1.4.4 motivation

Question 1

what are the financial methods of motivation?

Answer 1

• piecework
• commission
• profit sharing/bonus
• performance related pay (PRP)

Question 2

what are the noon-financial methods of motivation?

Answer 2

• delegation
• consultation and empowerment
• team working
• flexible working
• job rotation
• job enrichment and enlargement

Question 3

what is piecework?

pros and cons

Answer 3

payment based on the number of units of output produced
+ incentive to increase output
+ appropriate for production jobs and workers may work more hours for more money
- employees may ignore factors like quality
- slower workers are at a disadvantage

Question 4

what is commission?

pros and cons

Answer 4

a bonus paid an achieving a sales target
+ appropriate for sale jobs and motivates workers to sell more
+ incentive to increase sales revenue
- employees are selling rather than meeting customer needs
- temptation to pressure sells

Question 5

what is profit sharing?

pros and cons

Answer 5

employees may be paid an annual dividend based on the level of profits made by the firm
+ encourages teamwork
+ employees keep costs down
+ employees become more loyal to the firm
- depends on the profitability of the business

Question 6

what is performance related pay (PRP)?

Answer 6

a salary or bonus scheme linked to job related targets. targets and performance may be reviewed every 6 months or annually

Question 7

pros and cons of PRP?

Answer 7

+ encourages review of employee business
+ directly links employee performance with how much money they are paid
- can be expensive if a large proportion of the workforce achieves their target
- difficult to ensure PRP is fair across the organisation

Question 8

what is delegation, consultation and empowerment?

Answer 8

giving employees autonomy, authority and the power to influence key business decisions

Question 9

pros and cons of delegation, consultation and empowerment?

Answer 9

+ employees feel involved, have the ability to make their own decisions and are able to influence the business

• may slow down decision making
• some employees may not have the skills

Question 10

what is teamworking?

pros and cons

Answer 10

organising the workforce into teams to motivate them
+ helps employees connect with colleagues
+ meets employees’ social needs
- individual performance is hard to identify

Question 11

what job rotation, enrichment and enlargement?

Answer 11

encouraging employees to work across a range of roles, develop understanding of different areas of the business and develop new skills

Question 12

pros and cons of job rotation, enrichment and empowerment?

Answer 12

\+ employees are motivated through increased variety
\+ cost effective, multi-skilled workers
\+ more efficient, less repetitive
- can reduce productivity
- some employees may see it as more work
- less output and quality is reduce