2.5

2.5

1. Motivation

   • Extrinsic Motivation: comes from external rewards associated with working on a task, for example pay and other benefits
   • Motivation: intrinsic and extrinsic factors that stimulate people to take actions that lead to achiving a goal
   • Intrinsic Motivation: comes from the satisfaction derived from working on and completing a task

2. Indicators of Poor Staff Motivation

   • ABSENTEEISM: deliberate absence for which there is not a satisfactory explanation. LATENESS: often becomes habitual. POOR PERFORMANCE: poor-quality work, low levels of work or greater waste of materials. ACCIDENTS: poorly motivated workers are more careless, distract others and concentrate less. LABOUR TURNOVER: people leave for reasons that are not positive. GRIEVANCES: more complaints than union disputes. POOR RESPONSE RATE: works do not respond well to orders.

3. HOW TO IMPROVE WORK PRODUCTIVITY (TAYLOR´S) 1. = Select workers to perform a task 2. = Observe the performance and note key elements 3. = Record the time taken to do task 4. = Identify the quickest method recorded 5. = Train workers in quickest method and do not allow any changes 6. = Supervise workers to ensure that the method is being carried out 7. = pay workers on the basis of result

4. Maslow´s Hierarchy of Human Needs

   • 1. Self-Actualisation: reaching ones full potential 2.Esteem Needs: Respect rom others, status and recognition of achievements 3.Social Needs: trust, acceptance, friendship, etc. 4.Safety Needs: protection from threats, job security, health and safety at work. 5.Physical Needs: food, shelter, water ,etc.
   • Business Conditions Which Could Allow For The Needs To Be Met
     • 1. Self-Actualisation: challenging work that streches the individual (sense of achievement) 2. Esteem Needs: recognition for work done well 3. Social Needs: working in teams or groups ensuring good communication to make workers feel involved. 4.Safety Needs: a contract of employment with some job security 5. Physical Needs: income from employment high enough to meet essential needs.
   • Interpreted as follows:
     • -Individuals needs start on lowest level - Once one level of need has been satisfied, humans will strive to achieve the next level -Self- Actualisation everyone is capable of reaching their potential - Once a need is satisfied , it will no longer motivate individuals to action - Reversion is possible
       • Self- Actualisation: a sense of self fulfillment reached by feeling enriched and developed by what one has learned and achieved.
   • Limitations of Maslow´s Approach: -Not everyone has the same needs as are assumed by the hierarchy - In practice it is difficult to identify the degree met - Money is necessary to satisfy physical needs - Self- actualisation is never permanently achieved.

5. Herzberg and the "Two- factor Theory"

   • Used workers questionnaires to discover: factors that led them having very good feelings about their jobs and factors that led them having negative feelings about their jobs
   • Conclusion: Job satisfaction 5 main factors: achievements, recognition for achievements, work itself, responsibility and advancements (called these factors motivators). Job dissatisfaction also resulted from 5 main factors: company policy and administration, supervision, salary, relationships, with others and working conditions.
     • Motivating Factors: aspects of a workers job that can lead to positive job satisfaction, such as achievements, recognition, meaningful and interesting work and advancements at work
     • Hygiene Factors: aspects of a workers job that have the potential to cause dissatisfaction, such as pay, working conditions, status and over supervision by managers
   • Consequences: motivators need to be in place for workers to be prepared to work willingly and always to give their best. He suggested that motivators could be provided by adopting the principles of job enrichment. The 3 main features of job enrichment: 1. assign workers complete unit of work 2. Provide feedback on performance 3. give workers a range of tasks
     • Job enrichment: aims to use the full capabilities of workers by giving them the opportunity to do more challenging and fulfilling work.
   • Evaluation: workers tend to be made much more responsible for the quantity of their work, team working is now much more widespread and most firms are continually looking for ways to improve effective communication

6. Adams and Equity Theory: built on belief that employees become demotivated towards their jobs and emplyeers.

7. Daniel Pink: suggest that there are three elements of intrinsic motivation

   • Autonomy: all humans are built with inner drive
   • Mastery: everyone wants to get better at what they are doing
   • Purpose: people who find purpose in their work unlock the highest level of motivation
   • Why is it relevant? Pink urges all managers to focus on building more autonomy, mastery and purpose into employees working lives to produce a more productive and effective workforce as well as a happier one

8. Payment systems: salary, wage (time based wage rate and piece rate), commission, performance- related pay and bonuses, profit related pay, emplyee share ownership schemes, fringe benefits

   • Salary: annual income that is usually paid on a monthly basis
   • Time based wage rate: wage is determined by multiplying hours of work worked
     • Hourly wage rate: payment to a worker made for each hour worked.
   • Piece rate: a payment to a worker for each unit produced, depends on quantity of output produced
   • Commission: a payment to a sales person for each sale made, can make up 100% of the total income of direct sale staff
   • Performance related pay: a bonus scheme to reward staff for above average, usually in form of a bonus payable in addition to the basic salary
   • Profit related pay: a bonus for staff based on the profit of the business usually paid as a proportion of basic salary
   • Employee share ownership schemes: do not offer cash but shares in the business to each worker when the firm declares a profit.
   • Fringe benefits:non cash for rewards instead cars, free insurance, and pension schemes, etc.
   • Non financial methods of motivation: job en enlargement, job enrichment, job rotation, team working, empowerment
     • Job enlargement: attempting to increase the scope of a job by broadening or deepening the tasks undertaken
     • Job enrichment: attempting to motivate employees by giving them opportunities to use the full range of their abilities
       • Cell production: a lean method of producing similar products using cells or groups of team members to facilitate operations by eliminating setup time between operations
       • Job redesign: involves the restructuring of a job usually with employees involvement and agreement to make work more interesting, satisfying and challenging
     • Job rotation: the practice of moving employees between different tasks to promote experience and variety
     • Team working: production is organised so that groups of workers udertake complete units of work

9. Delegation and empowerment: delegation involves passing down authority to perform tasks to workers, empowerment goes further by allowing workers some degree of control

10. Evaluation of financial and non financial motivational methods

    • Cultural differences and reward systems: GLOBE has extended the work of the mos t famou writer on cultural factors in business, Geert Hofstede, three cultural differences that seem to have the most impact on the reward system used are:
      • Performance orientation: extent to which performance improvement, innovation, and striving for excellence is encouraged
      • Future orientation: individuals are focused on delaying immediate reward and engaging in future oriented behaviour such as planning and investing for the future
      • Institutional collectivism: organisations reward or encourage the distribution of resources to groups and focus on collective action
      • Fringe benefits and cultural differences: need to consider local differences in culture
      • Local distribution of rewards: employer must ensure the rewards can be distributed locally as required
      • Cultural differences and non financial rewards: recognition of employees contribution is considered to be an important motivator but different ways