Unit 2.5 Motivation

1. Unit 2.5 Motivation IB Business & Management 1

2. Introduction 2

3. IB Business & Management

4. Taylor IB Business & Management 4

5. Taylor -scientific management • Taylor developed his theory of "scientific management" as he worked his way up from a labourer to a works manager in a US steelworks. • From his observations, Taylor made three key assumptions about human behaviour at work: (1) Man is a rational economic animal concerned with maximizing his economic gain; (2) People respond as individuals, not as groups (3) People can be treated in a standardized fashion, like machines 5

6. Continued-Taylor • Taylor had a simple view about what motivated people at work - money. He felt that workers should get a fair day's pay for a fair day's work, and that pay should be linked to the amount produced (e.g. piecerates). • Managers should maintain close control and supervision • Autocratic management style & theory X approach to workers 6

7. Weaknesses in Taylor's Approach • The most obvious weakness in Taylor's approach is that it ignores the many differences between people. • There is no guarantee that a "best way" will suit everyone. • Secondly, whilst money is an important motivation at work for many people, it isn't for everyone. Taylor overlooked the fact that people work for reasons other than financial reward. 7

8. Conclusion • Whilst Taylor’s theories still hold a great deal of power over many managers, they have to some extent been discredited. This has come about through the rise in the tertiary sector of business. Where it is much harder to measure an employees output, and quality is often of far greater importance than the quantity of work they get through. 8

9. Maslow IB Business & Management 9

10. Maslow's hierarchy of needs • Maslow's Hierarchy of Needs is a "content theory" of motivation" .Maslow's theory consisted of two parts: (1) The classification of human needs, and (2) Workers are not just motivated by money but also by having their human/social needs met. 10

11. Maslow's hierarchy of needs IB Business & Management 11

12. How does the Hierarchy Work? 1.Physiological needs-refers to the needs that must be met in order for people to survive. A person starts at the bottom of the hierarchy (pyramid) and will initially seek to satisfy basic needs (e.g. food, shelter) 2.Safety or security needs-refers to the desires necessary to make people feel safe and stable. Safety needs at work could include physical safety (e.g. protective clothing) as well as protection against unemployment, loss of income through sickness etc) 12

13. 3.Social needs-refers to the human need to be accepted as part of a part of friendship group or family. Social needs recognise that most people want to belong to a group. These would include the need for love and belonging (e.g. working with colleague who support you at work, teamwork, communication) 13

14. 4.Esteem or Ego needs-refer to the desires for recognition and being able to have self-respect. Esteem needs are about being given recognition for a job well done. They reflect the fact that many people seek the esteem and respect of others. A promotion at work might achieve this 5.Self-actualization-refers to the force that drive a person to become the best they can be. Self-actualisation is about how people think about themselves - this is often measured by the extent of success and/or challenge at work 14

15. Critics of Maslow's theory • Levels of needs are difficult to measure. It is difficult for businesses to measure the quantitative level of security,ego,esteem,and love or belonging in the workplace. • Maslow assumed that everyone is motivated in the prescribed order of the model. Can freelance writers and artists fit this model. • There is no explanation of what motivates people once they have achieved self-actualization. 15

16. Conclusion • Maslow's model has great potential appeal in the business world. The message is clear - if management can find out which level each employee has reached, then they can decide on suitable rewards. • Increase motivation by ; better communication between managers & workers,greater management envolvement,working in groups • In practice,therefore, business should introduce team working and personnel departments to look after employees interest. IB Business & Management 16

17. Herzberg IB Business & Management 17

18. Herzberg two factor theory • Herzberg's Two Factor Theory is a "content theory" of motivation" (the other main one is Maslow's Hierarchy of Needs). • From this research, Herzberg suggested a two-step approach to understanding employee motivation and satisfaction: IB Business & Management 18

19. Hygiene Factors (causes of dissatisfaction) Are the aspects of work that do not motivate but must be met to prevent dissatisfaction • Working Conditions • Salary and wages • Status • Security • Company policies, rules and regulations • Supervision and coordination • Relationship with peers, subordinates and supervisors IB Business & Management 19

20. Motivation factors Are the factors that can lead to the psychological growth of workers and hence increase satisfaction and performance at work. • Achievement • Recognition • Growth/Advancement • Interest in the job • Responsibility • Interesting tasks • Work itself IB Business & Management 20

21. Conclusion • According to Herzberg, management should focus on rearranging work so that motivator factors can take effect. He suggested three ways in which this could be done: • Job enlargement • Job rotation • Job enrichment IB Business & Management 21

22. McGregor IB Business & Management 22

23. Theory X • Mc Gregor used the term “Theory X”to explain the negative management attitude about the workforce. Such management see their workforce as lazy people who avoid work if possible also they lack ambition and do not enjoy work. • Theory X managers follow an authoritarian management style where emphasis is on output and productivity rather than on the people in the organization. 23

24. Theory Y • Managers take a more positive approach and assume that employees are able to achieve organizational objectives out of their own accord and initiative. • They believe that workers can gain satisfaction from work and that they are able to take on responsibility. IB Business & Management 24

25. Conclusion • Mc Gregor concluded that managers ought to adopt a Theory Y approach in order to get positive results for the whole organization. IB Business & Management 25

26. Question 2.5.2 a a) Productivity refers to the level of output per worker. Motivation can lead to improved labour productivity in several ways, including: • Motivated workers 'have fun' or 'enjoy' their work, thereby helping to improve productivity • Higher morale and job satisfaction suggest that workers are likely to be more productive as their desire and/or effort to complete tasks will increase • Motivated staff are unlikely to cause industrial unrest in the workplace, thereby helping to boost output and productivity • Lower absenteeism (due to higher levels of motivation) will also improve labour productivity

27. 2.5.2 b • Theory X management would be suitable if the organization has a low-skilled workforce who value direction. • Theory Y management would suit those in organizations that encourage and value creativity and those who welcome the views of their staff. • Managers who believe in the Human Relations school of thought are more likely to use job enrichment, job enlargement, job rotation and team working. By contrast, those who believe that there is a one 'best' way to get things done will use a more scientific managements approach. • The 'wrong' management style (or wrong interpretation) will therefore adversely affect the level of motivation in the workplace. • Julian Richer's beliefs (e.g. the importance of 'having fun' or that demotivation costs the business far more money than that used to motivate staff) will also directly affect his actions (e.g. to promote staff internally), thereby influencing his worker's level of motivation.

28. Mayo 1880-1949 Aus IB Business & Management 28

29. The Hawthorne experiments • He carried out the HAWTHORNE experiments at a power plant in Chicago. He took a group of workers and wanted to find out what effect changing aspects of their work, the environment etc would have on their motivation. • His surprising findings were that each time their conditions changed the work rate went up, even when he finally changed back to the original conditions. IB Business & Management 29

30. Hawthorne workers IB Business & Management 30

31. His conclusions • Attention, and feeling important influence an employee's attitude • Motivation comes from more than pay and working conditions • Employees are group members - work is a group activity • Motivational factors include recognition, belonging, security • Informal groups create important bond. Supervisors need to focus on the individual social needs of workers, and the influence of informal groups 31

32. McClelland-HL IB Business & Management 32

33. Theory of needs McClelland concluded that there are three types of motivational needs that must be satisfied in order to boost morale : • n-Ach –need for acievement • n-aff –need for affiliation • n-pow-need for power 33

34. Conclusion • McClelland’s main contribution is that people with different kinds of needs are motivated differently. • n- Ach-must be given challenging tasks • n- Pow-should be given opportunities to manage and lead a team of people • n- Aff-should be provided with a cooperative working environment in order to gain their best performance. 34

35. Process theories • Process theories of motivation look at the decision-making processes and behaviour of people to determine motivation. 35

36. Vroom's Expectancy theory • Vroom’s -This theory states that workers will only act when they have a reasonable expectation that their work will lead to the desired outcome. They need to believe that they possess the necessary ability and skill to achieve the given goal. IB Business & Management 36

37. Continued • Expectancy theory predicts that employees in an organization will be motivated when they believe that: • putting in more effort will yield better job performance • better job performance will lead to organizational rewards, such as an increase in salary or benefits • these predicted organizational rewards are valued by the employee in question 37

38. Conclusion • Vroom suggested that • the relationship between people's behavior at work and their goals was not as simple as was first imagined by other scientists. • Vroom realized that an employee's performance is based on individuals factors such as personality, skills, knowledge, experience and abilities. • In order to enhance performance managers should use reward systems that tie rewards very closely to performance. 38

39. Adam’s Equity theory • Adam’s theory suggests that workers will naturally compare their efforts or rewards to those of others in the workplace( subordinates, peers and superiors). • Each worker should receive a remuneration package that reflects his or her efforts. • Adam’s argued that workers will only be motivated if their remuneration package is seen to be fair in relation to others in the workplace. 39

40. Summary of motivational theories 40

41. The end IB Business & Management 41