[0:01]Hello and welcome to Science Business YouTube channel. In today's lesson we will cover motivating employees. That's 2.1 IGCSE business topic.
[0:15]We'll talk about the importance of well-motivated workforce, why people work and what motivation means.
[0:23]We'll talk about the benefits of well-motivated work for uh we'll talk about the concept of human needs.
[0:30]We'll talk about key motivational theories and we will also talk about ways of motivating stuff, financial and non-financial.
[0:43]We will also I've also prepared a presentation I've also prepared a task for you to do an activity for you to accomplish which will help you to better in the exam.
[1:03]Why people work and what is motivation? So why do people work? People work to earn money and fulfill their basic necessities and wants.
[1:11]To buy that car, house, clothes or holiday they want! This is why people work.
[1:21]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?
[1:31]Motivation is getting someone to do what you want them to do that is something they want to do and take pride in, getting someone to work to their best capacity and getting the best out of them.
[1:50]Motivation is the reason why employees want to work hard and work effectively for the business. You need to keep in mind that money is always the main motivator.
[2:08]Other factors that may motivate a person to choose to do a particular job may include social needs, esteem needs to feel important worthwhile, job satisfaction to enjoy good work, job security knowing that your job and pay are secure that you will not lose your job, and you'll get the pay for the job that you have done.
[2:35]So what are the benefits of well-motivated workforce? When workers are well-motivated they become highly productive and effective in their work and thus increases the firm's efficiency and output leading to higher profits.
[2:59]When workers are motivated they work to their best ability and enjoy their work environment. They get the job done. For example, in the service sector, if the employee is unhappy at his work, he may act lazy and rude to customers leading to low customer satisfaction, more complaints and ultimately a bad reputation and low profits.
[3:39]So it is very important that we have motivated staff. So benefits of well-motivated workforce is that when staff are motivated in an organization there is high possibility of reduced absenteeism people enjoy coming to work and do not try to avoid it.
[3:59]Low staff turnover low compared to organization where staff are not motivated. At the end of the day no one wants to work where they are board and there is no pride in the job they do.
[4:19]And the money is not so great, so the turnover is extremely high in these companies. So better labor turnover. So motivational theorists and their theories.
[4:32]We'll talk about three of them in this lesson. So that's one Taylor, two Maslow and three Herzberg. These are the three well known motivation theorists.
[4:49]So first of all we'll talk about Taylor. Taylor based his idea on assumption that workers were motivated by personal gains, mainly money so increasing pay would increase productivity (amount of output produced).
[5:05]He proposed that the piece-rate system, you need to keep that in mind that Taylor introduced the piece-rate system. Whereby workers get paid for the number of output they produce.
[5:18]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.
[5:31]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 situations where output cannot be measured for example in service industries and where high output that doesn't guarantee high quality.
[5:58]So our second theorist is Maslow. Abraham Maslow. He introduced the hierarchy of needs.
[6:05]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 to top.
[6:25]Mangers can identify where their workers are on and then take the necessary action to advance them onto the next level. So what Maslow suggests that as if we meet if if the employee is here and we tell them that if they work harder they'll get to this stage which is job security.
[6:51]So, for example, you have a uh agency worker. So, I'll give you an example of my current job. So, when we have agency workers, they literally get a wage high enough to meet their bills and they will have sometimes work sometimes no work.
[7:07]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. We'll give them a three-month temporary contract.
[7:25]And during that three-month of contract they 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.
[7:44]And then after their three months period they go into self esteem needs being recognized. So after the three months they've given them a another recognition and motivating them by giving them a full contract because they have done a good job in the last three-month probation period.
[8:05]And then after that being promoted into a supervisor or into a specialized role which is self-actualization. So do you see it starts from the bottom going all the way up and you continue to motivate the staff.
[8:24]And you could use this hierarchy to continue with different purposes and continue to improve employee's motivation.
[8:34]There's one limitation to his Maslow's theory which is that this theory is that it doesn't apply to every worker.
[8:44]For some employees, for example, social needs aren't important but they would be motivated by recognition and appreciation for their work from seniors.
[8:59]So if I go back to this theory, so some people will not be satisfied by job security but they will be satisfied for uh getting support from workers and the the colleagues and or a senior support member. So there's some issues with that there.
[9:20]Our final theorist is Herzberg. Herzberg. He introduced the two-factor theory, states that people have two sets of needs. One basic needs called hygiene factors, the other needs that allow the human being to grow psychologically, called the motivators.
[9:50]So he introduced a two factor theory called hygiene factor and motivating factor. So this is the his motivating factors and this is his hygiene factor. According to Herzberg, the hygiene factors need to be satisfied.
[10:04]If not they will act as de-motivators to the workers. So what he says is these hygiene factors need to be satisfied or if not then the worker automatically becomes demotivated.
[10:25]However, the hygiene again, these factors don't act as motivators. So they don't act as motivators, as they are effect quickly wear off. So it's effect quickly wears off.
[10:43]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.
[11:00]Not the hygiene factors. So we need to focus on that if we want to motivate our staff to the maximum level. So now we talk about the motivating factors.
[11:11]So there's a number of financial and non-financial motivational factors. So we'll talk about the non-financial in a later slide.
[11:22]So wages are a motivational motivating financial motivators. Um they can be into two different it can be calculated in two ways.
[11:34]So we can pay our workers in timely or piece rate. Uh the time rate is based on the number of hours a person worked. So there's no guarantee that the work will sincerely so the worker will sincerely to produce more outputs. They may simply waste time on very few outputs since their pay is based only on how long they work.
[12:03]The productive and unproductive worker will get paid the same amount of money, irrespective of their work, which can demotivate some employees. Piece rate on other hand is based on the number of output produced.
[12:18]So this doesn't ensure that quality of output produced is high. So it might demotivate efficient workers. So workers that work really hard and produced high quality products might be demotivated by workers that don't really care about the quality, just produced too many rubbish products.
[12:39]So salary is another motivating factor and it's paid monthly or annually. Uh commission is another motivational uh financial motivator.
[12:52]Uh it's paid to sales people and it's based on percentage. The disadvantage to this is that if there's no sales being made, it means no money at all. They will not get any money for that period of time they worked because they have not made any sales and it can be very stressful.
[13:13]So again, this is some more motivational motivating factors, financial ones. So bonus. Bonus is an additional amount of money paid to the workers for their good or high productivity.
[13:28]Performance-related pay. So paid based on performance, looking at KPIs to measure performance and a pay is given based on this. So profit sharing.
[13:42]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 a higher profit is made. So they can have a share of it.
[13:59]And shared ownership. So some companies of 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 belongingness.
[14:18]Knowing that they 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 harder.
[14:47]So now we talk about the non-financial motivators. So that can be company car. Free healthcare. Children's education paid for. Free accommodation. Free holidays, trips. Discount on firm's products. So these are some non-financial motivators which will help motivate employees.
[15:17]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.
[15:32]You can pause this video if you like and uh write the write your answer in the comment below so I can see it and mark it for you. I'll give you five seconds.
[15:47]Okay, time's up, ladies and gentlemen. So, let's see what other let's see what other motivators are there.
[15:58]So motivating factors, so these are again non-financial motivating motivating factors. So job satisfaction, could be promotional opportunities, team involvement, relationship with superiors, level of responsibility, chances for training, the working hours, status of the job, recognition and satisfaction can also be motivator to some people.
[16:27]So job rotation. So some involves workers swapping around jobs and doing each other's doing and doing each specific task for only a limited time and then changing around.
[16:40]So some people will get motivated if they do a job swap for a for a limited time. Job enlargement is where extra task of similar level level of work are added to the workers job description.
[17:00]So some people like to multitask and have more on their desk and they feel more motivated. So that can be a motivator for some people. Job enrichment involves adding tasks that require more skills and responsibility to do a job.
[17:17]So, uh learning new skills and more respon gaining new, getting new responsibilities will 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 a team.
[17:41]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.
[17:59]So, I can mark it for you. Um, 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?
[18:19]So, this is what I want you to do before next watching the next video. Thank you very much for joining my lesson and take care for now.
