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AS Level Business Studies > Booklet 10: Motivation > Flashcards

Booklet 10: Motivation Flashcards

1
Q

Advantages of a motivated workforce.

A
  1. Better productivity
  2. Lower levels of absenteeism.
  3. Lower levels of staff turnover.
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2
Q

What did Frederick W. Taylor believe?

A
  1. Division of Labour (workers should specialise)
  2. Managerial Control over the workplace.
  3. Measurement (using piece rate).
  4. Standardisation, Efficiency and Discipline.
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3
Q

Advantages of Frederick W. Taylor’s Theory.

A
  1. Productivity improved.
  2. Lowered unit costs.
  3. Workers were given one repetitive task so they can learn to master it.
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4
Q

Disadvantages of Frederick W. Taylor’s Theory.

A
  1. Only interested in money.
  2. Didn’t take into account the welfare of workers.
  3. Work was very boring.
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5
Q

What did Abraham Maslow believe? (Maslow’s Hierarchy of Needs)

A
  1. Physiological needs: requirements for food, clothes.
  2. Safety needs: a secure job, and a safe working environment.
  3. Social needs: desire for friendship.
  4. Esteem needs: respect from others.
  5. Self-Actualisation: Need to fulfill one’s potential.
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6
Q

Advantages of Maslow’s Hierarchy of Needs Theory.

A
  1. Easy to identify where individuals fit into the hierarchy.
  2. Better relationships and teamwork.
  3. Productivity should increase as a result of increased motivation.
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7
Q

Disadvantages of Maslow’s Hierarchy of Needs Theory.

A
  1. Problem deciding when a need is actually fulfilled.
  2. Model assumes that workers want to be motivated.
  3. Difficult to put the theory into practice.
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8
Q

What is Frederick Herzberg’s Two Factor Theory- Hygiene Factors?

A
  1. Motivators- factors which give the workers satisfaction. (promotions, responsibility).
  2. Hygiene factors- which if absent, lead to dissatisfied workers (pay or working conditions).
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9
Q

Advantages of Herzberg’s Two Factor Theory.

A
  1. Management knows hygiene factors and is able to reduce them to a minimum.
  2. Motivators relate directly to the actual job. The business will know to offer these satisfies.
  3. Business will offer training and development to workers to satisfy their growth.
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10
Q

What are Time Rates?

A

Employees are paid for the number of hours they work.

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11
Q

Advantages of Time Rates.

A
  1. Workers do not have to rush their work so quality id not impaired.
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12
Q

Disadvantages of Time Rates.

A
  1. Workers have no incentive to work.
  2. Workers may waste time.
  3. Staff are paid by the hour regardless of how efficient they have been.
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13
Q

What are Piece Rates?

A

Employees are paid for each unit they produce.

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14
Q

Advantages of Piece Rates.

A
  1. Fair to all.
  2. Motivates workers to perform so increases output.
  3. Encourages workers to become skilled to earn more
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15
Q

Disadvantages of Piece Rates.

A
  1. Workers may rush work, which can affect the quality.
  2. Increased wastage.
  3. It can cause over-production.
  4. Breakdowns or supplies not arriving on time may penalise employees.
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16
Q

What is a commission?

A

A Commission is a payment made as a percentage of the sales a salesperson has made.

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17
Q

Advantages of a commission.

A
  1. Motivated to sell more.
  2. High performing employees can earn huge amounts.
  3. Payroll cost is related to the value of business achieved rather than just the amount produced.
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18
Q

Disadvantages of a commission.

A
  1. Salespeople may cut corners to make sales.

2. High commission earnings enjoyed, resented elsewhere in the business- not team effort but individual.

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19
Q

What is a Fee?

A

A fee is a one off payment made to subcontractors employed by the business for completing one-off tasks.

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20
Q

Advantages of a Fee.

A
  1. Usually sufficient to pay.
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21
Q

Disadvantages of a Fee.

A
  1. Fee payments to professionals are very expensive.
22
Q

What are Fringe Benefits?

A

These are employer-provided benefits such as the use of a company car, private medical insurance.

23
Q

Advantages of Fringe Benefits.

A
  1. Useful for motivating.

2. Can prevent negative publicity.

24
Q

Disadvantages of Fringe Benefits.

A
  1. Not as attractive as they are now taxable by HMRC.
25
Q

What is Profit Sharing?

A

Employees are entitled to a share of the profits annually when determined at end of the financial year.

26
Q

Advantages of Profit-Sharing.

A
  1. Reduces labour turnover.
  2. Creates a sense of team spirit.
  3. It incentivises employees to work harder to increase profits.
27
Q

Disadvantages of Profit-Sharing.

A
  1. If the organisation doesn’t achieve high levels employees will receive little or nothing.
  2. Not linked to the individual effort so may not motivate everyone.
28
Q

What is Performance-related Pay?

A

This links an employee’s average salary to their performance.

29
Q

Advantages of Performance-related Pay.

A
  1. If the employee attains the agreed targets they are entitled to a cash bonus.
  2. Motivates staff to meet the initial target.
30
Q

Disadvantages of Performance-related Pay.

A
  1. It can be difficult to measure.
  2. Agreed targets must be attainable.
  3. bonus may be difficult to calculate.
31
Q

Advantages of Monetary Methods of Motivation.

A
  1. Employees try to work harder to gain a higher wage.
  2. Incentive schemes increase productivity.
  3. Develops a competitive working environment.
32
Q

Disadvantages of Monetary Methods of Motivation.

A
  1. Workers may not be able to achieve targets (if an assembly line breaks down)
  2. Changes to the external environment (recession).
  3. Quality can suffer.
  4. Employees may begin to resent.
33
Q

What is Job Enrichment?

A

Involves expansion of an employee’s existing tasks and duties to increase an employee’s degree of control over their job.

34
Q

Advantages of Job Enrichment.

A
  1. Encourages lower levels of absenteeism and labour turnover.
  2. Encourage greater job satisfaction.
  3. Increases individual responsibility.
  4. It develops workers’ unused skills.
35
Q

Disadvantages of Job Enrichment.

A
  1. Not suitable for all jobs.

2. Does not necessarily motivate an employee.

36
Q

What is Job Enlargement?

A

Is the expansion of an employee’s duties to make their work more interesting. (More tasks at the same level are added to the job)>

37
Q

Advantages of Job Enlargement.

A
  1. May give employees more satisfaction.
  2. Less likely to get bored.
  3. New people- new team members- more social.
38
Q

Disadvantages of Job Enlargement.

A
  1. Employees may see it as an attempt to increase their workload.
  2. If the tasks are of a similar nature, it may have no impact on reducing boredom.
  3. Ignores the benefits achieved through specialisation e.g. efficiency and high quality.
39
Q

What is Job Rotation?

A

Job Rotation involves employees moving from task to task.

40
Q

Advantages of Job Rotation.

A
  1. Allows staff to experience new tasks.
  2. May reduce boredom.
  3. Enable a wider variety of skills to be gained.
  4. May make it easier to cover absent colleagues.
41
Q

Disadvantages of Job Rotation.

A
  1. If the tasks are boring unlikely to increase the worker’s motivation.
  2. Productivity may decrease if employees need to be trained to work on new tasks.
42
Q

What is Employee Participation and Empowerment?

A

Employees are given the authority to make their own decisions and control their own working life.

43
Q

Advantages of Employee Participation and Empowerment.

A
  1. Builds up the skills of the employees.
  2. May bring new ideas/ approaches.
  3. Reduces management stress and workload.
44
Q

Disadvantages of Employee Participation and Empowerment.

A
  1. May increase workload and stress of subordinates.

2. Empowerment of employees inappropriately trained may cause terrible decisions to be made.

45
Q

What is a Quality Circle?

A

When groups of employees meet on a regular basis to discuss production techniques and make suggestions as to how production problems might be solved.

46
Q

Advantages of a Quality Circle.

A
  1. Employees are directly involved= teamwork.
  2. Sharing ideas may motivate employees.
  3. Encourages teamwork.
  4. Improves communication.
47
Q

Disadvantages of a Quality Circle.

A
  1. Productivity decreased as coming away from duties.

2. Only works if they have the full support of both managers and employees.

48
Q

What is Team Working?

A

Team Working involves setting up the process into teams.

49
Q

Advantages of team working.

A
  1. Problems can be quickly solved.
  2. Teamwork improves motivation.
  3. Brings in different skills.
  4. Less stress/ pressure on one person.
50
Q

Disadvantages of team working.

A
  1. Time-consuming.
  2. Some team members do not participate as much as others.
  3. Costs of time and human resources towards building a team.
  4. Disagreements in a team lead to resentment.
51
Q

Advantages of Non-Monetary Methods of Motivation.

A
  1. No financial cost/ minimal cost.
  2. Employees feel respected and valued.
  3. Job satisfaction= more productive.
52
Q

Disadvantages of Non-Monetary Methods of Motivation.

A
  1. Not all employees want extra responsibility and input.
  2. Some employees will be only motivated by money.
  3. Time may be wasted e.g. Training.

AS Level Business Studies (11 decks)

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