2.1 Motivating workers IGCSE Business Studies

Summary

This video from the Cents Business YouTube channel delves into employee motivation, exploring why people work and the significance of a motivated workforce. It discusses human needs, key motivational theories such as Taylor's Scientific Management, Maslow's Hierarchy of Needs, and Herzberg's Two-Factor Theory, and outlines financial and non-financial motivators. The video emphasizes the impact of motivation on productivity and provides practical advice for enhancing employee engagement, concluding with an interactive task to apply these concepts.

Takeaways

• 😀 Motivation is crucial for getting employees to work at their full capacity and take pride in their work.
• 💼 People work primarily to earn money to fulfill their basic needs and desires, such as buying a car, house, or clothes.
• 💡 Motivation involves getting someone to do what you want them to do willingly and with pride.
• 💰 Money is often a key motivator, but other factors like social needs, job security, and recognition can also be significant.
• 📈 A well-motivated workforce leads to increased productivity, efficiency, and ultimately higher profits for the company.
• 🛠️ The piece rate system, introduced by Taylor, suggests that workers are motivated by personal gains, primarily money, but this theory has limitations in modern workplaces.
• 🌟 Maslow's hierarchy of needs suggests that employees are motivated by fulfilling each level of needs, from basic physiological needs to self-actualization.
• 🔄 Herzberg's two-factor theory distinguishes between hygiene factors, which can demotivate if unsatisfied, and motivators, which truly inspire workers to perform better.
• 💵 Financial motivators include wages, commissions, bonuses, profit sharing, and stock options, which can significantly impact employee motivation.
• 🏆 Non-financial motivators like job satisfaction, opportunities for promotion, team involvement, and recognition can also be powerful in driving employee engagement.
• 📝 The video script concludes with an activity encouraging viewers to apply motivational theories to recommend methods for motivating their class.

Q & A

What is the primary reason people work according to the video?

People work primarily to earn money and fulfill their basic necessities, such as buying a car, house, clothes, or going on holidays.

What does the term 'motivation' mean in the context of the video?

Motivation in this context refers to the process of getting someone to do what you want them to do willingly and with pride, working to their full capacity and getting the best out of them.

What are the benefits of having a well-motivated workforce as discussed in the video?

A well-motivated workforce leads to increased productivity and efficiency, higher profits, job satisfaction, stability, and reduced absenteeism and turnover.

What is the significance of Maslow's hierarchy of needs in employee motivation?

Maslow's hierarchy of needs is significant as it shows that employees are motivated by fulfilling each level of needs, starting from basic physiological needs to self-actualization, allowing managers to identify and address their workers' needs accordingly.

How does the piece rate system, introduced by Taylor, motivate workers?

The piece rate system motivates workers by paying them based on the quantity of output they produce, thus encouraging them to produce more to earn more money.

What are the limitations of Taylor's piece rate system as a motivational tool?

The limitations include the fact that it may not be practical in jobs where output cannot be measured, like service industries, and it does not guarantee high-quality output.

What is Herzberg's two-factor theory and how does it relate to motivation?

Herzberg's two-factor theory distinguishes between hygiene factors, which can lead to dissatisfaction if not met, and motivators, which can truly motivate workers to perform better. It suggests focusing on motivators for maximum employee motivation.

What are some financial motivators discussed in the video?

Financial motivators include wages, piece rates, commissions, bonuses, profit sharing, and shared ownership, which can incentivize employees through direct financial benefits.

Can you provide examples of non-financial motivators mentioned in the video?

Non-financial motivators include job satisfaction, promotion opportunities, team involvement, recognition, job rotation, job enlargement, job enrichment, and team working.

How can companies ensure job satisfaction for their workers beyond the motivators mentioned?

Companies can ensure job satisfaction by understanding individual employee needs, providing a supportive work environment, offering opportunities for growth and development, and fostering a sense of belonging and recognition.

What activity does the video suggest for viewers to enhance their understanding of motivation theories?

The video suggests that viewers should answer three questions: recommending an appropriate method of motivation for their class, explaining what motivates them, and relating their suggestions to the motivation theories discussed in the video.

Outlines

00:00

💼 Introduction to Motivating Employees

The video script introduces the topic of employee motivation, emphasizing its importance in business. It outlines the reasons why people work, primarily for financial gain to fulfill basic needs and desires. The concept of motivation is explored as the driving force behind getting employees to work to their full potential with pride. The script also hints at various motivational theories and the distinction between financial and non-financial motivators. The importance of a motivated workforce is highlighted in terms of productivity, job satisfaction, and the business's bottom line.

05:00

📈 Theories of Motivation

This section delves into three key motivational theories: Taylor's Scientific Management, Maslow's Hierarchy of Needs, and Herzberg's Two-Factor Theory. Taylor's theory suggests that financial incentives, particularly the piece-rate system, can boost productivity. Maslow's hierarchy proposes that employees are motivated to fulfill a series of needs, from basic physiological requirements to self-actualization. Herzberg's theory differentiates between hygiene factors, which can lead to dissatisfaction if unmet, and motivators, which can significantly enhance motivation. The limitations of each theory are also briefly discussed.

10:01

💰 Financial Motivators in the Workplace

The script discusses various financial motivators that can influence employee performance. These include time-based wages, piece-rate pay, commissions, bonuses, profit sharing, and shared ownership schemes. Each method has its advantages and potential drawbacks, such as the piece-rate system possibly neglecting quality for quantity. The section also touches on how financial incentives can align employee goals with company objectives, thereby boosting overall performance and profitability.

15:02

🌟 Non-Financial Motivators and Employee Satisfaction

The final paragraph shifts focus to non-financial motivators, exploring how job satisfaction can be enhanced through opportunities for promotion, team involvement, and recognition. It mentions job rotation, enlargement, and enrichment as ways to keep employees engaged and motivated. The script concludes with a call to action for viewers to consider and discuss appropriate motivational methods for their own contexts, relating these to the theories previously discussed.

Keywords

💡Motivation

Motivation refers to the internal and external factors that drive individuals to take certain actions or engage in specific behaviors. In the context of the video, motivation is crucial for getting employees to perform at their best and take pride in their work. The video discusses various motivational theories and practices, emphasizing the importance of understanding what motivates employees to work hard and effectively for a business.

💡Workforce

The workforce encompasses all the employees or workers in an organization. The video highlights the significance of having a well-motivated workforce, as it directly impacts productivity, efficiency, and the overall success of a business. A motivated workforce is more likely to be productive and contribute positively to the company's output and profit.

💡Human Needs

Human needs are the basic requirements that individuals seek to fulfill, which can influence their behavior and motivation. The video touches on the concept of human needs in relation to Maslow's hierarchy of needs, suggesting that understanding and addressing these needs can help motivate employees. For instance, meeting basic needs like job security can lead to higher motivation and job satisfaction.

💡Maslow's Hierarchy of Needs

Maslow's Hierarchy of Needs is a motivational theory that suggests human needs are arranged in a hierarchy, from basic physiological needs to self-actualization. The video uses this theory to explain how meeting different levels of needs can motivate employees. For example, once basic needs are met, employees may be motivated by the need for social belonging, esteem, or self-actualization.

💡Hygiene Factors

Hygiene factors, as introduced by Herzberg in his two-factor theory, are those aspects of work that, if not satisfied, can lead to dissatisfaction but do not necessarily motivate if present. The video explains that these factors, such as working conditions or salary, need to be met to prevent demotivation but are not enough on their own to drive high performance.

💡Motivators

Motivators, according to Herzberg's theory, are factors that can lead to higher performance and job satisfaction when present. These include recognition, achievement, and the work itself. The video emphasizes the importance of focusing on motivators to truly inspire employees and enhance their motivation to work effectively.

💡Financial Motivators

Financial motivators are incentives that are directly tied to an employee's compensation, such as wages, bonuses, commissions, and profit sharing. The video discusses various financial motivators and how they can be used to encourage employees to work harder and contribute more to the company's success.

💡Non-Financial Motivators

Non-financial motivators are incentives that do not involve direct monetary rewards but can still enhance employee motivation. These can include job satisfaction, recognition, opportunities for advancement, and a positive work environment. The video highlights the importance of non-financial motivators in creating a motivated and satisfied workforce.

💡Job Satisfaction

Job satisfaction refers to the contentment and fulfillment an employee experiences in their job. The video mentions job satisfaction as a key non-financial motivator, suggesting that satisfied employees are more likely to be motivated and productive. Factors contributing to job satisfaction include opportunities for growth, recognition, and a positive work culture.

💡Employee Turnover

Employee turnover refers to the rate at which employees leave a company. The video discusses how a well-motivated workforce can lead to reduced turnover, as employees are more likely to stay with a company where they feel valued, motivated, and satisfied with their work.

Highlights

Importance of a well-motivated workforce is discussed, emphasizing its impact on productivity and business success.

People work primarily to earn money and fulfill basic necessities, such as buying a car, house, or clothes.

Motivation is defined as the drive to get someone to do what you want them to do willingly and with pride.

Benefits of a well-motivated workforce include increased productivity, efficiency, and profit.

Motivation theories such as Maslow's hierarchy of needs and Herzberg's two-factor theory are introduced.

Financial motivators like pay, bonuses, and profit sharing are discussed as ways to increase employee motivation.

Non-financial motivators such as job satisfaction, recognition, and opportunities for growth are highlighted.

The piece rate system, where workers are paid based on output, is critiqued for not always guaranteeing quality.

Maslow's hierarchy of needs is used to explain how meeting basic needs can lead to higher levels of motivation.

Herzberg's two-factor theory differentiates between hygiene factors that can demotivate if unsatisfied and motivators that drive performance.

The concept of job security as a motivator is explored, with examples of how it can lead to increased employee retention.

The role of social needs in motivation is discussed, noting that some employees are motivated by social recognition and support.

The limitations of motivation theories are addressed, acknowledging that not all theories apply to every worker.

The importance of aligning motivation strategies with individual employee needs is emphasized.

An activity is proposed to help viewers apply motivational theories to their own contexts.

The video concludes with a call to action for viewers to comment on their thoughts and applications of the discussed motivational concepts.

Transcripts

hello and welcome to cents business

YouTube channel and today's lesson will

cover motivating employees that's two

point one I do CC business topic we'll

talk about the importance of well

motivated workforce why people work and

what motivation means we will talk about

the benefits of well motivated work

force we'll talk about the concept of

human needs we'll talk about key

motivational theories and we will also

talk about ways of motivating that

financial and non-financial we will also

I've also prepared present a have also

prepared a task for you to do an

activity for you to accomplish which

will help you do better and exams why

people work so why do people work people

weren't to earn money and to fulfill

their basic necessities and want to buy

that car house clothes or holiday they

want so this is why people work and to

earn money so they can do what they want

to do so that is one of the reason why

people work so now what motivate what is

motivation motivation is getting someone

to do so getting someone to do what you

want them to do that is something they

want to do and take pride in

so getting someone to work there based

capacity and getting the best out of

them is motivation motivation is the

reason why employees want to work hard

and work effectively for the business in

its keep in mind that money is always

the main motivator all the factors that

may motivate a person to choose to do a

particular job may

include social needs esteem needs to

feel important worthwhile job

certification to enjoy work good work

job security knowing that your job is

safe and secure and that you'll get the

pay for the job that you have done so

what are the benefits of well motivated

workforce when workers are well

motivated they become highly productive

so they become highly productive and

effective in their work and increase the

firm's efficiency and output leading to

a higher profit when workers are

motivated they work - they obey

stability and enjoy their work

environment they get the job done so

that is the important part

for example in service sector if an

employee by the way this is an example

this is an example of unmotivated or

demotivated employee in the service

sector if the employees unhappy at work

he might act lazy and rude to the

customer leading to low customer

satisfaction more complaints in

ultimately bad reputation and low profit

so it is very important that we have

motivated staff so benefits of well

motivated workforce is that when staff

are motivated in our organization there

is high possibility of reduced

absenteeism so people enjoy coming to

work and they do not try to avoid it

lost after another so people don't come

in and go they actually stay with the

company and they they feel motivated

because at the end of the day nobody

wants to work where they are bored and

there's no pride in the job they do and

the money is not so great so the

turnover is extremely high in these

companies

so beta labor tava so motivational

theories and their theories we'll talk

about three of them in this lesson so

it's one tailor to mass law and three

harrisburg these are the three

well-known motivation theorists so first

of all we will talk about tailor sailor

based his idea on assumption that

workers were motivated by personal gains

mainly money so increasing pay would

increase productivity the amount of

output produced he proposed that the

piece rate system you need to keep that

in mind that tailor introduced the piece

rate system where workers get paid for

the number of output they produce so in

order to gain more money

workers would produce more well there's

one issue with this that we need to keep

in mind this theory is not entirely true

there are various other motivators in

the modern workplace

some even more important than money the

piece rate system is not very practical

in situation where output cannot be

measured for example in service

industries and where high output that

doesn't guarantee high quality so our

second theorist is Maslow I brought ever

ahim Maslow he introduced the hierarchy

of needs so he introduced this hierarchy

which is called the hierarchy of needs

which shows that employees are motivated

by each level of the hierarchy going

from bottom so from here to the top

managers can identify their workers are

where their workers are and then take

the necessary action to advance them

on to the next level so what Maslow

suggests that

as if we meet if as the employees here

and we tell them that if they work

harder they will get to this stage which

is job security so for example you have

agency worker so I will give you an

example of my current job so when we

have agents you work as they let you

lick a wage high enough to meet their

bills and they will have sometimes work

sometimes no word but what we tell the

agency worker is that if they work hard

and if they keep coming for the period

that we ask them to then we will give

them a job so it brings them to here

will give them a three month temporary

contract and during that three months of

contract day if they work the colleagues

support them they find friends there

they feel belonging to the team and they

become in this category and they slowly

become motivated and then after there

are three months period they go into

self esteem needs being recognized after

the three months they've giving them

another recognition and motivating them

by giving them a full contract because

they have done a good job in the last

three month probationary period and then

after that being promoted into a

supervisor or into specialized role

which is self actualization so do you

see it starts from the bottom going all

the way oh and you continue to motivate

the staff and you could use this

hierarchy to continue with different

purposes and continue to improve

employees motivation there's one

limitation to his mass loss theory which

is that destory is that it doesn't apply

to every worker for example some

employees social needs are very

important but they would be motivated

by recognition in appreciation for their

work from a senior staff so if I go back

to this theory so some people will not

be satisfied by job security but they

will be satisfied for getting support

from workers and the colleagues and or a

senior support member so there's some

issues with that there our final

theorist is her Berg Harrisburg he

introduced a two-factor two-factor

theory that states people said that

states that people have two sets of

needs one basic needs called hygiene

factor and other needs that allow the

human being to grow psychologically

called the motivator so he introduced a

two-factor theory called hygiene factor

and motivating factors so this is the

his motivating factors and this is his

hygiene factor according to Herzberg the

hygiene factor needs to be satisfied if

not they will act as d-- motivators to

the worker so what he says as these

hygiene factors need to be satisfied or

if not then the worker automatically

becomes demotivated

however the hygiene again this factors

don't act as motivator so they don't act

as motivators as they are affect quickly

fade wears away so its effect quickly

wears off so these will not really act

as motivators motivators will truly

motivate workers to work more

effectively so what he suggests is that

these motivators will truly motivate

workers not the hygiene factors so we

need to focus on that if you want to

motivate our staff to the

maximum level so now we talk about the

motivating factors so there's a number

of financial and non-financial

motivational factors so we'll talk about

the non-financial in a later slide

so wages are a motivation of motivating

financial motivators it can be into two

different it can be calculated in two

ways so we can pay our workers and

timely or peace rate the time rate is

based on the number of hours a person

worked so there's no guarantee that a

work was sincerely so the work will so

the worker was in will work sincerely to

produce more output they my simple waste

time on very few output since their pay

is based on how how long they work the

product the predict fruit dog did an

unproductive worker will get paid the

same amount of money which can be

motivate some employees peace rate on

other hand is based on the number of

outputs produced this doesn't ensure the

quality of output produced is high so in

my demotivate efficient worker so

workers that work really hard and

produced high quality products might be

too motivated by workers that don't

really care about the quality you just

produced too many rubbish products so

celery is a novel motivating factor in

its paid monthly or annually Commission

is another motivational financial

motivator it's paid to salespeople and

it's based on percentage the

disadvantage to this is that if there's

no sell being made it means no money at

all they will not get any money for that

period of time they have worked because

they have not made any sales and it can

be very stressful so again this is some

more motivational motivating factors

financially so bonus bonus is an

additional amount of money paid to the

workers what they are good for high

productivity performance related base of

paid based on performance or looking at

the KPIs to measure performance and pay

is giving based on this so profit

sharing some companies do a scheme where

a proportion of the company's profit is

distributed to workers and workers will

be motivated to work better so that

higher profit is made so they can have a

share of it and shared ownership so some

companies or firms will give shares to

their employees so that they can become

part owners of the company

this will increase employees loyalty to

the company as they feel a sense of

belonging knowing that they own part of

the company tend to put more effort into

work resulting in motivating staff and

increase profit so if you know that you

own part of the company and you know

that the more the company makes the more

your money you will get and the more

shares you will get you are very likely

to invest more time and work a little

bit hard so now we talk about their

known financial motivators so that can

be company car free health care

children's education paid for free

accommodation free holidays trips

discount on firms products so these are

some non-financial motivators which will

help motivate employees question time

can how can companies ensure workers are

satisfied with their job other than the

motivators mentioned earlier I'll give

you five seconds you can pause this

video if you like and

rather write your answer in the comment

below so I can see it and mark it for

you I'll give you five seconds okay

times up gentle ladies and gentlemen so

let's see what other more let's see what

all the motivators are they're so

motivating factors so these are again

non-financial motivating motivating

factors so job satisfaction could be

promoting opportunities team involvement

relationship with suppliers level of

responsibility chances for training the

working hours status of the job

responsibilities recognition in such

dication

can also be motivated some people so job

rotation so some involve the workers

swapping around jobs and doing each

other doing in doing each specific task

for only a limited time and then

changing around so some people will get

motivated if they into a job swap for

alloc for a limited time job enlargement

is where extra tasks of similar level

level of work are added to the workers

job description so some people like to

multitask and have more on their disk

and they feel more motivated so that can

be a motivator for some people job in

Richmond involves adding tasks that

require more skills and responsibility

to do a job so they're learning new

skills and mores on gaining new getting

new responsibilities one motivate some

people team working a group of workers

giving responsibility for a particular

process product or development this can

motivate some people because not

everybody likes to work alone and some

people feel motivated working in that

team so some workers will find these

factors motivating and finally it is

time for another activity what I want

you to do is answer these three

questions for me and comment them in the

section below so I can mark it for you

so can you recommend and justify

appropriate method of motivation for

your class what motivation what

motivates them and why can you relate

your suggestion to motivation theories

we talked about so this is what I want

you to do before next watching the next

video

thank you thank you very much for

joining my lesson and take care for now