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3.3.3 Motivation Theories

Revision Time: 8 minutes

Staff and employees are the people (personnel) of a business. Staff motivation is a major business influence, motivated staff are likely to work harder, more efficiently and keep working at the business for longer, reducing staff turnover.

Poor staff motivation influences businesses as employees are dissatisfied resulting in poor productivity, absenteeism and even turnover.

Motivational Theories

These are the following motivational theories you must know for the exam:

Maslow

Focuses on the psychological needs of employees, Maslow put forward a theory of five levels of human needs which employees need to have fulfilled at work to move up to the next.

Previous exam question:

There have been growing problems at PP Arrow Ltd’s UK factories. Production line workers are on permanent contracts but a recent survey, distributed by the management, revealed that 95% were demotivated.

Their complaints included:

  • Factories are too hot in the summer and too cold in the winter.
  • Pay rates are now lower than that offered by a similar factory nearby.
  • A lack of contact with management and no Feedback on how well they perform in their jobs.
  • Workers have no say in how shifts are organised or how work is planned.

Use Maslow’s hierarchy of needs to discuss the causes of production line workers’ demotivation.

Attempt the question yourself and them view the mark scheme below.

Show Mark Scheme

AO1 = 2, AO2 = 2, AO3 = 2

Security levels are fulfilled as all production line workers are on permanent contracts as this provides them with job security.


Physiological needs are not being met as production line workers have
complained about the temperatures in summer and winter. Poor working
conditions are likely to make workers demotivated and less productive.

Physiological needs as staff pay rates are lower than those in other
factories and this may mean they are unable to avoid getting into debt or
“make ends meet”.

Esteem needs not being met as there is a lack of contact with
management and no feedback on how well they performed in their jobs.
This may make workers feel less valued and demotivate them.


There is nothing in the stimulus to let us know if the workers social need is
being met but it would be logical to suggest that their self-actualisation
needs are not being met as they have no say in how work is organised in
the factory.

Herzberg

Two-factor theory of motivation. Motivators motivate staff. Hygiene factors do not, but without them staff are demotivated.

Without hygine factors, employees will be demotivated. Without motivators, they will not be demotivated but will not me motivated to work harder or more productively.

Previous exam question:

SYM Woodcrafts Ltd’s new Production Director is keen to improve the motivation of the 250 skilled workers in its factory. She has noted the following:

In the factory:

  • machines are now old and break down regularly
  • there has been an increase in the number of accidents in the last 2 years
  • managers make the decisions without consulting the skilled workers.

The skilled workers:

  • are paid salaries higher than those in similar businesses
  • perform the same tasks every day (eg a chair-maker makes chairs every day)
  • do not have their achievements recognised by the business.

Recommend two changes the Production Director can make to improve worker motivation. Use Herzberg’s Two-Factor Theory (motivators and hygiene factors) to support your suggested changes.


Which one of your suggested changes do you think will have the most impact?
Justify your choice.

Show Mark Scheme

AO1 = 2, AO2 = 4, AO3 = 3

Answers that make no use of Herzberg terminology and no use of the stimulus – award 0 marks.

In the factory:

  • machines are now old and break down regularly – hygiene factor.
  • there has been an increase in the number of accidents in the last 2 years – hygiene factor.
  • managers make the decisions without consulting the skilled workers – motivator.

The skilled workers:

  • are paid salaries higher than those in similar businesses – hygiene factor.
  • perform the same tasks every day eg a chair maker makes chairs every day – motivator.
  • do not have their achievements recognised by the business – motivator.

4.1.5 Customer Service

5.1.1 Internal Growth