Section 2
Motivation
People work for several reasons:
• Have a better standard of living: by earning incomes they can
satisfy their needs and wants
• Be secure: having a job means they can always maintain or
grow that standard of living
• Gain experience and status: work allows people to get better
at the job they do and earn a reputable status in society
• Have job satisfaction: people also work for the satisfaction of
having a job
Motivation is the reason why employees want to work hard and
work effectively for the business. Money is the main motivator,
as explained above. Other factors that may motivate a person to
choose to do a particular job may include social needs(need to
communicate and work with others), esteem needs (to feel
important, worthwhile), job satisfaction (to enjoy good work),
security (knowing that your job and pay are secure- that you will
not lose your job).
Why motivate workers? Why do rms go to the pain of making
sure their workers are motivated? When workers are well-
motivated, they become highly productive and effective in their
work, become absent less often, and less likely to leave the
job, thus increasing the rm’s ef ciency and output, leading to
higher pro ts. For example, in the service sector, if the employee
is unhappy at his work, he may act lazy and rude to customers,
leading to low customer satisfaction, more complaints and
ultimately a bad reputation and low pro ts.
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,Motivation Theories
• F. W. Taylor: Taylor based his ideas on the assumption that
workers were motivated by personal gains, mainly money
and that increasing pay would increase productivity (amount of
output produced). Therefore he proposed the piece-rate
system, whereby workers get paid for the number of output
they produce. So in order, to gain more money, workers would
produce more. He also suggested a scienti c management
in production organisation, to break down labour (essentially
division of labour) to maximise output
However, this theory is not entirely true. There are various
other motivators in the modern workplace, some even more
important than money. The piece rate system is not very
practical in situations where output cannot be measured
(service industries) and also will lead to (high) output that
doesn’t guarantee high quality.
• Maslow’s Hierarchy: Abraham Maslow’s hierarchy of needs
shows that employees are motivated by each level of the
hierarchy going from bottom to top. Mangers can identify
which level their workers are on and then take the necessary
action to advance them onto the next level.
fi
, One limitation of this theory is that it doesn’t apply to every
worker. For some employees, for example, social needs aren’t
important but they would be motivated by recognition and
appreciation for their work from seniors.
• Herzberg’s Two-Factor Theory: Frederick Herzberg’s two-
factor theory, wherein he states that people have two sets of
needs:
Basic animal needs called ‘hygiene factors’:
• status
• security
• work conditions
• company policies and administration
• relationship with superiors
• relationship with subordinates
• salary
Needs that allow the human being to grow psychologically,
called the ‘motivators’:
• achievement
• recognition
• personal growth/development
• promotion
• work itself
According to Herzberg, the hygiene factors need to be satis ed, if
not they will act as de-motivators to the workers. However hygiene
factors don’t act as motivators as their effect quickly wear off.
Motivators will truly motivate workers to work more effectively.
fi
Motivation
People work for several reasons:
• Have a better standard of living: by earning incomes they can
satisfy their needs and wants
• Be secure: having a job means they can always maintain or
grow that standard of living
• Gain experience and status: work allows people to get better
at the job they do and earn a reputable status in society
• Have job satisfaction: people also work for the satisfaction of
having a job
Motivation is the reason why employees want to work hard and
work effectively for the business. Money is the main motivator,
as explained above. Other factors that may motivate a person to
choose to do a particular job may include social needs(need to
communicate and work with others), esteem needs (to feel
important, worthwhile), job satisfaction (to enjoy good work),
security (knowing that your job and pay are secure- that you will
not lose your job).
Why motivate workers? Why do rms go to the pain of making
sure their workers are motivated? When workers are well-
motivated, they become highly productive and effective in their
work, become absent less often, and less likely to leave the
job, thus increasing the rm’s ef ciency and output, leading to
higher pro ts. For example, in the service sector, if the employee
is unhappy at his work, he may act lazy and rude to customers,
leading to low customer satisfaction, more complaints and
ultimately a bad reputation and low pro ts.
fi fi fifi fi
,Motivation Theories
• F. W. Taylor: Taylor based his ideas on the assumption that
workers were motivated by personal gains, mainly money
and that increasing pay would increase productivity (amount of
output produced). Therefore he proposed the piece-rate
system, whereby workers get paid for the number of output
they produce. So in order, to gain more money, workers would
produce more. He also suggested a scienti c management
in production organisation, to break down labour (essentially
division of labour) to maximise output
However, this theory is not entirely true. There are various
other motivators in the modern workplace, some even more
important than money. The piece rate system is not very
practical in situations where output cannot be measured
(service industries) and also will lead to (high) output that
doesn’t guarantee high quality.
• Maslow’s Hierarchy: Abraham Maslow’s hierarchy of needs
shows that employees are motivated by each level of the
hierarchy going from bottom to top. Mangers can identify
which level their workers are on and then take the necessary
action to advance them onto the next level.
fi
, One limitation of this theory is that it doesn’t apply to every
worker. For some employees, for example, social needs aren’t
important but they would be motivated by recognition and
appreciation for their work from seniors.
• Herzberg’s Two-Factor Theory: Frederick Herzberg’s two-
factor theory, wherein he states that people have two sets of
needs:
Basic animal needs called ‘hygiene factors’:
• status
• security
• work conditions
• company policies and administration
• relationship with superiors
• relationship with subordinates
• salary
Needs that allow the human being to grow psychologically,
called the ‘motivators’:
• achievement
• recognition
• personal growth/development
• promotion
• work itself
According to Herzberg, the hygiene factors need to be satis ed, if
not they will act as de-motivators to the workers. However hygiene
factors don’t act as motivators as their effect quickly wear off.
Motivators will truly motivate workers to work more effectively.
fi
