2.5 Motivation

Question 1

Define motivation. [2]

Answer 1

• Motivation is the desire of workers to see a job done quickly and well.
  
  • Motivation of workers have a direct consequence on productivity and efficiency.

Question 2

Why is knowing the source of motivation important for managers? [2]

Answer 2

• Managers need to know what motivates employees to reach peak performance; internal and external factors that stimulate them to take actions to achieve a goal.
  
  • The best motivated workers will strive to help the business achieve its goals as cost-effectively as possible while at the same time try to reach their own personal goals.

Question 3

What are some features of a motivated workforce? [6]

Answer 3

• Low absenteeism
  
  • Low labour turnover
  • High productivity level
  • Good quality work leading to lower wastage costs.
  • Improved customer service and satisfaction
  • Greater efforts to achieve business objectives.

Question 4

Define reward.

Answer 4

A reward is an outcome of positive value to the individual.

Question 5

What is an effective reward system?

Answer 5

An effective reward system is motivational > spur employees to work harder and well.

Question 6

Define extrinsic rewards. [3]

Answer 6

• An extrinsic reward is the payoff that a person receives from others for performing a particular task.
• It is an external reward, where the payoff comes from pleasing others.
• Something tangible that is given to the performer of the activity or behaviour by the organisation. [does not arise within the person]

Question 7

What are some examples of extrinsic rewards?

Answer 7

Examples: pay bonuses, time-off, promotions, special assignments, awards and verbal praise.

Question 8

Define intrinsic rewards. [3]

Answer 8

• Intrinsic rewards are the satisfaction a person receives from performing the task itself.
• Internal reward; payoff comes from pleasing oneself.
• An internal reward occurs naturally as a person performs a task and builds directly into the job itself.

Question 9

What are some examples of intrinsic rewards?

Answer 9

Feelings of competency, self-development and positive experiences in the work environment.

Question 10

What are the 2 types of motivation theories?

Answer 10

1. Content theories
2. Process theories

Question 11

Define Content [need] theories.

Answer 11

Content [need] theories assume that individuals are motivated by the desire to fulfil their inner needs and thus focus on how managers can create conditions that allow workers to satisfy these needs.

Question 12

Define Process theories.

Answer 12

Process theories seek to explain how and why people choose certain behaviours to meet their personal goals and focus on the thought processes that influence behaviour.

Question 13

What are the theories under content theories? [3]

Answer 13

• Maslow’s hierarchy of needs.
• Herzberg’s two-factor theory.
• McClelland’s motivational needs theory.

Question 14

What are the theories under process theories? [2]

Answer 14

• Vroom’s expectancy theory.
• Adam’s equity theory.

Question 15

What is Maslow and the hierarchy of needs? [2]

Answer 15

• Maslow believed that human needs determine their actions, and people will be motivated to try and satisfy their needs.
• Employees will become more motivated and productive if the work environment can be organised such that needs can be satisfied.

Question 16

What are the 5 stages of the hierarchy?

Answer 16

1. Physical needs
2. Safety needs
3. Social needs
4. Esteem needs
5. Self-actualisation

Question 17

What are some interpretations of the hierarchy? [5]

Answer 17

1. A person’s needs start from the lowest level.
2. People will strive to achieve the next level once one level of need is satisfied.
3. Although everyone is capable of reaching his or her potential, not everyone can attain self-actualisation.
4. A need will no longer motivate people once it has been satisfied,
5. If someone’s needs are no longer met at one level, they’ll seek satisfaction at the next level down.

Question 18

How is self-actualisation applicable? [2]

Answer 18

• Challenging work that provides a sense of achievement.
• Opportunities for employees to develop and apply new skills.

Question 19

How are esteem needs applicable? [2]

Answer 19

• Recognition for work done well.
• Promotions and additional responsibility will elicit more respect from others.

Question 20

How are social needs applicable?

Answer 20

Working in teams and ensuring good communication to ensure workers have a sense of belonging.

Question 21

How are safety needs applicable? [2]

Answer 21

• An employment contract to increase job security and reduce uncertainty.
• Ensure work conditions meet health and safety regulations.

Question 22

How are physical needs applicable?

Answer 22

Sufficient income from employment to buy essential items.

Question 23

What are some limitations of Maslow and the hierarchy of needs? [4]

Answer 23

• Assumption made by the hierarchy that everyone has the same needs may not be accurate.
• In reality, it is difficult to identify the degree to which each need has been met and which level of a need a worker has.
• Although money is necessary to satisfy physiological needs, it is also important in satisfying the other levels of needs, such as status and esteem.
• Self-actualisation can never be permanently achieved.
  
  • Jobs must continually offer challenges and opportunities for fulfilment.
    
    • Deterioration in performance.

Question 24

What idea does Herzeberg’s two-factor theory centres on?

Answer 24

Herzberg’s two-factor theory centres on motivators and hygiene factors.

Question 25

What are motivating factors / motivators?

Answer 25

• Motivators or motivating factors: achievement, recognition, responsibility, work itself, advancement, personal growth.
  
  • Aspects of a worker’s job that can lead to positive job satisfaction such as achievement, recognition, meaningful and interesting work and advancement at work.

Question 26

What are hygiene factors?

Answer 26

• Hygiene factors: Working conditions, coworker relations, policies and rules, supervisor quality, base wage, salary.
  
  • Aspects of a worker’s job that have the potential to cause dissatisfaction such as pay, working conditions, status and over-supervision by managers.

Question 27

How is Herzeberg’s two-factor theory applicable? [3]

Answer 27

• Improving pay and working conditions will help to remove dissatisfaction at work, but they would not increase motivation.
  
  • In order for people to be motivated to do a job well, motivators must be put in place.
  • Paying someone to do a job does not mean he or she will do it well.
• One way to motivate employees is by adopting the principles of ‘job enrichment’.
  
  • Aims to use the full capabilities of workers by giving them the opportunity to do more challenging and fulfilling work.
• While a business could offer higher pay, improved working conditions and less micromanagement, workers will still become complacent over time.
  
  • If the work is not interesting, rewarding or challenging, workers will not be motivated regardless of the pay level.

Question 28

What are three needs / motives determining employee’s behaviour in the workplace?

Answer 28

1. Achievement
2. Affiliation
3. Power

Question 29

How can managers use this theory?

Answer 29

Managers can use this theory to recognise three needs in themselves and others, attempting to create work environments that are responsive to them.

Question 30

Define achievement motivation.

Answer 30

• People who have high need for achievement seek accomplishment at the workplace.
  
  • They take on the opportunity to reach realistic and challenging goals and job advancements.
    
    • Constant need for feedback regarding progress and achievement and a need for a sense of accomplishment.
  • Desire to excel to do something better or more efficiently, to solve problems, to achieve excellence in challenging tasks.

Question 31

Define affiliation motivation.

Answer 31

• People with high need for affiliation prefer to maintain harmonious relationships with others and be accepted by them.
  
  • Motivated towards interaction with other people.
    
    • Likely to be good team members as they tend to conform to the norms of their work group.
  • Desire to have warm and friendly relations with others.

Question 32

Define power motivation.

Answer 32

• People with need for power desires to control others in the group.
  
  • ‘authority-motivated’
    
    • Need to be influential effective and make an impact is a powerful motivating force.
      
      • When authority is gained over others, it brings personal status and prestige.
  • Desire to be responsible for other people, to influence their behaviour or to control them.

Question 33

How is the need for achievement applicable?

Answer 33

• Employees have a high need for achievement if they are happy with accomplishment of a task being its own reward, prefer to work independently and are willing to take reasonable risks.
  
  • Such employees would be motivated by performance pay, challenging but achievable goals and individual responsibility for results.
  • Tend to do well in technical fields requiring creativity and individual skills.

Question 34

How is the need for power applicable? [2]

Answer 34

• Employees, usually managers, have a high need for power when they enjoy being in control of people or events and are recognised for such responsibility.
• Such employees would be motivated for work that allows them to control or have an effect on people and are publicly recognised for their accomplishments.

Question 35

How is the need for affiliation applicable? [3]

Answer 35

• Employees with a high need for affiliation tend to seek social approval and satisfying personal relationships.
• As such they would not make efficient managers as they might required to make unpopular decisions which caused others to dislike them.
• Such employees would be motivated with work, such as a sales job, that provides for personal relationships and social approval.

Question 36

Define Vroom’s expectancy theory.

Answer 36

Vroom’s expectancy theory suggests that individuals choose to behave in ways that they believe will lead to outcomes they value.

Question 37

What are the features of individuals that are motivated? [4]

Answer 37

• The theory states that individuals have different set of goals and can be motivated when they believe that.
  
  • there is a positive relationship between effort and performance.
  • favourable performance will lead to a desirable reward.
  • the reward will satisfy an important need.
  • the desire to satisfy the need is strong enough to make the work effort worthwhile.

Question 38

What are the three elements of the Vroom’s expectancy theory?

Answer 38

Performance > Outcome > Reward.

Question 39

Define Expectancy. [2]

Answer 39

• Expectancy is the degree to which people believe that putting effort into work will lead to a given level of performance.
• It is the belief that a particular level of effort will lead to a particular level of performance.

Question 40

Define Instrumentality.

Answer 40

• Instrumentality is the confidence of employees that they will actually get what they desire.
• It is the expectation that successful performance of the task will lead to the outcome desired.

Question 41

Define Valence. [2]

Answer 41

• Valence is the depth of the want of an employee for an extrinsic reward, such as money, or an intrinsic reward such as satisfaction.
• It is the value and importance a worker assigns to the possible outcome or reward.

Question 42

What happens if any elements are missing?

Answer 42

If any of the elements are missing, then workers will not be motivated to do a job well.

Question 43

What should a manager aim?

Answer 43

• Thus, a manager should aim to ensure that employees believe that increased work effort will improve performance and that performance will result in rewards.
  
  • Lead to a motivated workforce that will ultimately benefit the business.

Question 44

How is Vroom’s expectancy theory applicable? [4]

Answer 44

1. Rewards value by subordinates
2. Job objectives and desired performance level
3. Linking rewards to performance
4. Subordinates’ belief in managers

Question 45

Elaborate on rewards value by subordinates.

Answer 45

Managers need to know their subordinates and determine the types of rewards or outcomes they value, such as pay raises or recognition.

Question 46

Elaborate on job objectives and desired performance level.

Answer 46

Managers need to clearly define the performance objectives and determine the performance level or behaviour expected, so that subordinates know what is required to attain the rewards.

Question 47

Elaborate on linking rewards to performance. [3]

Answer 47

• Managers should reward high performance.
• Thus, employees must be aware that X level of performance with Y period of time will result in Z kinds of rewards.
• In a team context, it is best to use a combination of Indvidual and team-based rewards.

Question 48

Elaborate on subordinates’ belief in managers.

Answer 48

Subordinates must believe that managers are credible and have the power, ability and will to give them the rewards promised for the performance requested.

Question 49

What are some limitations of Vroom’s expectancy theory? [2]

Answer 49

• the theory is idealistic as some people may not perceive a high degree of correlation between performance and rewards.
• Application of the theory is limited as reward could be correlated with other factors such as position and responsibility, not necessarily with performance.

Question 50

Define Adam’s Equity Theory of Motivation. [2]

Answer 50

• focuses on employee’s perceptions as to how fairly they think they are being treated compared to others.
• Based on employees are motivated to see fairness in the rewards they expect for task performance; motivated to resolve feelings of injustice.

Question 51

What are the key elements in equity theory? [3]

Answer 51

1. Inputs
2. Outputs
3. Comparison

Question 52

Define Inputs. [2]

Answer 52

• Inputs are the quality and quantity of an employee’s contributions to his or her work.
• They include time, effort, skills, intelligence, creativity, etc.

Question 53

Define Outputs. [2]

Answer 53

• Outputs (rewards) are the outcomes an employee receives from the business.
• Outputs include salary, fringe benefits, bonus, recognition, sense of achievement, status etc.

Question 54

Define and elaborate on what is comparison. [2]

Answer 54

• Equity theory suggests that employees compare the ratio of their own outcomes to inputs against the ratio of another person’s outcomes to inputs.
• When employees compare the ratio of their inputs and outputs with those of others — whether colleagues in the same business or other people in similar jobs — they make a judgement about fairness.
  
  • They either perceive there is equity and hence are satisfied with the ratio and maintain their behaviour; or they perceive there is inequality, and so they feel aggrieved and act to change the inequality.

Question 55

How is the equity theory applicable for under-rewarded? [5]

Answer 55

1. Reduced their inputs.
2. Change the outputs or rewards they receive.
3. Distort the inequality.
4. Change the object of comparison.
5. Leave the situation.

Question 56

What will actions of those who feel they are being under-rewarded be responded with?

Answer 56

Actions of those who feel they are being under-rewarded will respond to the perceived inequality.

Question 57

What is reduced their inputs?

Answer 57

Employees will do less work, take long breaks, report sick on Mondays, leave early on Fridays etc.

Question 58

What is change the outputs or rewards they receive?

Answer 58

Employees will pressure the boss for a raise, or they may take assets or property belonging to the business home for their own use.

Question 58

What is distort the inequality?

Answer 58

Employees will exaggerate how hard they work so that they can complain they can complain that they are not paid fairly.

Question 59

What is change the object of comparison?

Answer 59

Employees may compare themselves with another person instead of the original one.

Question 60

What is leave the situation?

Answer 60

Employees may quit the business or transfer to another department.

Question 61

How is the equity theory applicable for workers are being fairly treated?

Answer 61

More likely to support business decisions, cooperate in teams and turn to trade unions for arbitration (means seeking the assistance of labor organizations to help resolve disputes or conflicts between employers and employees.)

Question 62

How should managers motivate employees? [3]

Answer 62

1. Provide positive recognition about employee behaviour and performance and explain the reasons behind their decisions.
2. Allow employees to participate in the decision-making process, even for the important ones.
3. Have an appeal process.

Question 63

Elaborate on positive recognition about employee behaviour and performance.

Answer 63

• Provide positive recognition about employee behaviour and performance and explain the reasons behind their decisions.
  
  • No matter how fair managers think the company’s policies, procedures and reward system are, each employee’s perception of these matters most.

Question 64

Elaborate on employees to participate in the decision-making process.

Answer 64

• Allow employees to participate in the decision-making process, even for the important ones.
  
  • Employees would feel a sense of belonging and become more motivated as a result.
    
    • There will be less resistance of the decisions affect their work.

Question 65

Elaborate on having an appeal process.

Answer 65

• Promotes the belief that management treats them fairly if they can appeal decisions affecting their welfare.
  
  • Perceptions of fair treatment, promote job satisfaction, commitment, and reduce absenteeism and turnover.

Question 66

What is the most common motivator to work? [4]

Answer 66

• Most people are willing to work only with some form of financial reward.
• Nearly all motivation theorists recognise that pay is necessary to encourage work effort.
• However, pay alone is insufficient to ensure that workers are motivated to their full potential.
• Thus, the use of other non-financial methods needs to be considered to motivate employees.

Question 67

Define financial incentives.

Answer 67

Financial incentives refer to monetary benefits offered to employees to encourage behaviour or actions which otherwise would not take place.

Question 68

Define salary. [2]

Answer 68

• Salary refers to the annual income that is usually paid on a monthly basis.
• It is the most common form of payment system for executive and above level positions.

Question 69

Elaborate on the features of salary.

Answer 69

• The salary amount is fixed and not dependent on the number of hours worked or number of units produced.
  
  • Fixing the salary amount for each job position is important because it helps to determine the status and importance of the position in the business.

Question 70

When is the salary payment system suitable?

Answer 70

The salary payment system is suitable for jobs where output cannot be measured, as well as for management positions where staff are required to work extra hours to complete a task or assignment.

Question 70

What are the advantages of the salary payment system?

Answer 70

Advantages: provides employees with a sense of security where income is concerned, as well as provides status as compared to time-rate or piece-rate payment status; helps the business in the budgeting process as the salaries would not change much within a year.

Question 71

What are the disadvantages of the salary payment system?

Answer 71

• Disadvantages: amount paid is not correlated to effort or productivity, hence employees might be complacent and not work as hard.
  
  • Regular appraisal is required to assess if an employee should have his or her salary increased.

Question 72

Define time-based wage rate.

Answer 72

Time-based wage rates refer to payment to workers for each period of time worked. [an hour].

Question 73

When is time-based wage rate commonly used?

Answer 73

Commonly used to pay manual, clerical and non-management workers.

Question 74

How is the payment rate is determined?

Answer 74

The payment rate is determined by multiplying the wage rate with the amount of time periods worked.

Question 75

What does time-based wage rate offer?

Answer 75

Offers some security to workers but is not directly linked to the level of output or effort.

Question 76

Define piece rate. [3]

Answer 76

• Piece rate refers to a payment to a worker for each unit produced.
• The rate is fixed for the production of each unit, and the amount paid to workers depend on the quantity of output produced.
• Based on the difficulty of the job, and average time to complete it.

Question 77

What if the piece rate is set too low?

Answer 77

If it is set too low > workers would be demotivated.

Question 78

What if the piece rate is set too high?

Answer 78

If it is set too high > reduce the incentives as workers can earn a lot by producing relatively fewer units.

Question 79

What are the advantages of piece rate?

Answer 79

Advantages: encourages faster working and greater effort; labour cost of each unit of production is predetermined and helps business in setting the price for the product.

Question 80

What are the disadvantages of piece rate?

Answer 80

Disadvantages: requires output to be measurable and standardised; piece rate would not be appropriate if each product is different; might rush to complete units and this could lead to poorer quality and safety standards; workers might settle for a certain pay level and would not be motivated to produce beyond a certain output; workers will not be paid and have little security over pay level if machinery breaks down.

Question 81

Define performance-related pay.

Answer 81

Performance-related pay is a bonus scheme to reward employees for above-average work performance.

Question 82

What are the advantages of performance-related pay?

Answer 82

Advantages: motivated to improve performances if they are seeking greater financial rewards; a sense of purpose and direction with target setting; provides opportunity for feedback to be given to employees as managers would need to conduct appraisal to determine the performance bonus.

Question 83

What are the disadvantages of performance-related pay?

Answer 83

Disadvantages: Employees will not be motivated if they are not driven by the additional financial rewards; team spirit might be damaged if employees compete against each other to earn a higher performance bonus; managers might accuse of favouritism as managers are the ones determining the performance bonus, and this can harm manager-subordinate relationships.

Question 84

What is the main purpose of performance-related pay?

Answer 84

Main purpose is to provide further financial incentives and to encourage employees to meet agreed targets.

Question 85

How are bonuses paid?

Answer 85

Bonuses are usually paid on an individual basis, but they can also be calculated and awarded on a team or department basis.

Question 86

Define profit sharing.

Answer 86

Profit sharing refers to a bonus paid to employees based on profits of the business, and this is usually paid as a proportion of the basic salary.

Question 87

What is profit sharing?

Answer 87

The core idea behind profit sharing is that employees will become more committed to the success of the business and will strive for higher performance and cost savings.

Question 88

Why do some profit-sharing schemes not offer cash?

Answer 88

• Some profit-sharing schemes do not offer cash but shares in the business to each worker when a profit is made.
  
  • This is designed to establish the workers as part-owners of the business and reduce any conflict that might exist between shareholder / management and workers.
    
    • In practice, many of the shares in such schemes are quickly sold by the workers, thus reducing any long-term impact on motivation.

Question 88

What are the advantages of profit-sharing?

Answer 88

Advantages: reduced potential conflict between owners and workers as everyone now has a common interest in higher profits; higher worker effort levels; greater willingness to accept cost reduction measures and changes that benefit the business, as long as these increases profits; recruit better employees who are attracted by the opportunity to share profits or own shares of the business.

Question 88

What are disadvantages of profit-sharing?

Answer 88

Disadvantages: reward offered is not correlated with individual, so workers might not put in greater effort if they see others benefitting from their hard work; share of profits are usually paid at the end of the year > unlikely to promote motivation throughout the year; shareholders might also be unhappy as profit sharing would reduce the amount of dividends paid to them, as well as retained earnings can be reinvested into the business; share ownership scheme can increase the total number of shares issued and dilute the value of existing shares.

Question 88

List some non-financial incentives? [8]

Answer 88

1. Training and development
2. Effective induction
3. Opportunities for promotion
4. Job redesign
5. Job enlargement
6. Empowerment and delegation
7. Jon enrichment
8. Team working

Question 89

Define training.

Answer 89

Training refers to improving and developing the skills of employees.

Question 90

Why is training an important motivator?

Answer 90

Important motivator > increases the status of workers and gives them a better chance of promotion to more challenging and better paid positions within the business.

Question 91

Why is training and development an important incentive for employees?

Answer 91

Important incentive for employees to stay with a business as they feel that they are being fully developed and appreciated by the company.

Question 92

What is induction?

Answer 92

Induction refers to the integration of new employees into the business and make them understand the systems and procedures in the business.

Question 92

What can training lead?

Answer 92

Training can also lead to employees leaving a business as they are now better qualified to gain employment within other companies.

Question 93

What does effective induction help?

Answer 93

• Effective induction helps new employees settle down quickly in the new work environment and gives them a sense of belonging; gives a warm welcome to the employee and focuses on clarifying all his or her doubts about the business and job scope.
  
  • Ensures that the new employee feels comfortable in the business.
    
    • feel welcomed, respected and valued.
      
      • motivates the new employee greatly.

Question 94

What does promotions to positions include?

Answer 94

Promotions to positions that include more responsibility or authority are among the tools managers use to motivate workers.

Question 95

What can job promotion motivate?

Answer 95

Possibility of a job promotion can motivate an employee by appealing to their sense of ambition.

Question 96

What opportunities for promotion affects?

Answer 96

• This affects workers whose career anchors include the desire for autonomy, independence, authority and managerial competence.
  
  • Employees who see these as attainable goals via promotions will work towards demonstrating their supervisory and leadership skills.
    
    • Take on positive traits that reflect positions of authority, such as accountability and a willingness to cooperate with colleagues.

Question 96

What does job redesign involve?

Answer 96

Job redesign involves the restructuring of a job, usually with employee’s involvement and agreement to make a job more interesting, satisfying and challenging.

Question 97

What does job redesign lead?

Answer 97

These job changes can lead to improved recognition by management for the work undertaken by workers and can increase workers’ chance of gaining promotion as a result of the wider skills gained.

Question 97

What is empowerment and delegation?

Answer 97

Empowerment and delegation [refer to the process of assigning tasks or responsibilities to others within an organization.] involve the passing down of authority to perform tasks to workers, and also allow them to have some degree of control over how the tasks should be undertaken.

Question 97

What job enlargement refers to? [2]

Answer 97

• Job enlargement refers to attempt to increase the scope of the job by broadening or deepening the tasks undertaken.
• Increases the loading of tasks on existing workers, at times due to shortage of staff and unlikely to lead to long-term job satisfaction.

Question 98

What does job enrichment involve?

Answer 98

Job enrichment involves a reduction of direct supervision as workers take more responsibility for their own work and are allowed some degree of decision-making authority.

Question 99

What are the advantages of team working? [3]

Answer 99

• Successful use of team working will result in lower labour turnover, better ideas from the workers or improving the product and manufacturing process.
• Production of higher quality products.
• Lower productivity and time-consuming team meetings.

Question 99

What is team working?

Answer 99

Team working involves placing each member of staff into small team. of employees.

Question 100

What are some features of job enrichment? [3]

Answer 100

• Complete units of work so that the contribution of the worker can be identified, and more challenging work offered.
• Direct feedback on performance is provided to each worker to allow them to have an awareness of their own progress.
• Challenging tasks offered as part of a range of activities, some of which are beyond the worker’s recent experience.
  
  • Require training and the learning of new skills.
  • Workers gain status and recognition by acquiring further skills and qualifications.