Unit 2: Motivating Employees (Chap 6)

Question 1

What are the keywords for this chapter? (Chap 6)

Answer 1

• Motivation
• Labour productivity
• Absenteeism
• Labour turnover
• The theory of economic man
• Piece-rate
• Hygiene factors
• Motivators
• Financial and non-financial rewards
• Hourly wage rate
• Salary
• Piece-rate
• Commission
• Bonus
• Performance-related pay
• Fringe benefits
• Profit sharing
• Job rotation/enlargement/enrichment
• Quality circles
• Team working
• Delegation

Question 2

Define ‘motivation’

Answer 2

The factors that influence the behaviour of employees towards achieving set business goals.

Question 3

What are the benefits of a well-motivated workforce?

Answer 3

• Improved productivity
• Low rate of absenteeism
• More competitive
• Low rate of labour turnover
• Better quality goods and services

Question 4

Maslow’s Hierarchy

Answer 4

(Starting from the most important human needs)
1. Physical needs (Water, food, shelter, clothing and rest)
2. Safety needs (Health and safety at work, job security, free from threats)
3. Social needs (Friendship, acceptance, belonging to a group)
4. Esteem needs (Respect from others, recognition for job well done, status)
5. Self-actualisation (Reaching one’s potential)

Bottom of triangle is physical needs and top is self-actualisation

Question 5

What are the limitations of Maslow’s Hierarchy?

Answer 5

• Difficult to identify how much of each need has been met and which level each employee is on
• Money might satisfy esteem needs as well as those lower down the hierarchy
• Not everyone has the same needs as those in Maslow’s Hierarchy
• Self-actualisation is rarely achieved

Question 6

What are the 2 key motivational theories?

Answer 6

Taylor and Herzberg

Question 7

F.W. Taylor - scientific management theory

Answer 7

• Employees are motivated by money alone
• To get employees to increase their efforts they have to be rewarded with more money
• Known as the theory of economic man
• Piece-rate method
• Employees are paid a fixed amount for every unit they produce
• If employees are motivated by money then they’ll work harder
• The more units they produce, the more they will be paid

Question 8

Fredrick Herzberg - two-factor theory

Answer 8

• Hygiene factors must be present at a level which is acceptable to employees to prevent job dissatisfaction
• Improving hygiene factors makes this less likely
• However it doesn’t motivate employees to work more efficiently, motivators do
• Managers can use one or more motivators to increase employee motivation
• These motivators won’t work unless there’s an acceptable level of hygiene factors to prevent job dissatisfaction

Question 9

Name the hygiene factors in a work setting

Answer 9

• Working conditions
• Relationships with others
• Salary and wage
• Supervision - how closely employees are supervised.
• Company policy and administration - these are the rules and procedures which control and affect the way that employees work and their relationship with others in the workplace.

Question 10

Motivators

Answer 10

• The work itself
• Responsibility
• Advancement - employees have the opportunity for promotion.
• Achievement - employees need to feel that they have reached challenging goals.
• Recognition of achievement - needs to be recognised by management and other employees.