2.4 Motivation and Demotivation

A type of appraisal system that provides feedback from a range of people who work with or interact with the appraisee, such as their line manager, co-workers, subordinates and even customers.

Acquired needs theory
(HL only)

D. McClelland’s theory of motivation, based on three types of needs that must be satisfied in order to improve motivation: the need for achievement, power, and affiliation.

Appraisal
(HL only)

Also known as a performance review, this is the formal procedure of assessing the performance and effectiveness of an employee, in relation to his/her job description.

Commission

Type of financial payment system that rewards workers a certain percentage of the sales of each good or service that they are responsible for completing.

Differentiated piece rate

Financial payment system advocated by F.W. Taylor to reward workers based on the level of their output or productivity.

Division of labour

The process of splitting up different parts of a job or task and assigning different employees or teams to each particular part of the work. This helps to improve operational efficiency and output.

Employee share ownership scheme

Type of financial payment system that involves giving workers shares in the company they work for, either free of charge or at a discounted price.

Empowerment

The delegation of decision-making power to workers, granting them the autonomy and authority to be in charge of their own jobs and to execute their own ideas.

Equity theory
(HL only)

J.S. Adams’ theory of motivation suggests that people make social comparisons of fairness in the workplace (based on the ratio of their input (effort) to output (rewards).

Esteem needs

In Maslow’s hierarchy of needs, this refers to the desire of people to feel respected, having value and having self-respect.

Expectancy theory (HL only)

V. Vroom’s theory of motivation suggests people only put in the amount of effort to do a job or task if they expect their performance to be recognized and rewarded.

External recruitment
(HL only)

The approach or process of hiring people from outside the organization to fill job vacancies.

Formative appraisals
(HL only)

Type of appraisal that takes place on a continual basis in order to allow workers to improve their performance and effectiveness.

Fringe benefits

Also known as perks, these are financial benefits of a job in excess of the basic pay (wage or salary).

Gratuity pay

Financial reward for long-term service or for the completion of a fixed-term contract.

Hierarchy of needs

Maslow’s theory of motivation that people are motivated by different levels of needs: physiological, safety, social (love and beginning), esteem and self-actualization.

Hygiene factors

Also known as maintenance factors, these are the factors that F. Herzberg argued cause dissatisfaction in the workplace (rather than motivation), so must be addressed.

Induction training

Type of training intended for new employees in order to help them acclimatise with the people, policies, and processes of the organization.

Internal recruitment

The approach or process of hiring people who already work for the organization to fill a vacant post, e.g., internal promotion to a managerial post.

Job analysis
(HL only)

The process of examining what a particular job involves, thereby enabling the HR department to determine the roles, tasks, duties, responsibilities, and skills required to do the job.

Job description (HL only)

Document containing the particulars of a job, e.g., the job title, roles and responsibilities, and other duties.

Job enlargement

A type of non-financial motivation that takes place when more tasks or activities are added to a worker’s job description.

Job enrichment

Type of non-financial reward, involving enhancing the experiences of workers, giving workers a wide range of challenging tasks and more responsibility at work.

Job evaluation
(HL only)

An assessment of the value of a job in relation to other jobs in the organization, so that the remuneration and other rewards can be determined in an objective, transparent and fair manner.

Job rotation

Type of non-financial motivation that involves workers switching between jobs (tasks) for a period of time.

Job security

The assurance given to employees that they will keep their current job for the foreseeable future, usually stated in an employment contract.

Labour turnover (HL only)

The amount of people who leave an organization, expressed as a percentage of the workforce, per time period (usually one year).

Mentoring

The training process of pairing, or attaching, an employee (the trainee or mentee) with a more experienced colleague (the mentor) who acts as a coach, trainer, or advisor.

Motivation

The intrinsic desire to do something, which exists when workers do something because they actually want to, rather than because they have to.

Motivators

Also known as growth factors, these factors address the higher-level needs in Herzberg’s motivation theory and are based around the job itself, e.g., achievement, purpose, and responsibility.

Off the job training

Type of training led by external specialists and takes place away from the place of work.

On the job training

Type of training that takes place within the organization, so employees are performing tasks at the place of work.

Performance-related pay (PRP)

Type of financial payment system used to pay people a bonus for reaching or exceeding a set target.

Person specification
(HL only)

Document containing details of the attributes and qualities of the ideal person for a particular job, such as preferred qualifications, experiences, knowledge, skills, and personality.

Physiological needs

Also known as basic needs, these are the requirements for human survival in Maslow’s hierarchy of needs.

Piece rate payment

Financial reward system that pays workers based on their output or productivity, e.g., $8 per unit of output.

Productivity

Refers to the operational efficiency of employees by calculating levels of output per worker. The more motivated employees are, the more productive they will be.

Profit-related pay

Type of financial reward system which remunerates workers a certain percentage of the annual profits that the business earns.

Promotion
(HL only)

The career advancement of an employee in terms of their hierarchical ranking and professional responsibilities.

Purpose

An intrinsic, non-financial type of motivation involving people doing genuinely meaningful work, making a difference on a personal, professional or social level.

Recruitment
(HL only)

The process of hiring a suitable worker. This would typically involve a thorough job analysis in order to attract suitable candidates and then to selecting (hiring) the one(s) most suited to the job.

Recruitment process
(HL only)

A major and vital aspect of human resource management, this refers to the procedures involved in the hiring of the right employees, with the right aptitudes and attitudes.

Remuneration

The overall financial package of a person, e.g., salaries, commission, profit-related pay, performance-related pay, share ownership schemes, and fringe benefits.

Retention
(HL only)

The opposite of labour turnover, this measures the ability of an organization to keep its employees at the firm.

Safety needs

Also known as security needs, these are the requirements in Maslow’s hierarchy of needs that make people feel safe, such as job security.

Salary

Type of financial payment that rewards workers a fixed annual amount of money but paid in monthly instalments.

Scientific Management

F.W. Taylor’s theory of motivation, that people are, above all things, motivated by higher wages. Hence, there is one best way to motivate these employees.

Self-actualisation

This is the highest level of needs in Maslow’s hierarchy of needs, which occurs when people become the very best that they can be and fulfil their potential.

Self-appraisal
(HL only)

A type of appraisal system that involves the individual employee reflecting on and rating his/her own performance against the pre-agreed standards.

Self-determination theory
(HL only)

E. Deci and R. Ryan’s theory of motivation that suggests three key requirements to facilitate motivation in the workplace: autonomy, competence, and relatedness.

Summative appraisals
(HL only)

Type of appraisal conducted periodically or at the end of a task or project, so includes an element of making a judgement about whether the appraisee has passed the agreed standards.

Shortlisting
(HL only)

The process of employers selecting the most suitable applicants and inviting them for a job interview.

Social needs

Also known as love and belonging needs, this refers to the requirements in Maslow’s hierarchy of needs about being accepted by others.

Teamwork

A form of non-financial motivation, involving the combined efforts of a group of workers to achieve of an organizational goal.

Time-rate payment

Financial reward system that pays workers based on their time input in the production process, e.g., $10 per hour.

Training

The process of providing opportunities for employees to grow and develop by learning and acquiring employment-related skills, knowledge, and experiences.

Wages

Type of financial reward payment system based on time or output. Wages are paid as time rate (hours) or piece rate (output).

PRACTICE QUESTIONS

Activity 2.4A Applying the motivation theory.pdf

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