main motivational theories: Maslow, Taylor, Herzberg

2.1 Motivating Employees

Learning objective

Students should be able to describe the main motivational theories – Maslow’s Hierarchy of Needs, Taylor’s Scientific Management and Herzberg’s Two‑Factor Theory – and to explain how financial and non‑financial methods can be used to improve employee motivation, productivity and organisational performance.

Why motivation matters (link to business outcomes)

• Higher productivity → increased output and profit
• Improved quality → fewer errors and lower re‑work costs
• Reduced staff turnover → lower recruitment & training expenses
• Greater employee satisfaction → stronger morale and customer service
• Better achievement of organisational objectives → competitive advantage

Real‑world illustration: A national retailer introduced a formal recognition scheme and quarterly performance bonuses. Within 12 months staff turnover fell by 15 % and sales per employee rose by 8 %, directly contributing to the company’s profit target.

Key motivational theories

1. Maslow’s Hierarchy of Needs (1943)

Human needs are organised in a five‑level pyramid. Lower‑level needs must be at least partially satisfied before higher‑level needs become strong motivators.

1. Physiological – wages sufficient to meet basic living costs.
2. Safety – job security, safe working conditions, clear policies.
3. Social (belonging) – good relationships with colleagues, team spirit.
4. Esteem – recognition, responsibility, opportunities for advancement.
5. Self‑actualisation – personal growth, challenging work, autonomy.

Implication for managers: Satisfy physiological and safety needs first (e.g., fair pay, safe environment), then add team‑building, recognition and development programmes that address higher‑level needs.

Limitation: The order of needs may vary across cultures and individuals; some people pursue esteem or self‑actualisation even when lower needs are not fully met.

2. Taylor’s Scientific Management (1911)

Productivity can be maximised by analysing work tasks scientifically and matching workers to jobs that suit their abilities.

• Break tasks into simple, repeatable steps.
• Standardise tools, equipment and procedures.
• Select and train workers for specific tasks.
• Use piece‑rate or performance‑based pay to motivate.

Implication for managers: Apply task analysis to improve efficiency, but combine it with motivational elements (e.g., involve employees in setting standards).

Limitation: Can lead to monotony, reduced job satisfaction and neglect of social/psychological needs.

3. Herzberg’s Two‑Factor Theory (1959)

Distinguishes between factors that cause satisfaction (motivators) and those that cause dissatisfaction (hygiene factors).

Motivators (Intrinsic)	Hygiene Factors (Extrinsic)
Achievement	Company policies
Recognition	Supervision quality
The work itself	Salary & benefits
Responsibility	Job security
Advancement	Working conditions

Implication for managers: First ensure hygiene factors are adequate to prevent dissatisfaction, then introduce motivators to increase satisfaction and performance.

Limitation: In practice it can be difficult to separate motivators from hygiene factors; some employees may view salary (a hygiene factor) as a strong motivator.

Summary of the three theories

Theory	Year	Core premise	Key managerial implication
Maslow’s Hierarchy of Needs	1943	Motivation progresses through five ordered needs, from physiological to self‑actualisation.	Address lower‑level needs first; then use recognition, development and autonomy to satisfy higher levels.
Taylor’s Scientific Management	1911	Efficiency is achieved by analysing tasks scientifically and matching workers to suitable jobs.	Use task analysis and performance‑related pay, but add responsibility and involvement to avoid monotony.
Herzberg’s Two‑Factor Theory	1959	Satisfaction and dissatisfaction arise from different sets of factors (motivators vs. hygiene).	Provide adequate hygiene factors, then add motivators such as achievement, responsibility and recognition.

Motivation methods required by the syllabus

Financial (extrinsic) rewards

• Wage / salary – regular pay that meets physiological and safety needs.
• Bonus – performance‑related lump sum (e.g., quarterly sales bonus).
• Commission – pay linked to individual sales or output.
• Profit‑sharing – a share of company profits distributed to staff.

Non‑financial (intrinsic) methods

• Job enrichment – adding responsibility, autonomy and variety to a role.
• Job rotation – moving employees between different tasks to develop skills and reduce monotony.
• Team‑working – encouraging collaboration and a sense of belonging.
• Training and development – providing learning opportunities that support self‑actualisation.
• Promotion opportunities – clear career pathways that satisfy esteem and advancement needs.

Applying the theories in practice

1. Conduct a needs assessment to identify which level of Maslow’s hierarchy is most relevant for the workforce.
2. Use Taylor’s task analysis to improve efficiency, then let employees suggest improvements (adding responsibility – a Herzberg motivator).
3. Design a balanced reward system:
   • Basic salary and safe conditions (Hygiene / Physiological & Safety).
   • Team‑building activities (Social).
   • Performance bonuses and public recognition (Esteem & Motivators).
   • Training programmes, job enrichment and clear promotion routes (Self‑actualisation & Advancement).
4. Regularly review employee‑satisfaction surveys to gauge the effectiveness of motivational strategies and adjust as needed.

2.2 Organisation and Management

Organisational structure

• Organisational chart – visual representation of hierarchy, showing levels, span of control and chain of command.
• Simple (tall) hierarchy – many levels, narrow span of control; clear authority but slower decision‑making.
• Flat hierarchy – few levels, wide span of control; faster communication but greater manager workload.

Five functions of management (AO2)

Function	Key activities
Planning	Setting objectives, forecasting, deciding on actions.
Organising	Allocating resources, establishing structures, assigning tasks.
Leading	Motivating, communicating, directing staff.
Controlling	Monitoring performance, comparing with standards, taking corrective action.
Co‑ordinating	Ensuring different parts of the organisation work together effectively.

Delegation vs. control

• Delegation – manager assigns responsibility and authority to a subordinate; encourages development and motivation.
• Control – manager monitors performance and retains decision‑making power; ensures standards are met.
• Effective managers balance both: delegate where possible, retain control over critical processes.

Leadership styles (AO3)

Style	Key characteristics	Typical impact on motivation
Autocratic	Decisions made by manager alone; clear directions.	Quick decisions but may reduce employee morale.
Democratic	Manager seeks input; decisions shared.	Higher involvement and satisfaction; slower decision‑making.
Laissez‑faire	Minimal manager interference; employees work autonomously.	Encourages creativity for self‑motivated staff; risk of lack of direction.

Example: A tech start‑up uses a democratic style, holding weekly brainstorming sessions where all staff can suggest product improvements.

Trade unions (AO2)

• Organisation of workers that seeks to protect members’ interests (pay, conditions, job security).
• Can negotiate collective agreements, organise industrial action and provide legal support.
• Impact on motivation: can improve job security and wages (positive) but may also lead to conflict with management if interests diverge.

2.3 Recruitment, Selection & Training

Recruitment methods (AO2)

• Internal recruitment – promotions, transfers, internal job adverts; saves time and costs, boosts morale.
• External recruitment – advertisements, recruitment agencies, online job portals, university fairs; brings fresh ideas and new skills.

Selection process (AO2)

1. Analyse the job – produce a job description and person specification.
2. Application stage – receive CVs/resumes or application forms.
3. Short‑list candidates based on essential criteria.
4. Selection methods:
   • Interviews (structured, panel, competency‑based).
   • Tests (aptitude, psychometric, practical).
   • Assessment centres (group exercises, role‑plays).
5. Make a job offer and negotiate terms.
6. Induction – introduce the new employee to the organisation.

Training and development (AO3)

Type	Purpose	Typical example
Induction training	Introduce new staff to policies, health & safety and basic duties.	One‑day safety briefing for warehouse operatives.
On‑the‑job training	Develop specific skills while performing the role.	Apprenticeship in a bakery learning dough preparation.
Off‑the‑job training	Broader development, often classroom‑based.	Management course on leadership styles.
Continuous professional development (CPD)	Maintain up‑to‑date knowledge in a fast‑changing field.	Annual IT security certification for staff.

Linking recruitment, training and motivation

• Clear career pathways (recruitment) satisfy Maslow’s esteem and self‑actualisation needs.
• Effective induction and on‑the‑job training reduce anxiety (Safety) and increase confidence (Esteem).
• Opportunities for advancement (promotion) act as Herzberg motivators.

Summary checklist for managers (AO4)

1. Are basic pay and safety standards (hygiene factors) satisfactory?
2. Do employees feel they belong to a supportive team?
3. Is there a clear system of recognition and reward for achievement?
4. Are opportunities for personal growth, responsibility and autonomy provided?
5. Is work organised efficiently without making it overly repetitive?
6. Does the organisational structure provide clear lines of authority while allowing flexibility?
7. Are leadership style and delegation balanced to motivate staff?
8. Is recruitment aligned with future skill needs and does training support career progression?

Exam tip (AO4)

When answering a question on motivation, organisation or recruitment, use a clear structure:

1. Define the concept or theory.
2. Outline its key elements (include at least one limitation where required).
3. Explain how a business can apply the concept – give specific financial and non‑financial examples.
4. Evaluate the strengths and weaknesses in a business context (use AO3 criteria).
5. Link back to the impact on productivity, profit or employee relations where relevant.