2.2 Motivation

2026 Syllabus Objectives

By the end of this topic, you should be able to explain:

  1. Why businesses need to motivate employees to achieve their objectives
  2. What human needs are (a simple explanation)
  3. How human needs may or may not be satisfied at work
  4. The main content theories of motivation (Taylor, Mayo, Maslow, Herzberg, McClelland) and the process theory (Vroom)
  5. How these theories apply in real, practical business situations
  6. Different payment methods: time-based pay, salary, piece rates, commission, bonuses, profit sharing, performance-related pay, and fringe benefits
  7. Different non-financial motivators: training, promotion opportunities, development, status, job redesign, team working, empowerment, participation, and job enrichment
  8. Ways employees can participate in the management and control of a business

Main Content

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1. The Need to Motivate Employees

Motivation is the inner drive or desire that pushes a person to work towards a goal. Think of it like the fuel in a car — without it, nothing moves.

There are two types of motivation:

  • Intrinsic motivation — comes from inside the person. For example, a worker who genuinely loves their job and finds it meaningful.
  • Extrinsic motivation — comes from outside the person. For example, a pay rise or a bonus that encourages someone to work harder.

Why does motivation matter to a business?

Motivated employees help a business succeed. Here is how:

  • Productivity — Motivated workers produce more output and do their work to a higher standard. This leads to more revenue and higher profits for the business.
  • Reliability — Motivated employees turn up on time, meet deadlines, and take fewer sick days. This builds trust between workers and the business.
  • Lower staff turnover — Staff turnover means how often employees leave and have to be replaced. Motivated employees are happy and tend to stay longer. This saves the business money it would otherwise spend on recruiting (finding) and training new staff.
  • Better quality — When employees care about their work, they make fewer mistakes and produce better products or services.

In short: motivated employees help a business meet its goals, while unmotivated employees can slow it down and cost it money.

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