2.4 Motivation

Question 1

What are some examples of financial rewards at the workplace?

Answer 1

Wages (time)
Wages (per piece)
Salary
Commission
Profit related pay
Performance related pay
Perks (“fringe payment”)
Employee share-ownership schemes

Question 2

What is a “commission”?

Answer 2

When employees receive a percentage of the value of sales they have made.

Question 3

What is a “performance related pay”?

Answer 3

Monetary benefit tied to an employee’s performance in a year and is determined through an appraisal system

Question 4

What is a “perk/ fringe payment”?

Answer 4

Rewards paid to the employee in addition to the salary
- eg. Free meals, educational allowance for children

Question 5

What is a “Employee-share ownership scheme”?

Answer 5

A company issuing their share/stocks with the employees

Question 6

What is a “Profit related pay”?

Answer 6

Employee receives % of profit

Question 7

What are some examples of non-financial rewards at the workplace?

Answer 7

Job enrichment
job rotation
job enlargement
enpowerment
teamwork
purpose

Question 8

What is job enlargement?

Answer 8

Refers to the increasing number of tasks to be performed by an employee to reduce work related boredom.

Question 9

What is job enrichment?

Answer 9

Refers to the motivational tool which allows for more decision making power and work related authority

Question 10

What is job rotation?

Answer 10

Job rotation refers to the movement of an employee from one job to another. The jobs themselves are not changed.
Instead the employees are rotated amongst a number of jobs.

Question 11

What is empowerment?

Answer 11

“Employee empowerment is the process of facilitating employees with specific authority and responsibility to achieve the organisational vision by exercising their talent, skills and creativity”
- boost self confidence
- makes employees self-dependent
- higher job satisfaction
- improves creativity and innovation

Question 12

What are some advantages of job enlargement?

Answer 12

Variety of tasks or activities
Proper utilization of skills and ability
Better earning possibilities
Keeps workers engaged
Satisfactory work modules

Question 13

What are some disadvantages of job enlargement?

Answer 13

Increases workload
Leads to disappointment
Employee union issues
Decreases productivity in short term

Question 14

What are some advantages of job enrichment?

Answer 14

Job satisfaction
Eliminates Monotony
Enhances skills
Self-Realization
Better decision-making

Question 15

What are some disadvantages of job enrichment?

Answer 15

Involves cost
Lack of knowledge
Unsuitable for short term
High level of responsibility

Question 16

What are the 5 motivational theories?

Answer 16

1. Adams (“equity theory”)
2. Maslow (“hierarchy of needs”)
3. Herzberg (“two factor theory”)
4. Pink (“autonomy, mastery and purpose”)
5. Taylor (“scientific management”)

Question 17

What is Maslow’s hierarchy of needs?

Answer 17

Maslow believed that human decision making relied on a hierarchy of needs, and that everyone had the desire to be self-actualised (fulfil your potential). Basic/ lower needs had to be met first, before moving onto the higher and more advanced needs. His hierarchy has 5 categories, starting at the lowest:
- Physiological needs (the most basic needs, some are vital to our survival
- Safety needs (physical but also economic safety, to create stability and be safe)
- Love and belonging (outlines the importance of a sense of connection, with friends, family..etc)
- Esteem (the respect, status and recognition of an employee)
- Self-actualization (“feeling on top of the world”, reaching your potential)

Question 18

What is Adams’ equity theory?

Answer 18

Adams suggested that one’s motivation is not only influenced by one’s perception but also by how one feels others in a similar situation are being treated. His theory incorporates not only how the employee may feel, but also takes in the wider context of how others in the work force may feel, making comparisons with one’s own situation. Basically, it compares the inputs with the outputs. The benefits that an employee receives should equal the effort they put into their work.

Therefore, business organisations need to ensure that:
- their employees perceive that they are treated with equity (called ‘equity norm’)
- employees see that people are compensated fairly based on comparing responsibilities and rewards (called ‘social comparison’)

Question 19

What is Herzberg’s two factor theory?

Answer 19

Job characteristics that cause job dissatisfaction are known as the “hygiene” factors, whilst the factors that elicit job satisfaction are known as the “motivator” factors.
The key finding was that Herzberg identified that there were entirely different reasons for job dissatisfaction and for job satisfaction. So, eliminating the reasons for job dissatisfaction did not mean that job satisfaction would result. Herzberg is basically saying that managers need to see employees as unique individuals and to motivate them accordingly.

Question 20

What is Pink’s Autonomy, mastery + purpose theory?

Answer 20

According to Pink, the modern work place has changed and employees no longer respond to extrinsic rewards alone. Instead, the modern employee responds to challenges, opportunities for creativity and increased responsibilities.

Autonomy - a business must give employees the freedom to create a work environment that makes them thrive (used at google)

Mastery - the opportunity to master a skill is powerful. Employees who feel challenged and can innovate and learn about things they are interested in are more productive employees

Purpose - though it may sound obvious, employees who see their work as being of benefit to others, helping to make the world a better place, are motivated by this

Question 21

What is Taylor’s theory of scientific management?

Answer 21

Taylor felt that workers would respond positively to one factor – more money for their work. So, he would study the task, break it down into simple parts and then show the worker how to do it. Before this, managers didn’t really interact with their employees. Taylor felt, however, that managers and workers cooperating together would create a more fruitful exchange and increase productivity.