Methods Of Motivation Flashcards
What are the financial methods of motivation?
Salary, wages, commission, profit sharing
What is a salary and how does it motivate employees?
A salary is a payment to an employee, usually made monthly but stated as an annual figure. Paying employees higher salary may motivate them, but also offering a steady increase in salary as they gain experience may have the same effect.
What are wages, how does it motivate employees?
A weekly payment made to employees in return for labor services. Employees working extra hours are often paid overtime as a form of motivation
What is commission, how does it motivate employees?
A payment based on the number of sales made over a period of time normally in addition to wage or salary. So the more revenue the employee makes for the business, the greater the commission
What is profit sharing, how will it motivate employees?
A scheme under which employees receive a portion of any profit earned by the business. If employees are under a profit sharing scheme, each receive a share of the business’s profit in addition to salary or wages
What is profit sharing, how will it motivate employees?
A scheme under which employees receive a portion of any profit earned by the business. If employees are under a profit sharing scheme, each receive a share of the business’s profit in addition to salary or wages
What are non-financial methods of motivation?
Changing a management styles, training, job enrichment and fringe benefits
How does changing management styles motivate employees?
If managers retain authority over all decision making, employees will have little independence or control and may feel demotivated. Changing styles gives employees more freedom to control work activities improving levels of motivation and trust
How can training motivate employees?
This can improve the skills and knowledge of the employee at work, making them feel more valued and in return work harder.
How does job enrichment motivate employees?
This is giving employees more authority to make decisions and responsibility and also giving them more interesting and challenging tasks to complete
How does fringe benefits motivate employees?
This can motivate employees as it provides extras employees receive in addition to their pay, eg a company car, free meals and discounted prices.
