1) There are several reasons why people work beyond just earning money, including making friends, having job security, and feeling a sense of achievement. 2) Maslow's hierarchy of needs suggests that people are motivated to work to fulfill different types of needs, starting with basic survival needs and progressing to more advanced needs like esteem and self-actualization. 3) Businesses can motivate workers through organization, leadership style, and pay methods. Effective organization includes good communication, interesting work, and pleasant working conditions. Leadership styles like democratic and autocratic each have advantages and disadvantages for motivating workers. Pay methods like piece rates, commissions, and profit sharing can incentivize different types and levels of performance

1. Why Do People Work?
Work?
Money is probably at the top of your list!
However, there are other reasons:
To make new friends
To have job security
For a sense of achievement/importance
To have a sense of identity
To satisfy ambition
There is little doubt that most people
work to satisfy their needs and wants
This idea was developed by Abraham
Maslow
© Business Studies Online: Slide 1

2. Maslow‛s Hierachy of Needs
Needs
Maslow believed that Self Realisation
the reason people go
to work changes
Self-Esteem
He created a
Hierarchy
Social Needs
Which he thinks
people will work up Safety Needs
Basic Needs for Survival
© Business Studies Online: Slide 2

3. Motivation
Motivation
Workers need to be motivated to work hard
The things that motivate workers can be split into two
groups:
Monetary Rewards Non­Monetary Rewards
This involves giving the This involves giving rewards
worker more money, e.g. other than cash, e.g.
Increases in Pay Company Car
Bonus Schemes Free Health Care
Staff Discounts On­Site Creche
Shares in the company
© Business Studies Online: Slide 3

4. Herzberg‛s Two Factor Theory
Theory
Frederick Herzberg decide to ask workers what motivated
them
From this he developed his TWO­FACTOR THEORY
Herzberg found that it is possible to split the things that motivators
into 2 groups – but not based around money.
Instead he split them according to MOTIVATORS and HYGIENE
FACTORS:
Work
Motivators Hygiene Factors
Things which motivate Things that prevent dissatisfaction
Eg: Chance of Promotion Eg: Pay
© Business Studies Online: Slide 4

5. How Do Businesses Achieve This?
This?
There are three ways in which businesses can allow
workers to obtain these:
Motivation through organisation
This refers to the way their work is organised
Motivation through leadership
This refers to the type of boss workers have
Motivation through pay
This refers to the way in which workers are paid
© Business Studies Online: Slide 5

6. Motivation Through Organisation
Organisation
The way that the workplace is organised will affect
workers motivation
There are 5 ways in which motivation can be increased:
Good Communication
Job So workers know what is going
Enlargement on
Gives workers more
tasks of the same skill
level. It may require
training and reward
with higher pay Good
Working
Conditions
Pleasant
surroundings give
the impression
that the employer
Job Enrichment
Gives workers more Job Rotation cares
responsibility Where workers change jobs on a regular
basis. This requires more training but
relieves boredom
© Business Studies Online: Slide 6

7. Motivation Through Leadership
Leadership
The type of boss they have to work with will affect the
effort that workers apply
There are 3 types of leadership styles:
Types of Leader
Laissez­Faire Democratic Autocratic
· Workers can do · Listens to · Tells people what
what they think workers views to do
· Gives workers · Good for skilled · Good when quick
opportunities workers decisions are
· Can create needed
stress · Can de­motivate
© Business Studies Online: Slide 7

8. Motivation Through Pay
Pay
Firms can use different payment methods to
encourage workers to work harder:
Payment Method Definition Advantage Disadvantage
Flat Rate Paid according to Useful in service No incentive to
number of hours industries work harder
worked
Piece Rate Paid according to Gives incentive to Lower quality
production work quickly products
Commission Paid a percentage Useful for sales Can result in low
of the value sold staff basic wage
Profit Sharing Workers get a Creates a “team” All employees get
small share of feeling the same
profits
Share Ownership Workers are given Increases loyalty Only available to
free shares LTDs and PLCs
© Business Studies Online: Slide 8

9. Paying Workers
Workers
When workers are paid they should receive a pay slip
This should include the following information
Gross Pay
How much was earnt
Statutory Deductions
Money taken out for things that have to be paid, including
Income Tax (PAYE)
National Insurance Contributions
Voluntary Deductions
Money taken out for things the worker has chosen to pay, including
Pension Contributions
Trade Union Fees
Net Pay
This is the amount that is left.
Often called “Take home pay”
© Business Studies Online: Slide 9

10. A Real Pay Slip
Slip
A real pay slip might look something like this:
General
Details
Income
Tax & N.I.
Gross Deductions
Pay
Tax Payments
code made so
far this tax
Week in year
the tax
year
The
Employee’s important bit!
N.I. Number Your net pay!
Reference for
the company
© Business Studies Online: Slide 10

11. An Exam Style Pay Slip
Slip
A typical pay slip in an exam might look something like
this: CARLTON PRESS LTD.
Date: 28 March, 2003 Name: Sunil Mandraker
Emp No. 22548 Nat Ins. YW523784A
Pay and £ Deductions £
Allowances
Salary 1100.00 Income Tax 196.10
Commission 108.80 National Insurance 84.62
Pension 113.48
Total Gross Pay 1208.80 Total Deductions 394.20
NET PAY 814.60
© Business Studies Online: Slide 11