MOTIVATION

It is defined as a management process of influencing people’s behaviour to

achieve stated goals. It also refers to all forces and influences that employees
want to behave in a certain way i.e. include incentives to exert effort. When
employees are motivated, it means that they are satisfied and they enjoy the job
they are doing. Motivation is a tool used by leaders and managers to encourage
their employees to work willingly as hard as they can. Thus motivation refers to
the desire to do something or the drive to reach a goal.

What motivates workers?

 Pay
 Promotion
 Working conditions e.g. annual leave, uniforms, working hours, working
environment
 Fringe benefits e.g. company house, sponsored vacation, school fees for
children, company vehicle, and free health care
 Colleagues
 Management style
 Work related achievements

Benefits of motivated staff

 Higher levels of productivity: workers will perform their tasks quickly. They
work harder and are more productive
 Lower labour turnover: employees won’t be willing to look for other jobs
elsewhere. They are satisfied with their current job.
 Lower absenteeism rate: employees won’t absent themselves from work
for no apparent reason. Employees who are not motivated are likely to take
time off when it is not absolutely necessary
 Creativity: employees are more likely to come up with new ideas and they
will be willing to take on responsibilities
 Employees’ loyalty: employees when they feel trusted or valued, they tend
to give their best to the business.
 Improved customer service: A motivated employee will recognise that a
happy customer is likely to be a repeat customer and also that the
reputation of the business rests not only on the goods produced but on the
quality of aftercare that their customers receive.

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  Better quality products: more attention will be paid to the way in which
work is carried out, whether that is the production of goods or the
provision of services.
 Increased likelihood of achieving business goals: when employees are
work as hard as they can the business will have the best chance of
achieving any stated objectives. Employees will even be willing to work for
unpaid overtime.

Indications of poorly motivated staff

 Absenteeism: workers can just decide to be absent from work without any
justification
 Reporting late for duty: the workforce will arrive late and may be leave
their jobs very early before the normal knock-off time.
 Poor performance: poor quality work and a greater waste of raw materials
 High labour turnover: employees just ‘come and go’. They won’t take time
at the business and this will cost the business more in training and
recruiting new staff
 Conflicts: there will be a lot of disagreements within the workforce.
Employees have a negative attitude towards work.
 Poor response rate: workers do not respond very well to orders and any
response is often slow.
 Low worker morale: employees feel as if they are not needed and this
decreases their productivity

MOTIVATIONAL THEORIES

Motivational theories are divided into two namely content theories and process
theories

Content Theories: motivation theorists whose work focuses on the nature of the
work itself and or the terms and conditions of employment. These theories are
also based on the idea that individuals are motivated by their desire to fulfill their
human needs (inner needs). Thus, their human needs energize them to work
harder. Content theories also focuses on how the managers can create favorable
conditions that allow workers to satisfy their human needs.

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Content Theories include:
 Taylor
 Mayo
 Maslow
 Herzberg

Process Theories: are motivation theories whose work focuses on the

psychological drivers that can encourage employees to work harder. Basically
they focus on how and why individuals choose certain behaviours in order to
meet their personal goals. Process theories study what people are thinking about
when they decide whether or not to put effort into a particular activity.

Process Theories include:

 Vroom
 McClelland

a) Frederick Winslow Taylor (Economic Man)

Taylor put forward the idea that workers are motivated mainly by pay. Taylor
believed that people are motivated by money and that they should be paid
according to the output that they produce. His idea was that employees should be
observed in order to identify the most efficient way of working. Once the best
method had been decided, all employees should carry out the required task in the
same way. Taylor wanted to advise management on the best ways to increase
worker performance or productivity. He also argued that workers do not naturally
enjoy work and so need close supervision and control.
Managers were required to breakdown production into series of small tasks.
Workers should then be given appropriate training and tools so that they can
work as efficient as possible on one set task. Performance is then recorded and
working conditions will be altered. This approach of detailed recording and
analysis of results is known as scientific management. Workers are then paid
according to the number of items they produce in a set period of time i.e. piece
rate pay. Piece rate refers to a payment made per unit produced. Piece rates
encourage workers to work harder and maximise productivity. An employee is
referred to as an economic man i.e. he/she is driven by the desire to earn more

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money. An economic man will work harder to be able to receive the highest pay
possible. The chance of earning extra money stimulates further effort.

How to improve output per worker according to Taylor’s scientific approach

 Select workers to perform a task
 Observe them performing the task
 Record the time taken to do each part of the task
 Identify the quickest method and do not allow them to make any changes
to it
 Train workers in the quickest method
 Supervise workers to ensure that the best way is being carried out
 Pay workers on the basis of results i.e. piece rate (based on theory of
economic man)

Application of Taylor’s work

Henry Ford used Taylor’s methods to design the first ever production line, making
ford cars. This was the start of the era of mass production.

Limitations of Taylor’s Theory

 Piece rate payment is not suitable in a service industry where the product
itself is invisible
 The theory encourages autocratic style of management which can motivate
staff
 Money is not the need at work. Employees have a wide range of needs.
Taylor’s theory does not address the problem of how to motivate
employees once their desire for money has been satisfied i.e. workers may
have the desire for status symbols etc.
 Mass production can lead to repetitive or boring tasks which the
demotivate employees
 Mass production involves the use of machines and a lot of workers will be
replaced by machines

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b) Abraham Maslow (1908-1970)
Maslow based his theory on a series of human needs which he believed could be
placed in order of importance. Human needs are the wants or desires of people
that they hope will be met at their work or in their activities outside the work
environment. Maslow put forward that there are five levels of human needs
which employees need to have fulfilled at work. All of the needs are structured
into a hierarchy and only once a level of needs has been fully met, would a worker
be motivated by the opportunity of having the next need up in the hierarchy
satisfied. For example, a person who is dying of hunger will be motivated to
achieve a basic wage in order to buy food before worrying about having a secure
job contract or the respect of others. Maslow view. Once a need is satisfied, it no
longer motivates the worker.

Maslow’s Hierarchy of needs

Key terms

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Cell-production: refers to groups or teams of employees performing the various
tasks required to complete a process or product. It is deemed because the group
gets the satisfaction of completing a product. It is an element of social needs

Self-esteem: refers to the desire of an individual to be respected by others and to

gain their approval

Application of Maslow in the business environment

 Basic needs: paying a fair wage which enable employees to buy essentials
for life
 Safety: provide a contract of employment; follow the health and safety
guidelines for a safety work environment
 Social needs: encourage team work; encourage social activities and
communication between all levels of employees. E.g. social soccer, hosting
Christmas party etc.
 Esteem needs: give recognition for good work; show appreciation e.g.
employee of the month; motivating job titles (e.g. a security guard-security
enforcement director; garbage Collector- environment sanitation
Technician); promote people to give them additional responsibilities
 Self-actualisation: meet the need for feeling of achievement perhaps
through assigning more difficult and challenging tasks. Allow for further
training and progression within the business.

Critics of the theory

 Not everyone has the same needs as assumed by the hierarchy. It is
possible for a person not to desire the approval of others and therefore,
once their ‘safety needs’ have been met, self-actualisation might be their
next goal
 In the real world, it is very difficult to identify the degree to which each
need has been met and which level a worker is on. Thus it is very difficult
for the manager to know for sure which level on the hierarchy each
employee is on
 Money is necessary to satisfy basic needs, yet it might also play a role in
satisfying the other levels of needs such as status and esteem

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  Self-actualisation is never permanently achieved as the hierarchy has
suggested. In the real world, life jobs must continually offer challenges and
opportunities for fulfillment.
ELTON MAYO (Hawthorne Effect)
Elton Mayo (1880-1994) thought that the work rate (productivity) of employees is
affected by the physical conditions in which they were placed. Mayo introduced
the Human Relations Schools of thought which focused on managers taking more
of an interest in the workers, treating them as people who have worthwhile
opinions and realising that workers enjoy interacting together. Mayo conducted a
series of experiments at the Hawthorne Factory of the Western Electric Company
in Chicago. He isolated two groups of women workers and changed factors such
as lighting, financial incentives and working conditions. He expected to see
productivity levels declining as lighting and other conditions become progressively
worse. What he actually discovered surprised him. Whatever the change in
lighting or working conditions, the productivity levels of workers improved or
remained the same.
These results forced Mayo to conclude that working conditions in themselves
were not that important in determining productivity levels. Other motivational
factors should be investigated first before conclusions could be drawn.

Mayo’s Conclusion on motivation

 Changes in working conditions and financial rewards have little or no effect
on productivity
 Workers are motivated by better communication between managers and
workers (i.e. Hawthorne workers were consulted over the experiments and
also had the opportunity to give feedback).
 Workers are motivated by working in teams of groups
 Workers are also motivated by a greater manager involvement in
employees working lives. Hawthorne workers responded very well to
increased level of attention they were receiving.
 Mayo concluded that workers are not just concerned with money but could
be better motivated by having their social needs met whilst at work.
(Similarities with Taylor and Maslow).

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Frederick Herzberg’s Two Factor Theory
Frederick Herzberg (1923) believed in a two factor theory of motivation. He
argued that there are certain factors that a business could introduce that would
directly motivate employees to work harder (motivators). However there are also
factors that would demotivate employees if not present but would not in
themselves actually motivate employees to work harder (Hygiene factors).
Thus Herzberg analysed motivational factors by grouping them into two broad
categories namely hygiene factors and motivators

Motivators
Motivators drive people to achieve more in their work as these are what lead to
employees gaining job satisfaction. Employees are sometimes concerned about
the job itself for instance, how interesting the work is and how much opportunity
it gives for extra responsibility

Examples of Motivators
 Recognition of work done
 Promotion
 Being given responsibility
 Nature of work

How business can satisfy motivators

 Give positive feedback to employees
 Involve employees in decision making
 Allow delegation of tasks
 Ensure that the work is stimulating and rewarding good performance
 Implement things like job rotation, job enlargement and job enrichment
etc.

Hygiene Factors
Refers to the aspects of work that do not motivate but, if not present, cause
dissatisfaction. These are factors which surrounds the job rather than the job
itself e.g. a comfortable working temperature. It is believed that a worker will
only turn up to work if a business has provided a reasonable level of pay and safe

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working conditions but these factors will not make him work harder at this job
once hi/she is there.

Examples of Hygiene Factors

 Pay (wages and salaries)
 Fringe benefits
 Relationship with co-workers
 Status and security
 Company policy

How business can satisfy hygiene factors

 Pay a fair wage / salaries
 Make sure that the working conditions are as good as possible e.g. suitable
temperature
 Company rules should be reasonable and not too rigid
 Encourage two-way communication and team work
 Limited supervision

NB: Herzberg argued that people do not work harder if the hygiene factors are
present at work, but their output can decline if conditions deteriorate. Motivators
on the other hand are intrinsic in nature, and produce job satisfaction and higher
output.

Ways to improve the nature and content of the actual Job

a) Job enlargement: workers being given a variety of tasks to perform which
would make the work more interesting. The tasks are not necessarily challenging.
Additional tasks are given to broaden the employee’s skills and experience.
b) Job Enrichment: involves workers being given a wider range of more complex,
interesting and challenging tasks surrounding a complete unit of work. This would
give a greater sense of achievement
c) Job Rotation: This involves changing a worker’s tasks more regularly to
overcome potential boredom
d) Empowerment: delegating more power to employees to make their own
decisions over areas of their working life.

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Process Theories:
a) McClelland
b)Vroom

Motivational Need Theory by McClelland (1917-1998)

McClelland argued that the effort exerted by individuals or the way they behave
depends on three motivational needs. Both managers and employees are driven
by these three motivational forces.
i) Achievement Motivation (N-ach): these are result oriented individuals. Their
main aim is to achieve goals especially the challenging ones. Such individuals are
further motivated if they can produce results that are better the expected or
required.
ii) Authority/Power Motivation (N-pow): such people are power or authority
seekers. They always want to lead and control others. They feel very mush
comfortable when they gain control over others. Their fulfillment would also
come from self-esteem and respect that would be acquired if there was a
successful outcome as a result of their influence.
iii) Affiliation Motivation (n-affil): some people just need to be liked by others.
This need is likely to drive a person to want to work as part of a team where they
feel respected and also supported.

How can business meet these needs?

Need for achievement:

 Set challenging but realistic targets
 Recognition of achievements by managers

Need Power:

 Involve employees in decision making

 Encourage team work
 Encourage two-way communication
 Give employees small areas of responsibility

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Need Affiliation:
 Promote team work

Victor Vroom’s Expectancy Theory

Vroom believed that employees behave in different ways depending on what they
think will lead to desired outcome. Thus effort exerted by individuals depends on
the expectancy of where that particular course of action will lead to. Vroom
thought that employees are prepared to work harder if they feel that their efforts
will be suitably rewarded.

The three beliefs of Expectancy Theory

a. Valence: refers to the depth of the want of an employee in relation to desire or
need for the reward. The reward can be intrinsic i.e. job satisfaction or extrinsic
i.e. money
b. Expectancy: the degree to which people believe that putting effort into work
will lead to a given level of performance or result. Employees need to believe that
increased effort on their part can actually lead to a better performance.
c. Instrumentality: employees need to fill confident that if they deliver an
increased level of performance they will receive their expected reward. The
employees must have confidence in whatever they have been promised by the
manager.

Vroom’s Conclusions
 Individuals will only act when they have a reasonable expectation that their
behaviour will lead to the desired outcome.
 There is positive correlation between effort and the results
 The rewards plays an important role in satisfying the needs of employees
 The employee’s behaviour is a result from conscious choice among
alternatives. The purpose of the choice is to maximise pleasure and to
minimise pain

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Methods of motivation

FINANCIAL MOTIVATION
There are many ways in which businesses can offer financial rewards to their
employees. These methods of payment or financial reward are used to provide
incentives to employees to encourage them to work hard and effectively. Five of
the most frequently used methods are: wages, salary, bonus, commission and
profit sharing.

Financial Rewards
1. Wages
A wage is a payment for work, usually paid weekly.

When calculating the wage to be paid, they can be worked out in a number of
different ways. They can use time rate or piece rate.
Time Rate: is the amount paid to an employee for one hour work. Under this
system, earnings are calculated by multiplying the hourly time rate by the
number of hours at work. It is a payment based on the number of hours worked.
Unsocial hours or overtime raise the pay rate. E.g., if an employee is paid $10 per
hour and they work for 40 hours, then they will be paid $400

Conditions for use – time rate is often used:

 Where employees have no control over the speed of work

 Where output cannot be measured or attributed to individuals e.g., service
industries – a bus driver or hotel receptionist
 Where output is of a non-standard type

Advantages
 Less harmful to quality
 Less harmful to health of employees
 Simple and easy to understand – easy to calculate the worker’s wages
 Appropriate in most circumstances

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Disadvantages
 Pay is not related to effort or output but merely to the time spend at work
 Can encourage time wasting
 Does not provide incentive for increased effort because good and bad
workers get paid the same amount of money.
 Tasks not completed on time
 Close supervision/monitoring is required to ensure workers keep working
and producing a good quality product. This is expensive because more
supervisors are needed by the business.

Piece Rate
Is an amount paid for each unit of output.
The earnings of an individual worker or group of workers are related to the
quantity of items produced. The pay is based on the number of units produced.
The focus will be on the quantity rather than quality. The more they make, the
more they get paid. A basic rate is usually paid, with additional money paid
according to how many products have been produced. Piece rate can be applied
to bonus systems where employees who produce more than a set target of
output can be rewarded. However, piece rate can only be used where it is
possible to measure the performance of an individual or team.
Conditions for use
 Appropriate where output is standardised
 Appropriate output is measurable
 Where there is a link between effort and output
 Appropriate where output can be attributed to an individual work and
he/she receives a reward commensurate with effort

Advantages
 Stimulates effort
 Encourages workers to devise improved methods
 No need for supervision i.e., cut on costs
 Targets are surpassed
 There is no time wasting

Disadvantages
 Encourages more output at the expense of quality

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  Method is in appropriate in-service industries where output is
immeasurable
 Production breakdowns can affect employees at a next stage of production
 More harmful on employees’ health i.e., employees overwork themselves
Salary: a salary is payment for work, usually paid monthly. It refers to an agreed
amount paid monthly in return for work undertaken. It is paid to those in the
white collar sector i.e. professionals like Doctors, teachers, lawyers, office staff or
management etc. Salary does not depend on the number of hours worked or
units produced. Each organisation uses different salary bands or grades

Example of Salary Grades

Grade A: $700 -$1000: Most skilled and educated employees
Grade B $400-$699: Semi skilled staff
Grade C Less than $400: Unskilled and without any experience

Advantages
 The employee will be certain about what he/she is going to get at the end
of the month
 Enables the management and the employee to plan in advance
 Is suitable where output is not measurable
 It is suitable for management positions where staff are expected to put
extra time to complete task

Disadvantages
 Can encourage time wasting
 It can only work when individuals are closely monitored
 Does not provide incentive for increased effort.

NB: Wages are given are to manual staff and are given weekly or fortnightly while
salaries are for management.

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Commission – is payment relating to the number of sales made. These additional
payments are often paid to sales staff similar to piece rate but applying to sales
staff – this encourages them to sell as many products as possible – increasing
sales.
An individual is paid according to the sales he/she has made in a given period.
Businesses usually give a basic salary plus a commission based payment on top. It
is appropriate for salespersons. The basic salary will improve job security. This
method will inspire employees to achieve the highest possible level of sales.

Example
Each salesperson is paid a basic salary of $400 a month and earns a commission of
2% of the value of sales made. The table below show the sales made by each
salesperson in the month of February 2016

Salesperson A Salesperson B
value of sales 24 000 9 000

Question: Calculate the total payment received by salesperson A for February

2016. [3]
Total payment = basic salary + commission
= $400+ (2/100x24 000)
=$400+ $480
=$880

Advantages
 The method is cost effective i.e. no need for a supervisor
 Employees are motivated to exert more effort in order to get a higher
commission
 Employees are time conscious

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Disadvantages
 No job security especially if there is no basic salary
 Team work is discouraged since individual salespersons will be keen to
maximise their personal sales
 Stressful for the sales staff because their pay fluctuates – falls during a bad
month.

BONUS: refers to a payment made to employees in addition to their

basic/contractual wage or salary as a reward for good work. It is given to
employees when they have reached and surpassed the targets set. It is a thank
you given to employees so that the can maintain the status quo.
Performance Related Pay: a bonus scheme to reward staff for above –average
work performance. It is used for many groups of managerial, administrative and
professional workers. If performance standards are not visible in terms of quality
produced, a system of staff appraisal is established for PRP to be introduced.
Workers are paid a bonus according to the degree to which the targets have been
exceeded. Workers fell recognised and special. If they are paid a bonus.

Advantages
 Staff are motivated to improve performance if they are seeking for an
increase in financial rewards
 Target setting can help to give purpose and direction to work of an
individual
 Annual appraisal offers the opportunity for feedback on the performance of
an individual

Disadvantages
 Some employees are not driven by the need to earn additional financial
rewards
 Team spirit can be damaged by the rivalry/ competition between
employees
 Favouritism can harm manager-employee relationships

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Profit Sharing Scheme: a bonus for staff based on the profits made by the
business. It is usually paid as a proportion of basic salary. It is paid to encourage
employees to identify with the company. Thus, the employees and owners will be
working towards the same goal. PSS also provide an incentive for increased effort
and staff turnover is greatly reduced.

Advantages
 Potential conflict between owners and workers is reduced
 The business can attract highly qualified and experienced workers from
rival firms
 it is not a burden to the firm since it is paid out of the profits made.
 Workers will be motivated to work harder
 Employees will be profit and cost conscious

Disadvantages
 The scheme can be costly to set up especially in large organisations with a
lot of employees
 When the business made a loss or small profits, workers won’t be
motivated
 Can lead to lower dividends to the owners of the business
 The reward is not closely related to individual effort hence it may not
effectively increase motivation.

Fringe Benefits: refers to benefits or perks given to an employee which have a

financial benefit to them. These are non-cash forms of rewards. They include:
 Company house
 Company car
 Education for children
 Discounts on company products
 Pension schemes paid
 Low interest on company loans
 Health care paid
 Free trips abroad/holidays

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Advantages
 The business is able to recruit and retain skilled and experienced staff
 Leads to higher productivity and profitability of the business
 Can help to reduce the employees’ financial burden e.g. free transport and
accommodation
 It can motivate staff to work harder

Disadvantages
 Some employees are motivated by cash and cash alone
 Fringe benefits add on to the costs of the business

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Non-Financial Motivators/ Rewards
Include things such as:
 Job enlargement
 Job enrichment
 Job rotation
 Induction
 Training
 Job redesigning
 Worker participation
 Team working
 Empowerment
 Promotion
 Delegation
 Non-financial fringe benefits

Job Enlargement: involves adding tasks of a similar level to a worker’s job. It

simply gives more variety to employees’ work which makes it more enjoyable. Job
enlargement can lead to job satisfaction in the short-term. It also used to reduce
absenteeism. Additional tasks are given to broaden the employee’s skills and
experience.

Job Enrichment: adding tasks of a higher level to a worker’s job. Workers may
need training, but they will be taking a step closer to their potential. Workers
become more committed to their job which gives them more satisfaction.
Involves workers being given a wider range of more complex, interesting and
challenging tasks surrounding a complete unit of work. This would give a greater
sense of achievement. Job enrichment allows for two-way communication and
workers must be given complete units or work so that individual contribution can
be identified.

Job Rotation: Workers in a production line can now change jobs with each other
and making their jobs not so boring. It can help train employees in different
aspects of their jobs so that they can cover for other employees of they do not

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show up in future. Worker’s tasks are changed more regularly to overcome
potential boredom.
Job redesigning: Involves the restructuring of a job. It can be inform of adding and
sometimes removing certain tasks and functions on a worker’s job description. It
encompasses job enlargement, enrichment and rotation. Employees should be
part and parcel of the job redesigning exercise. The job can be made more
challenging and interesting. A bored employee is more likely to lose concentration
and can easily make costly mistakes.
Training: The business can encourage the development and improvement of
employee’s skills. The business can achieve this by offering educational leaves or
educational loans at favourable interest rates. Sometimes trainers can be invited
to the business to reduce transport costs to the employees. Training can increase
the status of employees and gives them a better chance of promotion to better
paid jobs. It can also lead to employee loyalty. Training leads to long-term job
satisfaction. There are two types of training i.e. on-the-job and off-the-job
training.
Worker participation: workers are actively encouraged to be part of the decision
making process. Employee participation recognises that employees are likely to
have some worthwhile ideas to contribute to the business and that, in some
instances, they might have a better solution to a problem than their managers.
Managers can allow the employees to elect their own worker representative. The
worker representative will represent employees at council meetings. The business
can be using an open-door policy. Worker participation will lead to quality
decisions. It can lead to greater commitment since management considers
employee feelings and opinions

How to achieve employee participation:

 Appointing employees to the board of directors
 Staff meetings where employees are free to ask and to receive information
 Electing a representative
 Training

Benefits of worker participation:

 Improves motivation and commitment
 The business can utilise the knowledge and experience of workers
 Improvement in terms of information flow leading to quality decisions
 Leads to job satisfaction

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Limitations of worker participation:
 Time consuming
 Conflict of interest may arise
 Workers lack management skills

Team Working: Employees are organised into groups and each group is given a
certain task to perform. A team is a group of people who work together to
achieve a common goal e.g. management team, financial team, production team,
quality circles etc. Business will not be able to achieve its objective if employees
fail to work together in teams. Team working involves cell production. Cell
production occurs when employees are given the responsibility to produce a
certain product or to complete a certain process. Cell production is deemed to be
motivating because the group gets the satisfaction of completing a product or a
substantial part of one.

TEAM stands for T= together; E= everybody; A= achieves; M= more

Benefits of Team working

 The team as a whole delivers greater results than the sum of each team
member’s individual effort.
 Teams generate more creative solutions than individuals because they build
on one another’s ideas
 Employees have an opportunity to be involved in decision making
 Teams are usually capable of completing tasks quicker than individuals.
 Team members help to keep each other motivated

Problems of team working

 Team conflicts may arise. Conflicts lead people’s focus away from the job.
 Team members can learn bad cultures from difficult employees.
 Some employees work more effectively when they are not in teams. Thus
they are not team players.
 Can be time consuming when workers need to consult one another.

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Empowerment: delegating more power to employees to make their own
decisions over areas of their working life. Workers are allowed some degree of
control over how the task should be undertaken.
Delegation: refers to the passing of authority down the organisational hierarchy.
Subordinates are given the responsibility and authority to do a given task. It is
done to enable top managers to concentrate on major issues especially as the
organisation grows in size. The subordinates will feel valued and more trusted.

Benefits of delegation
 Work becomes more interesting and rewarding
 Employees feel important and trusted
 Helps train workers, giving them better career opportunities

Problems of delegation
 Inexperienced employees may fail and this may tarnish the manager’s good
name
 Managers may lose management control
 When subordinates perform better than managers, the managers may feel
insecure.

Promotion Opportunities: achievement can also be rewarded by giving a

promotion to those who meet, and perhaps exceed, expectations in their
performance. Sometimes only a small promotion is needed to give an employee
the feeling that their efforts have been recognised and appreciated. The belief
that promotion is a possibility for those who perform well can be a strong
motivator for some employees.

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Revision Questions
Short answer questions
1. Identify the financial rewards that might be given to employees [2]
2. Identify two non-financial rewards that might be given to employees [2]
3. Explain one situation in which financial rewards might not be appropriate [3]
4. Give two benefit of team working [3]
5. Explain the difference between Herzberg’s motivators and hygiene factor [5]
6. Briefly outline what is meant by ‘valance’, ‘expectancy’ and ‘instrumentality’ in
Vroom’s expectancy theory
[5]
8. What do you understand by the term ‘motivation’ [3]
9. Outline the differences between content and process motivational theories [4]
10. Should performance related pay be introduced for the teacher in your school.
[5]
11. Consider two different level of Maslow’s hierarchy. Explain how these could
be satisfied at work. [4]
12. a) Define the term ‘Piece rate’ [2]
b) Explain any two problems of a piece rate [3]
13. a) Define the term ‘time –based wage’ [2]
b) Explain any two benefits of a time-based wage. [3]

ESSAYS
14. Discuss how the owner of a retail clothes business might motivate their
employees. Your answer should refer to motivational theories that you have
studied. [20]
15. Discuss the importance of motivation in a manufacturing business. You should
relate your answer to the work of motivational theories that you have studied.
[20]

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