Why motivation matters
Motivation is the desire and drive to work hard and do a job well. A well-motivated workforce tends to be more productive, produce higher quality, take fewer days off and stay with the firm longer, which lowers recruitment costs. Poor motivation can lead to high absenteeism and high labour turnover.
Key idea
Motivation theories help managers understand what makes workers put in more effort. Money matters, but so do recognition, responsibility and good working conditions.
Some motivation theories
Taylor argued that workers are mainly motivated by money and suggested paying by output (piece rate). Maslow set out a hierarchy of needs, from basic physical needs up to self-fulfilment, arguing each level must be met before the next matters. Herzberg separated hygiene factors (such as pay and conditions, which prevent dissatisfaction) from motivators (such as achievement and responsibility, which create real satisfaction).
Methods of motivation
Financial methods include wages, salaries, piece rate, commission, bonuses and profit sharing. Non-financial methods include job rotation, job enrichment, teamworking, training, promotion and fringe benefits. Non-financial rewards can be powerful because they meet needs that money alone cannot, such as feeling valued and having interesting work. In practice managers often combine several methods, because different employees are motivated by different things and a fair basic wage is usually needed before other rewards have much effect.
Remember
- Motivation raises productivity and lowers labour turnover.
- Taylor = money; Maslow = hierarchy of needs; Herzberg = hygiene vs motivators.
- Rewards can be financial or non-financial.