Unit 2 - Chapter 11: Motivation - PDF

Unit 2 Chapter 11: Motivation AS guideline… Motivation as a tool of management and leadership The need to motivate employees to achieve the objectives of a business Human needs A simple explanation of human need How human needs may or may not be satisfied at work Motivation theories Ideas...

Unit 2 Chapter 11: Motivation AS guideline… Motivation as a tool of management and leadership The need to motivate employees to achieve the objectives of a business Human needs A simple explanation of human need How human needs may or may not be satisfied at work Motivation theories Ideas of the main content theorists (Maslow, Taylor, Mayo, Hertzberg) and process theorists (McClelland, Vroom) The theories in practical situations Motivation methods in practice Different payment methods (salary, piece rates, commission, bonuses, performance related pay) Different types of non-financial motivators (training, induction, opportunities for promotion, development, status, job re-design, team working, empowerment, job enrichment, participation, job rotation, perks) Ways in which employees can participate in the management and control of business activity The need to motivate employees to achieve the objectives of a business Motivation - the internal and external factors that stimulate people to take actions that lead to achieving a goal. Motivation of workers has a direct impact on productivity and business efficiency and therefore managers need to understand what motivates employees to reach peak performance. However those managers who do manage and motivate staff effectively will gain a loyal and productive workforce – a real competitive advantage. Gains from a well motivated staff Low labor turnover High productivity Make suggestions for improvements Low absenteeism Prepared to accept responsibility Motivation theories Ideas of the main content theorists (Maslow, Taylor, Mayo, Herzberg McClelland ) and process theorists (Vroom) The theories in practical situations You should understand what theorists discovered but more important are those tables and paragraphs which apply their theories to modern businesses. 1. Taylor and scientific management Taylors main aim was to reduce the level of inefficiency that existed in the US manufacturing industry. In the early 20th century there was great potential to increase efficiency gains. Taylors scientific management – theory of ECONOMIC man – man driven by money alone Encouraged a piece rate system. It revolutionized the way work was done in those times Evaluating how relevant Taylor’s views and methods are today – page 158 Economic man – nowadays workers have a wide range of needs, not just money, that can be met, in part at least, from work Select the right people for each job – still applicable – careful staff selection Observe and record the performance of staff – known as time and motion study – still employed as a technique with the cooperation of the staff Establish the best method of doing a job – method study – this approach of giving instructions and taking no feedback is undesirable now – worker participation is encouraged Piece work payment systems – quality may be sacrificed now – in many service industries it is also very difficult to measure output 2. Mayo Mayo – Hawthorne effect Mayo’s research for today’s businesses: Giving workers more role in the business decision making Personnel departments were established and still exist Team working can be applied to modern businesses Taking an interest in workers welfare – a change from Taylor 3. Maslow – human needs Significance of these needs for today’s businesses Physical needs – income from employment enough to meet essential needs Safety needs – structured organization with job security Social needs – working in teams and groups – good communication Esteem needs – recognition of work well done – status, respect, responsibility Self actualization – challenging work that stretches the individual Limitations of these needs – page 160 Maslow’s Hierarchy of need Criticism of Maslow’s hierarchy Not everyone has the same needs, as is assumed by the hierarchy. In practice it can be very difficult to identify the degree to which each need has been met and which level a worker is on. Money is necessary to satisfy physical needs, yet it might also play a role in satisfying the other levels of needs. High incomes can increase status and esteem. Self-actualisation is never permanently achieved. Jobs must continually offer challenges and opportunities for fulfilment, 4. Herzberg – two factor theory Discovered factors that made them feel good about their job (5) - motivators Factors that led them to have negative feelings about their jobs (5) – hygiene factors Herzberg – today’s businesses 1. Pay and working conditions can be improved and these will help to remove dissatisfaction from work: but they will alone will not provide conditions for motivation to exist. 2. The motivators need to be in place for workers to be prepared to work willingly and to always give of their best. The 3 features of job enrichment could be adopted: Complete units of work Feedback on performance A range of tasks Nature of job enrichment 5. McClelland and motivational needs theory Identified 3 types of motivational need: Achievement motivation – a person with strong motivational need for achievement will seek to reach realistic and challenging goals - business people and entrepreneurs Authority/power motivation – the desire to control others is a powerful motivating force – personal prestige and pride Affiliation motivation – need for friendly relationships Mc Clelland Teams Content vs Expectancy Theory Content theory intrinsically offer something to the employee that will automatically motivate him. Process theory puts forth a process that leads to an employee’s motivation. Vroom - 1964 Defines Motivation ? Victor H. Vroom (1964) defines motivation as a process governing choices among alternative forms of voluntary activities, a process controlled by the individual. Vroom 6. Vroom and expectancy theory Vroom’s theory states that individuals have different set of goals and can be motivated if they believe that: There is a positive link between effort and performance Favourable performance will result in a desirable reward This reward will satisfy an important need The desire to satisfy the need is strong enough to make the effort worthwhile. Theory has 3 beliefs – valence, expectancy and instrumentality Theory has 3 beliefs: Essay question Discuss how the theories of BOTH Vroom AND McClelland can be applied for staff motivation. (12) answer McClelland: Explanation of McClelland’s theories as human needs theories Understanding what need is dominant in a particular employee and utilizing him in that specific capacity E.g. people with high need for affiliation will be good team players Not understanding needs properly can put people in wrong positi But: Putting people of the same needs together can also have negative consequences as sometimes combinations are required to maximize effectiveness – especially in a team environment People with need for achievement might be motivated by promotion, but they will not be good leaders because they are self-oriented rather than people- oriented People with need for affiliation may not make decisions in the company’s interest if they are in positions of authority because they are too people oriented Vroom: Explanation of Vroom as process theory as different from others which are content theories Actually fulfilling commitments and rewarding employees on the basis of good performance Make the performance target achievable and realistic so that efforts do materialize Will encourage employees to put in the effort because they know that their effort will lead to performance and that will lead to a reward But: Misunderstanding the perceived value of a reward will lead to a lack of effort on the employee’s part Not fulfilling commitment once can lead to resignation of effort on employee’s part Financial Motivators Different payment methods (salary, piece rates, commission, bonuses, performance related pay) Reference to theorist ? Example Telemarketing Ltd. The human resources manager at Telemarketing was under pressure to solve the problem caused by many workers leaving. Recent data gathered about employees is shown in Table 11.12: Recruitment and training costs, and cover for absent employees, are reducing the profitability of the business. Telemarketing has grown rapidly since being set up 11 years ago. It is now one of the largest and most profitable telephone direct marketing businesses in the country. It sells insurance and other financial products directly to consumers rather than using banks or insurance brokers as intermediaries. Seventy-five percent of employees are telephone sales workers. They have two ways of selling the products. Either they contact potential customers using numbers from telephone directories, or they receive calls from interested members of the public responding to advertisements. Contd. Sales employees work at individual workstations. All calls are recorded and monitored by supervisors. Rest time is strictly controlled and excess rest periods lead to pay being reduced. Employees are paid a low basic time-based wage, plus a small commission payment. The company wants telephones to be operated 18 hours per day, so there is no available time for meetings between all the workers. The main form of communication is a daily newsletter, which is pinned to all workstations at the start of every shift, giving details of daily sales targets for the whole business. Non financial motivators Non-financial motivators are often intangible and do not involve money directly. Non-financial incentives inspire and engage employees in ways that money is incapable of doing. Non-financial incentives are the types of rewards that are not a part of an employee's pay. Typically, they cost the company little or no money, yet carry significant weight. Examples of these include recognition, added responsibility and trust in a role, participation in decisions, flexible schedules, mentorship, feedback, training, induction, opportunities for promotion, development, status, job re-design, team working, empowerment, job enrichment, job rotation. Job design involves continuous efforts in organizing activities or tasks, duties and responsibilities into work unit, to achieve the objectives, which usually involves the employee’s input and agreement. Job redesign has its focus on how existing jobs are changed to increase motivation, workers’s satisfaction and commitment to the organisation. There are many approaches to job redesign, which include job rotation, job enlargement, job enrichment, etc. Job rotation allows workers to do several different jobs, increasing their skills and the range of work they can do. There are various benefits and limitations of job rotation. Benefits: Rotation may relieve the boredom of doing one task. It can give the worker several skills, which makes the workforce more flexible. Workers are more able to cover for a colleague’s absence. Limitations: Job rotation is more limited in scope than job enrichment It does not increase empowerment or responsibility for the work being performed. It does not necessarily give a worker a complete unit of work to produce, but just a series of separate tasks of a similar degree of difficulty. Job Enlargement means to increase the tasks performed by an employee in a single job, in order to decrease the monotony of repetitive tasks. Under this technique, few tasks are added to the existing job which is similar in nature. Increases degree of satisfaction in workers as one employee is assigned the whole or the maximum part of the project. Both physical and mental abilities of a worker are utilized, but jobs should be enlarged to a limited extent, i.e. up to the capacity of the employee, so as not to create pressure and frustration in an employee. Increases task variety that reduces boredom in performing the job.  With new tasks in the same job, additional training may be needed.  Worker productivity will fall after the implementation of new system.  Employee may demand increment in their pay for the increase in their workload. Job Enrichment is a job design strategy, applied to motivate the employees by delegating them extra responsibilities to make it more rewarding. Job enrichment means to upgrade the quality of a job and to make it more exciting, challenging and creative. Benefits: Complete units of work are produced so that the worker’s contribution can be identified and more challenging work can be offered – for example, by using team (or cell) production. Direct feedback on performance, for example by two-way communication, allows each worker to have an awareness of their own progress. Challenging tasks are offered as part of a range of activities, some of which are beyond the worker’s recent experience. Limitations Lack of employee training or experience to cope with the greater depth of tasks can result in lower productivity. Employees may see the enrichment process as just an attempt to get them to do more work. If employees are not able to cope with the additional challenges imposed by job enrichment, then this can lead to frustration and demotivation. Managers must accept reduced control and supervision over the work of employees, which they might find difficult. Employee participation Employee participation can be introduced at different levels of a business operation. Workers can be encouraged to become involved in : decision-making at the team or work group levels. at the level of strategic decision-making, workers could be encouraged to participate through electing a worker director to the board of directors or speaking for employees at works council meetings. Limitations : time-consuming to involve workers in every decision. autocratic managers would find it hard to adapt Quality Circles A quality circle (QC) is a group of five to ten employees who have experience in a particular work area. They meet regularly to identify, analyse and solve the problems arising in their area of operation. Quality circles are used to identify problem areas in business processes and members work on these to improve product quality and productivity. Quality circles are not just concerned with quality, although improving quality of the product or service can be a major benefit. The meetings are not formally led by managers or supervisors. They are informal and all workers are encouraged to contribute to discussions. Benefits of Quality Circles Workers have hands-on experience of work problems and they often suggest the best solutions. The results of the quality circle meetings are presented to management. The most successful ideas are often adopted, not just in that location, but across the whole organisation. Quality circles are an effective method of allowing the participation of all employees. They fit in well with Herzberg’s ideas of workers accepting Limitations of Quality Circles Quality circle meetings can be time- consuming and reduce the time available for production. Not all employees will want to be involved in quality circles, preferring to get on with their own job. Quality circles may not have the management power to make the changes that they recommend. If management ignores the proposals from quality circles too often, employees will become discouraged and unwilling to participate. Team Working- benefits Teams are empowered by being given decision- making authority over their work and the planning of it. This is a good example of job enrichment. Workers will not want to let down other team members so absenteeism should fall. Workers are likely to be better motivated as social and esteem needs are more likely to be met. Better-motivated team members increase productivity and labour turnover is reduced. It makes full use of all of the talents of the workforce. Better solutions to problems will often be found. It can lead to lower management costs as it is often associated with delayering of the organisation so fewer middle managers will be required. Team Working- limitations Not everyone is a team player as some individuals are more effective working alone. Training may need to be offered to team members who are not used to working collaboratively in groups. Some workers may feel left out of team meetings unless there are real efforts to involve all team members. Teams can develop a set of values and attitudes which may conflict with those of the organisation itself.The introduction of teamworking will require training to improve employee flexibility and this could be costly. There may be some disruption to production as the teams establish themselves. Scripts Question 6 Discuss how the management of an airline might motivate its cabin crew. You should make reference to relevant motivation theories you have studied – 20 marks Answer Outline – 20 marks INTRO Important to understand who are cabin crew members of an airline Definition of motivation for the CABIN CREW of an airline Intro to motivational factors – some motivated by money alone and some employees are motivated through a mix of financial and non financial factors Explain tangible and intangible services too Answer outline CORE answer Financial Factors: As Taylor pointed out – Man is driven by economic needs – so money is one of the most important motivators. Cabin crew members can be motivated by offering them: ▫ Increase in basic salary – annually ▫ Bonus ▫ PRP – performance related pay – cant measure output as no tangible services but PRP can be based on their services over a period of time ▫ Offer employees ownership through shares – reduces conflict between mangers/employees and owners as they both want to achieve the same objectives to make the company more successful and profitable ▫ FRINGE BENEFITS – very important motivator for airline employees – free travel for employee and family members, travel points, entertainment medical insurance Its not only Taylor who supported the financial motivators but other theorists also provided supporting arguments: MASLOW : important to satisfy the lower needs – physical needs which involve salary (make the diagram) Herzberg : 2 factor theory – Hygenine Factors – If basic salary etc missing , then it will result in job dissatisfaction Vroom: its process – so financial incentive can be a reward (end of the process) if they employees achieve what they are told to do. Answer outline CORE answer Non -Financial Factors: Herzberg’s findings support the non-financial factors which can be offered to the cabin crew members: Completed units of work, feedback, range of tasks – Job enrichment Training Job Rotation Team work Job enlargement Quality circles Praise on their work – adopting leadership style – democratic – believing in theory y – cabin crew of the month Answer outline Evaluative conclusion This answer – needs to be in context – CABIN CREW MEMBERS (combined with motivational tools )