1.4.4 Motivation in practice Flashcards
What is piecework?
1
- Paying each staff a set amount of money each time they complete task
What are the benefits of piecework?
2
- Encourages ^productivity
- >Supervision (fear of not earning)
What are the drawbacks of piecework?
2
- ^Scrap lvl, if focusing on speed (>quality)
- Workers work hardest when wanting ^earning = not coincide w seasonal patterns of demand
What is commission?
1
- Paying staff a certain % of the revenue they generate, on top of low basic salary
What is a pro and con of commission?
2
- Incentivises staff to sell as much as possible
- Staff try to sell ^expensive products to maximise commission, customer dissatisfaction
What is a bonus?
1
- Paying lump sum as +reward to staff, once a yr
What is a pro and con of bonuses?
2
- Great way of offering staff valued extra thank you
- Large bonuses distort staff behaviour, to meet target
What is profit sharing?
1
- Allocate portion of annual prof to be shared as bonus among staff
What is 2 pro’s and con of profit sharing?
3
- Aligns staff goals w business goals
- Sense of involvement to staff, warmer to customers
- Hard working staff resent others w same bonus who don’t work as hard
What is performance related pay (PRP)?
1
- Reward staff who perform past a certain lvl when it is hard to quantify
What are the benefits for the business of PRP?
2
- Easier for managers to control their staff (‘carrot’)
- >Influence of collective bargaining, thus trade union
What is the main drawback of PRP?
1
- Employees feel process is biased against them
What is a consultation?
1
- Seeking staff’s opinion before making a decision
What is job enlargement?
1
- Job rotation/job enrichment
Why should delegation motivate?
1
- Staff meet Maslow’s esteem and self-actualisation needs, motivator (Herzberg)
What is job enrichment?
1
- Giving staff added responsibility/challenge by widening scope of their job
What is job rotation?
1
- Moves staff between different tasks of same lvl of complexity
What are the non financial methods of motivation?
6
- Delegation
- Consultation
- Team-working
- Flexible working
- Job enrichment
- Job rotation
What are the financial methods of motivation?
5
- Piecework
- Commission
- Bonus
- Profit-sharing
- PRP
What are the benefits of delegation?
2
- ^Morale of lower lvl managers
- Management focus on ^important activities, repetitive work passed down
What are the drawbacks of delegation?
2
- Delegated to incompetent employees
- Managers blame on subordinates = conflict
What are the benefits of team working?
3
- Workers absent = productivity not disrupted
- Innovation
- Workload shared
What are the benefits of job rotation?
2
- ^Satisfaction, >attrition
- Help identify where employees work best
What are the drawbacks of job rotation?
3
- Costly, time consuming
- Customers dissatisfied, employee making mistakes
- > Efficiency
What is a pro and con of job enrichment?
2
- Learn new skills
- Difficulty understanding new task = employee feels incompetent
