Motivation Theories (Edexcel IGCSE Business)
Revision Note
Written by: Lisa Eades
Reviewed by: Steve Vorster
An Introduction to Motivational Theories
Motivation theories present different views on the role of money in motivating staff and how non-financial factors may drive workers to improve their effort and output
The main Theories of Motivation
Taylor's Scientific Management | Maslow's Hierarchy of Needs | Herzberg's Two Factor Theory |
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Taylor's Theory of Motivation
Frederick Taylor developed his Scientific Management theory 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
Piece rate pay systems link output to financial rewards
Production lines involving human labour are often set up based on these principles
Diagram: Taylor's Theory of Motivation
Taylor's method starts with a scientific analysis of what is involved in a job and then breaks it down into parts for which employees can be trained
1. Study and analyse the work process
Each step of the work process is carefully analysed
Complex tasks are broken down into simpler ones
2. Standardise the work process
The most efficient and effective way to perform each task is identified
Detailed procedures and instructions are written, which workers follow consistently
3. Select and train workers
Workers are carefully selected based on their skills and abilities
Training supports them to perform their tasks efficiently and effectively
Training includes both technical skills and the proper attitudes/behaviours required to be successful (e.g. patience in a repetitive task)
4. Provide incentives for performance
Financial incentives are used to motivate workers
Examples include bonuses or piece-rate pay
An Evaluation of Taylor's Motivation Theory
How Businesses use Taylor's Approach | Advantages | Disadvantages |
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Maslow's Theory of Motivation
Maslow's Hierarchy of Human Needs outlines five tiers of human needs that must be met for individuals to reach their full potential
Once a tier of needs has been met, it is unlikely to continue to motivate
For example, once safety needs are met through satisfactory pay, employees will look for the next set of needs - love & belonging needs - to be met
Diagram: Maslow's Hierarchy of Needs
Maslow's Hierarchy of Needs explains human motivation based on the pursuit of different levels of needs being fulfilled
Physiological Needs
Businesses can provide necessities for their employees e.g 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 provide a positive work culture that values individual contributions
Self-Actualisation Needs
Businesses can help employees achieve this need by offering opportunities for them to pursue their passions and interests
For example, Barclays Bank supports elite sportspeople by allowing them time off work to continue their training (the focus was on getting the job done, not having to be present at work at a certain time)
The Advantages & Disadvantages to Business of Applying Maslow's Hierarchy
Advantages | Disadvantages |
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Herzberg's Theory of Motivation
Herzberg's Two-factor theory suggests that two influencers determine employee motivation and job satisfaction: hygiene factors and motivators
Hygiene factors do not necessarily lead to job satisfaction, but their absence can cause dissatisfaction, which decreases motivation, e.g poor teamwork in the workplace
Motivators are elements that lead to job satisfaction and motivation, e.g. increased responsibility
Diagram: Herzberg's Two-factor Theory
An explanation of how the lack of hygiene factors causes dissatisfaction while addressing the motivators increases satisfaction. Increased satisfaction leads to increased productivity and profitability
Using 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
Google has a reputation for providing amazing workplaces, which include gourmet restaurants, laundry services and 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's goals
Using 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
Examples include salesperson of the month award and regular staff social events
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
Examples may include personalised growth plans, which help workers achieve professional goals or sabbaticals, which allow workers to periodically pursue a valued interest
Provide challenging work which 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
Examples may include job rotation or job enlargement through delegation
Examiner Tips and Tricks
Motivation is a popular exam topic and can be used to build analysis on a variety of topics. Always consider how decreased motivation can lead to increased business costs, which will reduce its profitability. Using principles gained from these three motivational theories can help wise managers to increase motivation, raise productivity and decrease business costs.
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