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Motivation Within an Innovative Environment

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Motivation within an innovative work environment

Curriculum Topics • Motivation • Maslow (hierarchy of needs) • Taylor (scientific management) and Herzberg (2-factor theory) • Mayo (human relations approach)

Introduction
Individuals work for many different reasons. Financial rewards are frequently a key factor in influencing why individuals undertake certain jobs. However, money is not everything. Employees want to enjoy their work, be challenged by it and achieve personal fulfilment. For many people, their careers are on-going learning experiences. This is known as intrinsic motivation. When individuals are intrinsically motivated, they are interested in their work. Put simply, it creates enjoyment whilst enabling them to achieve and contribute to desired goals. However, individuals also need extrinsic motivation. This is motivation arising from factors outside the immediate work that an individual undertakes. For example, this might include pay, conditions, grades and promotional opportunities. This case study will analyse motivational theory in the context of the employees of ARM Holdings PLC. It illustrates that, although extrinsic motivation is a very important element in motivating employees, it is really intrinsic motivation that engages individuals and contributes to company performance. ARM is the world’s leading semiconductor intellectual property supplier. The ARM business model involves the design and licensing of intellectual property in the field of semiconductor chips. ARM was founded in 1990 and now has offices around the world. ARM’s main technology is its microprocessor which is at

the ‘brain’ of most modern gadgets. More than 8 billion ARM processors will be shipped in 2011 by its partners. Technology from ARM is used in 95% of the world’s mobile phone handsets and in over a quarter of all electronic devices which include virtually all

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