Download unit 2.5 Motivation[1].

Motivation
Unit 2.5
IB Specification
 Understand/identify motivation theory
 Taylor, Mayo, Maslow, McGregor, Herzberg, McClelland
 Analyze the intrinsic and extrinsic needs to be
satisfied at work

What are the rewards that motivate employees
 Financial
vs. non financial
 Apply content theory to given situations
 Evaluate alternative financial reward and non-
financial reward packages

Impact of packages on job satisfaction, motivation, and
productivity
Motivation
 Is the result of internal or external processes that
arouse enthusiasm or persistence to pursue a
certain course of action
 Refers to the forces which cause people to
behave in certain ways
Motivation
 Job Performance is a function of ability and
motivation
 Provides purpose and enhances passion


it enables performance
Decreases employee turnover and absenteeism
 Extrinsic vs Intrinsic
 Monetary vs Non monetary
States of Motivation
Positive attitude
High Energy
Low Energy
Negative attitude
 High productivity
 High Intensity
 Energy with tension
 Counter productive
 High Intensity
 Tension with energy
 Low intensity
 Burnout
 Well intended, but little
 Anxiety
productivity
 Limited energy, limited
tension
 Tension without energy
Financial/Monetary Motivation
 Methods of Payment

Wages
 Time

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and piece rates
Salary
Commission
Performance related pay (PRP)
Employee share ownership
Fringe payments
Non-Financial/Non- Monetary
Motivation
 Job Enrichment
 Job enlargement
 Empowerment
 Teamwork
 Positive reinforcement
 effective discipline and punishment
 fair treatment of employees
 satisfy employee needs
 work-related goals
Motivation Theory
 Taylor
 Mayo
 Maslow
 McGregor
 Herzberg
 McClelland
Taylor
 Worker is motivated by self interest
 Conducted ‘time and motion’ studies

each worker was timed when performing a task,
 this

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provided the basis for the worker’s level of output per day
if it took a worker 2 minutes to perform a task, then this could be
done 30 times per hour, and 240 times in an 8-hour day#
If the worker completed more than his designated number of
tasks per day, then he would be eligible for a monetary bonus.
F.W. Taylor
(1856-1915)
Taylor was a mechanical
engineer who sought to
improve industrial efficiency.
Taylor is regarded as the
father of scientific
management, and was one of
the first management
consultants
Principles of scientific management (1911)
Taylor's scientific management
consisted of four principles:
Replace rule-of-thumb work methods
with methods based on a scientific study
of the tasks.
Scientifically select, train, and develop
each employee rather than passively
leaving them to train themselves.
Provide "Detailed instruction and supervision of each
worker in the performance of that worker's discrete task“
Divide work nearly equally between managers and workers,
so that the managers apply scientific management
principles to planning the work and the workers actually
perform the tasks.
Taylor deduced that ‘money
is the only motivator’
Taylor introduced
differentiated piece
rate system,
fatigue study,
division of labor,
standardization of
work.
Taylor’s ideas were integrated into Henry Ford’s mass production of the
Model T
McDonald’s Corp. uses Taylor
principles of manufacturing rigor
and consistency to the restaurant
business. Computerization has
improved efficiency and given
managers more direct control.
the catering procedures require
cooking temperature to be same
throughout the world
training is also the same
inspection is strict, unwavering,
consistent
wages are paid on differentiated piece rate plus
wage system
Taylor

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Establish specific work targets
Pay workers for task/goals met
System before the man
Provide regular feedback
believed that efficiency and discipline were the two
greatest features of a good manager and a good
workforce
 Pushed labour costs lower
 Management now a ‘science’


There was ‘one right way’ for work performance
Standards and standard operating procedures
Taylor
Problems:
Worker specialization, repetition, little skill required
less leverage in negotiations with employer
Lenin applied Taylor theory to Russian industry
power rests with management
centralization
discipline and control of worker
In 1911 US Congress passed law banning use of
stopwatches in the work place
Assumed humans are like machines
that workers satisfied only by money
He failed to recognise the high level of alienation and low
levels of morale and motivation that this system produces
in the workforce.
Mayo
 Hawthorne Studies

Attention by manager is a motivator
 Work is a group activity

Sense of belonging and recognition more
important than the physical conditions of the job
 Informal groups have much power
 Manager communication is strong motivator
Abraham Maslow
1908 – 1970
American psychologist
His needs hierarchy was
not developed until late
1960’s and was taught
in most B-schools by
1972
Maslow’s Hierarchy of Needs
Self-Actualization Needs
Esteem Needs
Social Needs
Safety or Security Needs
Physiological Needs
Maslow
 Once a need is satisfied it is no longer a
motivating factor
 Once a need is satisfied the next level will
emerge as the depressed need seeking to be
satisfied
 Lower level needs are finite but hihger level
needs are infinite
 Levels are interdependent and overlapping
 There is not necessarily a direct cause and effect
relationship between needs and behavior
 Measurement of satisfaction is not possible
Problems with Maslow Theory
1.Not everyone has the same needs
2. Identification of worker’s need is difficult
3. Money is necessary to satisfy the physical
needs AND important for esteem and status
4. Self actualization needs are never
permanently achieved
Herzberg:
Two Factor Motivation Theory
Hygiene factors
With = worker is non-dissatisfied
Without = worker is dissatisfied
Money/pay
Company policies
working conditions
Security
status
Motivators
Achievement, recognition, growth, interest in job
Herzberg
 Motivator factors are intrinsic in nature
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Improving motivator factors increases job satisfaction
 Recognition
 Responsibility
Personal growth
 Hygiene factors are extrinsic in nature

Improving hygiene factors decreases job
dissatisfaction
 Working conditions
 Coworker relations
 Supervisor quality
Problems with Herzberg Theory
•Insistent perception about money: Taylor
• How money moves to the job, worker, productivity
• its ability to motivate in the more repetitive, boring jobs
• Job enrichment is expensive
• Job improvement difficult in recession
• Relying on what people say
• defining satisfied and dissatisfied
• Some employees don’t want job enrichment
• prefer the money
• Ignores benefits and wisdom of teams
• synergistic effect of teams
• increased satisfaction
• increased productivity
Douglas McGregor, 1906 – 1964
Theory X Theory Y (1960)
McGregor
 Theory X

The average human has an inherent dislike for work
and will avoid it if he can
 workers
must be controlled and threatened
 average worker prefers to be directed, dislikes
responsibility, and desires security
 Theory Y

The worker likes his job and chooses to be there
 commitment
to organization, accepts responsibility
McGregor
Theory X— Managers:
Utilize Autocratic approach
Expect less intrinsic motivation
Use extrinsic motivation; punishment as discipline
Theory Y — Managers:
Enable, encourage intrinsic motivation
Have positive approach; fill the emotional tank
Utilize more democratic and decentralized approach
Most firms behave according to
Theory X at Shop Floor Level
and Theory Y at Management level
David McClelland 1917-1998
Yale University PhD
Professor at Wesleyan and Harvard
McClelland’s Acquired Needs
Theory
 Individual needs are acquired over time and are
shaped by life experiences.
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Need to Achieve
Need for Affiliation
Need for power
 Training programs can modify/shape a person’s
need profile
 Used the Thematic Apperception Test

A fairly reliable test for the 3 needs
McClelland nAch
People with high nAch seek to excel
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Risk vs. Outcome vs. Success
 Tend
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to avoid both low risk AND high risk endeavors
Avoid low risk b/c easy success is not achievement
Avoid high risk b/c of chance of failure
Prefer to work alone or with other high achievers
Goals need to be reachable/reasonable
nAch can be taught
Feedback necessary for improvement
 Money
is a form of feedback but not a motivator for
person with high nAch
McClelland nAff
 People with high nAff need harmonious
relationships
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Need to be accepted by others
Tend to conform to group norms
Prefer work that provides personal interaction
Perform well in customer service and sales
situations
McClelland nP
 Managers with high need for institutional power
will be more effective
 Personal power

Need to direct others
 This
is perceived as undesirable
 Institutional power

Social power
 Seeks
to organize efforts of others to further goals of
organization
McClelland
 Organizations with more employees with high
need to achieve will be more successful
 these workers are constantly thinking of ways
to improve
 There
has to be a better way
generally interested in Herzberg motivators
 like job specific feedback rather than
attitudinal feedback
 those with high nAch not usually the best leaders
 job oriented and work to capacity

 have
hard time with those who do not
Peter Drucker
1909-2005
 The pre-eminent modern management thinker
 Emphasized that money is most important
reward incentive
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He believed money in fact did motivate
Investment banking/banking operates on this model
 Believed management and business have a
strong social responsibility
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Business managers have an obligation to take
responsibility for the common good