Cambridge IGCSE Business (0264) syllabus reference: 2.4.1 and 2.4.2
Why people work: to earn money for necessities and luxuries, security, friendship, status, and a sense of achievement.
Benefits of a well-motivated workforce: higher labour productivity, lower absenteeism, lower labour turnover (lower recruitment and training costs), and greater willingness to accept change.
| Theory | Main idea | What it means for businesses |
|---|---|---|
| Taylor | People are motivated mainly by money; work should be broken into simple tasks and closely supervised | Piece-rate pay; close supervision; efficiency |
| Maslow | Needs form a hierarchy: physiological, safety, social, esteem, self-actualisation. Once a level is met, the next motivates | Pay meets basic needs; teamwork, recognition and promotion meet higher needs |
| Herzberg | Hygiene factors (pay, conditions, supervision, security) prevent dissatisfaction but do not motivate; motivators (achievement, recognition, responsibility, promotion) do | Fix hygiene factors first, then use job enrichment and recognition |