Motivation

Internal Environment

What are the implications and consequences of motivated employees?

What motivates you?

* Maslow argued that people have 5 needs that can be placed in a hierarchy

* Once one level is achieved – the next level is the target

* The current level ceases to be a motivator once achieved

Abraham Maslow

PHYSIOLOGICAL NEEDS

SAFETY NEEDS

SOCIAL AND LOVE NEEDS

ESTEEM NEEDS

SELF-ACTUALISATION

NEEDS

Maslow's Hierarchy of Needs

1 Physiological needs – sunlight, water, food etc

2 Safety needs – shelter, protection from the elements, animals

3 Social/Love needs – relationships, affection, giving and receiving social stimulus/love

4 Esteem needs (ego status) – for achievement, recognition and prestige

5 Self-actualisation – for development to full potential

Which levels of the hierarchy wouldbe satisfied with the following

conditions?

* Employee of the year awards* Increase in wages* Company football team* Company pension scheme* Achieving your career goal of becoming a

department head

Implications of Maslow’s Hierarchy for management?

Managers must be aware of what currently motivates each employee

Frederick Herzberg* Maslow focussed on psychological needs to

motivate workers

* Herzberg focussed on job satisfaction to motivate workers

* There are 2 factors that affect job satisfaction:

Hygiene factors that help avoid employee’s dissatisfaction

Satisfiers

Motivators ‘surround the job’

Hygiene Factors simply induce movement of employees to ‘do something’ – no long term motivation

Implications of Herzberg’s 2 factor theory for management? Does Herzberg discredit Mayo?

Managers must ensure the hygiene factors are satisfied but for long term commitment of staff motivating conditions must be implemented.

Anita Roddick‘people become motivated when you guide them to

the source of their own power’

How to motivate? Non-financial incentives

Managers must design jobs to stimulate interest and involvement. Appropriate tasks, systems, methods, responsibilities and procedures must be decided. Quality of Working Life movements states: closure, control, task variety, self regulation and interaction are essential.

JOB DESIGN

How would Herzberg justify the useof job design? Are there any problems

with it’s use?

Increasing the scope of an employee’s role. Can be through job rotation, loading or job enrichment – enrichment is most successful.

JOB ENLARGEMENT

How would job enlargement improve motivation? Are there any problems with its

implementation?

Rotating the jobs that employees do on a frequent basis.

JOB ROTATION

How would job rotation improve motivation? Are there any problems with its

implementation?

Involving employees in decision making – offering power and control. Examples include suggestion schemes, quality circles, works councils.

EMPOWERMENT

How would empowerment improve motivation? Are there any problems with its

implementation?

Allocating more interesting, challenging and difficult tasks to employees. Includes employees being able to see a job through to the end, giving direct feedback on performance and direct communication.

JOB ENRICHMENT

How would job enrichment improve motivation? Are there any problems with its

implementation?

Employees traditionally produce cars on a flow production line with each employee adding one part to all cars

Job enrichment would mean a team would put together a large section of the car together

Reaffirmed with findings from the Hawthorne Studies. Groups can self regulate, be multi skilled and complete entire tasks.

GROUP WORK

How would group work improve motivation? Are there any problems with its

implementation?

Employees voluntarily meet to discuss, analyse and solve work related problems. Authority can be given to implement and monitor changes.

QUALITY CIRCLES

How would quality circles improve motivation? Are there any problems with its

implementation?

SemcoSemco is a Brazilian manufacturing company run by Ricardo Semler. It has gained a reputation for unusual management methods. Semco has flexible working methods and the responsibility for setting and keeping track of them rests with the employees. In addition, they want all employees to feel free to change and adapt their working area as they please. The company has no rules about this and they don’t want to have any.

Do you think financial incentives will work in a situation like this?

Adapted from Semler, R, Maverick, Arrow Books

Financial Rewards

Taylor believed financial rewards motivate. Many discredit this theory but there are motivational merits.

PerformanceRelated Pay Bonus SchemesProfit Sharing/

Share Ownership

Cash paid in relation to the profits made to all employees. Share ownership is widespread. Company will buy shares on behalf of its employees from annual profits.

PROFIT SHARING/SHARE OWNERSHIP

How would profit sharing orshare ownership improve motivation?

Links annual salaries of employees to their performance. SMART targets must be set that can be easily measured.

PERFORMANCE RELATED PAY

How would PRP improve motivation?What would Maslow and Taylor think of

the use of PRP?

Offered to individuals/teams/entire organisations as a reward for meeting a specified target. Normally one-off payments.

BONUS SCHEMES

How would Bonus Schemes improve motivation?Are their any issues with its implementation?

Disadvantages of Financial RewardsDisadvantages of Financial Rewards

Productivity may be affected by factors out Productivity may be affected by factors out with employees controlwith employees control

Negative impact on qualityNegative impact on quality

New incentives must be regularly introduced to New incentives must be regularly introduced to maintain interest – confusing?maintain interest – confusing?

Quality of working life may be affectedQuality of working life may be affected

WetherspoonsThe company believes in creating a highly committed and motivated workforce made up of people who achieve personal fulfilment through the freedom to act given to them in their daily work. It offers pay above its competition, pay is reflected by performance, bonus schemes related to pub performance, incentive schemes, share options schemes and a range of training options.

Adapted from www.thetimes100.co.uk