Employee Motivation Theories
A manager who has an understanding of what the employee wants from work will have a better chance of having more satisfied and productive employees. Studies of employee motivation points out that people work for many different reasons. The reason or reasons a person behaves a certain way is called a motive. Employee motivation is the reason an employee works a certain way on the job. There are many explanations of what motivates employees. One theory was developed by the psychologist Abraham Maslow in 1943. Maslow’s hierarchy of needs theory explains that an individual has different levels of needs.
Self-actualizing - realizing of individual potential, creative talents, personal future fulfillment;
Self-esteem - self-prospect, respect of others, recognition, achievement;
Social/Love and belongingness - friendship, affection, acceptance;
Safety - security, protection from physical harm, freedom from fear of deprivation;
Physiological- food, water, air, rest, shelter (from cold, storm).
This theory suggests that when one level of needs is satisfied, the next level has the greatest influence on a person’s behaviour.
During the 1950s Frederik Herzberg developed another theory of job satisfaction. It suggests that job satisfaction and job dissatisfaction come from two different sets of factors. One set he referred to as ‘motivating’ factors, and the other set he called ‘hygiene’ factors. The motivating factors (recognition, achievement, responsibility, opportunity for advancement, and the job itself) relate to internal satisfaction and influence employees to improve their performance. The set of hygiene factors (salary, company policies, working conditions, and relationships with other employees) are separate from the job itself. He suggests that hygiene factors must be present in order to prevent job dissatisfaction, but it is that motivating factors that influence employees to maximize their performance on the job.
These theories show that employee performance is a complex topic to understand. Developing a work environment where the employee meets the needs of the business and the business meets the needs of the employee is what the most successful managers work at.
Are there any other needs which you would add to the hierarchy? Where? Why?
Do you have any criticism of Herzberg’s/Maslow’s theory?
Which motivation theory – Maslow’s, Herzberg’s or any other – has the most practical value for today’s managers? Give your reasons.
Task IV. Find some information about other theories of motivation. Prepare a 3 minute report.
Text 8
1.Read the text and discuss: incentive schemes vs cash rewards. Which are better?
Incentive Schemes or Cash?
Employers often don’t know whether to offer incentive schemes (such as travel, trips, excursions, social events, merchandise) or cash to help their company to achieve its goals. When you ask employees what they want, they generally say ‘more money’ – but salary increases or annual bonuses are not always the best way to motivate staff. Non-cash rewards such as merchandise and travel can be a far more effective way to improve performance, boost staff morale and foster company loyalty.
Why do non-cash incentive schemes work better?
They provide a lasting reminder of the achievement and the positive feelings that go with it.
They offer the rewards that can be shown to others or talked about –and it is socially acceptable to ‘boast’ about the achievement. The same cannot be said for cash.
They provide a guilt-free form of reward, often something employees would not otherwise do or buy, whereas they may feel guilty for not spending cash on necessities.
They have a higher perceived value. The actual cash value is secondary to the recognition.
The employee’s family is often involved in the reward selection and the reward selection and the reward chosen may benefit the whole family.
Extra cash in the monthly pay packet disappears into the bank account or wallet. In fact, 72% of people receiving cash rewards use it to pay bills, can’t remember what they spent it on, or don’t even know they received it!
Task V. Work in pairs and decide which of these words and phrases are a) material benefits? b) non-material benefits?
profit-sharing scheme
non-contributory pension plan
fulfillment
company car
autonomy
to feel valued
to be acknowledged
commission
staff discount
attendance
reward
appreciation
on-time bonus
compensation plan
positive feedback
personal development
praise satisfaction
private medical insurance
How would you rank them for yourself, as an employee?As an employer?
Task VI. Read the following dialogues. Try to guess the meaning of the business idioms given in bold. Give their Russian equivalents
A:If this scheme goes through, it'll be the end of our jobs here. We've got a lot to lose.
B: All right, you needn't spell it out.
A: The new plant should have come on stream in March. Now it's been set back another six months.
B: But we still have to pay rent for the site to the Development Board—so that's another half million down the drain.
A:I see the auditors have queried your figure for 'goodwill' in the balance sheet.
B: Well, any business is worth more than its total assets. We're not just buildings and machinery; we're a going concern.
A: How do you go about costing overheads in the long term? You can't possibly tell what prices will be like in five years time!
B: Well, it's all done by rule of thumb, I must admit. You develop an instinct for these things...
A:How about you handling the negotiations with the union?
B: No thanks. That's your pigeon. I'm hoping to steer clear of the union for a while.
A: We must go straight to the top. I want a heart-to-heart talk with the Minister.
B: And don't be fobbed off with promises of 'public enquiries' and 'working parties'...
A: Busy?
B: I'll say. I'm up to my eyes in work!
A: That's a very smart new brief¬case.
B: Yes, isn't it? I got it for a song, too, from a man I know... Actually I suspect it fell off the back of a lorry...