AS level business: Motivation

Maslow's Hierarchy of Needs

(level 1) Physiological Needs (level 2) Safety and Security (level 3) Relationships, Love and Affection (level 4) Self Esteem (level 5) Self Actualization

Taylor's Scientific Management

Economic man - believing money only motivates them Select right people for each job - Efficient selection of workers in their roles Observe and record the performance of staff - See how they work if they're happy or not Establish best method of doing job - Ensure that working practice changed with discussion. Piece Rate - The more produced, the more pay workers will receive

Piece Rate Pay

Employees are paid for each item produced that meets the desired quality standard

Advantages of piece rate

Encourages greater effort and faster working Labor cost for each unit determined in advance and helps set a price for product.

Motivators (Herzberg)

Factors that increase job satisfaction and motivation levels, such as praise, recognition and responsibility

disadvantages of performance related pay

Fail motivate staff if not driven by need to earn additional finance Team spirit damaged by rivalry generated by competitive nature Claims of manager favoritism harm manager-subordinate relationships Lead to increased control over staff by managers because of danger bonuses not awarded if workers don't conform

Mayo's Hawthorne effect

Found that workers are most motivated and productive when they are able to have some social interaction with their fellow workers and management takes an interest in their well-being. Teamwork is useful. Control over working lives. Groups establish own targets

Advantages of salary

Gives income security Gives status compared to time or piece rate Aids in costing Suitable for jobs where output not measurable Good for management positions where staff expected to put extra time to complete task

Performance related pay

Pay which is related to the effectiveness of the employee where their output can easily be measured

Team working (motivation)

The people feel like they are part of a team and want to do better for the team.

Time wage system

The person is paid for how long they work

quality circles

Voluntary groups of people drawn from various production teams who make suggestions about quality.

hygiene factors

factors that eliminate job dissatisfaction but don't motivate

worker participation

workers are actively encouraged to become involved in decision making within the organization

Disadvantages of profit sharing

workers may perceive their performance has less to do with profit than top management decisions over which they have little control Costly to set up Increase total number of shares issued and dilute value of existing shares

Advantages of Profit Sharing

-profit sharing encourages employees to think more like owners -labor costs are automatically reduced during difficult economic times, and wealth is shared during good times -As bonuses paid out of profits, scheme doesn't add to business costs

commission

An amount paid to an employee based on a percentage of the employee's sales

fringe benefits

Any financial extras beyond the regular pay check, such as health insurance, life insurance, paid vacation and/or retirement

Examples of motivational gains

Low labor turnover Low absents High productivity More suggestions for improvements Prepared to accept responsibility

Limitations of Maslow's theory

Not everyone has same needs Practice difficult identify degree which each need met and which level worker is on Money necessary satisfy physical so does other levels of needs Self-actualization never permanently achieved as challenges always occur otherwise regression

Disadvantages of piece rate

Requires output to be measurable and standardized, if each product different then not appropriate Lead to falling quality Workers settle for pay level and not be motivated produce more than a certain level Provides little security over pay level Workers discouraged from accepting change at wok as might result to pay loss

advantages of performance related pay

Staff motivated improve performance if they're seeking increases in financial awards Target setting help give purpose and direction to work of individual Annual appraisal offers opportunity for feedback on performance of individual

Delegation

The assignment of new or additional responsibilities to a subordinate

self-actualization

according to Maslow, one of the ultimate psychological needs that arises after basic physical and psychological needs are met and self-esteem is achieved; the motivation to fulfill one's potential

salary

annual income that is usually paid on a monthly basis

bonus

anything good that is received over and beyond what was expected (usually money)

job enrichment

changing a task to make it inherently more rewarding, motivating, and satisfying

Advantages of teamwork

cooperative environment complex, ambiguous task specialists available low capabilities - pool resources encouragement/accountability time available

training

educating technical and operational employees in how to better do their current jobs

profit sharing

incentive pay in which payments are a percentage of the organization's profits and do not become part of the employees' base salary

job enlargement

increasing the number of different tasks in a given job by changing the division of labor

esteem needs

need for self-esteem, achievement, competence, and independence; need for recognition and respect from others

Herzberg's Motivation-Hygiene Theory

the idea that satisfaction and dissatisfaction are separate and distinct dimensions

physical needs

the most basic needs, including food, water, clothing, shelter and sleep

social needs

the need for love, companionship, and friendship- the desire for acceptance by others

Types of financial motivation

time wage piece rate salary commission performance related pay and bonuses profit sharing fringe benefits

Disadvantages of salary

Income not related to work Lead to complacency of salary earner Regular appraisal needed to assess whether an individual should move up salary

Motivation

Internal and external factors that stimulate people to take actions leading to achieving a goal.

job redesign

Involves the restructuring of a job - usually with employees' involvement and agreement - to make work more interesting, satisfying and challenging

safety needs

A person's needs for security and protection from physical and emotional harm

Disadvantages of teamwork

1. Not everyone is a team player - some individuals are more effective when working alone 2. Teams can develop a set of values and attitudes which may contrast or conflict with those of the organization 3. The introduction of teamwork will involve training costs and there may be some disruption top production as the teams establish themselves