Financial Motivators

Wages - where staff are paid each week for the level of hours work
Commission - where people are paid a percentage of the value sold
Bonus - where an employer pays a set value to congratulate achievement
Salaries - where staff are paid the same level each month regardless of how little work is put
in

Performance Related Pay - where an employer opts to try and provide set targets to aspire
to

Profit Sharing - where the profits are distributed evenly with employees being given a
percentage of them
Piece Rate - where an employer opts to pay his staff according to their direct productivity
Promotion - where career prospects are enhanced as a result of efforts made
Share Options - where the employee is offered the opportunity to be a shareholder in the
company
Fringe Benefits - benefits given, separate from pay, by an employer to some or all
employees

Non-Financial Rewards
Job Rotation - increasing the flexibility of theworkforce and the variety of work they do by
switching from one job to another. There would be a decrease in
in multiple skills. It does not boredom and an increase
provide any authority or promotion.
Job Enlargement - attempting to
increase the scope of a job by broadening or
tasks undertaken. There would be an
increase in workload and sense of
deepening the
decrease in job satisfaction. responsibility but a
Job Enrichment- aims to use the full capabilities of
to do more challenging and fulfilling work. workers by giving them the
There is a decrease in direct opportunity
increase in responsibility, as well as some supervision and an
Job Redesign - this involves the decision making authority.
and agreement, to make work restructuring
of a job, usually with
more interesting, satisfying and employees' involvement
promotion and an increase in employeechallenging. There would be
an increase in chance of
Quality Circles - voluntary groups of
workers who meet regularly to
development.
problems and issues. There is an increase in discuss work-related
to solving problems
voice for the workers and a
hands on approach
Worker Participation - workers actively
within the organisation. There Would beencouraged to become
an increase in team
involved in decision making
responsibility. working, motivation and
Team Working - production is
organised so that groups of workers undertake
labour turnover but an increase in quality complete
..nits of work. There is a decrease in
and improved
ideas
 Elton Mayo - The Hawthorne Effect

ton Mayo - motivational theorist based on his studies known as The Hawthorne Effect. He
oncluded that:

Changes in work conditions and financial rewards had little or no effect on productivitY
When management consulted workers and took an interest, motivation improved
Team work and developing team spirit can improve productivity
motivational
When some controlover their own working lives is given, there is a positive
effect
influenced by
Groups Can establish their own targets or norms and these can be greatly
informal leaders of the group

Maslow's - Hierarchy of Needs

Abraham Maslow an American psychologist whose work on human needs has had a major
of
influence of management thinking. His Hierachy of Needs suggests that people have similar types
needs from low level basic needs to the need for achievement.
sélf
Actualisation
Self-Esteem
Needs

Social Needs

Security and Safety Needs

Physiological Needs

Self-Actualisation - the need to fulfil one's potential tnrougn dctions and achievements, Maslow did
not believe this need could be filled fully and thougnt peOpie would always strive to develop further
and achieve more.

Calf.Esteem Needs - the need to have self-respect and respect from others, positive feedback eain
from promotion
recognition and status for achievement, and opportunities
friendship, love and a sense of belonging, or being part of a team.
Social Needs - the desire for
canteens are important to fulfil this
Facilities like staff rooms and
working
need for security, a secure job, safe environment, clear lines of
Safety Needs - the
accountability and responsibility.
requirement for food, clothes and shelter. In
Physiological Needs - the
relation to Work it's the need
and to have reasonable working
earn income
to acquire these things conditions.
to
 Motivation

Motivation - the act or process of stimulating an action, providing an incentive or motive, especiall.
for an act completed. It also defined as what caused people to act or do something in a positive wa.

Motivation Theory- the study of factors that influence the behaviour of people in the workplace.

Why motivate employees?

Low labour turnover
Low absenteeism
They are more prepared to accept
responsibility
They may begin to make suggestions for
improvements
High productivity

Indicators of poor staff motivation

Absenteeism - a deliberate absence for which there is not a satisfactory
followsa pattern explanation, often
Lateness - arriving late may often becomes habitual
Poor Performance - poor-quality work; low levels of work or greater waste of
Accidents - poorly motivated workers are often more careless, materials
work or distract others which will increase concentrate less on their
accidents
Labour Turnover- people leave for reasons that are not
positive; even if they do not get
other jobs, they spend time trying to get them
Grievances - there are more of them within the workforce and there
might be more union
disputes
Poor Response Rate - workers do not respond very well to
orders or leadership and any
response is often slow

F.W. Taylor's Scientific Management

F.W. Taylor - an American engineer who invented
work-study and founded the scientific approach
to management. He considered money to be the
main factor that motivated workers, so he
emphasised the benefits of Piece Work.
Scientific Management - business decision making based on data that are
researched and tested
quantitatively in order to improve efficiency of an organisation. Higher efficiency would
generate
higher profits and thus higher wages to workers.

What did Taylor recommend?

Division of Labour- breaking a job into small repetitive tasks, each of which can be done at a
speed with little training
Piece work - payment by results e.g. for every unit made they receive a certain amount of
money
Tight Management - ensures workers concentrate on their jobs and follow the correct
processes
 Leader ship-the
Autocratic style
-a
art of
of
of
Leadership
motivating ggroup people towards achieving
a

Lower levels of the leadership that keeps decision all

a
conmon objective
one way. hierarchy given little delegated authority and centre the Organisation
are making the at
of

communiccation usually just is

Experienced Advantages
leaders have full control of
making decision Demotivates staffDisadvantages
who
Good in crisis
situations accept responsibility want to contribute and
Decisions do not benefit from staff
Democratic - a
style of leadership that input
involves great deal of
a allows the majority opinion of staff to
participation
from the influence decisions. It
workforce but can be timne consurming
Advantages
Encourages participation in decision making Disadvantages
Two-way communication is used which allows Consultation with staff can be time
feedback from staff Issues may be sensitive to staff e.g. consuming
too secret for staff to be job losses or
aware of
Laissez-Faire - a style of
leadership that leaves much of the running and decision
business to the workforce. This may be appropriate in research and making of the
staffed by skilled specialists that are self motivated. development departments

Advantages
Gives employees as much freedom as possible Disadvantages
Lack of feedback may be demotivating
Managers communicate goals to employees but Workers may not appreciate lack of structure
allow them to choose how they wish to work and direction in their work

Paternalistic - a style of leadership based on the approach that the manager is in a better position
than the workers to know what is best for the organisation

McGregor's Theory X- managers believe the workers dislike work, will avoid responsibility and are
not creative

MCGregor's Theory Y- managers believe that workers can derive as much enjoyment fromwork as
from rest and play, will accept responsibility and are creative
General View - workers will behave as a result of management attitudes

Emotional intelligence - the ability of managers to understand their own emotions, and those of the
people they work with, to achieve better business performance. Emotional Intelligence
competencies should try to develop and improve on:
Self Awareness - knowing what we feel using that to guide decision making
Self Management- being able to recover quickly from stress
Social Awareness - sensing what others are feeling
Social Skills - handling emotions in relationships well and understanding social situations
 Management
so that the
oganising resources and motivating staf
Manager fesponble for etting othectives coordinate activities in the firm, as well as
mut afso
orgarsation airn are met Mangers
sainst targets
controllig and mesturinE performance
thareholders in a lirnited cormpany They are
Directorsenior managers elected nto offce try
utually head of a major functional department, uch as mnarketing
of others fhis is usually not a
Supervon-appointed by management to watch over the work
in working
decision making role but they will have responsibility for leading a ten of people
toward pre set goal

Workers' Repreventatives -elected by the workers in order to discuss ares of common concern
with managers

intormal eader - a person who has no formal authority but has the respect of colleagues and some
power over them

Delegation - passing authority down the organisational hierarchy

Empowerment - allows workers some degree of control over how their task should be undertaken

Mintzberg's Management Roles

Interpersonal Roles - dealing with and motivating staff at all levels of the
o Figurehead - symbolic leader, takes on social or legal nature organisation
Leader - motivating subordinates, selecting and training staff
o Liaison - linking with managers and leaders of
other divisions of the business and
other organisations
Informational Roles - acting as a source, receiver and transmitter of
Monitor (receiver)- collecting data relevant to the business information
operations
Disseminator - sending information collected from internal and
the relevant people within the external sources to
o Spokesperson -
organisation
communicating information about the organisation, such as current
position and achievements, to external groups and people
Decisional Roles- taking decisions and allocating resources to
meet the organisations'
objectives
o Entrepreneur- looking for new opportunities to develop the business
o Disturbance Handler - responding to changing situations that may put the
at risk, assuming responsibility when business
threatening factors develop
Resource allocator - deciding on the spending of the
organisations financial
resources and allocation of physical and human resources
Negotiator - representing the organisation in all important
negotiations
 Herzberg's Two Factor Theory

Frederick Herzberg - an American psychologist whose research led him to develop the Two-factor
theory of job satisfaction and dissatisfaction.

Motivators Hygiene/Maintenance Factors

Sense of Achievement
Working Conditions
Recognition for effort and achievement Supervision
Nature of the work itself
Pay
Responsibility Interpersonal relations
Promotion and improvement opportunities Company police and Admin e.g. pgperwork, rules

Motivators - aspect of a worker's job that can lead to positive job

satisfaction
Hygiene Factors - aspects of a worker's job that have the
potential to cause dissatisfaction

David McClelland- Motivational Needs Theory

Achievement Motivation -a person with a strong need to
achieve goals and job advancement
Authority/ Power Motivation - a person with a
dominant need is 'authority motivated'
Affiliation Motivation -a person with a need for
with other people affiliation, friendly relationships and interaction

Vector Vroom - Expectancy Theory

Vroom's Theory- that an employee's
views regarding the possibility of motivation a complete a task is influenced by
to
their personal
completing the task and the possible
completing the task. The theory is based on three beliefs: outcome consequence of
or

"Valence'- the depth of the want of an

an intrinsic reward such as satisfaction employee for an extrinsic reward, such as money or
'Expectancy' - the degree to which people believe that
given level of performance putting effort into work will lead to a
"Instrurmentality'- the confidence of
even if it has been promised by the employees that they will actually get what they desire.
manager