2.4 Motivation and Demotivation

Motivation in the workplace

The desire, effort, and passion to achieve something

Intrinsic Motivation

Motivation which comes from the satisfaction of carrying out a particular activity

Extrinsic Motivation

Motivation that is derived from external factors

Hygiene Factors (Herzberg)

These are aspects of work that do not motivate, but must be met to prevent dissatisfaction

Motivators (Herzberg)

These are factors that can lead to the psychological growth of workers and hence increase satisfaction and performance at work

Financial Rewards

Methods that businesses can use to motivate workers by using some form of monetary payment

Salary

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

Wages

Reward for labour services, usually expressed as an hourly rate (time) or as a measurable quantity of output (piece rate)

Comission

Commission pays workers a percentage of sales or output combined

Performance-related pay

PRP rewards those employees (as individuals, teams or whole workforces) who meet certain goals

Profit-related pay

Linking pay to the level of profit in the firm

Employee share ownership schemes

Rewards workers, managers and directors by giving them shares in the company.

Fringe Payments

Benefits to an employee in addition to their wages or salary

Non-Financial Rewards

Non-monetary factors that motivate people by offering psychological and intangible benefits

Job enrichment

Giving workers more complex and challenging tasks to exploit their potential

Job rotation

Involves workers performing different tasks at the same level of complexity in a systematic way

Job enlargement

Broadening the number of tasks that an employee performs

Empowerment

Developing the potential of workers or teams to achieve the best they can

Teamwork

Occurs when employees work with fellow colleagues