Motivation theories (SL & HL)
“If you think you can do a thing or think you can’t do a thing, you’re probably right.”
- Henry Ford (1863 - 1947), Founder of Ford Motor Company
“We work to become, not to acquire.”
- Elbert Hubbard (1856 - 1915), American philosopher
“Motivation is the art of getting people to do what you want them to do because they want to do it.”
- Dwight D. Eisenhower (1890-1969), 34th US President
The IB syllabus specifies the following motivation theories that both SL and HL students need to understand:
Taylor (Scientific management)
Maslow (Hierarchy of needs)
Herzberg (Motivation-hygiene theory)
An important part of any manager’s role is to motivate employees in order to achieve organizational goals. Motivation exists when workers do something because they actually want to, rather than because they have to. It is the intrinsic desire to do something, so has a direct impact on how workers behave, and how efficient (productive) they are.
By contrast, demotivation is likely to cause lower productivity leading to wastage and inefficiencies. It is also likely to cause dissatisfaction in the workplace, resulting in absenteeism, and even staff leaving the organization.
Box 1 - The high costs of high absenteeism
Hiring temporary staff to cover for absent workers
Overtime costs and disruptions to staff who take on the workload of absent personnel
Lower productivity since the absent worker’s expertise is missed
Understaffing which causes detrimental effects on output, staff morale and customer service.
“We do not want any initiative. All we want of them is to obey the orders we give them, do what we say, and do it quick.”
- F.W. Taylor (1856-1917), American mechanical engineer
Often regarded as the father of motivation theory, Frederick Winslow Taylor (1856-1917) was an American engineer and management consultant who aimed to make efficiency gains and raise productivity levels.
Writing near the start of the 20th Century, Taylor argued in The Principles of Scientific Management (1911) that entrepreneurs “do not want any initiative” (from their workers) but “them to obey the orders we give”. Instead, he suggested that managers and business owners only sought obedience from their workers, i.e. he argued for a command and control approach whereby workers follow the orders given to them. He believed in measuring, monitoring and controlling efficiency and productivity levels in the workplace.
Taylor argued that the main reason why people work is money, stating “what the workmen want from employers beyond anything else is higher wages.” He believed that there should be a higher financial reward for more hard-working and productive workers. In this case, scientific management means using differentiated piece rate (sometimes referred to as differentiated compensation) to motivate workers to be more efficient and productive. Such a payment system rewards those who meet or exceed targets.
For example, a worker who makes up to 100 units of output might be paid $3 per unit but this increases to $4 per unit for each item made above 100 units. Hence, piece rate as a financial payment system rewards workers who are more productive, i.e. piece rate can be highly effective in motivating and rewarding workers.
Taylor advocated pay differentials to motivate workers
Scientific management does not only encourage people to work. Taylor introduced rest breaks in order for his workers to recover from exhaustion, which would otherwise reduce productivity.
There are several limitations of Taylor’s motivation theory (although he was writing over a century ago). These arguments include:
The scientific management approach to human resources is rather authoritarian, and perhaps less suitable in modern businesses of the 21st Century.
Subsequent theorists (such as Maslow as well as Herzberg) felt that there is far more to motivation than money. They argue that people cannot be effectively managed in a scientific way. People are not motivated in the same way, so a prescribed method (differentiated piece rates) does not suit all individuals or organizations.
Qualitative factors that affect the level of employee motivation are ignored.
Watch this 7-minute video to consolidate your understanding of Taylor’s scientific management theory of motivation:
Download this poster to add to you notes and/or use as a revision tool with students. The poster has been created by my highly talented IBEN colleague Tahmidul Haq Ansari.
Top tip!
Students are encouraged to make links between the various topics within the IB Business Management syllabus. For example, F.W. Taylor’s theory of scientific management (Unit 2.4 of the syllabus) works best under an autocratic leadership style (see Unit 2.3).
“What we in industry learned in dealing with people is that people do not work just for money and that if you are trying to motivate, money is not the most effective tool.”
- Kio Morita (1921-1999) Co-founder of Sony Corp.
Abraham Maslow’s hierarchy of needs
Abraham Maslow (1908 – 1970) was an American social psychologist. His most famous theory, the hierarchy of needs, discusses how people are motivated by different levels or categories of needs.
According to Maslow (1943), needs are people’s unfulfilled physiological and/or psychological desires. The model suggests that only when one level of needs is met is it then possible for the next level to be addressed. Maslow split these needs into two different categories:
Lower order needs (or deficiency needs): physiological, safety, and social (love and belonging) needs. These needs must be met to prevent dissatisfaction or unhappiness.
Higher order needs (or growth needs): esteem and self-actualization needs. Meeting these needs help to provide a person with a genuine sense of being complete, contented and overjoyed.
The five levels of needs in Maslow’s model are explained below. Maslow stated that a particular need that is satisfied will no longer motivate people’s behaviour or productivity. He also states that a need higher up in the hierarchy cannot be met until the preceding lower-level need is satisfied.
Physiological needs (also known as basic needs) are the requirements for human survival. These are the combination of people’s physical and biological needs. Physiological needs are so significant to people that they must be met first. Improved financial reward systems and working conditions can help people to meet these basic needs.
Safety needs (also known as security needs) are the requirements that make people feel safe, such as job security. In the every day sense, physiological needs are the essential things that all human beings must have in order to survive, such as food, clothing and shelter. These physiological needs appear at the bottom of Maslow’s hierarchy of needs. In a business context, this means the assurance (confidence) given to employees that they will keep their current job for the foreseeable future. Factors affecting job security include a worker's performance, financial success of the business, employment legislation and the current economic climate. However, firms can address safety needs, to some extent, by using contracts of employment.
Social needs (also known as love and belonging needs) refer to the requirements about being accepted by others. Hence, this refers to the social needs of people. In the workplace, social needs can be met by creating opportunities for team working and having social facilities or functions. A mentoring or coaching system can also help to improve working relationships.
Esteem needs refer to the desire of people to feel respected, having value and having self-respect. Intrinsically, self-esteem exists when people are able to feel good about themselves, as they feel valued by others. Extrinsically, esteem needs can be met by genuine recognition, acknowledgement, trust and respect from others.
Self-actualisation occurs when people become the very best that they can be, i.e. fulfilling their full potential. In Maslow’s words, self-actualisation means “What a man can be, he must be” and “to become everything that one is capable of becoming.” Being the highest level in Maslow’s hierarchy of needs, self-actualisation exists a person is able to fulfil their true potential. This can also be summed up by a quote by Steve Ackerie, an American entrepreneur, who said, "When you love what you do, you’ll never have to work a day in your life.”
Examples of Maslow's hierarchy of needs
Self-actualization | Esteem needs | Love and belonging needs | Safety needs | Physiological needs |
Accomplishment | Achievement | Acceptance | Job security | Basic necessities |
Develop fully | Reputation | Affection | Predictability | Biological needs |
Fulfil potential | Respect | Fitting in | Stability | Pay |
Personal growth | Responsibilities | Friendship | Steady job | Survival |
Status | Group identity |
However, critics of Maslow’s theory of motivation argue that people are not necessarily motivated in the same way, so the levels of needs do not apply to everyone in all contexts. For example, not everyone is motivated by job promotional opportunities even though these are associated with esteem needs. Some people prefer to work alone, rather than in team. For most people, it is probably unrealistic for them to ever reach self-actualization.
Top tip!
Notice that all the levels (of needs) in Maslow's model begin with the letter 'S' - the 5S model of Maslow's hierarchy of needs:
Source: Business Management for the IB Diploma, IBID Press, 5th edn
Watch this video to recap your understanding of Maslow’s hierarchy of needs theory of motivation:
For an alternative perspective of Maslow’s hierarchy of needs, take a look at this video of how Maslow’s theory might apply to the characters in Universal Picture’s Despicable Me, played to the soundtrack of Happy by Pharrell Williams:
"The job satisfiers deal with the factors involved in doing the job, whereas the job dissatisfiers deal with the factors which define the job context."
- F. Herzberg, 1959
Professor Frederick Herzberg (1923 -2000) was an American psychologist. In Work and Nature of Man (1966), Herzberg argued that in order to create any motivation in the workplace, it was essential to first remove the factors that cause dissatisfaction. He named these influences hygiene factors (also known as maintenance factors or job dissatisfiers). These are lower level needs of people in order to meet their physiological needs.
Importantly, improving hygiene factors simply prevents dissatisfaction but does not boost morale or motivation in the workplace. Herzberg considered wages and salaries as hygiene factors because all workers expect pay (wages and salaries) for their input in the production process. It takes more than just wages and salaries to keep workers satisfied in the workplace.
Wages and salaries are hygiene factors
Working conditions (or the working environment) refers to the physical and intangible conditions of the workplace, such as the physical work environment of factories or offices. A good working environment is important for the physical, mental and emotional health of the workforce. According to Herzberg, the working environment is a hygiene factor that must be addressed to prevent dissatisfaction at work. A pleasant and well-resourced workplace will help employees to feel more comfortable at work, thereby boosting their morale.
Motivators (also known as growth factors) are the factors that define the job context. Herzberg defined motivation as “the will to work, due to enjoyment of the work itself”. Unlike F.W. Taylor, F. Herzberg suggested that satisfaction in the workplace does not come from extrinsic factors (such as pay or salaries) because these become the norm as an expectation. Instead, these are higher level needs of people in order to meet their psychological needs.
Herzberg argued that the work itself (the nature of the job) provides workers with opportunities for psychological growth. Motivation occurs by enhancing motivators, such as recognition, responsibilities, and opportunities for personal advancement.
Watch this short video from MindTools to get an overview of Herzber'gs theory of motivation.
Herzberg’s two-factor (motivation-hygiene) theory:
Hygiene factors | Motivators |
Company policies | Achievement |
Conditions of employment | Advancement |
Job security | Challenging work |
Pay (wages and salaries) | Decision making |
Relationship with colleagues | Nature of the job |
Relationship with management | Opportunities to improve |
Status | Personal growth |
Supervision | Purpose |
Treatment at work | Recognition (of achievement) |
Working environment | Responsibility |
Watch this video clip to review your understanding of Herzberg’s two-factor (motivation-hygiene) theory:
Download this poster to add to you notes and/or use as a revision tool with students. The poster has been created by my highly talented IBEN colleague Tahmidul Haq Ansari.
Theory of Knowledge (TOK)
Given the complexities of human behaviours, can we ever truly know what motivates and demotivates different employees in different organizations?
With reference to two motivation theories, discuss the effects of the trend towards offering flexible work patterns and practices on employee motivation. [10 marks]
Students can approach this task in the following ways:
Answer the question below for homework or as an activity in class.
Mark the sample script that follows.
Reflect on best practice based on the above two tasks - what did you do relatively well compared to the sample script, and vice versa?
Sample marked script
With reference to two motivation theories, discuss the effects of the trend towards offering flexible work patterns and practices on employee motivation. [10 marks]
The integrated nature of Business Management means students should also refer to the content covered Unit 2.1 (flexible work patterns) prior to attempting this question and/marking the script below.
The introduction of flexible work patterns and practices such as flexitime, part-time working, teleworking and migration for work, has an impact on the motivation of employees in an organization. It can be argued that Maslow’s higher levels of needs could be reached by introducing such work patterns and practices. The self-actualization level of needs refers to what a person's full potential is and the realization of that potential. For instance, if one individual has a strong desire to become the ideal parent, a part time or flexitime scheme could be a strong motivator. According to the case study, “women see the number of hours of work as more important that the level of pay”.
In addition, the case study states that the majority of employees feel that job satisfaction is an important part of their lives; which aligns well with Herzberg's two-factor theory. In particular, motivational factors could be widened through work flexibility as it supports job satisfaction, empowerment and trust - especially with the firm's female workforce.
However, flexible working patterns and practices can also be perceived by some workers as a demotivator. For example, part-time working, zero contract hours, and/or short term contracts can all cause a feeling of job insecurity and such uncertainty could lead to low staff morale and demotivation. In such cases, Maslow’s safety needs will not be reached.
In addition, some flexible work patterns such as teleworking and working from home (WFH) could lead to a sense of isolation of workers or working in different shifts (as with a system of flexitime work patterns). This could prevent workers from interacting and developing stronger professional relationships. In addition, Maslow’s love and belongingness needs may not be reached as a result.
All in all, it is very difficult to predict the effects on motivation of the introduction of flexible work practices and patterns. Such measures may vary considerably depending on the organizational culture and the demographics of employees, including their age, gender, and experiences.
Click the icon below to read the examiner feedback / comments.
This script was awarded 7 out of 10 marks, as there is evidence of understanding of the demands of the question (Maslow and Herzberg are used appropriately), application of the case study materials, and an attempt at evaluation.
The introduction of flexible work patterns and practices such as flexitime, part-time working, teleworking and migration for work, has an impact on the motivation of employees in an organization. Knowledge is demonstrated with appropriate use of terminology. It can be argued that Maslow’s higher levels of needs could be reached by introducing such work patterns and practices. The self-actualization level of needs refers to what a person's full potential is and the realization of that potential. For instance, if one individual has a strong desire to become the ideal parent, a part time or flexitime scheme could be a strong motivator. According to the case study, “women see the number of hours of work as more important that the level of pay”. Effective application of the stimulus in the case study and use of theory (Maslow).
In addition, the case study states that the majority of employees feel that job satisfaction is an important part of their lives; which aligns well with Herzberg's two-factor theory. In particular, motivational factors could be widened through work flexibility as it supports job satisfaction, empowerment and trust - especially with the firm's female workforce. Appropriate use of terminology and theory, such as reference to job satisfaction and empowerment.
However, flexible working patterns and practices can also be perceived by some workers as a demotivator. For example, part-time working, zero contract hours, and/or short term contracts can all cause a feeling of job insecurity and such uncertainty could lead to low staff morale and demotivation. In such cases, Maslow’s safety needs will not be reached. Balanced, two-sided argument provided.
In addition, some flexible work patterns such as teleworking and working from home (WFH) could lead to a sense of isolation of workers or working in different shifts (as with a system of flexitime work patterns). This could prevent workers from interacting and developing stronger professional relationships. In addition, Maslow’s love and belongingness needs may not be reached as a result. Justified reasoning provided, in the context of the case study.
All in all, it is very difficult to predict the effects on motivation of the introduction of flexible work practices and patterns. Such measures may vary considerably depending on the organizational culture and the demographics of employees, including their age, gender, and experiences. Conclusion attempted, although new and unexplained content should be avoided.
Exam Practice Question - Forest Hill Potters (FHP)
Forest Hill Potters (FHP) is a private limited company that produces pottery products. Workers at FHP are paid an hourly wage rate. The work is generally repetitive, and workers are lack the opportunity to work in teams as they are instructed to concentrate on meeting their daily production targets.
The nature of the business means that local workers are hired, but the relatively high labour turnover rate at FHP means that the managers have to spends a significant amount of time throughout the year on recruiting and training new workers. There have been suggestions made by some workers that paying piece rate and job enrichment opportunities would help to improve the level of staff motivation and productivity at FHP.
(a) | Define the term wage rate. | [2 marks] |
(b) | Define the term motivation. | [2 marks] |
(c) | Outline two potential problems of low staff motivation for FHP. | [4 marks] |
(d) | Using relevant motivation theory, explain how FHP might be able to better motivate its workers. | [4 marks] |
Answers
(a) Define the term wage rate. [2 marks]
The wage rate is a form of financial payment system, rewarding employees by time rather than volume or quality of output. Workers are paid the flat rate wage rate per hour they work.
Award [1 mark] for a definition that shows limited understanding of the term wage rate (or wages).
Award [2 marks] for a definition that shows a good understanding of the term wage rate (or wages), similar to the example above.
(b) Define the term motivation. [2 marks]
Motivation refers to the desire and willingness to complete a task or to achieve a goal. It can be extrinsic or intrinsic (such as morality or altruism - the desire to help others).
Award [1 mark] for a definition that shows limited understanding of the term motivation.
Award [2 marks] for a definition that shows a good understanding of the term motivation, similar to the example above.
(c) Outline two potential problems of low staff motivation for FHP. [4 marks]
Possible responses could include:
Workers at FHP will not enjoy their work (as they lack the opportunity to work in teams, for example), so this effectively leads to low morale (social needs are not met) and lower productivity. There is a lack of incentive to work hard, especially as workers are paid a fixed hourly rate.
Higher labour turnover is likely to result from low motivation, leading to higher costs for FHP, such as the need for managers to recruit and train new workers.
High labour turnover due to a lack of staff motivation can give FHP a poor corporate image, meaning it can be more challenging and expensive for the company to attract and hire suitable local staff in the future.
Accept any other reasonable outline, written in the context of FHP.
Mark as a 2 + 2
Award [1 - 2 marks] for a written response that is limited in meeting the demands of the question. Award up to [2 marks] if only one reason is provided.
Award [3 - 4 marks] for a written response that is accurate in meeting the demands of the question.
Alternative approaches may be taken in response to the [4-mark] question that uses an AO2 command term. If an alternative approach is valid, then full credit should be given.
(d) Using relevant motivation theory, explain how FHP might be able to better motivate its workers. [4 marks]
Possible responses could include an explanation of:
As suggested by F.W. Taylor, linking the pay of workers to their level of output through a piece rate payment system creates an incentive for workers to be more productive. This is based on Taylor's assumption that (all) workers are motivated by receiving more money for their work.
Herzberg argued that wages and salaries do not, on their own, motivate workers – it simply removes potential dissatisfaction at work (as workers expect to be paid for any work they commit to). Instead, he argued that that job enrichment opportunities are a good way of motivating workers, such as by giving them more challenging and responsible tasks in order to increase their morale and job satisfaction, rather than their existing work that is simply repetitive and therefore not so engaging.
- Accept any other reasonable explanation, written in the context of FHP.
Mark as a 2 + 2
Award [1 - 2 marks] for a written response that is limited in meeting the demands of the question.
Award [3 - 4 marks] for a written response that is accurate in meeting the demands of the question. Students can, although are not expected or required to, use more than one motivation theory to answer the question.
Alternative approaches may be taken in response to the [4 mark] question that uses an AO2 command term. If an alternative approach is valid, then full credit should be given.
To test your understanding of this topic (Motivation theories), have a go at this review quiz.
Which of the following statements does not apply to motivation?
Motivation is about the genuine desire or aspiration to complete a task or project, rather than doing this for a financial return.
Being able to make a difference to others in society is an example of which of the following options?
Being able to make a difference to others is not directly linked to financial rewards, so it is intrinsic motivation rather than extrinsic motivation.
Which of the following indicates a high degree of staff motivation?
A high degree of staff motivation results in improved productivity, thus resulting in higher sales revenue.
Which of the following does not occur in a workplace with low staff motivation?
In the long term, demotivation results in higher staff turnover, thereby raising (rather than lowering) recruitment costs.
Which motivation theorist said that employees are principally motivated by money?
F.W. Taylor’s scientific management theory suggests that workers are motivated by money. In particular, low skilled workers can be motivated by using differentiated piece rate to reward those who work harder.
Which motivation theorist believed that workers could be managed in a scientific way by using differentiated piece rate?
F.W. Taylor’s scientific management theory suggests that workers are motivated by money, and in particular by using differentiated piece rate to reward those who work harder.
Which motivation theorist wrote about the need to address hygiene factors so as to prevent dissatisfaction in the workplace?
Herzberg referred to factors that cause dissatisfaction, if not addressed in the workplace, as "hygiene factors".
What did A. Maslow call the needs that are essential for human survival?
Physiological needs are the basic human needs that are necessary for survival, e.g. warmth, shelter, water, sleep, food and clean air.
F.W. Taylor’s theory of motivation would be most suitable for which of the following?
F.W. Taylor’s theory of motivation (scientific management) suggests that people are motivated by money above any other reason. Staff in a fast food restaurant tend to be relatively low skilled workers and are likely to be paid by hourly wage rates, which is in line with Taylor’s theory.
Which motivational theorist suggested that managers should plan, direct and control their workers?
F.W. Taylor believed in autocratic leadership, so functions of management include planning, directing and controlling.
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