2.3 Motivation Theories – Cheat Sheet

Motivation in Business

• Motivation: The internal/external factors that stimulate people to take action, work hard, and achieve goals.
• Improves productivity, reduces labour turnover, and increases job satisfaction.
• Can be explained by content theories (what motivates) and process theories (how motivation occurs).

Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change AS Level Business Full Scale Course

Taylor – Scientific Management (Content Theory)

• Workers motivated mainly by money.
• “Economic man” → people work harder if paid more.
• Advocated piece-rate pay (pay per unit produced).
• Emphasis on efficiency, standardisation, close supervision.
• Criticism: ignores non-financial motivators, treats workers like machines.

Mayo – Human Relations (Content Theory)

• Motivation influenced by social needs and attention from managers.
• Hawthorne Studies: productivity increased when workers felt valued and part of a team.
• Teamwork, communication, and involvement improve motivation.
• Criticism: Overemphasises social factors, neglects financial motivators.

Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change AS Level Business Full Scale Course

Maslow – Hierarchy of Needs (Content Theory)

• Human needs arranged in a hierarchy; must satisfy lower levels before higher levels.

• Criticism: Not all individuals follow the same order; rigid structure.

Herzberg – Two-Factor Theory (Content Theory)

• Hygiene factors: Pay, working conditions, company policy, relationships. Remove dissatisfaction but don’t motivate.
• Motivators: Achievement, recognition, responsibility, advancement. Create real motivation.
• Practical: Job enrichment, empowerment, delegation.
• Criticism: Hard to separate motivators and hygiene in real workplaces.

Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change AS Level Business Full Scale Course

McClelland – Achievement Motivation Theory (Content Theory)

• Three main needs motivate individuals:
  • Need for achievement (nAch): Desire for challenging goals, success, feedback.
  • Need for affiliation (nAff): Desire for friendly relationships, teamwork.
  • Need for power (nPow): Desire to control/influence others.
• People have varying levels of each, shaping behaviour.
• Example: Entrepreneurs often high in nAch.

Vroom – Expectancy Theory (Process Theory)

• Motivation depends on expectancy, instrumentality, valence:
  • Expectancy: belief effort → performance. (If I work hard, I can achieve target.)
  • Instrumentality: belief performance → reward. (If I hit target, I’ll be rewarded.)
  • Valence: value attached to reward. (Do I care about the reward?)
• Formula: Motivation = Expectancy × Instrumentality × Valence.
• Example: Salesperson motivated if they believe effort increases sales, sales bring bonus, and bonus is valuable.
• Criticism: Hard to measure beliefs/values objectively.

Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change AS Level Business Full Scale Course