MOTIVATION AT WORK

What is motivation?
The process of stimulating people to
action, to accomplish desired goals. It
involves arousing needs and desires in
people to initiate and direct their behaviour
in a purposeful manner.
MOTIVATED WORKERS - HIGH PRODUCTIVITY -INCREASED OUTPUT-

HIGHER PROFITS

UNHAPPY WORKERS-DO NOT WORK EFFECTIVELY-

LOW OUTPUT-LOWER OR NO PROFIT

 MOTIVATION THEORIES
The study of factors that influence
the behavior of people in the
workplace.

For your exam you need to study 4 theorists

1.F.W. Taylor 2.Abraham Maslow

3.Frederick Herzberg 4.McGregor
 Scientific Management and
F.W.Taylor
• F.W. Taylor (1856 – 1915) was 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.
• Taylor saw Humans as Machines
 Scientific Management and
F.W.Taylor
• Taylor recommended:
– Extreme division of labour (with workers specilising in one very narrow
task)
– Payment by piecework
– Tight management control

• Division of labour – breaking a job into small repetitive tasks,

each of which can be done at a speed with little training.
• Piecework – Means payment by results, e.g. per item produced.
• Tight management ensures the workers concentrate on their
jobs and follow the correct processes.
• This method had a big influence on Mass production,
introduced at Ford Motor Company – led to poor industrial
relations and saw a growth in trade unions.
 Maslow’s Hierarchy of Needs
• Maslow classified human needs and then considered
how the classes related to each other

Self
fulfilment
needs

Self-esteem needs

Group needs

Security needs

Basic needs
 Maslow’s Hierarchy of Needs
• Basic needs • Self- esteem needs
– Required for survival – • Recognition as individuals
food, shelter, clothing – Praised for work
e.g. receipt of minimum – Efforts and rewards
wage • Self-fulfillment
• Security needs – Full personal development
• Individual creativity
– Safety, rest periods, – Full use of talents and abilities
sickness schemes MASLOW ARGUED THAT
• Group needs WHILST LOWER LEVEL
– Sense of belonging – NEEDS MUST BE MET, HIGHER
can be problem in large LEVEL EQUALLY ESSENTIAL TO
organisations – REALISE FULL POTENTIAL
managers need to form
AND AVOID CAREER
teams to recognise
group needs FRUSTRATION
Herzberg’s Theory of Motivation
and Dissatisfiers
• Hertzberg identified 9 factors
he called ‘dissatisfiers’ which
could cause absenteeism, low
production, dislike of change
and other negative actions at
work
Herzberg’s Theory of Motivation
MOTIVATORS
• The ‘satisfiers’ were:-
– Recognition of effort and
performance
– Job that provides enough
challenges
– Sense of achievement
– Assumption of responsibility
– Chance of promotion
Herzberg’s Theory of Motivation “
HYGIENE FACTORS
• The ‘dissatisfiers were:-
– Fluctuating company policy & admin
– Low pay
– Poor working conditions
– Confrontational relationships
– Unfriendly relationships
– Unfair management
– Unfair treatment of employees
– Feeling inadequate
– No individual development
 A WELL MOTIVATED WORKFORCE INCREASES
PRODUCTIVITY, TEND TO HAVE FEW DAYS OFF
WORK AND LESS LIKELY TO HAVE
GRIEVANCES,

THERE ARE 3 FACTORS WHICH CAN MOTIVATE

EMPLOYEES
1. FINANCIAL REWARDS

2. NON-FINANCIAL REWARDS

3. WAYS TO JOB SATISFACTION

FINANCIAL REWARDS: Monetary incentives involve payments in cash or kind or
both.

WAGES

1. Wage: A wage is a payment for work, usually paid weekly and which is
measurable and the following deductions are made : a] Tax to government,
b] pension scheme and trade union subscription.

TYPES OF WAGES RATES FOLLOWED IN ORGANISATIONS

TIME RATE AND PIECE RATE

SALARY or COMPONENTS OF SALARY USUALLY PAID AS A REWARD TO

BASIC SALARY

A. COMMISSION
B PROFIT SHARING
C BONUS
D. PERFORMANCE RELATED PAY
E. SHARE OWNERSHIP
SALARY:A Salary is a payment for work normally paid for staff on a monthly basis and
work is not measurable.

Commission: Payment relating to the number of sales made.

Profit sharing: It is a system whereby a proportion of the company’s profits is paid out
to employees.

Bonus: It is an additional amount of payment above basic pay as a reward for good
work.

Performance related pay: A pay which is related o the effectiveness of the employee.

Share ownership: Employees are given some shares in the company which will help
them work hard to earn dividends.
Time rate system is systems of wages in which wages are directly
linked with time spend by workers on the job. Wages can be
calculated as under:
Wages = Time spent * Rate of wages permit.

Merits :
1. It is simple to understand.
2. This system provides a feeling of economic security to workers
as temporary sickness or injury does not affect it
3. In time rate system, wastage of material tools and equipments
are less as the workers handle the resources carefully.
4. Maintains higher quality of output..
5. Accepted by trade unions.
It is the only method that can be used where the work is not
standardized and output cannot be measured.
This method is helpful to new workers as they can learn the job
without any reduction in their wages
Limitations: Reduces the quantity of output.
Lack of incentive to reach and sustain a reasonable level of work.
No incentive or reward for excellent workers.
There is a need for constant supervision.
1. Overtime wages: Employees work for longer time than the normal
time/working hours and they are paid double the wages.
PIECE RATE SYSTEM
Piece rate is a system of wage payment made on the no. of pieces produced,
a basic rate is usually paid with additional money, usually paid to individuals or for
team performance

MERITS

1. It eliminates the tendency of workers to go slow as remuneration is

directly linked with performance.
2. It reduces the cost of supervisors as minimum supervision is required.
3. It rewards superior performers and recognizes merit.
4. It motivates them towards hi9gher productivity and leads to higher
output
 Disadvantages of PIECE rate system
1.There is a danger that quantity will be
secured at the expense of quality or perhaps of
safety
2. While determining production standards the
industrial engineers face stiff resistance from
workers and opposition from trade union.
3.It is not suitable for setting up group incentive
plans unless all the workers’ jobs happen carry
the same hourly wage rate or production
standard.
NON – FINANCIAL MOTIVATORS: Fringe benefits are non financial rewards given to
employees

They are:

1. Children’s education fees paid

2. Discounts on the firm’s products

3. Health care

4. Company vehicle usually car facility

5. Free accomodation

6. Share ownership

7. Food and clothing

8. Pension paid

9. Free trips/holidays
Examples of Non-financial
rewards (1)
PENSION
SCHEMES CANTEENS

CRÈCHES

HOUSING

EDUCATION

HOLIDAYS
 Examples of Non-financial
rewards (2)
DISCOUNTS

HEALTHCARE
PHONES

INSURANCE
SPORTS TIME OFF
Before paying any incentives an organisation carries out appraisal:

An appraisal is a method of assessing the effectiveness of an employee

The other types of motivation that motivates workers are :

1. Job Satisfaction: It is the enjoyment derived from feeling that you have done a good
job.
Usually employees ideas of job satisfaction are:

1.Pay

2.Opportunities for promotion

3.Working conditions, working hours, the nature of work

4.Fringe benefits [details above]

5.Treatment of an employee, sense of achievement derived from the job,

recognition for good work, chance for training, status of the job.
2. JOB ROTATION:It involves workers swapping
round and doing each specific task for only a limited
time and then changing round again.

3. Job enlargement: It is where extra tasks of a

similar level of work are added to a worker’s job
description.

4. Job enrichment: It involves looking at jobs and

adding tasks that require more skill and or
responsibility.

5. Team work: Involves group of workers who decide

as a group how to complete the tasks or organize
the jobs, workers get involved in decision making
and take responsibility.