Section 2.1 📝 Revision Notes

Motivating
Employees

Motivation theories (Maslow, Taylor, Herzberg), financial and non-financial methods of motivation, and how to choose the right approach for any business context.

4 Key Topics

11 Self-Test Qs

200xp Max XP

⭐⭐⭐ Exam Frequency

📖 Reading Progress

📖 Click any section to open it and start revising.

Benefit	Explanation
Higher labour productivity	Motivated workers produce more output per hour — reducing unit costs and increasing profit
Reduced absenteeism	Motivated employees are less likely to take unnecessary sick days, reducing disruption and costs
Lower labour turnover	Workers who feel valued are less likely to leave — saving recruitment and training costs
Better quality output	Motivated workers take more care and pride in their work, reducing errors and waste
Improved customer service	Enthusiastic, engaged staff deliver a better customer experience, boosting sales and reputation
Less supervision needed	Self-motivated employees require less management oversight, freeing managers for other tasks

Abraham Maslow (1943) argued that people are motivated by a hierarchy of five needs. Lower-level needs must be satisfied before higher-level needs become motivating.

👆 Click any level to explore it

5Self-Actualisation▼

Need: Reaching full potential, creative and meaningful work
Workplace example: Leadership roles, creative freedom, challenging projects
How to meet it: Promotion, autonomy, creative responsibilities
Herzberg link: Motivators — achievement, personal growth

4Esteem Needs▼

Need: Recognition, status, being valued and respected
Workplace example: Awards, praise, job titles, added responsibility
How to meet it: Recognition schemes, promotions, praise from managers
Herzberg link: Motivators — recognition, responsibility

3Social Needs▼

Need: Friendship, belonging, teamwork
Workplace example: Team projects, social events, open office layouts
How to meet it: Teamworking, collaborative tasks, social activities
Herzberg link: Hygiene factor — relationships with colleagues

2Safety Needs▼

Need: Job security, safe working conditions, fair treatment
Workplace example: Employment contracts, pensions, health & safety rules
How to meet it: Secure contracts, safe environment, consistent management
Herzberg link: Hygiene factors — job security, working conditions

1Physiological Needs▼

Need: Basic survival — food, water, shelter, warmth
Workplace example: A wage or salary sufficient to cover living costs
How to meet it: Fair minimum wage, regular pay
Taylor link: Piece-rate — focuses almost entirely on this level

✅ Strengths of Maslow

Easy to understand and apply in the workplace
Recognises that money alone is not enough to motivate
Helps managers identify what workers need at different stages

❌ Weaknesses of Maslow

Not everyone follows the same order of needs
Difficult to measure which level an employee is at
People may be motivated by several levels at once

💡 Frederick Herzberg — Two-Factor Theory (1959)

Core idea: There are two distinct sets of factors affecting motivation. Removing dissatisfaction is NOT the same as creating motivation — both must be addressed.

⚠️ Hygiene Factors

Cause dissatisfaction if absent — but do NOT motivate

Salary / pay (basic wage)
Working conditions (safe, comfortable environment)
Company policy and rules
Quality of supervision
Job security
Relationships with colleagues

⭐ Motivators

Actively motivate workers — lead to job satisfaction

Achievement — completing a challenging task
Recognition — being praised for good work
The work itself — finding the job interesting
Responsibility — being trusted with more
Advancement / promotion opportunities
Personal growth and development

✅ Strengths of Herzberg

Highlights that pay alone is not enough — useful for managers
Encourages job enrichment and meaningful work
Widely applied in modern HR management

❌ Weaknesses of Herzberg

Based on research with accountants — may not apply to all workers
Some workers ARE primarily motivated by pay (e.g. Taylor’s view)
Difficult and costly to implement job enrichment for every role

📌

Comparing the Three Theories:

Taylor: money is the ONLY motivator — pay more, get more output.
Maslow: hierarchy of needs — only unsatisfied needs motivate. Once met, that need stops motivating.
Herzberg: hygiene factors prevent dissatisfaction but do NOT motivate. Only motivators (achievement, recognition, responsibility) truly motivate.
Link: Taylor = Maslow Levels 1–2. Herzberg’s hygiene factors ≈ Maslow Levels 1–3. Herzberg’s motivators ≈ Maslow Levels 4–5.

🃏 Theory Flashcards — click to flip

Test yourself — what do you remember about each theory?

🔬

Taylor

Scientific Management (1911)

Frederick Taylor

Workers motivated by money only
Pay piece-rate — more output = more pay
Break jobs into simple, repetitive tasks
Managers plan; workers execute
Find the “one best way” for every task

⚠️ Ignores social & esteem needs

🏔️

Maslow

Hierarchy of Needs (1943)

Abraham Maslow

5-level hierarchy of needs
Lower needs met before higher ones motivate
Once a need is met, it stops motivating
Level 1: Physiological → Level 5: Self-actualisation
Money meets Levels 1–2 only

⚠️ Order of needs varies by person

💡

Herzberg

Two-Factor Theory (1959)

Frederick Herzberg

Hygiene factors — prevent dissatisfaction (pay, conditions)
Motivators — create job satisfaction (achievement, recognition)
Removing dissatisfaction ≠ creating motivation
Both sets must be addressed
Hygiene ≈ Maslow 1–3; Motivators ≈ Maslow 4–5

⚠️ Based on accountants only

Businesses use a combination of financial and non-financial methods to motivate their workforce.

💰 Financial Methods

Method	Description	Evaluation
Wage	Payment per hour worked or per unit produced (piece-rate)	Links pay to effort — but piece-rate can reduce quality if workers rush
Salary	Fixed annual payment divided into monthly amounts — not linked to output	Provides security, but no direct incentive to work harder
Bonus	One-off additional payment on top of basic pay for hitting targets	Motivates short-term effort, but may be seen as unfair if criteria are unclear
Commission	Payment based on value of sales made — common in sales roles	Strong incentive to sell more, but income is unpredictable
Profit Sharing	A portion of company profits distributed among employees, often annually	Encourages workers to think like owners, but workers have limited control over profit

🌱 Non-Financial Methods

Method	Description	Evaluation
Job Enrichment	Giving workers more challenging, varied and meaningful tasks — adds responsibility	Meets Herzberg’s motivators. Can increase satisfaction but may overwhelm some workers
Job Rotation	Moving workers between different tasks at regular intervals to reduce monotony	Reduces boredom and builds skills, but can be disruptive short-term
Teamworking	Organising workers into teams to complete tasks together	Meets Maslow Level 3 social needs. Boosts morale, but conflict can reduce productivity
Training	Opportunities to develop new skills — on-the-job and off-the-job	Improves performance and shows workers are valued — can be expensive
Promotion Opportunities	Clear pathways for career advancement within the organisation	Motivates ambitious workers — but if rare, can demotivate those passed over
Autonomy / Empowerment	Giving workers greater control and decision-making power over their work	Boosts Maslow Levels 4–5. Requires trust in workers’ judgement

Choosing the Right Method

Situation	Most Appropriate Method & Why
Sales team not hitting targets	Commission — directly links pay to sales performance
Workers doing repetitive assembly-line tasks	Job rotation or job enrichment — reduces boredom and increases engagement
Skilled professional workers (teachers, nurses)	Non-financial: recognition, promotion, training — these workers value fulfilment over pay
Workers with low pay in a developing economy	Wage increase — basic financial needs (Maslow Level 1) must be met first
Small business with limited budget	Non-financial methods (praise, autonomy, teamwork) — costs very little but very effective
High staff turnover	Improve hygiene factors (pay, conditions) first — then introduce motivators (Herzberg)

📌

Exam Tips — Justify Your Answer:

Always link your recommended method to the specific business context in the question.
Use theory to justify: “According to Herzberg, this is a motivator because…” or “This meets Maslow’s Level 3 social needs…”
For “recommend and justify” questions: state the method → explain how it works → link to the context → consider one drawback.

🎯 Self-Test

One question at a time — earn XP as you go

XP: 0 / 200

🔥

Streak

✅

Correct

📊

Score

—

🏆

Badge

—