Motivation Flashcards
Motivation
the inducement and stimulation of people to pursue mutual goals and objectives
Absenteeism
occurs when an employee is not present at his or her place of work
Retention
employees staying loyal to a business even if there is a tempting job offer due to being motivated
Two advantages of high retention rates:
1) avoids cost of recruiting and selecting new employees
2) removes the need to train new employees which can be costly
Advantages of motivated employees (there are 5):
1) Improved work performance - increased productivity
2) Improved employee retention rates
3) Improved relations between management and employees
4) Lower levels of absenteeism
5) Improved quality and customer service
Effects of high absenteeism:
1) the business may have to pay an employee who is not at work and their replacement
2) the replacement may be inefficient with lower levels of productivity
3) customers may be dissatisfied with the quality of the product supplied by the replacement so may result in buying from a competitor
Financial methods of motivation:
Salaries
Wages
Time rate
Piece rate
Commission and bonuses
Profit sharing
Fringe benefits
Fringe benefits
the bonuses that employees may receive in addition to their pay, for example, a company car
Overtime
a higher hourly rate that is paid to employees for any additional hours worked
National Living Wage
an hourly pay rate which is set by the government
Piece Rate
a method of payment under which employees are paid according to the quantity of products they produce
Commission
a payment to an employee based on achieving a certain level of sales
Bonus
an additional payment to an employee for achieving an agreed target
Job enrichment
designing a job to give interesting and challenging tasks
Job enlargement
redesigning a worker’s job so that it contains more tasks of a similar level of complexity
