2.4 - Motivation and Demotivation

Question 1

360-degree appraisal

Answer 1

360-degree appraisal involves collecting evidence about the
appraisee’s job performance from a range of stakeholders who
work with the employee.

Question 2

Aquired needs theory

Answer 2

Acquired needs theory, coined by D. McClelland, suggests that
three types of needs must be satisfied to boost motivation: the
need for achievement, power and affiliation.

Question 3

Appraisal

Answer 3

An appraisal is the formal assessment of an employee’s
performance in fulfilling his or her job based on the tasks and
responsibilities set out in their job description.

Question 4

Commission

Answer 4

Commission is a type of financial reward that pays workers a
certain percentage of the sale of each good or service that they
are responsible for.

Question 5

Differentiated piecework

Answer 5

Differentiated piecework is an incentive scheme that rewards more productive workers who exceed a pre-determined benchmark.

Question 6

Division of labour

Answer 6

Division of labour is the process of breaking down different aspects of a job or task and assigning different people to each particular part of the work in order to improve efficiency and output.

Question 7

Empowerment

Answer 7

Empowerment is a non-financial motivator that involves developing the potential of workers or teams by granting them
the authority to make decisions and to execute their own ideas
to solve business problems.

Question 8

Share ownership schemes

Answer 8

Employee share ownership schemes are a type of payment
system that rewards staff by giving them shares in the company
or by selling the shares at a discounted price.

Question 9

Equity theory

Answer 9

Equity theory is J.S. Adams’ theory of motivation, which
suggests that people make comparisons of perceived fairness in
the workplace based on the ratio of their input (effort) to output
(rewards).

Question 10

Expectancy theory

Answer 10

Expectancy theory is V. Vroom’s theory that assumes that
people behave in a certain way in exchange for rewards based
on their conscious expectations. He argued that people only put
in the effort to do a job if they expect that their role will help to
achieve the required result.

Question 10

Esteem needs

Answer 10

Esteem needs in Maslow’s hierarchy of needs refers to the
desire of people to feel respected, having value and having self-
respect.

Question 11

External recruitment

Answer 11

External recruitment is the process of hiring people from
outside the business.

Question 11

Formative appraisal

Answer 11

Formative appraisal is the planned and ongoing process in
which data and evidence are used to inform employees about
what to do to improve their work practices.

Question 12

Fringe payments

Answer 12

Fringe payments are the financial rewards paid in addition to
a worker’s wages or salaries, such as subsidised meals, housing
allowance and pension fund contributions.

Question 13

Herzberg’s motivation-hygiene theory

Answer 13

Herzberg’s motivation-hygiene theory looked at factors that
must be met in order to prevent dissatisfaction and the factors
that actually motivate employees.

Question 14

Hierarchy of needs

Answer 14

Hierarchy of needs refers to A. Maslow’s theory of motivation,
that people are motivated by different levels of needs:
physiological, safety, social, esteem and self-actualization.

Question 15

Hygiene factors

Answer 15

Hygiene factors are parts of a job that F. Herzberg referred
to that do not increase job satisfaction but help to remove
dissatisfaction, such as reasonable wages and working
conditions.

Question 16

Internal recruitment

Answer 16

Internal recruitment involves hiring people who already work
for the business to fill a vacant post.

Question 17

Induction training

Answer 17

Induction training is a type of training aimed at introducing
new employees to the organization.

Question 18

Job enrichment

Answer 18

Job enrichment involves giving workers more responsibilities
and more challenging jobs.

Question 18

Job enlargement

Answer 18

Job enlargement refers to increasing the number of tasks that
an employee performs, thereby reducing or eliminating the
monotony of repetitive tasks.

Question 19

Job rotation

Answer 19

Job rotation is a form of job enlargement whereby workers are
given different tasks, but of the same level of complexity, to help
reduce the problems associated with repetitive tasks.

Question 19

Labour turnover

Answer 19

Labour turnover measures the percentage of the workforce
that leaves the organization in a given time period, usually one
year.

Question 20

Motivation

Answer 20

Motivation refers to the desire, effort and passion to achieve
something. It is the willingness to complete a task or job with
intent and purpose.

Question 20

Maslow's hierarchy of needs

Answer 20

Maslow’s hierarchy of needs outlines five levels of needs, from satisfying physiological needs to self-actualization. Lower order needs must be met before people progress up the hierarchy.

Question 21

Movement

Answer 21

Movement, according to F. Herzberg, occurs when people do something because they need to, so they feel obliged to do so.

Question 21

Motivators

Answer 21

Motivators are the factors that F. Herzberg considered to increase job satisfaction and motivation levels, such as praise and recognition.

Question 22

National minimum wage

Answer 22

A national minimum wage is the lowest hourly pay that all firms must remunerate their workers, as stipulated by the government.

Question 23

Non-financial rewards

Answer 23

Non-financial rewards are non-monetary factors that motivate people by offering psychological and intangible benefits, i.e. factors not directly linked to money.

Question 23

Off the job training

Answer 23

Off the job training refers to training conducted off-site, such as at a tertiary college or hotel conference centre.

Question 23

On the job training

Answer 23

On the job training refers to training carried out whilst at the workplace. For example, the training can be delivered by a manager, supervisor or other specialist.

Question 24

Performance-related pay (PRP)

Answer 24

Performance-related pay (PRP) is a payment system that rewards people who meet set targets over a period of time. The targets can be on an individual, team or organizational basis.

Question 25

Piece rate

Answer 25

Piece rate is a payment system that rewards people based on the amount that they produce or sell. Tus, their pay is directly linked to their level of productivity.

Question 25

Profit-related pay

Answer 25

Profit-related pay is a type of financial reward system which remunerates workers a certain percentage or amount of the annual profits that the firm earns.

Question 25

Physiological needs / Basic needs

Answer 25

Physiological needs (or basic needs) in Maslow’s hierarchy of needs are the requirements for human survival, including food, water, shelter and warmth.

Question 25

Productivity

Answer 25

Productivity measures the level of output per worker. It is an indicator of motivation as employees tend to be more productive with increased levels of motivation.

Question 26

Purpose

Answer 26

Purpose, as a non-financial reward, refers to the opportunity to make a difference.

Question 26

Remuneration

Answer 26

Remuneration means the overall compensation package, such as salaries, commission, profit-related pay, performance-related pay, share ownership schemes and fringe benefits.

Question 27

Scientific management

Answer 27

Scientific management, developed by F.W. Taylor, suggests that specialisation and division of labour help to increase the level of productivity. Tis is especially the case if pay is linked to a piece-rate reward system.

Question 27

Safety needs

Answer 27

Safety needs (or security needs) in Maslow’s hierarchy of needs are the requirements that make people feel safe, such as job security.

Question 28

Salary

Answer 28

Salary is a type of financial payment that rewards workers a fixed annual amount of money, usually paid per month.

Question 28

Self-appraisal

Answer 28

Self-appraisal involves employees appraising themselves based on a set of pre-determined criteria.

Question 28

Self-actualization

Answer 28

Self-actualization in Maslow’s hierarchy of needs refers to the highest level of needs, which occurs when people become the very best that they can be and fulfil their potential.

Question 28

Self-determination theory

Answer 28

Self-determination theory, coined by E. Deci and R. Ryan, describes three core requirements that facilitate growth and motivation in people: autonomy, competence and relatedness.

Question 29

Social needs

Answer 29

Social needs (or love and belonging needs) in Maslow’s hierarchy of needs refers to the requirement to be accepted by others.

Question 30

Teamwork

Answer 30

Teamwork is a form of non-financial motivation, which involves the combined efforts of a group of workers to achieve organizational goals.

Question 30

Summative appraisal

Answer 30

A summative appraisal is a written description of an employee’s performance at work, summarizing what s/he has done and achieved during given period of time, usually a year.

Question 31

Time rate

Answer 31

Time rate is a payment system that rewards staff for the time (rather than output) that they put into work. It is expressed per period of time, e.g. $10 per hour or $5,000 per month.

Question 32

Training

Answer 32

Training is the process of providing opportunities for workers to learn and acquire employment-related skills and knowledge.

Question 33

Wages

Answer 33

Wages are a type of financial reward payment system based on time or output. Wages are paid as time rate (hours) or piece rate (output).