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NotesBusiness ManagementTopic 2.4Causes of demotivation
Back to Business Management Topics
2.4.410 min read

Causes of demotivation

IB Business Management · Unit 2

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Contents

  1. 1What demotivates staff
  2. 2Spotting demotivation: signs and surveys
  3. 3Responding: match the fix to the cause
  4. 4Exam-style question
Ben at the High Street shop: Ben has worked the till at Lena's High Street shop for three years. He has not become lazy, but something about the job has taken his will to work well away.

Ben, before

  • He used to arrive early.
  • He learned the regulars' orders.
  • He fixed the bread display without being asked.

Ben, this year

  • He arrives at 7:10 for a 7:00 start.
  • He has called in sick six times.
  • He does exactly what the job needs and nothing more.

When staff lose the will to work well, they are demotivated. The effort drops to the minimum, mistakes creep in, and the best people start to look elsewhere.

Demotivation always has causes, and most of them sit inside the business, where a manager can reach them. They fall into three groups: the deal the staff get, the job they do, and the way they are managed.

The deal

  • Poor pay: less than the same job pays elsewhere
  • Poor conditions: a cold shop, broken equipment, no proper break room
  • Job insecurity: fear that the job, or the shop, may soon go
  • Unfairness: the same work, but some people get better shifts or more pay

The job

  • Boring work: the same small task all day, every day
  • No chance to grow: nothing new to learn and no way up
  • No say: changes are decided and announced, never discussed

The management

  • No recognition: good work goes unnoticed and unthanked
  • Poor management: rotas changed at the last minute, criticism in front of customers
  • Poor communication: staff hear the news last, or as a rumour

Three causes in Ben's job

  • Boring work. Ben's till job has been the same for three years.
  • No recognition. Nobody thanked him for the Saturday he covered alone.
  • Job insecurity. He heard from a customer, not from Lena, that the High Street lease ends next year.
One cause rarely comes alone: Any one of these he could live with. Together they add up, so look for every cause, not just the first one you find.
What demotivatesAt the High Street shopThe earlier idea it breaks
Poor pay or conditionsThe Goldcrust bakery two doors down pays $1 an hour more; the shop is cold in winterA hygiene factor is missing, so staff are dissatisfied (Herzberg, 2.4.2)
Job insecurityThe rumour that the lease ends and the shop will closeSafety needs are not met (Maslow, 2.4.1)
Boring workThe same till job, every shift, for three yearsThe work itself, a motivator, is missing (Herzberg, 2.4.2)
No recognitionNobody says thank you for the busy SaturdaysEsteem needs are not met (Maslow, 2.4.1)
No sayNew opening hours were announced on a notice, with no one askedNo responsibility: the opposite of empowerment (2.4.3)
Poor managementThe rota for next week is pinned up on Sunday nightSupervision and company policy, both hygiene factors, go wrong (Herzberg, 2.4.2)

Read the table from right to left and it becomes a checklist. Every idea you met about what motivates people also tells you what demotivates them when it is missing.

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Lena does not see Ben's face every morning. She runs three shops and a bakehouse, so she sees numbers. Put the High Street shop beside the other two and the numbers tell her where to look.

This yearHigh Street shopMarket Square and Park RoadWhat it may mean
Days off sick, per person93Staff avoiding a job they have stopped caring about (absenteeism)
Late starts, per month144Little reason to be there on time
Staff who left or gave notice1 of 40 of 6Labour turnover starting to rise (2.1.6)
Customer complaints, per month113Slow or unfriendly service at the counter
Till errors, per month206Less care over the work
A sign points; it does not explain: Staff being absent from work (absenteeism), lateness, staff leaving, complaints and mistakes all say that something is wrong, and where.

None of them says why. Nine sick days could be boredom, a bad back or a manager nobody likes. To find the cause, Lena has to ask.

So Lena sends every one of her 20 employees a short questionnaire about how they feel at work (an employee survey). It has no names on it (anonymous), so people can be honest. It asks five questions, each with three answers to tick. Eleven of the twenty send it back.

Question (11 replies)HappyAcceptableUnhappy
Your pay263
Your hours of work362
Is your work interesting?137
Are you thanked for good work?128
Do you have a say in how things are done?137

Four checks before you trust a survey

1

Who answered?

The share of people asked who replied is the response rate: 11 of 20 is 55%. Nine staff said nothing, and the unhappiest may be among them, or the happiest.

2

What was asked?

Five questions is quick to answer, but it misses a lot: nothing on job security, the managers or the working conditions.

3

How could people answer?

Three boxes to tick and no space to write. Lena learns that people are unhappy, not why.

4

What can it not show?

No names means no shop either, so Lena cannot tell whether the unhappy answers come from High Street, where the signs pointed.

Even with those limits, the results say something clear. Pay and hours are mostly acceptable: only 3 and 2 of 11 are unhappy. Recognition, interesting work and a say are not: 8, 7 and 7 of 11 are unhappy.

The problem is less the deal the staff get, and more the job and the way it is managed.

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Lena's first idea: Lena's first thought is a pay rise for the High Street staff: $1 an hour more, to match Goldcrust. Marco points at the survey.

The pay rise

  • $1 an hour more, to match Goldcrust.
  • Four people working about 1,800 hours a year.
  • That is about $7,200 a year.

What the survey says

  • Only 3 of 11 are unhappy with pay.
  • 8 of 11 say nobody thanks them.

A pay rise answers the smaller complaint and leaves the bigger ones where they are.

That is the rule for responding to demotivation: find the cause first, then choose a fix that matches it. A fix aimed at the wrong cause costs money and changes nothing.

The causeA response that fitsWhat it draws on
Boring workMove staff between the till, the bread display and the weekly orderingJob rotation, enlargement or enrichment (2.4.3)
No recognitionThank people by name at the Monday team talk; tell Lena about good weeksRecognition, a non-financial reward (2.4.3)
No sayAsk the counter staff before changing the opening hours; let them plan the displayEmpowerment and teamwork (2.4.3)
Poor payCompare pay with Goldcrust's and other local shops, and close the gapFinancial rewards (2.4.3)
Job insecurityTell staff the facts about the lease before the rumours doCommunication from the managers
UnfairnessShare the weekend shifts in turn, by a rule everyone can seeFair rotas and clear policies
Poor managementTrain the manager to plan the rota two weeks aheadTraining (2.1.3)
A pay rise does not cure a boring job: If staff say the work is dull, more money leaves the work exactly as dull. It may stop some people leaving for a while, but it does not bring back the will to do the job well.
When pay is the answer: Pay is the right answer only when pay is the cause: when the survey or the exit interviews say so, or when a rival pays more for the same job.

What Lena does, in four steps

1

Find the cause

The signs pointed to High Street; the survey pointed to recognition, dull work and no say, more than pay.

2

Match the fix

Aisha's four counter staff now rotate daily between the till, the display and ordering, and are thanked by name each Monday. They choose the new summer opening hours themselves.

3

Tell the staff

Lena shares the survey results with all 20 employees and says what she will change. A survey that is never answered teaches staff not to bother next time.

4

Measure again

Three months later she checks the same numbers. High Street's sick days and late starts are falling, and she repeats the survey in the spring.

The same four steps work in any business, from a bakery to a car factory: find the cause, match the fix, tell the staff, and measure again.

How this comes up: A case describes a business whose staff are unhappy, often with a table of results from an employee survey.

What you are asked

  • Comment on the survey, for two marks.
  • Explain one change to human resource management that would improve the staff's motivation, also for two. The case names what the staff complain about, such as a boring job.

The pattern for commenting on a survey

  • Make one comment. Either on how the survey was done (the response rate, the number of questions, the answer choices, who was left out) or on what it shows.
  • Prove it with a number. Take at least one figure from the table, the response rate included, that backs the comment.
  • Keep it to the survey in the case. Say what it means for this business, not what surveys are in general.
The trap: a comment with no figure: "Staff are unhappy, so Lena should act" is a comment. "8 of 11 staff are unhappy with how they are thanked" is a comment proved from the table.

The table is there to be used. Quote a number, and make sure it is the number that supports what you said.
IB-style questionComment[2 marks]

Comment on the employee survey carried out by Lena.

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two examples of non-financial rewards. [2 marks]

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