Lecture-Six

Motivating
Employees
LEARNING GOALS
1. Understanding about motivation

2. Intrinsic and extrinsic rewards

3. Explain Taylor’s theory of scientific management.

4. Identify the levels of Maslow’s hierarchy of needs and

apply them to employee motivation.

5. Distinguish between the motivators and hygiene factors

identified by Herzberg.
 Motivation

Motivation is an important concept in management. It denotes the inspiration,

desire and willingness to satisfy individual needs and achieve objectives. For
example, managers may offer financial incentives to recognize employee
achievements and motivate high performance standards from others. Another
example is when management provides positive feedback in appreciation of an
employee's efforts.
 INTRINSIC / EXTRINSIC REWARDS

Reward systems in organizations are a positive approach to motivate employees

to perform work tasks more efficiently or at a higher standard of quality. When
work is completed, workers receive a positive outcome based on their
performance. Many organizations use reward systems to increase the
productivity of their employees, instill loyalty and good employee behaviors, and
help grow their employees' self-confidence in their work. Intrinsic rewards and
extrinsic rewards are the two main reward systems, each with a different
psychological method of achieving organizational goals and receiving
reinforcement.
 INTRINSIC / EXTRINSIC REWARDS

Intrinsic rewards, or intrinsic motivation, are driven by an internal personal

interest in receiving positive reinforcement. To benefit from intrinsic rewards, an
individual must possess an autonomous mastery of the task and a clear purpose
for wanting to benefit from it. The motivation is personally rewarding to the
individual because they find satisfaction and enjoyment in their work. Intrinsic
rewards do not rely on the dependence of others in most cases.
 INTRINSIC / EXTRINSIC REWARDS

Extrinsic rewards, or extrinsic motivation, are defined by factors such as

compensation, punishment, and consequential reward. Extrinsic rewards are tangible
and external to the individual, meaning employees complete a work task to avoid
punishment. If they refuse to complete a task that will offer compensation or a
reward, the individual may face negative consequences. In most extrinsic reward
systems, higher-level management rewards an employee with additional finances.
The goal of extrinsic reward systems usually fulfills the desired outcome without
meeting the basic psychological needs of the employee.
INTRINSIC / EXTRINSIC REWARDS
TAYLOR’S SCIENTIFIC
MANAGEMENT
• Scientific management theory is a method of improving
efficiency in the workforce. As its name implies, this
management theory uses scientific methods to assess work
processes.
• The scientific method consists of three steps: observation,
experimentation, and analysis. In science, this could mean
observing the effects of a treatment, experimenting with a
different treatment, and analyzing the results. Similarly,
managers use scientific management theory to observe their
workplaces, test different methods of completing tasks, and
analyze the effect of the changes.
 TAYLOR’S SCIENTIFIC
MANAGEMENT

• When properly implemented, scientific management theory improves productivity.

It is an evidence-based method that prioritizes efficiency and reliability. Having
scientifically rigorous work methods in place creates clear expectations for
employees because it establishes a single right way to do things. It also gives
managers a unified standard against which to evaluate their employees.
 TAYLOR’S FOUR KEY
PRINCIPLES

1. Study how a job is performed.

 Gather time & motion information.
 Check different methods.
2. Codify the best method into rules.
3. Choose workers whose skill matches the rules.
4. Establish a fair level of performance and pay.
 MASLOW’S
THEORY of MOTIVATION
Hierarchy of Needs -- Theory of motivation based
on unmet human needs from basic physiological
needs to safety, social and esteem needs to self-
actualization needs.
• Needs that have already been met do not motivate.
• If a need is filled, another higher-level need emerges.
 HERZBERG’S
two FACTORS theories
Herzberg’s research centered on two questions:
- What factors controlled by managers are most effective in
increasing worker motivation?

- How do workers rank job-related factors in order of

importance related to motivation?
 HERZBERG’S
TWO FACTORS theories

 Motivators -- Job factors that cause employees to be productive and that give them
satisfaction.
 Hygiene Factors -- Job factors that can cause dissatisfaction if missing but that do
not necessarily motivate employees if increased.
 Comparison of
HERZBERG’S
TWO FACTORS
theories and
Maslow”s
Hierarchy of needs
theory
Thank you