Chapter 7 - Management Skills 2: Motivating

Question 1

What is motivation

Answer 1

It is a willingness to do something e.g. work. It is what drives people and it encourages them to work to achieve their goal

Question 2

What are the five levels on Maslows hierarchy of needs pyramid

Answer 2

1. Physiological needs - food, shelter
2. Safety - security, safety
3. Social - friendship, love
4. Esteem - status, respect, appreciation
5. Self actualization - achieve ones full potential, be ones best self

Question 3

Examples of physiological needs in a business

Answer 3

Paying a fair wage for fair work
Bonus payments for meeting targets
Profit sharing scheme

Question 4

Examples of safety needs in a business

Answer 4

Offering employees long term contracts
Providing health insurance cover
Providing a safe working environment

Question 5

Examples of social needs in a business

Answer 5

Offering flexible time arrangement
Enabling employees to work in teams
Organizing social needs

Question 6

Examples of esteem needs in a business

Answer 6

Praise for work well done
Providing job titles
Offering employees an office of their own

Question 7

Examples of self actualization needs in a business

Answer 7

Providing workers with a career plan
Providing training and development opportunities for employees
Employee empowerment

Question 8

Discuss three advantages of maslows hierarchy of needs

Answer 8

1. Rewards - it recognizes that people are motivated by more than money. They can be motivated by job titles, working in teams, praise and training and careers development opportunities
2. Changing employee needs - it understands that people’s needs change over time. Different rewards can be used to motivate individuals at different stages of their career
3. Managing positions - by providing training and development opportunities it prepares employees for future management positions

Question 9

Discuss three limitations of maslows hierarchy of needs

Answer 9

1. Individual needs - assumes that all people are motivated by the same things at the same stage of their careers. It does not consider that people have different motivations at different life stages.
2. Self actualization - the concept of self actualization varies from person to person. A business may find it difficult to find ways to motivate employees at this level of the hierarchy.
3. Value of needs - not all needs may be of equal value for employees e.g. one employee may value esteem needs above safety needs.

Question 10

What is mcgregors theory x and theory y

Answer 10

Theory x and theory y are two extremes of how management views employees attitudes to work
Theory x is associated with an autocratic leadership style, while theory y is associated with a democratic leadership style.

Question 11

What do theory x managers believe

Answer 11

That employees:
Dislike work
Avoid taking responsibility 
Lack ambition 
Are motivated by money

Question 12

What are the implications of a theory x style management

Answer 12

Demotivated workforce - an autocratic approach combined with a lack of trust and delegation. Leads to low morale among employees. Employees are less likely to use their own initiative
Poor time management - as a theory x manager does not delegate tasks to employees, management can become overwhelmed and stressed
High Labour turn over - unhappy employees leave their jobs. This increases costs for business e.g. recruitment and training costs
Low quality goods and services - employees do not feel valued as they are not involved in decision making in the firm. This reduces productivity and can result in lower quality goods and services for consumers.

Question 13

What do theory y managers believe

Answer 13

That employees:
Like work and are willing to work hard
Want to take on additional duties and responsibilities
Are ambitious
Are motivated by financial and non financial rewards

Question 14

What are the implications of theory y leadership

Answer 14

Motivated workforce - because employees are trusted and given responsibilities, they are motivated and willing to work hard for the business
Management time - as a theory y manager delegated tasks to employees, they have more time to focus on other managerial duties. This can reduce workplace stress
Low Labour turnover - workers remain in the business longer, thus reducing recruitment and training costs
High quality goods and services - employees take pride in their work and act as intrapreneurs by suggesting ways to improve products or process. This results in higher quality goods and services for consumers.

Question 15

Discuss three advantages of mcgregors theory x and theory y leadership

Answer 15

1. Employee motivation - theory y recognizes that employees work better when trusted with responsibility. This increases motivation levels among staff
2. Recruitment and selection - theory y helps to create a positive workplace environment. This can help the business to attract high quality employees and reduce Labour turnover.
3. Improved industrial relations - regular communication between management and staff, as in theory y helps to improve industrial relations in the business.

Question 16

Discuss three limitations of mcgregors theory x and theory y leadership

Answer 16

1. Unrealistic - it would be unusual for a manager to take a purely theory x and theory y approach to management. Managers use aspects of both theories.
2. High staff turnover - employees tend to be unhappy when managers use a theory x style of motivation. This can increase staff turnover leading to higher recruitment and training costs.
3. Less intrapreneurship - employees are less likely to share ideas with managers that use a theory x style of management. This can lead to lower quality products for consumers.

Question 17

Discuss five reasons why motivation is important

Answer 17

1. Improved productivity - employees are more productive when they are motivated
2. Less staff turnover - employees remain in the business longer so there is less staff turnover
3. Less absenteeism - motivated employees are absent from work less often
4. Better business reputation - high motivation among staff improves the businesses reputation
5. Less industrial relations conflict - employees have regular contact with management and are less likely to take industrial action.