2.4 Motivation and Rewards

Question 1

What is the importance of motivation?

Answer 1

1. Increased Labour Productivity
2. Reduces Absenteeism
3. Reduces Labour Turnover
4. Reduces Recruitment Costs

Question 2

What are the motivational theories?

Answer 2

1. Taylor’s Theory of the Economic Man
2. Maslow’s Hierarchy
3. Herzberg’s Two Factor Theory

Question 3

What is Taylor’s Theory?

Answer 3

His theory states that workers should be paid by piece rate, as people are only motivated by money.

Question 4

What is Maslow’s Heirarchy?

Answer 4

Physical Needs → Safety/Security Needs → Social Needs → Esteem Needs → Self Actualisation

Maslow believed that humans have five levels of need, starting from physical needs. Although there are some limiations:

1. You cannot measure everyone specifically
2. Money could also satisfy esteem needs
3. Not everyone has those five needs
4. Self-actualisation may not even be a need

Question 5

What is Herzberg’s Theory?

Answer 5

Herzberg’s two-factor theory assumes that there are two base needs: Hygiene and Motivators. Hygiene factors are needed to prevent dissatisfaction, but does not motivate. Whilst Motivators do the motivating.

Hygiene Factors:

1. Working Conditions
2. Relationships with others
3. salary
4. supervision
5. company policy and administration

Motivators:

1. The work itself
2. resposibility
3. advancement
4. achievement
5. recognition

Question 6

What are the two ways to motivate employees?

Answer 6

1. Financially
2. Non-Financially

Question 7

What are the financial motivators?

Answer 7

1. Salary
2. Wage
3. Bonuses
4. Promotions
5. Commissions
6. Fringe Benefits
7. Piece Rate
8. Profit Sharing

Question 8

What are the non-financial motivators?

Answer 8

1. Job enrichment
2. Job rotation
3. Job enlargement