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Summary Motivation in Theory & in Practice
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Explains why motivation is important to a business, the financial and non-financial incentives a business can offer its employees, and the different motivation theories from Maslow, Mayo, Taylor and Herzberg

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  • September 27, 2020
  • 3
  • 2019/2020
  • Summary

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Theme 1 Topic 7
Motivation in Theory & Practice
The Importance of Motivation to a Business
Motivation

 A willingness to apply effort towards a particular goal
 The factors that inspire an employee to complete a task at work
 A motivated workforce is more likely to produce higher levels/quality of output

Benefits to a company with a motivated workforce:

 Low absenteeism – workers would want to go to work = increased productivity and lowers costs as
business doesn’t have to find replacements
 Low labour turnover – businesses don’t have to recruit and train new staff = keeps costs low
 Improved labour productivity – more products made = more can be sold
 Easier to recruit new employees – good reputation attracts more applicants = shorter recruitment
period



Motivation Theories
Maslow’s Hierarchy of Needs

Employees have several needs met through employment:

 Physiological
 Safety
 Social
 Esteem
 Self-actualisation

Only when a lower level need has been met would employees
want to have needs higher up the hierarchy to be satisfied at work.

Mayo

Between 1927 and 1932, Mayo conducted a series of experiments at Hawthorne. The first was the Relay
Assembly Test. Six volunteer female assembly staff were separated from their workmates. A series of
experiments was carried out. Every 12 weeks a new working method was tried. The alternatives included:

 Different bonus methods (e.g. individual vs group bonuses)
 Different rest periods
 Different refreshments
 Different work layout

Without exception, productivity increased with every change. At the end the group returned to the original
method and output went up to the highest yet.

Conclusions:

 They gained satisfaction from their freedom and control over their working environment
 Group norms developed which were influenced by informal rather than formal group leaders
 Communication between workers - managers and worker - worker influenced morale and output
 Workers are affected by the degree of interest shown in them by their managers – the influence of
this on motivation is called the Hawthorne Effect

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