2.4.2 Methods of Motivation
Learning objective
Recommend and justify an appropriate method of motivation for a given situation.
Why a well‑motivated workforce matters
- Increases productivity and sales – motivated staff work harder and more efficiently.
- Reduces absenteeism and staff turnover – satisfied employees are less likely to miss work or quit.
- Improves quality of output and customer service – motivated people take pride in their work.
- Supports the four business objectives (profit, growth, market share, survival) and benefits all stakeholders (owners, shareholders, customers, employees).
Theoretical background
Maslow’s hierarchy of needs
Employees are motivated when lower‑level needs (physiological, safety) are satisfied and higher‑level needs (esteem, self‑actualisation) are addressed.
Frederick Taylor’s scientific‑management theory
- Focuses on the “hard” side of motivation – linking pay directly to output.
- Key method: piece‑rate pay (payment for each unit produced) and strict task specialisation.
- Strength: clear cause‑and‑effect between effort and reward.
- Limitation: can lead to monotony, reduced job satisfaction and is difficult for knowledge‑based or creative work.
Herzberg’s two‑factor theory
- Hygiene factors (pay, conditions, policies) – prevent dissatisfaction but do not create lasting motivation.
- Motivators (recognition, responsibility, achievement, personal growth) – generate genuine satisfaction and higher performance.
Methods of motivation
1. Monetary (extrinsic) rewards
- Wages and salaries – meet physiological and safety needs.
- Performance bonuses – extra pay for meeting measurable targets.
- Commission – earnings vary with individual sales.
- Profit‑sharing schemes – share of company profit aligns personal interest with business performance.
- Piece‑rate pay (Taylor) – payment per unit produced; useful where output is easily measured.
2. Non‑monetary (intrinsic) rewards
- Recognition and praise – satisfies esteem needs.
- Opportunities for personal development – training, mentoring, career pathways (self‑actualisation).
- Job enrichment – adds responsibility, autonomy and variety.
- Job enlargement – broadens the range of tasks to reduce monotony.
- Job rotation – moves employees between different jobs to develop skills and reduce boredom.
- Team‑working – encourages collaboration, shared responsibility and a sense of belonging.
3. Work‑related factors (hygiene) that also motivate
- Safe and pleasant working conditions – prevent dissatisfaction (Herzberg’s hygiene factor).
- Clear job description and expectations – reduce ambiguity and help employees focus on goals.
- Effective communication and regular feedback – provide performance information and show managerial support.
Advantages and disadvantages of the main methods
| Method |
Advantages |
Disadvantages |
| Monetary rewards (e.g., bonuses, commission, piece‑rate) |
- Clear link to performance
- Easy to measure and administer
- Attracts skilled staff
|
- May encourage short‑term focus
- Can foster rivalry and reduce teamwork
- High cost for small businesses
|
| Recognition & praise |
- Low financial cost
- Boosts morale and intrinsic motivation
- Creates a positive organisational culture
|
- Subjective – may be seen as unfair
- Effectiveness depends on manager’s skill
|
| Job enrichment |
- Increases autonomy and sense of achievement
- Develops skills and career progression
- Reduces turnover
|
- Requires careful job design
- May increase workload stress if not managed
|
| Work‑related (hygiene) factors |
- Prevent dissatisfaction (Herzberg)
- Support health, safety and legal compliance
- Provide a foundation for other motivational methods
|
- Impact on motivation is indirect
- May require investment in facilities or processes
|
Choosing the most suitable method – step‑by‑step
- Identify the specific problem or business objective (e.g., low sales, high absenteeism, poor quality).
- Analyse the workforce characteristics – age, skill level, values, current pay structure, motivational needs.
- Consider organisational constraints – budget, size, culture, legal requirements.
- Match the problem with the method that most directly influences the required behaviour.
- Justify the choice using the “Justification checklist”.
Justification checklist (exam‑friendly and syllabus‑aligned)
- Cost and feasibility for the business.
- Alignment with the identified business objective.
- Direct impact on the target behaviour (e.g., sales effort, attendance, quality).
- Suitability for the workforce’s needs and values (Maslow/Herzberg).
- Potential side‑effects on teamwork, morale, turnover or health & safety.
- Ease of monitoring and measuring results.
Case study – Retail clothing store
Situation: A mid‑size clothing retailer has recorded a 15 % decline in sales over the last quarter. Staff feel “unappreciated” and turnover has risen by 8 %.
Analysis
- Sales are directly linked to employee effort on the shop floor – a clear behavioural target.
- The store has a tight cash budget; large cash bonuses are not viable.
- Workforce is mainly young, part‑time staff who value personal development and recognition.
- Current work‑related factors (unclear job roles, limited feedback) contribute to dissatisfaction.
Recommended motivation methods
- Job enrichment – give staff greater control over visual merchandising, stock ordering and personal sales targets.
- Recognition programme – “Employee of the Week”, public praise on the shop’s social media, and low‑cost vouchers (£5) for meeting targets.
Justification (using the checklist)
- Cost & feasibility: Enrichment requires task redesign – minimal financial outlay. Vouchers are low‑cost and fit the budget.
- Alignment with objective: Enriched tasks are directly tied to sales performance; recognition reinforces the desired behaviour.
- Impact on target behaviour: Autonomy and ownership increase effort on the shop floor; public praise sustains motivation throughout the day.
- Workforce suitability: Young staff value achievement, responsibility and acknowledgement.
- Side‑effects: Enhances teamwork because staff share merchandising ideas; reduces turnover by improving job satisfaction.
- Monitoring: Sales per employee and weekly recognition records provide clear metrics.
Key take‑aways
- Motivation methods can be monetary (extrinsic) or non‑monetary (intrinsic); both can be linked to specific business objectives.
- Use Maslow and Herzberg to identify which needs are currently unmet.
- When selecting a method, consider cost, feasibility, impact on the desired behaviour, workforce characteristics and any possible unintended consequences.
- Combining two or more methods (e.g., job enrichment + recognition) often yields stronger, more sustainable results.
Suggested diagram: A flowchart showing the decision‑making process – Problem identification → Workforce & constraints analysis → Match method to behaviour → Justify using the checklist → Implementation & monitoring.