2.9 Motivation

Question 1

Indicators of poor staff motivation

Answer 1

Absenteeism: deliberate absense when there’s not a satisfactory explanation
Lateness
Poor performance: low levels of work or greater waste of materials
Accidents: careless –> distracted –> increase accidents
Labour turnover: people leave jobs for negative reasons
Grievances: might lead to more union disputes
Poor response rate (to leadership)

Question 2

Taylor theory: how to improve productivity

Answer 2

1. Select workers to perfom a task
2. Observe and note the performance
3. Record time taken
4. Identify quickest method
5. Train all workers to follow, no exceptions
6. Supervise
7. Pay workers on basis of results

Question 3

Taylor “Theory of Scientific Management “

Answer 3

• Workers don’t naturally enjoy work –> Need close supervision and control
• Should break down production in series of small tasks
• Should give workers tools and training to work effectively
• Piece rate
• Links to concept of “autocratic management style” and Macgregor’s Theory X

Question 4

Mayo and the human relations theories

Answer 4

• changes in working conditions and financial rewards have little or no effects on productivity
• when management consult and take interest in workers –> motivation increased
• team working and team spirit –> improve productivity
• workers when given some control over work –> positive motivational effect

Question 5

Self-actualisation

Answer 5

A sense of self-fulfilment reached by feeling enriched and developed by what one has learned achieved

Question 6

Limitations of Maslow’s approach

Answer 6

• Not everyone has the same needs as is assumed by the hierarchy
• Hard to identify the degree at which a worker is ‘on’
• Money is is necessary to satisfy physical needs, but also pay a role in satisfying other needs
• Self-actualisation is never permanently achieved

Question 7

Herzberg “ the two-factor theory”

Answer 7

• Close links with Maslow
• MOTIVATORS: certain factors that a business could introduce to directly motivate the workers
• HYGIENE FACTOR: Company policy and admin, supervision, salary, relationship and working conditions. Extrinsic. If not addressed by managers –> dissatisfaction

Question 8

Motivation

Answer 8

The internal and external factors that stimulate people to take actions that lead to achieving a goal

Question 9

Hygiene factors

Answer 9

Aspects of a worker’s job that have the potential to cause dissatisfaction

Question 10

Motivating factors

Answer 10

Aspects of worker’s job that can lead to positive job satisfaction

Question 11

McClelland and motivational needs theory

Answer 11

3 types of motivational need:
A, Achievement motivation (n-ach):
+ challenging goal and job advancement
+ constant need for feedback
+ sense of accomplishment
–> common characteristics of successful entrepreneurs
B, Authority/ power motivation (n-pow):
+ “authority motivated”
+ need to be influential, effective to make an impact –> brings status and prestige
+ leadership instinct
C, Affiliation motivation (n-affil)
+ Need for friendly rela and interaction w/ other ppl
+ good team member: need to be liked and popular

Question 12

Vroom and expectancy theory

Answer 12

Individuals choose to behave in ways they believe will lead to outcomes they value
+ positive link bw effort and performance
+ favorable performance result in desirable reward
+ reward satisfy beed
+ desire to satisfy need increase worker’s effort
VALENCE: the depth of want of an employee for an extrinsic or intrinsic reward
EXPECTANCY: Degree to which people believe that effort will lead to a given lv of performance
INSTRUMENTALITY: The confidence of employees that they will actually get what they desire

Question 13

Hourly wage rate

Answer 13

Payment to a worker made for each hour worked

Question 14

Piece rate

Answer 14

A payment to a worker for each unit produced

Question 15

Ads of piece rate

Answer 15

• Encourages greater effort and faster working

- The labour cost for each unit is determined in advance –> set a price for the product

Question 16

Disads of piece rate

Answer 16

• Requires output to be measurable and standardised
• Lead to falling quality+safety bc workers rush
• Workers may settle to a level –> not motivated
• Provides little security over pay level eg: Production breakdown intervals
• Workers are discouraged from accepting change at work

Question 17

McGregor’s theory X workers (concerned with the attitude of managers to their workers)

Answer 17

• Individuals who dislike work and avoid it where possible
• lack ambition, dislike responsibility and prefer to be led
• desire security
• unprepared to accept responsibility
• leads to autocratic management

Question 18

McGregor’s theory Y workers (concerned with the attitude of managers to their workers)

Answer 18

• Consider effort at work as just like rest or play
• Ordinary people who do not dislike work. Depending on the working conditions, work could be considered a source of satisfaction or punishment
• Individuals who seek responsibility (if they are motivated
• Leads to democratic management

Question 19

Salary

Answer 19

Annual income that is usually paid on a monthly basis

Question 20

Commission

Answer 20

A payment to a sales person for each sale made

Question 21

Ads of salary

Answer 21

• Gives security of income
• Aids in costing as salaries won’t vary for one year
• Suitable or jobs that output is not measurable
• Suitable when staff can put extra time to complete a task

Question 22

Disads of salary

Answer 22

• Income not related to productivity
• Lead to complacency of salary earner
• Regular appraisal is needed to assess whether an individual should move a salary band

Question 23

Performance related pay

Answer 23

A bonus scheme to reward staff for above-average work performance

Question 24

Ads of PRP

Answer 24

• Staff = motivated
• Target setting helps to give purpose and direction of an individual
• Appraisal offers opportunity for feedback

Question 25

Disads of PRP

Answer 25

• Team spirit damaged by the rivalry generated by the competitive nature of PRP
• Favouritism can harm manager-subordinate relationship

Question 26

Profit sharing

Answer 26

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

Question 27

Ads of profit sharing

Answer 27

• Conflict bw owner/workers reduced bc everyone now wants higher profits
• Business likely to attract better recruits
• Scheme doesn’t add to business costs
• If this increases motivation, it could lead to an increase in overall business profitability

Question 28

Disads of profit sharing

Answer 28

• Not closely related to individual effort
• Maybe costly to set up and operate, esp large firms w/ large no. of workers
• Small profit shares = unlikely to promote motivation
• Reduce profits to the owners (dividends) and retained profits
• Worker share- ownership –> increase the total no. of shares -> ‘dilute’ the value of existing shares

Question 29

Job rotation

Answer 29

Increasing the flexibility of the workforce and the variety of work they do by switching from one job to another

Question 30

Job enlargement

Answer 30

Attempting to increase the scope of a job by broadening or deepening the tasks undertaken

Question 31

Job enrichment

Answer 31

Involves the principle of organising work so that employees are encouraged and allowed to use their full abilities - not just physical effort

Question 32

Job redesign

Answer 32

Involves the restructuring of a job - usually with employees’ involvement and agreement - to make work more interesting, satisfying and challenging

Question 33

Quality circles

Answer 33

Voluntary groups of workers who meet regularly to discuss work-related problems and issues

Question 34

Worker participation

Answer 34

Workers are actively encouraged to become involved in decision making process

Question 35

Team working

Answer 35

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

Question 36

Ads of team working

Answer 36

Workers:
- workers are better motivated as social and esteem needs in Maslow’s are met –> increase productivity –> reduce labour turnover –> reduce business cost
- TW makes fuller use of all talents in workforce. Better solutions bc more suggestions
- Reduce management costs bc it delayers the organization hierarchy –> few middle managers
- Complete units of work can be given to teams -> job enrichment
- Form relationship with others (level 4 in Maslow’s hierarchy of needs)
Managers:
- less need for close supervision – happier employees – more productive
- better quality work (quality circles) – reduce management costs (de-layer the
organisation).

Question 37

Disads of team working

Answer 37

• Some individuals are more effective working alone.
• Team develops set of values and attitudes which may contradict with the organisation’s. –> need clear goals to ensure they’re working towards organisationms objectives
• Introduction of team working requires training costs and there maybe some disruption to production.

Question 38

Taylor’s relevance to modern business

Answer 38

1. Economic man: Some managers still believe money = best motivator to staff. However, general view = workers have a wide range of needs to be met at work
2. Select right people for each job: Before Taylor = few attempts to identify principles of staff selection. Now = raise importance (reduces costs, KAIZEN…)
3. Observe and record staff’s performance: Now is widely known as “time and motion study”. Cooperation and involvement of staff
4. Method study: Taylor = managers give instructions to workers with no discussion or feedback = undesirable –> worker participation is encouraged
5. Piece-work payment systems: Not widely used. Workers may vary output based on financial needs, discourages them from accepting changes. Not easily applied in service industry bc difficult to identify solid output

Question 39

Herzberg’s consequence

Answer 39

1. Improvement of pay and working conditions will remove dissatisfaction from work but don’t cause motivation to exist. “Movement” = improve hygiene factors but it doesn’t mean “motivation” = improve motivators
2. Three main features of job enrichment:
   + Complete units of work: meaningful tasks
   + Feedback performance: Give recognition for job well done, therefore provide incentives to achieve more
   + A range of tasks: Give challenge and stretch the individual = Self-actualisation in Maslow’s.
3. Offer higher pay, improved working conditions, less supervision …. –> remove dissatisfaction. But will be taken for granted –>needs constant “job enrichment”

Question 40

Content theories

Answer 40

Content theories focus on the factors within a person that energize,direct, sustain and stop behavior. They look at the specific needs that motivate people.

Question 41

Process theories

Answer 41

+Process theories provide a description and analysis of how behavior is energized, directed, sustained and stopped.
+Emphasise how and why people choose certain behaviours in order to meet thri personal goals and the thought processes

Question 42

Why company uses only non-financial motivation

Answer 42

– Non-financial rewards can include increased responsibility, job enrichment, development opportunities
– to ensure staff is engaged emotionally with the organisation.
– Higher order needs (Maslow) and intrinsic motivators (Herzberg) are accepted motivational theories by employers.
– Financial rewards may have been tried and failed or recognised to have limited effect.
– Companies may be unable to afford financial rewards.
–A business may have employees that will likely respond more to non-financial rewards.
– In time of economic recession more appropriate – engage employees.