Motivating employees

📘 Unit 2.1: Motivating Employees

🔑 2.1.1 The Importance of a Well-Motivated Workforce

❓Why Do People Work?

People work to:

• Earn money – to afford basic needs and luxuries.

• Feel secure – jobs offer stability.

• Gain satisfaction – personal pride in achievements.

• Be social – interact with others.

• Have a purpose – feel valued and needed.

✅ Definition: Motivation is the reason why people work hard and enjoy what they do. It’s what drives employees to put in effort and perform well.

✅ Benefits of a Well-Motivated Workforce

1. Increased labour productivity
   → Workers get more done in less time.

2. Reduced absenteeism
   → Fewer workers take unnecessary sick days.

3. Reduced labour turnover
   → Employees stay with the business longer. This saves money on hiring and training new staff.

4. Better customer service
   → Motivated workers treat customers better, leading to improved reputation and sales.

📊 Key Motivational Theories

🔺 Maslow’s Hierarchy of Needs

Maslow believed people are motivated by five levels of needs, starting from the most basic.

An employee must have the lower needs met before moving to the next level.

Level	Example in the workplace
1. Physical	Fair wages, food, shelter
2. Safety	Job security, safe working conditions
3. Social	Teamwork, friendships, supportive managers
4. Esteem	Recognition, respect, promotion opportunities
5. Self-actualisation	Opportunities to grow and be creative

📝 Exam Tip: You can draw a triangle and label the five needs in ascending order.

🏗️ Taylor’s Scientific Management

• Focused on money as the main motivator.

• Believed workers should be given clear instructions and supervised closely.

• Used piece rate (pay per unit produced) to encourage productivity.

🟡 Criticism: This can make workers feel like machines and reduce job satisfaction.

💼 Herzberg’s Two-Factor Theory

1. Hygiene Factors (prevent dissatisfaction but don’t motivate):

• Pay, working conditions, job security, company policies.

2. Motivators (create satisfaction and motivation):

• Achievement, recognition, interesting work, responsibility, advancement.

✅ Herzberg believed improving motivators boosts motivation more effectively than hygiene factors.

💰 2.1.2 Methods of Motivation

🔵 Financial Rewards (Monetary Methods)

Method	Description	Example
Wage	Payment based on hours worked or output (weekly/daily)	A cleaner paid per hour worked
Salary	Fixed amount paid monthly or annually	A manager earning $30,000 per year
Bonus	Extra reward for meeting targets	A salesperson gets $200 bonus for top sales
Commission	A percentage of the sales the employee makes	10% on each product sold
Profit Sharing	Employees receive a share of the company’s profits	A team gets 5% of the company’s annual profit

💡 Good for: Boosting short-term productivity or sales.

🟢 Non-Financial Methods

Method	Description	Example
Job Rotation	Workers switch tasks to reduce boredom	A factory worker changes tasks every few hours
Job Enrichment	Giving more challenging and meaningful tasks	A worker is asked to plan and present their own report
Teamworking	Working in groups toward a common goal	Staff in a restaurant working together on shift
Training	Improving worker skills and knowledge	A cashier receives training on new POS software
Promotion	Advancing to a higher position	A receptionist is promoted to office manager

💡 Good for: Long-term motivation, career development, and job satisfaction.

🧠 How to Choose the Best Method of Motivation?

When recommending a method, consider:

• Type of job: manual or professional?

• Worker’s skill level.

• Financial ability of the business.

• Whether short-term or long-term motivation is needed.

📝 Example Question:
"A factory wants to increase productivity. Should it use financial or non-financial methods?"
Suggested Answer:
It could offer bonuses or piece rate to boost output short-term. However, job rotation or teamworking could help reduce boredom and improve long-term efficiency.

🧠 EXAM TIPS

• Define terms clearly (e.g., motivation, bonus, job enrichment).

• Use examples relevant to the question scenario.

• Compare methods when asked to justify your choice.

• Link to productivity, absenteeism, and labour turnover.

• Draw diagrams like Maslow’s pyramid or Herzberg's two-factor table for clarity.

• Use P.E.E. structure: Point – Explain – Example

📌 Summary Table

Concept	Definition/Explanation
Motivation	Drive to work hard and effectively
Productivity	Output per worker
Labour turnover	% of workers leaving the business
Maslow’s Hierarchy	Five human needs, from basic to advanced
Taylor's Theory	Motivation through money
Herzberg’s Theory	Hygiene vs Motivators
Financial Methods	Wages, salary, bonus, commission, profit sharing
Non-Financial Methods	Job enrichment, rotation, teamwork, training, promotion