Unit 6: Motivating workers Flashcards
Motivation
the reason why employees want to work hard and effectively for the business.
Why do people work?
For money, for security, for social needs (feeling part of a group or organisation), for esteem needs (feeling important), and job satisfaction (feeling you have done a good job).
Taylor Theory
he thought that all individuals are motivated by personal gain and therefore, if they are paid more they will work more effectively. His ideas were too simplistic because employees are motivated by many more thing than just money. Furthermore, if an employee is unfulfilled with their work in some way, paying them more won’t make them more motivated.
Maslow Theory
he proposed a hierarchy of needs. For worker to be motivated, the higher levels in the pyramid must be available for them. Money is not enough. Furthermore, each level of the hierarchy must be achieved before an employee can be motivated by the next level. Once social needs (Belonging-Love) are met, this might no longer motivate the employee, but gaining self-esteem might motivated them. Managers should identify at which level a job is, and look for possible ways of reaching the next level.
Herzberg Theory
he thought that humans have two sets of needs: basic animal need which he called “Hygiene”, and “motivational” need which involve the human being able to grow psychologically.
Hygiene factors must be satisfied, if not they might act as demotivators. However, they do not act as motivators, as once they are satisfied the effects of them quickly wears off.
Maslow pyramid
1) Physiological (food, water, shelter, sleep)
wages high enough to meet weekly bills
2)Safety (security, stability, freedom from fear)
job security
3)Belonging-love (friends, family, lover)
work colleagues that support you at work
4)Self-esteem (Achievement, recognition, respect)
Being given recognition for a job well done
5)Self-actualization (pursue inner talent)
Being promoted and given more responsibilities
Herzberg “Hygiene” and “Motivators”
Hygiene
Status Security Work condition Company policies and administration Relationship with supervisors Relationship with subordinates salary
Motivators
Achievement Recognition Personal growth/development Advancement/promotion Work itself
Financial rewards
Payment for work. It can take various forms: wages, time rate, piece rate and salaries
Wages
Payment for work paid weekly. Worker gets paid on a regular basis and doesn’t have to wait long for some money. If an employee works longer than their usual hour they can be paid overtime. However, as they are paid weekly they have to be calculated every week which takes time and money (wages clerks have to be hired)
Time rates
payment by the hour. It is easy to calculate the worker’s wages and the workers knows exactly what they will be paid for working a certain period of time. However, they have to be recorded on a time-sheet which must be filled and takes time to do so. Moreover, good and bad worker get paid the same which causes that more supervisors are needed to make sure workers are doing a good job. Finally, it requires a clocking-in system to determine the number of hours per worker.
Piece rate
workers are paid depending on the quantity of products made. It can be applied to bonus systems where employees who produce more than a set target of output are rewarded. It encourages workers to work faster and produce more goods. However, workers might concentrate on making many products and ignore quality, which means that the business will need a quality control system which is expensive. Moreover, workers who are careful in their work will not earn as much as those who rush, and if the machinery breaks down the employee will earn less money.
Salaries
payment for work paid monthly. Easily calculated by the business. It is paid for the job and extra work is usually included in. The employer has the money in the bank for longer and the payment has to be calculated only once a month. Workers may get more money if the following rewards are added to the basic salary:
commission, profit sharing, bonus, Performance related pay and Share ownership
Rewards added to the salaries
Commission: Paid to sales staff. The more sales they make the more money they are paid. Encourages the sales staff to sell as many products as possible. It can be stressful for the sales staff.
Profit sharing: Employees receive a share of the profits in addition to their basic salary. This will motivate them to work harder as they all receive part of the profit made by the business.
Bonus: A sum paid to the workers when they have worked well, usually paid at the end of the year.
Performance related pay: The employee pay is linked to the effectiveness of their work. Used where output cannot be measured. Often uses a system of Appraisal which is when and employee’s immediate superior observes their work and carries out interview with them to discuss their effectiveness.
Share ownership: Employees are given shares of the business. This should encourage them to work harder as they will receive dividends if the company does well.
Non-financial rewards
Also called ‘Fringe Benefits’. They may include: company vehicle, discounts on the firms products, health care paid, children’s education paid for, share options, free trips and holidays.
Job Satisfaction
Enjoyment derived from feeling that you have done a good job. The factors that will make employees unhappy must be satisfied before they can be motivated in a positive way. Once these are satisfied, there are other sources of satisfaction such as:
Pay, how the employee is treated, Level of responsibility, promotion opportunities, Working hours, Sense of achievement, Working conditions, colleagues Recognition for good work, Fringe Benefits,Status of the job,Chance of training.
