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CAPE MANAGEMENT OF BUSINESS UNIT 1

----------------------------------------------------------------------------------------------------------------------------------------------Motivation Companies can motivate employees to do a better job than they otherwise would. Incentives that can be offered to staff include increased pay or improved working conditions. Motivational theories suggest ways to encourage employees to work harder. What is motivation? Motivation is about the ways a business can encourage staff to give their best. Motivated staff care about the success of the business and work better. A motivated workforce results in: A manager needs to be able to motivate their staff

Increased output caused by extra effort from workers. Improved quality as staff takes a greater pride in their work. A higher level of staff retention. Workers are keen to stay with the firm and also reluctant to take unnecessary days off work. Managers can influence employee motivation in a variety of ways: Monetary factors: some staff work harder if offered higher pay. Non monetary factors: other staff responds to incentives that have nothing to do with pay, eg improved working conditions or the chance to win promotion. Payment methods Managers can motivate staff by paying a fair wage. Payment methods include:

Time rate: staff are paid for the number of hours worked. Overtime: staff are paid extra for working beyond normal hours. Piece rate: staff are paid for the number of items produced. Commission: staff are paid for the number of items they sell. Performance related pay: staff get a bonus for meeting a target set by their manager. Profit sharing: staff receive a part of any profits made by the business. Salary: staff are paid monthly no matter how many hours they work. Fringe benefits: are payments in kind, eg a company car or staff discounts. Non-pay methods of motivation Managers can motivate staff using factors other than pay through:

Job rotation: staff are switched between different tasks to reduce monotony. Job enlargement: staff are given more tasks to do of similar difficulty. Job enrichment: staff are given more interesting and challenging tasks. Empowerment: staff are given the authority to make decisions about how they do their job.

Putting groups of workers in a team who are responsible together for completing a certain task. Motivational theories Managers can make use of a number of motivational theories to help encourage employees to work harder. Maslow argues that staff can be motivated through means other than pay Taylorism argues that staff do not enjoy work and are only motivated by threats and pay. Managers motivate staff by organising employees' work and paying by results, eg piece rate pay - payment per item produced. Maslow suggests there are five hierarchies or levels of need that explain why people work. Staff first want to meet their survival needs by earning a good wage. Safety needs such as job security then become important, followed by social, self-esteem and self-fulfilment needs. Moving staff up a Maslow level is motivational.

Motivation Theory - Maslow Maslow's hierarchy of needs Maslow's Hierarchy of Needs is a "content theory" of motivation" (the other main one is Herzberg's Two Factor Theory). Maslow's theory consisted of two parts: (1) The classification of human needs, and (2) Consideration of how the classes are related to each other The classes of needs were summarized by Maslow as follows:

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How does the Hierarchy Work? - A person starts at the bottom of the hierarchy (pyramid) and will initially seek to satisfy basic needs (e.g. food, shelter) - Once these physiological needs have been satisfied, they are no longer a motivator. the individual moves up to the next level - Safety needs at work could include physical safety (e.g. protective clothing) as well as protection against unemployment, loss of income through sickness etc) - Social needs recognise that most people want to belong to a group. These would include the need for love and belonging (e.g. working with colleague who support you at work, teamwork, communication) - Esteem needs are about being given recognition for a job well done. They reflect the fact that many people seek the esteem and respect of others. A promotion at work might achieve this - Self-actualisation is about how people think about themselves - this is often measured by the extent of success and/or challenge at work Maslow's model has great potential appeal in the business world. The message is clear - if management can find out which level each employee has reached, then they can decide on suitable rewards. Problems with the Maslow Model There are several problems with the Maslow model when real-life working practice is considered: - Individual behaviour seems to respond to several needs - not just one - The same need (e.g. the need to interact socially at work) may cause quite different behaviour in different individuals - There is a problem in deciding when a level has actually been "satisfied" - The model ignores the often-observed behaviour of individuals who tolerate low-pay for the promise of future benefits - There is little empirical evidence to support the model. Some critics suggest that Maslow's model is only really relevant to understanding the behaviour of middle-class workers in the UK and the USA (where Maslow undertook his research). Maslow's hierarchy of needs: The basis of Maslow's theory of motivation is that human beings are motivated by unsatisfied needs and therefore, certain lower needs need to be satisfied before higher needs can be addressed. According to Maslow, there are general needs (physiological, safety, love and esteem) which have to be fulfilled before a person is able to act unselfishly. These needs were known as "deficiency needs". While a person is motivated to fulfill these desires, they continue to move towards growth, and eventually self-actualization. The satisfaction of these needs is quite healthy. This hierarchy ascends from the lowest to the highest and he concluded that when one set of needs is satisfied, this kind of need ceases to become a motivator. Hierarchy of needs: (i) Physiological needs: These are essential for survival and human life. Food, water, warmth, shelter, sleep, medicine and education are the basic physiological needs that fall in the needs of satisfaction. Maslow stated, that until these needs were A+Academic Solutions
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satisfied to a degree to maintain life, only then will other motivating factors work. (ii) Security and safety needs: These are the needs to be free of danger and the fear of losing a job, property, food or shelter. It also includes protection from any emotional harm. (iv) Social needs: People need to feel like they belong and are accepted by others. People try to satisfy their need for affection, acceptance and friendship. (iv) Esteem needs: According to Maslow, once people begin to satisfy their need to belong, they tend to want to be held in esteem both my themselves and by others too. This kind of need produces such satisfaction as power, prestige status, and self confidence. It includes both internal esteem factors like self respect, achievements, autonomy and external factors such as states, attention and recognition. (v) Need for self-actualization: Maslow sees this as the highest need in his hierarchy. It is the drive to become what is capable of becoming; it includes growth, achievement, and self-fulfillment. it is to maximize one's potential to accomplish in becoming whatever they desire to be.

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MOB Unit 1