Chapter 6: Motivating workers

Question 1

what is meant by the term employee motivation?

Answer 1

Is the real reason why employees want to work hard and work effectively for the business.

Question 2

Name and explain the main five reason why a person would work?

Answer 2

1. Money: to pay for necessities and some luxury.
2. Security: a sense of security. To know that your job and pay are safe an is not likely to lose your job.
3. Social needs (affiliation): feeling part of a group or organizations,meeting people and making friends at work.
4. Esteem needs (self importance): feeling tat the job you do is important.
5. Job satisfaction: enjoyment from the feeling that you have done a good job.

Question 3

Explain how worker motivation is lined to business profitability.

Answer 3

• Motivated workers work harder and are highly productive.
• produces a large output.
• business makes more profit.

Question 4

Name the three main theories published regarding employee motivation.

Answer 4

• Taylor (1911): money is the main motivator.
• Maslow (1954): Hierarchy of needs.
• Herzberg (1959): ‘Hygiene’ and ‘motivators’

Question 5

What is the basis of F.W Taylor’s motivation theory.

Answer 5

That all workers are motivated by personal gain. If workers are paid more, they will work more.

Question 6

Explain how Taylor’s theory was applied.

Answer 6

Factory worker’s work were broken down into simple tasks. It was easier to work out their output. Workers that had more output, were paid more.

Question 7

What was the benefit of applying Taylor’s theory to businesses?

Answer 7

Workers worked harder and produced more output. The extra output of a worker is worth more that the worker’s increase in pay.

Question 8

What were the main criticisms of F.W Taylor’s theory?

Answer 8

• Too simplistic- workers are motivated by things more than money
• unfulfilled workers will not produce productivity improvements, even if pay is increased.
• Practicality: not easy to measure worker output.

Question 9

What were the five hierarchy of needs proposed by Maslow?

Answer 9

1. Physiological needs: food, rest, recreation and shelter. Worker’s wages should be high enough to pay bills.
2. Safety/security needs: protection against danger, protection against poverty and fair treatment - job security.
3. Social needs: friendship, a sense of belonging to a team - work colleagues that support you at work.
4. Esteem needs: having status and recognition, achievement and independence - being given recognition for a job well done.
5. Self- Actualization: succeeding at your full potential, feeling that you have done a good job, not just for financial and personal reasons - being promoted and given more responsibility.

Question 10

How can the hierarchy of needs be used to motivate an employee?

Answer 10

Employees can motivated by the next level when a level is satisfied. The current level will no longer satisfy the employee.

Question 11

What is the main problem in the hierarchy of needs?

Answer 11

That some levels do not exist for some people while some rewards appear fit to more than one level. Money is essential, but large salaries can also be perceived as a status symbol.

Question 12

What is the basis of Herzberg’s motivation theory?

Answer 12

That people have two types of needs: basic animal needs (hygiene factors) and psychological growth factors (motivators).

Question 13

Name five examples of motivators according to Herzberg.

Answer 13

achievement
recognition
personal growth/development
advancement or promotion
work itself

Question 14

Name five ‘Hygiene’ factors suggested by Herzberg

Answer 14

status
security 
work conditions
company policies and administration
relationship with supervisor
relationship with subordinates 
salary

Question 15

Of Hygiene and motivator factors, what should be fulfilled first by the business, according to Herzberg?

Answer 15

Hygiene

Question 16

Why cant businesses only use Hygiene factors to motivate employees.

Answer 16

Once they are satisfied, the effects of them quickly wear off. True motivators are found in other factors.

Question 17

In terms of motivation, what is one of the main reasons as to why employees may leave the business and find work elsewhere?

Answer 17

For some people, other factors maybe more important than money alone. A lack in such motivations mean Employees may leave.

Question 18

why are different payments and financial rewards used in a business?

Answer 18

To provide incentives to employees to work efficiently and harder.

Question 19

Name 5 types of financial rewards that can be used by a business to motivate its employees.

Answer 19

1. wage
2. salary
3. bonus
4. commission
5. Profit sharing

Question 20

what is a wage?

Answer 20

is a payment for work, usually paid weekly.

Question 21

What are the advantages of providing wages?

Answer 21

• The worker gets a regular pay and will not have to wait long.
• Overtime wage can paid to workers

Question 22

What are the drawbacks of paying wages?

Answer 22

• They have to calculated weekly and can take time and money.
• Wage clerks will have to be employed.

Question 23

what is a time rate?

Answer 23

is an amount payed to an employee for one hour of work.

Question 24

Identify the advantages to paying in time rates.

Answer 24

• Easy to calculate.

- worker will know how much he has to recieve.

Question 25

Identify the drawbacks of paying in time rates.

Answer 25

• Time-sheets will have to be filled and accountants will spend lots of time calculating.
• Good and Bad workers get paid the same amount of money.
• Supervisors are needed to check worker’s work.
• Clocking system required.

Question 26

Provide an examples of when time rates are used in businesses.

Answer 26

When it is hard to calculate worker output. for bus drivers and receptionists.

Question 27

What is a piece rate?

Answer 27

is an amount paid for each unit of output.

Question 28

Identify the main advantage of using piece rates in a business.

Answer 28

-It encourages workers to work faster and produce more output.

Question 29

Identify the limitations that arise from using piece rates.

Answer 29

• Quality maybe neglected. Quality control systems are expensive.
• Friction between careful and rushed workers, who receive more pay.
• Worker output maybe stopped if machinery breaks down. Guarantee amount is required.

Question 30

Define the term salary.

Answer 30

is a a term to describe payment for work, usually paid monthly.

Question 31

Identify the advantages of a business paying a salary.

Answer 31

• easy to calculate
• Employer can have money in the bank account for longer.
• Payments need to e calculated less frequently.

Question 32

Identify the limitations that arise from using salaries as a payment method in a business.

Answer 32

• worker preferences

- No payment for overtime- worker maybe more reluctant.

Question 33

define a bonus

Answer 33

is an additional amount of payment above a basic pay as a reward for good work.

Question 34

Identify the advantage of paying a bonus to a worker.

Answer 34

It allows for the worker to feel ‘recognized’ and ‘special’#

Question 35

Identify the limitations of a business paying bonuses.

Answer 35

• I would be expected of the business and employees will be disappointed if it cannot be paid during a bad year.
• If not paid to everybody, can result in some workers questioning.

Question 36

what is a commission?

Answer 36

is a payment relating to the number of sales made.

Question 37

what benefit is it to the business of using commissions as a method paying workers?

Answer 37

The more sales a worker makes, the more they are paid.This encourages sales staff to sell as many products as possible and therefore business sales increase, creating more profit.

Question 38

What are the possible limitations of using commissions as a way to paying workers.

Answer 38

• Persuasive sales staff can convince customers to buy a product, when they do not want it. sales will increase in the short term and decline due to bad reputation.
• Stressful for sales staff: they need to sell in order to receive a pay.
• Too much competition between sales staff.

Question 39

what is profit sharing?

Answer 39

is a system whereby a proportion of the company’s profits is paid out to employees

Question 40

What are the benefits of using profit sharing as a means of payment in a business.

Answer 40

The additional apartment will motivate staff to work hard as they receive a share of the profits.

Question 41

what is a fringe benefit?

Answer 41

is an addition to financial benefits given to an employee of a business,depending on the seniority of the job performed.

Question 42

Give some examples of fringe benefits.

Answer 42

• company vehicle
• discounts on businesses products.
• health care paid for
• children’s education fees
• free accommodation
• share options
• generous expense accounts
• pension paid for
• free trips abroad/holidays

Question 43

what is job satisfaction?

Answer 43

is the enjoyment derived from the feeling that you have done a good job.

Question 44

what is job rotation?

Answer 44

involves workers swapping around and doing each specific task for only a limited time and changing around again.

Question 45

what is job enrichment?

Answer 45

involves looking at jobs and adding tasks that require more skill and/or responsibility.

Question 46

What is team working?

Answer 46

involves using workers and allocating specific tasks and responsibilities to them

Question 47

what is training?

Answer 47

it is the process of improving a worker’s skills.