2.5 motivation and rewards department of economics and business bis

2.5 MOTIVATION AND REWARDS2.5 MOTIVATION AND REWARDS

Department of Economics and Business BIS

Motivation is the thing which makes you do something. Eg I am hungry-this motivates me to eat.Motivation in terms of workers is what makes someone work (harder)

Motivation is the thing which makes you do something. Eg I am hungry-this motivates me to eat.Motivation in terms of workers is what makes someone work (harder)

The Role of Motivation in Achieving Objectives

Motivation and Ability Equals Performance

NB Performance in a job is also a function of ability level (so training is important) as well as motivation.

NB Performance in a job is also a function of ability level (so training is important) as well as motivation.

People have needs / goals that motivate them to work hard.

If not satisfied then frustration results in:

People have needs / goals that motivate them to work hard.

If not satisfied then frustration results in:

Consequences of a Poorly Motivated Workforce



• Lateness, absence, sickness, high labour turnover.

• Poor quality work, low output. High level of customer complaints

• Unwillingness to take responsibility.


• Quarrels with colleagues.

• Disputes with management.

• Accidents.

• Damage to equipment or property.



Can lead to: Can lead to: • increased costs • loss of sales• reduced profits due to waste or inefficiency.

• increased costs • loss of sales• reduced profits due to waste or inefficiency.



Benefits of a Well-Motivated Workforce

• Higher labour productivity levels, reduced labour cost per unit.

• Improved quality, enhanced reputation, lower level of defects.

• Lower labour turnover and associated costs.

• Lower absenteeism, improved punctuality.


Benefits of a Well-Motivated Workforce

• Greater willingness to contribute ideas – could lead to cost-saving,and bigger profits.

• Greater desire to take on responsibility – saves costs, as less supervision is required.

• Greater willingness to accept change.


What Motivates a Human?

Basic Assumptions

Need: In order to survive bodies need warmth.

Goal: Earn money to pay for heating / clothes.

Need: In order to survive bodies need warmth.

Goal: Earn money to pay for heating / clothes.

ExampleExample

Needs can be classified into two categories:Needs can be classified into two categories:

• primary - physical, eg food, water, warmth, air, sleep.

• secondary –social needs, eg love, esteem, achievement, power.


Basic Assumptions

• A person has a need when he / she has not had a need met

• Once need is felt they focus on a goal to satisfy it.


Basic Assumptions

The Importance of Money as a Motivator

Money a key reason why people go to work.

Need it to pay for food, water, warmth to survive.

Money a key reason why people go to work.

Need it to pay for food, water, warmth to survive.



Money used by organisations to reward people.

Can help to motivate a person to work harder.

Money used by organisations to reward people.

Can help to motivate a person to work harder.


But…often not the most important motivator.



Other Reasons Why People Work

• Gets people out of the house / provides meaning and structure to the day.

• Provides an opportunity to socialise, interact with others.


• Provides an opportunity to use / develop knowledge, skill.

• Can provide a challenge, a sense of achievement, increase power and boost self esteem.


Other Reasons Why People Work

18 year old school leaver may be more interested in: Earning enough money to pay for or rent his / her own flat.

18 year old school leaver may be more interested in: Earning enough money to pay for or rent his / her own flat.

ExampleExample

40 year old manager, worked in same position for 10 years, already owns own house, may want: More challenging job, willing to take drop in salary to secure this.

40 year old manager, worked in same position for 10 years, already owns own house, may want: More challenging job, willing to take drop in salary to secure this.

People’s needs are Different and May Change


2.5 motivation and rewards department of economics and business bis

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