Motivation strategies

Question 1

performance related pay

Answer 1

Performance related pay is a financial reward to employees whose work is considered to have reached the required standard or even above standard.
• It aims to encourage employees to perform a particular task or reach a specific goal
This can come in the form of:
o Pay increase – receiving an ongoing pay rise
o Bonuses – one off payment
o Commissions – receiving a percentage of each sale made
o Share plans – receiving shares in the business

Question 2

Advantages & Disadvantages of performance related pay

Answer 2

Advantages:
• can provide immediate motivation
• Rewards the best performers in the business
• Clear criteria on how to achieve their incentive

Disadvantages:
• Generates a Competition based culture
• Can cause resentment from some employees
• Often a short-term motivator

Question 3

Short and Long term of performance related pay

Answer 3

Short:
Possibility of more money motivating Employees in the short-term to work Harder to achieve set standards

Long:
When financial rewards become an ongoing strategy, long term motivation can result

Question 4

Career advancement

Answer 4

Where an employee is given the opportunity to take on greater responsibility in the business.
• It is a non-financial strategy that can increase in employees performance through promotions or more challenging roles.
• The opportunity to progress to a higher position can motivate employees who want more responsibility and authority in the workplace.

A manager can use this by:
o Ensuring that employees are aware of any promotion criteria
o Ensuring that employees are aware of any senior positions which need to be filled
o Promoting from within the business to ensure that employees are constantly working towards career progression

Some benefits include:
o	Increase pay
o	Improved self-esteem
o	Challenge and experience for employees
o	Status

Question 5

Advantages and Disadvantages of career advancement

Answer 5

Advantages:
• Helps business retain talented employees
• Employees are awarded for their past performances
• Business knows the values, skills and potential of the employees they are promoting

Disadvantage:
• May cause resentment from those overlooked for promotion
• Lack of outside perspective brought into the business
• May create rivalries
• Difficult to promote all employees

Question 6

Short and Long term of career advancement

Answer 6

Short:
Providing the possibility of a promotion can improve motivation in the short-term, as employees strive to take on the increased responsibility

Long:
Employees may see the position they would like to be in the long term and set out a career path

Question 7

Investment in training

Answer 7

Training is where an employee learns and improve their skills so they are able to perform their job to a higher level.
• It is a non-financial strategy that equips employees with expertise needed to perform at a higher level.
• It motivates employees by providing opportunities for employees to learn and develop their abilities and skills through their work

A manager can implement investment in training by:
• Providing employees with mentoring
• Training programs within the business
• Paying for employees to be trained by other professionals outside of the business

Question 8

Advantages and Disadvantages of Investment in training

Answer 8

Advantages:
• Shows their employees the business values them
• Can give a sense of job security for employees
• Enables employees to perform at a higher level
• Helps build a learning culture
• Helps retain valued employees

Disadvantages:
• Is often expensive
• No guarantee the employee will remain in the business
• Training may be wasted if there aren’t sufficient jobs with higher skill level required

Question 9

Short and Long term of Investment in training

Answer 9

Short:
Employees are motivated in the short-term as they have improved their skills and knowledge, allowing them to perform their jobs better.

Long:
An ongoing investment in training creates a learning environment which can lead to long-term motivation.

Question 10

Support

Answer 10

Support is individual assistance and services designed to help employees to cope with problems that may negatively impact their lives or work performance.
• Support is a non-financial strategy that aims to ensure that managers provide employees with the resources necessary to perform to a high level.
• Support motivate employees as it makes them feel valued, understood and considered by manages

Common support strategies used include:
o Comment assistance programs: confidential counselling services
o Mentoring: An experienced employee acts as a mentor for new employees
o General managerial support during difficult times

A manager can support employees by:
o Regularly checking on their health and well-being
o Praising and encouraging good performance
o Recognising achievements using awards
o Accommodating for an employee out of work obligations

Question 11

Advantages and Disadvantages of support

Answer 11

Advantages:
• Can improve mental well-being of employees
• Build a strong culture
• Can be a long-term motivator

Disadvantages:
• With EAP, manages may not know of an employee’s problems making it difficult to demonstrate emotional intelligence
• Needs a positive culture to work effectively

Question 12

Short and Long term of support

Answer 12

Short:
Can improve short-term motivation by helping employees complete task or helping them through difficult times

Long:
Can have a positive impact on the long-term motivation by creating an environment where the employee feels they belong

Question 13

Sanction

Answer 13

Sanctions are penalties imposed on an employee for poor performance or disobeying a policy
• It is a non-financial strategy that discourages employees from performing against the businesses expectations.
• Employees are motivated by sanction as they fear punishment from management

A manager can implement sanction by:
o Verbally warning employees
o Providing written warnings
o Reducing the employment hours of casual or part time employees
o Dismissing poor performing staff
o Removing any privileges and employee may have, such as holiday leave

Question 14

Advantages and Disadvantages of sanctions

Answer 14

Advantages:
• Some employees respond to sanction
• May bring other employees in line with policy through fear of sanction
• Positive reinforcement for employees that always do the right thing

Disadvantages:
• Normally only short-term motivator
• Can cause resentment from employees
• Can cause disputes and union involvement

Question 15

Short and Long term of sanction

Answer 15

Short:
Can ensure employees are motivated to do the right thing in the short-term for fear of receiving a section

Long:
Over the long term sanctions can harm relationships and damage the corporate culture

Question 16

Motivation theories

Answer 16

Employees that are motivated can increase their performance levels and improve the business competitiveness. In order to improve employee motivation, a manager must have a plan of action which encourages the achievement of tasks. Employees should be provided with the necessary resources to sustain and direct the effort towards work tasks.

o	Performance related pay
o	Career advancement 
o	Investment in training
o	Support
o	Sanction