3.6.4 Making human resource decisions: improving motivation and engagement

Question 1

What is motivation?

Answer 1

the desire and energy to be continually interested and committed to a job, role, or subject, or to make an effort to attain a particular goal

Question 2

What are the benefits of motivation to a business?

Answer 2

• Improved productivity
• Reduced costs
• Improved reputation for the organisation
• Improved likelihood of meeting objectives
• Improved work ethic
• Competitive advantage

Question 3

What is Taylor’s view of motivation?

Answer 3

workers are mainly motivated by pay

Question 4

Explain the key features of Taylor’s theory

Answer 4

• Workers do not naturally enjoy work and so need close supervision and control
• Therefore managers should break down production into a series of small tasks
• Workers should then be given appropriate training and tools so they can work as efficiently as possible on one set task
• Workers are then paid according to the number of items they produce in a set period of time- piece-rate pay
• It links closely with an autocratic management styles as the managers take all the decisions and give the orders to people below them

Question 5

What is an advantage of Taylor’s theory?

Answer 5

workers are encouraged to work hard and maximise their productivity in order to earn more.

Question 6

What are disadvantages of Taylor’s theory?

Answer 6

Increased productivity meant that fewer workers were needed - workers worried about losing their jobs.
There were other disadvantages, too - increased productivity could lead to a reduction in quality.
Supervisors were needed to monitor efficiency and for quality control purposes.

Question 7

What is Herzberg’s motivational theory?

Answer 7

hygiene factors and motivators are part of the two factor theory

Question 8

What are motivators?

Answer 8

Motivators are more concerned with the actual job itself (e.g. how interesting the work is and how much opportunity it gives for extra responsibility, recognition and promotion)

Question 9

What are hygiene factors?

Answer 9

Hygiene factors are factors which ‘surround the job’ rather than the job itself – for example a worker will only turn up to work if a business has provided a reasonable level of pay and safe working conditions but these factors will not make him work harder at his job once he is there.

Question 10

What are the advantages of the two factor theory?

Answer 10

Direct focus on employees motivation
Companies can solve problems faced by employees
Monetary factors are the secondary focus

Question 11

What are the disadvantages of the two factor theory?

Answer 11

External factors are not considered
Employee job satisfaction and their work efficiency are not directly related
Herzberg’s theory does not consider differences in people’s social and cultural backgrounds

Question 12

What are non financial methods of motivation?

Answer 12

• Job enlargement
• Job enrichment
• Job rotation

Question 13

Explain job enlargement

Answer 13

workers being given a greater variety of tasks to perform (not necessarily more challenging) which should make the work more interesting.
Motivational theorists: Maslow (Social/Esteem), Herzberg (Motivators)

Question 14

What are the advantages and disadvantages of job enlargement?

Answer 14

Advantages - Increases Productivity, Widely trained staff, Motivational.

Disadvantages - Quality could fall, Increased workload may demotivate workers.

Question 15

Explain job enrichment

Answer 15

Involves workers being given a wider range of more complex and challenging tasks surrounding a complete unit of work. This should give a greater sense of achievement.
Motivational Theorists - Maslow (self actualisation), Herzberg (motivators)

Question 16

What are the advantages and disadvantages of job enrichment?

Answer 16

Advantages - Motivational, Increased productivity, More skilled staff.

Disadvantages - Short term Costs. Too much responsibility could cause stress.

Question 17

Explain job rotation

Answer 17

Definition - Varying an employees job on a regular basis

Motivational Theorists - Maslow (Safety/Social)

Question 18

What are the advantages and disadvantages of job rotation?

Answer 18

Advantages - Motivational, Can increase producitivity, Multi-Skilled staff (long term benefits - less training costs)

Disadvantages - Decreased productivity, Increased training costs (both short term)

Question 19

What does Maslow’s Hierarchy of Needs look like?

Answer 19

Question 20

What are the key features of Maslow’s hierarchy?

Answer 20

Workers are motivated by having each level of needs met in order as they move up the hierarchy
Levels of needs are: Physical, Safety, Social, Self-esteem, Self-fulfilment
Workers must have lower level of needs fully met by firm before being motivated by next level

Question 21

What are the advantages of Maslow’s hierarchy of needs?

Answer 21

• more individualised approach to motivating employees - manager can identify where employees fit into hierarchy
• recognised that workers not only motivated by money + that what motivates them now may not motivate them in the future
• highlights need for both monetary + non-monetary rewards
• better working relationships within workplace

Question 22

What are the disadvantages of Maslow’s hierarchy of needs?

Answer 22

• very diff. to identify where employees fit into hierarchy then match rewards to meet needs of each individual worker
• underestimates desire for staff to seek financial reward + upgrades in standard of living
• do all employees have same set of needs + pleased by job satisfaction
• exceptions to Maslow’s theory - very creative workers may not be interested in only financial reward

Question 23

What advantages can a well motivated workforce provide?

Answer 23

• Better productivity (amount produced per employee). This can lead to lower unit costs of production and so enable a firm to sell its product at a lower price
• Lower levels of absenteeism as the employees are content with their working lives
• Lower levels of staff turnover (the number of employees leaving the business). This can lead to lower training and recruitment costs
• Improved industrial relations with trade unions
• Contented workers give the firm a good reputation so making it easier to recruit the best workers
• Motivated employees are likely to improve product quality or customer service

Question 24

Explain why pay is important

Answer 24

• It is an important cost for a firm (in some “labour-intensive” firms, payroll costs are over 50% of total costs)
• People feel strongly about it
• Pay is the subject of important business legislation (e.g. national minimum wage; equal opportunities)
• It helps attract reliable employees with the skills the business needs for success
• Pay also helps retain employees – rather than them leave and perhaps join a competitor
• For most employees, the remuneration package is the most important part of a job – and certainly the most visible part of any job offer

Question 25

What are the financial methods of motivation?

Answer 25

Time-rate pay
Piece-rate pay
Commission
Other performance-related pay (including bonuses)
Shares and options
Benefits in kind (fringe benefits)
Pensions