## **Learning Outcomes**

After reading this article, you will be able to explain the main theories of motivation applied in the workplace: Maslow’s hierarchy of needs, Herzberg’s two-factor theory, and McGregor’s Theory X and Theory Y. You will learn how these models influence managerial practice, identify the difference between satisfaction and motivation, and describe how effective reward systems can increase performance and job satisfaction.

## **ACCA Business and Technology (BT) Syllabus**

For ACCA Business and Technology (BT), you are required to understand how motivation affects individual and team performance. This topic covers the main theories of motivation and their application in management.

- Define motivation and explain its significance for organisations, teams, and individuals
- Explain the key motivation theories: Maslow, Herzberg, and McGregor
- Distinguish between motivation and satisfaction in a work context
- Describe how reward systems can be structured to improve motivation and performance
- Identify methods for designing jobs and incentive schemes to motivate employees

## **Test Your Knowledge**

_Attempt these questions before reading this article. If you find some difficult or cannot remember the answers, remember to look more closely at that area during your revision._

1. What are the five levels in Maslow’s hierarchy of needs, starting from the base?
2. According to Herzberg, which factors prevent dissatisfaction but do not motivate employees?
3. How does a Theory X management approach differ from Theory Y according to McGregor?
4. State one practical way a manager might use Herzberg’s motivators to improve performance.

## **Introduction**

Motivation in the workplace is about what drives individuals and teams to perform. Understanding what increases or decreases motivation allows managers to create conditions for higher productivity, reduced turnover, and increased satisfaction. Several established theories help explain what motivates employees and how managers can influence their performance.

> **Key Term: motivation**
> The internal or external factors that stimulate individuals to pursue certain actions or behaviours, especially relating to their performance at work.

## Maslow’s Hierarchy of Needs

Abraham Maslow proposed that people are motivated by a series of needs, arranged in a pyramid. According to this theory, needs at one level must be satisfied before people are motivated by needs at the next level.

| **Level**          | **Examples in the Workplace**                           |
| ------------------ | ------------------------------------------------------- |
| Physiological      | Pay, food, comfortable working conditions               |
| Safety             | Job security, safe environment, benefits                |
| Social             | Teamwork, friendships, sense of belonging               |
| Esteem             | Recognition, achievement, promotion                     |
| Self-actualisation | Challenging work, personal growth, fulfilling potential |

People seek to satisfy lower-level needs first. When those are met, higher-level needs become more important motivators.

> **Key Term: hierarchy of needs**
> A model that arranges human needs in a pyramid—each level must be met before progressing to a higher need.

### Limitations of Maslow’s Model

- Not everyone is motivated in the same order.
- People may try to satisfy several needs at once.
- Some needs (e.g. self-actualisation) are hard to define or measure.

### **Worked Example 1.1**

**A graduate joins a large firm and has a secure salary. However, they complain about the lack of development and growth in their role. Which level of Maslow’s hierarchy is now most motivating for them?**

> **Answer:** Self-actualisation. With basic, safety, and social needs covered, the need for personal growth is most important.

## Herzberg’s Two-Factor Theory

Frederick Herzberg identified two types of workplace factors: hygiene factors and motivators.

| **Hygiene Factors (prevent dissatisfaction):**                                     |
| ---------------------------------------------------------------------------------- |
| Company policies, salary, supervision, working conditions, relationships           |
| **Motivators (increase satisfaction and motivation):**                             |
| ---------------------------------------------------------------------------------- |
| Achievement, recognition, responsibility, meaningful work, personal growth         |

Hygiene factors do **not** motivate, but if absent, they cause dissatisfaction. Motivators, on the other hand, create job satisfaction and drive employees to perform better.

> **Key Term: hygiene factors**
> Aspects of a job that, if inadequate, cause dissatisfaction, but do not motivate when improved.
>
> **Key Term: motivators**
> Factors related to the content of the job that directly encourage higher effort and satisfaction.

### Application: Job Design

Herzberg suggested improving motivation through:

- **Job enrichment:** Increasing the depth and challenge of the job
- **Job enlargement:** Broadening the range of tasks performed
- **Job rotation:** Moving employees between different tasks or roles

Motivation increases when employees feel responsibility and see results from their actions.

### **Worked Example 1.2**

**A sales assistant is given the extra task of managing display layouts, which involves decision-making and creativity. What job design approach does this demonstrate, and which Herzberg factor does it appeal to?**

> **Answer:** Job enrichment, appealing to a motivator (responsibility and achievement).

### **Exam Warning**

> Herzberg’s hygiene factors do not increase motivation when present—they only prevent dissatisfaction. Only motivators genuinely increase performance.

## McGregor’s Theory X and Theory Y

Douglas McGregor described two sets of assumptions managers can hold about workers.

|                  | **Theory X**                                               | **Theory Y**                                           |
| ---------------- | ---------------------------------------------------------- | ------------------------------------------------------ |
| Assumption       | Employees dislike work, avoid responsibility, need control | Employees like work, seek responsibility, are creative |
| Management style | Directive, close supervision, external control             | Participative, delegation, trust in employees          |

> **Key Term: Theory X**
> A management view that employees are inherently lazy, require supervision, and avoid responsibility.
>
> **Key Term: Theory Y**
> A management view that employees are self-motivated, accept responsibility, and can be creative at solving problems.

Managers shape their approach based on which theory they believe. Theory X may use strict rules and monitoring, while Theory Y encourages involvement and autonomy.

### **Worked Example 1.3**

**A factory supervisor believes workers must be carefully watched and given simple instructions. What theory is he applying, and what might be a drawback?**

> **Answer:** Theory X. The drawback is lower engagement and possible resistance from capable workers.

## Satisfaction vs Motivation

Motivation refers to the drive to achieve targets and put in effort. Satisfaction is about contentment with current circumstances. An employee might be satisfied but not motivated to improve, and vice versa.

> **Key Term: satisfaction**
> The feeling of contentment with one’s current role or conditions, not necessarily linked to increased effort.

## Reward Systems and Performance

Effective reward systems link individual or team performance to outcomes valued by employees. Rewards can be:

- **Financial:** Pay raises, bonuses, commissions
- **Non-financial:** Recognition, extra responsibility, opportunities for development

Herzberg’s theory suggests that financial rewards alone may have limited effect; long-term motivation comes from meaningful work and achievement.

### **Revision Tip**

> For exam questions, clearly identify whether a factor is a hygiene factor (prevents dissatisfaction) or a motivator (improves performance).

## **Summary**

Motivation is key to organisational success. Maslow, Herzberg, and McGregor’s theories provide frameworks to understand and manage motivation, each emphasising different aspects—needs, job content, or managerial assumptions. Effective job design and appropriately structured rewards encourage productive behaviour and higher satisfaction in the workplace.

## **Key Point Checklist**

_This article has covered the following key knowledge points:_

- Explain Maslow’s hierarchy of needs and its workplace relevance
- Distinguish between hygiene factors and motivators under Herzberg’s two-factor theory
- Define and apply McGregor’s Theory X and Theory Y to management style
- Differentiate satisfaction from motivation in practice
- Identify how job design and reward systems can support motivation and improve performance

## **Key Terms and Concepts**

- motivation
- hierarchy of needs
- hygiene factors
- motivators
- Theory X
- Theory Y
- satisfaction

Motivation and performance - Maslow herzberg and mcgregor