Lecture Notes: Motivation, Demotivation, and Human Resources

Overview

• Focus on motivation, demotivation, and human resources.
• Approximately 89 terms and definitions.
• Lecture divided into three parts:
  1. Motivation Theories
  2. Rewards (Financial and Non-Financial) and Training
  3. Turnover, Appraisal, and Recruitment (for higher-level students)

Part 1: Motivation Theories

• Definitions of Motivation

  • Reasons for behavior; drives achievement.
  • Intrinsic Motivation: Internal drive without external rewards.
  • Extrinsic Motivation: Driven by external factors like rewards.

• Importance of Motivation

  • Motivated staff: High job satisfaction, productivity, and profitability.
  • Demotivated staff: Low satisfaction, productivity, and profitability.

Motivation Theories

1. Scientific Management (Taylor's Theory/Taylorism)

   • People motivated by money.
   • Emphasis on division of labor and specialization.
   • Performance related pay; decisions based on strict criteria.
   • Limitations: Hard to measure mental output, low flexibility.
   • Benefits: Works in certain jobs (e.g., McDonald's), applicable in some cultures.

2. Maslow's Hierarchy of Needs

   • Five needs: Physiological, Security, Social, Esteem, Self-actualization.
   • Criticism: Needs hierarchy doesn’t apply universally.
   • Benefits: Straightforward and encourages intrinsic motivation.

3. Herzberg's Two-Factor Theory

   • Hygiene Factors: Basic needs that prevent dissatisfaction.
   • Motivators: Drive intrinsic motivation.
   • Criticism: Based on accountants/engineers, not applicable to all jobs.
   • Benefits: Helps identify intrinsic motivators.

4. McClelland's Theory of Acquired Needs

   • Three needs: Achievement, Affiliation, Power.
   • Needs vary among individuals and over time.
   • Criticism and Benefits: Flexible, aligns tasks with individual needs.

5. Self-Determination Theory (Deci & Ryan)

   • Two motivations: Autonomous (self-driven) and Controlled (external).
   • Three universal needs: Competence, Relatedness, Autonomy.
   • Criticism: Difficult to quantify needs.
   • Benefits: Universal application and promotes intrinsic motivation.

6. Equity and Expectancy Theory

   • Employees compare efforts and rewards.
   • Expectancy: Belief in achieving rewards.
   • Criticism: Hard to measure inputs/outputs.
   • Benefits: New perspective on employee motivation.

Part 2: Rewards and Training

Financial Rewards

• Salary: Fixed annual amount.
• Wage: Variable, based on time or output.
• Commission: Percentage of sales.
• Performance-Related Pay: Based on achieving targets.
• Profit-Related Pay: Percentage of company profit.
• Share Ownership Scheme: Ownership of company shares.
• Fringe Benefits: Non-cash benefits.

Non-Financial Rewards

• Job Enrichment/Enlargement/Empowerment: Tasks/responsibility/decision-making.
• Job Rotation: Switching roles within a team.
• Purpose and Social Impact: Making a difference.
• Teamwork: Shared responsibility and collaboration.

Training Types

• Induction Training: For new employees.
• On-the-Job Training: At the workplace.
• Off-the-Job Training: External and sometimes outside work hours.

Part 3: Turnover, Appraisal, and Recruitment

Labor Turnover

• Rate of employee departure and replacement.

Appraisal Types

• Formative: Developmental feedback.
• Summative: Performance assessment.
• Self-Appraisal: Self-reflection.
• 360-Degree Feedback: Feedback from all levels.

Recruitment Process

• Steps: Vacancy arises, job analysis, job description, advertisement, applications, shortlisting, interviews/testing, offer contract.
• Internal vs External Recruitment:
  • Internal: Motivates existing employees, but limits fresh ideas.
  • External: Larger pool of candidates, brings fresh ideas but higher uncertainty.

Conclusion

• Review 89 terms related to human resources and motivation.
• Ensure understanding of objectives and key concepts.