Chapter 13: Motivation at work

Motivation

People work for a number of reasons. Most people work because they need to earn money to
survive, while others work voluntarily for other reasons. Motivation is the reason why
people work, and it drives them to work better. Therefore, managers try to find out what
motivate workers and use them to encourage workers to work more efficiency. This
results in higher productivity, increased output, and ultimately higher profits.

 Nowadays, machinery is more common in businesses which results in increased

productivity as well. However, the amount that a well motivated workforce can
produce must still be recognised, since employees are a firms greatest assets!

Motivation theories

People work very hard when they are working for themselves. When they work for other
people, less so. Managers have been looking into what makes employees contribute their
fullest to the company and these studies have resulted four main theories of motivation.

F.W.Taylor

Theory:

 Money is the main motivator.

 If employees are paid more, they work more.
 Work is broken down into simple processes, and more money is paid which will
increase the level of productivity an employee will achieve.
 The extra pay is less than the increased productivity.

Cons:

 Workers are seen rather like machines, and this theory does not take into account
non-financial motivators.
 Even if you pay more, there is no guarantee of a productivity rise.
 It is difficult to measure an employees output.

Maslow

Maslow created what is know as the hierarchy of needs. 

In this diagram, there are 5 different types of motivation:

 Physiological needs: basic requirements for survival.

  Security needs: the need to by physically safe.
 Social needs: the need to belong and have good relationships with co-workers.
 Esteem needs: the need for self-respect and to be respected by others.
 Self-actualisation needs: the need to reach your full potential and be promoted.

Businesses realise that the more levels of motivation are available to workers, the harder
they will work. Maslow also suggest that each level of motivation must be achieved
before going to the next level. Once one level of motivation is met, more of that will no
longer motivate the employee. 

Cons:

 Some levels are not present in some jobs.

 Some rewards belong to more than one level on others.
 Managers need to identify the levels of motivation in any job before using it to
motivate employees.

Herzberg

To Herzberg, humans have hygiene factors, or basic animal needs of humans. We also
have motivational factors/motivators, that are required for the human to grow
psychologically. 

Hygiene factors:

 Status.
 Security.
 Working conditions.
 Company policies and administration.
 Relationship with supervisor.
 Relationship with subordinates.
 Salary.

Motivational factors:

 Achievement.
 Recognition.
 Personal growth/development.
 Advancement/promotion.
 Job satisfaction.

To Herzberg, if the hygiene factors are not satisfied, they will act as demotivators. They
are not motivators, since the motivating effect quickly wears off after they have been
satisfied. True motivators are are Herzberg's motivational factors.

Why do people work?

Here is a summary of why people work:

 Money: to satisfy needs and wants.

  Security: knowing that you are physically safe and have job security.
 Social needs: to belong to a group, making friends at work.
 Esteem needs (self importance): feeling important, feeling the job you do is
important.
 Job satisfaction: enjoyment from the feeling of having done a good job. 

Motivating factors - financial motivators

There are three ways to motivate a workforce:

 financial motivators
 non-financial motivators 
 ways to increase job satisfaction

Financial rewards

Pay may be the basic reason why people work, but different kinds of pay can motivate
people differently. Here are the most common methods of payment:

Wages
Wages are paid every week, in cash or straight into the bank account, so that the
employee does not have to wait long for his/her money. People tend to pay wages to manual
workers. Since wages are paid weekly, they must be calculated every week which takes time
and money. Wages clerks are paid to do this task. Workers get extra pay for the
overtime that they do. There are some ways that wages could be calculated:

Time rate: Time rate is payment according to how many hours an employee has worked.
It is used in businesses where it is difficult to measure the output of a worker.

 + Easy to calculate the wage of the employee. A time-sheet must be filled out by the
Accounts department to calculate the wage.
  - Both good and bad workers get paid the same wages. Therefore, more
supervisors are needed to maintain good productivity. a clocking-in system is
needed to know how many hours an employee has done.

Here is an example of a wage slip and time-sheet:

They show:

 Basic pay + Overtime = Gross Pay 

 Gross pay - Deductions = Net Pay

Deductions include:

 Taxes
 Pension
 Union fees
 National insurance: entitles the payee to short-term unemployment benefits,
sickness benefits and state pension.

Piece rate: Piece rates are paid depending on how many units they have produced.
There is usually a base pay (minimum wage) and the piece rate is calculated as a bonus on
how many units were created. Piece rates are found in businesses where it is possible to
measure a workers productivity.

 + Encourages workers to work faster and produce more goods.

  - Workers will often neglect quality, and businesses will need a quality control
system which is expensive.
  - Workers who focus on quality will earn less. Tension is caused when some
workers earn more than others.
  -  If machinery breaks down, employees earn less. That is why there is
a guaranteed minimum pay.

Salaries
Salaries are paid monthly, and normally straight into the bank account.  They are usually
for white collar workers. A salary is counted as an amount per year that is divided
into 12 monthly accounts. You do not usually receive overtime. Managers only need to
pay their workers once a month, and since the amount is transferred by the bank, the
manager loses much less time and money calculate salary.

Salaries are usually a standard rate, but other rewards could be given to employees:

 Commission: A percentage is paid, usually to sales staff, depending on the value

of goods they have sold. Workers are encouraged to sell more. However, they could
persuade customers to buy products they don'r really want, making the company
 look bad. Just like the piece rate, in a bad month where there are little sales, worker's
pay will fall.
 Profit sharing: Employees receive a percentage of the profits made. However,
they will get nothing if the business doesn't make a profit. This is often used in the
service sector, where it is hard to find an employees contribution to the company.
 Bonus: A lump sum paid to employees who have done well. It is usually paid at
the end of the year or before holidays. However, this could cause jealousy between
workers. Giving bonuses to a team works better.
 Performance related pay: Employee pay is linked to the effectiveness of their
work. It is often used in organisations where it is hard to measure productivity. It
uses the system of appraisal: employees are observed and their colleagues are
interviewed to determine their effectiveness. Afterwards, the immediate superior of
the employee has a meeting with them to discuss their effectiveness. 
 Share ownership: Employees receive some shares from the company. They will
either benefit from dividends or sell the shares when their price has risen. They
will be more motivated because they feel like a part of the company.

Motivating factors - non-financial motivators

There are other factors that motivate people in a business, and they are often called perks
or fringe benefits. They may be having free accommodation, free car, etc... However,
when you look at it, it is just money in different forms. Here is a list of these motivators:

 Children's education.
 Discounts on company products.
 Free Healthcare.
 Company vehicle.
 Free accommodation.
 Share options.
 Expense accounts.
 Pension.
 Free holidays.

Job satisfaction: 

Employees will become more motivated by enjoying the job they do. Job satisfaction can
come in different ways. However, there are some factors that demotivate employees if
they are not satisfied, and must be satisfied before the motivators can take effect. Here are
some things that make workers' jobs satisfying:

 Pay.
 Promotion.
 working conditions.
 Fringe benefits.
 Management
 Working hours.
 The nature of the work itself.
 Colleagues, etc...

Herzberg and Maslow stresses that things such as responsibility recognition is also
crucial to provide job satisfaction. Letting workers contribute to the job would also help,
making jobs less boring and more creative. Here are some policies to increase job
satisfaction:

Job rotation:

Workers in a production line can now change jobs with each other and making their jobs
not so boring. It helps train the employee in different aspects of their jobs so that they can
cover for other employees if they do not show up.

Job enlargement: 

Adding tasks of a similar level to a worker's job. Job enlargement simply gives more
variety to employees' work which makes it more enjoyable.

Job enrichment:

Adding tasks of a higher level to a worker's job. Workers may need training, but they will
be taking a step closer to their potential. Workers become more committed to their job
which gives them more satisfaction.

Autonomous work groups or teamworking:

This is when group of workers are given total responsibility to organise themselves and
perform a task. This makes the employees feel more important, as well as giving them a
sense of belonging when they are part of a team. If they organise themselves differently
every time, the team could get job enlargement and job enrichment too!