Business - Motivation Theories

Maslow’s Hierarchy of Needs: Definition

Theory: Humans are motivated by a hierarchy of needs, progressing from basic (physiological, safety) to growth needs (esteem, self-actualization).

Example (Google):

• Free meals (Physiological)

• Job security (Safety)

• Team exercises (Love/Belonging)

• Internal promotions (Esteem)

• Training programs (Self-Actualization)

Maslow’s Hierarchy of Needs: Basic Needs

• Basic Needs:

  • Physiological (food, shelter), Safety (job security, health), Love/Belonging (team activities, social connections).

  • Once met, they no longer drive motivation.

• not having basic needs reduces motivation, but having basic needs doesn’t fuel motivation

Maslow’s Hierarchy of Needs: Growth Needs

• Growth Needs:

  • Esteem (recognition, confidence), Self-Actualization (creativity, problem-solving).

  • Continuously pursued.

Maslow’s Hierarchy of Needs: Strengths & Weaknesses

Strengths:

• Provides a structured framework for understanding human motivation.

Weaknesses:

• Individuals may pursue multiple needs simultaneously.

• Ignores behaviors like enduring low pay for future benefits.

Herzberg’s Two-Factor Theory: Definition

Theory: Job satisfaction and dissatisfaction stem from two distinct sets of factors:

• Motivators: Lead to satisfaction (e.g., achievement, recognition, growth)

• Hygiene Factors: Prevent dissatisfaction (e.g., salary, work conditions, job security)

Herzberg’s Two-Factor Theory: Motivation Factors

Motivators: Lead to satisfaction (e.g., achievement, recognition, growth)

Herzberg’s Two-Factor Theory: Hygiene Factors

Hygiene Factors: Prevent dissatisfaction (e.g., salary, work conditions, job security)

Herzberg’s Two-Factor Theory: Key Points & Problems

Key Points:

• Improving hygiene factors prevents dissatisfaction but does not motivate.

• Motivators must be present to drive engagement.

Problems:

• Does not address how to apply the theory to already demotivated workers.

Proof of Poor Motivation:

• Low productivity, strikes, complaints, high turnover.

Taylor’s Scientific Management: Definition

Theory: Maximizes efficiency through standardized tasks, financial incentives, and strict division of labor.

Taylor’s Scientific Management: Assumptions

• Assumptions:

  1. Workers are primarily motivated by money (piece-rate pay).

  2. Workers lack knowledge; managers must optimize workflows.

  3. Distinct roles: managers plan, workers execute.

Taylor’s Scientific Management: Key Concepts & Implications

Key Concepts:

• Piece-rate: Payment per unit produced.

• Soldiering: Deliberate underworking (natural/systematic).

  • Solved via scientific task analysis, training, and performance-based pay.

Implications:

• Focuses on efficiency over creativity.

• Criticized for dehumanizing work.

Financial Motivation: Types

Wages	Time-based or piece-rate pay	Overtime earnings	Quantity > quality focus	Manufacturing, retail
Salary	Fixed annual payment	Stable income	No extra pay for overtime	Office jobs, professional services
Commission	% of sales revenue	Encourages sales performance	Unstable income	Real estate, insurance
Performance-Related Pay	Bonuses for meeting targets	Rewards high achievers	Unhealthy competition	Sales, education
Profit-Related Pay	Pay linked to company profits	Aligns employee-company goals	Affected by external factors	SMEs, private sector
Employee Share Ownership	Shares in the company	Long-term loyalty	Risk if share value drops	Startups, corporations (e.g., Google)
Fringe Benefits	Non-cash rewards (health insurance, cars)	Enhances job satisfaction	Costly for employers	Corporate roles, tech firms

Non-Financial Motivation: Types

Type	Definition	Pros	Cons	Application
Job Enrichment	Adding challenging/meaningful tasks	Boosts intrinsic motivation	Not all want more responsibility	IT, healthcare, engineering
Job Rotation	Shifting roles to reduce monotony	Skill diversification	Short-term efficiency loss	Manufacturing, hospitality
Job Enlargement	Expanding tasks at the same level	Reduces boredom	Risk of overload	Administrative roles
Empowerment	Granting autonomy/decision-making power	Increases confidence	Requires training	NGOs, customer service
Teamwork	Collaborative goal-setting	Encourages cooperation	Potential conflicts	Healthcare, project-based industries
Purpose	Connecting work to meaningful impact	Long-term engagement	Hard to measure	Non-profits, education