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2.4: Motivation and Demotivation

What is Motivation

  • Motivation is the desire, effort, and passion to achieve something. It's the willingness to complete tasks with purpose. 

  • Businesses see employees as valuable assets and seek to motivate them for maximum job satisfaction, morale, and productivity. 

  • Motivation theory helps managers understand what motivates people to achieve organizational objectives.

F.W’s Taylor Systemic Management Theory

  • Frederick Winslow Taylor's theory focused on improving productivity through scientific methods. He emphasized:

  • Financial motivation: Rewarding workers based on output.

  • Task specialization: Dividing tasks and assigning them to specific workers.

  • Managerial control: Managers planning, directing, and controlling all aspects of work.

  • While influential, Taylor's theory has been criticized for its narrow focus on financial motivation and potential for demotivation.

Maslow’s Hierarchy

  • Abraham Maslow's theory focused on the psychological needs of workers, suggesting that people are motivated by more than just pay. He proposed a hierarchy of needs:

  • Physiological needs: Basic necessities like food, water, shelter, and sleep.

  • Safety needs: Security, stability, and protection from harm.

  • Love and belonging needs: Social acceptance and connection.

  • Esteem needs: Recognition, respect, and a sense of accomplishment.

  • Self-actualization: Reaching one's full potential.

  • Criticisms of Maslow's Theory:

  • Difficulty measuring needs: Quantifying psychological needs is challenging.

  • Assumed order of needs: Not everyone follows the same order.

  • No explanation for post-self-actualization motivation: What drives individuals after achieving self-actualization?

Herzberg’s Two Factor Theory

  • Herzberg's theory focused on understanding the factors that cause satisfaction and dissatisfaction at work. He identified two categories:

  • Hygiene factors: Factors that prevent dissatisfaction but don't motivate. Examples include pay, working conditions, job security.

  • Motivators: Factors that lead to satisfaction and performance. Examples include achievement, recognition, responsibility, advancement.

  • Herzberg argued that hygiene factors must be met to avoid dissatisfaction, while motivators are crucial for increasing satisfaction. He advocated for job enlargement, enrichment, and empowerment to improve motivation.

  • Criticisms of Herzberg's Theory:

  • Limited applicability: May not apply to all occupations, especially low-skilled or low-paid jobs.

  • Individual differences: What motivates one person may not motivate another.

  • Changing motivations: People's motivations can change over time.

  • Herzberg's theory provided a new perspective on workplace motivation, emphasizing the importance of both hygiene factors and motivators. However, it's important to consider its limitations and recognize that individual motivations can vary.

​Mc-Cleland Acquired Needs Theory (HL Only)

  • McClelland's theory focused on understanding how people's needs influence their motivation. He identified three key needs:

  • Need for Achievement (n-Ach): Moderate risk-taking, personal success, self-reflection.

  • Need for Power (n-Pow): Desire to influence others, institutional or personal power.

  • Need for Affiliation (n-Aff): Strong social relationships, avoids conflict, teamwork.

  • McClelland believed that these needs vary in intensity among individuals and can be influenced by parental, cultural, and educational factors. Managers can use this understanding to allocate jobs and tasks that align with employees' needs, boosting motivation and productivity.

Deci and Ryan’s Self Determination Theory (HL Only)

  • SDT focuses on understanding what motivates people and emphasizes the importance of intrinsic motivation. Deci and Ryan identified three core requirements for facilitating growth:

  • Autonomy: Control over one's actions, leading to a sense of integrity.

  • Competence: Feeling confident and effective, leading to a sense of mastery.

  • Relatedness: Meaningful connections with others, leading to a sense of belonging.

  • SDT suggests that these needs are essential for intrinsic motivation, which leads to engagement, fulfillment, and value. It can help employers develop and engage their workforce and individuals to achieve professional success.

  • Key Points:

  • Intrinsic motivation: Internal drive, not external rewards.

  • Three core requirements: Autonomy, competence, relatedness.

  • Positive impact: Personal and professional growth, engagement, fulfillment.

  • Workplace implications: Developing and engaging employees.

Equity and Expectancy Theory
 

  • Equity Theory (Adams, 1963) states that employees compare their inputs (efforts, contributions) to their outputs (rewards) with those of others. They are motivated when they perceive a fair balance between their inputs and outputs compared to their peers.

  • Key points:

  • Equity norm: Employees expect fair treatment based on their contributions.

  • Social comparison: Employees compare themselves to peers.

  • Inequity: Perceived unfairness can demotivate employees.

  • Cognitive distortion: Employees may adjust their inputs or outputs to achieve perceived equity.

  • Expectancy Theory (Vroom, 1964) suggests that employees are motivated when they believe their efforts will lead to good performance, which will result in desired outcomes.

  • Key points:

  • Expectancy: Belief that effort leads to performance.

  • Instrumentality: Belief that performance leads to rewards.

  • Valence: Value placed on rewards.

  • Motivation: Product of expectancy, instrumentality, and valence.

  • Both theories emphasize the importance of perceived fairness and the relationship between effort, performance, and rewards in motivating employees.

Labour turnover

  • Labour turnover measures the percentage of employees leaving an organization within a specific period, usually a year. It's calculated by dividing the number of staff leaving by the total number of staff.

  • Reasons for Labour Turnover:

  • CLAMPS: Challenge, Location, Advancement, Money, Pride, Security.

  • Demotivation or dissatisfaction.

  • Impact of High Labour Turnover:

  • Increased costs: Recruitment, training, lost productivity.

  • Negative perception: Suggests incompetence or dissatisfaction among staff.

  • Costly: Can exceed £30,000 per employee in the UK.

  • Factors Affecting Labour Turnover:

  • Organization type: Businesses with part-time or temporary staff often have higher turnover.

  • Motivation and culture: Motivated and valued employees are more likely to stay.

  • Benefits of Low Labour Turnover (Staff Retention):

  • Continuity: Reduces disruption and adjustment time for new employees.

  • Cost savings: Avoids recruitment and training costs.

  • Increased productivity: Experienced staff are more efficient.

  • Employee loyalty: Fosters a positive work environment.

What is an appraisal

  • Appraisals are formal assessments of an employee's performance against their job description. 

  • They typically occur annually or quarterly and involve discussions between the employee and a more senior manager.

  • Benefits of Appraisals:

  • Professional development: Provides opportunities for discussion, feedback, and growth.

  • Two-way communication: Allows employees to share concerns, training needs, and aspirations.

  • Performance enhancement: Supports employees in improving their performance.

Advantages and Disadvantages of Appraisals

  • Advantages of Appraisals

  • Setting targets: Leads to positive changes and professional development.

  • Recognition: Allows managers to praise employees objectively.

  • Feedback: Provides constructive feedback for improvement.

  • Employee input: Valuable feedback from employees helps the organization adapt and improve.

  • Disadvantages of Appraisals

  • Time-consuming: Can be costly to conduct properly.

  • Subjectivity: Perceptions and relationships can influence feedback.

  • Offense: Employees may be offended by feedback on weaknesses.

  • Lack of skills: Appraisers may lack the necessary skills or confidence.

Formative appraisal

  • Formative appraisal is an ongoing process that uses data and evidence to inform employees about how to improve their work practices. It's a performance management tool that encourages employees to reflect on their contributions and seek feedback.

  • Key features:

  • Planned and ongoing: Continuously monitors and provides feedback.

  • Informative: Provides data and evidence to guide improvement.

  • Performance management: Encourages employee reflection and development.

Summative Appraisal

  • Summative Appraisal

  • A summative appraisal is a written evaluation of an employee's performance over a specific period, typically a year. It summarizes achievements, provides recommendations for improvement, and is used to hold employees accountable for their work.

  • Key features:

  • Written description: Summarizes performance and achievements.

  • Recommendations: Provides targets for improvement.

  • Accountability: Holds employees accountable for their work.

  • Evaluation: Compares performance to predetermined standards.

360 Degree Appraisals

  • 360-degree appraisals collect feedback on an employee's performance from multiple stakeholders, including peers, subordinates, managers, and external parties. This method is often used for appraising managers to provide comprehensive feedback for improvement.

  • Advantages:

  • Comprehensive feedback: Provides insights from various perspectives.

  • Improved performance: Can help managers identify areas for development.

  • Disadvantages:

  • Relies on opinions: May not always be based on factual evidence.

  • Not suitable for all businesses: May not be appropriate in all organizational cultures.

  • Key considerations:

  • Method selection: The specific method used is less important than the value of the information provided.

  • Cultural factors: Group norms and sub-cultures can influence the appropriateness of 360-degree appraisals.

Self-Appraisal

  • Self-appraisal involves employees evaluating their own performance based on predetermined criteria. It requires honesty about strengths and weaknesses and setting realistic improvement goals.

  • Key features:

  • Self-evaluation: Employees assess their own performance.

  • Honesty: Requires honest assessment of strengths and weaknesses.

  • Goal setting: Sets realistic targets for improvement.

  • Comparison: Often compared to manager's assessment for objectivity.

​Financial Rewards

  • Salary: Fixed annual payment, easy for budgeting but doesn't incentivize exceeding expectations.

  • Wages: Payment based on time (hourly, daily, weekly) or output (piece rate). Can create disincentive to work harder if pay is based solely on time.

  • Commission: Percentage of sales or output earned, motivating higher productivity but potentially sacrificing quality for quantity.

  • Performance-related Pay (PRP): Bonuses or pay raises based on achieving predetermined goals. Encourages good performance but can be stressful and have limitations depending on the profession.

  • Profit-related Pay: Bonuses tied to company profits, fostering teamwork but the bonus amount might be insignificant.

  • Employee Share Ownership Schemes: Grants employees company shares, aligning their interests with the company's success. However, it may not be practical for all businesses.

  • Fringe Benefits: Additional financial perks beyond salary/wages (health insurance, gym memberships, etc.) that improve employee well-being and loyalty but can be costly for businesses.

Non Financial Rewards

  • Job Enrichment: Makes jobs more challenging and interesting, increasing employee responsibility and growth. However, it requires training and can lead to stress if not implemented correctly.

  • Job Rotation: Employees perform different tasks at the same level, reducing boredom and increasing skillset. Drawbacks include training costs and the perception of just adding workload.

  • Job Enlargement: Broadens the tasks an employee performs within the same role, reducing monotony. However, employees might see this as more work for the same pay and lose motivation.

  • Empowerment: Gives employees authority and control over their work, boosting initiative and pride. Requires careful delegation with the right skills and resources provided by managers.

  • Purpose: Employees are motivated by the opportunity to make a difference in the world. This aligns with jobs like social work or healthcare.

  • Teamwork: Working with colleagues fosters a sense of belonging, reduces boredom, and improves overall productivity and flexibility.

What is training

  • Training is the process of providing employees with opportunities to learn and acquire job-related skills and knowledge. 

  • The amount and type of training vary depending on the job. 

  • Some professions, like legal and medical, require ongoing training, while others, like low-skilled machine operators, may only need basic training. 

  • Training is considered a valuable investment in an organization's most valuable asset: its employees.

​Objectives of training

  • To enhance the efficiency and productivity of employees.

  •  To improve the quality of work of employees, including the quality of customer service. 

  • To develop a more multi-skilled, dynamic and creative workforce. To facilitate the personal and professional development of employees. 

  • To help employees adapt to change (including organizational, technological, social and legal changes). 

Benefits of training

  • Improved performance: More skilled and flexible workforce leads to better outcomes.

  • Reduced waste: Less rework due to errors.

  • Lower costs: Increased efficiency and productivity.

  • Higher morale: Employees feel valued and confident, leading to reduced absenteeism and turnover.

  • Promotion opportunities: Skilled employees are more likely to be promoted.

  • Improved quality: Increased confidence and competence lead to better output.

Drawbacks

  • Financial costs: Course fees, lost productivity during training.

  • Time-consuming: Planning and implementation can be time-intensive.

  • No guarantee of retention: Employees may leave after being trained.

Induction Training

  • Induction training is a program designed to introduce new employees to the organization and help them settle into their new roles. It covers topics like:

  • Organizational culture: Helps new hires understand the company's values and norms.

  • Job role and responsibilities: Clarifies expectations and duties.

  • Procedures and policies: Familiarizes employees with company rules and practices.

  • Integration: Helps new employees feel welcome and supported.

  • Benefits of Induction Training:

  • Clarity and expectations: Establishes clear expectations and work habits.

  • Cultural understanding: Helps new hires understand the company culture.

  • Quick integration: Enables new employees to contribute sooner.

  • Boosted morale: Makes new employees feel welcome and confident.

On the job training

  • On-the-job training involves learning while working, often through observation, guidance, and hands-on practice.

  • Demonstration: Observing and practicing tasks under supervision.

  • Shadowing: Learning from experienced colleagues.

  • Job rotation: Performing different tasks to gain experience.

  • Practice simulations: Training in realistic work scenarios.

  • Mentoring: Guidance and support from a more experienced colleague.

  •  

  • Advantages of On-the-Job Training:

  • Cost-effective: Utilizes in-house expertise.

  • Relevant: Directly addresses the firm's needs.

  • Minimal disruption: Trainees remain in the workplace.

  • Relationship building: Fosters teamwork and collaboration.

  • Convenience: No need for off-site training.

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