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Business IB > 2.4 Motivation > Flashcards

2.4 Motivation Flashcards

1
Q

Motivation

A

The intrinsic and extrinsic factors that stimulate people to take actions that lead to achieving a goal

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2
Q

Extrinsic motivation

A

Comes from external rewards associated with working on a task, for example pay and other benefits

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3
Q

Intrinsic motivation

A

Comes from the satisfaction derived from working on and completing a task

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4
Q

Indicators of poor staff motivation

A

Absenteeism

Lateness

Poor performance

Accidents

Labour turnover

Grievances

Poor response rate

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5
Q

What are the 5 motivation theories?

A

Taylor’s scientific management

Maslow’ hierarchy of human needs

Herzberg’s two factor theory

Adams’ equity theory

Pink’s theory

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6
Q

What was Taylor’s principle factor in motivation?

A

Workers are motivated by cash

Productivity can be improved by relating output/productivity to pay

Known as ‘economic man’

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7
Q

What were Taylor’s seven steps to improve worker productivity?

A

Select workers for a task

Observe them performing the task and not the key elements of it

Record the time taken to do each part of the task

Identify the quickest method recorded

Train all workers in the quickest method and do not allow them to make any changes to it

Supervise workers to ensure that it is being carried out

Pay workers based on the results

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8
Q

Taylor’s piece rate

A

Paying workers a certain amount for each unit produced

Encourages high output

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9
Q

Limitations of Taylor’s theory

A

Ignored non-financial motivators

Non-physical contribution may not be quantified

Repetitive and monotonous work – job dissatisfaction

Quality may not be as good

Workers will vary output depending on their economic need

Not accept change in case of losing money

Very autocratic leadership

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10
Q

What was Maslow concerned with?

A

Trying to identify and classify the main needs that humans have

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11
Q

What are the 5 human needs according to Maslow

A

Self actualisation - reaching one’s full potential

Esteem needs - respect from others, status, recognition of achievement

Social needs - trust, acceptance, friendship, belonging to a group

Safety needs - protection from threats, job security, health and safety at work

Physical needs - food, shelter, rest

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12
Q

How can a business reach self actualisation?

A

Challenging work that stretches the individual - give a sense of achievement.

Opportunities to develop and apply new skills will increase potential

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13
Q

How can a business reach esteem needs?

A

Recognition for work done well - status, advancement and responsibility will gain the respect of others

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14
Q

How can a business reach social needs?

A

Working teams or groups and ensuring good communication to make workers feel involved

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15
Q

How can a business reach safety needs?

A

A contract of employment with some job security - a structured organisation that gives clear lines of authority to reduce uncertainty. Ensuring health and safety condition are met.

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16
Q

How can a business reach physical needs?

A

Income from employment high enough to meet essential needs

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17
Q

Limitations of Maslow’s approach

A

Needs cannot be quantified

Money may be necessary to meet the levels such as status and esteem.

Self actualisation is never permanently achieved

Not everyone has the same needs or importance of each level

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18
Q

What was Herzberg’s two factors that affect motivation

A

Hygiene factors

Motivating factors

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19
Q

Hygiene factors

A

Aspects of a worker’s job that have the potential to cause dissatisfaction.

Eg: pay, working conditions, status and over-supervision by managers

20
Q

Motivating factors

A

Aspects of a worker’s job that can lead to positive job satisfaction.

Eg: achievement, recognition, meaningful and interesting work and advancement at work

21
Q

What did Herzber believe about money?

A

A business can offer higher pay, improved working conditions and less heavy handed supervision of work which would remove dissatisfaction, but would be quickly taken for granted.

If work is not interesting, rewarding or challenging, then workers will not be satisfied or will not be motivated to offer their full potential whatever the pay level offered to them.

22
Q

What did Herzberg believe were the motivating factors?

A

Assign workers complete units of work - giving workers the job of doing a small part of the finished product has been shown to not be fulfilling or rewarding and leads to it being repetitive and boring.

Provide feedback on performance - gives recognition for work well done, gives will to achieve even more

Give workers a range of tasks - challenge and stretch the individual even some being beyond the workers’ current experience.

23
Q

Criticism of Herzberg’s theory

A

Does not apply to low skill, low wage jobs

Some workers may not like the increased workload in job enrichment

His research was only on 200 professionally qualified workers

24
Q

Consequences of Herzberg’s theory

A

Team working is more widespread because of Herzberg’s findings, with whole units of work being delegated to groups.

Workers often made more responsible for the quality of their work rather than being closely supervised on their quality.

A lot of firms are looking for ways to improve effective communication, and group meetings allowing two way communication.

25
Q

What did Adam’s believe demotivated his employees?

A

If employees felt that their inputs are greater than their outputs.

Inputs include effort, loyalty, commitment and skill.

Outputs include financial rewards, recognition, security and sense of achievement.

26
Q

What was Adam’s belief of motivating employees?

A

Making the employee’s inputs and output balanced

Will make the employee feel like they are treated fairly

Will respond with a positive attitude and high levels of motivation

27
Q

What are the three elements that motivates people according to Pink?

A

Autonomy

Mastery

Purpose

28
Q

Autonomy (Pink)

A

Giving people real control over various aspects of their work - whether it is deciding what to work on or when to do it

29
Q

Mastery (Pink)

A

Sense of progress in work and ability

Tasks must not be too hard or too easy to foster improvement without causing boredom or frustration

Named it the Goldilocks tasks

30
Q

Purpose (Pink)

A

Contributing to a greater cause

Purpose and vision must be communicated

31
Q

What are the most common payment systems?

A

Salary

Wage: time based wage rate and piece rate

Commission

Performance related pay and bonuses

Profit related pay

Employee share ownership schemes

Fringe benefits (perks)

32
Q

Salary

A

Fixed annual rate paid on a monthly basis

Time-rate payment

Gives security of income

Suitable where output is not measurable

Little incentive to work hard due to consistent pay

Difficult to reward better workers

Can be improved by using appraisals

33
Q

Time based wage rate

A

Payment to a worker made for each hour worked

More income security than piece rate

Speed of work is not rewarded

34
Q

Piece rate

A

A payment to a worker for each unit produced

Encourages greater efforts and faster working

Able to set a price for the product

Requires output to be measurable and standardised

Leads to worse quality and safety levels

Little security over pay level

35
Q

Commission

A

A payment to a sales person for each sale made

Pays workers based on percentage of sales or output contributed rather than a fixed amount per unit like piece rate

Similar advantages and disadvantages to piece rate

36
Q

Profit related pay

A

A bonus for staff based on the profits of the business - usually paid as a proportion of basic salary

People believe profits should only go to the shareholders

Employees more committed to the success of the company

37
Q

Employee share ownership schemes

A

Giving shares for free or at a discount

Usually only given to senior management

Impractical for most companies

38
Q

Employee share ownership schemes

A

Giving shares for free or at a discount

Usually only given to senior management

Impractical for most companies

Quickly sold by workers

39
Q

Fringe benefits (perks)

A

Meets employee’s safety needs (Maslow) at a cost

Includes medical insurance, bonus schemes, company car, subsidised meals, discounts

Difficult to know the effect on productivity

40
Q

Non financial methods of motivation

A

Job enlargement

Job enrichment

Job rotation

Team working

Empowerment

41
Q

Job enlargement

A

Horizontal expansion by increasing scope of work required
Enhances employee pride in work, feeling of responsibility
May lower productivity or quality because of higher workload

42
Q

Job enrichment

A

Provides employee with more complex and fulfilling tasks

Adds sense of control, pride, and achievement

43
Q

Job rotation

A

Shifting of cross trained workers to other tasks

Allows understanding of different operating areas of business

Can reduce fatigue, since new tasks are assigned

44
Q

Employee empowerment

A

Employees are delegated tasks assigned to managers
Increases employee motivation and productivity

Managers must share:
Decision-making power
Rewards (based on organizational performance)
Knowledge/expertise needed to enhance performance

Employees must be highly skilled, motivated, and competent

Managers are ultimately still liable for whatever they delegate

45
Q

Teamworking

A

Staff work together on a task

Reduce boredom, build sense of belonging, greater flexibility

Adair Model

3 parts or effective teams
Tasks – must engage whole group
Team – must work collectively
Individual – needs of the individual are met

46
Q

Advantages of non financial methods of motivation

A

Everyone has an interest in higher profits

Likely to attract better recruits

Does not add business costs

If successful can increase business productivity

47
Q

Disadvantages of non financial methods of motivation

A

Reward not related to individual effort - might be demotivating

Schemes can be costly to set put and operate

profit shares at the end of the year unlikely to promote motivation throughout the year

Can dilute the value of existing shares

Business IB (39 decks)

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