2.4 - Motivation and Demotivation - Motivation Theories

This unit is so long.

Motivation

The desire, effort, and passion to achieve something. The willingness to complete a task or job with intent and purpose

Generic Benefits of increased worker motivation

• Higher staff morale and job satisfaction → higher productivity and quality

• Better industrial relations → reduce the chance of conflict in workplace

• Lower absenteeism → staff have incentives to turn up to work

• Lower staff turnover → reduced cost of replacing staff

• Improves corporate image → helps attract customers and potential employees

• Higher profitability → from combining all the benefits above

Warning signs of poor motivation in the workplace

• High absenteeism rate (% of workforce that miss work without valid reasons)

• High labour turnover rate (number of staff who leave as a % of the total workforce, per year)

• High wastage level (high % of defective output or substandard work)

• High number of customer complaints (due to poorer quality output and lack of customer service

• Low quality output (workers are more likely to make mistakes and care less about quality)

• Poor punctuality (poor timekeeping and missed deadlines)

• More disciplinary problems (corrective measures required to deal with less productive staff)

What are the motivation theories?

Taylor, Maslow, Herzberg, McClelland, Deci and Ryan, Equity and expectancy

Intrinsic Motivation

Motivation that is driven by an interest. Exists within the individual.

Ex: autonomy, belonging, curiosity, love, learning, mastery, meaning

Extrinsic Motivation

Comes from outside of an individual

Ex: badges, competition, fear of failure, fear of punishment, gold stars, money, points, rewards

Taylor’s Scientific Management (1911)

Essentially assumes that employees are primarily motivated by money and that productivity could be improved by setting output and efficiency targets related to pay

Promotes the use of division of labour (breaking down different parts of a job/task and assigning different people to each particular part of work

Advocated for the use of differentiated piecework where workers are paid normally if they reach the standard level of output, but then recieve a higher rate of pay, if they exceed the benchmark. He believed that workers should be scientifically selected for their jobs, based on their ability

How does Taylor (1911) work?

Managers plan the work using division of labour → Conduct a work study to identify the best way of completing the task → Train and develop each employee → Provide detailed instructions and supervision of each worker → Workers perform the work in a standardized fashion → Workers recieve payment based on their output (piece rates)

Criticisms of Taylor’s theory

• Ignores the non-financial factors

• Does not recognize that workers can be independent thinkers

• Focus only on extrinsic motivation

• Not always possible to measure the output of workers

• Can lead to repetitive and monotonous tasks

Abraham Maslow’s Hierarchy of Needs (1943)

Focuses on the emotional and mental (psychological) needs of workers as he believed people are motivated by more than just their pay. A person must be satisfied with their lower level before moving on to their higher level.

Physiological needs or basic needs

Examples: water, food, air, warmth, sleep

Safety needs

The demands necessary to make people feel safe and stable.

Ex: job security, sick pay, maternity leave, pension

Love and belonging

The human desire to be accepted as part of a friendship group or a family.

Ex: Opportunities to work as a team

Esteem needs

The desires for recognition and self-respect

Ex: Job titles, employee of the month

Self-actualization

The forces that drive people to become the best they can be

Criticisms of Maslow’s theory

• Identification of which level workers are currently on the hierarchy is difficult

• Assumes that all workers have the same five needs

• Self-actualization needs are rarely permanently achieved

• Some people may never be able to reach self-actualisation

Herzberg - 2-factor theory

Investigated the factors that cased satisfaction and disatisfaction at work.

Hygiene factor

Do not motivate but must be met to prevent dissatisfaction

Example: job security, organizational policies/rules/regulations, pay, physical security, good working conditions, coordination

Motivators

Factors that can lead to psychological growth of workers and hence increase satisfaction and performance at work

Example: achievement, recognition, responsibility, promotion, advancement, personal growth, interesting tasks

Criticisms of Herzberg’s theory

• Hygiene factors can be taken for granted

• Does not apply to low-skilled jobs as the study was limited to engineers and accountants

• Employees may not want the extra responsibility and stress from having enriched/more demanding jobs

McLelland’s Acquired Needs Theory (1961)

Three types of needs must be satisfied to boost motivation and productivity

• need for achievement (nAch)

• need for affliation (nAff)

• need for power (nPow)

_______ believed that all three are present, but the intensity varies

Need for Achievement (nAch)

_________ motivated people tend to be moderate risk takers. Prefer to work on tasks where they hold key responsibilities or work alongside high ________. More interested in personal success.

Should be given challenging but achievable tasks

Need for Power (nPow)

Power-motivated people like to influence the behaviour of others so tend to be very strong willed, either personal or institutional power. They use their authority to bring out the best in their team.

Should be given opportunities to manage and lead different teams of people

Need for Affiliation (nAff)

People who need _______ seek to have a good social and working relationship with colleagues and the senior management team. Tend to conform to group norms and avoid conflict. Prefer to favour opportunites for social interactions such as teamworking or customer relations

Should be given a cooperative and collaborative working environment to gain their best performance

Deci and Ryan’s self-determination theory (1985)

States that people can achieve intrinsic (autonomous) motivation when their needs of competence, autonomy, and relatedness are satisfied

Autonomy

The need or the drive to have control over what a person does. When completed, the person feels a sense of integrity and authenticity with their actions. When uncompleted, person feels frustrated and pressured in an unwanted direction

Competence

The need or drive to feel confident and competent in doing a particular task or job role. Can be achieved through providing and developing opportunities to use and extend people’s skills and expertise. When this need is not met, the person experiences a sense of ineffectiveness, vulnerability, and failure.

Relatedness

Refers to the need to interact, be connected to, and experience caring for others. This is satisfied when people develop meaningful relationships and inteactions with others. If not met, people feel socially alienated, excluded and lonely, which then have an impact on motivation and productivity.

John Stacey Adams - Equity Theory (1963)

The key premise of the theory is that workers will be motivated if they percieve that there is equity between themselves and relevant others.

People need to feel that there is a fair balance between their contributions and rewards in comparison to relevant others

Individuals seek a fair balance between what we put into our job (input/contributions) and what we get out of it in return (outputs/benefits)

Workers will only be motivated if their input to output ratio is deemed to be equitable in relation to that of others in the workplace. If they feel that they are not being fairly rewarded, they will seek to redress the balance

Equity

Percieved fairness or making adjustments to imbalances

Inputs/Contributions according to the Equity theory

• Effort

• Performance

• Loyalty

• Commitment

• Skill

Outputs/Rewards according to the Equity theory

• Pay

• Recognition

• Reputation

• Status

• Praise

• Training

• Opportunities

• Promotion

Vroom’s Expectancy Theory (1964)

States that a person’s motivation is determined by:

The individual’s assessment of the likelihood that the effort will lead to expected performance (Expectancy)

The belief that the performance will lead to reward (Instrumentality)

How much an individual wants a reward (Valence)

Vroom believes that if any of the factors are low, workers will be demotivated.

Motivation =

Expectancy x Instrumentality x Valence

The higher the number, the more motivated employees are likely to be.

How can workers be motivated according to Vroom’s Expectancy Theory?

Expectancy - Setting goals/targets that employees believe are achieveable

Instrumentality - Following through on promises

Valence - Offering a reward that is valued by the employees

Criticism of Vroom’s Expectancy Theory

It does not provide any specific suggestions on how to motivate employees

Labour Turnover

The number of workers leaving a company per year as a percentage of the average number of workers employed during that period of time

Acronym of why people leave their job

Challenge

Location

Advancement

Money

Pride

Job Security

CLAMPS

Impact of high labour turnover

• Loss of experience

• Damage to morale

• Diminished customer service

• Increased costs

• Decreased productivity

• Difficulty attracting talent

• Added stress

Key causes of high labour turnover

• Recruitment of workers who are not the right fit for the job

• Lack of recognition for job performance

• Poor relationships with co-worker

• Dangerous work environment

• Unchallenged by the work itself

• Lack of promotion opportunities

• Poor relationship with managers

• Poor pay

• Nature of the work itself

Why do firms recruit?

• Expansion - more workers required

• Change - new workers are required with different skills

• Replace workers who have left the organisation

• Replacing workers who have been promoted

Job Analysis

The process of determining the need to hire workers to verify

• the roles and responsibilities of the job

• the skills, qualifications, and attributes needed

• the rewards needed to attract the right candidates

→ From this ______, the job description and person specification are drawn up

Job Description

Document drawn up to include details about a job

• Job title

• Working Hours

• Duties and responsibilities

• Pay

• Line Manager

Person Specification

Identifies the characteristics needed of the person to do the job

Could include:

• Qualifications

• Experience

• Skills

• Personal Qualities

How are jobs advertised?

• Newspaper advertising

• Specialist trade publications

• Posters/notices

• Website/social media

• Recruitment websites

• Employment agencies

• Job centres

• University Fairs

• Head hunters

• Employee referals

How would jobs receive applications?

Either through Application Form or CV/Resume or Covering Letter

Application Form

A standardised document produced by the business for selecting appropriate job applicants

Curriculum Vitae (CV)

Document outlining an applicant’s education, employment history, skills, and professional qualifications

Cover Letter

Introductory letter written by the applicant, stating which position is being applied for and why the applicant should be considered for the job

Shortlisting

Involves reviewing the applications against the person specification and selecting the best ones to take through to the next stage

Job Interview

Conversation which occurs between a potential employer and a job applicant. Can be carried out through telephone, video conferencing, or face-to-face

Purpose of interviews

To find out more information about the candidate

To see if the candidate will fit in with the company culture

To assess if the candidate has the personal qualities needed to do the job

What tests may be required?

• Psychometric Tests

• Aptitude Tests

• Skills Tests

• Intelligence Tests

Assessment Centres

Some companies invite candidates in for whole days of assessment activities along with other candidates

References

Written statements about an applicant from an independent source, usually the current or previous employer

Referees

The people who write employment references, may be asked to confirm the strengths and suitability of an applicant

Internal Recruitment

Refers to the filling of job vacancies from within the business

Existing employees are selected rather than employing someone from outside

External Recruitment

Refers to the filling of job vacancies with candidates from outside the business

Advantages of Internal Recruitment

Cost effective - cheaper and quicker to recruit from within the organisation as suitable candidates may be readily available

Less down-time - internal candidates are already familiar with how the business operates and workplace culture

Less risk - recruiting internally might ensure that the job is filled with a more suitable candidate

Motivational - internal recruitment can serve as a form of motivation as it is an opportunity for promotion. it can create employee loyalty and commitment to the business

Disadvantages of internal recruitment

Fewer applicants - limits the number of potential applicants that could possibly be better

Less creativity - new applicants could bring in new ideas to the business

Time consuming - hiring an internal candidate leads to another vacancy within the organisation needing to be filled

Internal politics - resentment and conflict could arise amongst workers who didn’t get the job

Advantages of external recruitment

More creativity - people hired from outside of the organization can bring in new ideas and creative ways of thinking. Can bring in new insights as to how a rival business could have done it

Wider range of experiences - external recruits might be more qualified or more suitable than the internal candidates.

Larger pool of applicants - increased chance of finding their ideal person for the job

Disadvantages of external recruitment

Greater degree of uncertainty - managers take a risk when hiring external recruits as they don’t really know the candidate, they might not even fit in the corporate culture

Time consuming - the lengthy process of advertising, shortlisting, interviewing and checking reference takes up time

Expensive - expensive to advertise and opportunity cost of management time during the recruitment process

Training

The process of increasing the knowledge and skills of an employee for doing a particular job. It seeks to improve the job performance and work behaviour of those trained

Reasons to train employees

• To introduce new staff to the business

• To provide workers with the skills to do their jobs

• To create a flexible workforce

• To attract good quality applicants

• To provide workers with increased opportunities for personal growth

• To improve worker’s skills and knowledge to make them more efficient

• To prepare staff for changes

• To prepare workers for promotion

Induction training

Type of training aimed at introducing new employees to the organization

Purpose is to help new recruits feel confident and supported in their new job

Ensures that new employees are familiar with the procedures or codes of behaviour required to carry out their duties

Can also help new recruits to integrate into the corporate culture of the organization

Typical Induction Training Activities

Information about the firm - History, Mission and vision, how it is organised

Tour of site to help workers find their way around

Conditions of employment explained

Health and safety and fire training

Introduced to new colleagues and key personnel

Learning about the role of the job

Training in the skills required to do the job

Advantages of induction training

Establishes clear expectations and good working habits from the start

Helps new recruits to understand the corporate culture of the organisation

By settling in quicker, new recruits can contribute to the organization more promptly

Morale is boosted as new staff feel welcome and are more confident + competent in their new jobs

Disadvantages of induction training

Planning, delivering, and overseeing an _____ can be time consuming

Trainers cannot carry out their other duties as they are involved in providing induction

Information overload is counter-productive for new staff who have to absorb so much information

The length of ____ programmes can be very long, especially in large and disparate organizations

On-the-job training

Training that is carried out whilst in the immediate workplace

Often delivered by a more experience or senior member of staff

Often involves “Learning by doing”

Could include: demonstrating, instruction, shadowing, monitoring, mentoring/coaching

Advantages of on-the-job training

Can be relatively cheap as the firm uses in-house specialists to run and facilitate the training

Relevant as the training targeted at issues directly to firm’s needs

Fewer disruptions to the firm’s daily operations

Can help to develop professional relationships and collegiality at work since team working is involved

The location is convenient for workers and trainers, they don’t have to go off-site

Disadvantages of on-the-job training

Trainees may pick up bad working practices from the trainer

Internal trainers may lack the most up-to-date training experience and skills

Trainers will not be able to do their own work whilst facilitating the training. Means _____ training can be more expensive than expected

Labour productivity is intially lower as workers undergo the process of learning new skills and need time to develop

Off-the-job training

Training carried out, away from the immediate workplace. Can either be delivered by internal trainers or outsourced providers. Can take place on-site or at outside conference/training centres

Workers sometimes may take time away from their jobs to complete the training, or may do it in their own time. May be asked to cascade what they learnt to other colleagues

Can be face-to-face, online synchronous, or online self-pace

Can include:

• Classroom lectures/discussions

• Audio-Visual

• Simulations

• Case Studies

• Role playing

• Assignments

Advantages of off-the-job training

Experts are used to provide the training

Wide range of training courses can be provided

There are no distractions from colleagues and workers as the training is usually conducted off-site

Networking can take place

Morale is boosted as new staff feel welcome and are more confident + competent in their new job roles

Disadvantages of off-the-job training

Potential loss of productivity

Hiring a suitable venue and specialist trainers can be very expensive, especially with transportation and accommodation costs

It is debateable whether all the skills and knowledge learnt are relevent and therefore transferable to the organisation

Finding the time for staff to cascade the information and knowledge from the training course can be difficult

The length of an induction programme can be very long

Appraisal

Formal assessment of an employee’s performance in fulfilling their job based on the tasks and responsibilities set out in their job description

• Usually carried out in annual cycles

• Often carried out by line managers for their subordinates

• Appraisal meetings take place at points throughout the cycle

• A written record is usually kept

• Can also be referred to as Performance Management

Aims of Appraisals

• To improve performance by setting “stretching” goals

• To give opportunity to provide feedback

• As the basis for bonus/pay increases

• To identify performance gaps

• To identify training/development needs

• To identify candidates for promotion/demotion

Appraisal Meetings

Take place with an employee and their line manager

Might take place at the beginning during a cycle (formative) and at the end of a cycle (summative)

Discussion Points

• Review previous performance (strengths and weaknesses)

• Target setting

• Support needs

• Planning strategies

• Progress review

Appraisal Documentation

Businesses often design their own bespoke templates to accompany their appraisal process

Actions following an unsatisfactory summative appraisal

Issue an advisory letter

Provide advice/support/training

Closer monitoring

Dismissal (eventually if needed)

Appraisal Methods

Formative

Summative

360º Feedback

Self Appraisal

Formative Appraisal

Aim is to provide feedback on their performance

Aim to:

• monitor the learning and performance of employees

• help employees identify their strengths and weaknesses

• help managers to recognise areas where staff are struggling to provide coaching/mentoring/training in order to help employees improve

Generally low stakes and supportive

Summative Appraisal

Aim is to evaluate/judge employee performance at the end of an appraisal cycle by comparing it against set goals or standards

• Often a written summary of the workers acheivements/performance

• May include some recommendations for improvements

• Can be used to inform decisions regarding progression and pay rise

Often high stakes, with rewards or sanctions based on the results

Self Appraisal

Involves employees appraising themselves based on a set of pre-determined criteria

Employees are expected to be honest about their strengths and weaknesses

They also need to set realistic targets for improvement

This then may be compared with their line managers assessment of their performance as a basis for discussion

360º Feedback

A process through which feedback is collected from an employee’s subordinates, colleagues, supervisor(s), or even suppliers/customers

Opinions and feedback comments about the employee’s performance are usually obtained by the use of questionnaires or interviews

Advantage of appraisals

Used to set targets, leading to positive changes and professional development of employees

Allow managers to objectively praise staff on their strengths and for their contributions in the workplace

Managers can use ______ to provide constructive feedback to employees, which enables staff to focus on areas for improvement

Can be a useful way of getting valuable feedback from employees to help the organization adapt and improve

Managers often aggregate the findings of _____ to identify common strengths and areas in need of development. Allows training and development needs to be better planned for the organization

Can be used as part of the process to determine levels of pay. Can be done by looking at different tasks, responsibilities, skills, qualifications, and challenges. Allows the business to objectively reward more demanding roles with higher rates of pay

Disadvantages of appraisals

Time consuming to conduct properly, so are costly

Confidential feedback must be given and follow-up action requires funding and monitoring if the process is purposeful

Can be rather subjective as perceptions and relationships at work can interfere with the process

Employees may get offended by some of the feedback comments, especially about weakenesses

Many appraisers lack the skills, experience or confidence to carry out appraisals effectively. Diminishes the credibility of the process and the feedback

Employees can experience unnecessary anxiety and stress if the appraisal process is directly linked to pay

Salary

Financial rewards set at a fixed annual rate but paid on a regular basis.

Wages - Time rates

Determined based on per hour, per week or per month

Wages - Piece rates

Paid based on output

Commission

Workers are paid based on a % proportion of the sales that they make. They often receive a basic salary in addition to ensure their physiological needs are met

Profit related pay

The situation in which the pay of employees is related to the profit made by the employer. 

• Higher profit = Higher Pay

Performance related pay

Financial reward for workers based on personal performance

Employee Share ownership Schemes

Workers, managers, directors are either given shares in the company or sold then at discounted rates. This enables them to have a direct stake in the success of the business

Fringe Benefits

Benefits with financial value Eg. gym memberships, insurance

Job enrichment

Motivational technique that occurs when a job is given additional tasks that are challenging and are usually done by managers. Hence workers have greater autonomy and authority and more interesting work

Job rotation

When employees are regularly rotated into different positions in an organisation, which allows the employees to gain experience and acquire new skills.

Job enlargement

Technique of job design whereby many tasks associated with a job are officially added to the job description. The additional tasks are horizontal in terms of skill and difficulty level.

Empowerment

Involves granting workers the authority to be in charge of their own jobs and to execute their own ideas to solve business problems. Hence, workers have some autonomy in decision-making so can decide for themselves the best way to deal with a task or issue.

(Non Financial Reward)

Purpose/Opportunity to make a difference

Some employees are altruistic and see the purpose of work being to make a positive change in other people’s lives.

Examples of jobs where there is an opportunity to make a difference might be teachers, nurses, doctors, social workers, charity workers etc.

(Non Financial Reward)

Teamwork

Involves organising the business in a way that allows employees to work collaboratively with each other and feel a sense of belonging within a group