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Why do people work

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If a business organisation is to motivate workers to achieve higher levels of productivity and quality, it must first understand why people go to work. The obvious explanation is ‘because they need money’. However, the money is not the only need that is satisfied by working. A combination of factors, financial and non-financial, gives an employee job satisfaction, including:

· adequate wages and fringe benefits, e.g. pension, company car;

· holiday entitlement;

· pleasant working environment;

· challenging and interesting job tasks;

· variety in the working day;

· opportunity to learn and try new ideas;

· availability of training;

· working as part of a team;

· being consulted on management decisions;

· responsibility;

· regular feedback on performance;

· recognition of good work through pay bonuses or promotion;

· social relationships inside and outside of work with colleagues and managers.


A satisfied worker is likely to be more productive, and more committed to the organisation and the attainment of its business objectives.

Motivation strategies

A variety of strategies can be used by firms to increase job satisfaction and motivate employees to work harder:

Performance-related pay (PRP). Linking pay to the performance of individuals or groups of workers can provide an incentive to greater effort. PRP can be in the form of one-off bonuses, piece rates, profit-sharing, and employee share options.

Group working. Encouraging group working can develop team spirit, which can be beneficial to the organisation. Competition between groups may also help to raise output.

New methods of working. Jobs can be enriched or expanded so that workers can be given more responsibility, undertake a wider variety of tasks, be more involved in decision-making, and have a greater sense of achievement.

Innovations such as flexitime may also improve job satisfaction. Flexitime allows workers to choose when to start and finish work, as long as they complete an agreed number of hours per week.

Managerial communication. Perhaps the most basic motivational requirement for managers is simply to communicate well with their employees. Communication can satisfy such basic human needs as recognition, security, and a sense of belonging. Managers can praise staff for their efforts, ask their opinions on organisational issues, and, involve them in decision-making. In this way managers can change the attitudes of workers so that they are more positive about their work and employers.

Rewards and punishments. If managers want to modify workers’ behaviour, they must ensure that appropriate consequences occur as a result of that behaviour. For example, if a worker who arrives on time for work is rewarded in some way, the probability of their arriving on time more often is increased. Conversely, a worker who is reprimanded or punished in some way if late – for example, by loss of earnings – is less likely to repeat the behaviour. An appropriately designed system of rewards and punishments can reinforce good behaviour and help eliminate bad behaviour and poor performance.


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