Chapter 6 - Motivating Employees

Question 1

Motivation

Answer 1

The reason employees want to work hard and effectively for the business

Question 2

Reasons why people work (5)

Answer 2

Self-esteem
Job satisfaction
Security
Social-needs
Money

Question 3

Benefits of a motivated workforce (5)

Answer 3

Willingness to accept change
Higher output per worker
Two way communication
Low labour turnover (less people leaving)
Low absenteeism rates
Low strike rates

Question 4

Maslows hierarchy (5) +def

Answer 4

Concept of human needs
Each level needs to be achieved before moving on to the next one
-Self actualisation - promotions + responsibility
-Esteem needs - recognition
-Social needs - supportive colluegues
-Security needs - job security
-Physiological needs - wages enough to pay bills

Question 5

F.W Taylor’s theory + critisisms

Answer 5

Motivation theory - assumed people are motivated by personal gain meaning the more money they get the more motivated. Broke down jobs into simple processes and calculated theoretical output, paying them more money if they reached it.
-too simplistic-employees arent just motivated by money
-cant easily measure each employees output
-if they are unfilfilled there will be no change in productivity.

Question 6

Herzberg theory

Answer 6

Humans have 2 sets of needs:
Motivators-effects wear off quickly-achievement personal growth,work itself,recognition,promotion
Hygiene/maintenance factors-must be satisfied-status,security,conditions,policies,salary,relationships

Question 7

Job rotation

Answer 7

Workers swapping around and doing each task for only a limited amount of time before swapping again

Question 8

Job enrichment

Answer 8

Looking at jobs and adding more tasks that require more skill and/or responsibility

Question 9

Teamworking

Answer 9

Using groups and allocating specific tasks and responsibilities to them

Question 10

Hygiene factors (7) +def

Answer 10

Must be satisfied or else they are demotivators. Even if they are satisfied, they are still not motivators, they are just basic requirements to be met (Frederik Herzberg)
-Status
-Security
-Work conditions
-Company policies + administration
-Relationship with supervisor
-Relationship with subordinates
-Salary

Question 11

Motivators (5)

Answer 11

Achievement
Recognition
Personal growth/development
Advancement/promotion
Work itself

Question 12

Financial methods of motivation (5)

Answer 12

Wages
Salary
Bonus
Commission
Profit sharing

Question 13

Wage

Answer 13

Payment for work, usually payed weekly

Question 14

Wages benefits (2)

Answer 14

Workers are payed on a regular basis and don’t have to wait
Overtime can be payed

Question 15

Wages drawbacks (2)

Answer 15

Have to be calculated weekly (takes time + money)
Wage clerks have to be employed

Question 16

How wages can be calculated (2)

Answer 16

Time rate
Piece rate

Question 17

Time rate

Answer 17

Amount payed to an employee for one hour of work. Used where output cannot be measured eg. Receptionist

Question 18

Time rate benefits (1)

Answer 18

Easy to calculate + worker knows how much they’ll be paid for a certain period of time

Question 19

Time rate limitations (4)

Answer 19

Admin (time sheet) takes time
Good + bad workers get payed the same
Need supervisors (expense)
Need clocking in system

Question 20

Piece rate

Answer 20

An amount payed for each unit of output

Question 21

Advantage of piece rate

Answer 21

Encourages workers to work faster to produce more goods

Question 22

Limitations of piece rate (3)

Answer 22

Quality may be ignored -> damages reputation
Unfair, some workers care more than others and produce slower but more qualitative (friction)
No output if machinery breaks (workers must be payed a minimum amount of money)

Question 23

Salary

Answer 23

Payment for work, usually monthly
Used for office staff/management

Question 24

Benefits of salaries (3)

Answer 24

Easy to calculate
Employer only has to pay once a month
Payment only has to be calculated once a month

Question 25

Drawbacks of salaries (2)

Answer 25

Some workers prefer weekly payments
No payment for extra time worked (workers may be reluctant)

Question 26

Bonus

Answer 26

Additional amount of payment above basic pay as a reward for good work

Question 27

Bonus benefit

Answer 27

Can be motivating

Question 28

Bonus limitations (2)

Answer 28

Can become expected, employee may become difficult to manage
Bad feelings as only some workers get bonuses

Question 29

Commission

Answer 29

Payment relating to number of sales made
Payed in ADDITION to wages or salaries

Question 30

Commission advantage (1)

Answer 30

Encourages sales staff to sell as many products as possible

Question 31

Commission limitations (3)

Answer 31

Sales staff convince people into buying things they don’t want results in a bad reputation
Stressful for staff if they have a bad month
Increased competition amongst staff

Question 32

Profit sharing

Answer 32

System whereby a portion of the company’s -profit is paid out to employees
Often used in sectors where it is hard to identify an individual employees contribution to increased profits, but a;l benefit from more productive work

Question 33

Limitations of profit sharing (2)

Answer 33

Low profit = no profit share =dissapointment
Calculated based on existing wage/salary higher payed workers get more even if lower paid worked harder

Question 34

Fringe benefits (9)

Answer 34

Company vehicle
Discounts on business products
Healthcare
Children’s education fees paid
Free accommodation
Share options
Expense accounts
Pension
Free trips/holidays

Question 35

Non financial motivating factors (5)

Answer 35

Job rotation
Job enrichment
Autonomous work groups/teamworking
Training
Opportunities for promotion

Question 36

Job satisfaction

Answer 36

Enjoyment derived from feeling that you have done a good job

Question 37

Training

Answer 37

Process of improving a worker’s skills

Question 38

Promotion

Answer 38

Advancement of an employee in an organisation to eg. Higher paid job/managerial level