UNIT 2. Chapter 9: Motivation

Question 1

Def. Motivation

Answer 1

Motivation is the internal and external factors that stimulate people to take actions that lead to achieving a goal.

Question 2

What are the benefits of motivated workers? (5)

Answer 2

• Low labour turnover
• High productivity
• Enthusiasm to make suggestions for improvements
• Low absenteeism
• Prepared to accept responsibility

Question 3

What is scientific management?

Answer 3

A method F.W. Taylor has used as establishing ideas or hypothesis, studying and recording performance at work.

Question 4

What was Taylor’s scientific approach on finding out how to improve output per worker or general productivity? (7)

Answer 4

1) Select workers to perform the task
2) Observe and note key elements
3) Record time taken to complete tasks
4) Identify the quickest method to complete the task
5) Train all workers in this method and do not allow any alternations
6) Observe workers to see if the time is being exceeded
7) Pay workers on the basis of results - the theory of economic man

Question 5

What is the theory of economic man and how did this affect Taylor’s research?

Answer 5

The view is that man are driven or motivated by money alone. This formed basis of Taylor’s motivational suggestion and he used ‘piece rate’ system.

Question 6

What were the results of Taylor’s work?

Answer 6

Taylor’s approach was widely taken up in the early 20th century when flow production was being introduced, where people only had to do 1 task.

Question 7

What was Elton Mayo’s human relation theory?

Answer 7

• Best known for ‘Hawthorne effect’ which is research over 5 year period at Hawthorn factory.
• Based on assumption that working conditions affected worker’s productivity
• There was a group that experienced improvement in working conditions and a group that didn’t (control group).
• The results were that the productivity rose in both groups so conclusion was that -> Working conditions themselves are not important in determining productivity levels, there were other motivational factors to explore.
• Changes to rest periods, payment systems, canteen food were made at 12-week intervals.
• Output rose far above original level => there are other factors than working conditions that increase productivity.

Question 8

What were the conclusions of Mayo’s work? (5)

Answer 8

• Changes in working conditions and financial rewards have little or no effect on productivity
• When managemers consult with workers, motivation is improved.
• Developing team spirit improves productivity
• When workers are given some control, such as deciding on break times, motivation is improved.
• Informal leaders of the groups can help establish goals for motivation.

Question 9

How does Mayo’s research affect businesses today? (3)

Answer 9

• Employee participation is now encouraged.
• Team working can be applied in many types of modern businesses
• Consulting with workers has opened up new fields of research for industrial psychologist.

Question 10

What is Maslow’s hierarchy of human needs?

Answer 10

• Maslow was concerned with identifying the main needs that humans have.
• The needs from lowest to highest are:
1) Physical needs e.g food, shelter
2) Safety needs e.g Health
3) Social needs e.g Friendship
4) Esteem needs e.g Respect and status
5) Self-actualisation, reaching full potential

Question 11

What are the limitations of Maslow’s approach? (4)

Answer 11

• Not everyone has the same needs
• In practice it is hard to identify whether the needs has been met.
• Money is necessary to satisfy physical needs, but may also satisfy esteem needs
• Self-actualisation is never permanently achieved.

Question 12

How was the Herzberg’s ‘two factor theory’ concluded?

Answer 12

• Herzberg made research on 200 professional workers
• His research was based on questionnaires and interviews with employees to discover:
=> Factors that led employees to having good feelings about their job
=> Factors that led employees to having bad feelings about their job

Question 13

What was the conclusion of Herzberg’s research? (5 5)

Answer 13

'Two factor theory'
• Job satisfaction result from 5 main factors, which are called 'motivators':
1) Achievement
2) Recognition
3) The work itself
4) Responsibility
5) Advancement
• Job dissatisfaction resulted from 5 main factors, which are called 'hygiene factors', these were the factors that surrounded the job (extrinsic factors) or the work itself (intrinsic factors):
1) Company policies and administration
2) Supervision
3) Salary
4) Relationships with other workers
5) Working conditions

Question 14

How does Herzberg’s two factor theory affect businesses today?

Answer 14

1) Better pay and working conditions do not affect motivation on their own.
2) Herzberg suggests ‘job enrichment’ for motivation because:
• Provide complete units of work for a group of people to work on 1 part of the project instead of just 1 repetitive boring job for 1 person.
• Feedback on performance - provides recognition
• A range of tasks to provide challenge and ‘self actualisation’ from Maslow.
3) Higher pay may be quickly taken for granted if the job is not rewarding.

Question 15

What is McClelland’s motivational needs theory?

Answer 15

The motivational needs theory contains 3 types of motivational needs:
• Achievement motivation (n-ach): This person will seek for challenging goals and job advancement, has a constant need for feedback, and a need for accomplishment.
• Power motivation (n-pow): This person is authority motivated, has the desire to control others, the need to be influential and have an impact.
• Affiliation motivation (n-affil): This person has a need for friendly relationships, and tend to be good team members.

Question 16

What is the Vroom’s expectancy theory?

Answer 16

• Vroom believes that individuals choose to behave in ways they believe will lead to outcomes they want.
• Expectancy theory is based on 3 beliefs:
1) ‘valence’ - the depth of want for an extrinsic award (e.g money) or intrinsic award (e.g satisfaction).
2) ‘expectancy’ - the degree to which people believe that putting effort will lead to high level of performance
3) ‘instrumentality’- the confidence of employees of getting what they desire.
• If one of the beliefs is missing, the employees will not be motivated.

Question 17

What are the financial reward systems? (7)

Answer 17

• Hourly wage rate
• Piece rate
• Salary
• Commission
• Performance related pay
• Profit sharing
• Fringe benefits.

Question 18

Def. Hourly wage rate

Answer 18

Payment to a worker made for each hour worked.

This method is not linked to the level of output or effort.

Question 19

Def. Piece rate

Answer 19

Payment to a worker for each unit produced.

Question 20

Benefits of piece rate payment? (2)

Answer 20

• It encourages greater effort and faster working

* The labour cost for each unit is determined in advance and this helps to set a price for the product.

Question 21

What are the disadvantages of piece rate payment? (5)

Answer 21

• Output must be measurable and standardised.
• May lead to falling quality and safety levels because of the rush
• Workers may settle for a certain level of pay and may not be motivated for higher levels.
• It provides little security over pay level, for example in the event of a production breakdown.
• Worker are discouraged from accepting change at work as this might result in loss of pay.

Question 22

Def. Salary

Answer 22

Annual income that is usually paid on a monthly basis.

Question 23

What are the advantages of salaries? (4)

Answer 23

• It gives security of income
• It gives status
• It aids in costing as salaries may not vary
• It’s suitable for jobs when output is not measurable

Question 24

What are the disadvantages of salaries? (2)

Answer 24

• Income is not related to productivity

* May lead to complacency of the salary earner

Question 25

Def. Commission

Answer 25

A payment to a sales person for each sale made. This method is similar to piece rate, however it has drawbacks when there's 'low quality production'. Team work is not induced.

Question 26

Def. Performance related pay (PRP)

Answer 26

A bonus scheme to reward staff for above average work performance. This is done by setting targets, and having annual appraisals of worker's performance against set targets by paying bonuses.

Question 27

What are the advantages of PRP? (2)

Answer 27

* Staff are motivated if they are seeking increases in financial rewards. * Target setting provides purpose and direction for employees

Question 28

What are the disadvantages of PRP? (3)

Answer 28

* Fails to motivate staff who are not driven by financial rewards * Team spirit can be damaged due to competition * Claims of manager favouritism * Can lead to repressive style of management, the managers may not pay bonus if employees don't follow.

Question 29

Def. Profit sharing

Answer 29

A bonus for staff based on the profits of the business - usually paid as a proportion of basic salary.

Question 30

What are the advantages of profit sharing? (3)

Answer 30

* Workers want the business to succeed, reduce of conflict with managers * Employees are more accepting of changes that would benefit the business. * Does not add to business cost

Question 31

What the disadvantages of profit sharing? (5)

Answer 31

* The reward is not directly linked to individual effort * May be hard to operate with firms with many employees * Small profit shares paid are not motivating * Reduces profits paid to owners and investors * Reduces the value of shares on the market.

Question 32

Def. Fringe Benefits

Answer 32

They are non-cash forms of rewards e.g Company cars , free insurance, private health insurance...

Question 33

What are the non-financial methods of motivation? (9)

Answer 33

* job rotation * job enlargement * job enrichment * team working * quality circles * target setting * delegation * empowerment * participation

Question 34

Def. Job rotation

Answer 34

Increasing flexibility of the workforce and the variety of work they do by switching from one job to another. It relieves the boredom of doing one task and it can give the worker multi-skills.

Question 35

Def. Job enlargement

Answer 35

Attempting to increase the scope of a job by broadening or deepening the tasks undertaken. It is increasing the load of tasks may be due to shortage of staff, however may not achieve long term motivation.

Question 36

Def. Job enrichment

Answer 36

The three key features would be: • Complete units of work - more challenging work offered. • Direct feedback on performance to allow employees to see progress. • Some tasks beyond experience that require training may be offered, to gain more skills and recognition.

Question 37

Def. Job redesign

Answer 37

Involves the restructuring of a job - usually with employees' involvement and agreement - to make work more interesting, satisfying and challenging. It is closely linked to job enrichment. E.g Hairdressers may be given opportunity to add beauty therapy as part of the job.

Question 38

Def. Quality circles

Answer 38

They are voluntary groups of workers who meet regularly to discuss work-related problems and issues. They tend to be informal and all employees are encouraged to contribute. This induces participation and sense of involvement of employees with the business.

Question 39

Def. Worker participation

Answer 39

Workers are actively encouraged to become involved in decision making within the organisation. It gives workers opportunities to be elected as a 'worker director' - a representative at council meetings. However this process is time consuming.

Question 40

Def. Team working

Answer 40

Production is organised so that groups of workers undertake complete units of work.

Question 41

What are the advantages of team working? (3)

Answer 41

* Social and esteem needs are satisfied (Maslow) and job enrichment may be achieved (Herzberg) * Reduction of labour turnover -> Reduction of business cost * Makes use of all the talents and better solutions are found

Question 42

What are the disadvantages of team working? (2)

Answer 42

* Not everyone is a team player, these people may require training to be able to work collaboratively -> adds to business cost. * Teams can develop attitude that contrast the organisation's

Question 43

Def. Target setting

Answer 43

Enables direct feedback so employees can see their progress, and it makes work more interesting and rewarding.

Question 44

Def. Delegation and Empowerment

Answer 44

Involve passing down authority and may allow workers some degree of control on how the tasks are supposed to be performed.

Question 45

The type suitable to motivating workers depends on which factors?

Answer 45

* The type of workers * The profitability of the business * The availability of jobs

Question 46

Def. CSR

Answer 46

Corporate Social Responsibility: The concept that regards that businesses should consider the interests of society in its activities and decisions, beyond the legal obligations.

Question 47

What are the benefits and limitations of CSR projects?

Answer 47

Benefits: • Could be used as a marketing strategy • Adds to public relations • Contributes to employee motivation Disadvantages: • Expensive -> Lower profits -> less return to the owners • Business could use to mask their unethical or even illegal activities

Question 48

Def. Social Audit

Answer 48

A report on the impact a business has on society, usually produced annually. This can cover pollution levels, health and safety record, sources of supplies etc.

Question 49

What are the benefits and limitation of Social Audits?

Answer 49

Benefits: • Identifies if the social responsibilities have been met • Sets targets for improvements in social performance by comparing with other firms • Improves business's public image Limitations • It's not independently checked, therefore might not be taken seriously by stakeholders • It's time consuming and expensive to produce • Many consumers don't care.