What motivates employees, and how do businesses put motivation theory into practice?
Theories of motivation, including Taylor, Maslow, Herzberg and Mayo; financial motivators such as piece rate, commission and bonuses; non-financial motivators such as job enrichment, empowerment and teamworking; and the link between motivation and productivity.
A focused answer to the Eduqas A-Level Business statement on motivation. Covers the theories of Taylor, Maslow, Herzberg and Mayo, financial motivators (piece rate, commission, bonuses), non-financial motivators (job enrichment, empowerment, teamworking), and the link between motivation and productivity, with a worked labour-productivity calculation.
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What this theme is asking
Eduqas wants you to know the main motivation theories (Taylor, Maslow, Herzberg, Mayo), the financial and non-financial methods firms use to motivate staff, and the link between motivation and productivity. Motivated staff work harder, produce better quality and stay longer, so motivation is a direct driver of performance.
The motivation theories
These theories complement rather than replace each other: Taylor explains why pay matters, Maslow and Herzberg why pay alone is not enough, and Mayo why the social side of work matters.
Financial motivators
Financial methods reward staff with money for effort or output:
- Time rate: pay per hour worked (simple, but no direct link to output).
- Piece rate: pay per unit produced (Taylor's method, raises output but can harm quality).
- Commission: a percentage of sales (motivates sellers, but can pressure customers).
- Bonuses: extra pay for hitting targets.
- Performance-related pay (PRP): pay linked to appraised performance.
- Profit-sharing and share ownership: a stake in the firm's success.
Financial methods work best where pay needs are pressing or output is easily measured, but Herzberg warns they may not motivate lastingly once pay is adequate.
Non-financial motivators
Motivation and productivity
Examples in context
A clothing factory uses piece rate (Taylor) to lift output. A supermarket combines a fair wage (hygiene) with recognition and teamworking (Mayo, Herzberg) to keep staff engaged. A tech firm relies on job enrichment, empowerment and share options to motivate skilled staff whose pay needs are already met. A sales team is driven by commission and bonuses, balanced with non-financial recognition.
Try this
Q1. State two financial methods of motivation. [2 marks]
- Cue. Any two of: piece rate, commission, bonuses, performance-related pay, profit-sharing.
Q2. A team of produces units a day. Calculate the labour productivity per worker. [2 marks]
- Cue. units per worker.
Exam-style practice questions
Practice questions written in the style of WJEC Eduqas exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.
Eduqas 20196 marksExplain Herzberg's distinction between hygiene factors and motivators, using an example of each. (6)Show worked answer →
A short-answer question rewarding the distinction and an applied example of each.
Herzberg argued that hygiene factors (such as pay, working conditions and company policy) do not motivate when present, but cause dissatisfaction when absent or poor, so they must be in place but will not by themselves drive effort.
Motivators (such as achievement, recognition, responsibility and the work itself) actively increase motivation and satisfaction when present, for example giving an employee responsibility for a project.
Markers reward the distinction (hygiene prevents dissatisfaction; motivators create satisfaction) and a valid example of each. Confusing the two categories limits the marks.
Eduqas 202110 marksEvaluate whether financial rewards are the most effective way to motivate employees. (10)Show worked answer →
A levels-of-response evaluation drawing on theory. For financial rewards: pay, piece rate, commission and bonuses can directly raise effort and output (Taylor), attract and retain staff, and matter most where pay is low or insecure (Maslow's lower needs). Against: Herzberg argued pay is a hygiene factor that prevents dissatisfaction but does not lastingly motivate, and Mayo and Maslow stress social needs, recognition and self-fulfilment; non-financial motivators (job enrichment, empowerment, teamworking) often drive sustained effort better, especially for skilled staff whose pay needs are met. Evaluation: financial rewards are effective up to a point and for some staff and tasks, but they are rarely the most effective on their own; the best approach combines fair pay with non-financial motivators, and which matters most depends on the employee, the job and the pay level. The top band judges and applies theory.
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Sources & how we know this
- Eduqas A Level Business Specification (A510) — Eduqas (2015)