2.5.4 Motivation Flashcards
Motivation:
- 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
Importance of a business having a motivated workforce:
- 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
Financial methods of motivation (remuneration):
- Time-based systems: wages, hourly paid, overtime
- Salaries
- Results-based system: piece rate, bonus schemes, commission
- Fringe benefits
- Career progression: promotion
Hourly paid:
fixed wage rate is paid per hr for set number of hours worked
Overtime:
extra payment is made for additional hours worked
Salary:
- employee paid a set amount for the year which they usually receive in monthly instalments
- for non-manual jobs
- for professional workers
Piece rate:
payment made according to how many products are produced
Bonus schemes:
an additional payment made by the business to the employees to show gratitude for hard-work
Commission:
employees paid a % of the value of products that they sell
Fringe benefits:
- aka perks - extra items
- e.g. company care, healthcare, pension schemes, company discounts
Career progression:
e.g. promotions
Job enlargement:
- 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
Non-financial methods of motivation:
- Job enlargement
- Job enrichment
- Job rotation
- Training
- Autonomy
- Team-working
- Employee reward scheme
Job enrichment:
workers given more responsibility and a wider range of more complex and challenging tasks resulting in employees experiencing an increased sense of achievement
Job rotation:
gives employees the opportunity to work in other areas of the business, experience different roles and develop new skills
Training:
- 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
Autonomy:
- 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
Team-working:
allows employees to develop social bonds through being part of a team
Employee reward scheme:
- 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
