Chapter 2.1 Motivating Employees

Question 1

Motivation

Answer 1

Reason why employees want to work hard and effectively for business

Question 2

Why work

Answer 2

• job statisfication (done a good job)
• money(to pay for necessities and and luxuries )
• sense of security (knowing that job and pay is safe)
• esteem needs(self-importance)
• social needs(feeling part of a grip/meet frens)

Question 3

Why motivate workers?

Answer 3

• high output(productive and effective in their work)
• low labour turnover(loyal workforce)
• high customer statisfication -good service from employees -higher profits
• low rates of absenteeism (reducing disruption from it)

Overall , increases firm’s efficiency and output leading to high profits

Question 4

Maslow’s hierarchy (of human needs)

Answer 4

Shows that employees are motivated by each level(bottom to top)

Managers identify which level workers are in can help them to advance to the next level

Question 5

Physiological needs

Answer 5

Food/rest/recreation/shelter

Question 6

Safety/security needs

Answer 6

Job security/protection against danger or poverty 2nd lvl

Question 7

Social needs

Answer 7

Friendship/work colleagues who supports you/belonging a team 3rd lvl

Question 8

Esteem needs(beliefs of oneself)

Answer 8

Recognition/status/achievement/independence 4th lvl

Question 9

Self-actualisation(fulfilment of one’s talents)(due to action)

Answer 9

Promoted(given more responsibility)/succeeding to full potential/feel like done a good job 5th lvl

Question 10

F.W Taylor theory

Answer 10

Workers are motivated by money

More money=more output

Question 11

Herzberg theory

Answer 11

Hygiene factors (basic needs)and motivators. (stating that ppl have 2 sets of needs)

Question 12

Hygiene factors

Answer 12

(Basic needs)(independent factor)

• status
• security
• work conditions
• relationship with superiors
• relationship with subordinates
• salary

Question 13

Motivators

Answer 13

(Allow human to grow psychologically-relating to feelings)dependent on hygiene factors

• achievement
• recognition
• personal growth/development
• advancement/promotion

Question 14

Methods of motivation

Answer 14

Financial rewards

Non financial motivators(fringe benefits + job satisfication )

Question 15

Financial rewards

Answer 15

• wage
• salary
• bonuses
• commission
• profit sharing

Question 16

Wage advantages

Answer 16

Does need to wait long for payment(weekly pay )/gets additional pay for additional work hours(required by company)

Question 17

Wage disadvantages

Answer 17

takes time and money(need to employ wages clerk) to be calculated every week

Question 18

Ways to calculate wage

Answer 18

• time rate

- piece rate

Question 19

Time rate

Answer 19

Amount paid based on the num of hours worked

Used when hard to measure output, eg:bus driver

Question 20

Advantages of time rate

Answer 20

Easier to calculate

Question 21

Disadvantages of time rate

Answer 21

Unfairness to workers as productive and unproductive workers gets the same payment(irrespective of quality and output)

Question 22

Piece rate

Answer 22

Amount paid based on the num of output

Question 23

Piece rate advantages

Answer 23

Encourages workers to work faster and produce more goods

Question 24

Disadvantages for piece rate

Answer 24

Ignorance of quality/ unfairness between workers due to the quality they produced

Question 25

Salary

Answer 25

Payment on monthly basis

Question 26

Salary advantages

Answer 26

Easy calculate / employer has the money kept to himself for a longer period of time

Question 27

Salary disadvantages

Answer 27

No payment for extra time-may be reluctant to work for additional hours Need to wait for a longer time

Question 28

Bonuses

Answer 28

Additional payment as a reward for good work(not necessary)

Question 29

Bonus advantages

Answer 29

Can fulfill workers self esteem-feel recognised

Question 30

Bonus’s disadvantages

Answer 30

Resentment(Not all workers gets bonuses-those who didn’t could be de-motivating )

Question 31

Commission

Answer 31

- paid in addition to the existing wage/salary | - payment relating to th num of sales made, more sale more comission (only for sales staff in service sector)

Question 32

Commission advantages

Answer 32

Motivate workers to increase sales

Question 33

Commission disadvantages

Answer 33

Too concentrated on sales-not focusing on customers’ preference -bad reputation Stressful for workers(wont get additional pay if got 0 sales) Too much competition- creates conflict

Question 34

Profit sharing

Answer 34

(In addition to basic wage/salary) -a system whereby proportion of the company profit is distributed to workers Usuallly in service sector (other sectors-hard to identity contribution to the profit of company )

Question 35

Profit sharing advantages

Answer 35

All employees benefit from it

Question 36

Profit sharing disadvantages

Answer 36

Low profit- no profit share- employee disappointment Higher paid workers get higher profit share- unfairness as lower paid workers(bad feeling towards lower paid workers) think they have done a good job too

Question 37

Fringe Benefits(additional to wage/salary)(according to Seniority of job)

Answer 37

- company vehicle - discounts on business products - free accommodation - free trips

Question 38

Job satisficatipn (fringe benefits)

Answer 38

Enjoyment derived from a feeling you have done a good job (Many non-financial motivators increases level of job satisfication as it makes workers feel like they r being ‘recognised’)

Question 39

Non financial motivators

Answer 39

- job rotation - Job enlargement - job enrichment - team-working - opportunities for training - opportunities for promotion

Question 40

Job rotation

Answer 40

Workers swapping around jobs Increase variety of work-avoid boredom(especially in factories)

Question 41

Job enlargement

Answer 41

Extra tasks of similar level added Make work more interesting

Question 42

Job enrichment

Answer 42

Adding a tasks that require more skills and responsibilities Give employees a sense of trust from seniors management Motivate them to do tasks efficiently

Question 43

Team-working (non financial motivators )

Answer 43

Grip of workers given responsibility for a particular process(deciding as a team) Fulfill social needs, sense of commitment

Question 44

Opportunities for further training advantages

Answer 44

Opportunities for growth and development Feel valued

Question 45

Opportunities for promotion

Answer 45

Sense of self-actualisation (fringe benefits)