Motivational Theories | Business Studies for GCSE/IGCSE - Year 11 PDF Download

An Introduction to Motivational Theories

• Motivation theories present diverse views on the significance of monetary incentives in inspiring employees, as well as how non-monetary factors can influence workers to enhance their performance and productivity.
• Key Motivational Theories
  • Maslow's Hierarchy of Needs Theory: This theory suggests that individuals are motivated by a hierarchy of needs, progressing from basic physiological requirements to higher-level psychological needs. Once a need is fulfilled, it no longer serves as a motivator.
  • Taylor's Scientific Management Theory: According to this theory, workers are primarily motivated by monetary rewards and require well-defined tasks and close supervision to perform efficiently.
  • Herzberg's Two-Factor Theory: Herzberg posited that money is not a direct motivator, but its absence can lead to dissatisfaction. Instead, factors such as skill development opportunities and job enrichment are key motivators for employees.

Maslow's Hierarchy of Human Needs

• Maslow's Hierarchy of Needs presents five levels of human needs essential for individuals to achieve their maximum potential. Once a particular level of need is satisfied, it ceases to act as a motivator. 
• When a need level is fulfilled, it typically loses its motivational power. For instance, after employees receive adequate compensation to meet their safety needs, they will start seeking the fulfillment of their love and belonging needs.

Maslow's Hierarchy of Needs

• Meeting Physiological Needs: Companies can ensure employees have essential amenities like a comfortable workspace, access to clean water and food, and sufficient breaks for rest.
• Addressing Safety Needs: Employers can offer job stability, fair compensation, benefits, and a safe work environment to fulfill employees' safety requirements.
• Fostering Love and Belonging: Businesses can promote teamwork and foster a sense of community and belonging among their workforce.
• Recognizing Esteem: Companies can acknowledge employees' achievements and cultivate a positive workplace culture that values individual contributions.
• Fulfilling Self-Actualization: 
  • Employers can support employees' pursuit of self-actualization by providing opportunities for them to explore their passions and interests.
  • For instance, Barclays Bank exemplifies this by enabling elite athletes to balance work and training, emphasizing task completion over strict attendance.

The Advantages & Disadvantages to Business of Applying Maslow's Hierarchy

Taylor's Scientific Management Theory

• Developed by Frederick Taylor in the early 20th century, this theory emphasizes the division of complex tasks into simpler components.
• Standardizing work processes and providing workers with explicit instructions and training are key aspects of this approach, aimed at maximizing efficiency.
• Many manufacturing firms adopt Taylor's principles to structure their employee benefits.
  • Piece rate pay systems, which tie compensation to output, are commonly used to incentivize productivity.
  • Production lines that incorporate human labor often follow these principles to enhance operational efficiency.

Taylor's Theory of Motivation

• Study and analyse the work process:
  • Thoroughly examine each stage of the work process.
  • Simplify complex tasks into more manageable ones and determine the most optimal methods for task execution.
• Standardise the work process:
  • Develop detailed guidelines and protocols for every task to ensure consistency in execution among workers.
• Select and train workers
  • Carefully select employees based on their aptitudes and capabilities.
  • Provide comprehensive training to equip workers with the necessary skills and attitudes required for task performance, encompassing both technical competencies and appropriate behavioral attributes like patience.
• Provide incentives for performance
  • Embrace the principle of scientific management by utilizing incentives to motivate employees.
  • Incentives may include bonuses or piece-rate pay schemes designed to reward performance and productivity.

An Evaluation of Taylor's Motivation Theory

Herzberg's Motivation Theory

Herzberg's theory proposes that employee motivation and job satisfaction are influenced by two main factors: hygiene factors and motivators.

• Hygiene factors are aspects that, when lacking, can lead to dissatisfaction but do not directly result in satisfaction. For instance, poor teamwork in the workplace can be a hygiene factor.
• Motivators are elements that directly contribute to job satisfaction and motivation, such as increased responsibilities.

Herzberg's Two-factor Theory

Managing Dissatisfaction with Hygiene Factors

• Ensuring Fair Compensation: When employees are not fairly compensated, they may feel demotivated and dissatisfied with their work.
• Providing Optimal Work Environment: Dirty, unsafe, or uncomfortable workplaces can lead to employee dissatisfaction and demotivation. For example, Google offers exceptional workspaces with amenities like gourmet restaurants, laundry services, and dog care facilities.
• Offering Job Security: Employees need to feel secure in their roles to perform effectively. If job security is lacking, employees may experience anxiety and reduced motivation, impacting organizational goals.

Using Motivating Factors to Increase Satisfaction

• Building a Recognition and Rewards Culture

  • When employees are acknowledged and rewarded for their efforts, it boosts their motivation to maintain high performance levels.
  • Examples of this approach include honoring the 'Salesperson of the Month' and organizing regular staff social events.

• Offering Opportunities for Growth and Development

  • Providing avenues for employees to acquire new skills and progress in their careers serves as a strong motivator for them to stay committed to the organization.
  • For instance, personalized growth plans can assist employees in reaching their professional aspirations, while sabbaticals enable them to pursue personal interests intermittently.

• Providing Challenging Work Requiring Problem-Solving

  • Assigning challenging tasks that leverage employees' skills and capabilities encourages them to sustain high performance levels.
  • Examples of such tasks include job rotation and job enlargement through delegation.