Motivating Employees in Business

• Employees are essential to production, rewarded with wages/salaries, and are valuable assets that help businesses produce, sell goods, and make a profit.
• Businesses must keep employees satisfied and motivated to avoid higher costs.
• Motivation involves internal/external factors generating enthusiasm and stimulating energy, keeping people interested in their jobs.
• Higher productivity and less waste are results of a satisfied and contented workforce.
• Lower labor turnover as workers are more likely to stay in the business as long as they are enjoying their job.
• Less absenteeism and greater punctuality.
• Better industrial relations are fostered by favorable working conditions.
• A good public image attracts highly qualified workers.

E.W. Taylor's Theory of Scientific Management

• Published in 1911, this theory suggests workers inherently do as little as possible and are primarily motivated by money.
• Productivity can be increased by simplifying job processes and increasing pay, with the condition that productivity must exceed the extra pay.
• It disregards non-financial motivators and treats workers like machines.
• Assumes extra pay leads to higher productivity, but this isn't guaranteed.
• Managing and measuring employee output can be difficult.

Maslow's Hierarchy of Needs

• Explains why people work and what motivates them, based on human needs.

• New needs arise as old ones are satisfied.

• Five levels of needs exist, each acting as a motivator.

• Basic/primary needs (physiological):

  • Needs that must be satisfied first to survive.
  • Include food, clothes, air, shelter, and sleep.
  • Workers may join a business to earn enough for these.

• Security needs:

  • The need to be physically safe.
  • Jobs need to be secure, and working conditions need to be good.
  • Workers will choose companies offering the most of these.

• Social needs:

  • The need to belong to a family, have friends, and join groups.
  • People need good working relationships with colleagues.
  • Looking for friends and joining informal groups in the workplace to increase their sense of belonging.

• Esteem needs:

  • Needs concerned with personal development and how others perceive you.
  • Encompass status, recognition, respect, creativity, and achievement.
  • People need to achieve goals, have self-respect, and be valued by others.

• Self-actualization/fulfillment:

  • Reaching one's highest potential.
  • Develops only after all previous needs are met.
  • Very few people reach this level in practice.

• Once a need is satisfied, it stops being a motivator, and people seek the next level.

• If workers are paid sufficiently, they may want more say in decisions.

• Unsatisfied needs lead to frustration and dissatisfaction.

• Criticisms:

  • Not all levels of needs are present in every job.
  • Rewards can belong to multiple levels.
  • Difficult to identify level of satisfaction that will successfully

Herzberg's Two-factor Theory of Motivation

• Humans require both hygiene factors (basic needs) and motivators.

• Hygiene factors:

  • Include essential needs like acceptable working conditions and reasonable pay.
  • Lack of these results in dissatisfaction, low morale, and low motivation.

• Motivators:

  • Mainly psychological, affecting a person's status rather than physical needs.
  • Include recognition, achievement, opportunities for promotion, and responsibility.