theory X & Theory Y
Mayo
Non monetary motivation:
Job enrichment
Job enlargement
Empowerment
Team Working
Financial Motivation:
Piecework
Salaries and wages
Fringe benefits
Performance related pay
Profit share
Share ownership
Leadership and management styles:
Authoritarian
Paternalistic
Democratic

3. F.W. Taylor
Taylor did lots of work in factories and believed that workers should be told how to do a job quickly
He believed they should be closely monitored & told what to do
He devised a PIECE RATE system
He believed workers could only be motivated by money

4. Maslow’s theory Maslow argued that workers have a hierarchy of needs.
The top two are higher-order needs.
Maslow argued that the need not achieved acts as the motivator.
The first three are lower-order needs.

5. Herzberg According to Herzberg motivating
factors are split into two groups:
1.  Hygiene factors- salary and security. Improving these lowers dissatisfaction but doesn't improve motivation or satisfaction
2. Motivators- recognition, responsibility, work itself, achievement, advancement - these lead to increased motivation

6. Herzberg Hygiene Factors Motivators Factors
Herzberg’s 2-factor theory (hygiene/motivation)
The absence of hygiene factors causes de-motivation, whereas the presence of hygiene factors does not cause motivation.
The absence of motivators does not cause de-motivation, whereas the presence causes motivation.
Hygiene Factors
Motivators Factors

7. Mayo
Mayo looked at motivation in the Hawthorne laboratories in the USA
Found that just by being studied the subjects levels of motivation increased
Highlighted the importance of team work and group dynamics to motivation

8. McGregor
X Y

9. McGregor’s Theory Theory X Managers Believe that workers
He believed there were 2 types of managers that affected motivation
Theory X Managers
Believe that workers
Don’t like working
Do as little work as possible
Can’t be trusted
Only interested in pay
Must be told what to do
Theory Y Managers
Believe that workers
Enjoy their work
Work hard to gain rewards
Can be trusted
Are motivated by factors
other than pay
Can work independently

10. What have we learnt? Discuss with a partner before you
share it with the class

11. Pair work Financial motivators: Non-Financial motivators: Wages
Salaries
Piece rate
Commission
Profit sharing
Bonus
Performance related pay
Non-Financial motivators:
Fringe benefits
Job satisfaction
Job rotation
Job enlargement
Job enrichment

12. Non Monetary Forms of Motivation- Job Enrichment
When employees jobs are redesigned to provide them with more challenging and complex tasks
Increase in the range of tasks an individual does
Workers have more responsibility for their own management
Workers are able to identify and solve any problems that they encounter
Gives workers training to improve skills so can meet increased job demands

13. Job Enlargement
Giving employees more duties of a similar level of difficulty
Employees have more jobs to do at the same level
Workers carry out a range of duties rather than a single duty which helps to increase motivation

14. Employee Empowerment
Empowerment – the process of giving workers a greater control over their work
It can make work more interesting as suits individual needs
Needs training and time to be effective

15. Team working
Where organisations break down production into large units where each unit is responsible for a particular area
Fulfils individuals social needs which helps to increase motivation
Teams can include:
Production teams
Quality circle teams
Management teams

16. Monetary Forms of Motivation – Piecework
Employees paid due to quantity produced
Now with minimum wage legislation employers need to ensure piece workers hit the threshold

17. Salaries and Wages Salaries – annual and paid monthly
If you get a salary work a set number of hours as set out in contract
Wages – paid weekly
Have to be at work for a set time, paid overtime for any extra hours
Salaries and wages are often seen as the key motivator for an individual to work

18. Fringe benefits
Rewards received by employees in addition to their wages or salary
Often classified as “perks” of the job
Examples:
Company car
Lunch
Private health care
Pensions
These can increase employee loyalty

19. Performance Related Pay (PRP)
Some of an employees pay is linked to the achievement of targets at work
Targets may be sales targets or performance appraisal

20. Criticisms of PRP
Many employees see this as unfair as can be based on an appraisal interview
Lots of businesses don’t put sufficient money aside so employees only get a small bonus

21. Developments in PRP
Increasingly firms are using a system called Variable pay
This a flexible type of PRP which offers employees a highly individual pay system related to their performance
Higher rewards for star performers

22. Profit Sharing Employees receive part of the business profits
Profits can be paid in cash / shares
This helps motivate the workers to earn the company profit as they see the financial incentive for themselves – this can raise efficiency and productivity in the organisation

23. Share Ownership These can be either:
Allowing employees opportunity to purchase shares after saving for a period of time
Share options – mangers have the opportunity to buy company shares on an agreed date in future at current rate
Having share options increases the feeling of ownership for an employee acting as an incentive for them to work harder

24. Leadership
Influencing others to achieve certain aims or objectives. Effective leadership skills can help a manager carry out their duties

25. Leadership Styles - Authoritarian
Senior managers take decisions with little involvement of juniors
Sets objectives
Allocates tasks
Leader retains control throughout
Communication goes down from leader to consumer

26. Paternalistic
Dictatorial, but decisions are taken in best interests of employees
Explains decisions
Ensures workers social / leisure needs met
Communication mainly downward but some feedback

27. Democratic Leadership
Running a business based on majority decisions
Encourages employees to take part in decision making
Uses delegation
Extensive two way communication

28. Summary
Taylor says that people are motivated by money – scientific management
Maslow developed hierarchy of needs that need to be fulfilled
Herzberg – 2 factor theory hygiene factors and motivators
Mayo – non monetary motivation
Non monetary motivation includes job enrichment, job enlargement, empowerment and team working
People are also motivated by money, this can be the form of salaries / wages, performance related or can take the form of fringe benefits, profit share and shares
An Authoritarian manager makes all decisions
A Paternalistic manager makes decisions with the agreement of workers
A Democratic manager runs a business on majority decisions
McGregor’s Theory X and Theory Y – Theory X = monetary motivation, Theory Y = non monetary motivation

29. What have we learnt? Discuss with a partner before you
share it with the class