EMPLOYEE MOTIVATION THEORIES

A manager who has an understanding of what the employee wants from work will have a better chance of having more satisfied and productive employees. Studies of employee motivation points out that people work for many different reasons. The reason or reasons a person behaves a certain way is called a motive. Employee motivation is the reason an employee works a certain way on the job. There are many explanations of what motivates employees. One theory was developed by the psychologist Abraham Maslow in 1943. Maslow’s hierarchy of needs theory explains that an individual has different levels of needs.

· Self-actualization - realizing of individual potential, creative talents, personal future fulfillment;

· Aesthetic and cognitive – new knowledge and understanding, justice and beauty;

· Self-esteem/Esteem - self-prospect, respect of others, recognition, achievement;

· Social/Love and belongingness - friendship, affection, acceptance;

· Safety - security, protection from physical harm, freedom from fear of deprivation;

· Physiological- food, water, air, rest, shelter (from cold, storm).

This theory suggests that when one level of needs is satisfied, the next level has the greatest influence on a person’s behaviour.

During the 1950s Frederik Herzberg developed another theory of job satisfaction. It suggests that job satisfaction and job dissatisfaction come from two different sets of factors. One set he referred to as ‘motivating’ factors, and the other set he called ‘hygiene’ factors. The motivating factors (recognition, achievement, responsibility, opportunity for advancement, and the job itself) relate to internal satisfaction and influence employees to improve their performance. The set of hygiene factors (salary, company policies, working conditions, and relationships with other employees) are separate from the job itself. He suggests that hygiene factors must be present in order to prevent job dissatisfaction, but it is motivating factors that influence employees to maximize their performance on the job.

These theories show that employee performance is a complex topic to understand. Developing a work environment where the employee meets the needs of the business and the business meets the needs of the employee is what the most successful managers work at.

1. Are there any other needs which you would add to the hierarchy? Where? Why?

2. Do you have any criticism of Herzberg’s/Maslow’s theory?

3. Which motivation theory – Maslow’s, Herzberg’s or any other – has the most practical value for today’s managers? Give your reasons.

TEXT 8

Read the text and discuss incentive schemes vs cash rewards. Which ones would motivate more?

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