2.4 Motivation and Demotivation

Motivation

The intrinsic and extrinsic factors that stimulate people to take action in order to achieve a goal.

Intrinsic motivation

Motivation that comes from personal satisfaction gained from completing a task.

Extrinsic motivation

Motivation that comes from external rewards such as pay, bonuses, or benefits.

Scientific management

A theory suggesting that productivity increases when work is broken into specialised tasks and workers are paid according to output.

Division of labour

Breaking a job into specialised tasks so each worker performs a specific role.

Piece-rate payment system

A payment method where workers are paid based on the number of units they produce.

Maslow's hierarchy of needs

A motivation theory that suggests people have five levels of needs (physiological, safety, love/belonging, esteem, self-actualisation) which must generally be satisfied in order, with lower-level needs met before higher-level needs can motivate behaviour.

Physiological needs

Basic needs for survival such as food, shelter and income.

Safety needs

The need for security, job stability and safe working conditions.

Social needs

The need for belonging, friendship and teamwork.

Esteem needs

The need for recognition, status and respect from others.

Self-actualisation

Achieving one's full potential through challenging and fulfilling work.

Two-factor theory

A motivation theory that separates factors into hygiene factors (which prevent dissatisfaction, e.g. pay and conditions) and motivators (which create satisfaction, e.g. achievement and responsibility), showing that removing dissatisfaction does not necessarily motivate employees.

Motivators

Factors that increase job satisfaction and motivation (e.g. achievement, recognition, responsibility).

Hygiene factors

Factors that prevent dissatisfaction but do not necessarily motivate employees (e.g. pay, working conditions).

Salary

A fixed annual payment usually given to professional or managerial employees.

Wages

Payment for labour based on time worked or units produced.

Time rate

A wage system where employees are paid according to the time they work.

Piece rate

A wage system where employees are paid according to the number of items produced.

Commission

Payment based on the value of sales made by an employee.

Performance-related pay (PRP)

Pay linked to an employee's performance against targets.

Profit-related pay

A system where employees receive a share of the company's profits.

Employee share ownership scheme

A scheme where employees receive shares in the company.

Fringe benefits

Non-cash rewards such as company cars, pensions or private health insurance.

Job enrichment

Increasing the responsibility and challenge of a job to make it more rewarding.

Job enlargement

Increasing the number of tasks an employee performs to reduce boredom.

Job rotation

Moving employees between different tasks or jobs to increase variety.

Empowerment

Giving employees greater responsibility and authority to make decisions.

Team working

Organising employees into groups that work together to complete tasks.

Purpose

Giving employees a sense that their work contributes to a meaningful goal.

Training

The process of improving employees' skills and knowledge to improve performance.

On-the-job training

Training that takes place in the workplace while the employee performs their job.

Off-the-job training

Training that takes place away from the workplace, such as courses or workshops.

Induction training

Training given to new employees to introduce them to the organisation and their role.

Cognitive training

Training designed to improve mental skills such as problem solving and reasoning.

Behavioural training

Training that aims to change employee behaviour and improve interpersonal skills (e.g. leadership, teamwork).

McClelland’s acquired needs theory

A motivation theory stating that individuals are driven by three learned needs, achievement, power, and affiliation, which vary by person and influence workplace behaviour.

Achievement

The need to succeed, take on challenges, and receive feedback on performance.

Power

The need to control, influence, or have authority over others.

Affiliation

The need for social relationships, belonging, and teamwork.

Deci and Ryan’s self-determination theory

A motivation theory that emphasises intrinsic motivation, suggesting people are motivated by autonomy, competence, and relatedness rather than external rewards.

Autonomy

The need for independence and control over one’s work.

Competence

The need to feel capable, skilled, and able to achieve.

Relatedness

The need for connection and positive relationships with others.

Equity theory

A motivation theory stating that employees are motivated by fairness, comparing their inputs (effort) and outcomes (rewards) with others.

Inputs

The effort, skills, and contributions an employee puts into a job.

Outcomes

The rewards an employee receives, such as pay, recognition, or benefits.

Expectancy theory

A motivation theory suggesting employees are motivated when they believe effort will lead to good performance and rewards they value

Expectancy

Belief that effort will lead to better performance.

Instrumentality

Belief that performance will lead to rewards.

Valence

The value an individual places on the reward.

Labour Turnover

The percentage of workers leaving the business in a period of time.

Labour Turnover Formula

Labour turnover rate = number of employees leaving/number of employees in the business x 100

Avoidable causes of employees leaving

Dissatisfaction with compensation
Poor physical working environment
Toxic work culture
Job dissatisfaction
Human resources policies

Unavoidable causes of employees leaving

Family circumstances
Physical reasons
Retirement
Dismissal
Redundancy

Dismissal

When a business releases an employee from their job, usually because of poor work performance or misconduct.

Redundancy

When the job someone is doing is no longer required, and the business eliminates the position.

Appraisal

An assessment of an employee's performance; can take many forms.

Role of appraisal

help improve the employee’s performance
provide feedback on performance
identify training needs
improve motivation and job satisfaction
identify potential for promotion
decide on any salary increase

Formative appraisal

The continuous appraisal of employees so that they can improve their performance.

Summative Appraisal

The formal, documented appraisal of an employee, which usually takes place at a fixed time during the year.

360-degree feedback

A process in which an employee receives feedback from all of the people with whom they come into contact.

Self Appraisal

A type of appraisal where an employee evaluates their own performance; can be part of formative or summative assessment.

Recruitment

The process of seeking, finding and hiring people for a position in an organisation.

Six steps of recruitment

Job analysis
Job description
Person specification
Job evaluation
Job advertisement
Selection

Job analysis

The process of studying a job to identify the tasks, skills, training, and responsibilities required.

Job description

A document outlining the details of a job, including duties, responsibilities, working conditions, and performance expectations.

Person specification

A profile of the ideal candidate, listing required qualifications, skills, experience, and personal qualities.

Job evaluation

The process of determining the value of a job compared to others to set appropriate pay and rewards.

Job advertisement

The method used to inform potential candidates about a job vacancy, either internally or externally.

Selection

The process of choosing the most suitable candidate for the job from the applicants.

Internal Recruitment

Where a job vacancy is filled from within the business by promoting and retraining an existing employee rather than hiring a person from outside the business.

External Recruitment

When a business fills a job vacancy by recruiting an employee from outside the organisation, usually because the company needs certain skills that it lacks in its current employees.