22 Methods of motivation at work Flashcards
Define renumeration
Money paid to employees for their work and services
Define time rate
Payment system based on the amount of time employees spend at work
Define gross pay
Pay before deduction such as tax
Define net pay
Pay after deductions
Define overtime
Rate of pay above the normal rate to compensate employees for working extra hours
Define salary
Pay, usually to non-manual workers, expressed as a yearly figure but paid monthly
When would using time rates be suitable
When it is difficult to measure output of workers
Explain one advantage of using time rates
Results in better output
Because workers may require a high level of skill, care and accuracy
Leads to avoiding rush
Therefore preventing danger and costly errors
Explain one disadvantage of using time rates
Productivity is not rewarded
Because pay is just based on time spent at work
Leads to some workers possibly being unproductive and inefficient
Therefore waste in labour costs for those who don’t do work
Define piece rate
Payment system where workers receive an amount of money for each unit produced
Explain one advantage of using piece rates
Rewards productive workers
Because those who produce more, earn more
Leads to workers being more focused and determined to finish tasks
Therefore more output created in a shorter time
Explain one disadvantage of using piece rates
Quality of output may suffer
Because workers my work too fast
Leads to possibly making mistakes
Therefore an increase in costs for the business
Define performance-related pay
Payment system designed for non-manual workers where pay increases are given if performance targets are met
When would using performance-related pay be suitable
Workers whose output is difficult to measure
Explain one advantage of performance-related pay
Motivates workers
Because they are paid more as a reward for meeting targets
Leads to workers putting more effort in working hard
Therefore better output produced
Explain one disadvantage of performance-related pay
Some workers may feel that it is unfair
Because some appraisers may be inconsistent (e.g. giving rewards to close friends)
Leads to staff feeling less motivated to put effort
Therefore decrease in quality of output
Define bonus systems
Payment in addition to basic wage for reaching targets or in recognition for service
Explain one advantage of bonus systems
Saves on labour costs
Because bonuses are only paid more if targets are met
Leads to money only being paid if it is earned
Therefore motivates employees to work hard to reach targets
Explain one disadvantage of bonus systems
Can create unrealistic expectations among employees
Because substantial bonuses can only paid when profits are high
Leads to employees feeling dissapointed if they earn bonuses for 1 year, and don’t a next year
Therefore lack of motivation to put effort
Define commision
Payment based on the value of sales, usually a percentage of sales made
When would using commisions be suitable
To reward sales staff
Explain one advantage of using commisions
Encourages employees to work harder
Because income is nothing if no sales are made
Leads to no money being wasted on employees who aren’t improving the business
Therefore saving costs
Explain one disadvantage of using commisions
It takes time to build up to livable wages
Because employees are paid based on sales
Leads to employees feeling possibly demotivated to work
Therefore less quality output produced
Explain one advantage of using promotion to motivate employees
Employees will work focus on working harder
Because they want to have a higher pay
Leads to better output and efficiency
Therefore more sales made
Explain one disadvantage of using promotion to motivate employees
Business must use internal recruitment
Because employees need opportunities to have better job roles
Leads to possible increase in failure rates as internal promotion means less outside knowledge
Therefore damaged output and efficiency
Define fringe benefits
Perks over and above the normal wage or salary
Explain one advantage of using fringe benefits
Productivity may improve
Because there is less staff absence
Leads to workers looking forward to coming to work to enjoy their perks
Therefore employees working well and all tasks being complete in time
Define job rotation
To allow employees to change jobs from time to time
Explain one advantage of using job rotation
Prevents employees from feeling bored
Because they can change jobs from time to time
Leads to being more engaged and focused at work
Therefore better efficiency and output
Explain one disadvantage of using job rotation
Training costs will rise
Because business has to train employees to do a range of different jobs
Leads to less money to be reinvested into the business to improve
Therefore a disadvantage over competitors
Define job enrichment
Way of making job more challenging and rewarding by assigning tasks that require more responsiblity and creativity
Explain one advantage of job enrichment
Makes job less boring and unfulfilling
Because employees get to do tasks that require creativity and responsiblity
Leads to employees feeling more valued
Therefore better output and labour productivity
Explain one disadvantage of job enrichment
May leave employees displeased
Because they may have extra work without resources and training
Leads to feeling unmotivated
Therefore a negative impact on labour productivity
Define autonomy
Giving workers the authority to make choices and decisions about the way they work
Explain one advantage of using autonomy
Makes employees feel more valuable
Because they are trusted to make decisions for themselves
Leads to commitment in doing tasks in the best way possible
Therefore better output and productivity
Explain one disadvantage of using autonomy
Some employees may respond negatively
Because it may seem as a way of squeezing more out of workers
Leads to feeling unmotivated to do tasks themselves
Therefore less productivity
