2.6 Motivation Strategies

Question 1

List the Motivation Strategies

Answer 1

PICSS
1. Performance-related pay
2. Investment in training
3. Career advancement
4. Support strategies
5. Sanction strategies

Question 2

Explain “Performance-related pay” as a motivation strategy

Answer 2

The monetary compensation provided to employees relative to how their performance is assessed according to set standards.

Question 3

List the different types of performance-related pay

Answer 3

1. Pay increases
2. Bonuses
3. Commissions
4. Share plans
5. Profit-sharing
6. Gain-sharing

Question 4

2 advantages of “Performance related pay” as a motivation strategy

Answer 4

1. Can attract high-quality employees
2. Improves employee performance as they chase higher incomes

Question 5

2 disadvantages of “Performance related pay” as a motivation strategy

Answer 5

1. Can be expensive
2. May develop a competitive culture, undermining teamwork

Question 6

Explain “Investment in training” as a motivation strategy

Answer 6

When a business provides finances and resources for training programs to develop employee’s skills and knowledge to make them more efficient in their roles.

Question 7

2 advantages of the “Investment in training” as a motivation strategy

Answer 7

1. May improve employee retention as staff loyalty and motivation are improved
2. Improving the skills of employees can benefit the business as they feel more confident and perform more productively

Question 8

2 disadvantages of the “Investment in training” as a motivation strategy

Answer 8

1. A business may pay the cost of training only to have the employee leave for another business
2. A business may be unable to afford the cost of training

Question 9

Explain “Support Strategies” as a motivation strategy

Answer 9

The assistance or services provided by the business to help employees to do better

Question 10

2 advantages of “Support strategies” as a motivation strategy

Answer 10

1. Support can be provided at little to no cost
2. Counselling and mentoring help employees develop meaningful professional relationships

Question 11

2 disadvantages of “Support strategies” as a motivation strategy

Answer 11

1. Requires a business to have a positive corporate culture
2. Employees may become too dependent on their mentor/counsellor

Question 12

Explain “Sanction Strategies” as a motivation strategy

Answer 12

A form of penalty or discipline imposed on an employee for poor performance

Question 13

List 3 different types of sanctions used for motivation

Answer 13

• Verbal warnings
• Demotion
• Reduction in salary
• Termination

Question 14

2 advantages of “Sanction strategies” as a motivation strategy

Answer 14

1. Creates a sense of accountability around expectations
2. May quickly stop inappropriate behaviour

Question 15

2 disadvantages of “Sanction strategies” as a motivation strategy

Answer 15

1. Reduces a sense of belonging, creating a culture of fear and mistrust
2. Can create a negative environment over the long term