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 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 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
What is time-rate system of payment?
pay based on the number of hours worked. Although output may increase, it doesn’t mean that workers will work sincerely use the time to produce more- they may simply waste time on very few output since their pay is based only on how long they work. The productive and unproductive worker will get paid the same amount, irrespective of their output.
What is piece-rate system of payment?
pay based on the no. of output produced. Same as time-rate, this doesn’t ensure that quality output is produced. Thus, efficient workers may feel demotivated as they’re getting the same pay as inefficient workers, despite their efficiency.
What is commision?
paid to salesperson, based on a percentage of sales they’ve made. The higher the sales, the more the pay. Although this will encourage salespersons to sell more products and increase profits, it can be very stressful for them because no sales made means no pay at all.
What are fringe benefits?
Fringe benefits are non-financial rewards given to employees:
Company vehicle/car Free healthcare Children’s education fees paid for Free accommodation Free holidays/trips Discounts on the firm’s products
What is Profit-Sharing?
a scheme whereby a proportion of the company’s profits is distributed to workers. Workers will be motivated to work better so that a higher profit is made.
What is performance-related pay?
paid based on performance. An appraisal (assessing the effectiveness of an employee by senior management through interviews, observations, comments from colleagues etc) is used to measure this performance and a pay is given based on this.
