2.2: Motivation

Question 1

Def. Motivation

Answer 1

Motivation is the internal and external factors that stimulate people to take actions that lead to achieving a goal.

Question 2

What are the benefits of motivated workers? (5)

Answer 2

Low labour turnover
High productivity
Enthusiasm to make suggestions for improvements
Low absenteeism
Prepared to accept responsibility

Question 2

What is the theory of economic man and how did this affect Taylor’s research?

Answer 2

The view is that man are driven or motivated by money alone. This formed basis of Taylor’s motivational suggestion and he used ‘piece rate’ system.

Question 3

What is scientific management?

Answer 3

A method F.W. Taylor has used as establishing ideas or hypothesis, studying and recording performance at work.

Question 3

What was Taylor’s scientific approach on finding out how to improve output per worker or general productivity? (7)

Answer 3

1) Select workers to perform the task
2) Observe and note key elements
3) Record time taken to complete tasks
4) Identify the quickest method to complete the task
5) Train all workers in this method and do not allow any alternations
6) Observe workers to see if the time is being exceeded
7) Pay workers on the basis of results - the theory of economic man

Question 4

What was Elton Mayo’s human relation theory?

Answer 4

Best known for ‘Hawthorne effect’ which is research over 5 year period at Hawthorn factory.
Based on assumption that working conditions affected worker’s productivity
There was a group that experienced improvement in working conditions and a group that didn’t (control group).
The results were that the productivity rose in both groups so conclusion was that -> Working conditions themselves are not important in determining productivity levels, there were other motivational factors to explore.
Changes to rest periods, payment systems, canteen food were made at 12-week intervals.
Output rose far above original level => there are other factors than working conditions that increase productivity.

Question 4

What were the results of Taylor’s work?

Answer 4

Taylor’s approach was widely taken up in the early 20th century when flow production was being introduced, where people only had to do 1 task.

Question 5

What were the conclusions of Mayo’s work? (5)

Answer 5

Changes in working conditions and financial rewards have little or no effect on productivity
When managemers consult with workers, motivation is improved.
Developing team spirit improves productivity
When workers are given some control, such as deciding on break times, motivation is improved.
Informal leaders of the groups can help establish goals for motivation.

Question 6

How does Mayo’s research affect businesses today? (3)

Answer 6

Employee participation is now encouraged.
Team working can be applied in many types of modern businesses
Consulting with workers has opened up new fields of research for industrial psychologist.

Question 7

What is Maslow’s hierarchy of human needs?

Answer 7

Maslow was concerned with identifying the main needs that humans have.
* The needs from lowest to highest are:
1) Physical needs e.g food, shelter
2) Safety needs e.g Health
3) Social needs e.g Friendship
4) Esteem needs e.g Respect and status
5) Self-actualisation, reaching full potential

Question 8

What are the limitations of Maslow’s approach? (4)

Answer 8

Not everyone has the same needs
In practice it is hard to identify whether the needs has been met.
Money is necessary to satisfy physical needs, but may also satisfy esteem needs
Self-actualisation is never permanently achieved.

Question 9

How was the Herzberg’s ‘two factor theory’ concluded?

Answer 9

• Herzberg made research on 200 professional workers
• His research was based on questionnaires and interviews with employees to discover:
  => Factors that led employees to having good feelings about their job
  => Factors that led employees to having bad feelings about their job

Question 10

What was the conclusion of Herzberg’s research? (5 5)

Answer 10

‘Two factor theory’
* Job satisfaction result from 5 main factors, which are called ‘motivators’:
1) Achievement
2) Recognition
3) The work itself
4) Responsibility
5) Advancement
* Job dissatisfaction resulted from 5 main factors, which are called ‘hygiene factors’, these were the factors that surrounded the job (extrinsic factors) or the work itself (intrinsic factors):
1) Company policies and administration
2) Supervision
3) Salary
4) Relationships with other workers
5) Working conditions

Question 11

What is McClelland’s motivational needs theory?

Answer 11

The motivational needs theory contains 3 types of motivational needs:
* Achievement motivation (n-ach): This person will seek for challenging goals and job advancement, has a constant need for feedback, and a need for accomplishment.
* Power motivation (n-pow): This person is authority motivated, has the desire to control others, the need to be influential and have an impact.
* Affiliation motivation (n-affil): This person has a need for friendly relationships, and tend to be good team members.

Question 12

How does Herzberg’s two factor theory affect businesses today?

Answer 12

1) Better pay and working conditions do not affect motivation on their own.
2) Herzberg suggests ‘job enrichment’ for motivation because:
* Provide complete units of work for a group of people to work on 1 part of the project instead of just 1 repetitive boring job for 1 person.
* Feedback on performance - provides recognition
* A range of tasks to provide challenge and ‘self actualisation’ from Maslow.
3) Higher pay may be quickly taken for granted if the job is not rewarding.

Question 13

What is the Vroom’s expectancy theory?

Answer 13

• Vroom believes that individuals choose to behave in ways they believe will lead to outcomes they want.
• Expectancy theory is based on 3 beliefs:
  1) ‘valence’ - the depth of want for an extrinsic award (e.g money) or intrinsic award (e.g satisfaction).
  2) ‘expectancy’ - the degree to which people believe that putting effort will lead to high level of performance
  3) ‘instrumentality’- the confidence of employees of getting what they desire.
• If one of the beliefs is missing, the employees will not be motivated.

Question 14

What are the financial reward systems? (7)

Answer 14

Hourly wage rate
Piece rate
Salary
Commission
Performance related pay
Profit sharing
Fringe benefits.

Question 15

Def. Hourly wage rate

Answer 15

Payment to a worker made for each hour worked.

This method is not linked to the level of output or effort.

Question 16

Def. Piece rate

Answer 16

Payment to a worker for each unit produced.

Question 16

Benefits of piece rate payment? (2)

Answer 16

It encourages greater effort and faster working
* The labour cost for each unit is determined in advance and this helps to set a price for the product.

Question 16

What are the disadvantages of piece rate payment? (5)

Answer 16

Output must be measurable and standardised.
May lead to falling quality and safety levels because of the rush
Workers may settle for a certain level of pay and may not be motivated for higher levels.
It provides little security over pay level, for example in the event of a production breakdown.
Worker are discouraged from accepting change at work as this might result in loss of pay.

Question 17

What are the advantages of salaries? (4)

Answer 17

It gives security of income
It gives status
It aids in costing as salaries may not vary
It’s suitable for jobs when output is not measurable

Question 17

Def. Salary

Answer 17

Annual income that is usually paid on a monthly basis.

Question 18

What are the disadvantages of salaries? (2)

Answer 18

Income is not related to productivity
* May lead to complacency of the salary earner

Question 19

Def. Commission

Answer 19

A payment to a sales person for each sale made. This method is similar to piece rate, however it has drawbacks when there’s ‘low quality production’. Team work is not induced.

Question 20

Def. Performance related pay (PRP)

Answer 20

A bonus scheme to reward staff for above average work performance. This is done by setting targets, and having annual appraisals of worker’s performance against set targets by paying bonuses.

Question 21

What are the advantages of PRP? (2)

Answer 21

Staff are motivated if they are seeking increases in financial rewards.
Target setting provides purpose and direction for employees

Question 22

What are the disadvantages of PRP? (3)

Answer 22

Fails to motivate staff who are not driven by financial rewards
Team spirit can be damaged due to competition
Claims of manager favouritism
Can lead to repressive style of management, the managers may not pay bonus if employees don’t follow.

Question 23

Def. Profit sharing

Answer 23

A bonus for staff based on the profits of the business - usually paid as a proportion of basic salary.

Question 24

What are the advantages of profit sharing? (3)

Answer 24

Workers want the business to succeed, reduce of conflict with managers
Employees are more accepting of changes that would benefit the business.
Does not add to business cost

Question 25

What the disadvantages of profit sharing? (5)

Answer 25

The reward is not directly linked to individual effort
May be hard to operate with firms with many employees
Small profit shares paid are not motivating
Reduces profits paid to owners and investors
Reduces the value of shares on the market.

Question 26

Def. Fringe Benefits

Answer 26

They are non-cash forms of rewards e.g Company cars , free insurance, private health insurance…

Question 27

What are the non-financial methods of motivation? (9)

Answer 27

job rotation
job enlargement
job enrichment
team working
quality circles
target setting
delegation
empowerment
participation

Question 28

Def. Job enlargement

Answer 28

Attempting to increase the scope of a job by broadening or deepening the tasks undertaken. It is increasing the load of tasks may be due to shortage of staff, however may not achieve long term motivation.

Question 29

Def. Job rotation

Answer 29

Increasing flexibility of the workforce and the variety of work they do by switching from one job to another. It relieves the boredom of doing one task and it can enable the worker to become multi-skilled.

Question 30

Def. Job enrichment

Answer 30

The three key features would be:
* Complete units of work - more challenging work offered.
* Direct feedback on performance to allow employees to see progress.
* Some tasks beyond experience that require training may be offered, to gain more skills and recognition.

Question 31

Def. Job redesign

Answer 31

Involves the restructuring of a job - usually with employees’ involvement and agreement - to make work more interesting, satisfying and challenging. It is closely linked to job enrichment. E.g Hairdressers may be given opportunity to add beauty therapy as part of the job.

Question 32

Def. Quality circles

Answer 32

They are voluntary groups of workers who meet regularly to discuss work-related problems and issues. They tend to be informal and all employees are encouraged to contribute. This induces participation and sense of involvement of employees with the business.

Question 33

Def. Worker participation

Answer 33

Workers are actively encouraged to become involved in decision making within the organisation. It gives workers opportunities to be elected as a ‘worker director’ - a representative at council meetings. However this process is time consuming.

Question 34

Def. Team working

Answer 34

Production is organised so that groups of workers undertake complete units of work.

Question 35

What are the advantages of team working? (3)

Answer 35

Social and esteem needs are satisfied (Maslow) and job enrichment may be achieved (Herzberg)
Reduction of labour turnover -> Reduction of business cost
Makes use of all the talents and better solutions are found

Question 36

What are the disadvantages of team working? (2)

Answer 36

Not everyone is a team player, these people may require training to be able to work collaboratively -> adds to business cost.
Teams can develop attitude that contrast the organisation’s

Question 37

Def. Target setting

Answer 37

Enables direct feedback so employees can see their progress, and it makes work more interesting and rewarding.

Question 38

Def. Delegation and Empowerment

Answer 38

Involve passing down authority and may allow workers some degree of control on how the tasks are supposed to be performed.

Question 39

The type suitable to motivating workers depends on which factors?

Answer 39

The type of workers
The profitability of the business
The availability of jobs

Question 40

Def. CSR

Answer 40

Corporate Social Responsibility: The concept that regards that businesses should consider the interests of society in its activities and decisions, beyond the legal obligations.

Question 41

What are the benefits and limitations of CSR projects?

Answer 41

Benefits:
* Could be used as a marketing strategy
* Adds to public relations
* Contributes to employee motivation

Disadvantages:
* Expensive -> Lower profits -> less return to the owners
* Business could use to mask their unethical or even illegal activities

Question 42

Def. Social Audit

Answer 42

A report on the impact a business has on society, usually produced annually. This can cover pollution levels, health and safety record, sources of supplies etc.

Question 43

What are the benefits and limitation of Social Audits?

Answer 43

Benefits:
* Identifies if the social responsibilities have been met
* Sets targets for improvements in social performance by comparing with other firms
* Improves business’s public image

Limitations
* It’s not independently checked, therefore might not be taken seriously by stakeholders
* It’s time consuming and expensive to produce
* Many consumers don’t care.