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MOTIVATION
Motivation refers to the desire, internal need, effort and passion to achieve something. In organization,
motivation refers to getting someone to do something.
Benefits of increased motivation of workers:
Motivation is important in an organization as:
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The more motivated an employee is, the more productive he is, leading to increased revenue
It improves corporate image helping to attract customers and employees
It brings better relationship between management and employees
It results in lower absenteeism and turnover of staff
Poor motivation can result in:
1. High rate of absenteeism and labor turnover
2. Low productivity and low quality of output
3. Increased number of disciplinary problems and levels of conflict
Intrinsic / extrinsic motivation
Intrinsic motivation occurs when a person engages into an activity out of his own desire because he
finds the activity challenging or satisfying for the person.
Extrinsic motivation occurs when a person participates in an activity because of the benefits associated
with the activity. These rewards can be tangible (high salaries) or intangible such as recognition or
praise. Extrinsic motivation can also come in the form of threats such as avoiding punishment.
Theories of motivation: Motivation theories can be classified as content (needs) theories or
process theories.
Content theories:
Content theories of motivation explain the factors that motivate people. They answer the question:
What makes people to behave in a certain way? The theories include:
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Maslow Hierarchy of Needs
McGregor Theory X and Theory Y
Herzberg Two Factor Theory
Taylor’s scientific Management theory
Mayo ‘s human Relations theory(HL)
McClelland Needs theory(HL)
Process Theories:
Process theories explain the thinking processes that influence behavior. They answer the question: why
people behave in a certain way? They include:
1. Vroom’ Expectancy Theory (HL)
2. Adam’s Equity Theory (HL)
MASLOW HEIRARCHY OF NEEDS
Abraham Maslow, in 1943, put forward the theory that people are motivated by certain needs. These
needs consist of five types and levels which he calls the hierarchy of needs. Maslow argued that people
tend to satisfy their needs systematically, i.e. higher level needs cannot be address before lower level
needs are satisfied.
This can be illustrated as follows:
Physiological needs refer to the basic needs for survival such as food, clothing and shelter. At work, it
refers to the amount of money a person earns to meet these basic needs.
Security or safety needs refer to the feeling of safety, order and freedom from threats. In a work
situation, these needs will refer to job security, such as contract of work, sick leave, maternity leave ,
pension and protection from arbitrary actions.
Social needs also known as love and belonging needs refer to the human need to be accepted by others,
e.g. as part of a social group or family. At work, these needs include opportunities for interaction,
teamwork, absence of discrimination, a sense of belonging to the organization, social events, etc.
Esteem needs refer to the desires for recognition or esteem from others and self respect leading to a
feeling of confidence. At organization level, employees have a need to have their efforts recognized.
Promotion, job title (Head of department), training and development, opportunities to participate in
decision making are ways to satisfy these needs.
Self actualization is the highest level of Maslow’s hierarchy of needs. It refers to the needs for fulfillment
of personal potential, i.e. the best of oneself. Businesses can encourage this by providing opportunities
for personal development.
The theory is important to managers because
Firstly, it helps managers to clearly identify, in a simple context, the variety of workers needs that must
be satisfied if employees are to be motivated;
Secondly, workers would not be motivated by higher level needs if lower ones are not satisfied. If a
worker paid starvation wages is unlikely to be motivated by praise from managers.
Critics of Maslow’ theory
Levels of needs are difficult to measure
It is not a consistent form of behavior especially for many people. Freelance artist, professionals like
doctors, self employed do not fit this model of hierarchy.
There is no explanation of what motivates people once they have achieved self-realization.
Mc Gregor’s Theory X and Theory Y
Douglas Mc Gregor (1960) outlined two opposing management attitudes towards workers and their
effect these have on their motivation. He referred to managers as either Theory X or Theory Y managers.
Theory X managers assume that workers:
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are lazy and will try to avoid work as far as possible
lack ambition, dislike responsibility and prefer to be led
want security above all and would work mainly for money
must be forced, controlled and threatened with punishment to get them to work effectively
A theory X manager is basically authoritarian and sees his job as to direct and control the workers
Theory Y managers assume that worker:
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Enjoy work and in fact consider work as natural as play
Are ambitious ,will not only accept but also seek responsibility (if motivated)
Can gain job satisfaction and would work not just for money
Are capable of working independently (no need of control) and are capable of imagination to
solve problems
Such a manager sees his functions as to organize work and to create the right conditions so that all
workers can achieve their goals and organization’s goals.
McGgregor also suggest that there are possible behaviors between the two extremes.
HERZBERG’S TWO FACTOR THEORY
According to Frederick Herzberg’s theory (1959), there are two groups of factors which are important to
workers: hygiene factors and motivating factors.
Hygiene factors (mainly physical aspects)
Hygiene or maintenance factors contribute very little to motivate workers but prevent dissatisfaction.
Workers can be de-motivated, if hygiene factors are absent or inadequate. These include:
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Adequate salary
Security such as job contracts, pension, leaves
Safe working conditions
Proper policies and procedures
Quality of supervision
Relations with colleagues, subordinates and supervisors
They are the basic requisites for the workers to work but more of these factors would not make them
work any harder. For example, higher wages may not lead to higher performance but workers’
performance would deteriorate if they feel that they are underpaid. The above can be compared to
hygienic food. It is the food that promotes good health and hygiene alone does not, but the absence of
hygiene can lead to ill-health
Motivators (mainly psychological aspects)
Motivating factors or satisfiers encourage personal development and pride. When they exist, motivating
factors create job satisfaction and high performance. They include:
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Challenging work
Responsibility
Opportunities for promotion and advancement
Recognition for good work
Sense of achievement
Motivators, therefore, increase job satisfaction and motivate workers to higher performance. They are
concerned with improving the nature and content of the job.
Importance of Herzberg’s theory
Herzberg’s theory allows managers to see clearly two simple categories of factors. They can, thus,
motivate workers by making the work rewarding and also ensure that hygiene factors are present so
that workers are not de-motivated.
Critics
The theory does not apply low-level worker because they lack education or ability for advancement.
where job enrichment and job empowerment are not a feature of the work.
Some employees may not want extra responsibility.
The theory ignores the role of team work in motivating the workforce.
Motivation in practice in the workplace: Financial and Non-financial
The main methods of financial payments
Wages:Piece rate
Under piece rate system, workers are paid for each item produced or sold, and is commonly used to pay
factory workers.
Employees have the incentive to work hard in order to maximize their income. However, quality may
suffer. Hence, there is a need for supervision and quality control. Workers may be de-motivated due to
external factors such as machinery breakdowns.
Time based payment system: wages and salaries
Wages are usually expressed as the hourly rate of labor and the vast majority of unskilled labor is paid
hourly wages. Wages can be paid on a daily or weekly rate. Those who earn time based wages are likely
to be paid overtime for extra hours worked over contracted time.
The advantage of using a wage system is that it is easily understood by the workers. However workers
are not compensated for their efforts and this may affect quality.
Salaries are set at a fixed annual rate but paid on a monthly basis. These are used where output or
productivity is not easy to measure. Most skilled workers above production level (technical,
administrative and management levels) are paid salaries. Salaried workers are not paid for extra hours.
Salaries help to improve a firm’s cash flow in that it is paid once in a month. However, it does not reward
those who are more efficient and productive.
Commission
Commission pays workers on a percentage of sales or output. It is often paid in addition to a low basic
salary. It is commonly used to pay salespeople and insurance agents.
It helps to meet the physiological needs of the employee in that the employee still gets a basic amount
even if he has not sold anything. Commission acts as a good incentive for employees to increase output.
However, it can lead to aggressive selling with little customer care. There is a lack of security in that total
remuneration of the employee fluctuates according to sales.
Profit related pay or profit sharing
This is calculated as a percentage (e.g. 1%) of annual profit and is paid as an annual bonus at the end of
the year. It is usually paid to managers but more firms are paying it to all staff (Wall-Mart).
It strengthens employee loyalty, foster team working, increase labor productivity and reduce conflicts.
However, the share of profits given to employees is often seen as very small. Also, individual effort is not
recognized as profit is usually shared equally.
Employee share ownership scheme is a form of profit related pay. Instead of paying cash to employees
are given shares in the company. Alternatively shares can be offered to employees at a discounted price.
Performance-related pay
This system rewards employees who meet certain goals or targets. It is common that the goals are
evaluated in appraisal meetings. There are a variety of ways of payment under this system.
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Loyalty bonus.This is paid to workers who have stayed with the firm for a certain length of time,
usually at the end of each year.
Pay rise.This is an increment in a person’s salary after reaching a target.
Contract gratuity.This is a payment to staff having completed their employment contract (e.g.
10% of annual salary).
Performance related pay create incentives for people to perform better. However, sometimes targets
can hard to achieve and it may cause stress,
Employee share ownership scheme
This involves paying a part of monthly salary in the form of shares at a discounted price. Workers are
motivated to work hard so as to raise the price of the share which they can sell later.
Fringe benefits or perks
These are benefits to employees in addition to his salary. Examples include subsidized meals, free
uniforms, housing allowance, private health insurance, staff discount, company cars.
Fringe benefits can increase employee loyalty and a sense of security. However, they can be expensive
to the firm.
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Non financial motivators or non monetary factors
These factors motivate people by offering psychological and intangible benefits and can be achieved by:
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Job enlargement (giving workers more variety in what they do)
Job rotation
Job enrichment (giving more complex and challenging task)
Job empowerment (delegating decision-making power to workers)
Team working
Job enlargement or horizontal loading
This involves giving an employee more work of a similar nature in order to motivate him. For example,
instead of a worker putting just putting wheels in a bicycle, he could be allowed to put the entire
product together. Job enlargement prevents boredom with one repetitive task. However, it reduces
efficiency associated with specialization.
Job rotation
This involves motivating by giving people different task of the same level from time to time. For
example, a gardener can be asked to do the task of a cleaner. A variety of tasks can reduce boredom,
but efficiency can be reduced as a worker has to learn new skills.
Job enrichment
Job enrichment or vertical loading motivate workers by making a job more interesting or challenging and
with more responsibilities. For example, an employee, after performing a task for a certain time, may be
given the responsibility of planning the task, quality control or supervision. Workers may also be given
extra task when a colleague is absent.
Job enrichment enables to develop more skills and to become more productive. These extra
responsibilities may lead to future promotion. However, this may not suit unskilled workers.
Empowerment
This involves granting workers the authority to be in charge of their own jobs, to make decisions and to
execute their own ideas. For example, a salesman is allowed to deal with customers in his own way.
Workers will feel trusted and this will increase productivity. However, workers may not have adequate
skills and this may lead to expensive mistakes.
Team working
This involves giving staff working together. Examples include cell production and quality circle.
With cell production, a group of workers work together on a production process. The team decides
between itself how work is to be distributed to complete the job.
In a quality circle, a small group of workers in the same area of production meet regularly to discuss
solutions to problems of quality within the production process.
Taylor’s Scientific Management (1911) – content theory
Taylor developed his theory of scientific management as he worked from a laborer to a works manager.
He observed that workers, when left on their own, will work at a much slower pace than their
capabilities (soldiering effect). He argued that:
1. A manager’s job is to plan the tasks of workers and tell them what to do.
2. An employee’s job is to do what is being told and get paid
3. An employee is an individual and is mainly concerned with maximizing his economic gain.
4. A manager’s duty is to design incentives to motivate workers.
Taylor , therefore, suggested that:
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Proper job design will increase productivity. This can be done by simplifying jobs into specialized
sequence of motion (division of labor or specialization). This can be determined by scientific
study.
Worker can be motivated by paying them more if they work hard and therefore pay should be
linked to output through a system of piece rate.
Workers should be selected and assigned individual task based on their abilities.
Influences of Taylor’s ideas:
They were first adopted by Ford Motor Co. by using conveyor belt in the mass production of cars
Most factories are using the principles of scientific management.
Many non- manufacturing businesses, like Mc Donald, are now using a system of scientific
management: same cooking temperatures, times, etc. throughout the world.
Weaknesses in Taylor’s approach
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It ignores the non-financial factors that motivate workers. Money is an important factor but
many people work for reasons other than money, e.g . to achieve something.
It ignores the differences between people. While the output of factory workers can be
measured, it is not easy to measure the output of professionals such as doctors, teachers,
etc.
Scientific management can lead to repetitive and monotonous tasks, thereby leading to job
dissatisfaction rather than motivation
Mayo and the Hawthorne Studies (HL) – content theory
Elton Mayo (1927-1932) disputed Taylor’s ideas that productivity is influenced purely on
scientific method. He argued that a strong level of interaction is the key factor in motivating
workers and hence established the Human Relations school of thought on motivation.
Mayo conducted his experiments on motivation at Hawthorne, USA and his findings, referred as
the Hawthorne effects were:
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An Individual is a social person and cannot be treated in isolation. There is a need to
belong to a group
Working together is more important than financial incentives or working conditions to
improve productivity.
Workers are more motivated when management takes an interest in their social needs
and allows them to be part of decision making.
Workers work better when there is scope for discretion, creativity and teamwork.
Influence of Mayo’s findings
The Human Relations school of thought has led organizations to look beyond financial rewards
and to adopt methods of motivation based on better relations at work. Businesses are more
and more interested in establishing teamwork, setting up social events for staff, welcoming
workers views, allowing them to take be part of decision making process, encouraging
interaction and communication.
Problems
Many workers particularly those who lack experience and skills actually want and welcome
direction and control from management.
McClleland’s theory of needs (HL) – content theory
McClelland (1961) argued what motivates people are certain needs developed since childhood.
These are present in every person although each need varies in intensity from one person to
another. They are:
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The need for achievement (N-ach)
The need for affiliation (N-aff)
The need for power (N-pow)
The need for achievement
People who have high achievement needs like to take responsibility and risks and want quick
feedback on how they have performed. They like setting their own goals and try to achieve
them on their own. They do not work well in groups.
The need for affiliation
Those with high affiliation needs like working and relate - with others superiors and colleagues.
The need for power
Those with a high for power seek leadership to influence and control.
Importance of McClleland theory.
It is important for a business to identify the high needs of different persons and then motivated
them differently. N-ach people should be given challenging but achievable tasks. N-power
people should be given opportunities to manage and lead a team. N-aff should be provided
with a collaborative environment to produce their best performance.
Since needs are developed, it is also possible to provide relevant training to increase certain
motive. For example, to train workers into high achievers by gradually increasing responsibility
and making task more challenging.
Vroom’s Expectancy theory (HL) – process theory
Vroom’s theory (1964) states that:
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Each individual has different goals depending on his skills and knowledge, job design, job
environment, etc. People react differently in different situations.
People act to achieve their goals if only there is a chance of success and there will be a
reward (expectancy).
How much effort an individual will put into a task will depend on the value of the reward
(valence).
The theory might help managers in the design of tasks and reward (pay and benefits) system to
enable people to satisfy their expectations. They must take into accounts that people have
different needs, expect different rewards and value them differently.
Adam’s Equity theory (HL) – process theory
Adam’s Equity theory (1963)suggests that workers are motivated if there is fairness in the
remuneration packages. In return for an input (effort and skills) an employee receives a reward
(pay, status and benefits). Workers will naturally compare their efforts and rewards to others in
the workplace (peers, subordinates and superiors). They will be de-motivated if there is a
feeling of unfairness,
Therefore, managers should ensure that their employees perceive fairness in the workplace.
Proper job analysis and job evaluation should be conducted so that a fair remuneration package
is given to each one according to his effort and skills. If staff feel underpaid, this will lead to demotivation, reduced effort, absenteeism and eventually resignation.