Business Management 2.4 – MOTIVATION
MOTIVATION – Intrinsic and extrinsic factors that stimulate people to take actions that lead to
achieving a goal
Extrinsic: external rewards associated when Intrinsic: satisfaction derived from working on
working on a task. Pay and completing a task
Motivated employees help achieve its objectives as cost-effectively as possible. Has an impact on
productivity levels and the competitiveness of the business. Low labour turnover.
Indicators of poor staff motivation:
Absenteeism
Lateness
Poor performance
Accidents
Labour turnover
Grievances
Poor response rate
MOTIVATION THEORIES
TAYLOR AND SCIENTIFIC MANAGEMENT
To increase workers’ performance and productivity. Most workers were untrained and non-
specialised and managers had no training in dealing with people. No security of employment
Steps for improving worker productivity
1. Select workers to perform a task
2. Observe their performance and note the key elements of it
3. Record time to do each part of the task
4. Identify quickest method recorded
5. Train workers in the quickest method and do not allow changes
6. Supervise and time them
7. Pay on a basis of results
Taylor’s approach Relevance to modern industry Limitations
Economic man Money motivate staff. Wage Workers have further needs (not
levels based on output (“piece only extrinsic)
rate”)
Select the right people Importance of careful staff Requires an appropriate
for each job selection procedure
Observe and record Known as “time and motion Seen as a way of making them
performance study”. Used but with work harder
cooperation of staff
Method study Efficiency depends on best ways Giving instructions with no
of working being adopted discussion is undesirable
Piece-rate payment Difficult to identify output of Quality vs quantity. Vary output
systems each worker according financial needs
MASLOW’S HIERARCHY OF HUMAN NEEDS
Identifies the main needs that humans have. Needs satisfied = motivation = more productive
1
, Business Management 2.4 – MOTIVATION
Needs start on the lowest level
Once one level is satisfied, humans
strive to achieve the next level
Self-actualisation is difficult to reach
Once a need has been satisfied, it will
no longer motivate individuals to
action
Reversion is possible
Limitations
Not everyone has the same needs
Difficult to identify which need has
been met and the level
Money not only satisfies physical
needs
Self-actualisation is never permanently achieved
HERZBERG AND TWO-FACTOR THEORY
Discover factors that led them to having good and negative feelings about their jobs.
Job satisfaction from five main factors (motivators): achievement, recognition for achievement,
work itself, responsibility and advancement
Job dissatisfaction from five factors (hygiene factors): company policy and administration,
supervision, relationships with others, salary and working conditions. If they are met they won’t
create a well-motivated workforce
Consequences:
1. Pay and working conditions can be improved to remove dissatisfaction. Payment moves people
(movement) to do a job but does not motivate them to do it well
2. Motivators could be provided by adopting the principles of “job enrichment”. Features:
Assign workers’ complete units of work. Team of workers rather than individuals on their
own
Provide feedback on performance (two-way communication). Recognize well done work.
Workers are responsible of the quality of their own work, less quality-controlling
inspectorate.
Give workers a range of tasks, some beyond workers’ experience to achieve self-
actualisation
3. A business could offer higher pay, improved working conditions and less heavy-handed
supervision. Job should be interesting, rewarding and challenging
ADAMS EQUITY THEORY
Employees are demotivated if inputs (effort, loyalty, commitment and skills) are greater than
outputs (financial rewards, recognition, security and sense of achievement). Balance on what they
give and receive
PINK
Elements of intrinsic motivation
Autonomy
2
MOTIVATION – Intrinsic and extrinsic factors that stimulate people to take actions that lead to
achieving a goal
Extrinsic: external rewards associated when Intrinsic: satisfaction derived from working on
working on a task. Pay and completing a task
Motivated employees help achieve its objectives as cost-effectively as possible. Has an impact on
productivity levels and the competitiveness of the business. Low labour turnover.
Indicators of poor staff motivation:
Absenteeism
Lateness
Poor performance
Accidents
Labour turnover
Grievances
Poor response rate
MOTIVATION THEORIES
TAYLOR AND SCIENTIFIC MANAGEMENT
To increase workers’ performance and productivity. Most workers were untrained and non-
specialised and managers had no training in dealing with people. No security of employment
Steps for improving worker productivity
1. Select workers to perform a task
2. Observe their performance and note the key elements of it
3. Record time to do each part of the task
4. Identify quickest method recorded
5. Train workers in the quickest method and do not allow changes
6. Supervise and time them
7. Pay on a basis of results
Taylor’s approach Relevance to modern industry Limitations
Economic man Money motivate staff. Wage Workers have further needs (not
levels based on output (“piece only extrinsic)
rate”)
Select the right people Importance of careful staff Requires an appropriate
for each job selection procedure
Observe and record Known as “time and motion Seen as a way of making them
performance study”. Used but with work harder
cooperation of staff
Method study Efficiency depends on best ways Giving instructions with no
of working being adopted discussion is undesirable
Piece-rate payment Difficult to identify output of Quality vs quantity. Vary output
systems each worker according financial needs
MASLOW’S HIERARCHY OF HUMAN NEEDS
Identifies the main needs that humans have. Needs satisfied = motivation = more productive
1
, Business Management 2.4 – MOTIVATION
Needs start on the lowest level
Once one level is satisfied, humans
strive to achieve the next level
Self-actualisation is difficult to reach
Once a need has been satisfied, it will
no longer motivate individuals to
action
Reversion is possible
Limitations
Not everyone has the same needs
Difficult to identify which need has
been met and the level
Money not only satisfies physical
needs
Self-actualisation is never permanently achieved
HERZBERG AND TWO-FACTOR THEORY
Discover factors that led them to having good and negative feelings about their jobs.
Job satisfaction from five main factors (motivators): achievement, recognition for achievement,
work itself, responsibility and advancement
Job dissatisfaction from five factors (hygiene factors): company policy and administration,
supervision, relationships with others, salary and working conditions. If they are met they won’t
create a well-motivated workforce
Consequences:
1. Pay and working conditions can be improved to remove dissatisfaction. Payment moves people
(movement) to do a job but does not motivate them to do it well
2. Motivators could be provided by adopting the principles of “job enrichment”. Features:
Assign workers’ complete units of work. Team of workers rather than individuals on their
own
Provide feedback on performance (two-way communication). Recognize well done work.
Workers are responsible of the quality of their own work, less quality-controlling
inspectorate.
Give workers a range of tasks, some beyond workers’ experience to achieve self-
actualisation
3. A business could offer higher pay, improved working conditions and less heavy-handed
supervision. Job should be interesting, rewarding and challenging
ADAMS EQUITY THEORY
Employees are demotivated if inputs (effort, loyalty, commitment and skills) are greater than
outputs (financial rewards, recognition, security and sense of achievement). Balance on what they
give and receive
PINK
Elements of intrinsic motivation
Autonomy
2
