Improving motivation and engagement

Question 1

Influences on the choice and assessment of the effectiveness of financial and non-financial reward systems

Answer 1

N/A

Question 2

What are the advantages of having engaged and motivated employees?

Answer 2

Greater productivity - Motivated and engaged employees are likely to work harder and produce more than employees who are not motivated and engaged
Promoting the business - Likely to share their experiences with other people which may attract workers to the business and give the business a good reputation
Trust between employer and employee - Likely to trust their employer, may have fewer absences

Question 3

What is Taylor’s theory on motivation in brief?

Answer 3

To motivate employees, they should be based on the amount of output they have produced

Question 4

Taylors approach

Answer 4

Called his approach piece-rate pay
Found if employees were paid more for being more productive, they would become more motivated and engaged with their job as there was an opportunity for employees to increase the amount they earnt

Question 5

Advantages of Taylor’s theory

Answer 5

May improve productivity which means a business can reduce its costs by employing fewer employees

Question 6

Disadvantages of Taylor’s theory

Answer 6

Employees may rush during the production process leading to mistakes and errors
Employees may become bored with completing the same task over and over again

Question 7

What is Maslow’s theory?

Answer 7

Hierarchy of needs

Question 8

List the categories on the hierarchy of needs, from bottom to top

Answer 8

Physiological needs, safety needs, belongingness, esteem needs, self-actualisation

Question 9

What is Maslow’s hierarchy of needs?

Answer 9

Provides five categories of needs which a business must cater to if its employees are to be as engaged and motivated as possible

Question 10

When does self-actualisation occur?

Answer 10

When a business gives employees the opportunity to meet their full potential through achievement, responsibility and the developmeny tof new skills and knowledge

Question 11

How are esteem needs addressed by a business?

Answer 11

When a business gives employees access to opportunities for promotion and through recognising and celebrating successes

Question 12

How is belonging and love addressed by a business?

Answer 12

When they give employees opportunities to build relationships through teamwork and social interactions

Question 13

How are safety and physiological needs addressed by a business?

Answer 13

When a business offers employees job security and a safe working environment
When a business offers pay to employees so that they are able to purchase food and accommodation

Question 14

Advantages of Maslow’s hierarchy

Answer 14

Offers businesses with a structured approach to try and improve employee motivation

Question 15

Disadvantages of Maslow’s hierarchy

Answer 15

Assumes employees will place the same importance on each of their needs as ordered within the hierarchy and this may not apply to all staff

Question 16

What did Herzberg suggest?

Answer 16

Two groups of factors which impact upon an employee’s motivation
Safer conditions - Business should offer hygiene factors, such as safe working conditions, pay, relationships, and clear policies. Hygiene factors won’t motivate employees but will stop them from becoming demotivated
Motivating factors - Businesses should offer motivating factors, such as opportunities for recognition, achievement, and responsibility. These will motivate employees

Question 17

Advantages of Herzberg’s theory

Answer 17

+ Offers businesses a structured approach to try and improve employee motivation (maybe add more)

Question 18

Disadvantages of Herzberg’s theory

Answer 18

• Assumes employees will place the same importance on each of the hygeine and motivating factors as Herzberg did and this may not apply to all staff

Question 19

Examples of financial incentives

Answer 19

Piece rate
Commission
Salary schemes - Gives employees pension benefits usually based on their earnings and length of employment or membership of the scheme
Performance-related pay

Question 20

Examples of non-financial incentives

Answer 20

Healthcare
Gym memberships
Child care

Question 21

Factors when deciding what type of incentive to use

Answer 21

Financial position - Must be strong if financial methods will be used as they will directly increase the business’ cost
Demands of the employees - Some value financial methods, some prefer other types
Competitors - Businesses may need to compete with what competitors are offering their staff