Unit 2 – Human Resource Management
2.4 – Motivation and Demotivation
Motivation is the internal and external drive that encourages people to take actions towards achieving goals, especially in the workplace. Demotivation refers to loss of enthusiasm, energy, or interest in work, often leading to lower productivity.
Motivational Theories
- Maslow’s Hierarchy of Needs:
- Employees are motivated by meeting a series of needs: physiological, safety, social, esteem, and self-actualization.
- Lower needs must be satisfied before higher-level needs become motivating.
- Herzberg’s Two-Factor Theory:
- Hygiene factors: (e.g. pay, working conditions) prevent dissatisfaction but do not motivate.
- Motivators: (e.g. achievement, recognition, responsibility, growth) create satisfaction.
- Taylor’s Scientific Management:
- Money is the main motivator; work should be broken down into simple tasks and employees paid per output.
- McGregor’s Theory X and Theory Y:
- Theory X: Employees are lazy and need close supervision.
- Theory Y: Employees enjoy work, seek responsibility, and can motivate themselves.
Maslow's hierarchy can be visualized as a pyramid:
- Physiological (basic needs: pay, shelter)
- Safety (job security, safe environment)
- Social (teamwork, belonging, respect)
- Esteem (status, recognition)
- Self-actualization (opportunity to achieve full potential)
Financial & Non-Financial Rewards
Financial Rewards
- Salaries and wages: Regular payments to employees; wages often hourly, salaries are annual/monthly.
- Bonuses: Extra payments for meeting targets or exceptional output.
- Commission: Payment based on a percentage of sales made.
- Profit-sharing: Employees receive a share of company profits.
- Fringe benefits: Perks such as company car, insurance, subsidized meals.
Non-Financial Rewards
- Recognition: Praise, awards, 'employee of the month'
- Career advancement: Opportunities for promotion and new responsibilities
- Training: Access to learning and professional growth
- Autonomy: Empowering staff to make decisions
- Flexible hours & job redesign: Job rotation, enrichment, enlargement
- Team building & positive culture: Social events, strong workplace relationships
Training & Appraisal
Types of Training
- Induction: Introduction to company policies, culture, colleagues for new hires.
- On-the-job: Learning while doing actual job tasks (coaching, mentoring, job rotation).
- Off-the-job: External courses, workshops, seminars, simulation or e-learning.
Appraisal
- Performance appraisal: Formal, regular process of evaluating employee’s work and providing feedback.
- Methods include self-appraisal, peer review, supervisor assessment, and 360-degree feedback.
- Purpose: Identify strengths, development needs, link to pay/promotions, support personal goals.
Labour Turnover
Definition: Labour turnover is the percentage of staff leaving a business over a given time period.
Formula:
\[ \text{Labour Turnover (\%)} = \frac{\text{Number of employees leaving}}{\text{Average number of employees}} \times 100 \] High labour turnover: Can suggest poor morale, dissatisfaction, or better opportunities elsewhere. Low turnover: May indicate strong motivation, good working conditions, or possibly limited alternatives.
Formula:
\[ \text{Labour Turnover (\%)} = \frac{\text{Number of employees leaving}}{\text{Average number of employees}} \times 100 \] High labour turnover: Can suggest poor morale, dissatisfaction, or better opportunities elsewhere. Low turnover: May indicate strong motivation, good working conditions, or possibly limited alternatives.
Methods of Recruitment
Internal Recruitment
- Promoting or transferring existing staff
- Advantages: Cheaper, quicker, motivates staff with career paths, lowers induction time.
- Disadvantages: Limited pool, may create vacancies elsewhere, risk of inbreeding culture.
External Recruitment
- Attracting candidates from outside the organization (advertising, agencies, job fairs)
- Advantages: Brings in new ideas and skills, larger choice, can address specific shortages.
- Disadvantages: Expensive, longer induction/training, higher risk, slower process.
Key Takeaways
- Motivation theories explain why employees work and how managers can inspire their teams.
- Financial and non-financial rewards both play important roles in motivating staff (not just pay!).
- Training and appraisal are vital for continuous improvement, development, and satisfaction.
- Labour turnover is a key workforce metric; understanding its causes helps reduce costly staff loss.
- Effective recruitment is essential for getting the right people into the right roles, at the right time.