IB Business and Management

2.4 Motivation in theory

Learning Outcomes

The following motivation theories: (AO3)•Taylor•Maslow•Herzberg (motivation–hygiene theory)•Adams (equity theory)•Pink

Essential Question

What is the best way for organisations to motivate their workers

WHAT IS MOTIVATION?

What is motivation? What does it mean if someone is motivated? Where does motivation come from?

What is Motivation?

The factors that make a person want to do something

To get the best out of workers firms need to understand why people work and what might make them willing to work harder.

What is the difference between Intrinsic and Extrinsic Motivation?

Intrinsic Vs Extrinsic

-Can you think of any examples?-What might make motivation might come from within?-What else could create motivation?

THE IMPORTANCE OF MOTIVATION?

Why does motivation matter? What benefits will it bring to an organisation?

Why is Motivation Important?

• Higher productivity• Better customer service• Improved teamwork• Lower absenteeism• Lower labour turnover

These all lead to LOWER COSTS or HIGHER REVENUES and therefore HIGHER PROFITS

Motivation Theories

There are many psychologists who have come up with theories about what motivates workers. We are going to look at some of these:•Taylor•Maslow•Herzberg (motivation–hygiene theory)•Adams (equity theory)•Pink

WHAT DO THE THEORISTS SAY

Frederick W Taylor Famous for applying his principles

of scientific management to the world of work.

Taylor was interested to see whether a job or work could be redesigned to increase efficiency.

He tried to break down tasks into smaller steps and look at exactly how production actually worked.

Task

• Watch the video clip ‘Ford and Taylor Scientific Management’

• http://www.youtube.com/watch?v=8PdmNbqtDdI

Answer the questions on the following slide

Questions:

• What were Taylor’s core principles?• What were the benefits of Taylor’s

approach?• What were the problems of Taylor’s

approach?• What was Taylor’s view on pay?• What do you think Herzberg would think of

Taylor’s principles?

Taylor’s Views In a Nutshell…..• Frederick Winslow Taylor (1856 – 1917) put forward

the idea that workers are motivated mainly by pay. • His Theory of Scientific Management argued that

workers do not naturally enjoy work and so need close supervision and control

• Managers should break down production into a series of small tasks Workers should then be given appropriate training and tools so they can work as efficiently as possible on one set task.

• He advocated Piece Rate Pay • Henry Ford adopted Taylors approach, as it

increases productivity and reduces unit costs.

In the long-term, what were the problems with Taylor’s methods?

Is his approach still relevant in the modern world?

• Abraham Maslow (1908 – 1970) introduced his Hierarchy of Needs, which focused on the psychological needs of employees.

• Maslow put forward a theory that there are five levels of human needs which employees need to have fulfilled at work.

• All of the needs are structured into a hierarchy and only once a lower level of need has been fully met, would a worker be motivated by the opportunity of having the next need up in the hierarchy satisfied.

Abraham Maslow – Hierarchy of Needs

Maslows Hierarchy of Needs

Maslows Hierarchy of Needs

Basic Needs

Safety Needs

Social Needs

EsteemNeeds

SelfActualisation

Needs

Task

Brainstorm - What can firms do to help workers reach the different levels of the hierarchy?

Frederick Herzberg – Motivator – Hygiene Theory

Herzberg said that there are two types of factors that affect workers motivation

• Motivator Factors – Factors which if present will motivate staff

• Hygiene Factors – Factors which will not in themselves motivate, but will demotivate staff if they are not present

He also differentiated between Motivation and Movement

Motivator or Hygiene? What do you think?

• Sufficient rest breaks• Opportunities for promotion• Access to training• A clean and safe working environment• Good relationships with people at work• Decent pay• Recognition for good work• Job security• Being given responsibility• Opportunities to take part in CSR activities

Task

Watch the video ‘Jumping for Jellybeans’

Frederick Herzberg might appear to be slightly eccentric, but what do you think of his theory?

Consider the questions on the followuing slide

Questions:

• What are the 2 types of factors that Herzberg identifies?

• What are some examples of these 2 factors?

• What is the difference between movement and motivation?

• What is job enrichment?• What is meant by KITA?

In summary…….

• Herzberg developed the idea of job satisfaction• In the right circumstances, people can get

pleasure from their work• If people enjoy their work they will be MOTIVATED• Herzberg stated that MOTIVATION (intrinsic) is

different to MOVEMENT (extrinsic)

John Stacey Adams - Equity Theory

• He put forward his Equity Theory on job motivation in 1963.

• When people feel fairly or advantageously treated they are more likely to be motivated; when they feel unfairly treated they are highly prone to feelings of disaffection and demotivation.

Equity Theory

• Emphasis on 'what is fair and reasonable’• Individuals, seek a fair balance between

what we put into our job and what we get out of it.

• Adams calls these inputs and outputs.• Individuals form perceptions of what

constitutes a fair balance or trade of inputs and outputs by comparing their own situation with colleagues, friends and partners (referent others)

Equity Theory

Inputs….effort, loyalty, hard work, commitment, skill, ability, adaptability, flexibility, etc.

Outputs…… financial rewards - pay, salary, expenses, bonus and commission intangibles - recognition, reputation, praise, promotion, etc.

People need to feel that there is a fair balance between inputs and outputs.

If employees feel are that inputs are fairly and adequately rewarded by outputs (the fairness benchmark being subjectively perceived from market norms and other comparative references) then they are happy in our work and motivated to continue inputting at the same level.

Daniel Pink

• Wrote a book in 2009 called ‘Drive: The surprising truth about what motivates us’

Video

Let’s let Daniel Pink explain his theory himself.

Watch the video.

RSA Animate – Drive_ the surprising truth about what motivates us

What are your thoughts??

Motivation at Foxconn

Watch the video.

You will then apply the motivation theories we have learned about to make suggestions on how motivation at Foxconn could be improved.

Task

Each group takes on the theory of a motivational theorist:•Taylor•Maslow•Herzberg•Adams•PinkAssuming you are following one motivational theory, write detailed suggestions on how motivation could be increased.

Reflection• Which of the motivation theories that we

have learned about have similarities?

• Which motivation theorist do you agree with most? Explain your answer.