1.7: Motivation Flashcards
1.7.1: Motivational Theorists 1.7.2: Financial and Non-Financial Motivation
What were the main components of Taylor’s Scientific Management Theory
He believed that employees were only motivated by pay and that they should be monitored closely, tasks need to be small to reduce the slack of managers, it is closely related to an autocratic leadership
What is Taylor’s Scientific Management Theory
Science Not Role of Thumb then Scientifically train employees then Ensure most efficient ways of working are used then Divide the work between managers and Pay on result via Piece Rate system
How does Taylor’s theory work within a business
Employees are incentivized to work harder because they get paid on the result (Piece Rate), they earn more but so does the business, and because production is the most efficient profits can be maximized. companies like Ford and Amazon still use this system today
What is Mayo’s Human Relations Theory
His theory accepted that workers can be motivated by meeting their social needs so he conducted the Hawthorne Studies
How does Mayo’s theory work within a business
Managers have to treat employees as equals and they have to show a personal interest in them, also have to promote positive group values and relationships and managers have to understand the psychology of workers to know their needs and how to support them
What are the limitations of Mayo’s Human Relations theory
Showing an interest can distract employees = decrease productivity, behaviour is difficult to predict because the employees will have more control and adding responsibilities can cause extra stress
What is Maslow’s Hierarchy of Needs Theory
He believed you have to start with basic needs and work your way up, but this theory ignore individual needs and assumes all employees to have the same needs and priorities
What does Maslos Hierarchy of Needs look like in practice
Basics: Facilities, Water, Cleanliness and Wages then Safety: Pension Plans, Contracts and Safe Environment then Social Belonging: Teamwork, Social Events and Holidays then Self-Esteem: Appraisals and Enrichment then Self-Actualisation: Challenge with new roles and responsibilities
What was Herzberg’s Two-Factor Theory
Employee Satisfaction has two dimensions: Hygiene and Motivation, but crucially hygiene factors don’t motivate but they cause job dissatisfaction if not met
What were the main components of Herzberg’s Two-Factor Theory
Hygiene Factors: Wage, Job Security, Relationships, Working Conditions and Work-Life Balance. Motivation Factors: Enrichment, Recognition, Training and Career Growth
What are the drawbacks of The Two-Factor Theory
Factors that motivate employees change over time also motivation rewards come to be expected and it maybe demotivating for employees if they are not motivated as much
What is Vroom’s Expectancy Theory
To motivate staff management must offer rewards for completing a worthwhile staff but crucially the employee must be capable of completing the task
What does Vroom’s Expectancy Model look like
Expectancy (Effort) Will my effort lead to high performance? X Instrumentality (Performance) Will Performance lead to outcomes? X Valence (Rewards) Do I find the outcomes desirable?
What is Porter and Lawlor’s Expectancy theory
The same effort and productivity levels lead employees to expect the same rewards it is the job of the manager to ensure rewards are equal and that the employees have the right training and equipment to receive these rewards
Porter and Lawlor came up with two reward categories. What are they and describe them ?
Intrinsic: Positive Feelings like satisfaction and sense of achievement
Extrinsic: Outside the individual like bonuses and promotions
But the reward has to match expectancies
List all financial motivators
Salary, Bonuses, Commission, Piece Rate, Profit Sharing, Share Ownership and Performance-Related Pay
What is Performance-Related Pay (PRP)
Rewards of an individual employee to the performance of the organisation often used to help managers complete corporate objectives
What are the Benefits and Drawbacks of Performance-Related Pay (PRP)
Benefits: Retain Staff, Encourages Good Performance, and Higher pay is cancelled out by gains in productivity
Drawbacks: Inconsistency, Unfairness amongst staff and Targets may not be challenging enough
What is a Share Ownership scheme
Employees are given shares or allowed to buy shares at some from of discount (not always) and most schemes will have a tax benefit for the employee
What are the Benefits and Drawbacks of a Share Ownership scheme
Benefits: benefit from company successes, motivated to succeed and everyone is working toward a common goal
Drawbacks: Long due to tax, legal and admin costs, demotivating is share prices falls rapidly and new share issues will dilute the value of current shares
List all the Non-Financial Motivators
Job Design, Job Enlargement, Job Rotation, Job Enrichment, Empowerment, Teamworking and Flexible Working
What is Job Rotation
Moving between tasks or jobs so that employees gain a variety of skills and experience
What are the benefits and drawbacks of Job Rotation
Benefits: Flexible Labour, Multi-Skilled Employees, Increased Motivation and Reduced Boredom
Drawbacks: Training Costs, Tasks must be meaningful and Switching creates uncertainty among staff
What is Job Enlargement
It can take place through Job Enrichment (Vertical Extension) or Job Rotation (Horizontal Extension)
What are the benefits and drawbacks of Job Enlargement
Benefits: Greater Recognition, Improved chances of promotion, and helps increase and improve an employee’s skills
Drawbacks: Demoralising due to excessive workloads and extra work doesn’t always mean extra pay
Evaluate Motivation
Individuals are motivated by different things and these things change but motivated staff are less likely to leave reducing costs further in the long term rather than the short term
