Motivating employees

Question 1

Motivation

Answer 1

is the reason why employees want to work hard and effectively for the business

Question 2

Benefits of a well-motivated workforce

Answer 2

• high output per worker - which helps to keep costs low and increase profits
• Willingness to accept change (ex: new methods of learning)
• Two-way communication with management, (ex: suggestions for improving quality)
• low labor turnover
• low rates of absenteeism
• low rates of strike action

Question 3

Maslow’s hierarchy

Answer 3

1. self-actualization – Succeeding to your full potential, feelings you have done a good job (Promotion)
2. esteem needs – having status and recognition, achievement and independence
3. social needs – Friendships, sense of belonging
4. safety/security needs – protection against danger and poverty (Job security)
5. physiological needs – food, rest, recreation, shelter

Question 4

F.W Taylor

Answer 4

workers are motivated by money – and only by money, while employers want low labor costs.

Question 5

Herzberg

Answer 5

Motivators (to grow)

• achievement
• recognition
• personal growth/development
• promotion
• work itself

Hygiene factors (needs)

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

Question 6

methods of motivation (financial rewards)

Answer 6

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

Question 7

Wage

Answer 7

is a payment for work, usually paid weekly

Question 8

Wages (Advantages)

Answer 8

• Worker gets paid on a regular basis, so no need to wait for long time for money.
• Overtime is paid if the worker works extra hours
  (intensive to additional work when business needs)

Question 9

Wages (Drawbacks)

Answer 9

• Has to be calculated every week, which is time consuming

- wages clerks are needed to perform this task, so money wasted as well

Question 10

wages (Time rate)

Answer 10

is the amount paid to an employee for one hour of work

Question 11

wages (Time rate Pros)

Answer 11

• Easy to calculate worker’s wage and worker know the amount they are getting paid for certain amount of hours

Question 12

wages (Time rate Cons)

Answer 12

• Good and bad workers get paid the same
• Supervisors are needed to make sure all the workers are productive and continue working and producing good quality products
• A clocking-in system is needed to determine the number of hours worked by the employees

Question 13

wages (Piece rate)

Answer 13

is an amount paid for each unit of output

Question 14

wages (Pieces rate Pros)

Answer 14

• it encourages workers to work faster and produce more goods

Question 15

wages (Pieces rate Cons)

Answer 15

• workers may focus on making more products than focusing on the quality of the product, which would damage the reputation of the company
• Workers who are careful in their work will not earn as much as those who rush, which would cause friction between employees.
• If machinery breaks down, workers would earn less, due to this companies pay workers a guaranteed amount of money.

Question 16

Salaries

Answer 16

is a payment for work. usually monthly

Question 17

Salaries (Advantages)

Answer 17

• Easy to calculate salary as it needs the annual amount divided into 12 months
• The employer has the money in the bank account for longer than if paying wages.
• The payment only needs to be calculated only once a month

Question 18

Salaries (Disadvantages)

Answer 18

• Workers may be preferred to be paid weekly

- No overtime payment, so workers may refuse to work longer

Question 19

Bonuses

Answer 19

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

Question 20

Bonuses (Disadvantages)

Answer 20

• Bonuses can be expected every year, and if not paid due to a unproductive year for the business, workers may be disappointed
• If only a number of workers are paid bonuses, the others might get bad feelings on why they did not receive one

Question 21

Commission

Answer 21

is payment relating to the number of sales made

Question 22

Commission (Disadvantages)

Answer 22

• if the staff is very persuasive, they might make the customer buy the product without any interest in the product, which would result in a short increase of sales.
• Stressful for the staff, bad month = less payment
• too much competition between sales staff to get the next customer

Question 23

Profit sharing

Answer 23

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

Question 24

Profit sharing (Disadvantages)

Answer 24

• If a business makes low profits, no profit sharing can be done, leading to employee disappointment
• The higher workers will receive a higher share and lower worker would receive a lower share, which would cause bad feeling among the lower paid workers who thought they have worked just as hard.

Question 25

Fringe Benefits

Answer 25

• Company vehicle
• discounts on business products
• health care paid for
• children’s edu fees
• Free accommodation
• Pensions
• Free holidays/trips

Question 26

Job satisfaction

Answer 26

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

Question 27

Job Rotation

Answer 27

involves workers swapping around and doing each specific task for a limited time and then changing back around.

Question 28

Job enrichment

Answer 28

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

Question 29

Teamworking

Answer 29

involves using groups of workers and allocating specific tasks and responsibilities to them.

Question 30

Training

Answer 30

is the process of improving a worker’s skills

Question 31

Promotion

Answer 31

is the advancement of an employee in an business to a higher job / managerial level