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The importance of employee motivation

  • Motivation refers to the inner desire or willingness that propels a person to take action and achieve a specific goal or outcome

    • Motivation can be intrinsic, coming from within a person (values, beliefs, etc.)

    • Motivation can be extrinsic, coming from external factors (rewards or punishments)

  • Motivation plays a critical role in a business’s success and can have a significant impact on productivity, reliability and loyalty of its workers and labour turnover rates

Motivation and productivity

  • Motivated employees are more productive and efficient, as they are more likely to be engaged in their work and take the initiative to meet or exceed their goals

  • They will generate higher levels of output and quality

  • Increased productivity results in higher profits for the business

Motivation and the reliability of workers

  • Motivated employees are more likely to be reliable and dependable

  • They take pride in their job, show up on time, meet deadlines and take fewer sick days

  • This leads to increased trust between the business and its employees as well as higher productivity

Motivation and staff turnover

  • Motivated employees are more likely to stay with the company long-term, which reduces the turnover rate

  • Lower turnover rates reduce the need for costly recruitment and training

Motivation theories: Taylor’s Scientific Management

  • Developed by Frederick Winslow Taylor in the early 20th century

  • It focuses on breaking down complex tasks into simpler ones, standardising work processes and providing workers with clear instructions and training to achieve maximum efficiency

  • Many manufacturing businesses use Taylor’s principles to structure their staff benefits, e.g. piece-rate pay

    • Production lines involving human labour are often set up based on these principles

Taylor’s approach to staff motivation

Flowchart with five green circles: science over rules, train employees, efficient work methods, divide work and pay based on results. Arrows show progression.
Taylor’s method starts with a scientific analysis of what is involved in a job and then breaks it down into parts for which employees can be trained 

Explanation

1. Study and analyse the work process

  • Carefully analyse each step of the work process

  • Break down complex tasks into simpler ones, and identify the most efficient and effective way to perform each task

2. Standardise the work process

  • This involves creating detailed procedures and instructions for each task so that workers can follow these procedures consistently

3. Select and train the workers

  • Workers should be carefully selected based on their skills and abilities

  • Train workers to perform their tasks efficiently and effectively

    • This training includes both technical skills and the proper attitudes and behaviours required to be successful (e.g. patience in a repetitive task)

4. Provide incentives for performance

  • Scientific management emphasises the use of incentives to motivate workers

    • This may include bonuses or piece-rate pay

How businesses use Taylor’s Scientific Management

How businesses use Taylor’s approach

Advantages

Disadvantages

  • Workers are trained to perform only one task, which they become very skilled at

  • Workers are usually only paid for the completed work (piece-rate pay), e.g. $0.16 per T-shirt completed by garment workers in Bangladesh

  • Increased efficiency, which lowers costs

  • Standardised procedures for work processes that everyone follows can help reduce errors and inconsistencies

  • Specialisation of labour leads to greater efficiency and productivity

  • Clear hierarchy and lines of authority can lead to more efficient decision-making and communication

  • Improved training and development can lead to better performance and job satisfaction

  • Overemphasis on efficiency reduces worker satisfaction and creativity

  • Workers may disengage from work if they are reduced to working in a machine-like system

  • Limited applicability, as this approach may not work for roles that require high levels of creativity, problem-solving or interpersonal skills

  • Potential for exploitation as this approach may be used to extract more work from workers without compensating them fairly, e.g many sweatshop labourers get paid using this method

Motivation theories: Mayo’s Human Relations Theory

  • Mayo’s Human Relations Theory was developed by Elton Mayo in the 1930s

  • It focuses on the importance of social factors in the workplace

    • These include factors such as communication, motivation and job satisfaction

  • Mayo suggests that the key to improving productivity and job satisfaction lies in understanding and improving the relationships between workers, supervisors and management

How businesses use Mayo’s Human Relations Theory

How businesses use Mayo’s approach

Advantages

Disadvantages

  • Empowering employees in decision-making, e.g, creating teams that decide their own priorities

  • Team-building activities are used to build relationships

  • Providing feedback and recognition to employees, e.g. Worker of the Week

  • Creating a positive work environment by promoting open communication and providing support to employees, e.g. offering wellness programmes

  • Encouraging employee development by offering training programmes, mentorship opportunities and career advancement paths

  • Improved job satisfaction

  • Increased productivity as workers feel valued and supported

  • Better communication — workers value open and honest communication, which reduces misunderstandings and conflicts

  • Employee empowerment increases workers’ sense of ownership and responsibility

  • Stronger teams as there is a sense of community and team spirit

  • Time-consuming as building positive relationships requires time and effort

  • Lack of control as workers make more decisions

  • Resistance to change — some workers and managers may be resistant to the changes required by Mayo’s theory

  • Potential for conflict as attempts to build stronger relationships can also lead to conflicts and disagreements

  • Limited applicability as it may not work for businesses that require a high degree of individual autonomy and independence

Motivation theories: Maslow’s Hierarchy of Needs

  • Maslow’s Hierarchy of Needs is a theory of human motivation that outlines five tiers of human needs that must be met for individuals to reach their full potential

Maslow’s hierarchy

Maslow's hierarchy of needs pyramid with levels: physiological, safety, love/belonging, esteem and self-actualisation, each with specific examples.
Maslow’s Hierarchy of Needs, typically represented as a pyramid, with basic needs at the base and more complex needs at the top

Application of Maslow’s Hierarchy of Needs

  • Physiological needs

    • Businesses can provide necessities for their employees

    • E.g. comfortable work environment, access to clean water and food and adequate rest breaks

  • Safety needs

    • Businesses can provide job security, fair pay, benefits and safe working conditions for their employees

  • Love and belonging (social) needs

    • Businesses can encourage teamwork and generate a sense of community within the workplace

  • Esteem needs

    • Businesses can provide recognition for employees’ accomplishments and provide a positive work culture that values individual contributions

  • Self-actualisation needs

    • Businesses can help employees achieve this need by offering opportunities for employees to pursue their passions and interests

    • E.g. Barclays was known for supporting elite sportspeople by allowing them time off work during the day to continue their training (the focus was on getting the job done, not having to be in at a certain time)

Evaluation of Maslow’s Hierarchy of Needs

Advantages

Disadvantages

  • Higher employee satisfaction: By meeting the needs of employees, businesses can create a more satisfying work environment, which can lead to increased productivity and lower turnover rates

  • Increased motivation: Businesses can motivate their employees by offering incentives that align with their specific needs and desires

  • Improved employee performance: Employees who feel valued and supported by their employers are more likely to perform at a higher level

  • One size does not fit all: Businesses need to tailor their approach to meet the individual needs of their employees

  • Expensive: Meeting many individual needs can be costly, especially when offering perks such as the use of a company car

  • Time-consuming: Requires significant effort from management to connect individually to understand which opportunities for personal growth are desired

Motivation theories: Herzberg’s Two-Factor Theory

  • Herzberg’s theory suggests that there are two types of factors that affect employee motivation and job satisfaction

    • Hygiene factors are elements that do not necessarily lead to job satisfaction, but their absence can cause dissatisfaction, which decreases motivation, e.g. poor teamwork in the workplace

    • Motivators are elements that lead to job satisfaction and motivation, e.g. increased responsibility

Herzberg’s Two-factor Theory

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