2.1 Motivating employees Flashcards
What is motivation?
Motivation is the reason or drive that makes workers behave in certain ways to achieve business goals.
What are the benefits of a well-motivated workforce?
Improved productivity, lower absenteeism, lower labour turnover, better-quality work.
What is labour productivity?
The output produced per worker.
What is absenteeism?
When workers do not attend work without a good reason.
What is labour turnover?
The rate at which workers leave a business.
What is Maslow’s hierarchy of needs?
A theory that states humans are motivated by five levels of needs: physiological, safety, social, esteem, and self-actualization.
What is Taylor’s theory of motivation?
Taylor believed money is the main motivator and introduced the piece-rate system to increase worker output.
What is Herzberg’s Two-Factor Theory?
A theory that says motivation is influenced by hygiene factors (to avoid dissatisfaction) and motivators (to increase effort).
Advantages of Maslow’s hierarchy of needs:
Managers can use it to meet workers’ different needs
Helps set goals and objectives
Explains different types of motivation (not just money)
Disadvantages of Maslow’s hierarchy of needs:
Hard to know which level a worker is on
Doesn’t include money as a motivator
Self-actualisation is hard to achieve
Not all needs are always relevant
Advantages of Taylor’s theory:
Increases productivity by rewarding output
Helps businesses reduce waste and save time
Disadvantages of Taylor’s theory:
Too simple – money isn’t the only motivator
Boring, repetitive tasks reduce satisfaction
Hard to measure output in some jobs
Advantages of Herzberg’s theory:
Separates what causes satisfaction and dissatisfaction
Helps create a more motivating work environment
Can improve employee engagement
Disadvantages of Herzberg’s theory:
Not all workers are motivated by the same things
Some hygiene factors are costly
Can be hard to measure or apply practically
What is time rate?
Pay based on the number of hours worked.
Advantages of time rate:
Workers are paid fairly for time given
Easy to calculate wages
Disadvantages of time rate:
Doesn’t reward productivity
Workers may work slowly and still get paid the same
What is salary?
Fixed yearly pay given in equal monthly parts.
Advantages of salary:
Encourages job stability
No need to clock in/out
Predictable income
Disadvantages of salary:
Not linked to performance
No extra pay for overtime
What is piece rate?
Pay based on number of items made.
Advantages of piece rate:
Encourages high output
Workers are rewarded directly for their effort
Disadvantages of piece rate:
Quality may suffer
Unfair if machines/tools vary
Stressful if output is hard to measure
What is commission?
Pay based on value of sales made.
Advantages of commission:
Encourages sales effort
Workers are rewarded based on performance
Disadvantages of commission:
Uncertain income
May pressure workers to oversell
Can cause competition between workers
What is a bonus scheme?
Extra payment for achieving a target.
Advantages of bonus scheme:
Encourages goal achievement
Links reward to performance
Disadvantages of bonus scheme:
Demotivating if target is unrealistic
Can cause jealousy among workers
What are fringe benefits?
Non-cash rewards like company car or health insurance.
Advantages of fringe benefits:
Help attract and retain staff
Make workers feel valued
Improves status
Disadvantages of fringe benefits:
Not linked to performance
Costly to the business
May cause jealousy
What is profit sharing?
A share of the business’s profit is paid to employees.
Advantages of profit sharing
Encourages teamwork
Motivates staff to help the business succeed
Disadvantages of profit sharing:
Less profit available for reinvestment
May reduce dividends for shareholders
Unfair if not all workers contribute equally
What is job rotation?
Moving workers between tasks to reduce boredom.
Advantages of job rotation:
Adds variety
Increases skills
Reduces boredom
Disadvantages of job rotation:
Can be disruptive
Some workers prefer routine
Takes time to train for new tasks
What is job enlargement?
Giving more tasks to a worker to add variety.
Advantages of job enlargement:
Makes jobs more interesting
Develops worker skills
Disadvantages of job enlargement:
Can overwhelm staff
Not always motivating if tasks are repetitive
What is job enrichment?
Giving workers more challenging tasks to use their full abilities.
Advantages of job enrichment:
Makes work more satisfying
Helps workers grow and learn
Increases motivation
Disadvantages of job enrichment:
Some workers may feel stressed
Requires training
Hard to apply in all jobs
What is job redesign?
Changing a job to make it more interesting or challenging.
Advantages of job redesign:
Increases motivation
Encourages new skills
May improve performance
Disadvantages of job redesign:
Costly
Not all jobs can be redesigned easily
What are quality circles?
Small groups of workers who meet to solve problems and suggest improvements.
Advantages of quality circles:
Improves teamwork
Involves workers in decisions
Can improve efficiency
Disadvantages of quality circles:
Takes time
Needs training
Ideas may not be used
What is team working?
Groups of employees work together to complete a task.
Advantages of team working:
Builds cooperation
Shares skills and ideas
More job satisfaction
Disadvantages of team working:
Conflict may arise
Some workers prefer working alone
Not all teams work well
What is delegation?
Giving a task to a lower-level worker.
Advantages of delegation:
Builds trust
Frees up managers
Develops workers’ skills
Disadvantages of delegation:
Tasks may be done poorly
Workers may feel pressured
Manager loses some control
When is financial motivation most effective?
When workers are in lower-skilled jobs or are motivated by money (e.g. factory workers, salespeople).
When is non-financial motivation better?
When employees are skilled, creative, or value recognition, variety, and responsibility (e.g. designers, teachers, managers).
Why would a business use both financial and non-financial motivators?
Because different employees are motivated by different things, and a mix keeps the whole workforce motivated.
What motivation method would suit a supermarket cashier?
Time rate or piece rate (financial), with job rotation or team working (non-financial).
What motivation method would suit a salesperson?
Commission or bonuses to reward sales.
What motivation method would suit a software developer?
Job enrichment, job redesign, and fringe benefits like flexible hours or remote work.
What motivation method would suit factory workers?
Piece rate or bonuses, possibly job rotation to reduce boredom.
Why might a business prefer non-financial motivation over financial?
It’s cheaper long-term
Builds loyalty and teamwork
Improves job satisfaction
Reduces dependence on money as a motivator
Why can relying only on financial motivation be risky?
Workers may only work for money
Can increase costs
May not create long-term loyalty
Might ignore other needs like recognition and variety
What happens when workers are not motivated?
Lower productivity
Higher absenteeism
More mistakes
High labour turnover
Poor customer service
