6.4 improving motivation + engagement

Question 1

define: Motivation

Answer 1

Describes the factors that arouse, maintain and channel behaviour towards a goal

Question 2

define: Employee engagement

Answer 2

when an employee is fully absorbed by and enthusiastic about their work and take positive actions to meet the organisations goals.

Question 3

What is the division of labour?

Answer 3

Breaking down of production into series of small tasks -> carried out repetitively by relatively unskilled employees.

Question 4

Why is motivation important?

Answer 4

• > A motivated workforce will work more effectively and will be more loyal.
• > Effective and loyal employees can help to cut costs and maintain sales in a business.

Question 5

Motivational theories

There are several theories about what motivates a workforce:

Answer 5

• Taylor – Scientific Management
• Mayo – Human Relations Management
• Maslow – Hierarchy of Human Needs
• Herzberg – The Two-Factor Theory

Question 6

Taylor: Scientific Management

Answer 6

Theory: workers were more motivated by pay

- Workers are not naturally interested in work and therefore need close supervision.

Question 7

The essential features of Taylorism

Answer 7

-> Work study - Study work process to determine most efficient production method.
-> Normal times - Observe + time the best workers in these methods. Establishing ‘normal’ times in which duties should be performed.
-> Equipment + training - Train all remaining employees. Provide them with equipment needed to carry out their duties. Basic training and clear instructions.
Piece-rate pay - Employees motivated by money and so employees paid according to what they produce.

Question 8

Problems with Taylor’s technique

Answer 8

The workforce did not like the principles and did not co-operate.
Placed the jobs of less efficient workers under threat
Raised efficiency means less workers needed
Caused strikes by workers and dissatisfaction by workers
They only worked hard while being observed.
Taylor appointed special supervisors to stand over the workforce.
Money is not the only incentive and Taylor’s ideas relied too exclusively on motivation by money.
Despite these problems the scientific management approach lasted for a long time.

Question 9

Mayo: Human Relations Management

Answer 9

• Initially he started applying Taylor’s principles of scientific management.
• Then he went on to experiment with the effects of varying physical factors on worker productivity.
• The group felt important because of the extra interest they had been paid during the research process, and this was what had increased productivity.
• Mayo decided that the way people are treated affects the way they work.

Question 10

Mayo’s conclusions:

Answer 10

From his experiments Mayo believed workers are motivated by:
- better communications between the management and workforce.
- greater involvement of the management in the lives of the workforce.
- Working in teams is important.
This led to a more human resource style management.

Question 11

Maslow’s Hierarchy of Needs

Answer 11

Basic needs at the bottom and higher needs towards the top.

Once a lower need is satisfied, individuals strive to satisfy needs further up the hierarchy.

Established five levels of human needs that can be satisfied through employment.

Business could motivate its employees by offering them the chance to fulfil a higher level of need once a lower one was satisfied.

Question 12

what are the 5 needs in Maslow’s theory?

Answer 12

Physiological needs - the most basic in order to survive (water/ shelter)
Safety needs - feeling safe at not at risk (job security / not being injured at work)
Love and belonging - feeling accepted and part of a group (social events)
Ego / Self esteem - feeling good about yourself, confident in ability (praise)
Self actualisation - stretching self to reach full potential (given extra responsibility)

Question 13

Maslow: 2 types of needs:

Answer 13

mental needs (psychological) 
physical needs (physiological)

Question 14

Herzberg’s two factor theory:

Answer 14

found that the causes of dissatisfaction were markedly different from the causes of satisfaction.
> developed theory about– job satisfaction and dissatisfaction.

> motivators- to give job satisfaction
hygiene factors- reduce dissatisfaction

Question 15

The difference between a hygiene factors and motivators:

Answer 15

• Hygiene factors do not motivate, but simply reduce or prevent dissatisfaction. They are factors that happen around a job but are not part of a job itself
• Motivators satisfy employees, and therefore positively motivate employees. They are factors which relate directly to the job role.

Question 16

features of motivators factors:

Answer 16

• Sense of achievement
• Recognition for effort and achievement
• The nature of the work – that it is meaningful and interesting
• Responsibilities
• Promotion and improvement opportunities
• Personal growth and development

Question 17

features of hygiene factors:

Answer 17

• Company policies – administration, etc.
• Supervision
• pay/salary
• Employee and employer relations
• Working conditions

Question 18

Impact of Herzberg

Answer 18

One of the main policy recommendations that was developed from Herzberg’s study was Job Enrichment.
> This is the attempt to motivate employees by giving them the opportunity to use their abilities, giving them authority over planning and greater independence.

Question 19

what are financial methods of motivation?

Answer 19

when an employee is rewarded with direct monetary gain

Question 20

Examples of different types of financial motivation:

Answer 20

> Wage: This is paid depending on the hours worked, overtime may be given depending on the contracted terms
Salary: An annual amount paid to employees, normally given in monthly installments

Performance related pay
> Piece rate: System whereby employees are paid according to the quantity of product they produce
> Commision: Method of payment in which the amount paid is related to the value of of goods or services an employee sells
> Profit sharing: System whereby employees receive some of the businesses profits
> Share ownership: May be “free” shares but more likely employees given the opportunity to buy shares, these will be at a previous share price agreed years before

Question 21

What are the advantages of financial motivation?

Answer 21

• Employees become aware of how they contribute to the business
• Financial methods are normally linked to individual efficiency, therefore it encourages personal responsibility in employees (i.e. improving labour productivity)
• Management is scrutinised more closely and is accountable for their performance
• Having a share of the ownership of the business develops loyalty
• Can be used by business to overcome resistance to change in the short term

Question 22

What are the disadvantages of financial motivation?

Answer 22

• With salary schemes even if an employee does not pull their weight then they will still get a bonus
• It can be difficult to arrive at the final figure to distribute and this may cause mistrust
• A drop in profit could be related to the market fluctuation and be out of the control of employees
• Poor management or processes can affect profit more than employee efforts
• Employees may not feel secure with piece rate or commission payments – this could affect morale and loyalty
• Piece rate pay can encourage employees to produce as much as possible and compromise quality, damaging customer relations and reputation in the long term

Question 23

what is non-financial motivation?

Answer 23

Employees do not receive any direct payment, but the non-tangible elements of work are considered

Question 24

examples of non-financial motivation:

Answer 24

• Job design: This includes job enrichment, job rotation, job enlargement. Involved grouping together or dividing up tasks and responsibilities to create complete job roles.
• Appraisal systems: A business can measure an employee performance with the aim of offering training and a chance for them to develop new skills or abilities. This can involve a process of open dialogue between employees and managers.
• Autonomy: Employees have some freedom and control
• Team working: When an organization divides its production process into large units instead of relying on division of labour. Teams are then given the responsibility for completing large units of work.

Question 25

Different types of team working

Answer 25

• Production teams: Many productions lines are organized into distinct elements called ‘cells’. Each cell is staffed by teams whose members are multi-skilled. They monitor product quality and ensure production targets are met.
• Quality circle teams: Small teams designed to propose solutions to existing problems and to suggest improvements in production methods. The teams contain members drawn from all levels within the organisation
• Management teams: increasingly, managers see themselves as complementary teams, establishing the organisation’s objectives and overseeing their achievement

Question 26

Advantages of non-financial forms of motivation

Answer 26

• There are fewer boredom issues which should mean better quality products are produced
• Employees become multi-skilled because of job rotation and enrichment
• Therefore staff shortages can be filled
• Staff can test their leadership skills prior to taking management positions
• Promotions are internal so recruitment costs are cut

Question 27

Disadvantages of non-financial forms of motivation

Answer 27

• high training costs
• Employees may expect more money as they become better skilled
• Some systems can be complicated and costly to run
• Employees may suffer stress from taking on too much
• A long-term approach which may need a change in culture (not easy to achieve)

Question 28

Benefits of having motivated and engaged employees

Answer 28

• Low level of absenteeism at all levels of the business
• Relatively few employees deciding to leave (low labour turnover)
• High levels of labour productivity
• In customers facing roles better customer service
• Businesses may be seen as good employer
• Good relations between managers and other employees

Question 29

How can this impact on each functional area of business

Answer 29

Marketing, Operations, Finance, Human resources (motivating employees is already part of HR, but what others areas of HR does motivated and engaged employees make easier

Question 30

Influences on choice and assessment of financial and non-financial motivation

Answer 30

The costs involved: If profit margins are slim or shareholders are unhappy with the level of profits manager may not be able to offer bonuses, piece-rate pay or to pay for training
The attitude of the management team: Some managers have a strong autocratic steak other more relaxed (can relate to the Blake Mouton model)
The training given to the management team: Have manager been taught about theories in motivation?
Skill levels of the workforce: Delegation and job enrichment may require high levels of employees to be trained if they do not have a certain skill level
Importance of public perception of the business
Effectiveness of communication within and outside the business