Key Idea: Motivation is about why employees want to work well. Businesses use both financial and non-financial methods to motivate staff, and IB exams often test which method or theory best fits a specific situation.
Core structure (memorise)
- Motivation = willingness to work well
- Financial rewards = pay, bonus, commission, profit sharing
- Non-financial rewards = recognition, job enrichment, empowerment
- Maslow = needs from basic to higher level
- Herzberg = motivators vs hygiene factors
- Different workers are motivated by different things
💰 Financial motivation: Salary, wages, bonus, commission. Easy to understand. Can improve effort quickly. Useful when money is a key concern.
🌟 Non-financial motivation: Recognition, autonomy, teamwork, job enrichment. Can create stronger long-term motivation. Improves satisfaction and engagement. Often linked to meaningful work.
High-yield facts examiners expect
- Maslow: lower needs should be met before higher needs motivate
- Herzberg: hygiene factors prevent dissatisfaction, but do not create true motivation
- Pay is a hygiene factor in Herzberg’s theory
- Job enrichment is usually stronger than job enlargement
- Financial rewards may motivate in the short term
- Non-financial rewards are often better for long-term motivation
✅ Methods that usually motivate: Recognition and praise. Responsibility and trust. Interesting work. Career growth. Fair pay and good conditions.
⚠️ Common causes of demotivation: Poor management. Boring repetitive work. No recognition. Unfair pay or treatment. No progression or development.
Do not just name a motivation theory. Apply it. Examiners want to see how the theory explains the business situation in the question.
Example: Job enrichment can increase motivation because employees get more responsibility and more interesting tasks. This can make work feel more meaningful, so staff may become more engaged and productive.
Important: Explain one motivation theory, compare financial and non-financial rewards, explain how a business could improve motivation, or analyse why a decision may demotivate staff.
- Identify whether the question is about a theory, a reward method or demotivation
- Use the correct motivation term clearly
- Explain how the method or theory works
- Apply it to the business in the question
- Show the likely impact on motivation, productivity or staff turnover