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If people aren’t motivated and are having time off or not working as good as they should be this will have a impact in the companies corporate aims and objective and make them harder to reach, it might also have an impact financially. If the turnover is high this will affect the productivity as new people will always be coming and they’ll have to learn how the company operates and it will take time for them to settle down, it will also unsettle the co-worker. If a company pay its staff more money then they the company may make more profit overall. Many people have come up with theories on what motivates people such as:

Abraham maslow thinks that everyone has a hierarchical of needs and you are motivated by yours. He describes it as a pyramid and says that once you fulfil one level of needs you will move on to the next one. He believes we all have the same basic needs and they are fulfilled in order 1) Physiological needs- Life, food, water survival 2) Safety needs – Job security in a nice environment 3) Social needs – Feeling accepted by the other workers and making friends 4) Self esteem needs- Praise, recognition and encouragement. 5) Self actualisation needs – achieving something. He thinks the first 3 needs to be reached before moving on to 4 and 5.

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Frederick Herzberg theory has 2 main points. He thinks there are things called hygiene factors such as pay, working conditions and supervision. She doesn’t believe that these in themselves motivate people although he doesn’t think they’ll be happy without them. He calls recognition, advancement, responsibility and a sense of achievement Motivators Fredrick W Taylor believed that workers were only motivated by money, so work should be more closely linked to pay. The more people produce, sell etc. the more money they should earn. Managers should use pay as an incentive and if they aren’t working as best as they can give them less money.

Douglas McGregor believed there were two main ways of managing people. Theory x and theory y. Theory x – people don’t want to work and will avoid it if they can, they are lazy and need incentives they have to be persuaded by given money and rewards, they must be supervised closely. Theory x managers think employees aren’t ambitious and don’t want any responsibility. Theory Y- Employees want to do well and believe work is satisfying and rewarding they want responsibility and challenges and don’t need any punishment. It’s up to managers to meet the objectives of the employees with that of the business.

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