Page 78 - Cambridge IGCSE Business Studies

Cambridge IGCSE Business Studies Section 2 People in business

4 Workers are organised into teams or groups.
5 Workers are provided with protective clothing.
6 Work is challenging.
7 The business is very profitable.
8 Workers are given responsibility for completion of tasks.
9 Workers are given free meals at work.
10 Workers are given the opportunity to develop new skills to increase their potential.
11 Workers are given the opportunity for promotion.
12 Social activities are organised for workers.
13 Workers receive payment during periods of illness.
14 Respect from other workers.
15 Workers are trained how to use equipment correctly.

Level of need How a business helps individuals to satisfy their needs
Physical needs
Safety needs

Social needs
Esteem needs
Self-actualisation

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Key motivational theories: Taylor and Herzberg

Many researchers have carried out studies to try to find out what motivates people
at work. These studies have produced a number of motivational theories. Many of

these theories have identified that individuals are motivated by the wish to satisfy

‘needs’. You have already seen how Maslow’s research described these needs. You
are now going to learn about the work of other motivational theorists and how their
studies may help management to motivate workers.

F. W. Taylor – scientific management theory
Taylor’s scientific management theory aims to reduce inefficiency in the workplace

by finding the quickest method of performing each task and then training all

workers to use this method. Th e scientific management approach is still used in

many countries today; for example workers involved in flow production specialise
in performing one task really well.
KEY TERMS Taylor believed that workers were motivated by money alone. To get workers

to increase their efforts they had to be rewarded with more money. Th is is
The theory of economic
sometimes known as the theory of economic man. Th e piece-rate method of
man: the view that humans are
only motivated by money. paying production workers developed from Taylor’s research. Workers are paid

a fixed amount for every unit they produce. If workers are motivated by money
Piece-rate: paying workers for
each unit produced. then they will work harder because the more units they produce the more they
will be paid.