2.4 Motivation and Demotivation Flashcards
Motivation
The factors that stimulate people to take certain actions
Signs of motivation and demotivation
Motivation:
* higher productivity
* higher quality of good or service
* employees stay longer
* low levels of absenteeism
Demotivation:
* employees leaving
* poor customer service
* lower productivity
what are the types of financial rewards
- salary
- wages - time rate
- wages - piece rate
- commission
- performance-related pay (PRP)
- profit-related pay
- employees share ownership schemes
- fringe benefits (perks)
Types of Non-financial rewards
- job enrichment
- job enlargement
- job rotation
- empowerment
- opportunity to make a difference
- teamwork
types of training
- induction training
- on-the-job training
- off-the-job training
salary
fixed annual income that is usually paid monthly
Wage - time rate
Employees are paid per period of time worked
Wage - Piece rate
Employees are paid per unit of production
pros and cons of piece rate
Pros:
* rewards hard workers
* encourages higher productivity
Cons:
* encourages speed over quality
* less income stability for employees
Commission
An amount of money paid to an employee as a fee or percentage for a task or for bringing new business
Commission pros and cons
Pros:
* encourages employees to sell more
* rewards hard work and selling skill
* helps business control expenses
Cons:
* aggressive selling techniques
* might worsen team spirit
* less income stability for employees
Performance-related pay
employees are rewarded financially according to meeting certain objectives at work
PRP pros and cons
Pros:
* rewards higher performers
* can identigy lower performers
Cons:
* performance might be difficult to measure
* might worsen team spirit
Profit-related pay
employees are financially rewarded according to the financial performance of the business
Employees share ownership schemes
Employees are financially rewarded by being given shares or share options in the business
share options mean the shares can be bought at a certain price
Profit related pay and share ownership pros and cons
Pros:
* employees feel connected to the success of the business
* encourages employees to stay longer to receive benefits
Cons:
* dilutes ownership of the business
* doesn’t identify individual high performances
Fringe benefits (perks)
non-cash forms of financial rewards
e.g. company car, low interest loans
non-financial rewards
methods of motivating employees that do not involve monetary payments
Job enrichment
changing an employee’s job to include more challenging and demanding tasks
e.g. adding new, more complex tasks
Job enlargement
changing an employee’s job by adding more tasks similar to what they are already doing
e.g. adding new, similar tasks
Job rotation
moving a employee to different jobs in the business at a similar level of complexity
e.g. adding new tasks in different areas
Job enrichment pros and cons
Pros:
* employees can develop new skills
Cons:
* may require employee training
job enlargement
Pros:
* variety of tasks
Cons:
* employee may just see it as extra work
Empowerment
allowing employees some autonomy over their jobs - what they do and how they do it
laissez-faire leadership
Empowerment Pros and Cons
Pros:
* Employees feel trusted - higher motivation
* development of new skills
Cons:
* training costs
* employees might not have the skills to choose best
Purpose/opportunity to make a difference
The opportunity ot help the lives of other and to make a difference in the world