Business (9609) | Motivation

Welcome to your Motivation Study Notes!

Hello future business leader! This chapter is all about understanding what makes people tick, specifically in the workplace. Why do some employees work harder than others? How can managers get the best out of their teams?
Understanding Motivation is crucial because a motivated workforce is a productive, high-quality, and loyal workforce. Let's dive in and unlock the secrets to a happy and successful team!

Section 2.2.1 & 2.2.2: The Core Concept of Motivation and Human Needs

What is Motivation?

Motivation, in the context of business, is the internal and external desire or drive that encourages an employee to be willing and able to perform a task to achieve the objectives of the business.

• Managerial Tool: Managers and leaders use motivation as a key tool to improve productivity, reduce labour turnover, and achieve strategic goals (2.2.1).
• The Goal: To align the employee’s personal goals and needs with the objectives of the organisation.

Understanding Human Needs (2.2.2)

A human need is a necessity or lack of something that is essential for well-being. People are motivated when they have needs that they seek to satisfy.

Think of motivation like filling a bucket. Once one need (e.g., money) is filled, it stops being a strong motivator, and the person starts looking to fill the next bucket (e.g., feeling respected).

How Human Needs are Satisfied at Work

• Financial Needs: Satisfied by pay, bonuses, and benefits (e.g., a high salary satisfies the need for shelter and security).
• Social Needs: Satisfied through team working, good communication, and positive relationships with colleagues.
• Esteem Needs: Satisfied through recognition, promotion, and status (e.g., a formal job title and a dedicated office).

Quick Takeaway: If a business understands what needs its employees are trying to satisfy, it can offer the right rewards to boost motivation and achieve its objectives.

Section 2.2.3: The Content Theories of Motivation

Content Theories try to explain *what* specific things motivate individuals (i.e., the content of the motivation).

1. Frederick Winslow Taylor – Scientific Management

The Idea:

Taylor believed in the concept of the 'Economic Man' – that people are motivated *solely* by money. His theory, Scientific Management, focused on efficiency.

• Specialisation: Break down tasks into the simplest steps possible.
• Close Supervision: Workers should be closely monitored by management.
• Piece Rate Pay: Workers are paid per unit they produce (e.g., $5 for every shirt sewn). This acts as the key motivator.

The Catch: While this increases efficiency, it ignores human needs for social interaction and job satisfaction, leading to monotonous work and potentially low morale.

2. Elton Mayo – The Human Relations School

The Idea:

Mayo’s research (the Hawthorne Studies) showed that productivity improvements were not just due to physical working conditions, but due to psychological and social factors.

• Social Needs: People are motivated by recognition, attention, and belonging to a group.
• Communication: Two-way communication between workers and managers is key.
• Group Work: Working as part of a team improves morale and motivation.

Did you know? The Hawthorne Effect is the term used when people temporarily modify their behaviour (usually by working harder) because they are aware of being observed or studied.

3. Abraham Maslow – Hierarchy of Needs

The Idea:

Maslow arranged human needs into a pyramid structure, suggesting that lower-level needs must be satisfied before individuals are motivated to achieve higher-level needs.

Step-by-step Pyramid:

1. Physiological Needs: Basic survival (food, shelter, rest). Satisfied by: Basic pay/wage.
2. Safety/Security Needs: Feeling protected from physical or economic harm. Satisfied by: Secure job contracts, health insurance, safe working conditions.
3. Social Needs (Love & Belonging): Need for friendship and teamwork. Satisfied by: Team events, good communication, and strong team working policies.
4. Esteem Needs: Need for respect, recognition, and status. Satisfied by: Job titles, promotion opportunities, performance bonuses.
5. Self-Actualisation: Reaching one's full potential, becoming the best you can be. Satisfied by: Challenging work, development training, empowerment.

Important Point: Once a need is satisfied, it ceases to be a motivator. A manager must constantly identify the next level of need for their employees.

4. Frederick Herzberg – Two-Factor Theory

The Idea:

Herzberg argued that motivation is caused by two separate sets of factors:

1. Hygiene Factors (Maintenance Factors): These do not motivate, but if they are absent or poor, they lead to dissatisfaction. They relate to the job *context* (environment).

• Examples: Pay, working conditions, relationship with boss, company policy, security.
• Analogy: If your desk is clean (hygiene factor), you aren't motivated, but if it's dirty, you are demotivated.

2. Motivators (Satisfiers): These factors genuinely create job satisfaction and motivation. They relate to the job *content* (the job itself).

• Examples: Achievement, Recognition, The work itself, Responsibility, Advancement (Promotion).
• Managerial Application: Managers must ensure hygiene factors are acceptable (to avoid dissatisfaction) AND actively implement motivators (to generate satisfaction).

Common Mistake to Avoid: Don't assume good pay is a motivator! Herzberg sees pay as a hygiene factor – poor pay demotivates, but very high pay only prevents dissatisfaction; it doesn't usually inspire commitment.

5. David McClelland – Needs Theory

The Idea:

McClelland proposed that individuals possess different dominant needs that are acquired over time (not innate like Maslow's) and these needs influence what motivates them.

The three main needs are:

1. Need for Achievement (nAch): Driven by a desire for success, mastery of skills, and measurable performance. They prefer tasks with moderate risk and clear feedback. (Great for sales or project management).
2. Need for Affiliation (nAff): Driven by a desire for friendly relationships, cooperation, and social interaction. They prefer teamwork and avoiding conflict. (Great for customer service or HR).
3. Need for Power (nPow): Driven by a desire to control others and influence decisions. They seek leadership roles. (Great for senior management).

Managerial Application: Managers should identify which need dominates an employee and match them to appropriate job roles to maximize motivation.

Section 2.2.3: Process Theory of Motivation

Process Theories focus on *how* motivation works and the thought process that influences an employee's decision to exert effort.

Victor Vroom – Expectancy Theory

The Idea:

Vroom suggested that individuals are motivated if they believe there is a positive correlation between effort, performance, and desired outcomes (rewards). It's based on three key relationships:

1. Expectancy: Belief that Effort will lead to desired Performance.

   Example: If I study hard (effort), I expect to pass the exam (performance).

2. Instrumentality: Belief that successful Performance will result in a desired Reward.

   Example: If I pass the exam (performance), I expect my parents to give me a promised laptop (reward).

3. Valence: The Value or attractiveness the individual places on the potential reward.

   Example: The laptop must be a reward I genuinely want (high valence). If I already own five laptops, the valence is low.

The motivation formula is often simplified as:
Motivation = Expectancy x Instrumentality x Valence

If any one of these factors is zero (e.g., the employee doesn't believe they can achieve the performance goal, or they don't value the reward), then motivation will be zero!

Key Takeaway: Managers must ensure goals are achievable (high expectancy), promise realistic rewards (high instrumentality), and ensure the rewards offered are actually valued by the employees (high valence).

Section 2.2.4: Motivation Methods in Practice (Theories Applied)

It's great to know the theories, but how does a business actually put them into practice? We use financial and non-financial motivators.

A. Financial Motivators (Payment Methods)

These methods aim to satisfy lower-level Maslow needs and appeal strongly to Taylor's 'Economic Man'.

• Time-Based Payments (Wages/Salaries):
  • Wages: Payment calculated hourly or weekly. Good for jobs where output is hard to measure (e.g., cleaners, retail assistants).
  • Salary: Fixed annual payment, often paid monthly. Provides security (Safety need, Maslow).
• Piece Rates: Payment based on the number of units produced (direct link to Taylor). Encourages high output, but may sacrifice quality.
• Commission: Payment based on the value of sales achieved (e.g., car salespeople get 10% commission on the price of the car they sell). Strong motivator for high-risk roles.
• Bonuses: A lump sum paid usually for achieving specific, agreed targets (e.g., end-of-year profit target bonus). Highly effective if linked clearly to performance (Vroom).
• Profit Sharing: A proportion of the company’s annual profits is divided among the employees. Encourages a sense of teamwork and ownership (Affiliation need, McClelland).
• Performance-Related Pay (PRP): A salary increase or bonus based on individual performance appraisal. Must be fair and transparent to avoid demotivation.
• Fringe Benefits (Perks): Non-cash rewards provided by the employer (e.g., company car, private healthcare, subsidised meals). Often tax-efficient and boost status (Herzberg Hygiene/Maslow Safety/Esteem).

B. Non-Financial Motivators (Job Design and Involvement)

These methods are championed by theorists like Mayo and Herzberg, aiming to satisfy higher-level needs (Esteem and Self-Actualisation).

1. Training, Promotion, Development, and Status

• Training & Development: Investing in an employee's skills. Shows recognition and allows for achievement and career growth (Motivator, Herzberg).
• Opportunities for Promotion & Status: Achieving a higher role satisfies Esteem and Power needs. Status can be conferred through job titles, corner offices, or better parking spots.

2. Job Redesign Methods (Improving the Job Content)

• Job Enlargement (Horizontal Loading): Adding more tasks of a similar level to an employee’s job. It reduces monotony but may not increase responsibility. (Example: A cashier is also given the job of restocking shelves).
• Job Rotation: Moving employees between different jobs in a planned way. Increases variety and understanding of the business, but requires training.
• Job Enrichment (Vertical Loading): Giving the employee more challenging tasks and greater responsibility, decision-making power, and control over their own work. This is highly motivational (Herzberg Motivator: Responsibility).

3. Involvement and Participation

• Team Working: Organizing production and tasks around groups. Encourages social interaction and shared achievement (Mayo, McClelland nAff).
• Participation and Empowerment: Giving workers the authority to make decisions, set their own goals, and manage their own resources. This directly addresses Maslow’s Self-Actualisation and Herzberg’s Responsibility.
• Ways employees can participate in the management and control of business activity:
  • Works Councils: Formal groups of elected employees who meet regularly with management to discuss strategy and working conditions.
  • Employee Representatives: Union representatives or elected individuals who formally represent the workforce’s views in negotiations (like collective bargaining, 2.1.7).
  • Quality Circles: Small groups of workers who meet regularly (often voluntarily) to discuss production problems and suggest solutions.

Final Key Takeaway: Effective management uses a balance of financial rewards (for basic needs and efficiency) and non-financial rewards (for long-term commitment and high-level satisfaction). The best approach depends heavily on the culture of the business and the specific needs of the employee (McClelland/Vroom).