Motivational Theories (SL IB Business Management)

• Motivation refers to the inner desire or willingness that propels a person to take action and achieve a specific goal or outcome
  • Motivation can be intrinsic, coming from within a person (values, beliefs etc)
  • Motivation can be extrinsic, coming from external factors (rewards or punishments)
     
• Motivation plays a critical role in a business's success and can have a significant impact on productivity, reliability and loyalty of the workers, and labour turnover rates
   

1. The impact of motivation on productivity

• Motivated employees are more productive and efficient as they are more likely to be engaged in their work and take initiative to meet or exceed their goals
• They will generate higher levels of output and quality
• Increased productivity results in higher profits for the business
    

2. The impact of motivation on the reliability of workers

• Motivated employees are more likely to be reliable and dependable
• They take pride in their job, show up on time, meet deadlines, and take fewer sick days
• This leads to increased trust between the business and its employees and higher productivity
  
  

3. The impact of motivation on turnover rates

• Motivated employees are more likely to stay with the company long-term which reduces the turnover rate
• Lower turnover rates reduce the need for costly recruitment and training

• Developed by Frederick Winslow Taylor in the early 20th century
• It focuses on breaking down complex tasks into simpler ones, standardising work processes, and providing workers with clear instructions and training to achieve maximum efficiency
• Many manufacturing businesses use Taylor's principles to structure their staff benefits e.g. piece rate pay
  • Production lines involving human labour are often set up based on these principles
    
    

Taylor's method starts with a scientific analysis of what is involved in a job and then breaks it down into parts for which employees can be trained

 

1. Study and analyse the work process

• Carefully analyse each step of the work process
• Break down complex tasks into simpler ones and identify the most efficient and effective way to perform each task
   

2. Standardise the work process

• This involves creating detailed procedures and instructions for each task so that workers can follow these procedures consistently
   

3. Select and train the workers

• Workers should be carefully selected based on their skills and abilities
• Train workers to perform their tasks efficiently and effectively
  • This training includes both technical skills and the proper attitudes/behaviours required to be successful (e.g patience in a repetitive task)
     

4. Provide incentives for performance

• Scientific management emphasises the use of incentives to motivate workers
  • This may include bonuses or piece-rate pay
     

Ways in which Businesses use Taylor's Scientific Management

How Businesses use Taylor's Approach	Advantages	Disadvantages
Workers are trained to perform only one task which they become very skilled at Workers are usually only paid for the completed work (piece rate pay) e.g. $0.16 per T-shirt completed by garment workers in Bangladesh	Increased efficiency which lowers costs Standardised procedures for work processes that everyone follows can help reduce errors and inconsistencies Specialisation of labour leads to greater efficiency and productivity Clear hierarchy and lines of authority can lead to more efficient decision-making and communication Improved training and development can lead to better performance and job satisfaction	Overemphasis on efficiency reduces worker satisfaction and creativity Workers may disengage from work if they are reduced to working in a machine-like system Limited applicability as this approach may not work for roles that require high levels of creativity, problem-solving, or interpersonal skills Potential for exploitation as this approach may be used to extract more work from workers without compensating them fairly e.g many 'sweat shop' labourers get paid using this method

• Maslow's Hierarchy of Needs is a theory of human motivation that outlines five tiers of human needs that must be met for individuals to reach their full potential

Maslow's Hierarchy of Needs

 

Maslow's Hierarchy of Needs applied to business

1. Physiological Needs
   Businesses can provide necessities for their employees e.g comfortable work environment, access to clean water and food, and adequate rest breaks
   
   
2. Safety Needs
   Businesses can provide job security, fair pay, benefits, and safe working conditions for their employees
   
   
3. Love and Belonging Needs
   Businesses can encourage teamwork and generate a sense of community and belonging within the workplace
   
   
4. Esteem Needs
   Businesses can provide recognition for employees' accomplishments, and provide a positive work culture that values individual contributions
   
   
5. Self-Actualisation Needs
   Businesses can help employees achieve this need by offering opportunities for employees to pursue their passions and interests e.g Barclay's was known for supporting elite sportspeople by allowing them time off work in the day to continue their training (the focus was on getting the job done, not having to be in at a certain time)
    

The Advantages & Disadvantages to Business of Applying Maslow's Hierarchy

Advantages

Disadvantages

Higher employee satisfaction: By meeting the needs of employees, businesses can create a more satisfying work environment which can lead to increased productivity and lower turnover rates Increased motivation: Businesses can motivate their employees by offering incentives that align with their specific needs and desires Improved employee performance: Employees who feel valued and supported by their employers are more likely to perform at a higher level

One size does not fit all: Businesses need to tailor their approach to meet the individual needs of their employees Expensive: Meeting many individual needs can be costly, especially when offering perks such as the use of a company car Time-consuming: Requires significant effort from management to connect individually to understand which opportunities for personal growth are desired

• Herzberg's theory suggests that there are two types of factors that affect employee motivation and job satisfaction - hygiene factors and motivators
  • Hygiene factors are elements that do not necessarily lead to job satisfaction, but their absence can cause dissatisfaction which decreases motivation e.g poor teamwork in the workplace
  • Motivators are elements that lead to job satisfaction and motivation e.g. increased responsibility
     

An explanation of how the lack of hygiene factors causes dissatisfaction while addressing the motivators increases satisfaction. Increased satisfaction leads to increased productivity and profitability

 

How businesses can use hygiene factors to decrease dissatisfaction

• Pay fair wages/salaries
  If an employee is not paid a fair wage for their work, they may become dissatisfied and demotivated
  
  
• Offer excellent working conditions
  If the workplace is dirty, unsafe, or uncomfortable, employees may become dissatisfied and demotivated e.g Google has a reputation for providing amazing workplaces which include gourmet restaurants, laundry services and dog care
  
  
• Offer employment contracts which provide job security
  If employees feel that their job is not secure, they may become anxious and demotivated and contribute less to the business goals

 

How businesses can use motivating factors to increase satisfaction

• Build a recognition and rewards culture
  When employees are recognised and rewarded for their hard work, they are motivated to continue performing well e.g. Sales person of the month award
   
• Offer opportunities for growth and development
  When employees are given opportunities to learn new skills and advance in their careers, they are motivated to continue working for the company e.g. set in place a 3 year growth plan which helps the worker move towards a reach job role
  
  
• Provide challenging work which requires problem solving
  When employees are given challenging work that allows them to use their skills and abilities, they are motivated to continue performing well