Motivation and its centrality to successful business practice
Motivation
Motivation is a key factor when managing any business. Motivation is important for a high productivity level.
Productivity measures the relationship between the inputs into the business and the resulting output:
There are several ways of measuring productivity:
* Output per worker
* Output per hour / day / week
* Output per machine (if the business includes machinery).
Unit costs divide the total costs by the number of units produced
Unit costs = Total Costs / Units of output
Stock levels A business will usually set itself a level of finished goods that it should receive. This is designed to satisfy the demand expected by the marketing department plans and based on what the production department thinks they can produce. If the output levels falls below this then the productive efficiency has fallen not meeting the requirements set by the company.
Maslow created his hierarchy of needs
Many people are motivated in many different ways some want more money, some workers just want to meet new friends.
This is why Maslow created his hierarchy of needs:
Self-Fulfilment;
Succeeding to your full potential
Self-Esteem;
Having recognition from achievement - e.g. discovering new ideas and receiving a bonus.
Social Needs;
Friendship, a sense of belonging to a team
Safety Needs;
Protection against danger, job security, protection from poverty and fair treatment.
Physiological Needs;
Food, rest, recreation and shelter.
A hierarchy means that those things at the top are more important than those at the bottom. At whatever age people start work, they will be motivated by physiological or basic needs. They will want to earn enough money for food and recreation and perhaps for shelter if they have left home. The employee will want safety in their job, a pleasant environment (safety needs). As they move through their working lives these aspects may become less motivating. They will want to feel a part of the organisation they work for and to develop friendships (social needs). They will want to gain promotion and be given additional responsibilities and more pay (self-esteem needs). Employees can only feel self-fulfilment if they achieve something and are praised for their achievement.
My company who I interviewed was a large organisation there are many factors which must be taken into account when working with a large organisation. When a company works in a production line they allow the mass production of consumer goods. Every job on a production line is simple and repetitive, and requires little training for the worker. Only basic needs would be met - pay, a job, a safe working environment. An employee though has the threat of losing their job which can easily be replaced.
There are a number of advantages and disadvantages of working in a large organization.
Here are some of them:
Advantages:
. More opportunities for promotion and career development.
2. More opportunities to take responsibility and make decisions when higher up the organisation.
3. Higher wages and bonuses for some workers if the company is successful.
4. More people to meet and make friends with
5. Company pension schemes and better health and safety schemes.
Disadvantages:
. Many workers will have low skilled and poorly paid jobs.
2. Less job security if the company is unsuccessful.
3. Close supervision over what workers are doing.
4. Production line jobs are boring and repetitive.
5. Poor communication and relations between workforce and management.
Many people have wondered what people like and dislike about their job, Frederick Herzberg carried out some research during the 1960s to find out people's opinions about their jobs. He took a sample of people at different levels in different jobs and asked them two questions:
) What is it about your job that you dislike?
The following were identified:
* salary and job security
* working conditions
* supervision by the boss
* company rules and policy
* relationships with subordinates
Herzberg gave these the name hygiene factors. If these factors are satisfied, they do not make employees any happier, they just remove unhappiness.
2) What is it about your job that you like?
Again the following were identified:
* the job itself
* being given responsibility
* achieving success and being recognised by management
* gaining promotion
* personal development
He gave these the name motivators. It is these factors which really motivate the workforce. I have noticed that they are similar to the top two levels of Maslow's hierarchy of needs
Self-esteem
Succeeding to your full potential
Self-fulfillment
Having recognition for achievement - e.g. discovering new ideas and receiving a bonus.
Frederick Winslow Taylor had an idea that workers are motivated mainly by pay
Taylor realised these factors:
* Workers ...
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* achieving success and being recognised by management
* gaining promotion
* personal development
He gave these the name motivators. It is these factors which really motivate the workforce. I have noticed that they are similar to the top two levels of Maslow's hierarchy of needs
Self-esteem
Succeeding to your full potential
Self-fulfillment
Having recognition for achievement - e.g. discovering new ideas and receiving a bonus.
Frederick Winslow Taylor had an idea that workers are motivated mainly by pay
Taylor realised these factors:
* Workers don not naturally enjoy work and need close supervision and responsibility.
* Managers should break down production into a series of small tasks.
* Workers should be given training days so they can work efficiently as possible.
* Therefore workers can be paid according to how many they producing in a set time (performance-related pay).
* As a result workers are encouraged to work hard and therefore maximise their productivity.
Taylor's theory was very beneficial for businesses; it meant increased productivity levels and lower unit costs. Taylor's theory was closely related to a leadership management style; managers take all decisions and simply give orders to those below them.
However workers disliked Taylor's approach as they were only given boring, repetitive tasks to carry out and were being treated poorly. Companies weren't allowing workers to work to their full potential. This lead to an increase in strikes and other forms of industrial action from dis-satisfied workers.
Elton Mayo believed that workers were not just concerned with money but also with social needs. Mayo introduced the human relation school of thought who introduced managers taking more interest in their employees and listening to their needs and realising that they enjoy working as a team. Mayo conducted several experiments
He discovered that workers are motivated by:
* Better communication between managers and workers.
* Greater manager involvement in employees working lives.
* Working in groups or teams.
Financial rewards
Wages and salaries Wages are usually paid per hour worked and workers receive money at the end of the week. The advantage of having a salary is, it is a simple and easy way of rewarding a worker. There can be disadvantages a worker may be de-motivated by a worker who they feel is less productive and is being paid the same.
Piece-rate is rewarding an employee when they produce in a certain time.
Rewarding the workforce Nearly all employees are motivated when they first start working but as their job progresses employees loose motivation from their wage and salaries. This why there are more sources of income for employees including overtime and bonus pay.
Overtime is where someone is paid for working more hours in a week than is stated in his or her contract of employment. Overtime is usually paid at a higher rate than the basic pay for the job. For example a general worker could be paid £5.00 an hour who works for 45 hours a week, but then decides to do overtime, the overtime she does will be paid at a substantial £6.00 for the hours she does overtime.
Bonus pay is where extra money is paid if the employee or the organisation achieves a certain target. This may be measured on the level of output from the employee; therefore it is a productivity bonus. Or it may be measured by an employee's sale; therefore it is a sales bonus. Bonus pay encourages the employee to work harder and reach the certain point which the company has set; the outcome is more motivated employees and a more organised and established company.
Fringe Benefits These are items which employees receive in addition to their normal wage e.g. company car, private health insurance, free lunch.
Performance-related pay is paid to those employees who meet certain targets. The targets are often evaluated and reviewed in regular appraisals with managers. Managers set at target for an employee and if the employee reaches this target they are rewarded this motivates employees to work to that target.
Profit sharing gives employees a chance to own a share in the company meaning that they now own a proportion of the company.
Share ownership is a noticeable incentive for an improved workforce. Senior managers are given shares in the company rather than a straightforward bonus or membership; this means staff can also be shareholders.
Financial Rewards
Advantages
Disadvantages
Wages and salaries
Simple and Easy!
Worker may resent being paid the same as a less productive colleague.
Piece-rate
Increases speed therefore productivity.
Workers may not concentrate on quality.
Fringe benefits
Helps meet workers human and social needs.
Too much use may increase costs dramatically.
Performance-related pay
Easier to manage staff.
In service based company it may be difficult to measure.
Profit sharing
Workers are likely to be keener towards the company.
The share may be too small to be an incentive.
Share ownership
Workers are less likely to leave.
Only open to management staff may become jealous.
Financial Rewards
Advantages
Disadvantages
Non-financial rewards
Job enrichment gives workers more incentive because it gives them more interesting, challenging and complex tasks.
* It gives workers the chance to test themselves and use their full range of abilities.
* It increases the complexity or challenge involved in the task.
* Workers should receive more recognition from their work
* Workers show responsibility and that they can handle the increasing complexity and pressure from the job.
But from job enrichment managers must not set a task which is too hard if they do then the workers will not posses the correct skills and expensive mistakes will be made.
Job enlargement means giving workers more but different tasks to do on the same task. This will reduce repetition in a persons work; evidently this will increase a workers sense of achievement.
Job rotation means having a wider variety of tasks, even rotating jobs with other members but not increasing the challenge of the job.
Team working is where employees work in groups. This will build up sense teamwork and the worker will feel that they play an important part in the business.
There are different types of team; includes production teams (known as cells), quality circles and management teams. It can create flexibility of production, as employees are likely to be multi-skilled.
Empowerment is when power is given to authority so employees can make their own decisions regarding their working life. Employees are encouraged to consider problems they face and come up with solutions.
But for empowerment to be successful workers must have adequate training and/or good skill levels in order to be trusted. If not they may create expensive problems which the company must pay for.
Training
Training is an important for an individual to acquire job-related skills and knowledge. The company losses money and workers from training but it is also very beneficial, the employee gains a lot from the training. The main benefits are improved productivity and more motivated and more skilled staff.
Why should a business train its staff, here are some points why:
* To introduce new employees to the company.
* Provide employees with better knowledge about the business and its market.
* The workers are more skilled
* It supports the introduction of new working methods, such as new production techniques.
* Improved product quality
* Increase workers loyalty to the company.
Induction training enables a new recruit to become as productive as possible. It can avoid costly mistakes. The length of induction will vary from job to job and will depend on the complexity of the job, the size of the business or the position of the employee in the business.
More areas may be included in induction training such as:
* Learning the duties from the job
* Meeting new colleagues
* Learning the aims of the business
* Learning the internal workings and policies of the business.
Methods of training include:
On-the-job and Off-the-job training
On-the-job training occurs when workers pick up skills whilst working along side experienced workers in the workplace. For instance this could be an employee working alongside fellow employees with a higher stator thus employees learning from their colleagues.
Off-the-job training occurs when employees are sent to at training course; this may take place at a training agency or local college. Training can take the form of lectures or self-study this will develop general studies and knowledge that can be used in a variety of situations e.g. being challenged with a harder task to complete.
On-the-job training
Off-the-job training
* Cheaper to carry out.
* Learn from specialists in that area of work who can provide an in-depth study.
* Training is very relevant and practical dealing with day to day requirements of the job.
* Can easily work with a group of people.
* The workers are still working so can still be productive.
* Employees respond better when taken away from their job.
* Employees who are new to a job or role will become productive as possible.
* Workers may be able to obtain more qualifications or certificates.
On-the-job training
Off-the-job training
Analysis
Introduction
Motivation means the will to work; therefore you can only have a successful business when you have well motivated staff. The company Johnson & Johnson wound management which is one business unit in a much larger multinational company, the pay and facilities are much higher than that of, for instance a bread company so I have taken this into consideration but here is my analysis of the situation the company has before them.
Analysis
The business I 'interviewed' was Johnson & Johnson, they specialise in wound care. From my questionnaire I can see that most individuals in the business
work for money as Frederick Taylor's theory pointed out. But Elton Mayo said that workers don't only work for money but also for social needs. Many other employees worked so they could use their skills to their full potential and that employees would like to meet new friends. From these results I can identify that money is not always the answer to motivate an employee, employees must be happy with their environment and the people they work with.
Research
I asked the employees of my chosen workplace what motivates them to work hard. Overall the most popular answer was 'bonus related pay'. This answer leads me to believe that wage or salary is an important factor when managing a successful business. As Frederick Winslow Taylor said that employees are mainly motivated by salary, on this occasion Taylor is correct, although Elton Mayo said that employees are not just motivated by salary which one can see from the graph.
Employees must be happy with their environment and other issues.
E.g.
Achieving their full potential and meeting new people in the workplace.
To have a motivated workforce you must not employees, but employees who work as a team, who work together. You will then have content employees you will know they are all friendly towards each other. You will be able to notice if an employee is unhappy because they won't join in. if an employee was unhappy but did not work in a team the only way you will be able to find out if they are unhappy is you confront them, this would be time-wasting and you may even see productivity levels decrease.
I asked employees 'is everyone treated fairly in the workplace?'
As from this graph you can see this is worrying for the business if not everyone is treated fairly. Employees will not want to work if their employees are not happy, therefore productivity will drop, and it proves that the management is not doing a very good job. Management should be more concerned about their employee, that's one of the reasons that a company has a management. One way to check if a company has unhappy employees is to speak to their employees every month or week. This may take time off management but there's no point even having employees if a considerable number of them are not happy. As Maslow made clear that safety needs are very important for a successful business, the safety needs theory includes: Protection against danger, job security, protection from poverty and fair treatment the business must cover these needs when talking to individual employees. This will leads employees to know they have an advantage of having a job with good facilities and safety will encourage an employee to work; they know that they are working for a successful business. The answers the employees presented were different, some said poor, some said good. As Frederick Herzberg theory 'Hygiene Factors' explained an employee may not be motivated by the businesses facilities but it can certainly de-motivate an employee. T TTTTT he majority of employees said the facilities were poor. Having good facilities is a key factor in motivating employees, the employees will feel they are being treated well by the company and will work harder.
Fringe benefits are an advantage to a company. Most businesses often offer fringe benefits, because when I asked employees they had a lot to say. Fringe benefits encourage employees, they are a commendation to award hard work, but fringe benefits can only help a company to certain point.
Another useful way to encourage an employee would be to offer them free training days, this helps an employee to know they are wanted and to utilise their potential. If an employee is better skilled then they will try for promotion, if they do this it means they will work harder and the company will benefit.
This graph isn't reliable though, 9 people said quite a few, 7 said not much. I asked them does this benefit you 90% said yes. Although training days do benefit employees. They also benefit the company.
Employees can become frustrated, tired, they may need a day off once in a while to sort themselves out maybe from any problems outside of work. An employee knowing that they are allowed to have a day off (for a good reason) with pay will result in encouragement. On my questionnaire employees said that to have assurance that you can have a day off (for a good reason) motivates them.
I then asked the employees of the company 'how does your management motivate you'. Many said encouragement, some 'taking notice of my opinions' this leads me to talk about the theories presented by Maslow, Maslow's 2nd highest theory in his hierarchy of needs is self-fulfilment this means an employee can know that they are praised for working hard in an well established company. For a management to improve in what it does is by listening to there staff, this can earn the company more products through new ideas, and an employee knowing they are being noticed, means they will try harder for a higher position at the company. Management said they motivate their staff in different ways:
* Bonus related pay
* Appreciation
* Acknowledgment of goals achieved
* Planning career map (management giving reference to other interested companies, in the employee)
* Communication-listening to staff
* More days off with pay
Management was asked how they motivate their staff. They said by setting people goals, a chance for staff to prove themselves. They also said reinforcing the importance of getting the job done. Motivation is a fact of whether the individual wants to work or not.
Conclusion
The point is different employees are motivated in different ways. The company seems to be motivating its staff well, but there are numerous changes which the company need to make for a more successful business they are given free training days when I asked 'what motivates employees to work hard' the answer was bonus related pay the company seems to motivating its employees well considering bonus related pay. The most worrying question I asked was 'is treated fairly' the answer most of the time, but also the answer not at all was a very substantial answer. The company need to sort this affair out of not all employees being treated fairly otherwise they will be de-motivated. As Maslow said in his hierarchy of needs everyone must work in a team (social-needs). The company also was asked 'the facilities at your workplace are', poor was the answer given the most, as Herzberg says hygiene factors are very important to an employee because it can de-motivated them, an improvement would be to allow employees to list what they do not like about the facilities in their workplace and the managers can take this into consideration. Employees are given days off with pay which is important, free training days can encourage employees to work for a promotion in the company therefore they will work harder. The company must know their employees, find out problems. An increase in motivation is an increase in productivity which you need for a high productivity level resulting in a high output and a high input.
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