Motivation

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. 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 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. 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 McGregor’s Theory He believed there were 2 types of managers that affected motivation • 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 • Non-Financial motivators: • Fringe benefits • Job satisfaction • Job rotation • Job enlargement • Job enrichment • Financial motivators: • Wages • Salaries • Piece rate • Commission • Profit sharing • Bonus • Performance related pay

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