2.1 Motivating workers Flashcards
Why do people work?
- Have a better standard of living
- Be secure
- Gain experience and status
- Have job satisfaction
What is ‘motivation’?
The reasons why people work and ways business can encourage their staff.
What does Taylor’s motivational theory suggest?
- Money = main motivator
- Scientific management - work is broken down
- > More money paid means increase in level of productivity
- Training all workers using the same method
What does Herzberg’s motivational theory suggest?
Hygiene factors:
- factors that demotivate if not present but don’t actually motivate employees to work harder
e. g. working conditions, salary and wage
Motivators:
- factors that directly motivate employees to work harder
e. g. giving responsibility, recognition for good work, sense of achievement, opportunities for promotion
What are the different types of needs according to Maslow’s hierarchy?
- Physiological needs: basic requirements for survival
- Security needs: to be physically safe
- Social needs: to belong and have good relationships with co-workers
- Esteem needs: self-respect and to be respected by others
- Self-actualisation needs: reach your full potential and be promoted
What are ‘financial rewards’?
Cash paid to workers often used to motivate them to increase their efforts
What are the financial methods and how do they work?
- Hourly wage rate/Time rate: payment to workers based on a fixed amount for each hour worked
- Salary: fixed annual/monthly payment to certain grades and types of staffs (not based on hours worked or output)
- Piece-rate: payment according to output number produced
- Commission: pay based on the value of sales made by the staff (retail/salespeople)
- Performance-related pay: payment for reaching an agreed target
- Profit-sharing: additional payment to workers based on business’ profits
- Bonus scheme: additional reward, often paid for reaching a target
- Fringe benefits: non-cash incentives given to employees (e.g health insurance, discounts)
What are some non-financial rewards and how do they work?
- Job rotation: workers swapping round, doing a specific task for a specific time then changing again (improves boredom and flexibility)
- Job enlargement: adding tasks of a similar level to a worker’s job, helps reduce boredom
- Job enrichment: adding tasks of a higher level to a worker’s job, organised so workers able to use more of skills and abilities
Name the advantages + disadvantages of hourly wage rate / time rate.
Ads: Only pays workers for time they are at work, encourages longer hours
Disads:
Only pays workers for time they are at work, encourages longer hours
Does not link to quality or quantity of output
Name the advantages + disadvantages of salary.
Ads: Measurable, applicable, suitable to most jobs
Disads: Does not link to their efforts
Name the advantages + disadvantages of piece-rate.
Ads: Incentive for employees to produce higher output
Disads: Not quality related, lead to poor quality of work + only production jobs
Name the advantages + disadvantages of commission.
Ads: Pay is linked to value of goods
Disads: Workers are not certain about income, unreliable
Name the advantages + disadvantages of bonus scheme.
Ads: Linked to performance targets, rewards high level performance
Disads: Becomes expectation quickly, depends on profit
Name the advantages + disadvantages of fringe benefits.
Ads: Useful to make employees’ needs, motivating, make job attractive
Disads: More cost + time effective than financial rewards + admin (can be unsuitable)
Name the advantages + disadvantages of profit-sharing
Ads: Enables to see direct link between their efforts + company profits
Disads: Company loses amount of revenue + retained profit for growth
