Motivating Workers

Motivation
People work for several reasons:
 Have a better standard of living
 To secure livelihood
 Gain experience and status
 Have job satisfaction
Motivation is the reason why employees want to work hard and work effectively for
the business. Money is the main motivator, as explained above. Other factors that
may motivate a person to choose to do a particular job may include social, esteem
needs , job satisfaction , job security.
Why motivate workers? Why do firms go to the pain of making sure their workers
are motivated? When workers are well-motivated, they become highly productive
and effective in their work, become absent less often, and less likely to leave the
job, thus increasing the firm’s efficiency and output, leading to higher profits.
Motivation Theories
 F. W. Taylor: Taylor based his ideas on the assumption that workers were
motivated by personal gains, mainly money and that increasing pay would
increase productivity (amount of output produced). Therefore he proposed
the piece-rate system, whereby workers get paid for the number of output
they produce. So in order, to gain more money, workers would produce more.

However, this theory is not entirely true. There are various other motivators
in the modern workplace, some even more important than money.
 Maslow’s Hierarchy: Abraham Maslow’s hierarchy of needs shows
that employees are motivated by each level of the hierarchy going from
bottom to top. Mangers can identify which level their workers are on and then
take the necessary action to advance them onto the next level.
 One limitation of this theory is that it doesn’t apply to every worker. For some
employees, for example, social needs aren’t important, but they would be
motivated by recognition and appreciation for their work from seniors.
 Herzberg’s Two-Factor Theory: Frederick Herzberg’s two-factor theory,
wherein he states that people have two sets of needs:
Basic animal needs called ‘hygiene factors:
 status
 security
 work conditions
 company policies and administration
 relationship with superiors
 relationship with subordinates
 salary
Needs that allow the human being to grow psychologically, called the ‘motivators’:
 achievement
 recognition
 personal growth/development
 promotion
 work itself
According to Herzberg, the hygiene factors need to be satisfied, if not they will act
as de-motivators to the workers. However, hygiene factors don’t act as motivators
as their effect quickly wear off. Motivators will truly motivate workers to work more
effectively.
Motivating Factors
Financial Motivators
 Wages: often paid weekly. They can be calculated in two ways:
 Time-Rate: pay based on the number of hours worked. Although
output may increase, it doesn’t mean that workers will work sincerely
use the time to produce more- they may simply waste time on very few
output since their pay is based only on how long they work. The
productive and unproductive worker will get paid the same amount,
irrespective of their output.
 Piece-Rate: pay based on the no. of output produced. Same as time-
rate, this doesn’t ensure that quality output is produced.
  Salary: paid monthly or annually.
 Commission: paid to salesperson, based on a percentage of sales they’ve
made. The higher the sales, the more the pay.
 Bonus: additional amount paid to workers for good work
 Performance-related pay: paid based on performance on meeting agreed
targets.
 Profit-sharing: a scheme whereby a proportion of the company’s profits is
distributed to workers. Workers will be motivated to work better so that a
higher profit is made.
 Share ownership: shares in the firm are given to employees so that they
can become part owners of the company. This will increase employees’
loyalty to the company, as they feel a sense of belonging.
Non-Financial Motivators
 Fringe benefits are non-financial rewards given to employees
 Company vehicle/car
 Free healthcare
 Children’s education fees paid for
 Free accommodation
 Free holidays/trips
 Discounts on the firm’s products
 Job Satisfaction: the enjoyment derived from the feeling that you’ve done a
good job. Employees have different ideas about what motivates them- it
could be pay, promotional opportunities, team involvement, relationship with
superiors, level of responsibility, chances for training, the working hours,
status of the job etc. Responsibility, recognition and satisfaction are in
particular very important.
So, how can companies ensure that they’re workers are satisfied with the job, other
than the motivators mentioned above?
 Job Rotation: involves workers swapping around jobs and doing each
specific task for only a limited time and then changing round again. This
increases the variety in the work itself and will also make it easier for
managers to move around workers to do other jobs if somebody is ill or
absent. The tasks themselves are not made more interesting, but the
switching of tasks may avoid boredom among workers.
 Job Enlargement: where extra tasks of similar level of work are added to a
worker’s job description. These extra tasks will not add greater responsibility
or work for the employee, but make work more interesting.
  Job Enrichment: involves adding tasks that require more skill and
responsibility to a job. This gives employees a sense of trust from senior
management and motivate them to carry out the extra tasks effectively.
Some additional training may also be given to the employee to do so.
 Team-working: a group of workers is given responsibility for a particular
process, product or development. They can decide as a team how to organize
and carry out the tasks. The workers take part in decision making and take
responsibility for the process. It gives them more control over their work and
thus a sense of commitment, increasing job satisfaction. Working as a group
will also add to morale, fulfill social needs and lead to job satisfaction.
 Opportunities for training: providing training will make workers feel that
their work is being valued. Training also provides them opportunities for
personal growth and development, thereby attaining job satisfaction.
 Opportunities of promotion: providing opportunities for promotion will get
workers to work more efficiently and fill them with a sense of self-
actualisation and job satisfaction.

Organization and Management

Organizational Structure
Organizational structure refers to the levels of management and division of
responsibilities within a business. They can be represented on organizational charts
(left).
Advantages:
 All employees are aware of which communication channel is used to
reach them with messages
 Everyone knows their position in the business. They know who they are
accountable to and who they are accountable for
 It shows the links and relationship between the different departments
 Gives everyone a sense of belonging as they appear on the organizational
chart
The span of control is the number of subordinates working directly under a
manager in the organizational structure.
The chain of command is the structure of an organization that
allows instructions to be passed on from senior managers to lower levels of
management.
Now, if you look closely, there is a link between the span of control and chain of
command. The wider the span of control the shorter the chain of
command since more people will appear horizontally aligned on the chart than
vertically. A short span of control often leads to long chain of command.
Advantages of a short chain of command (these are also the disadvantages of a
long chain of command):
 Communication is quicker and more accurate
 Top managers are less remote from lower employees, so employees
will be more motivated, and top managers can always stay in touch with the
employees
 Spans of control will be wider, This means managers have more people to
control This is beneficial because it will encourage them to delegate
responsibility (and so the subordinates will be more motivated and feel
trusted. However, there is the risk that managers may lose control over the
tasks.
Line Managers have authority over people directly below them in the
organizational structure.
Staff Managers are specialists who provide support, information and assistance to
line managers. The IT department manager in most organisations act as staff
managers.
Management
Five primary roles of management:
 Planning: setting aims and targets for the organisations/department to
achieve. It will give the department and it’s employees a clear sense of
purpose and direction. Managers should also plan for resources
required to achieve these targets – the number of people required, the
finance needed etc.
 Organizing: managers should then organize the resources. This will include
allocating responsibilities to employees, possibly delegating.
 Coordinating: managers should ensure that each department is
coordinating with one another to achieve the organization’s aims. This
will involve effective communication between departments and managers
and decision making.
 Commanding: managers need to guide, lead and supervise their
employees in the tasks they do and make sure they are keeping to their
deadlines and achieving targets.
 Controlling: managers must try to assess and evaluate the
performance of each of their employees. If some employees fail to achieve
their target, the manager must see why it has occurred and what he can do
to correct it- maybe some training will be required or better equipment.
Delegation is giving a subordinate the authority to perform some tasks.
Advantages to managers:
 managers cannot do all work by themselves
 managers can measure the efficiency and effectiveness of their subordinates’
work
However, managers may be reluctant to delegate as they may lose their control
over the work.
Advantages to subordinates:
 the work becomes more interesting and rewarding- increased job satisfaction
 employees feel more important and feel trusted– increasing loyalty to firm
 can act as a method of training and opportunities for promotions, if they do a
good job.
Leadership Styles
1. Autocratic style is where the managers expects to be in charge of the
business and have their orders followed. They do all the decision-making, not
involving employees at all. Communication is thus, mainly one way- from
top to bottom. This is standard in police and armed forces organizations.
2. Democratic style is where managers involve employees in the decision-
making and communication is two-way from top to bottom as well as bottom
to top. Information about future plans is openly communicated and discussed
with employees and a final decision is made by the manager.
3. Laissez-faire (French phrase for ‘leave to do) style makes the broad
objectives of the business known to employees and leaves them to do
their own decision-making and organize tasks. Communication is rather
difficult since a clear direction is not given. The manger has a very limited
role to play.
Trade Unions
A trade union is a group of workers who have joined together to ensure
their interest are protected. They negotiate with the employer (firm) for better
conditions and treatment and can threaten to take industrial action if their requests
are denied. Industrial action can include overtime ban (refusing to work overtime),
go slow (working at the slowest speed as is required by the employment contract),
strike (refusing to work at all and protesting instead) etc. Trade unions can also seek
to put forward their views to the media and influence government decisions relating
to employment.
Benefits to workers of joining a trade union:
 strength in number- a sense of belonging and unity
  improved conditions of employment, for example, better pay, holidays,
hours of work etc
 improved working conditions, foe example, health and safety
 improved benefits for workers who are not working, because they’re sick,
retired or made redundant (dismissed not because of any fault of their own)
 financial support if a member thinks he/she has been unfairly dismissed or
treated
 benefits that have been negotiated for union member such as discounts on
firm’s products, provision of health services.
Disadvantages to workers of joining a trade unions:
 costs money to be member- a membership fee will be required
 may be asked to take industrial action even if they don’t agree with the
union- they may not get paid during a strike, for example.

Recruitment, Selection and Training of Workers

The Role of the H.R. (Human Resource) Department
 Recruitment and selection: attracting and selecting the best candidates
for job posts
 Wages and salaries: set wages and salaries that attract and retain
employees as well as motivate them
 Training programmes: give employees training to increase their
productivity and efficiency
 Health and safety: all laws on health and safety conditions in the workplace
should be adhered to
 Redundancy and dismissal: the managers should dismiss any
unsatisfactory/misbehaving employees and make them redundant if they are
no longer needed by the business.
Recruitment
Job Analysis, Description and Specification
Recruitment is the process from identifying that the business needs to employ
someone up to the point where applications have arrived at the business.
A vacancy arises when an employee resigns from a job or is dismissed by the
management. When a vacancy arises, a job analysis must be prepared. A job
analysis identifies and records the tasks and responsibilities relating to
the job. It will tell the managers what the job post is for.

Advertising the vacancy

Internal recruitment is when a vacancy is filled by an existing employee of
the business.
Advantages:
 Saves time and money- no need for advertising and interviewing
 Person already known to business
 Person knows business’ ways of working
 Motivating for other employees to see their colleagues being promoted-
urging them to work hard
Disadvantages:
 No new skills and experience coming into the business
 Jealousy among workers
External recruitment is when a vacancy is filled by someone who is not an
existing employee and will be new to the business. External recruitment
needs to be advertised, unlike internal recruitment. This can be done in
local/national newspapers, specialist magazines and journals or even recruitment
agencies (who will recruit and send along candidates to the company when they
request it).
When advertising a job, the business needs to decide what should be included in
the advertisement, where it should be advertised, how much it will cost and
whether it will be cost-effective.
When a person is interested in a job, they should apply for it by sending in
a curriculum vitae (CV) or resume, this will detail the person’s qualifications,
experience, qualities and skills. The business will use these to see which candidates
match the job specification. It will also include statements of why the candidate
wants the job and why he/she feels they would be suitable for the job.
Selection
Applicants who are shortlisted will be interviewed by the H.R. manager. They will
also call up the referee provided by the applicant.
Interviews will allow the manager to assess:
 the applicant’s ability to do the job
 personal qualities of the applicant
 character and personality of applicant
In addition to interviews, firms can conduct certain tests to select the best
candidate. This could include skills tests, aptitude tests personality tests group
situation tests etc.
When a successful candidate has been selected the others must be sent a letter of
rejection.
The contract of employment: a legal agreement between the employer and
the employee listing the rights and responsibilities of workers. It will include:
 the name of employer and employee
 job title
 date when employment will begin
 hours to work
 rate of pay and other benefits
 when payment is made
 holiday entitlement
 the amount of notice to be given to terminate the employment that the
employer or employee must give to end the employment etc.
Employment contracts can be part-time or full-time.
Advantages to employer of part-time employment (disadvantages of full-time
employment to employer):
 more flexible hours of work
 easier to ask employees just to work at busy times
 easier to extend business opening/operating hours by working evenings or at
weekends
 works lesser hours so employee is willing to accept lower pay
 less expensive than employing and paying full-time workers.
Disadvantages to employer of part-time employment (advantages of full-time
employment to employers)
 less likely to be trained because the workers see the job as temporary
 takes longer to recruit two part-time workers than one full-time worker
 can be less committed to the business/ more likely to leave and go get
another job
 more difficult to communicate with part-time workers when they are not in
work- all work at different times.
Training
Training is important to a business as it will improve the worker’s skills and
knowledge and help the business be more efficient and productive,
especially when new processes and products are introduced. It will improve the
workers’ chances at getting promoted and raise their morale.
The three types of training are:
 Induction training: an introduction given to a new
employee, explaining the firm’s activities, customs and procedures and
introducing them to their fellow workers.
Advantages:
 Helps new employees to settle into their job quickly
 May be a legal requirement to give health and safety training before
the start of work
 Less likely to make mistakes
Disadvantages:
 Time-consuming
 Wages still have to be paid during training, even though they aren’t
working
 Delays the state of the employee starting the job
 On-the-job training: occurs by watching a more experienced
worker doing the job
Advantages:
 It ensures there is some production from worker whilst they are
training
 It usually costs less than off-the-job training
 It is training to the specific needs of the business
 Disadvantages:
 The trainer will lose some production time as they are taking some
time to teach the new employee
 The trainer may have bad habits that can be passed onto the trainee
 It may not necessarily be recognised training qualifications outside the
business
 Off-the-job training: involves being trained away from the workplace,
usually by specialist trainers
Advantages:
 A broad range of skills can be taught using these techniques
 Employees may be taught a variety of skills and they may become
multi-skilled that can allow them to do various jobs in the company
when the need arises.
Disadvantages:
 Costs are high
 It means wages are paid but no work is being done by the worker
 The additional qualifications means it is easier for the employee to
leave and find another job
Workforce Planning
Workforce Planning: the establishing of the workforce needed by the business for
the foreseeable future in terms of the number and skills of employees
required.
They may have to downsize (reduce the no. of employees) the workforce because
of:
 Introduction of automation
 Falling demand for their products
 Factory/shop/office closure
 Relocating factory abroad
 A business has merged or been taken over and some jobs are no longer
needed
They can downsize the workforce in two ways:
 Dismissal: where a worker is told to leave their job because their work or
behaviour is unsatisfactory.
  Redundancy: when an employee is no longer needed and so loses their
work, through not due to any fault of theirs. They may be given some money
as compensation for the redundancy.
Worker could also resign (they are leaving because they have found another job)
and retire (they are getting old and want to stop working).
Legal Controls over Employment Issues
There are lot so government laws that affect equal employment opportunities.
These laws require businesses to treat their employees equally in the workplace and
when being recruited and selected- there should be no discrimination based on age,
gender, religion, race etc.
Employees are protected in many areas including
 against unfair discrimination
 health and safety at work
 against unfair dismissal
 wage protection (through the contract of employment since it will have
listed the pay and conditions). Many countries have a legal minimum
wage– the minimum wage an employer has to pay its employee.
An industrial tribunal is a legal meeting which considers workers’ complaints of
unfair dismissal or discrimination at work. This will hear both sides of the case and
may give the worker compensation if the dismissal was unfair.

Internal and External Communication

Effective Communication
Communication is the transferring of a message from the sender to the
receiver, who understands the message.
Internal communication is between two members of the same organisations.
Example: communication between departments, notices and circulars to workers,
signboards and labels inside factories and offices etc.
External communication is between the organisation and other organisations or
individuals. Example: orders of goods to suppliers, advertising of products, sending
customers messages about delivery, offers etc.
Effective communication involves:
 A transmitter/sender of the message
 A medium of communication eg: letter, telephone conversation, text
message
 A receiver of the message
  A feedback/response from the receiver to confirm that the message has
benn received and acknowledged.
One-way communication involves a message which does not require a feedback.
Example: signs saying ‘no smoking’ or an instruction saying ‘deliver these goods to
a customer’
Two-way communication is when the receiver gives a response to the message
received. Example: a letter from one manager to another about an important matter
that needs to be discussed. A two-way communication ensures that the person
receiving the message understands it and has acted up on it. It also makes the
receiver feel more a part of the process- could be a way of motivating employees.
Downward communication: messages from managers to subordinates i.e. from
top to bottom of an organization structure.
Upward communication: messages/feedback from subordinates to managers i.e.
from bottom to top of an organization structure
Horizontal communication occurs between people on the same level of an
organization structure.

Communication Methods
Verbal methods (eg: telephone conversation, face-to-face conversation, video
conferencing)
Advantages:
 Quick and efficient
 There is an opportunity for immediate feedback
 Speaker can reinforce the message- change his tone, body language etc. to
influence the listeners.
Disadvantages:
 Can take long if there is feedback and therefore, discussions
 In a meeting, it cannot be guaranteed that everybody is listening or has
understood the message
 No written record of the message can be kept for later reference.
Written methods (eg: letters, memos, text-messages, reports, e-mail, social media,
faxes, notices, signboards)
Advantages:
 There is evidence of the message for later reference.
 Can include details
 Can be copied and sent to many people, especially with e-mail
  E-mail and fax is quick and cheap
Disadvantages:
 Direct feedback may not always be possible
 Cannot ensure that message has been received and/or acknowledged
 Language could be difficult to understand.
 Long messages may cause disinterest in receivers
 No opportunity for body language to be used to reinforce messages
Visual Methods (eg: diagrams, charts, videos, presentations, photographs,
cartoons, posters)
Advantages:
 Can present information in an appealing and attractive way
 Can be used along with written material (eg: reports with diagrams and
charts)
Disadvantages:
 No feedback
 May not be understood/ interpreted properly.

Factors that affect the choice of an appropriate communication method:

 Speed: if the receiver has to get the information quickly, then a telephone
call or text message has to be sent. If speed isn’t important, a letter or e-mail
will be more appropriate.
 Cost: if the company wishes to keep costs down, it may choose to use letters
or face-to-face meetings as a medium of communication. Otherwise,
telephone, posters etc. will be used.
 Message details: if the message is very detailed, then written and visual
methods will be used.
 Leadership style: a democratic style would use two-way communication
methods such as verbal mediums. An autocratic one would use notices and
announcements.
 The receiver: if there is only receiver, then a personal face-to-face or
telephone call will be more apt. If all the staff is to be sent a message, a
notice or e-mail will be sent.
 Importance of a written record: if the message is one that needs to have
a written record like a legal document or receipts of new customer orders,
then written methods will be used.
  Importance of feedback: if feedback is important, like for a quick query,
then a direct verbal or written method will have to be used.
Formal communication is when messages are sent through established channels
using professional language. Eg: reports, emails, memos, official meetings.
Informal communication is when information is sent and received casually with
the use of everyday language. Eg: staff briefings.
Communication Barriers
Communication barriers are factors that stop effective communication of
messages.