Page 81 - Cambridge IGCSE Business Studies

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5: Business objectives and stakeholder objectivess
6: Motiva
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ACTIVITY 6.3

The senior managers of Farook Fashions (FF) are concerned about the fall in productivity at one of its factories – Factory A.
The company’s Human Resources Director has produced the following data for last year.

Factory A Average for FF’s
other factories

Average weekly productivity per worker 220 350
Average number of days’ absence per 19 8
worker

Number of workers who left 40 18
Average weekly wage $126 $125

Factory A employs 500 workers and is the oldest of FF’s factories. Workers in Factory A have often complained to the factory

manager about their poor working conditions compared to workers in FF’s other factories.
In a recent meeting when this issue was raised again, the factory manager said: ‘I do not understand why you keep
complaining about working conditions. You all have well-paid jobs. All factories are noisy and dirty places, this one is no

different.’ This was a typical comment from a manager who was not very well liked by the workers. He never showed any

interest in them. The only time he spoke to them was to give orders or to tell them off for breaking one of the many rules he
had introduced when he became manager 20 years ago.
1 Identify two factors that suggest workers in Factory A are less well motivated than in FF’s other factories.

2 Calculate the percentage of workers who left Factory A in the last year.
3 Do you think that money is the cause of poor motivation at Factory A? Justify your answer. 79
4 How might the senior managers at FF use Herzberg’s two-factor theory to improve productivity at Factory A?

TEST YOURSELF
1 List, in the correct order from bottom to top, the five levels of need as identified by
Maslow.

2 Explain the difference between Herzberg’s motivators and hygiene factors.

Methods of motivation
KEY TERMS

Managers can motivate workers in several ways. These can be divided into
Financial rewards: cash and financial rewards and non-financial rewards as shown in Figure 6.6, page 80.

non-cash rewards paid to workers
which are often used to motivate Financial rewards and methods

workers to increase their eff orts.

The theorists we looked at earlier agree that money is an important reason why
Non-financial rewards: people work. However, they do not all agree on how important money is as a
methods used to motivate
motivator. Taylor’s view of ‘economic man’, for example, argues that money is
workers that do not involve giving
any financial reward. the most important motivator, whereas Herzberg’s theory only sees money as
important for preventing job dissatisfaction, but not as a ‘motivator’.