Motivational Factors Affecting Employees At Work Business Essay

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In business, employee motivation plays a huge part with the employee and employer relationship. Motivation is why employees want to work heard and work effectively for the business (Borrington. K & Stimpson. P)

It is quite evident that comparing to earlier days, now the employees are considered as one of the key force on an organisational success. Where organisations expects high productivity and efficiency from its staff especially in the Small and Medium sized companies (SME), motivation can act as a driving force within the worker which will lead him/her to achieve targets and goals. Eventually this will help those organisations towards achieving their organisational success.

Financial motivators

Non-financial motivators

When we discuss about the motivational factors there is a common misunderstanding of it can be only in the form money. In face we can divide them into two main categories.

1. Financial Motivators:

1. Financial Motivators:

The financial motivators are used as giving incentives to employees to encourage them to work harder and effectively.

1.1 Salaries and Wages: Salaries and wages are often seen as the key motivator for an individual to work. More the pay, more motivated the employees are. In order to keep the staff motivated and to get the best out of them, organisations dose salary revisions and increments.

1.2 Performance related pay: These rewards often paid to sales staff on the basis of target related or on the commission basis. More sales will be rewarded with more pay.

1.3 Profit Sharing: This motivates the workers to work hard as they all receive a share of the profit earned by the business. Employees receive a share of the profit as bonus in addition to their salary.

1.4 Share Ownership: This motivates the employees to have greater sense of being part of the company as they are being encouraged by giving some shares of the company and they will receive dividends if the company does well.

2. Non-financial Motivators:

These are factors that encourage workers to work harder and effectively aside from money.

2.1 The work environment: A workplace can motivate the workers to work effectively if it provides a safe, happy and a harmonious environment.

2.2 Benefits: Family vacations, free accommodations, medical pays, children's educational expenses are some of the benefits which can improve the performance of an employee. Eventually this will lead towards employee job satisfaction.

2.3 Prestige, respect and Recognition: If efforts being recognised and acknowledged by managers, fellow workers, and public, an employee will be motivated to repeat or do something even better.

2.4 Job Security: A staff will be confident and will perform better if he is confident about his continuity of his job in his organisation. If an organisation fails to provide job security, the employee will feel less involved and perform less.

2.5 Independence: employees should also be left to work independently, where they get opportunities to grow more. This can motivate the staff as it will build their ability to think creativity, to be flexible and take up challenges.

Some other nonfinancial factors:

2.6 Interest: Staff would be motivated to work effectively if he/she finds it interesting especially in case where their passion besoms their work.

2.7 Team work: in team work workers become more involved in the decision making. This gives a feeling of control over the job/tasks and the employees feel more committed, there for it keeps the employee alive and gives a job satisfaction.

Human Relation School of Management in relation to motivation of staff

Human relation school of management:

This is also known as humanistic theory and refers to how organisations can motivate their employee to be more productive. With compared to the classical autocratic and scientific motivational theories, the human relations approach brought a new element looking into working as a team on task basis as well as psychological influences of employee.

According to Elton Mayo, this type of approach is referred as "Relationship between employees and employer which are not regulated by legal norms, but by moral and psychological factors".

The following theories can be categorised under human relations theory:

Elton Mayo's workforce motivation - The Hawthorne Effect

Abraham Maslow's Hierarchy of needs

Fredric Herzberg's Hygiene factors

McGregor's theory "X" and theory "Y"

Characteristics of Human relation school of management and how it helps to motivate the staff:

Emphasises the task based work: This will give the employee a clear objective of what his or her team's task is; which will motivate him in order to achieve their goal as it provides him/her a sense of belongingness.

Creative, emotional, cognitive contribution of employee: As this follows more de-centralised and more democratic approach towards the management, it will allow the worker to be more creative to make new ideas and decisions. Therefore the worker will feel more valuable about himself within the organisation and this will motivate him to emotionally get involved to achieve the organisational goal.

Concept of two way communications: Contrasting to classical approach where top level management which gave orders and literally took any inputs from their subordinates, human relation approach allowed a lot of inputs from the lower level workers. This helped both the organisation to make better decisions and also motivated the employee to get better feedbacks and acknowledgments.

Social wellbeing of worker: As this approach tries to address various needs of the worker, it helps an organisation to provide a worker with a better and joyful social working environment where the workers have a good understanding and relationship among them as well as with the organisation. This will motivate them to perform better.

Empowerment of the staff: By promoting, giving out and delegating more power and control over the organisation, the human relation approach will enable the employee to feel more responsible and credible. This will motivate the worker to perform even more to gain more trust and recognition.

Classical school of management:

This is the theory which has evolved due to the industrial revelation time from the late 19th century to the beginning of 20th century. This motivational theory was developed based on considering the employees' psychical and importantly the economical needs and the ways to fulfil them. Therefore the early organisations which followed this system tried to be more productive and profitable by employee specialisation, financial motivators to improve efficiency and centralised management style and focused on the organisational benefits only.

The classical school of management comprises with theories like:

Taylor's Scientific management theory

Administrative theory - Henry Foyle

Max Weber's Bureaucratic organisational theory

Scientific School of management:

As the term itself refers, this is a scientific way of managing the organisation and also known as Taylorism with recognition to its creator Fredric Winslow Taylor, who demonstrated improvement of productivity within the organisation by a process of workflow which involved procedures, standardisation, measurement and rationalisation of work, as well as division of workforce. This management style had a logical framework which everyone should follow it as it is.

According to Taylor, "a best management is a true science" and he proved it by following a controlled experiment of the organisational process which eventually produced the Taylorism.

The characteristics of this style:

Work of the employee is categorised into various levels and a scientific way of routine is determined in each level.

Employee has to work on a defined or scientifically trained way.

With division of workforce, managers designs, supervises and instructs and the employee will follow it.

Manager and the worker will have a good understanding in order to do the work exactly as required.

Both these theories does not consider the social wellbeing and the work environment of the employee as motivation factors instead the organisational productivity.

The classical school of management looks at the overall organisation's benefits and tries to improve productivity by motivating the employee financially. On the other hand the scientific school of management looks at a more systematic approach and a process of specialisation in order to increase productivity.

Workforce Planning:

The workforce planning or the personnel planning is the process of deciding what position in the firm would have to be filled at some specified time in future and how it is going to be filled. In other words, it is the plan of action to understand where, when and how many staff we would need with related skills, competencies and experience. This is to be done in order to achieve organisational objectives in the future.

According to Jamie Hale, a practice leader at MD based consulting firm called Watson Wyatt Worldwide, workforce planning is "The most strategic work HR can do and it acts as the umbrella over all HR services".

Identifying organisation's strategic directions

Scan the internal and the external environment

Model the current workforce

Assess future workforce needs and project future workforce supply

Identifying gaps and develop Gap-closing strategies

Implement Gap-closing strategies

Evaluate the effectiveness of the Gap-closing strategies and revise strategies as needed.

Each organisation workforce planning process may differ, depending on the nature of their business. Ann Cotton, the director of Schaefer Centre for Public Policy at the University of Baltimore in her report called Seven Steps of effective workforce planning has identified the following steps which can be included in a workforce planning process.



To make better decisions: Workforce planning will help the HR manager to make more accurate human resource decisions as it is a systematic process which is developed on a strategic basis. This will help them to identify and select the right person with required competency to fulfil the current as well as the future gaps.

To be better prepared: Any workforce of an organisation does not remain static. This can be due to retirements, promotion, terminations and job pursuit. Therefore the HR planning process is very important for any business as it helps them to forecast what might happen to their current workforce by using the trend and ratio analysis. Therefore they will be prepared in case of any issue and anticipate and act accordingly rather than being surprised.

Helps business to achieve its objectives: Workforce planning will make sure that the organisation will use their human resources very effectively on an optimum level. This will lead to efficient use of the employee. This way the organisations will be able to achieve objectives like the improvement in sales, profits etc.


Expensive and time consuming: To develop the plan, not only it consumes a lot of money but also it consumes a lot of time as organisations try to track down both the general and workforce expenses. In order to do this the HR department uses various processes on the multiple departments of the organisation and customises each application. This includes collecting data from both internal and external sources like labour, immigration, economy and industry specific information.

Issues related to Integration: Usually the workforce planning process should integrate with other organisational functions and activities. But in practice it is done independently. According to Sullivan of his article why workforce planning fail 2002, this can create the danger towards exercising too much corporate power over different unites.

Some overambitious plans which are never implemented can also lead to inefficiency due to wasted resources.