Medium2 marksMultiple Choice
Syllabus D: Leadership and managementSyllabus DMotivationHerzberg

ACCA · Question 18 · Syllabus D: Leadership and management

Section A

CapitalEdge, a high-stress investment bank, recently upgraded its office furniture, improved the cafeteria food, and increased base salaries by 5% to combat high turnover. However, analysts report they still feel unmotivated because their work is repetitive and lacks recognition. According to Herzberg's Two-Factor Theory, why did CapitalEdge's actions fail to increase motivation?

Answer options:

A.

They failed to address the physiological needs at the bottom of Maslow's hierarchy.

B.

They only improved hygiene factors, which prevent dissatisfaction but do not actively motivate.

C.

They did not link the rewards to performance, failing Vroom's expectancy theory.

D.

They improved motivating factors instead of hygiene factors.

How to approach this question

Categorize the bank's actions (furniture, food, base salary) under Herzberg's model. These are 'Hygiene factors'. Hygiene factors stop people from being unhappy, but they don't make them motivated. Motivation comes from 'Motivator factors' (recognition, the work itself).

Full Answer

B.They only improved hygiene factors, which prevent dissatisfaction but do not actively motivate.✓ Correct
Frederick Herzberg's Two-Factor Theory divides workplace factors into Hygiene Factors (salary, working conditions, company policy) and Motivators (recognition, achievement, the work itself). Improving hygiene factors only removes dissatisfaction; it does not create positive motivation. To motivate the analysts, CapitalEdge needs to address the repetitive work and lack of recognition.

Common mistakes

Assuming that higher pay is a 'Motivator' in Herzberg's specific model. Herzberg classifies base salary as a hygiene factor.

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