BEDIR INTERNATIONAL HIGH SCHOOL

2022/2023 ACADEMIC YEAR

BUSINESS TUDIES
FORM 2
PRESENTED BY: MR. K. MWALE
SECTION 2: PEOPLE IN BUSNESS
WEEK 1 to 7

TOPIC: MOTIVATING EMPLOYEES

The main reasons why people work
1. Money: to pay for the basic needs for life and some wants
2. Security: to know that you are safe (financially)
3. Affiliation (Social needs): to feel part of a group, meet people,
make friends
4. Self-importance (esteem): to feel that you are important and that
the job you do is important
5. Job Satisfaction: to feel pleasure that you have done a good job
Motivation – the feeling that makes employees want to work hard
and effectively in a business
The benefits of a well-motivated workforce
 High labour productivity
 Reduced absenteeism
 Low labour turnover
 Increased output

Key Motivational Theories

1. Maslow’s Hierarchy of Needs
2. F.W Taylor’s theory
3. Herzberg’s theory
 MASLOW’S HIERARCHY OF NEEDS
‘Maslow’s Hierarchy of Needs’ – is a pyramid showing the
different types of needs and how some are more important than
others
 Maslow states that needs lower down in the hierarchy must be
satisfied before individuals can attend to needs higher up. From the
bottom of the hierarchy upwards, the needs are: physiological,
safety, love and belonging, esteem, and self-actualization.
1. Physiological needs (fulfilled by receiving wages) - these are
biological requirements for human survival,

Examples of physiological needs

i. Air
ii. Food
iii. Drink
iv. Shelter
v. Clothing
vi. Warmth
vii. Rest.
  If these needs are not satisfied the human body cannot function
optimally.
 Maslow considered physiological needs the most important as all
the other needs become secondary until these needs are met.

2. Safety/Security needs (fulfilled by having job security) – protection

against danger, protection against poverty, fair treatment.
 Once an individual’s physiological needs are satisfied, the needs for
security and safety become salient.
 People want to experience order, predictability and control in their
lives.
 These needs can be fulfilled by the family and society (e.g. police,
schools, business and medical care).
Examples of safety/security needs
 emotional security
 financial security (e.g. employment, social welfare),
 law and order
 freedom from fear
 social stability
 safety against accidents and injury
 Protection against danger
 protection against poverty
 Fair treatment.

3. Social needs-Love and belongingness needs (fulfilled by having

colleagues at work) - after physiological and safety needs have been
fulfilled, the third level of human needs is social and involves feelings
of belongingness.

 The need for interpersonal relationships motivates behavior

Examples of social needs
 Friendship
 Intimacy
 Trust
  Acceptance
 Receiving and giving affection and love.
 Affiliating
 Being part of a group (family, friends, and work).
4. Esteem needs (fulfilled by being recognized for good work) are the
fourth level in Maslow’s hierarchy - which Maslow classified into
two categories:
(i) Esteem for oneself (dignity, achievement, mastery,
independence) and
(ii) The desire for reputation or respect from others (e.g. status,
prestige).
 Maslow indicated that the need for respect or reputation is most
important for children and adolescents and precedes real self-esteem
or dignity.
5. Self-actualization needs (fulfilled by being promoted & being given
more responsibility) are the highest level in Maslow's hierarchy, and
refer to the realization of a person's potential, self-fulfillment, seeking
personal growth and peak experiences.
 Maslow (1943) describes this level as the desire to accomplish
everything that one can, to become the most that one can be.
 Succeeding to your full potential, feeling that you have done a good
job not just for financial and personal reward. Being promoted and
given more responsibility.

 Maslow’s theory also suggests that each level in the hierarchy

(starting from Physiological needs) needs to be achieved before
moving on to the next

F.W TAYLOR’S THEORY - “All individuals are motivated

by personal gain”
 Taylor states that if the workers are paid more, they will work more
effectively
• By breaking down worker’s jobs into simple tasks, you could
 calculate how much output they could do in a day
• Taylor’s theory focused mainly on factory workers, since it is easy
to work out their output done
• Taylor’s idea was that if the workers produced this target output,
they would be paid more money
• This idea led to big productivity gains in companies that adopted
this theory

CRITICISMS OF TAYLOR’S IDEAS

HUMAN NEEDS- HERZBERG’S THEORY AND ITS

APPLICATION

Herzberg’s theory – humans have two sets of needs:

 According to Herzberg, individuals are not content with the

satisfaction of lower-order needs at work; for example, those needs
associated with minimum salary levels or safe and pleasant working
conditions.

 Rather, individuals look for the gratification 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 notion
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.

Two-factor theory distinguishes between:

 Motivators To be able to grow physiologically (called

‘Motivator’ needs) (e.g. challenging work, recognition for one's
achievement, responsibility, opportunity to do something
meaningful, involvement in decision making, sense of importance to
an organization) that give positive satisfaction, arising from intrinsic
conditions of the job itself, such as recognition, achievement, or
personal growth.

 Hygiene factors

 Basic animal needs (called ‘Hygiene’) (e.g. status, job security,

salary, fringe benefits, work conditions, good pay, paid insurance,
vacations) that do not give positive satisfaction or lead to higher
motivation, though dissatisfaction results from their absence.
 Herzberg often referred to hygiene factors as "KITA" factors, which
is an acronym for "kick in the ass", the process of providing
 incentives or threat of punishment to make someone do something.

 Herzberg’s theory claims that the ‘Hygiene’ factors must be

satisfied, if not, it will demotivate workers.

 Only after they are satisfied, can the ‘Motivator’ factors can act as
motivators for employees

METHODS OF MOTIVATION
• There are 3 Factors that motivate employees:
1. Financial Rewards
2. Non-Financial Rewards
3. Job Satisfaction

Financial Rewards/Motivators include:

i. Wages (payment for work, usually weekly)

 Time Rate (payment per hour, i.e. 10$/hour)
 Piece Rate (where workers are paid depending on the quantity of
products made).
 ii. Bonus (is an additional amount of payment above basic pay as a
reward for good work).
iii. Salaries (payment for work, usually monthly)
iv. Commission ( is payment relating to the number of sales made)
v. Profit sharing (is a system whereby a proportion of the company’s
profits is paid out to employees)
vi. Performance related pay (is pay which is related to the
effectiveness of the employee where their output can easily be
measured)
vii. Share ownership (is where shares in the company are given to
employees so that they become part owners in the company)
 Non-Financial Rewards/Motivators include:

i. Fringe benefits ( are non-financial rewards given to employees)

Fringe benefits include:

 Company Car
 Discounts of products
 Health care
 Children’s school paid for
 House is paid for
 Free trips abroad (holidays)
ii. Job enrichment (involves looking at jobs and adding tasks that
require more skill and/or responsibility)
iii. Job enlargement (is where extra tasks of a similar level of work are
added to a worker’s job description)
iv. Job rotation (involves workers swapping around and doing each
specific task for only a limited time and then changing round again)
v. Job satisfaction ( is the enjoyment derived from feeling that you
have done a good job)
Home work
Discuss the following non-financial methods of motivation:
1. Team working
2. Training
3. opportunities for promotion