motivational strategies Flashcards
performance related pay
what is performance related pay?
how does it motivate employees?
- the monetary compensation provided to employees relative to how their performance is assessed according set standards
employees who achieve the set standard or reach above the standard will be motivated to work hard at their job and perform well in order to receive the financial incentive
performance related pay
what are monetary ways to motivate employees?
and when would they be rewarded?
- pay increase: when an employee makes a significant contribution to the business’ objectives
- commission: pain when a sale is accomplished (fixed percentage)
- share plan: shares given to employees, gaining additional income
- bonuses: one-off payment, reward
- profit sharing: business offering a percentage of profits to employees as an incentive
- gain sharing: rewarding employees for making suggestion to improve productivity
performance related pay
what are the impacts on short term motivation?
pay increases, bonuses and commissions can influence as they provide tangible reward for effort and/or commitment to the business.
commissions are usually paid when earned, bonuses and pay increase occur on an annual basis.
when these rewards become an ongoing strategy they can provide longer term motivation
performance related pay
what are the impacts on long term motivation?
- Share plans, profit sharing and gainsharing are longer term motivation as the rewards may take a number of years to be achieved
- Share rise and fall over time, but generally trend upwards over a longer period
- Profits are not guaranteed on a year by year basis
- Productivity improvements may also take time
performance related pay
what are advantages of performance related pay?
- improves employee performance as they want higher income
- best performers are rewarded
- can attract high quality employees
performance related pay
what are disadvantages of performance related pay?
- can get competitive and undermine teamwork
- can be expensive
- challenging to create fair system of rewards
career advancement
what is the motivational strategy: career advancement?
- the assignment of more responsibility/authority to employees or the promotion of employees to positions that brings rewards such as:
- increased salary
- fringe benefits
- increased responsibilities
career advancement
what is the effect on short term motivation?
changing roles can bring about an increase pay and job security
career advancement
what is the effect on long term motivation?
- opportunity to be involved in decision making and be a part of a leadership role (social per Maslow), gaining responsibility can increase self esteem and create creative and interesting work (self actualisation)
- all 4 drives of Lawrence and Nohria’s theory can be achieved through promotion and advancement
career advancement
what are advantages?
- attracts and retain employees
- creates motivationas employees see their colleagues being promoted
- business has knowledge on employee’s ability
career advancement
what are disadvantages?
- opportunity not available to everyone
- overlooked employees feel angry
- employees may leave if there is limited opportunity
support strategy
what is support strategy?
- assistance/service the business provides to help employees with difficulties that may impede their performance
support strategy
what is a short term motivation?
- Providing support and encouragement for employees can motivate them to do better, when an employee has done a particularly good job, or achieved a pre-arranged goal or target.
support strategy
what is a long term motivation?
- A supportive workplace can have a positive effect on the employee’s long-term motivation, as it encourages a sense of loyalty, and willingness to remain in that work environment.
support strategy
what are advantages?
- creates positive wor environment
- improve wellbeing, job satisfaction, loyalty
- help make the most of the employee
