Business SL

IB Business Management: Chapter 2.4 Motivation – Summary/Review/Study Guide



Why Motivate Employees?

  • If managers can motivate employees,
  • More likely that managers will achieve their goals
  • Employees become more excited about working (ex: work harder)

Intrinsic Motivation

Motivators that come from the individual (from yourself)

  • Intrinsic motivation occurs when someone gets satisfaction from an activity itself without treats or rewards from outside
  • Employees will more likely be motivated intrinsically if they work in the following situations:
  • See that success is a result of something they have done
  • Put in more work will achieve more positive outcomes
  • Have a degree of freedom in their work and control over their results
  • Interested in the work they are doing

Extrinsic Motivation

Motivators that come from outside the individual (external factors)

  • Provides satisfaction that the job itself may not provide
  • Compensate workers for the “pain” or dissatisfaction they experience at work
  • Ex: Pay

Frederick Winslow Taylor

  • Mechanical Engineer
  • Founder of Scientific Management
  • Apply scientific methods of measurement under controlled circumstances to maximize output
  • Standardization of work methods and enforced adoption
  • Ensure that output would be maximized in shortest time
  • Worker will have a specific role
  • Employees at low cost and little training

Abraham Maslow

  • Hierarchy of human needs
  • He proposed this structure to show motivation in humans
  • Arranged a number of needs in terms of their importance
  • Improvement to Taylor’s theory
  • Higher-level needs is also taken into account
  • Pyramidal structure consisting of basic and growth needs


Frederick Herzberg

  • Two-factor theory of motivation based on hygiene and motivational needs
  • Hygiene needs
  • Factors that provide dissatisfaction at work if they are not fulfilled.
  • Necessary for start, but don’t drive motivation
  • Motivators
  • Things that get you working because you get intrinsic reward
  • Reward from the success like recognition, award, etc




John Adams (Equity Theory)

  • Based upon the concept of “inputs”, ”outputs” and “equity”
  • Employees will be motivated when they perceive that a balance, or equity, exists between their inputs into the business and their outputs from it.


John Adams (Equity Theory)

Inputs:   The qualities that an employee brings to an organization

  • What the employee give or put into the work

Outputs:   What an employee receives from working at an organization

  • Everything we take out in return from working
  • Typically positive (but may also be negative)
  • Employees can also compare their ratio of inputs to outputs and compare it to other employees.


Daniel Pink (Ineffective)

  • For employees
  • Rewards
  • Monitor their performance
  • Increase performance and productivity
  • More rewards
  • Increase punishment
  • Why?
  • Narrow the focus and intellectual range
  • Reduces creativity and less innovation
  • Less accomplished task -> lose motivation -> less satisfaction


Daniel Pink (Effective)

  • Self Determination Theory (STD)
  • Having their own freedom
  • Self determination
  • Connected to other people
  • STD = more accomplishment, more rewarding life


Daniel Pink

  • Autonomy
  • Shape their own life
  • Freedom in
  • Time
  • Technique
  • Team
  • Task
  • Mastery
  • Opportunities
  • Learn
  • Innovate
  • Mastering
  • Develop skills


  • Purpose
  • Improve themselves and the world
  • Understand the business’ purpose
  • Accomplishing purpose
  • No impact on employees well being
  • Motivation in practice
  • Many organization tries to use complex payment systems in an effort to reward and motivate their employees.
  • There are no perfect payment system that exist




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