List and explain 2 theories of motivation, and give an example of how they can be applied in practice.

1.      One theory of motivation is that suggested by Taylor, which asserts that employees are not motivated by anything but their remuneration. This can be applied through the introduction of a piece rate remuneration scheme, wherein the employees are paid proportionate to the amount of product that they produce. This theory is mostly used by autocratic leaders and can lead to high labour turnover, poor employment reputation, and poor performance in higher skilled jobs, particularly those requiring creativity. As such it has mostly fallen out of fashion. 2.      Another theory of motivation is Herzbergs two factor theory. This suggests that there are both motivating factors, and hygiene factors. Hygiene factors are those which don’t actually motivate employees, but their absence would demotivate employees. These include things like remuneration, workplace conditions, and job security. Motivating factors include achievement, recognition, advancement and growth. Remuneration is a slightly controversial hygiene factor, as it does have short term motivating effects, when increased. However, this does not last, and is thought to be due to the recognition that they deserved higher remuneration. This can be applied in a business through ensuring that all the hygiene factors are present, to prevent demotivation, and making sure that they employees feel that you value their skills and knowledge, to motivate them, perhaps through adopting a democratic leadership style, and consulting them for their knowledge and experience, when making important decisions. In this way they will feel that they have a stake in the company, so will be more loyal, and also more motivated.