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-actualization - realizing of individual potential, creative talents, personal future fulfillment;
Aesthetic and cognitive – new knowledge and understanding, justice and beauty;
Self-esteem/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 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.
TEXT 8
Read the text and discuss incentive schemes vs cash rewards. Which ones would motivate more?
Incentive scheme 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!