Motivating Employees
Objectives
2.1.1 The importance of a well-motivated workforce:
• Why people work and what motivation means
• The benefits of a well-motivated workforce: labour productivity, reduced absenteeism and labour turnover
• The concept of human needs, e.g. Maslow’s hierarchy
• Key motivational theories: Taylor and Herzberg
2.1.2 Methods of motivation:
• Financial rewards, e.g. wage, salary, bonus, commission and profit sharing
• Non-financial methods, e.g. job enrichment, job rotation, teamworking, training, opportunities for promotion
• Recommend and justify appropriate method(s) of motivation in given circumstances
What is motivation?
“The factors that influence the behaviour of workers towards
achieving set business goals.”
Why do people work?
A Motivated Employee
An unmotivated employee
What motivates people?
● Money
● Promotion
● Training
● Benefits like leave, paid vacation, etc.
● Friendship with other workers
● Clean and safe workplace
● Responsibility
● Status
● Variety of tasks
Benefits of a well-motivated workforce
Workers
are more
efficient
More Low rate of
competitive absenteeism
Benefits
Better Low rate
quality of labor
goods turnover
and (people
services quitting)
Maslow’s hierarchy of needs
Self-actualisation
1
Reaching one’s potential, feeling content and
fulfilled from one’s work
Esteem needs
2
Respect from others, recognition for good
work, status
3 Social needs
Friendship, acceptance, belonging to a group
Safety needs
4
Health and safety at work, job security, free
from threats
5 Physical needs
Water, food, shelter, clothing, and rest
Taylor’s scientific management theory
● Make work efficient (quickest method of
production)
● Workers are motivated by money alone.
● To increase workers efforts, they need to
be given more money.
● Workers should be paid fixed amounts
based on how efficient they are or how
many units they produce.
● Still used in many countries for
factory-level jobs.
Herzberg’s 2-factor theory
Herzberg’s 2-factor theory
Hygiene factors Motivators
(necessary to prevent job dissatisfaction) (influence / motivate a person to work harder)
Working conditions The kind of work being done - Challenging
tasks
Relationships with others Responsibility
Salary or wages Advancement/ promotion
Supervision Achievement/ success
Policies and management of company Recognition of achievement
Methods of motivation (typical)
Non-financial Financial
- Job Enlargement - Wages / Time Rate (Hourly / Weekly)
- Job Rotation - Piece Rate (paid per piece of output)
- Job Enrichment - Salary (Monthly)
- Team working - Bonus / Commision (for meeting targets)
- Delegation - Fringe Benefits (Health Insurance, Company
- Car)
- Profit Sharing
Ways to ACTUALLY motivate people
Intrinsic Extrinsic
(Internal) (External)