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What are the most effective ways of motivating employees?

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Hamish Dunn Unit 2 Coursework March 2003 What are the most effective ways of motivating employees? Motivation is likely to increase productivity. Different people require different incentives to achieve their maximum potential and increase productivity. There is controversy as to which are the most effective types of motivation. The most common types of person are those whose incentive is money, those whose incentive is job enrichment (makes a job more rewarding by adding responsibility) and those who thrive on recognition of achievement. Abraham H. Maslow, 1954, produced a "Hierarchy of Needs" which depicts the most influential things to a human being. The hierarchy of needs was later put into a pyramid form (appendix 1.1). The most influential are at the bottom of the pyramid. For example, a person needs water to survive; these are called 'Body Needs'. The second is 'Security Needs' these include safety and are more dominant in young children. These can include the need for a friend or a parent to keep an eye out for you. The 3rd row up is 'Social Needs,' these include wanting interaction with other human beings for example teamwork would fulfill this need. ...read more.


Pay structures also allow room for a pay increase therefore motivating staff. (Appendix 1.2) shows a typical graded pay structure of for example a teacher. The lower paid jobs have lower differentials and the higher paid jobs have higher differentials and a broader band allowing more room for improvement. In every pay structure there is a trend line which most employees find themselves following (Appendix 1.3). However as with every company there are high performers and low performers that do not fit the trend. The productivity of a shopfloor employee (a labourer in the manufacturing industry) can be measured using a BSI (British Standard Institution) formula (Appendix 1.4). This formula can also be used to test the success of an incentive on an employee. The answer given by the formula is usually expressed out of 133. 100/133 being the average performance of an employee without an incentive and 133 being that of a fully motivated operator. Humans have many different needs. These could include Pension schemes or a company car. Pension schemes are good for employees as they offer good rates and motivate staff to earn more on top of their pension scheme; they also fulfill a human's need for security. ...read more.


The advantage of contribution related pay is that it promotes continuous improvement, therefore making the employee eligible for a higher pay and a higher status. This will also increase a company's productivity in the long-term. At 'Bass Brewers' pay is calculated on an overall contribution rating of 50% competency and 50% achievement. Using contribution related pay makes employees more aware of the importance of skills in the modern day world. This could also mean employees will take advantage of training opportunities in future in order to increase their; in the long term this will lead to a more skilled workforce. I have found that there is not one definite motivator, as 'Maslow' understood, but a variety of different incentives must be used, for every employee to reach their maximum potential. However some factors are more influential than others for example money. Many of 'Maslow's ideas rely on finance, a new car boosts a person's ego, but at the cost of the car. I have therefore concluded that if one sole incentive were to be used it should be 'Contribution-Related Pay,' as it not only takes into account your past performance and productivity but it also considers one's skills (competence) which will benefit the company in the long term. Appendices Appendix 1. ...read more.

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