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Chapter 6: Motivating Workers (Job Satisfaction ((The enjoyment derived…
Chapter 6: Motivating Workers
Why people work?
Money
to pay for necessities and some luxuries
Security
a sense of security ; knowing that your job and pay are safe
Social needs (affiliation)
feeling part of a group or organisation, meeting people, making friends at work
Esteem needs (self-importance)
feeling important, feeling that the job you do is important
Job satisfaction
Employment is derived from feeling that you have done a good job
Well-motivated workers
high productivity (employees work more effectively)
increased output
higher profits
unhappy workers
do not work effectively
low output
lower/no profit
Motivation Theories
F.W. Taylor
All individuals are motivated by personal gain and therefore, if they are paid more, they will work more effectively.
Abraham Maslow
1) Physiological needs
food, rest, recreation, shelter, wages high enough to meet weekly bills
2) Safety / security needs
protection against danger, protection agains poverty, fair treatment, job security
3) Social needs
friendship; a sense of belonging to a team, work colleagues that support you at work
4) Esteem needs
having status and recognition, achievement, independence
5) Self-actualisation
succeeding to your full potential, feeling that you have done a good job not just for financial and personal reward, being promoted and given more responsibility
Frederick Herzberg
Motivators
achievement
recognition
personal growth/development
advancement/promotion
work itself
'Hygiene' factors
status
security
work conditions
company policies and administration
relationship with supervisor
relationship with subordinates
salary
Factors that motivate employees
financial rewards
Wages
(payment for work, usually paid weekly)
worker gets paid on a regular basis and doesn't have to wait long for some money
If employee works longer, they are paid their regular amount per hour plus an extra amount
Drawbacks
Wages have to be calculated every week which takes time and money
Wages clerks are often employed to perform this task
Time rate
(payment by the hour)
easy to calculate the worker's wages and the worker knows exactly what they will be paid for working a certain period of time
Drawbacks
The system to record the time takes time.
Good and bad workers get paid the same amount of money
More supervisors needed to make sure the workers keep working
clocking-in system is needed to determine the number of hours worked by the employees
Piece rate
(workers are paid depending on the quantity of products made - the more they make, the more they get paid)
Advantages
encourages worker to work faster and produce more goods
Disadvantages
Workers may focus on making a large number of products instead of quality
Workers who are careful in their work will not earn as much as those who rush
If the machinery breaks down, the employees will earn less money
Salaries
(payment for work, usually paid monthly) - straight into bank account
Easy to calculate salary costs for the business - amount of money per year divided into 12 monthly amounts
Paid for the job and extra work not usually paid for
employer has the money in their bank account longer than if they were paying workers wages
has to be calculated once a month instead of four times a month - as with wages
May get more money if the following rewards are added to basic salary:
Commision
payment relating to the number of sales made
Profit Sharing
a system whereby proportion of the company's profits is paid out to employees
Bonus
an additional amount of payment above basic pay as a reward for good work
Performance-related pay
pay which is related to the effectiveness of the employee where their output can easily be measured
Share ownership
shares in the company are given to employees so that they become part owners in the company
non-financial rewards
Fringe benefits: non-financial rewards given to employees
company vehicle (car)
discount on firm's products
health care are paid for
children's education fees paid
free accomodation
share options (where company shares given to employees)
generous expenses accounts (for food and clothing)
pension paid for by the business
free trips abroad / holidays
Job Satisfaction
(The enjoyment derived from feeling that you have done a good job)
the amount of money paid to an employee
opportunities for promotion
working conditions
fringe benefits or non-financial rewards
the way the employee is managed or treated
working hours
colleagues
nature of work itself
level of responsibility
sense of achievement derived from job
recognition for good work
chance for training
status of the job
Ways a business can increase job satisfaction
Job rotation
Workers swapping around and doing each specific task for only a limited time and then changing round again
Job enlargement
extra tasks of a similar level of work are added to a worker's job description - shouldn't increase responsibility, should give greater variety
Job enrichment
Involves looking at jobs and adding tasks that require more skill and/or responsibility - additional training may be necessary
Autonomous work groups or teamworking
a group of workers is given responsibility for a particular process, product or development - workers can be more involved in decision making and employees feel more committed