1.4.4 Motivation in theory and practice

Question 1

Motivation

Answer 1

The willingness to work and achieve a given target or goal.

Question 2

Importance of employee motivation to a business?

Answer 2

• Increased productivity and efficiency –> Generates high levels of output and quality.
• More reliable and dependable workers e.g. show up on time, fewer sick days, meet deadlines.
• Lower turnover rates.

Question 3

Financial methods of motivation

Answer 3

• Piecework
• Commission
• Performance-related-pay
• Bonus
• Profit sharing

Question 4

Piecework

Answer 4

Payment based on the number of units of output produced.

Question 5

Advantage and disadvantage of piecework

Answer 5

+ Incentive to increase output.
- Employees may ignore factors such as quality.

Question 6

Commission

Answer 6

A bonus paid based on achieving a sales target.

Question 7

Advantage and disadvantage of commission

Answer 7

+ Incentive to increase sales revenue for the business.
- Focus taken away from other areas of the job such as customer service.

Question 8

Performance-related-pay

Answer 8

Workers are paid extra for meeting job-related targets.

Question 9

Disadvantages of performance-related-pay

Answer 9

• Difficult to ensure pay is fair across business.
• Expensive.

Question 10

Bonus

Answer 10

Additional payment given to staff as a reward for achieving targets.

Question 11

Profit sharing

Answer 11

Distributing a percentage of net profit across the workforce.

Question 12

Non financial methods of motivation

Answer 12

• Delegation
• Consultation
• Empowerment
• Team working
• Flexible working
• Job enrichment
• Job enlargement
• Job rotation

Question 13

Delegation

Answer 13

Transferring responsibility from a manager to their staff.

Question 14

Consultation

Answer 14

Seek input of staff on decisions that affect their work.

Question 15

Empowerment

Answer 15

Give staff greater control over their work and decision making.

Question 16

Job enrichment

Answer 16

Gives employees more challenging work.

Question 17

Job enlargement

Answer 17

Gives employees greater range of work to do at the same level.

Question 18

Job rotation

Answer 18

Moving staff between different roles in the business.

Question 19

Taylor’s scientific management

Answer 19

Workers do not naturally enjoy work and is need close supervision and control.
- Therefore managers should break down production into a series of small tasks.
- Workers should then be given appropriate training and tools so they can work as efficiently as possible on one set task.
- Workers are then paid according to the number of items they produce in a set period of time e.g. piece-rate-pay.
- As a result workers are encouraged to work hard and maximise their productivity.
- This theory is associated with manufacturing and factory work.
- Autocratic leadership style.

Question 20

Advantages and disadvantages of Taylor’s scientific management

Answer 20

+ Increased efficiency.
+ Specialisation of labour.
+ Improved training can lead to better performance.
- Workers may disengage from work if they are reduced to working in a machine-like system.
- This approach may not work for roles that require high levels of creativity.
- Overemphasis on efficiency reduces worker satisfaction and creativity.

Question 21

Mayo’s Theory

Answer 21

Mayo’s management theory is that employees are motivated far more by relational factors than by monetary rewards or environmental factors such as lighting.
- Businesses should re-organise production to encourage greater use of team working and introduce personnel departments to encourage greater management involvement.
- Involving workers in decision making and good communication helped to improve motivation.
- It is important that workers believe that their managers are interested in them.
- Financial incentives or changing working conditions did not permanently improve motivation.
- Paternalistic - workers want to feel like their managers are interested in them.
- Democratic - communication and opportunities to influence decisions are important.

Question 22

Advantages and disadvantages of Mayo’s theory

Answer 22

+ Improved job satisfaction.
+ Increased productivity.
+ Better communication.
+ Employee empowerment - increase workers sense of ownership and responsibility.
- Time consuming to build positive relationships.
- Lack of control as workers make more decisions.
- Resistance to change.

Question 23

Maslow Hierarchy of needs

Answer 23

• Five tiers of human needs that must be met for individuals to reach their full potential.
• At the base of the hierarchy are physical needs such as food, shelter and warmth. Businesses meet these needs by paying workers enough and providing a warm, dry, working environment.
• Once these needs are satisfied employees become motivated to achieve needs such as security and stability and so on.
• Businesses can motivate workers by giving them the opportunity to satisfy these needs at work.
• Methods to motivate employees will depend on where they are in the hierarchy.
• In very low paid jobs, money may be a motivator, but once money needs have been met, health and safety and job security become more important.
• Paternalistic leadership style.

Question 24

Advantages and disadvantages of Maslow’s hierarchy of needs

Answer 24

+ Higher employee satisfaction.
+ Increased motivation.
+ Improved employee performance.
- Businesses need to tailor their approach to meet the individual needs of their employees.
- Expensive.
- Time consuming - requires significant effort from management to connect individually to understand which opportunities for personal growth are required.

Question 25

Hertzberg’s 2 factor theory

Answer 25

A business needs to provide hygiene factors as without these workers will be dissatisfied.
- Working conditions.
- Salary.
- Policies and rules.
- Co-worker relations.
- Quality of supervision.

Motivators: In order to motivate workers business needs to:
1. Recognise and reward achievement.
2. Make job interesting.
3. Give workers responsibility.
4. Help workers to develop and progress.

• Democratic leadership style