business - employee motivation

Main financial incentives of Frederick Taylor – Scientific Management

• Main financial incentive: Piece-rate pay

• Believed money is the key motivator.

• Suggested paying workers per item they produce (piece rate) to boost productivity.

• Assumes workers are only motivated by financial gain.

• E.g. the more units you make, the more money you earn.

• Taylor = Money motivates, use piece rate to increase efficiency.

Main financial incentives of Elton Mayo – Human Relations Theory

• Not focused on financial incentives.

• Mayo found that social factors (teamwork, feeling valued, and attention from management) are more motivating than money.

• However, a basic fair wage is still assumed to be necessary.

• Mayo = Motivation through social needs, not just pay.

Main financial incentives of Abraham Maslow – Hierarchy of Needs

• Money is linked to the bottom two levels:

  • Physiological needs (e.g. food, shelter – satisfied by a wage)

  • Safety needs (e.g. job security, stable income)

• Once those are met, non-financial motivators become more important (belonging, esteem, self-actualisation).

• Maslow = Money matters early on, but other needs take over.

Main financial incentives of Frederick Herzberg – Two-Factor Theory

• Pay is a hygiene factor, not a true motivator.

• Hygiene factors (e.g. salary, working conditions) prevent dissatisfaction but don’t create long-term motivation.

• True motivation comes from motivators like recognition, achievement, and responsibility.

• Herzberg = Pay stops people from being unhappy, but doesn’t truly motivate them.

Advantages of the main financial incentives of Frederick Taylor – Scientific Management

• Can increase productivity quickly (especially in manual/repetitive jobs).

• Easy to measure output – suits mass production.

• Simple pay structure (piece rate) motivates faster work.

Disadvantages of the main financial incentives of Frederick Taylor – Scientific Management

• Can lead to poor quality if workers rush.

• Workers may feel like machines, leading to low morale.

• Doesn’t account for social or psychological needs.

• Not effective for creative or team-based jobs

Advantages of the main financial incentives of Elton Mayo – Human Relations Theory

• Recognises importance of employee well-being and communication.

• Encourages teamwork and better relationships at work.

• Increases job satisfaction and morale.

Disdvantages of the main financial incentives of Elton Mayo – Human Relations Theory

• Assumes all workers are motivated by social needs – not always true.

• Can be harder to implement – requires good management and communication.

• May not work well in highly individual roles.

Advantages of the main financial incentives of Abraham Maslow – Hierarchy of Needs

• Recognises different types of motivation – not just money.

• Helps businesses structure rewards and support (e.g. training for self-esteem).

• Encourages long-term employee development.

Disavantages of the main financial incentives of Abraham Maslow – Hierarchy of Needs

• People don’t always follow the hierarchy in order.

• Hard to measure where employees are on the hierarchy.

• May not apply to every culture or individual equally.

Advantages of the main financial incentives of Frederick Herzberg – Two-Factor Theory

• Focuses on both preventing dissatisfaction and creating positive motivation.

• Encourages businesses to enrich jobs (e.g. responsibility, recognition).

• Good for long-term motivation and staff retention.

Disadvantages of the main financial incentives of Frederick Herzberg – Two-Factor Theory

• Job enrichment can be costly or hard to apply in all roles.

• Some workers may still be motivated by pay, not just intrinsic factors.

• Not all hygiene factors can be fully controlled (e.g. management style).