Chapter 15

Motivating
individuals and
groups

What motivates you?

Morse & Weiss (1955)
Morale
Content theories
Maslows hierarchy of needs
Herzbergs two-factor theory
Process theories of motivation
Vroom
Sources of motivation
Financial rewards
Importance of pay
Performance related pay
Group bonus schemes
Profit sharing schemes
Participation

Motivation
Motivation is the urge to take action to achieve something or to
avoid something
If managers understand what motivates their staff they can actively
use this knowledge to get employees to achieve organisations
objectives
Clearly about more than money
Basic assumptions of motivation
Assume that:
People seek to satisfy needs
Organisations can offer some of that satisfaction
Organisations can influence peoples behaviour
Meeting needs = job satisfaction + positive attitude to work

Needs
Even the same basic need will cause different people to act
in different ways:
Cook
healthy
dinner

Hunger

Junk
food

Ready
meal

Fruit

Takeaway

Needs & goals

Even the same basic need will cause different people to act in different ways.
Goals also vary with time, circumstances & other factors

Influences

Comments

Childhood
environment/education

Aspiration levels are formed early on

Experience

Teaches us what to expect from life, ie we learn

from our mistakes

Age & position

Career may be very important before having

children, after which prospective changes

Culture

Some organisations emphasis the organisation,

whilst others emphasis is on individual

Self-concept

What employee thinks of themselves & their

position is also important

Morale
Military term related to satisfaction
Low morale implies dissatisfaction
Dissatisfaction is bad news as can result in:
Low productivity
High labour turnover
Attitude surveys can also used to indicate workers
perceptive of job satisfaction

Theories of motivation
Motivation theories

What motivates people

CONTENT THEORIES

How can people be

motivated?
PROCESS
THEORIES

Content theories
Assume people have a set of needs
Motivate an employee by finding out what their needs are
and offer rewards that satisfy them
Approaches:
Maslows hierarchy of needs
Herzbergs two-factor theory

Maslows hierarchy of needs

Each need dominates until it

is met
Self-actualisation can rarely
be satisfied
Needs may be satisfied
outside of work
Not all people want to rise to
top
Ignores delayed gratification
& altruistic behaviour

Herzbergs two-factor theory

Dissatisfied

Hygiene

Motivating

Factors

Factors
Satisfied

Motivated

Herzberg (contd)
Need for personal growth
= Motivator factors
Status
Advancement (or
opportunities for it)
Recognition
Responsibility
Challenging work
Sense of achievement
Growth in the job

Hygiene factors =
satisfiers
Company policy &
administration
Salary
Quality of supervision
Interpersonal relations
Working conditions
Job security

Herzberg conclusions
Motivation can be increased by:
Job enlargement widening job by including number of operation
Job rotation planned transfer of staff from one job to other to
increase job variety
Job enrichment planned, deliberate action to build greater
responsibility, breadth and challenge of work into job.
Conclusion its what you do that makes you work harder, the conditions
in which you do it dont make you happy, but can prevent you from
fulfilling your potential
Criticisms of Herzberg
An inadequately small sample size 203 engineers & accountants
Limited cultural context Western professionals
Impact of job satisfaction has proved difficult to verify
& measure

Process theories of motivation

Process theories ask:
How can individuals be motivated?
They explore the process through which outcomes
become desirable and are pursued by individuals
Victor Vroom expectancy theory
Expectancy valence = force of motivation

Vroom
Expectancy
The strength of the individuals expectation that behaving in a certain way will
result in a given outcome
Valence
The value that the individual places on the outcome (whether positive/desired
or negative/undesired)
Force of motivation
The strength of the individuals motivation to behave in the given way (and the
likelihood he will do so)
High force is only possible if both high Valence and Expectancy exist
Vroom example
High force is only possible if:
High valence + High expectancy
Consider your FAB exam:
You must want to pass the exam and believe that it is possible to be motivated to
study for it.

Managerial implications of process theories

Intended results should be made clear
Individuals are more committed to specific goals which
they helped to set
Immediate & ongoing feedback should be given
Individuals might set lower standards if they know their
rewards are linked to achieving them

Choosing a motivational approach

McGregor presented 2 opposing assumptions held by
managers about employees, which affected how they
managed & motivated them
Theory X assumes that individuals have an inherent
dislike for work & will avoid it if they can
Theory Y asserts that work is as natural as play or rest
Opposite ends of a continuum

Theory X
Employee characteristics:
Prefers to be directed
Has little ambition
Is resistant to change
Gullible
Must be coerced & controlled
= carrot n stick approach

Theory Y
Employee characteristics:
Self direction
Self control
An emphasis on self actualising needs
Motivated by circumstances of work

Rewards & incentives

Reward given in recognition of success
Intrinsic reward related to the job itself, eg loving being a
nurse
Extrinsic rewards outside the job, eg financial you like
the pay, or non-financial you like the working hours
Incentive offer of a reward designed to motivate current
& future performance

Sources of Motivation

Financial
Rewards
Participation in
decision making

Job Satisfaction

Job Design

1. Financial rewards
Maslow & Herzberg both recognise money as a means of
satisfying some needs & symbolising worth
BUT
If you were paid twice as much would you work twice as
hard?
Importance of Pay
Pay is important because:
It is a major cost for the organisation
People feel strongly about it
Legal issue eg minimum wage
It enables the organisation to attract & retain individuals
with required skills, knowledge & experience

How pay is determined

Job evaluation based on job content, reflecting the relative worth of the role
Fairness must be perceived to match the level of work
Negotiated pay scales
Market rates
Individual performance in the job

Types of Rewards
Basic wages
Overtime payments
Performance related bonus
Shares
Share options
Benefits in kind eg healthcare
Pension contributions
Service contracts & termination payments

Performance related pay

Form of incentive system, awarding extra pay for extra output or
performance
Examples:
Piecework
Bonuses for achievement of specific objectives/ outstanding
performance
Benefits of performance related pay
Improves commitment & capability
Complements other HR initiatives
Improves focus on the businesss performance objectives
Encourages 2 way communication
Greater supervisory responsibility
It recognises achievement when other means are not available

Potential problems of PRP

Subjectivity of awards for less measurable criteria
(eg teamwork)
Encouraging short-term focus & target hitting (rather than
improvement)
Divisive against team working (if awards are individual)
Difficulties in gaining union acceptance (if perceived to
erode basic pay)

Rewarding the Team

Group bonus schemes
Group bonus schemes can be used to encourage everyone to work
together
But, get bonus even if you dont pull your weight
Profit sharing schemes
Offer employees bonuses directly related to the profits or value
added
Based on the assumption all employees can contribute to profit and
should care
To be successful:
Sum should be significant
Clear & timely link between effort & reward
Reasonable chance of achieving goal

Job satisfaction
Is a key motivator & is achieved through:
Variety
Task identity/clarity
Autonomy/ownership
Constructive feedback
Task significance

Job design
Job design or redesign can increase motivation:
Job rotation moves staff from one job to another to
increase variety
Job enlargement widen the number of operations in
which job holder is involved to increase variety
Job enrichment making the job more interesting

Participation
Participation works as a motivator if the 5 Cs are present:
1. Certainty
2. Consistency
3. Clarity
4. Capacity
5. Commitment

Specimen paper
Which one of the following statements is correct in relation to
monetary rewards in accordance with Herzbergs two-factor
theory?
A Pay increases are a powerful long-term motivator
B Inadequate monetary rewards are a powerful dissatisfier
C Monetary rewards are more important than non-monetary
rewards
D Pay can never be used as a motivator
(2 marks)

Chapter 15 summary
Motivating individuals and groups

What is motivation?
'Desire to
take or avoid
action'

Rewards and Incentives

Key theoretical approaches

Intrinsic
Extrinsic

Content
theories
What motivates?

Maslow

Selfactualisation
Esteem needs
Social needs
Safety needs
Physiological needs

Herzberg
Motivating
factors
Hygiene
factors

Using pay
as a
motivator

Reward

Job
evaluation
PRP
Bonus
Profit share

Chapter 15 summary (contd)

Process
theories

Choosing
suitable
rewards and
incentives

How can people be motivated?

Vroom

Theory X/Y
McGregor

Job design
Financial
rewards
Participation
5Cs
Job satisfaction
Feedback

Chapter 16

Training and
development

Approaches to learning theory

Honey & Mumford (1986)
Learning styles
Classifications of learning style
The learning cycle: Kolb
Identifying the need for training
Learning gap
Setting training objectives
Personal development plan
Steps in personal development
planning
Training methods
Induction training
Responsibility for training &
development
Hamblin 5 level model

Approaches to learning theory

Approaches

Behaviourist psychology
relationship between
stimuli & response to
stimuli which causes
learning

Cognitive approach
Interpretation &
rationalisation from past
experiences

Effective training programmes

Design of an effective training programme should assume:
The individual is motivated to learn
Clear objectives & standards set, so each task has some
meaning
Timely relevant feedback on progress
Positive & negative reinforcement should be judiciously
used
Active participation is more telling than passive reception

Honey & Mumford (1986) Learning styles

Found that the way people learn depends upon their
psychological preferences
4 classifications of learning style
Knowledge of style favoured by learner helps tailor learning
activities
1. Theorists seek to understand the underlying concepts
taking an intellectual & logical approach
2. Reflectors observe & consider phenomena then act at
their own pace
3. Activists deal with practical active problems, in a handson experience manner
4. Pragmatists study if there is a direct link to practical
problems (on the job training)

The learning cycle: Kolb

Learning organisation
Facilitates:
Acquisition & sharing of knowledge
Learning of all its members
Continuous & strategic transformation to rapidly changing
market
Strengths of learning organisations
Experimentation ie tolerate risk that things may go wrong
Learning from past experience
Learning from others
Transferring knowledge quickly & efficiently throughout the
organisation

Training & development

Training & development strategies

Benefits of training for the organisation

Improves productivity of staff
Reduces accidents & errors at work (at associated costs)
Improves motivation & retention of staff
Improves quality of staff available internally for promotion
Attracts better staff due to showing commitment &
progression opportunities
Enables succession planning & career development
Source of competitive advantage through innovation
Helps build corporate culture

Benefits of training for the employee

Enhances portfolio of skills
Psychological benefits helps self esteem & confidence in
future
Social benefit helps satisfy social needs
The job helps them to do it successfully

Systematic approach to training

In order to ensure that training meets the real needs of the
organisation, larger firms adopt a systematic approach.
Includes:
Definition
Objective setting
Planning training programmes
Delivering training programmes
Evaluating results

Identifying the need for training

Obvious & automatic eg new computer system
Response to critical incident eg bad press about
customer service
Qualitative indicators eg number of complaints
Self assessment eg employee attitude surveys

Learning gap
Required competence present competence = training need

Determining required competence

Job analysis
Skills analysis
Role analysis
Existing records
Competence analysis

Setting training objectives

SMART objectives detailing:
Behaviour what should the trainee be able to do?
Standard to what level of performance?
Environment under what conditions? (so that the
performance level is realistic)

Specific
Measureable
Achievable
Relevant
Time-bound

Personal development plan

Individuals can incorporate training & development
objectives into a personal development plan.
Purpose of personal development plan:
Improving performance in the existing job
Developing future skills

Steps in personal development planning

1. Analyse the current position personal SWOT analysis or
use skills analysis

The aim is to incorporate more of the employees interests

into their actual roles.

Steps in personal development planning (contd)

2. Set goals:
. Cover performance in the existing job
. Future changes in current role
. Move elsewhere in organisation
. Develop specialist expertise
Goals must be SMART

3. Draw up an action plan to achieve goals, including:

. The objective
. Methods to develop skills
. Timescales for progress review
. Methods of monitoring & reviewing progress
& achievement

Training methods

Off the job training

Eg: Courses run by organisations training department, outside the context of
job, computer based learning.
Advantages:
No risk allows exploration/experimentation
Focus on learning away from distractions of work
Standardised training
May confer status, implying promotion
Disadvantages
May not be directly relevant or transferable to the job and/or content
May be perceived as a waste of time
Immediate & relevant feedback may not be available
(eg if delay for exam results)
Tends to be more theoretical doesnt suit hands on learning styles
May represent a threat implying inadequacy

On the job training

Eg: demonstration, job rotation, temporary promotion, assistant to positions,
committees, project work
Advantages:
Takes account of job context high relevance & transfer of learning
Suits hands on learning styles learning by doing
No adjustment barriers
Develops working relationships as well as skills
Disadvantages:
Undesirable aspects of job context eg corner-cutting learned
Doesnt suit hands off learning styles
Trial & error may be threatening
Risks of throwing people in at deep end with real consequences of
mistakes
Distractions & pressures of the workplace may hamper learning focus

Induction training
Purposes:
Help new recruits find their bearings
Begin to socialise new recruits into the culture & norms of
team/organisation
Support recruits
Identify training/development needs
Avoid initial problems at the induction crisis stage of the
employment lifecycle which may cause employees to
leave prematurely

Responsibility for training & development

Trainee
HR department or training department
Line managers
Training manager

Increasingly, responsibility for training & development is

being devolved to the individual learner in collaboration with
line managers & training providers.

Responsibility of training manager

Liaison with HR & operating departments
Scheduling convenient training times
Needs identification existing & future skills shortages
Programme design developing tailored training
programmes
Feedback to trainee, the operating department & HR
Evaluation measuring the effectiveness of the training

Evaluating training programmes

Evaluation carry out a cost v benefit analysis
Validation observe results of the course & measure
whether training objectives have been identified
Hamblin 5 level evaluation model
1. Trainees reaction to the experience
2. Trainee learning
3. Changes in job behaviour following training
4. Impact of training on organizational goals/results
5. Ultimate value

Development
Development is wider than just training and includes:
Work experience
Guidance, support & counselling
Education & training
Planning of the individuals future
Approaches to development
Include:
Management development (eg MBA)
Career development (career paths)
Professional development (CPD)
Personal development (more rounded individuals)

Specimen paper
Role playing exercises using video recording and playback
would be most effective for which type of training?
A
B
C
D

Development of selling skills

Regulation and compliance
Dissemination of technical knowledge
Introduction of new processes or procedures
(2 marks)

Specimen paper Section B

Specimen paper Section B

Chapter 16 summary
Training and development

Learning/education
'Knowledge
acquisition'

Knowledge
transfer
Tolerance for
risk
Innovation

Current job

The learning
organisation

Process

Development
'Growth of
individuals'

Training
'Raises
competence'

Methods

Mentoring
Shadowing
Standing in
Secondment

Potential for
future roles

Types

Management
Career
Professional
Personal

Chapter 16 summary (contd)

Benefits

Honey &
Mumford

Employer
Reduce cost
Productivity
Flexibility
Retention
Motivation

Theorist
Pragmatist
Reflector
Activist

Kolb

Employee
Skills
Social
Confidence

1st stage (have

an experience)

Observation
and reflection
Formation of abstract
concepts and
generalisations

4th stage (plan

next steps)

3rd stage (draw

conclusions
from the
experience)

Methods
Off the job

Concrete
experiences
Apply/test
implications of
concepts in new
situations

Process

2nd stage
(reflect on the
experience)

On the job

Evaluation
Hamblin
Reaction
Test
Behaviour
Impact
Value