1.4.4 Employee Motivation Flashcards
Describe motivation
- Motivation is the factors influencing the way people behave
- Financial incentives
- Non-financial incentives
- Individual character
- Desire to achieve a goal
- Motivated employees will be engaged employees
- Engaged employees are those who are fully committed to their role and strive to help the business achieve its objectives
What are employee motivation benefits
- Higher labour productivity
- Lower labour turnover
- Higher retention rates
- Lower unit costs
- Lower absenteeism
- Reduced presentism
- Improved customer service
- Better workplace relations
Theories of motivation include
- Taylor’s scientific management
- Mayo’s human relations theory
- Maslow’s hierarchy of needs
- Herzberg’s two factor theory
Describe Frederick Winslow Taylor’s theory
●Taylor believed that workers were not capable of understanding their tasks and should follow strict rules on how to produce products
●All tasks should be studied scientifically using a study of time and motion
●The most efficient way of carrying out a task will hence be identified
●Each employee can then be trained and instructed in exactly how to do a job in the most efficient manner
●Workers should be closely supervised
●He coined the term economic man believing money is the key to motivation
●His ideas are linked to piece rate, the division of labour and mass production
Describe George Elton mayos theory
●Believed that workers must be seen as members of a group not as individuals
●He emphasised the informal work group as the means to improving productivity
●He believed that workers had ‘social needs’ and that these should take precedence over other areas such as money as a motivator
●Changes in working conditions and financial incentives have little impact on labour productivity
●In his ‘Hawthorne experiments’ he looked at the power of informal, as opposed to formal, groups as a basis for production in the workplace
Describe Abraham Harold Maslows theory
●Maslow’s hierarchy of needs is based on seeing human needs as being placed in order, each need must be fulfilled before one could move on to the next
●Employees can be motivated by being presented with the opportunity to achieve the next level
Higher needs Self actualisation Love and belongingness needs Self esteem needs Surely And security needs Psychological needs Lower order needs
Describe Frederick Irving herzberg
●Job satisfaction is a key factor leading to motivation
●Job satisfaction could be influenced both positively and negatively
Motivating factors
● if present, lead to job satisfaction and hence motivation
● achievement, recognition, work, responsibility, promotion and growth
Hygiene factors
● if present do not lead to motivation but if absent lead to dissatisfaction
● pay and benefits, company policy, workplace relationships, work conditions, status and job security
What are financial incentives
Financial incentives are the variety of methods that have a money value and are used to reward the workforce and influence their behaviours at work
What are non financial incentives
Are the methods off motivating employees through elements of job design
Financial methods of motivation include
- Piece rate is when payment is based on the number of items (pieces) produced by an employee
- Commission is when payment is based on the number of units sold
- Bonus is an additional, lump sum, one off payment to an employee for meeting individual, team or company targets
- Profit share is when a proportion of employee pay varies with the profits of the company
- Performance related pay (PRP) is when employees receive a bonus based on the performance of the employee measured against a pre agreed range of criteria
Non financial techniques to improve employee performance include
●Consultation is the process of seeking the thoughts and opinions of employees prior to making decisions that may affect them
●Empowering employees involves delegating responsibility to employees, allowing them to use their abilities and to have a greater say in the decision-making process of the company
●Team working is where employees are organised into groups and work together in order to meet set objectives
●Flexible working gives employees greater control over their own work routines e.g. start and finish time, may include the ability to work from home
•Job enrichment is an increase in the level of responsibility that an employee has in order to increase motivation
•Job rotation is varying the tasks that an employee does to reduce boredom and increase the range of skills that the worker has
•Job enlargement is an increase in the number, as opposed to level, of responsibilities that an employee has in order to increase motivation
•Delegation involves the passing of authority down the hierarchy
•Authority occurs when an employee is given the right to do something by their superiors
•Responsibility remains with the manager
•This will:
•free up time for management
•motivate workers by providing them job enrichment
•may mean that decisions are being made closer to the grass roots
