Motivation stratergies Flashcards
What is performance related pay
Performance related pay is a financial reward given to employees whose achievements in their work is considered to have reached a required standard.
What are examples of performance related pay
Bonuses, commission, profit sharing, gifts/holidays, share issues.
How does performance related pay motivate
This would motivate in the short term as once bonuses are given, the employee would have to continue to achieve goals in order to access further bonuses.
What are steps of performance related pay
- Goal setting/negotiation
- Performance appraisal where an evaluation takes place of the employees performance
- Application of rewards based on the level achieved
Advantages of performance related pay
Direct financial rewards will be highly motivating and will recognise performance thus leading to greater effort by the employee in attempting to meet business goals.
Those employees recognised by the performance bonuses can act as
role models to other employees and therefore motivate other workers
to try to match/exceed their performance.
Disadvantages of performance related pay
Can create a very competitive environment which can negatively
impact on customers who may be pressured by employees trying to
achieve their bonuses.
If the goals are too easy, it can cost the business a lot of money to offer performance bonuses to many employees on top of wages/salaries.
How to link performance related pay to maslow
Maslow would say that performance related pay would motivate workers at the Esteem level and assumes employees Physiological needs have been met by pay/salary and then the next level of Safety needs have been met by training and job security, and moving up to Social needs being been met by friendships. The recognition from receiving performance related pay (bonuses or commissions) would make the employee feel recognised and successful amongst their peers.
How to link performance related pay to locke and latham
Locke and Latham’s goal setting theory would be used to negotiate challenging, difficult but not overwhelming goals. A performance appraisal system would be used to measure employee performance once support and feedback is given to the employee to help them achieve the goals. Rewards and recognition are then given to the employee for the successful achievement of goals.
How to link performance related pay to lawrence and nohria
Performance related pay would meet Lawrence and Nohria’s employee’s
‘drive to acquire’. By achieving goals and being rewarded with bonuses, the employees will feel recognised as well as their personal wealth increasing. Their drive to bond may also be met if team goals are achieved creating a sense of belonging as well as improved relationships between management
and employees due to the performance appraisal process.
What is career advancement
Career advancement involves promoting an employee to a position that has greater responsibility or authority.
How does career advancement motivate
The promotion is a long term motivator due to the increase in status gained by the employee and may be accompanied by financial rewards as a result of the promotion.
Advantages of career advancement
Helps the business to retain its successful employees, retaining their skills, knowledge and experience as they remain loyal due to the reward of a promotion.
Can positively motivate other employees as they see opportunities available for promotion as their peers gain career advancement as a reward for their efforts.
Disadvantages of career advancement
Can demotivate those employees who may be overlooked for the promotion as there are often not enough promotional positions available at the time that the reward is needed leaving accomplished employees unmotivated.
It is very costly to create and provide career advancement/promotions to relevant employees as most
promotions require additional remuneration (salaries).
What is investment in training
When businesses put money in to give their employees needed training to develop their skills
How does investment in training motivate
Training workers can be motivating long term as it shows that the business is prepared to make a financial investment into helping the employee improve
their skills and knowledge by teaching them, building confidence in employees, improving their performance and increasing job security.
Advantages for investment in training
Indicates that the business values the employees and is prepared to invest in training that will give them greater
job security.
Motivates the employees who are rewarded with additional training and improves the quality, accuracy and
productivity of the employees which benefits the business by lowering expenses to increase profits.
Disadvantages of investment in training
Very expensive to provide training, especially if a large number of workers meet their targets. Training usually
requires the employee to be away from their core tasks which also reduces productivity.
If training courses are not relevant or useful to the employees position, it may be demotivating. If the employees cannot use the new skills in their current positions, the skills may be lost and money paid for training wasted.
What is support
Support motivates employees as it helps to build relationships between management and
employees as the manager will encourage and communicate with employees, giving feedback
to assist employees in achieving their goals or completing work activities.
How does support motivate
Short term motivator as it motivates employees to not let their manager down but once the support stops, it may no longer motivate
What is sanction
Sanction is a motivator by the manager applying penalties or disciplining workers in order to pressure under-performing employees to improve their performance.
How does sanction motivate
Sanction is a short term motivator to some employees who need to be threatened to maintain performance levels, however, it will rarely change a low-performing employee into a high achieving one.
Advantages of support
Support systems can build relationships between management and employee and employees who are supported will experience greater job security and motivation towards the businesses goals.
Support may take some time to apply but do not cost the business money.
Advantages of sanction
Sanctions help to clarify expectations and help to set the rules and boundaries of behaviour with employees more motivated to ‘do the right thing.’
Sanctions may take some time to apply but do not cost the business money.
Disadvantages of support
Support relies on the manager having the correct communication and interpersonal skills to coach/mentor and support employees and without these skills, the
employees may not be motivated by the manager.
Support may not be considered motivational by some workers who enjoy working independently or have superior
skills or experience.
Disadvantages of sanction
Sanctions may motivate some employees but this will only motivate in the short term and rarely will motivate an
under-performing employee into a high-performing employee. Instead breaks down the trust between employees and their managers.
