Motivation Theories

Week 21 Click to edit Master subtitle style Units 66

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The carrot or the stick?

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Questions

Financial 2, p384 Question 1, p375 Non-Financial Motivation p387 Question 2, p376 3, Case study, Question 3, p377 p388 study p380 Case

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Learning Outcomes

Explain the meaning of motivation in the business context and describe some of the theories of motivation Explain the difference between financial and non-financial methods of motivation Describe and provide examples of financial and non-financial methods of motivation that are commonly 3/18/12 Week 15: Theories of 44 used in businesses

What is Motivation?

Psychological process that gives behaviour purpose and direction An internal drive to satisfy an unsatisfied need Drives, ambitions, desires and needs that cause us to want to achieve something. Needs and how they can be satisfied, differ between people.
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Why is Motivation important in business?

Short-term: Lack of motivation may lead to reduced effort and a lack of commitment. Negative motivation: fear of redundancy/wage cuts. Long-term: lack of motivation may result in High levels of absenteeism
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Why are businesses interested in staff motivation? unit costs of Better productivity lead to lower
production sell product at a lower price than competitors. Less absenteeism employees happy in work Less staff turnover fewer people leaving/joining the business reduces training and HR costs. Improved industrial relations with Trade Unions.

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Contented workers give the firm a good reputation, making it easier to recruit the best workers. 3/18/12 Week 15: Theories of

Theories of Motivation

Content theories Process theories Content: explain the specific factors that motivate people. What drives behaviour? Maslow, McGregor, McClelland and Herzberg. Process: concerned with the thought processes that influence 3/18/12 Week 15: Theories of 88

Maslows Hierarchy of Needs

Selfactualisati on

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Maslows Hierarchy of Needs

Be what you want to be Respect / recognition Need to belong / affection Secure environment Food, clothes etc

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Maslow Hierarchy of Needs

Appeal: find out which level each individual is at and decide on suitable rewards. Problems: some categories do not exist for certain individuals. Rewards can appear in more than one category. When is a level satisfied?
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Exceptions as15: Theories of realised. Week Maslow 1111

Maslows Hierarchy of Needs: Criticisms

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Historical Developments in Management Theory

Around 1900 we find managers trying to place their theories on what they regarded as a thoroughly scientific basis. The early theorists can be divided into two main groups: 1. Practicing Managers- (eg. Taylor & Fayol) (Classical theorists) 2. Social Scientists- (eg. Mayo & McGregor) (Human relations 3/18/12 Week 15: Theories of theorists)

Historical Developments in Management Theory

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Practicing Managers- Reflect upon and theorise from personal experience, draw up principles. Focus on structuring of work and organisations. Very prescriptive to managers. Social Scientists- academics, research into human behaviour in workplace motivation, communication, leadership style, social behaviour.
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Taylors Scientific Theory

Developed at the beginning of the 20th century in Henry Fords factories

Why?

Taylor: regarded arrangements as haphazard and inefficient. Management: did not understand the shop floor allowed wasteful practice to continue.
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Craft to Mass production

http://www.youtube.com/watch?v=PvbG9

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Frederick Winslow Taylor

(Scientific Management)
Taylor was born in Philadelphia, Pennsylvania, to a wealthy Quaker family. In 1874, he became an apprentice machinist, learning of factory conditions at the grass-roots level. Spent much of his life working on the problem of achieving greater efficiency on the shop-floor, conducting experiments in improving 3/18/12 Week 15: Theories of labour productivity.

Frederick Winslow Taylor

Taylor thought that by analysing work, the "One Best Way" to do it would be found. Remembered for developing the time and motion study. He would break a job into its component parts and measure each to the second. One of his most famous studies involved shovels. He noticed that the workers used the same shovel for all materials. He determined that the most effective load was 2 1/2 lb, and found or designed shovels that for each material would scoop up that amount.
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Frederick Winslow Taylor

Then the supervisor, would teach it to the worker and make sure the worker did only those actions essential to the task. This is why is it referred to as scientific management as Taylor attempted to make a science for each element of work and restrict alternatives to remove human variability or errors. Taylor was not really concerned with other organisational or management issues, his focus was on efficiency. Taylor believed that by increasing specialisation and the division of labour, the production process would become more efficient.
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Frederick Winslow Taylor

He was writing at a time when factories were creating big problems for management who needed new methods for dealing with the management challenges.

Taylor was one of the first to attempt to systematically analyse behaviour at work. His model was the machine therefore his ideas are often characterised as the machine model of organisations. Each task was broken down to its smallest unit 3/18/12 to identify the best way to do each Week 15: Theories of

Taylorism

He is known for coinage of the term scientific management, a form of industrial engineering that established the organisation of work as in Ford's assembly line. This discipline moved management theory from early time-and-motion studies to the latest total quality control ideas. His approach is often referred to, as Taylor's Principles, or frequently as Taylorism. 3/18/12 Week 15: Theories of

Taylorism 4 Principles

Taylor developed four principles of Scientific Management: Replace rule-of-thumb work methods with methods based on a scientific study of the tasks. Scientifically select, train, and develop each worker rather than passively leaving them to train themselves. Cooperate with the workers to ensure that the scientifically developed methods are being followed. Divide work nearly equally between managers and workers, so that the managers apply scientific management principles to planning the work and the workers actually perform the tasks

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His ideas, as well as Henry Ford's, relating to efficiency became highly influential during the early days of the Soviet Union.
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Taylor and motivation

Workers are mainly motivated by pay.

Workers dont enjoy work and need close supervision and control

His theory of scientific management argued:

Managers should break down production into a series of small tasks Workers then given training and tools to work as efficiently as possible on one set task Workers then paid according to how much 3/18/12 they produce in Week 15: Theories of time (piece-rate a set period of

Taylor and motivation

However

Workers came to dislike this approach as they were given boring, repetitive task, and were treated like human machines. Firms (like Ford) could afford to sack workers as productivity levels increased. Lead to more strikes and industrial 3/18/12 Week 15: Theories of action by dissatisfied workers.

http://www.youtube.com/watch?v=CYbsB Mass Production : Ford Pt 2

http://www.youtube.com/watch?v=kFsBC

http://www.youtube.com/watch?v=PvbG9

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Taylors Scientific Theory

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Taylors Scientific Theory

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Taylor: Arguments in Favour of Money as a Motivator

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Taylor: Arguments Against Money as a Motivator

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Taylors Scientific Theory: Weakness

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Motivation money?

Implementation of Taylors ideas had some success. However in 1920s and 30s some applications led to industrial unrest. Recognition of other factors affecting motivation.

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Human Relations Theories

Hawthorne Studies 1927-32 (Elton Mayo) Changes made in incentive schemes rest periods, hours of work, lighting, heating etc. Conclusion: changes in financial incentives and conditions - little effect on productivity. Cohesion and communication 3/18/12 Week 15: Theories of 3333 between workers as they interacted

Mayo and motivation

Workers not just motivated by money, but more importantly by having their social needs met at work

managers taking more of an interest in workers, treating them with respect and allowing them to interact and work in groups.
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Elton Mayo: Human Relations Model

Elton Mayo found out that the social contacts a worker has at the workplace are very important and that boredom and repetitiveness of tasks lead to reduced motivation. Mayo believed that workers could be motivated by acknowledging their social needs and making them feel important. As a result, employees were given freedom to make decisions on the job and greater attention was paid to informal work groups. Mayo named the model the Hawthorne effect. The problem with his modelTheories of reliance on social 3/18/12 Week 15: is undue

Mayo and motivation

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Mayo concluded workers are best motivated by: Better communication between managers and workers. Greater management involvement in employees working lives Working in groups or teams

In practice, businesses should reorganise workers and production processes into groups and teams, and introduce personnel departments to encourage greater manager involvement in employees interests.

Elton Mayo: Human Relations Model

Elton Mayo found out that the social contacts a worker has at the workplace are very important and that boredom and repetitiveness of tasks lead to reduced motivation. Mayo believed that workers could be motivated by acknowledging their social needs and making them feel important. As a result, employees were given freedom to make decisions on the job and greater attention was paid to informal work groups. Mayo named the model the Hawthorne effect. The problem with his modelTheories of reliance on social 3/18/12 Week 15: is undue

Frederick Herzberg (1966)

Theory suggests that things which prevent dissatisfaction are NOT the same as things which create satisfaction Both the approaches (hygiene and motivational) should be done simultaneously to be effective Professional and managerial staff NOT shop floor workers
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Herzbergs Two-Factor Theory

Dissatisfaction and De-motivation
Wages, and other financial remuneration Quality of supervision Quality of interpersonal relations Working conditions Feelings of job security

Not dissatisfied but not de-motivated

Satisfaction and Motivation

Status Recognition Challenging / stimulating work

Hygiene Factors (Avoid Unpleasantne ss)

Motivator Factors (Create Satisfaction)

Responsibility

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Maslows Hierarchy of Needs

Be what you want to be Respect / recognition Need to belong / affection Secure environment Food, clothes etc

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Job enrichment

Herzberg argues that only the higher levels of Maslows hierarchy actually motivate workers. Idea of job enrichment: workers have their jobs expanded so that they can experience more of the production process. More involvement, higher motivation and a greater sense of achievement.
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Theory suggests that things which

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McGregors Theory X and Y

Theor yX Theor yY

Lack integrity Avoid responsibility Work as little as possible Prefer to be told what to do

Have integrity Work towards objectives Want to achieve Will make decisions

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Douglas McGregor: Theory X or Theory Y?

Every management action rests on theory

Theory X: traditional view of direction and control Most people dislike work and will try to avoid it They must Week 15: Theories of controlled, be coerced,

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Douglas McGregor: Theory X or Theory Y?

Theory Y: integration of individual and organisational goals External control and threat are not the only means of directing effort People can exercise self-direction and control towards objectives to which they are committed Under proper conditions people will seek more responsibility

Imagination, ingenuity and creativity can be encouraged in 3/18/12 solution of organisational problems Week 15: Theories of the

Douglas McGregor: Theory X or Theory Y?

Those who see workers as Theory X have different policies (control, time recording, supervision) than those who hold Theory Y assumptions (responsibility, trust, initiative) e.g. Recognising potential at 3M Hofstede (1989) (Section 15.6) showed that assumptions about work also vary between countries
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Process theories goal setting theory

Locke (1968) goals affect motivation Challenging but achievable goals motivate Specific goals motivate more than vague ones Participation in setting goals is motivating

Knowing results of past performance is necessary to motivation 3/18/12 Week 15: Theories of