Motivation theories and methods

Last time

Before we start: last time, in Management functions and leadership styles, you learned these points. Here they are again on one card. Keep them in mind, because today builds on them.

What drives people to work well

Motivated workers are more productive, more reliable, and less likely to leave. Several theories explain what motivates people, from money to achievement. This lesson covers the theories of Taylor, Mayo, Maslow, Herzberg, McClelland and Vroom, and financial and non-financial methods.

Taylor and Mayo

Taylor's scientific management: workers are motivated by money, so pay by output, such as piece rates, and supervise closely. Mayo's Hawthorne studies found that attention, teamwork and social needs raised productivity. So motivation is not only about money.

Maslow and Herzberg

Maslow: a hierarchy of needs from physiological and safety, to social, esteem and self-actualisation. Herzberg: hygiene factors, such as pay and conditions, prevent dissatisfaction; motivators, such as achievement and responsibility, motivate. Both suggest job design matters as much as pay.

McClelland and Vroom

McClelland: people are driven by needs for achievement, affiliation and power, in different strengths. Vroom's expectancy theory: motivation depends on expecting that effort leads to performance, performance to reward, and valuing the reward. So rewards must be achievable and valued.

Financial methods

Time-based pay: wages or salaries for hours worked. Piece rate: pay per unit produced. Commission, bonuses, profit sharing, performance-related pay, and share ownership. Fringe benefits, such as health insurance, add value beyond pay.

Time-based or piece rate?

Piece rate links pay to output, so it can raise productivity where output is easy to count. But quality may fall as workers rush, earnings become uncertain, and it does not suit varied or skilled work. Time-based pay gives security and suits quality-focused work. The choice depends on the product, quality needs and the workforce.

Non-financial methods

Job enrichment: more challenging, responsible work. Job rotation and job enlargement add variety. Empowerment and team working give staff more control. Recognition, training and promotion opportunities meet esteem and self-actualisation needs.

Theories at a glance

The motivation theorists and their key ideas.

Applying theory to a case

Use the theory to explain why a method will or will not work for these workers. For example, Herzberg suggests a pay rise alone will not motivate if the work is boring. Then judge, considering cost and the type of work.

Mistakes that lose marks

Mistake one: saying Herzberg treats pay as a motivator. Mistake two: describing a theory without applying it to the case. Mistake three: recommending piece rate for work where quality matters most. The fix: correct theory, applied, with a judgement.

The full-marks tip

The full-marks tip: use a theory to explain each method's effect on the workers in the case. Judge payment methods by product type, quality needs and cost.

On one card

So, on one card: motivation. Keep it for revision.