LEARNING OBJECTIVES:
1. Motivation in theory · Content theories of Taylor, Maslow, McGregor and Herzberg
Analyse the intrinsic and extrinsic needs that have to be satisfied at work, and the rewards (financial and non-financial) that motivate individuals.
Apply the content theories to given situations.

Content theories of Mayo and McClelland (HL)
Apply the content theories of Mayo and McClelland. (HL)
Process theories - Expectancy theory and equity theory (HL)
Analyse the effect of thought processes and expectations on individual motivation. (HL)
Apply the theories of writers such as Vroom and Adams. (HL)

2. Motivation in practice - Financial motivation - Methods of payment, Wages (time and piece rates), Salary, Commission, Profit-related pay, Performance-related pay (PRP), Employee share-ownership schemes, Fringe payments ·
Evaluate alternative financial reward packages.
Evaluate the impact of financial reward packages on job satisfaction, motivation and productivity.

3. Non-financial motivation - Job enrichment, Job enlargement, Empowerment, Teamwork
Explain how non-financial rewards can affect job satisfaction, motivation and productivity.
Evaluate alternative methods of non-financial rewards in different circumstances in the workplace. (HL)

Unit 2.5 Motivation
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1. motivational Theories
Taylor (1911) Scientific Management
-industry revolution and developed car (henry ford)
« reduce inefficiency of workers and managers through ‘objective lens’
« specialization and repetitive work
« create a partnership between manager and worker
« money is main motivator
« six sigma (outliers, standard deviation, outlier, shifting mean)
« don’t pay attention to satisfaction of employees

Maslow (1954) Hierarchy of Needs
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McGregor (1960)- Theory X & Y
Theory X workers are:
« lazy and dislike work
« motivated mainly by money
« selfish (their own needs are more important than those of the org)
« in need of close control by management

Theory Y workers:
« well-motivated and enjoy work
« able to take responsibility and organize themselves
« creative in the right working environment

Diagram:
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Herzberg (1966) Motivators & Hygiene Factors
2 Factor Theory:
Motivators
« sense of achievement
« nature of the job
« recognition of achievement
« responsibility
« chance of promotion
« possibility of improvement

Hygiene factor (not source of motivation/ demotivator)
« pay
« inability to develop oneself
« working conditions/treatment
« relationship with management/supervisor or subordinate
« policy and administration
« personal life
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1. MOTIVATION in practice
2 types: financial motivation and non-financial motivation

Financial motivation

-ways that business can motivate workers by using some form of monetary reward (eg. profit-related pay)

-methods of financial payments:


Wages (time and pieces rate)
o time-based payment system (work longer, more $)
o hourly rate (eg. hk min wage $28.00/hr)
o work overtime --> earn doubletime wages (common)
o :) straightforward payment system
o :( workers are not rewarded for efforts but their time (may encourage slack/poor productivity)

Piece rate
o pays for each item they produce or sell in a given time period (Taylor theory)
o eg. taxi driver
o :) ensure that workers are paid for the amount of work they doàincentive to work harder to max. income
o :( trade off between quantity and quality of output (need of supervision and control)
o :( demotivated due to uncertain level of incomes caused by factors beyond their control (eg. machine failureà no products madeà no money)

Salary
o set at fixed annual rate but paid at end of each moth
o :) convenient, less risky
o :( working overtime --> no extra pay because it’s part of their work
o :( difficult to distinguish the efforts of different workers & reward the productive workers
o :( little incentive to work hard since people are paid the same amount for their time

Commissions
-output based payment systems
-pays workers based on percentage of sales or output contributed by worker (vs. piece rate- fixed amount per unit sold/produced)

Profit Related Pay (PRP)
-performance bonus: pay workers who reach output/quality argets
-loyalty bonus- paid workers who have stayed with the firm for certain length of time
-pay rise- increment in pay due to exceeding performance management targets
-gratuity- pay staff who complete their employment contracts

Advantages :) create incentive to work, fairer system of reward, develop performance culture (people strive to achieve targets)
Disadvantages :( targets may be unachievable, stress caused by pressure, non-financial motivators ignored, does not promote teamwork

Employee share-ownership schemes
-payment system rewards workers by giving them shares in the company
-staff will have a more direct interest in well-being of the org by also being a shareholder
-usually reward ones in senior management

Fringe payments
-payments and benefit to employee in addition to their salary/wage
-subsidized meal, private health insurance
- :) encourage employee loyalty (similar to maslow theory- hierarchy of needs)
- employees feel valued

NON- FINANCIAL MOTIVATION

Job enrichment
-aka. vertical loading
- :) making job interesting and challenging with more responsibilities (can delegate)
- :) worker have better sense of achievement, more committed to work
- :( time and money needed to train workers, may be too complex, can destroy confidence if work does not fit/not appropriate for worker

Job enlargement
-broadening and increasing the number of tasks that an employee performs
-increase variety of task, reduce monotony (won't feel bored or demotivated)

Empowerment
-granting workers the authority to be in charge of their own jobs
-make decisions and execute own ideas
-subordinates have some autonomy and decision making--> empower employees--> boost motivationn
-eg. teaching professions--> head of department
- *However, workers must have the skill and necessary training to independently tackle given tasks

Teamwork
-staff have opportunity to work alongside with other employeses
- include cell production (part of production process), quality circles (meet regularly to discuss solutions), departmentalized team (labor divided by functional departments)
- reduce boredom, meet social needs, sense of belonging, boost labor productivity and efficiency, flexibility and multiskilling (learn from others), cover for each other (without delay)
1. Adair model:
3 parts to effective teamworking- Task, Team, Individual
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2. Belbin model of teamworking:
-cluster of different people
- 9 patterns of behavior/ team roles
  • action orientated: shaper, implementer, completer finisher
  • people orientated: coordinator, teamworker, reource investigator
  • cerebral orientated: plant, monitor evaluator, specialist
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