Taylor's Theory
Business: BTEC Level 3 National Extended Diploma, topic 5.2.2
Taylor's Theory on Motivation
Taylor suggests that to motivate employees they should be paid based on the amount of output they have produced.
Taylor's approach
- Taylor called his approach piece-rate pay and found that if employees were paid more for being more productive, they would, in turn, become more motivated and engaged with their job as there was an opportunity for employees to increase the amount they earnt.
- For example, a factory may pay its employees £2 for every complete unit produced, or £1 for every item added to a product on an assembly line.
Advantages of Taylor's theory
- Taylor’s theory may improve productivity which means a business can reduce its costs by employing fewer employees.
Disadvantages of Taylor's theory
- Taylor’s theory means that employees may rush during the production process leading to mistakes and errors.
- Taylor’s theory means that employees may become bored with completing the same task over and over again.
Test yourself on Taylor's Theory
What is the advantage of Taylor's theory?