Chapter 6 - Camila Blanco Flashcards
Motivating employees
Motivation
The reason why employees want to work hard and work effectively for the business
Advantages of well-motivated work force
- better productivity
- lower levels of absenteeism
- lower levels of staff turnover
- improve industrial relations with trade union
- improve product quality
F.W. Taylor’s motivation theory
All the workers are motivated by personal gain
If they are paid more, they will work more effectively
Maslow’s motivation theory
- physiological needs
- safety/security needs
- social needs
- esteem needs
- self-actualisation
Herzberg’s motivation theory
Humans have 2 sets of needs:
- basic animal needs (‘Hygiene’ factors)
- a human being to be able to grow psychologically (‘Motivators’)
Factors of motivate employees
- financial rewards
- non-financial rewards
- introducing ways to give job satisfaction
Wage
Payment for work, usually paid weekly
Time rate
Payment by the hour (payment for a period of time)
Piece rate
Paid depending on the quantity of products made (usually bonus)
Salary
Payment for work, usually paid monthly
Commission
Payment relating to the number of sales made
Profit sharing
A system whereby a proportion of the company’s profits is paid out to employees
Bonus
An additional amount of payment above basic pay as a reward for good work
Performance related pay
Payment related to the effectiveness of the employee where their output can easily be measured
Share ownership
Where shares in the company are given to employees so that they become part owners in the company
