Motivation Notes A13C

Chapter 14: Motivation

Introduction to motivation
Motivation is a very important for an employee in an organization to have. These motivated
workers can be an essential factor to help an organization to achieve their goals. It also may
help the individuals to satisfying their own personal goals. Motivation can be divided into
two, extrinsic and intrinsic motivation that stimulate people to achieve their goals.
Extrinsic motivation is considered as external factors for example the pay, health care,
unemployment leave and other benefits. This will help motivate the employees even if the
doing is not quite satisfying.
Intrinsic motivation on the other hand is the personal satisfaction for the employees by doing
the work itself even if they dont get paid. This doesnt necessarily mean the employers
wouldnt have to pay the workers anything, no! Some rewards is still needed even if the
workers are driven to the work.
Unmotivated employees may not perform in organization, and this will lead to low level of
productivity and a low company income. While highly motivated workers may lead to high
productivity and reduce the labour cost turnover as they would give commitment to the
organization for a long period of time.
Here are some characteristic indicators of poorly motivated workers:-
Poor performances
- This is often identified as poor-quality of work.
- Mostly caused by unsatisfactory of work content in terms of quantity or quality.
- Poor performance may also happen because of personal problems

Accidents
- Employees that are less motivated tend to make more mistakes
- Caused by lack of focus and carelessness while doing the work

Poor response rate
- The lack of or slow response by worker when given a task by their leader.
- Often caused by lack of respect to the leader or lack of motivation

Lateness
- When the workers comes late to work or the failure to submit the assignment on time.
- It will often become a habit

Motivation Notes A13C

Labour turnover
- People tend to leave the company as a result of lack of motivation or lack of
satisfaction in doing the job

Absenteeism
- Workers tend to take leave without a satisfactory explanation. Can be habitual.

Grievances
- The wrong or hardship suffered by the employees and shared between them
- May lead to complaint or protest by the workers




















Motivation Notes A13C

F.W Taylor and Scientific Management

Techniques used:
Establishing idea / hypothesis,
Studying and recording performance at work
Altering working methods
Re-recording performance


Taylors aim: reduce inefficiency that exist in US manufacturing industry


How to improve worker productivity:
Select worker to perform a task
Observe them & note the key element
Record time taken to do each part of the task
Identify the quickest method
Train workers to do in quickest way & not allow them to make any changes to it
Supervise workers to use this method & not exceed the set time
Pay workers on the basis of result theory of economic man
factor
inefficiency
untrained
workers
little or no
formal training
- deal with
people
no security of
employment
non-
specialised
workers
no formal
selection or
appraisal
system of staff
recruit on daily
or weekly basis
poorly led by
supervisors
and managers
B E S A R
Motivation Notes A13C

Theory of economic man
Man was motivated by money
Taylors main motivational suggestion
- wage level based on output
- workers should be paid a fair days pay for a fair days work
- amount should be directly linked to output through a system known as piece
rate
paying workers a certain amount for each unit produced
paid according to the productivity of each employee
- to encourage high output
set low rate per unit for the first units produced
pay higher rates if output targets are exceeded

Taylors approach Relevance to modern
industry
Limitations
- Economic Man
- Taylors theory of human
behaviour: man is a rational
economic animal concerned
with maximising his economic
gain.
- People are motivated by
earning the highest possible
wage.
- Managers (some)
believe that
money is the only
way to motivate
staff.
- Not all staff is
motivated by
money.
- Workers or staff
love a wide range
of needs, not just
needs of money.
- Select the right people for
each job

- There seem to be
the same idea in
appointing the
right people for
each role before
Taylors
approach.
- Its important in
selecting the right
people for the
right job.
- We need a well
prepared procedure
in making sure that
this kind of
approach will be
implemented
successfully.
- Observe and record the
performance of staff
- Widely adopted
and known as
time and motion
study.
- Still employed as
a technique but
(often) with the
co-operation and
involvement of
staff.
- Taylors autocratic
use of this
technique was
regarded with
suspicion among
workers to make
them work harder.
- Establish the best method of - Still relevant in - Taylors approach
Motivation Notes A13C

doing a job method study. modern
workplace.
- Management
need to break
each job into
individual tasks
and determine
which steps dont
contribute to the
end product.
of management
which involved
giving instructions
to workers without
discussion or
feedback
considered to be
undesirable.
- Workers
participation in
devising best work
practices is now
encouraged
kaizen
(Continuous improvement)
which states that all
workers have something to
contribute to improve the
business and products.
- Taylors approach
treat workers as
robots (exploitation
of the workers)
Piece-work payment systems: To
maximise output through
motivating workers to produce
more.
- If a worker didnt achieve
enough in a day, he didnt
deserve to be paid as much as
another worker who was
highly productive.
- A fair days pay for a fair days
work
- Of limited
relevance as it has
become difficult
to identify the
output of each
worker.
- This is not now a
widely used
payment system.
- Quality will be
sacrificed in search
for quality.
- Workers will vary
output according to
their financial
needs at different
times which will
discourages them
from accepting
changes at work in
case they lose
some pay.






Motivation Notes A13C

Maslows Hierarchy of Human Needs
Abraham Maslow developed the Hierarchy of Needs model in the 1940-50s, and it is
still used today for understanding human motivation, management training, and
personal development.
He believed that human actions are motivated in order to achieve certain needs.
According to his theory, individuals strive to seek a higher need when lower needs are
fulfilled. Once a lower level need is satisfied, will no longer serves as a source of
motivation and needs are motivators only when they are unsatisfied.
This means that people are motivated to fulfil basic needs before moving on to other,
more advanced needs.
His model is often displayed as a pyramid where the lowest levels of the pyramid are
made up of the most basic needs, while the more complex needs are located at the top
of the pyramid.
Level of need Business condition which allows for the
need to be met
Self-Actualisation Challenging work that stretches the
individual. Opportunities to develop and
apply new skills will increase potential. This
level of need refers to what a persons full
potential is and the realization of that
potential
Esteem Needs Recognition for work done well. Maslow
noted two versions of esteem needs: a lower
version and a higher version. The lower
version of esteem is the need for respect from
others like status.The higher version
manifests itself as the need for self-respect.
For example, the person may have a need for
strength.
Social Needs Working in teams or groups and ensuring
good communication to make workers feel
involved.
Safety Needs A contract of employment with some job
security- a structured organisation that gives
clear lines of authority to reduce uncertainty.
Ensuring health and safety conditions are
met.
Physical Needs Income from employment high enough to
meet essential needs. Some example of
important requirement needed for human
survival is food and shelter. If ones income
is too low,it may cause problem to that
person as he doesnt have enough money to
buy basic necessity and it can affect his work
performance.

Motivation Notes A13C


Limitations of Maslows approach
Criticisms of Maslows hierarchy include:
Not everyone has the same needs as are assumed by the hierarchy.
In practice it can be very difficult to identify the degree to which each need has been
met and which level a worker is on.
Money is necessary to satisfy physical needs, yet it might also play a role in
satisfying the other levels of needs, such as status and esteem.
Self-actualisation is never permanently achieved as some observers of the
hierarchy have suggested. Jobs must continually offer challenges and opportunities
for fulfilment, otherwise regression will occur.
Key term:
Self-actualisation: A sense of self-fulfilment reached by feeling enriched and
developed by what one has learned and achieved

Mcgregors Theory X and Theory Y

THEORY X
- Managers believe that workers
THEORY Y
- Managers believe that workers
Dislike work Can derive as much enjoyment from
work as from rest and play
Well avoid responsibility Will accept responsibility
Are not creative Are creative

He did not suggest that there were two types of workers X and Y, but the attitudes of
management to worker could, in extreme cases, be described by these two theories.
Managers believes that all workers behave in theory X way, there will be control, close
supervision, no delegation of authority, not enjoy their work, may indeed try to avoid it
and fail to contribute in any meaningful way.




Motivation Notes A13C

Herzberg and The Two-factor Theory

The Two-factor Theory (also known as Herzbergs motivation hygiene theory and dual-factor
theory) states that there are certain factors in the workplace that causing job satisfaction and a
separate set of factors that causes dissatisfaction. Herzberg theorized that job satisfaction and
dissatisfaction are independent each other.
According to Herzberg, individuals are not agreeing with the satisfaction of lower-order
needs at work; for example, those needs related with minimum salary levels or safe and
pleasant working conditions. Rather, individuals look for the great satisfaction of higher-level
psychological needs having to do with achievement, recognition, responsibility,
advancement, and the nature of the work itself. This appears to parallel Maslow's theory of a
need hierarchy.
However, Herzberg added a new dimension to this theory by proposing a two-factor model of
motivation, based on the general understanding that the presence of one set of job
characteristics or incentives leads to worker satisfaction at work, while another and separate
set of job characteristics leads to dissatisfaction at work. Satisfaction and dissatisfaction are
not on a continuum with one increasing as the other diminishes, but are independent to each
other. It is wrong for admin to assume that an increase in satisfaction leads to decrease in
dissatisfaction. This theory suggests that to improve job attitudes and productivity,
administrators must recognize and to take charge of both sets of characteristics.
Consequences of Herzbergs theory:
1. In order to reduce the dissatisfaction about work, firms may increase the payment
(wages) to the workers and improve the working conditions. Herzberg argued that it
was possible for someone to do the job when being paid- movement. However, by
paying them doesnt mean that the workers will become motivated. By improving
working condition will act as motivator to encourage workers to do well in their
tasks. Herzberg didnt claim that pay didnt matter, but it moves people to do the job
and doesnt motivate them to do it well.

2. Herzberg suggested that motivators could be provided by adopting the principles of
job enrichment. There are 3 main features of job enrichment:
i) Assign workers complete unit of works- complete and identifiable unit of
work should be assigned to workers as it will encourage team-work rather than
individual. Thus, this could prevent the workers from being boring and will
appreciate their work.
ii) Provide feedback on performance- give recognition to the workers for what
they have done. By that, the workers will become motivated and want to do
better.
Motivation Notes A13C

iii) Give the workers a range of tasks- this is to challenge and stretch the
individual by giving a range of task that at least initially or beyond the workers
current experience.
3. A business could offer higher pay, improved working condition and less heavy-
handed supervision of work in order to remove dissatisfaction. This is because if the
workers are not interesting, rewarding or challenging they will be unsatisfied and not
be motivated.

Key Terms:
J ob enrichment - aims to use the full capabilities of workers by giving them the opportunity
to do more challenging and fulfilling work
Hygiene factors - aspects of a workers job that have the potential to cause dissatisfaction
such as pay, working conditions, status and over-supervision by managers
Motivating factors (motivators) - aspects of a workers job that can lead to positive job
satisfaction such as achievement, recognition, meaningful and interesting work and
advancement at work
Movement - occurs when a person does something because he/she needs to, perhaps because
it is part of their job or because the person feels obliged to do so, i.e. movement is based on
extrinsic motivation.
Motivation - happens when a worker does something because she/he really wants to do, i.e. it
is based on intrinsic movement

Evaluation of Herzberg and The Two Factors Theory
1) Herzbergs two factor theory has come up with two factors which are the motivational
factor and the hygiene factor

2) Job satisfaction are related to job content whereas job dissatisfaction are related to job
context


3) The motivational factor are the job satisfiers and the hygiene factors answers the problem
of job dissatisfaction

4) The Hygiene Factor
a) Depends on the working environment
b) It was explained through the Maslows Hierarchy of Needs
c) The examples of characteristic of needs are
(i) Psychological
(ii) Safety
(iii) Social
Motivation Notes A13C

5) The basic needs of employees are the hygiene factors according to Herzberg
(a) Do not give motivation
(b) Only gives a conducive work environment
(c) Satisfaction if basic needs are fulfilled

6) Easier to apply Herzbergs Theory also with Maslows Theory
a) Strengthen Herzbergs Theory as it simplifies its application as a strategy to motivate
employees
b) By identifying the needs in Maslows Theory , the hygiene and motivational factors
can be obtained and subsequently fulfilled
c) Herzberg recognises true motivation comes from within a person and not from the
environment, or external factors

7) Weakness of Herzbergs Theory
a) Did not take into account the various job factors that might cause satisfaction and
dissatisfaction
b) Some job factor scales are not purely motivation or hygiene factors
c) Herzberg used a general standardised scale
d) Results are not based on actual job experiences or situation

8) Application of Herzbergs Theory
a) Team working is more widespread
b) Whole units of work being delegated to groups
c) Workers tend to be made much more responsible for the quality of own work
d) Firms continually looking for ways to improve effective communication













Motivation Notes A13C

Motivation in Practice
Definition of motivation:
inner desire, effort and passion to achieve something
it is also define as the willingness to complete a task or job with enthusiasm paul
hoang
the intrinsic and extrinsic factors that stimulate people to take actions that lead to
achieving goal cambrigde












Benefits of increased worker motivation:
improve corporate image
better industrial relations
higher morale an job
higher profit
lower absenteeism
lower staff turnover






Motivation can be classified as
Intrinsic Motivation
-comes from the satisfaction derived from working
on and completing a task
- occurs when people engage in an activity out of
their own desire
- Such as enjoyment of pursuing a hobby or an
interest, responsibility and commitment to team or
society.
Extrinsic motivation
-comes from external rewards associated with
working on task
- occurs when people participate in an activity
because of the benefits and rewards associated
with the activity.
- The reward may be tangible (salary, wages) or
intangible (praise, recognition)

Motivation Notes A13C

Sign of poor staff motivation:
absenteeism deliberate absence for which there is not a satisfactory explanation;
often follow a pattern
lateness often becomes habit
poor performance poor quality of works; low levels of work or greater waste of
materials
accidents poorly motivated workers are often more careless, concentrate less on
their work or distract others and this increase the livelihood of accidents
labour turnover people leave for reasons that are not positive; even if they do not get
jobs, they spend trying to do so
grievances there are more of them within the workforce and there might be more
union disputes
poor response rate workers do not response well to orders or leadership and any
response is often slow

Payment or Financial Reward Systems:
Hourly or time wage rate
- The most common one
- Determined by multiplying this by the number of hours worked and is usually
paid weekly.
- Speed of work is not rewarded with this payment system (might encourage
workers to work overtime unproductively)
- Advantage: straightforward method, easily understood by the workforce
- Disadvantage: workers are paid for their time, not their efforts. Encouraging
slack and poor productivity


Piece rate
- A rate is fixed for the production of each unit and the workers wages therefore
depend on the quantity of output produced.

Advantages Disadvantages
Encourages greater effort and faster
working.
It requires output to be measureable
and standardised
The labour cost of each unit is
determined in advance and this helps
in setting a price for the product
It may lead to falling quality and
safety levels as workers rush to
complete units.
Workers may settle for a certain pay
level and be demotivated to more
work.
It provides little security over pay
level.

Motivation Notes A13C

Salary
- Most common form of payment for professional, supervisory and management
staff.
- Fixed each year and not dependent on number of hours or number of units.
- Determine the status of that post in an organisation.

Advantages Disadvantages
Gives security of income Income is not related to effort levels or
productivity.
Give status compared to time rate or
piece rate payment systems.
It may lead to complacency of the
salary earner.
Aids in costing as the salary will not
vary in a year.
Regular appraisal may be needed to
assess whether an individual should
move up a salary band, although this
could be advantage if this becomes a
positive form of work appraisal.
Is suitable for jobs where output is not
measureable.

Is suitable for management positions
where staff are expected to put in extra
time to complete a task or assignment


Commission
- It can make up 100% of the total income of direct sales staff.
- It reduces security as there is no basic or flat-rate payment if nothing is sold
during a particular period.

Advantages Disadvantages
Encourages greater effort and faster
working.
It requires output to be measureable
and standardised
The labour cost of each unit is
determined in advance and this helps
in setting a price for the product
It may lead to sales staff trying too
hard to convince the customer to buy a
product which will give a bad
impression of the company.
Workers may settle for a certain pay
level and be demotivated to more
work.
It provides little security over pay
level.
Does not encourage team work.






Motivation Notes A13C

Performance-related pay (PRP)
- Usually in the form of a bonus payable in addition to the basic salary.
- Widely used for output that are not measurable in quantitative terms
(management, supervisory and clerical posts)
- It requires:
i. Requires regular target setting, establishing specific objectives for the
individual.
ii. Annual appraisals of the workers performance against the pre-set targets.
iii. Paying each worker a bonus according to the degree to which the targets
has been exceeded.
- Main aim is to provide further financial incentives and to encourage staff to meet
agreed targets.

Advantages Disadvantages
Staffs are motivated to improve
performance if they are seeking
increases in financial rewards
It can fail to motivate if staff are not
driven by the need to earn additional
financial rewards.
Target setting can help to give purpose
and direction to the work of an
individual.
Team spirit can be damaged by the
rivalry generated by the competitive
nature of PRP
Annual appraisal offers the opportunity
for feedback on the performance of an
individual.
Claims of manager favouritism can
harm manager-subordinate
relationships.
May lead to increase control over staff
managers because of the danger that
bonuses may not be awarded if workers
do not conform.

Employee share-ownership scheme
- Reward the workers, managers & director by giving them shares in company.
- Companys share sold to these groups in discounted price. (alternative to profit
sharing)
- Staff will have more direct interest in the well-being in the organisation by also
being the shareholder in the company. (staff will be the shareholder & the owner)

Advantage Disadvantage
Motivation: Lower rate of absenteeism
and staff turnover because they are
being motivated to work as they are
also the owner of the company, and if
the company develop well, they will
benefits as well and vice versa.
Tend to be rewarding the senior
management team; major of the
employees do not qualify for
share ownership
Impractical for many company



Motivation Notes A13C

Fringe benefits
- Payment and benefits to an employee in addition to their wage or salary
- Different from one firm to another & depends on the position of the employee in
the organisation.
Example: company cars, subsidised meals, private health insurance, housing
allowance, staff discount, etc.
- Enhance the well-being of the worker

Advantage Disadvantage
Motivation: As the needs of the worker is
fulfilled (safety need: Maslow), they will felt
secure and thus will be happy to work
without worrying. This will create high
motivation
High Cost; huge burdens on a
firms cash flow position
Senior managers will qualify for
further benefit
Example: company cars, business-
class air travel.



Non-Financial Methods of Motivation

1. Job enlargement - giving workers more variety in what they do, which should make
the work more interesting. The work not necessarily more challenging
2. Job enrichment - giving workers more complex and challenging task which should
contribute to workers feeling of achievement as they are able to exploit their potential.
3. Job empowerment - delegating decision making power to workers over their areas of
work, which should help to boost their overall morale
Critics:
Does not apply to many occupations especially those in low-skilled and low-paid job.