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
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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