2.4 Motivation

Question 1

Financial Rewards

Answer 1

Salary
Wages
Piece Rate Pay
Commission
Fringe benefits

Question 2

Salary

Answer 2

A fixed annual amount of earnings, paid monthly and in fixed instalments. Workers do not get paid overtime e.g. teachers

Question 3

Wages

Answer 3

Type of financial reward payment system based on time or output. Time rate is usually hourly e.g. restaurant or bar workers. Workers may get higher hourly rates for overtime.

Question 4

Piece Rate Pay

Answer 4

Is a type of wage based on output produced eg. exam marking

Question 5

Commission

Answer 5

Workers earn a percentage of the sales of each good or service that they are responsible for eg. estate agents

Question 6

Fringe Benefits

Answer 6

Financial benefits of a job in excess of the basic pay eg. Company car

Question 7

Non-financial rewards

Answer 7

Job rotation
Job enlargement
Job enrichment
Empowerment

Question 8

Job Rotation

Answer 8

Involves workers switching between jobs for a period of time eg. supermarket worker

Question 9

Job Enrichment

Answer 9

Enhances the experiences of workers, by giving them a wider range of tasks, more challenge or more responsibilities

Question 10

Job Enlargement

Answer 10

When more tasks or activities are added to a worker’s job (permanent) description. These tasks are usually of a similar level of skill.

Question 11

Empowerment

Answer 11

Delegation of decision-making power to workers in order to boost morale. It gives them more autonomy and authority.

Question 12

Taylor’s Scientific Management Theory

Answer 12

Advocated a command and control approach to management and believed in monitoring and measuring productivity and efficiency

Argued the main motivation for employees was money and that more productive workers should thus receive higher financial rewards

Eg. piece rate pay

Question 13

Herzberg’s two-factor theory

Answer 13

Herzberg argued that in order to create motivation, it was essential to first satisfy the factors that cause dissatisfaction - Hygiene factors
Improving these simply prevents dissatisfaction but they do not boost morale or motivation on their own
Eg. Relationships, Working conditions, Salary

Question 14

Adams equity theory

Answer 14

Fair balance to be struck between an employee’s “inputs” (hard work, skill level, acceptance, enthusiasm, and so on) and their “outputs” (salary, benefits, intangibles such as recognition, and more).

Suggests that financial rewards alone do not determine motivation as employees compare the ratio of their input (effort) to output (rewards) and compare this with colleagues

Question 15

Maslow’s Hierarchy of needs

Answer 15

The model suggests that once a need is satisfied, it will no longer motivate and they will only gain additional motivation from achieving a higher need.
Not possible to meet a higher level until all levels below it are met

1. Self actualization
2. Esteem
3. Love and belonging
4. Safety needs
5. Physiological needs

Question 16

Pink’s Theory:

Answer 16

Pink argues that motivation is largely intrinsic and that motivating using extrinsic factors such as financial rewards no longer works.

Based on 3 innate characteristics

Autonomy
Mastery
Purpose