Chapter 21:The Importance Of Motivation In The Workplace

● Motivation is the desire to achieve a goal

● Self-motivated people have the drive to achieve their goal on their own
without any encouragement
● Sometimes other people need a push, pressure or rewards to be motivated

Why is employee motivation crucial for a business?

● If a business has a well-motivated workforce, they have better performance,
people will be happier in the work environment, labour productivity will be
higher, and the working environment will be more agreeable.
Easier to attract employees:
● Businesses need to attract the best employees available
● If the business is successful in recruiting highly capable people, they may have
a competitive advantage over rivals
● Workers are more likely to remain happy and cheerful if they are motivated ]
● Good candidates are more likely to accept job offers if they are impressed with
sights they see and hear at the workplace
● If the business gains good reputation for employing a happy and
well-motivated workforce, more people will be interested to apply for a job
and may even end up attracting employees from rival companies
Easier to retain employees:
● If employees are well-motivated and satisfied with their job, they are less
likely to leave their job. This results in lower rates of staff turnover
● This is an advantage because if staff turnover increases there will be an
increase in costs for the business due to the needs of recruitment, training,
and selection.
● It may also be a trouble for managers when trying to organise business
activities
● The business is more likely to be profitable, if they keep their employees highly
motivated
Higher Labour Productivity:
● Well-motivated employees feel that their jobs are important, take pride in
doing their job, work harder and end up completing their tasks on time
● They will produce higher levels of output
● A successful business needs their employees to cooperate
● A good team spirit supports enhancing productivity
 ● Poorly motivated employees may become depressed, take time off work or
use minor illnesses as excuses and this is disadvantageous for the business as
production will be lost, costs will rise and profits will fall.

Social needs - human needs to communicate, develop friendships and belong

How can a business influence motivation?

● Businesses can influence motivation as they have opportunities to provide for
a number of human needs
● These needs include psychological, social or concern safety or security
● Did you know that businesses organise employees into teams because it
increases productivity. It helps improve social needs and people are given the
chance to develop closer ties with people with the same aim. It gives them a
sense of identity and security.

● Job satisfaction - pleasure, enjoyment or sense of achievement that

employees get from their work
● Hygiene factors - things at work that result in dissatisfaction
● Motivators - things at work that result in satisfaction
● Job enrichment - making a job more challenging and interesting
● Maslow;s hierarchy of needs - order of human needs starting with basic
human needs

Herzberg Two-Factor Theory:

● Psychologist discovered that certain factors at work would provide employees
with job satisfaction
● In the 1960’s
● He refers to these factors as motivators
● He found out that some factors would leave staff unsatisfied, and refers to
those factors as hygiene factors.
● He said businesses must find ways to motivate employees and ensure job
satisfaction
● Job enrichment is a method to motivate employees
● He said hygiene factors would not motivate employees but if they are
insufficient, workers may develop poor motivation.
 Motivators Hygiene Factors

Achieving aims Pay

Chance of promotion Working Conditions
Responsibility Job security
Interesting work Quality of supervision
Recognition Staff relationships
Personal development Company policy

Maslow’s Hierarchy Theory:

● Psychologist discovered that the needs of employees and arranged them in a
hierarchy
● In 1943
● Usually presented in a pyramid
Psychological Needs:
● Basic needs for human survival
● At the bottom of the pyramid
● Food, warmth, shelter, rest, drink
● Humans need protection from physical and psychological threats
● Work provides the means to satisfy these needs because people can earn
money to buy food, clothes and safe shelter.
Safety and Security:
● People need protection from any form of danger, and from physical and
psychological threats
● They need routine and familiarity
Social Needs:
● People are social animals and have social needs
● People like to make friends by communicating
● People like to be cared for, to care and belong in groups
● Work can satisfy social needs as people work with others, providing
opportunities to meet and develop relationships and friendships
Esteem Needs:
● People need their achievements praised, recognition and respect
● They also need self-respect and self-esteem
Self - Actualisation:
● Many people want to develop as people and develop skills
● They want to reach their full potential
Need Work can provide

Psychological Adequate pay, subsidised meals and

accommodation

Safety and Security Job security and safe working

conditions

Love and Belonging Teamworking, good communication

and social facilities

Esteem Praise(doing a good job), awards,

rewards(achievement) and
recognition

Self-Actualisation Challenging opportunities, be

creative, solve problems and make
decisions

● Once one set of needs are achieved, they don’t remain motivators, so
next set of needs should be achieved
● A business would have to find ways for satisfying higher needs
 ● If lower needs are not achieved, workers cannot be motivated if a
business tries to achieve higher needs
● If a business fails to meet a particular need, the workers are not likely to
be motivated

Taylor’s Theory of Scientific Theory:

● By Fredrick Taylor in 1911
● He said workers were motivated by money
● He recognised many employees were not motivated and not reaching
their complete potential
● After examination and research, he said that work should be broken
down into simple tasks and workers should:
Use specialised tools and equipment
Follow a strict working procedure
Receive proper training
Get breaks to recover from physical strains of work
Be paid according to what they produce
● Once the business had determined the most efficient way to carry out tasks
and organise the workforce, Taylor felt that employees should get a “fair day’s
pay” for a “fair day’s work”. He meant that the pay should be linked to the
output in order to motivate workers

Large VS Small Businesses:

● Businesses of all sizes should recognise the importance of employee
motivation
● Poorly motivated employees can have a negative impact on a business of any
size
● Employees in a small business may have close ties with the owner, pressuring
them to work a little harder
● Employees in a large business, there is more scope for training, team working,
job rotation and promotion.