Motivation

Kamran Alam Butt

Motivation
► Motivation is the reason why
employees want to work hard and work
effectively for the business.
► The factors that influence the behavior
of the worker toward achieving set
business goals.
Factors that influence motivation at work
► Money
► Job security
► Promotion
► Training at work
► Status
► Responsibility
► Fringe benefit
► Variety at task
► Friendship
► Clean and safe work place
► Benefit of well motivated employee
 Why do people work?
► Money: to satisfy needs and wants.
► Security: knowing that you are
physically safe and have job security.
► Social needs: to belong to a group,
making friends at work.
► Esteem needs (self importance):
feeling important, feeling the job you
do is important.
► Job satisfaction: enjoyment from the
feeling of having done a good job.
Benefit of a well motivated
employee

►Improve productivity
►Low rate of absenteeism
►Low rate of labour tournover
►Better quality goods
F.W.Taylor
► Theory: Money is the main motivator.
► If employees are paid more, they work more.
► Work is broken down into simple processes, and more
money is paid which will increase
the level of productivity an employee will achieve.
► The extra pay is less than the increased
productivity.
► Cons:
► Workers are seen rather like machines, and this theory
does not take into account non-financial motivators.
► Even if you pay more, there is no guarantee of a
productivity rise.
► It is difficult to measure an employees output.
Activity
Maslow
Maslow created what is know as the hierarchy of needs.

► In this diagram, there are 5 different types of

motivation:
► Physiological needs: basic requirements for
survival.
► Security needs: the need to by physically safe.
► Social needs: the need to belong and have good
relationships with co-workers.
► Esteem needs: the need for self-respect and to be
respected by others.
► Self-actualisation needs: the need to reach your
full potential and be promoted.
 Self-
Actualis
ation

Esteem Needs

Social Needs

Security
Social needs:

Physiological needs
► Businesses realize that the more levels of
motivation are available to workers, the harder
they will work.
► Maslow also suggest that each level of
motivation must be achieved before going to
the next level. Once one level of motivation is
met, more of that will no longer motivate the
employee.
Cons:
maslow
► Cons:
► Some levels are not present in some jobs.
► Some rewards belong to more than one level on others.
► Managers need to identify the levels of motivation in any job before
using it to motivate employees.
Fredrick Herzberg – two factor theory
Hygiene factors ► Motivators
► The factors that must be ► The factors that influence a
presented in the work place person to increase their
to prevent job efforts
dissatisfaction. ► The work itself
► Status. ► Responsibility
► Security. ► Achievement.
► Working conditions. ► Recognition.
► Company policies and ► Personal
administration.(supervision) growth/development.
► Relationship with supervisor. ► Advancement/promotion.
► Relationship with ► Job satisfaction.
subordinates.
► Salary.
Motivating factors - financial motivators

There are three ways to motivate a workforce:

► financial motivators/ financial rewards
► Cash and non-cash rewards paid to workers which are
often use to increase the efforts
► non-financial motivators
► Method used to motivate worker that donot involve
giving any financial rewards
► ways to increase job satisfaction
Financial rewards

Pay may be the basic reason why people work, but

different kinds of pay can motivate people differently.
Here are the most common methods of payment:
Wages
a wages is a payment to work usually paid
weekly
► Wages are paid every week, in cash or straight
into the bank account, so that the employee does
not have to wait long for his/her money. People tend
to pay wages to manual workers. Since wages are
paid weekly, they must be calculated every week
which takes time and money. Wages clerks are
paid to do this task. Workers get extra pay for
the overtime that they do.
Ways of calculating wages/ hourly
wage rate
► Time rate: Time rate is payment according to how
many hours an employee has worked. It is used in
businesses where it is difficult to measure the output of
a worker.
► Easy to calculate the wage of the employee. A time-
sheet must be filled out by the Accounts department to
calculate the wage.
► Both good and bad workers get paid the same wages.
Therefore, more supervisors are needed to maintain
good productivity. a clocking-in system is needed to
know how many hours an employee has done.
Formula
► Basic pay + Overtime = Gross Pay
► Gross pay - Deductions = Net Pay
► Deductions include:
► Taxes
► Pension
► Union fees
► National insurance: entitles the payee to short-
term unemployment benefits, sickness
benefits and state pension.
Piece rate:
payment to workers based on the number of unit produced

► Piece rates are paid depending on how many units they have
produced. There is usually a base pay (minimum wage) and
the piece rate is calculated as a bonus on how many units were
created. Piece rates are found in businesses where it is possible
to measure a workers productivity.
► Encourages workers to work faster and produce more goods.
► Workers will often neglect quality, and businesses will need
a quality control system which is expensive.
► Workers who focus on quality will earn less. Tension is
caused when some workers earn more than others.
► If machinery breaks down, employees earn less. That is why
there is a guaranteed minimum pay.
Salaries
Fixed annual payment to certain grade and type of staff
not based on hours worked or output

► Salaries are paid monthly, and normally straight into

the bank account. They are usually for white collar
workers. A salary is counted as an amount per year that is
divided into 12 monthly accounts. You do not usually
receive overtime. Managers only need to pay their workers
once a month, and since the amount is transferred by the
bank, the manager loses much less time and money calculate
salary.
Salaries are usually a standard rate, but other rewards could
be given to employees:
Commission:

► A percentage is paid, usually to sales staff,

depending on the value of goods they have sold.
► Workers are encouraged to sell more. However, they
could persuade customers to buy products they
don‘t really want, making the company look bad.
Just like the piece rate, in a bad month where there
are little sales, worker's pay will fall.
Profit sharing:

► Employees receive a percentage of

the profits made. However, they will get nothing if
the business doesn't make a profit. This is often
used in the service sector, where it is hard to find an
employees contribution to the company.
Bonus:
► A lump sum paid to employees who have done well.
It is usually paid at the end of the year or before
holidays. However, this could cause jealousy between
workers. Giving bonuses to a team works better.
► Performance related pay: Employee pay is linked
to the effectiveness of their work. It is often used in
organizations where it is hard to measure productivity.
It uses the system of appraisal: employees are
observed and their colleagues are interviewed to
determine their effectiveness. Afterwards, the
immediate superior of the employee has a meeting
with them to discuss their effectiveness.
Share ownership:

► Employees receive some shares from the

company. They will either benefit
from dividends or sell the shares when
their price has risen.
► They will be more motivated because they feel like
a part of the company.
Motivating factors - non-financial motivators
► There are other factors that motivate people in a business,
and they are often called perks or fringe benefits.
► They may be having free accommodation, free car, etc...
However, when you look at it, it is just money in different
forms.
► Here is a list of these motivators:
1. Children's education. 2. Discounts on
company products.
3. Free Healthcare. 4. Company
vehicle.
5. Free accommodation. 6. Share options.
7. Expense accounts. 8. Pension.
9, Free holidays.
Job satisfaction:

► Employees will become more motivated by enjoying the job they

do. Job satisfaction can come in different ways.
► However, there are some factors that demotivate employees if
they are not satisfied, and must be satisfied before the motivators
can take effect. Here are some things that make workers' jobs
satisfying:
► Pay.
► Promotion.
► working conditions.
► Fringe benefits.()
► Management
► Working hours.
► The nature of the work itself.
► Colleagues, etc...
Responsibilty and recognition

► Herzberg and Maslow stresses that things such

as responsibility recognition is also crucial to
provide job satisfaction. Letting workers contribute
to the job would also help, making jobs less boring
and more creative.
Here are some policies to increase
job satisfaction:
► Job rotation:
► Workers in a production line can now change jobs
with each other and making their jobs not so boring.
It helps train the employee in different aspects of
their jobs so that they can cover for other
employees if they do not show up.
Job enlargement:

► Adding tasks of a similar level to a worker's job.

Job enlargement simply gives more variety to
employees' work which makes it more enjoyable.
Job enrichment:

► Adding tasks of a higher level to a worker's job.

Workers may need training, but they will be taking
a step closer to their potential. Workers become
more committed to their job which gives them
more satisfaction.