Chapter 22: Developing and retaining an effective workforce

Motivating Employees

Theories of Motivation: Scientific Management and F.W. Taylor• Considered money to be the main factor that

motivated workers, so he emphasised the benefits of piecework, where workers are paid according to how much they produce.

• Extreme division of labour – where a job is broken down into small, repetitive tasks, each of which can be done at speed and with little training (Specialisation)

• Tight management control – which ensures that workers concentrate on their jobs and follow the correct processes.

**Saw humans as machines with financial needs**

Theories of Motivation: Elton Mayo and the Hawthorne Effect• Emphasised the importance of human relations

in the workplace and suggested:– Recognition, belonging and security are more

important in motivating employees than simply money and working conditions

– Work is a group-based activity and employees should be seen as members of a group

– Managers need to pay attention to individuals’ social needs and the influence of the informal groups to which they belong

– Managers must communicate with informal groups, ensuring that their goals are in tune with those of the organisation

– Increases of output are due to greater communication and improved relations in informal groups

Motivation Theories: Maslow’s hierarchy of needs

• He said the people have 5 types of needs that they try to satisfy.

• Once the first set of needs has been satisfied, it no longer works as a motivator so people move on to the next set of needs.

Self-Actualisation Needs

Esteem Needs

Social Needs

Safety Needs

Basic Needs

The satisfaction gain from realising personal ambition or personal targets

People need to feel they belong, they want to be part of a group + enjoy friendship

Food, clothing and shelter – the basic necessities of life

People need to feel respected by others for their abilities.

People need to be sure + feel secure that they can continue to survive.

Motivation Theories: Herzberg’s Two-Factor theory of job satisfaction and dissatisfaction• Motivators (factors that motivate and give job satisfaction):

– A sense of achievement– Recognition for effort and achievement– The nature of the work itself– Responsibility– Promotion and improvement opportunities

• Hygiene Factors (can reduce job dissatisfaction):– Company policy and administration, which includes

paperwork– Supervision (especially if workers feel that they are over-

supervised– Pay– Interpersonal relations, especially with supervisors and peers– Working conditions

Using financial methods to motivate employees

• Time rates

• Piecework

• Performance-related pay

• Profit sharing

• Share ownership and share options

• Fringe benefits

Non-financial methods of motivating employees

• Job enrichment (a means of giving employees greater responsibility and offering them challenges that allow them to utilise their skills fully)

• Job enlargement (increasing the scope of a job, either by job enrichment or by job rotation)

• Empowering employees• Working in teams