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Motivation - PowerPoint PPT Presentation

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Motivation. The reason why people want to work. Incentives Encouragement Enthusiastic Drive. Content. Motivation theory: Taylor Maslow Herzberg McGregor’s Theory X & Theory Y Mayo Non monetary motivation: Job enrichment Job enlargement Empowerment Team Working

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The reason why people want to work.






  • 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

F w taylor
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

Maslow s theory
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.


  • 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


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


  • 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

Mcgregor s theory

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

What have we learnt
What have we learnt?

Discuss with a

partner before you

share it with the class

Pair work
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

Non monetary forms of motivation job enrichment
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

Job enlargement
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

Employee empowerment
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

Team working
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

Monetary forms of motivation piecework
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

Salaries and wages
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

Fringe benefits
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

Performance related pay prp
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

Criticisms of prp
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

Developments in prp
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

Profit sharing
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

Share ownership
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


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

Leadership styles authoritarian
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


  • Dictatorial, but decisions are taken in best interests of employees

  • Explains decisions

  • Ensures workers social / leisure needs met

  • Communication mainly downward but some feedback

Democratic leadership
Democratic Leadership

  • Running a business based on majority decisions

  • Encourages employees to take part in decision making

  • Uses delegation

  • Extensive two way communication


  • 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

  • What have we learnt1
    What have we learnt?

    Discuss with a

    partner before you

    share it with the class