Human Resources - Motivation Flashcards
What is the importance of motivation for employees?
- Lower labour turnover
- Employee will produce higher quality work
- There would be fewer accidents
Name 4 financial methods of motivation
- Bonus
- Commission - employees are paid a percentage of their sales revenue for the business
- Fringe benefits - perks gifted to the employee that aren’t cash
- Profit sharing - employees receive a share of the businesses annual profits on top of their annual salary
Name 2 advantages of a bonus
- Bonus payments encourages employees to work harder
- The employer gets increased productivity, resulting in higher sales and profits
Name 2 disadvantages of a bonus
- In attempting to reach their targets, the employee may rush their work, which would affect its quality
- The employee may feel demotivated if their targets are unrealistic
Name 2 advantages of a commission
- Encourages sales staff to increase the amount in their sales
- Sales staff increase their income, which means that the business can sell more and makes profit
Name a disadvantage of a commission
- Because it’s linked to sales revenue, a car salesperson would focus on selling high priced vehicles, leaving the low priced ones unsold
Name 2 advantages of fringe benefits
- It can help retain staff at the business
- It can give employees an extra incentive to work harder for the business
Name a disadvantage of fringe benefits
Some staff prefer to have an increased salary instead of perks
Name 2 advantages of profit sharing
- Employees have a greater sense of belonging to the business and take a greater interest in its success
- It acts as a motivator as it encourages employees to increase the businesses output and profit in which they can own a share
Name 2 disadvantages of profit sharing
- All employees get the same amount, including the ones who worked less and deserve less
- Profit sharing differs each year - inconsistent
Name the 4 non financial methods of motivation
- Job rotation
- Team working
- Quality circles - groups of employees meet regularly to examine the quality of what they’re doing
- Flexible working - gives the employee some choice on when they start and finish work
Name 2 advantages of job rotation
- Employees get the advantage of new skills
- It reduces boredom, a major demotivator in the workplace
Name 2 disadvantages of job rotation
- Each employee will be initially trained for the job
- There can be only so many jobs rotated and returning to the same job can be boring
Name 2 advantages of team working
- It makes employers feel more responsible to impart their skills to other team members
- Employees feel committed to make their own team successful and will work hard to make it happen
Name a disadvantage of team working
Some team member can be uncommitted and wont work hard, causing conflict