Chapter 11: Motivation

Question 1

Motivation

Answer 1

Internal and external factors that encourage workers to be continually interested and committed to their job

Question 2

Benefits of well-motivated workers

Answer 2

Low labour turnover
Low absenteeism
High productivity
Make suggestions for improvement
Prepared to accept responsibility

Question 3

Taylor’s scientific approach to improving worker output

Answer 3

Select workers
Observe them performing the task
Record the time taken
Identify the quickest method
Train all workers using the most effective method
Supervise workers and watch their progress/time
Pay workers based on results

Question 4

Economic man theory

Answer 4

Paying people more money for more work will encourage more people to work. It is the only factor in motivating an employee

Question 5

Piece rate

Answer 5

Payment to a worker for each unit produced

Question 6

Mayo’s theory of motivation - the human relations theory

Answer 6

1. Changes in pay and conditions are ineffective in productivity
2. Consultation with workers improves motivation
3. Working in teams improves productivity
4. Giving workers some control improves motivation
5. Groups establish their own targets which informal features can influence

Question 7

Maslow’s hierarchy of needs

Answer 7

Physical needs- Food, shelter, water
Safety needs- job security, health and safety at work
Social needs- trust, acceptance, friendship
Esteem needs- Respect, status
Self-actualisation- Reaching one’s full potential

Question 8

Limitations of Maslow’s hierarchy

Answer 8

Not everyone has the same needs
It is difficult to identify which needs have been met
Money is necessary to satisfy physical needs
Self-actualisation is never permanently reached

Question 9

Motivators

Answer 9

Aspects of a workers job that can lead to positive job satisfaction

Question 10

Hygiene factors

Answer 10

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

Question 11

Job enrichment

Answer 11

Aims to use the full capabilities of workers by giving them the opportunity to do more challenging work

Question 12

Nature of job enrichment

Answer 12

Have Variety
Produce a meaningful unit of work
Create chances for personal development
Require workers to show responsibility
Give workers more autonomy
Requires high knowledge and skills

Question 13

McClelland’s 3 motivational theories

Answer 13

Achievement motivation: Motivated by sense of achivement
Authority motivation: Motivated by sense of authority
Affiliation motivation: Motivated by interactions with other people

Question 14

Vroom and expectancy theory: Individuals can be motivated if:

Answer 14

There is a positive link between effort and performance
Favourable performance will result in a desirable reward
The reward will satisfy an important need
The desire to satisfy the need is enough to make work worthwhile

Question 15

Vroom and expectancy theory

Answer 15

Valence- Depth of desire of an employee for a reward

Expectancy- Extent of the belief that better work = better rewards

Instrumentality- Confidence of employees that they will actually get what they desire

Question 16

Financial motivators

Answer 16

Time-based wage rate- Payment per hour worked

Piece rate- Payment per unit produced

Salary- Annual income paid on a monthly basis

Commission- Payment to a salesperson for each sale

Bonus payment- Additional payment on top of wage

Performance-related pay- Bonus for above-average work

Profit sharing- Bonus based on profits

Share ownership schemes- Gives employees shares or allows them to buy them at a discounted price

Fringe benefits- benefits given separate from pay

Question 17

Non-financial motivators

Answer 17

Job rotation- Allows employees to switch jobs

Benefits..
.Rotation may relieve boredom of doing one task or monotonous work
.It can give the worker several skills further making the workplace more flexible
.Workers are more able to cover for a colleague in their absence.

Limitations…
.It does not increase empowerment or responsibility for the work being performed.
.It does not give the worker a complete unit of work to produce, but instead a series of separate tasks.

Job enlargement- Broadening/deepening tasks undertaken
Job enlargement
This is an attempt to increase the scope of a job, in other words, give a wider range by broadening or deepening the tasks that are undertaken.

Job enrichment
This involves the process of a reduction of supervision for employees as workers take more responsibility for their own work and are allowed some degree of decision making authority.

Benefits..
.Direct progress of performance is given to the workers, therefore they are able to have an awareness of their own progress.

.Challenging tasks are offered as part of a range of activities.

.Lack of employee training or skills to cope with the greater depth of tasks can result in lower productivity.

Job enrichment- Gives employees responsibility and decision-making authourity

Job redesign- Restructuring of the job

Training and development- Gaining new and advanced skills

Employee promotion- Advancement of an employee within a business

Employee status- The level of recognition offered by an employer

Question 18

Employee participation in management

Answer 18

Teamworking- Groups of workers undertake tasks

Empowerment- Giving skills to employees so they make decisions and be accountable for their work

Quality circle- A voluntary group of workers who discuss and try to resolve work-related problems

Question 19

Herzberg’s two-factor theory: motivators

Answer 19

Job satisfaction results from five main factors:
1. Achievement
2. recognition for achievement
3. work itself
4. responsibility
5. Advancement

Question 20

Herzberg’s two-factor theory: dissatisfaction

Answer 20

Job dissatisfaction results from five main factors:
1. company policy
2. Supervision
3. Salary
4. working conditions
5. relationships`

Question 21

What are content theories?

Answer 21

These are theories that believe that individuals are motivated by their desire to fulfil their inner needs.

Question 22

What is the relevance of Taylors theory up to date?

Answer 22

Helps identify the quickest and most efficient method of production

Monitoring of employees. This was initially used in order to scare employees, however, with the consent of employees, business can use it to monitor and track the progress of workers.

Piece rate. Still widely used in manufacturing businesses .

Question 23

What is the economic man theory?

Answer 23

This theory brings about the idea that people will make decisions on what they think will Maximise their well being and bring them more financial gain.

Question 24

What was Elton Mayo’s belief based on?

Answer 24

His theory was based on the Hawthorne effect. He believed factors such as working conditions and lighting can motivate workers. He also believed that workers are not only motivated by money, but also by social needs too.

Question 25

What is the relevancy of Mayo’s theory to businesses today?

Answer 25

Increase in the trend of giving workers more of a role in business decision making. This is known as worker participation.

Question 26

What are the disadvantages to Maslow’s heirchary of needs?

Answer 26

Not everyone has the same needs.

Self actualization can never actually be met.

Question 27

What are the Hygiene factors?

Answer 27

Working conditions

Pay

Relationship with other workers.
These factors have to be present in order to avoid dissatisfaction , however, these factors alone do not provide satisfaction. Motivators would be needed.

Question 28

What is the relevancy of Herzberg theory for businesses today?

Answer 28

Teamworking is being more used

More firms are looking for effective ways to improve communication.

Question 29

What are process theories?

Answer 29

These aim to figure out what people think about before they decide to put in effort into a particular activity.

Question 30

What is Valiance?
Expectancy?
Instrumentality?

Answer 30

➤Valence; The depth of desire for an extrinsic reward, such as money, and an intrinsic reward such as satisfaction.

➤Expectancy:The degree to which people believe that putting in effort in work can lead to a given level of performance. If you work harder, your results will show accordingly.

➤Instrumentality:The confidence of the employees that they will actually get what they desire even if it has been promised by the manager.

Question 31

What are the advantages and disadvantages of Time based wage rate?

Answer 31

Advantages; It offers security over pay levels

Different rates can be offered to different types of work

Disadvantages; There is no incentive to increase output as the payment is not directly linked to output.

Question 31

What are the advantages and disadvantages of piece rate.

Answer 31

Advantages; Provides the workers with an incentive to increase levels of output

It is easy to calculate labour costs per unit.

Disadvantages; Quality is affected

No security over pay levels.

Question 32

What are the advantages and disadvantages of salary

Answer 32

Advantages; Offers security over pay levels for employees

Suitable for jobs where output is not measurable- like in the service sector

Disadvantages; Can lead to low motivation and effort if the work of employees is not regularly checked or appraised.

Question 33

What are the advantages and disadvantages of commission payment?

Answer 33

Advantages; Provides an incentive for workers to increase sales

Can be offered as additional payment to the salary therefore providing security over payment.

Disadvantages; The employee can put pressure on the customers to make purchases

Can discourage a teamworking spirit amongst employees.

Question 34

What are some advantages and disadvantages of bonus payment?

Answer 34

Advantages; Can create an incentive for workers to do well.

An addition to basic salary therefore providing security over pay levels

Disadvantages; Can cause demotivation if the bonus is not received

Damages team spirit when some workers receive a bonus and others do not.

Question 35

What are some advantages and disadvantages of PRP?

Answer 35

Advantages; Individual bonuses for meeting pre set targets can encourage workers to work hard and meet these targets

Disadvantages; If the bonus is low, this might not lead to greater effort as motivation might decrease.

Managers might show favoritism to some employees by giving them larger bonuses

Question 36

What are the disadvantages and advantages of profit sharing?

Answer 36

Advantages- It aims to increase commitment of the workforce in order to make the business profitable

It may lead to suggestions for cost cutting and ways to increase sales

Disadvantages; It may only be a small proportion of total profits so it is not motivating.

Shareholders might object as it reduces profits for them

It reduces profit retained for expansion.

Question 36

What are the advantages and disadvantages of shareholder schemes?

Answer 36

Advantages’
It reduces the conflict between owners and workers.

It encourages an increased sense of belonging and commitment

Disadvantages-
It may include a very small number of shares and therefore is not motivating

Shares might just be sold so there is no long term commitments

Managers often receive more shares so this might encourage resentment towards managers.

Question 37

What is a shareholder scheme?

Answer 37

This is gives workers shares of the company they work for allowing them to buy in discounts.