“The key to a successful firm is a well motivated workforce”

At Ford Car Company employees are given a 15 minute break where they have the opportunity to play football and various other activities because the company provides these facilities. This obviously motivates the workforce. It helps them to loosen up before they must continue their duty. This also occurs in the Japanese firms who have a high motivation rate. They understand that by motivating employees increases productivity. The firms have Tai - chi lessons which eases stress.

McGregor's Theory X and Theory Y - His theory was that he thought two different managers motivated people in different ways. Manager X thought workers were motivated by money and manager Y assumed people were motivated by needs. Both are correct in several ways.

A motivated work force is vital in some business such as a travel agent who comes into contact with people everyday. If they were not stimulated to communicate and explain to customers', sales could fall. Customers would identify that firm as unreliable or inhospitable. This would not be a good label for a firm to be associated as. In this sort of job where employees are expected to do the same task continuously, job rotation would be a good way to motivate them. The employees would gain more skills. Therefore when another member of staff was unavailable someone else could take over, this would give them more responsibility and happier knowing they can be dependable to do an extra job.

In factories, it is important to have an enthusiastic staff because the job is generally very repetitive. Therefore, job enrichment could help to motivate staff. The plan is to give the employee further responsibility e.g. supervising new staff. When this takes place it should be made clear that, this is a good thing and perhaps they will work harder. It would also be suitable to start job enlargement where they are given more to do. This would arise when certain workers are good at a job so productivity increase they are able to do the same work in less time. As a result, the person is given more work. This will let them become aware that their good performance is being acknowledged.

Although motivation is an essential a business, cannot succeed alone on this. A firm can have staff that are willing to work but if there is no finance coming into the business they will not have the money to purchase the resources, machinery and would not be able to promote their product. There are also many other costs, which would have to be dealt with. Even if firms had the money to purchase machinery, it may be faulty. Therefore, it is obvious that money is a vital thing in a successful business.

Another factor is if the firm may not have a good product. People may not want to purchase it. A firm can be wealthy with a motivated staff however if there is not a consumer group who desire a product like the one they are selling the firm will not be successful. If a firm does not make profit, it cannot survive. A company has numerous overheads that are required to be paid whether or not the product sells or doesn't. This includes rent, insurance etc. A firm needs to discover their customers' needs before manufacturing goods. Customers are necessary for a business to exist now a day because there is such vast competition.

It is clear that although a motivated workforce does assist a successful business, there are many other areas that need to be looked at. It is important that firms have finance, good machinery, customers, a decent product and a market for the product. In some trades motivation is crucial, nevertheless not in all cases.