Motivation Theory (AQA A Level Business): Revision Note

Why motivate employees?

• Motivation refers to the internal drive that encourages individuals to take action, sustain effort and pursue goals

  • It describes the factors that influence how hard employees work and how committed they are to their role and employer

• A motivated workforce is widely regarded as one of a business's most valuable assets for several reasons

Benefits of motivated employees

Higher productivity

• Motivated employees tend to work harder and more efficiently, increasing output per worker and reducing unit costs

Better quality of work

• Engaged employees take greater care with their tasks, leading to fewer errors, less waste and higher standards of output

Lower staff turnover

• Employees who feel valued and fulfilled in their roles are less likely to leave, reducing the costs of recruitment and training

Reduced absenteeism

• Motivated workers are less likely to take unnecessary absence

• This helps maintain output levels and reduces pressure on their colleagues

Improved customer service

• Employees who are engaged with their work tend to deliver a good experience to customers, leading to repeat business and brand loyalty

Greater creativity and innovation

• Motivated employees are more likely to contribute ideas, take the initiative and suggest improvements

Positive employer reputation

• A business known for its motivated, engaged workforce attracts stronger job applicants and builds a long-term competitive advantage in the labour market

Challenges of motivating employees

Motivation theory: Taylor

• The scientific management theory was developed by Frederick Winslow Taylor in the early 20th century

  • It focuses on breaking down complex tasks into simpler ones, standardising work processes and providing workers with clear instructions and training to achieve maximum efficiency

• Many manufacturing businesses use Taylor's principles to structure their staff benefits, e.g. piece-rate pay

  • Production lines involving human labour are often set up based on these principles

1. Study and analyse the work process

• Carefully analyse each step of the work process

• Break down complex tasks into simpler ones, and identify the most efficient and effective way to perform each task

2. Standardise the work process

• This involves creating detailed procedures and instructions for each task so that workers can follow these procedures consistently

3. Select and train the workers

• Workers should be carefully selected based on their skills and abilities

• Train workers to perform their tasks efficiently and effectively

  • This training includes both technical skills and the proper attitudes and behaviours required to be successful (e.g. patience in a repetitive task)

4. Provide incentives for performance

• Scientific management emphasises the use of incentives to motivate workers

  • This may include bonuses or piece-rate pay

Evaluating the use of Taylor's scientific management

Motivation theory: Maslow

• Maslow's hierarchy of needs is a theory of human motivation that outlines five tiers of human needs that must be met for individuals to reach their full potential

Maslow's hierarchy of needs applied to business

Physiological needs

• Businesses can provide necessities for their employees

  • E.g. a comfortable work environment, access to clean water and food, and adequate rest breaks

Safety needs

• Businesses can provide job security, fair pay, benefits and safe working conditions for their employees

Love and belonging needs

• Businesses can encourage teamwork and generate a sense of community and belonging within the workplace

Esteem needs

• Businesses can provide recognition for employees' accomplishments and a positive work culture that values individual contributions

Self-actualisation needs

• Businesses can help employees achieve this need by offering opportunities for employees to pursue their passions and interests

  • E.g. Barclays is known for supporting elite sportspeople by allowing them time off work during the day to continue their training

Evaluating the use of Maslow's hierarchy

Motivation theory: Herzberg

• Herzberg's theory suggests that there are two factors that affect employee motivation and job satisfaction

  • Hygiene factors

    • Elements that do not necessarily lead to job satisfaction, but their absence can cause dissatisfaction, which decreases motivation

    • E.g. poor teamwork in the workplace

  • Motivators

    • Elements that lead to job satisfaction and motivation

    • E.g. increased responsibility

Herzberg's two-factor theory

How businesses can use hygiene factors to decrease dissatisfaction

Pay fair wages/salaries

• If an employee is not paid a fair wage for their work, they may become dissatisfied and demotivated

Offer excellent working conditions

• If the workplace is dirty, unsafe or uncomfortable, employees may become dissatisfied and demotivated

  • E.g. Google has a reputation for providing amazing workplaces, which include gourmet restaurants, laundry services and even dog care

Offer employment contracts which provide job security

• If employees feel that their job is not secure, they may become anxious and demotivated and contribute less to the business goals

How businesses can use motivating factors to increase satisfaction

Build a recognition and rewards culture

• When employees are recognised and rewarded for their hard work, they are motivated to continue performing well

  • E.g. salesperson-of-the-month award

Offer opportunities for growth and development

• When employees are given opportunities to learn new skills and advance in their careers, they are motivated to continue working for the company

  • E.g. by putting in place a three-year growth plan that helps the worker move towards a higher job role

Provide challenging work that requires problem-solving

• When employees are given challenging work that allows them to use their skills and abilities, they are motivated to continue performing well