Motivation within an innovative work environment
An ARM case study

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Page 4: Taylor (scientific management) and Herzberg (2-factor theory)

Taylor and scientific management

Frederick Taylor was involved with scientific management. Taylor specifically linked pay to rates of output. His theories illustrated that monetary reward was the most important motivating factor. However, his view of motivation applied to people who worked within narrow job confines, such as on a production line. It was all about a fair day’s pay for a fair day’s work.


Taylor’s view has limited relevance at ARM. His approach was narrow and simply related pay to output. ARM is not about more pay bringing more output. Creating innovative products in teams needs people to genuinely want to do whatever it takes to make a product work. This is not just a product of time but of how people feel, how they communicate and how they work together to achieve a common vision.

ARM employees are intrinsically motivated. They are expected to understand a range of different fields. They are also expected to be flexible and creative using advancements in technology to deliver changes to the complex environment in which the business operates in. For example, various forms of communication, including video conferencing help employees from different parts of the world to share their ideas in a way that engages them in everyday problems and issues.

Herzberg and 2-factor theory

Henry Herzberg’s theory of motivation is of more relevance to ARM employees. His theory is sometimes called the two-factor theory. He looked at motivators and hygiene factors. Hygiene factors, often referred to as ‘dissatisfiers’, are elements in the work environment that could make employees unhappy. For example, if an organisation has an autocratic management style this may have a negative impact on motivation. Motivators, often referred to as ‘satisfiers’, are aspects of the work environment that provide employees with job satisfaction. For example, recognition for effort and performance. Satisfied employees then become more productive.

ARM uses employee engagement as a key tool in motivation. This is a satisfier as employees develop a genuine attachment to the teams in which they work. A variety of other satisfiers are used at ARM,such as employees receiving shares in the company as well as bonuses based on how well the business as a whole is doing. The aim is for employees to act and feel like owners of the business. These also help them to be recognised for their contribution.

ARM | Motivation within an innovative work environment