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IGCSE · Cambridge (CIE) · 0986

Explain motivation and motivational theories

Relate why people work and the benefits of motivation to Maslow, Taylor and Herzberg.

Section 2 · People in business

People in business · Cambridge IGCSE (9–1) Business Studies 0986 · 2.1
Exam scope and assessment notes

Cambridge IGCSE (9–1) Business Studies 0986, 2026 syllabus, Version 2. This is the separate 9–1 legacy route; 0774 replaces it for first assessment June 2027. Candidates are not assessed on constructing income statements or statements of financial position, nor on price-elasticity or exchange-rate calculations. Simple cash-flow forecast construction is assessed. Written practice is self-checked, not an official Cambridge grade; timed-paper evidence and human subject-teacher review remain outstanding.

Before you begin

  • No previous business study is assumed. Read each scenario for the people affected, the business objective and any limits on time, cost or information.

Work on paper. Try each question before revealing help, and explain why your method works.

Quick readiness check

Which is one syllabus benefit of a well-motivated workforce?

What you will learn

  • Explain why people work
  • Describe benefits of a well-motivated workforce
  • Apply the three syllabus theories cautiously

Motivation affects how work is approached

People may work for income, security, social contact, a sense of achievement or opportunities to develop. Different employees can value different outcomes, and priorities can change.

The syllabus links a well-motivated workforce to improved labour productivity, reduced absenteeism, lower labour turnover and greater willingness to accept change or new methods of working.

Use theories as explanatory models

Maslow's hierarchy describes needs often represented from basic physiological and safety needs through social belonging, esteem and self-actualisation. It can help a manager consider what an employee may value; it does not prove every person follows the same fixed sequence.

Taylor emphasised financial incentives and efficiency. Herzberg distinguished hygiene factors, which can prevent dissatisfaction, from motivators such as achievement or responsibility. Apply each theory to the case and recognise individual differences rather than treating it as a guaranteed formula.

Pause and explain

Which theory is associated with hygiene factors and motivators?

Put the idea to work

Worked example

A skilled employee says pay is fair but work feels repetitive and offers no responsibility. Which theory may help explain the concern?

Show the worked solution
  1. Fair pay may address a hygiene factor in Herzberg's theory.
  2. Repetitive work and low responsibility concern the content of the job.
  3. Achievement or responsibility may act as motivators.

Answer Herzberg's theory may help: fair pay can reduce dissatisfaction, while limited responsibility and achievement may leave the employee without motivators. The manager should check what the employee values.

Try a topic test

Choose Easy, Normal or Difficult. Save your answers and open worked review after finishing.

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From guided practice to a new situation

Write your answer and reasoning first. Use a hint only if you are stuck. The model solution is for self-checking; your written work is not automatically marked.

1 · Guided

A firm introduces a new system and staff resist because they are worried about job security. Explain one way motivation may affect change and suggest a response.

Give me a hint

Connect security concerns with willingness to accept a new method.

Compare my reasoning
  1. The syllabus links motivation to willingness to accept change.
  2. Job-security concerns may lower willingness.
  3. Explain the change and provide training or support.

A well-motivated workforce may be more willing to accept new methods, but job-security worries can reduce that willingness. The firm should explain the purpose of the system and offer relevant training, while addressing genuine employment concerns honestly.

Look for these in your work

  • Syllabus benefit applied
  • Cause linked
  • Practical response proposed
2 · Independent

An employee values teamwork and recognition more than a small piece-rate increase. Use Maslow or Herzberg to explain why one non-financial response may fit better.

Give me a hint

Match the employee's stated priorities to a theory concept.

Compare my reasoning
  1. Teamwork can meet social needs in Maslow's model.
  2. Recognition can be a Herzberg motivator.
  3. The response should still be checked with the employee.

Recognition may fit Herzberg's motivators, while team belonging may relate to Maslow's social needs. A recognition or collaborative role could fit better than piece rate, but the manager should check the employee's preferences.

Look for these in your work

  • Theory applied accurately
  • Priority used
  • Individual variation acknowledged
3 · Transfer

A manager claims a bonus will reduce absenteeism for every employee. Explain why the claim is too strong and suggest two pieces of evidence to monitor.

Give me a hint

Motivation differs and outcomes can have several causes.

Compare my reasoning
  1. Different employees value different rewards.
  2. Absence can reflect health, schedules or other factors.
  3. Compare absence rates and employee feedback over time.

A bonus may motivate some staff but cannot guarantee lower absenteeism for everyone; absence has other causes. Monitor absence trends and employee feedback, and compare them with the cost and other changes in the workplace.

Look for these in your work

  • Universal claim qualified
  • Alternative causes included
  • Measures selected

Common mistakes

  • Assuming everyone is motivated by money alone
  • Treating Maslow's sequence as a universal law
  • Calling every workplace factor a motivator under Herzberg
Recall without your notes

What can you explain now?

Which is one syllabus benefit of a well-motivated workforce?

Compare with the explanation

Lower labour turnover

The syllabus lists lower labour turnover as a benefit.

After trying it yourself, choose your next review. This is your self-assessment.

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Make it stick

What outcomes can a well-motivated workforce support, according to the syllabus?

If you needed the solution, close it and solve the problem again from a blank page. A correct answer is stronger when you can explain the reason for each step.

Keep learning Business Studies (9-1)

Course scope and assessment

Ninety-eight original lessons map all 63 sections in the 2026 Version 2 syllabus, with worked examples and guided, independent and transfer practice. Cambridge states that 0986 is otherwise the same in subject content as 0450 but is graded 9–1. In June and November, entry is available in Administrative Zone 3 and to centres in Oman and UAE; confirm eligibility with Cambridge and your centre. Candidates cannot combine 0986 with 0450 or O Level 7115 in the same series. For 2027 first assessment, the code changes to 0774. Simple cash-flow forecast construction is assessed; construction of income statements and statements of financial position, price-elasticity calculations and exchange-rate calculations are excluded. Cambridge lists past papers and resources on the 0450 page for use with 0986. Full timed-paper practice, exam-grade evidence and human subject-teacher review remain outstanding; learner practice is self-checked and is not an official Cambridge grade.

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