Chapter 6 : Motivating Employees

motivation

the reason why employees want tot work hard for the business

why people work?

• money - to pay for necessities

• security - knowing your job and pay are safe, you are less likely to lose your job

• social needs - feel that you belong to something

• job satisfaction - enjoyment is derived from the feeling that you have done a good job

benefits of a well motivated workforce

• high output per worker

• willingness to accept change - willing to try different production methods

• low labor turnover - a loyal workforce

• low rates of absenteeism

Abraham Maslow’s hierarchy

a motivational theory that explains human motivation and behavior based on a hierarchy of needs. Maslow proposed that people are motivated to fulfill certain needs, and these needs are arranged in a hierarchical order, with lower-level needs needing to be satisfied before higher-level needs. Once a need is satisfied, it no longer serves as a primary motivator, and individuals are motivated to fulfill the next higher-level need.

advantage of Maslow’s theory

• money is not the only motivator

disadvantage of Maslow’s theory

• each level has to be achieved before moving onto the next

• managers need to know what level each employee is in

• some levels don’t exist in some people’s lives

Fredrick Taylor

He believed that money was the only motivator, and that people work for self gain. The more you produce, the more you earn. Payment was given based on goods produced.

advantage of Taylor’s theory

it is very simplistic

disadvantage of Taylor’s theory

• people were treated as machines

• quality will be compromised as they rush to get more pay

Fredrick Herzberg’s Motivational theory

based on the idea that there are two sets of factors that influence motivation and job satisfaction in the workplace.

1. Hygiene Factors:

   • These are factors related to the work environment and conditions, such as salary, company policies, supervision, working conditions, interpersonal relationships, and job security.

2. Motivational Factors:

   • Motivational factors are related to the nature of the work itself and how it contributes to personal growth, achievement, recognition, responsibility, and advancement.

wages

payment for work, usually paid weekly.

advantage of wages

• if you need money in the middle of the month you can get it

• they are paid for overtime

disadvantage of wages

• not easy to calculate, need clerks to do the calculation

• not guaranteed to be paid at the end of the month

time rate

amount paid to an employee for one hour of work

advantage of time rate

you can decide how many hours you want to work

disadvantage of time rate

• need a clock in and out system to check how many hours each employee has worked for

• good and bad employees are paid the same

piece rate

payment based of the number of items produced

advantage of piece rate

makes employees produce more output

disadvantage of piece rate

• quality compromised

• good employees would be paid less than bad ones

• incase machine breaks down, employee will get paid less

salary

payment for work usually paid monthly

advantage of salary

• easy to calculate

• employees are able to get all the money at the end of the month

disadvantage of salary

• if you need money in the middle of the month you will not get it

• not paid for overtime

bonus

additional amount of payment above basic pay as a reward

advantage of bonuses

encourages good performance

disadvantage of bonuses

• employees get demotivated if not given a bonus

• brings rivalry between staff

commission

payment relating to the number of sales made

advantage of commission

• increases company sales

disadvantage of commission

• quite stressful to meet targets

• causes customers to impulse buy

• quite annoying to customers

profit sharing

whereby a proportion of the company’s profit is paid out to employees

advantage of profit sharing

it encourages employees to work harder

disadvantage of profit sharing

• if there is no profit, they get nothing

• it is performance based could be unfair

fringe benefits

they are non financial benefits given to employees along with their salary

• company vehicle

• discounts on the business’s products

• healthcare paid for

• children’s education fees paid

• pension paid for by business

• free trips abroad

job satisfaction

enjoyment derived from feeling that you have done a good job

ways to increase job satisfaction

• job rotation

• job enrichment

• autonomous work groups or teamworking

• training

• opportunities for promotion

job rotation

involves workers swapping around and doing each specific task for only a limited time and then changing around again

Exposes staff to new challenges and experiences which can increase motivation, understanding and skill.

However, it does not make the tasks more interesting.

job enrichment

involves looking at jobs and adding tasks that require more skill or responsibility. Staff feel more motivated and engaged, leading to improved productivity.

autonomous working groups or team working

team working involves using groups of worker and allocating specific tasks and responsibilities. Teamwork can increase motivation in the workplace as each member of staff has a role and a shared goal

training

process of improving worker’s skills. This can make employees feel valued, more productive and likely to remain with the business

promotion

advancement of an employee in an organization, for example to a high managerial level. Employees offered promotion will feel recognized, have a higher status and will be given more challenging tasks/responsibilities to perform