U16A1 P3 Assignment
(P3)- Outline how an organisation motivates its employees.
Motivation is a vital factor in business performance as motivation allows employees to work
harder, more efficiently and effectively, therefore business performance will vastly increase.
This will contribute to better sales and more customers, which will simultaneously increase
businesses’ profits. In this assignment, the motivation of employees at an organisation will
be outlined.
Motivation Theory
There have been several theorists who have researched and concluded as to how
motivating staff as part of an essential piece of management must be done. These theorists
are known as Taylor, Mayo, Maslow, Herzberg, McGregor, McClelland and Vroom. Overall,
motivation allows people to remain happier in their jobs, which will increase productivity,
since the services and tasks they do as part of their job are completed with the utmost care,
sincerity, and efficiency. This performance leads to a better brand image to customers,
which will increase the business’ customer base and sales, eventually leading to bigger
profits.
Taylor
Frederick Taylor had studied motivation in the USA at the Bethlehem Steel Company. He
concluded that all employees should earn their wages by being given targets on the amount
of materials that are to be moved. As a way to induce motivation between these employees
of hard labour, he believed that superior employees such as managers should give
employees a financial incentive, and that the loss of money or redundancy would be used as
a threat to convince employees to work to the best of their ability. This theory brought
about the idea of ‘piece rate’, where its principles define the idea that the more work one
does, the more they get paid and vice versa. Though this may improve motivation, the
speed at which the tasks are done will increase the likelihood of mistakes being made,
which can lead to customers not being satisfied. For example, this theory can be used for
employees at Morrisons, as the more sales cashiers make, the more they get paid, which
will persuade them to work harder and be more motivated though this can bring about
mistakes. Cashiers may scan items an incorrect amount of times, which can change the true
retail price of customers’ shopping. Monoux also does this by implementing financial
incentives such as government pension schemes for support staff such as maintenance
workers, or facility managers, to work hard in a more efficient manner.
Mayo
Several years after Taylor’s theory of motivation was made, Elton Mayo further explored
Taylor’s ideas as he believed that there was more to motivation rather than just pay. His
study found that after a number of experiments testing various factors like hours of work to
incentive schemes, rises in productivity were resulting from not just financial rewards, but
also management involvement, communication, and teamwork. As a result, Mayo
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