2.5- Part 3

Question 1

What does financial methods of motivation focus on?

Answer 1

Giving employees more money, by increasing salaries + offering payment for doing extra work

Question 2

What are the 5 key methods of motivation?

Answer 2

• Remuneration
• Bonuses
• Commission
• Promotion
• Fringe Benefits

Question 3

What is remuneration?

Answer 3

• The money paid to the employee for working
• Paying enough money to satisfy them
• Employees could be remunerated with a wage(usually paid weekly) for the hours they work
• They may be paid extra if they work overtime

Question 4

What are bonuses and commission?

Answer 4

• Bonus=an additional amount of money paid to an employee if they achieve a target or high level of performance
• Commission= extra amount of money paid to an employee, if they make a certain number of sale. Usually percentage
• Can result in high productivity + sales
• However, it can encourage employees to put pressure on customers to achieve sales, must train them to operate ethically

Question 5

What is promotion?

Answer 5

• Employee is given a senior role

- Usually comes with increased salary

Question 6

What is fringe benefits?

Answer 6

• Other benefits offered by a business that financially benefits employees
• Discount vouchers etc.
• Must be careful these benefits don’t affect the business needing to pay additional taxes

Question 7

What are the non-final methods of motivation?

Answer 7

• Job rotation
• Job enrichment
• Autonomy
• Does not cost money

Question 8

What is job rotation?

Answer 8

• Gives employees a chance to do different jobs within the business
• The job has to be the same level of employee

Question 9

How does job rotation benefit a business?

Answer 9

• Employees learn to do more than one job
• They gain better understanding of the work happening in other parts of the business
• Employees develop a network of contacts + improving communication between different departments
• Employees gain additional skills+ knowledge abt business + helps increase productivity

Question 10

What is job enrichment?

Answer 10

Process of adding interesting elements to employees role in order to improve motivation

Question 11

How can roles be enriched?

Answer 11

• Reducing/removing negative elements such as repetitive tasks
• Giving employees the opportunity to develop additional skills
• Giving employees additional responsibility
• Adding extra tasks to role
• Employees have more flexibility to choose how they do their job
• Giving more feedback to employee
• However you must not add too much as stress

Question 12

What is autonomy?

Answer 12

• Having independence to make your own decisions

- Employees= feel more in control + won’t be constantly check on by manager

Question 13

Benefits of autonomy?

Answer 13

• Greater job satisfaction
• Greater interest in their own work
• Can set own schedules + organise own work
• Suggest+ make improvements to the way a business works
• Important to make sure it’s done gradually so employees are still working efficiently