Motivating employees
Why people work and what motivation means
Motivation is the willingness of employees to exert high levels of effort towards organizational goals, conditioned by the effort's ability to satisfy some individual need. To understand how to motivate staff, a business must first understand why people work. People are driven by a mix of financial and non-financial reasons.
The primary reason most people work is to earn money (wages or salary) to meet their basic needs and improve their standard of living. However, once basic financial needs are met, other factors become important. These include job satisfaction (feeling a sense of achievement), safety/security (job security), social needs (belonging to a group), and esteem (recognition and status).
Labour Productivity
Labour productivity is the output per worker (or per hour worked) in a given period. It is calculated as: \text{Labour Productivity} = \frac{\text{Total Output}}{\text{Number of Workers}} A well-motivated workforce typically has higher labour productivity because employees work harder and more efficiently.
Absenteeism
Absenteeism refers to the rate at which employees are absent from work. High motivation leads to lower absenteeism because employees feel committed to their jobs and do not wish to let their colleagues down.
Labour Turnover
Labour turnover is the rate at which employees leave a business and need to be replaced. It is calculated as: \text{Labour Turnover Rate} = \frac{\text{Number of Employees Leaving}}{\text{Average Number of Employees}} \times 100 Motivated employees are less likely to leave, reducing recruitment and training costs.
Benefits of a well-motivated workforce
A motivated workforce provides significant advantages to a business. The three key benefits are:
| Explanation |
|---|
| Motivated employees work harder and more efficiently, leading to higher output per worker. This can lower the average cost per unit. |
| Employees who are motivated are more committed to their roles and less likely to take unnecessary sick leave or skip work days. |
| Motivated employees are more satisfied with their jobs and stay with the business longer. This saves the business money on recruitment advertising, interviewing, and training new staff. |
Maslow’s Hierarchy of Needs
Abraham Maslow proposed that human needs are arranged in a hierarchy. Employees must satisfy lower-level needs before they can be motivated by higher-level needs. The five levels, from bottom to top, are:
| Description |
|---|
| Basic survival needs: food, water, shelter. In work, this is met by a basic wage. |
| Protection from danger and uncertainty. Met by job security, safe working conditions, and pension schemes. |
| Friendship and acceptance. Met by teamworking, social events, and good relationships with colleagues. |
| Self-respect and recognition from others. Met by job titles, awards, praise, and status symbols. |
| Reaching one's full potential. Met by challenging work, autonomy, and opportunities for personal growth. |
Application: If an employee is struggling to pay bills (Physiological needs), offering them a 'Employee of the Month' award (Esteem) will not motivate them until their basic financial needs are secure.
Taylor’s Scientific Management Theory
Frederick Taylor believed that workers are primarily motivated by money (economic man theory). He argued that work should be broken down into small, specialized tasks to increase efficiency. His key methods include:
| Description |
|---|
| Employees are paid a fixed amount for each unit they produce. This directly links effort to reward. |
| Breaking jobs into simple, repetitive tasks so workers become highly skilled and fast at one specific action. |
| Managers plan the work and set targets; workers simply execute the tasks. This removes autonomy but increases control. |
Critique: While effective for unskilled labor, this theory ignores social and esteem needs, potentially leading to boredom and high turnover if used alone.
Herzberg’s Two-Factor Theory
Frederick Herzberg distinguished between two sets of factors that affect motivation:
| Effect on Motivation |
|---|
| These do not motivate employees. However, if they are absent or poor, they cause dissatisfaction. Their presence only prevents dissatisfaction. |
| These factors create true motivation and job satisfaction. Without them, employees are not dissatisfied, but they are not motivated either. |
Key Insight: To motivate staff, a business must improve the Motivators. Improving Hygiene factors (like raising salary slightly) will only stop complaints; it will not make employees work harder.
Financial Rewards
Financial rewards are monetary payments made to employees. Common types include:
| Definition |
|---|
| Basic regular payment. Wages are usually hourly/daily; salaries are fixed annual amounts. |
| An additional one-off payment above basic pay, awarded for achieving specific targets or good performance over a period. |
| A payment calculated as a percentage of the value of sales made by the employee. Common in sales roles. |
| Employees receive a share of the company's profits, aligning their interests with the business's success. |
Non-Financial Rewards
Non-financial rewards are non-monetary methods used to motivate employees. Key methods include:
| Definition |
|---|
| Adding more responsibility and variety to a job (vertical loading) to make it more challenging and satisfying. It gives employees more control over their work. |
| Moving employees between different tasks or jobs periodically (horizontal loading) to reduce boredom and increase skill variety. |
| Grouping employees together to work on a task. This fosters social interaction, peer support, and shared responsibility. |
| Providing education and skills development. This helps employees feel valued and prepares them for future roles. |
| Clear career paths allow employees to see a future within the company, satisfying esteem and self-actualization needs. |
⚠︎ Confusing Job Rotation and Job Enrichment
The Error: Students often confuse job rotation with job enrichment. They may also incorrectly state that job rotation involves taking rest periods.
The Correction:
- Job Rotation is moving an employee between different jobs to reduce boredom. It does not necessarily add responsibility; it just changes the task.
- Job Enrichment involves giving an employee more responsibility and autonomy within their current role (vertical expansion). It makes the job deeper, not just different.
⚠︎ Confusing Herzberg’s Factors
The Error: Students often list 'Salary' as a motivator that increases motivation.
The Correction: In Herzberg’s theory, Salary is a Hygiene Factor. It prevents dissatisfaction but does not create long-term motivation. To motivate, you must use factors like Recognition, Achievement, or Responsibility.
Answering 'Recommend' Questions
When to use: This tip applies when the question asks you to 'recommend' or 'justify' a specific motivation method for a given business context.
Why examiners accept this: Examiners look for application. A generic definition of a motivation method scores low marks. You must link the method to the specific needs of the employees in the case study (e.g., are they unskilled? Do they need money or recognition?).
Example: Instead of saying 'Bonuses motivate people,' write: 'NPZ should use bonuses because its workers are paid hourly and likely have high physiological needs; a bonus would directly reward their effort to meet production targets, addressing Taylor’s theory.'
Explaining Benefits of Motivation
When to use: Use this when asked to explain the benefits of a motivated workforce.
Why examiners accept this: Examiners require a chain of reasoning. Simply stating 'increased productivity' is insufficient. You must explain how motivation leads to that benefit.
Example: Do not just write 'Higher productivity.' Write: 'Motivated employees work harder and make fewer mistakes, which increases the output per worker (productivity), allowing the business to meet customer demand faster.'
Herzberg’s Theory Components
Q:
Identify two motivators from Herzberg’s theory of motivation. [2]
A:
Answer: Any two of: Achievement; Recognition; Personal growth; Advancement; The work itself.
Q:
Identify two hygiene factors from Herzberg’s two-factor theory. [2]
A:
Answer: Any two of: Working conditions/safe environment; Salary/wages/pay; (Job) security; Relationships with other workers; Relationships with supervisor.
Defining Financial Rewards
Q:
Define 'bonus'. [2]
A:
Answer: An additional payment above basic pay as a reward for good work; OR an additional reward paid to employees for achieving targets set by managers.
Q:
Define 'commission'. [2]
A:
Answer: Payment to employees relating to the number/value of sales made.
Benefits of Motivation
Q:
Identify two benefits of a well-motivated workforce. [2]
A:
Answer: Any two of: Quicker production/higher levels of productivity/improved efficiency; Increased output; Lower labour turnover; Lower rates of absenteeism; Better/high quality goods and services.
Reasons People Work
Q:
Identify two reasons why people work. [2]
A:
Answer: Any two of: (Earn) money/wage/salary/improve standard of living; Job satisfaction/feel as if you have done a good job; Safety/security e.g. job security; Social/feel part of a group/company; Esteem/recognition/status.