2.4 Motivation and Demotivation

Question 1

Motivation

Answer 1

The factors that stimulate people to take certain actions

Question 2

Signs of motivation and demotivation

Answer 2

Motivation:
* higher productivity
* higher quality of good or service
* employees stay longer
* low levels of absenteeism

Demotivation:
* employees leaving
* poor customer service
* lower productivity

Question 3

what are the types of financial rewards

Answer 3

• salary
• wages - time rate
• wages - piece rate
• commission
• performance-related pay (PRP)
• profit-related pay
• employees share ownership schemes
• fringe benefits (perks)

Question 4

Types of Non-financial rewards

Answer 4

• job enrichment
• job enlargement
• job rotation
• empowerment
• opportunity to make a difference
• teamwork

Question 5

types of training

Answer 5

• induction training
• on-the-job training
• off-the-job training

Question 6

salary

Answer 6

fixed annual income that is usually paid monthly

Question 7

Wage - time rate

Answer 7

Employees are paid per period of time worked

Question 8

Wage - Piece rate

Answer 8

Employees are paid per unit of production

Question 9

pros and cons of piece rate

Answer 9

Pros:
* rewards hard workers
* encourages higher productivity

Cons:
* encourages speed over quality
* less income stability for employees

Question 10

Commission

Answer 10

An amount of money paid to an employee as a fee or percentage for a task or for bringing new business

Question 11

Commission pros and cons

Answer 11

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

Question 12

Performance-related pay

Answer 12

employees are rewarded financially according to meeting certain objectives at work

Question 13

PRP pros and cons

Answer 13

Pros:
* rewards higher performers
* can identigy lower performers

Cons:
* performance might be difficult to measure
* might worsen team spirit

Question 14

Profit-related pay

Answer 14

employees are financially rewarded according to the financial performance of the business

Question 15

Employees share ownership schemes

Answer 15

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

Question 16

Profit related pay and share ownership pros and cons

Answer 16

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

Question 17

Fringe benefits (perks)

Answer 17

non-cash forms of financial rewards
e.g. company car, low interest loans

Question 18

non-financial rewards

Answer 18

methods of motivating employees that do not involve monetary payments

Question 19

Job enrichment

Answer 19

changing an employee’s job to include more challenging and demanding tasks
e.g. adding new, more complex tasks

Question 20

Job enlargement

Answer 20

changing an employee’s job by adding more tasks similar to what they are already doing
e.g. adding new, similar tasks

Question 21

Job rotation

Answer 21

moving a employee to different jobs in the business at a similar level of complexity
e.g. adding new tasks in different areas

Question 22

Job enrichment pros and cons

Answer 22

Pros:
* employees can develop new skills

Cons:
* may require employee training

Question 23

job enlargement

Answer 23

Pros:
* variety of tasks

Cons:
* employee may just see it as extra work

Question 24

Empowerment

Answer 24

allowing employees some autonomy over their jobs - what they do and how they do it
laissez-faire leadership

Question 25

Empowerment Pros and Cons

Answer 25

Pros:
* Employees feel trusted - higher motivation
* development of new skills

Cons:
* training costs
* employees might not have the skills to choose best

Question 26

Purpose/opportunity to make a difference

Answer 26

The opportunity ot help the lives of other and to make a difference in the world

Question 27

Teamwork

Answer 27

the job is organized so that groups of workers can work together

Question 28

training

Answer 28

procedure where employees gain knowledge and skills relevant to their role in the business
professional development

Question 29

Induction Training

Answer 29

The training received when employees start a new job

Question 30

On-the-job training

Answer 30

training of employees that takes place at the workplace

Question 31

Off-the-job training

Answer 31

training of employees that takes place away from the workplace

Question 32

Pros and cons of training

Answer 32

Pros:
* employees feel valued - higher motivation
* development of new skills and knowledge
* employees become more productive

Cons:
* training costs
* time not working to attend training
* might not be beneficial/emploee may leave

Question 33

Taylor’s Motivation theory

Answer 33

People are motivated by money
1. based on maximizing productivity by experiment with different ways to perform a task - known as scientific management
2. belief in the ‘economic man’ - man is solely motivated by money
3. payments should be linked directly to output through a piece rate system of payment

Question 34

Maslow’s motivation theory

Answer 34

1. based on the theory that we are motivated by what we need
2. after a need has been satisfied it will no longer motivate us
3. once all needs on a level have been met, we will start to aim for needs at the next level

Question 35

Maslow’s hierarchy of needs - breakdown of the levels

Answer 35

Question 36

Hertzberg’s motivation theory

Answer 36

based on:
* motivators motivate when present
* hygiene (demotivators) demotivate when absent

Question 37

Motivating factors

Answer 37

• higher motivation when present
• psychological factors that motivate employees
• maslow - self actualization, esteem

Question 38

Hygiene factors

Answer 38

• do not motivate employees
• but demotivate if they are not met
• maslow - physiological, safety, belonging