2.5.4 Motivation

Question 1

Motivation:

Answer 1

• about the commitment to do something
• in the context of a business - motivation can be said to relate to “the will to work” i.e. the desire to work very hard and at higher standard

Question 2

Importance of a business having a motivated workforce:

Answer 2

• high productivity levels → larger output of products + higher quality products/services → causes increased customer loyalty → increased sales → increased profit → benefitting the business
• low levels of absenteeism
• high levels of staff retention → lowering training and recruitment costs
• good rep as an employer making it easier to recruit and attract best workforce in the future
• flexibility in working
• improves customer services
• improves communication within the business

Question 3

Financial methods of motivation (remuneration):

Answer 3

• Time-based systems: wages, hourly paid, overtime
• Salaries
• Results-based system: piece rate, bonus schemes, commission
• Fringe benefits
• Career progression: promotion

Question 4

Hourly paid:

Answer 4

fixed wage rate is paid per hr for set number of hours worked

Question 5

Overtime:

Answer 5

extra payment is made for additional hours worked

Question 6

Salary:

Answer 6

• employee paid a set amount for the year which they usually receive in monthly instalments
• for non-manual jobs
• for professional workers

Question 7

Piece rate:

Answer 7

payment made according to how many products are produced

Question 8

Bonus schemes:

Answer 8

an additional payment made by the business to the employees to show gratitude for hard-work

Question 9

Commission:

Answer 9

employees paid a % of the value of products that they sell

Question 10

Fringe benefits:

Answer 10

• aka perks - extra items
• e.g. company care, healthcare, pension schemes, company discounts

Question 11

Career progression:

Answer 11

e.g. promotions

Question 12

Job enlargement:

Answer 12

• gives staff a greater variety of tasks to perform (not necessarily more challenging)
• should make the work more interesting
• may take place through job rotation

Question 13

Non-financial methods of motivation:

Answer 13

• Job enlargement
• Job enrichment
• Job rotation
• Training
• Autonomy
• Team-working
• Employee reward scheme

Question 14

Job enrichment:

Answer 14

workers given more responsibility and a wider range of more complex and challenging tasks resulting in employees experiencing an increased sense of achievement

Question 15

Job rotation:

Answer 15

gives employees the opportunity to work in other areas of the business, experience different roles and develop new skills

Question 16

Training:

Answer 16

• motivate staff to do existing job well
• learn new technique or be trained for future posts inc. promotions, employees will feel more valued and loyal to business

Question 17

Autonomy:

Answer 17

• how much freedom a member of staff has to make their own decisions and to shape the way in which they work
• some boundaries will be set in terms of decision-making and support will be provided in terms of suppliers
• employees often motivate when they can make their own decisions and choices about the best way to work and achieve their goals

Question 18

Team-working:

Answer 18

allows employees to develop social bonds through being part of a team

Question 19

Employee reward scheme:

Answer 19

• recognise employees’ performance and contribution through schemes e.g. employee of the week
• if employees’ achievements are recognised → gain greater self-esteem → employees feel valued and work harder → higher levels of productivity and better customer service → motivated workers also less likely to leave business → lower training and recruitment costs → savings can be put into financial rewards e.g. bonuses → for employees to further boost motivation