Motivational Strategies

Question 1

Performance Related pay

Answer 1

The monetary compensation provided to employees relative to how their performance is assessed according to set standards.

-employees who achieve the set standards or reach above the standard, will be motivated to work hard at their job and perform well to receive the financial incentive.

Question 2

what does performance-related pay come in?

Answer 2

Pay increase: ongoing pay rise

Bonuses: one-off payment when a target is met

Commissions: receiving a percentage of each sale made

Share plans: receiving shares in the business - hard work leads to share value increasing

Profit-sharing

Gain-sharing

Question 3

Factors of performance-related pay: pay rise

Answer 3

An employee who works hard or makes a significant contribution to the objectives of the business may be offered a pay rise- such a pay rise usually be expressed as an increase in hourly wage or yearly salary.

Question 4

Performance related pay-Impact on short-term motivation

Answer 4

-Pay increases, bonuses and commissions can influence as they provide an immediate and tangible reward for the effort and commitment to the business

-Commissions are usually paid when earned, bonuses and pay increases typically occur on an annual basis.

-When these rewards become an ongoing strategy, they can provide longer-term motivation for employees.

Question 5

Performance related pay-Impact on long-term

Answer 5

-Share plans, profits, sharing and gainsharing are longer-term motivations as the rewards may take a number yrs to be achieved.

-Shares rise and fall overtime, but generally trend upwards over a longer period.

-Profits are not guaranteed on a yr by yr basis

-Productivity improvements may also take time

Question 6

Advantages of performance related pay

Answer 6

-improves employees performance as they chase higher income
-best performers are rewarded
-can attract higher quality staff

Question 7

Disadvantages of performance related pay

Answer 7

-May develop a competitive culture, undermining teamwork.
-can be expensive
-challenging to create a fair/equitable system of rewards.

Question 8

Factors of performance related pay: Bonus

Answer 8

a ONE-OFF PAYMENT to a particular employee or group of ppl as a reward for meeting particular targets or some other special efforts- te amount would be given depending on the contribution to the business as perceived by the employer.

Question 9

factors of performance related pay: Commission

Answer 9

an amount paid for accomplishing a sale- usally a fixed percentage of the sale price and paid to the salesperson who accomplished the sale.

Question 10

Performance related pay: Share plan

Answer 10

a registered company can offer shares to the ownership of the business to its employees- if the bsuiness is sucessful the profit is paid as a dividend to its shareholders, so the employees will gain additional income from contributing to profits.

Question 11

factors of Performance related pay: Profit sharing

Answer 11

A business may offer a % of its profits to employees as an incentive to work hard and raise the levels of profits-usally the employees will be offered a fixed percentage of the profits so the amount will vary form yr to yr.

Question 12

factors of performance related strategies: Gainsharing

Answer 12

A method of rewarding employees for making suggestions to improve producitvity in a business, or reduce production cost-the savings acheived form these improvement are distributed to the employees.

Question 13

Career Advancement

Answer 13

the assignment of more repsonsibilities/authority to employees or the promotion of employees position that brings rewards such as increased salary, firnge benefits and increased responsibilities.

Question 14

Career Advancment- effect on short term motivation

Answer 14

-Changing roles can bring about increased pay and job security (lower order needs per Maslow)

-The possibility of a promotion can improve motivation, employees strive to take on increased responsibility

Question 15

Career Advancement- effect on long term motivation

Answer 15

-Changing roles can allow for the opportunity to be involved in the decision-making process part of the leadership role (social per Maslow), gaining responsibility can increase self-esteem and provide creative and interesting work (self actualization)

-all four drives of Lawernce and Norhia can be achieved through promotion and career advancment.

Question 16

Advantages of career advancement

Answer 16

-Helps attract and retain quality employees
-create motivation for others as they see colleagues promoted
-Business has knowledge on the stability of the employee

Question 17

Disadvantages of Career Advancment

Answer 17

-hard to provide opportunities for all employees
-Resentment of overlooked employees
-if opportunities are limited, employees may leave

Question 18

Support Strategies

Answer 18

The assistance or services (such as counselling and mentoring) provided by the business to help employees cope with difficulties that may impede their work performance.

Question 19

Support Strategies: Short and long term motivation

Answer 19

-Providing support and encouragement for employees can motivate them to do better, and should always apply when an employee has done a particularly good job or achieved a pre-arranged goal or target.

-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.

Question 20

Advantages of Support strategies

Answer 20

-create positive work environment
-Can improve wellbeing, job satisfaction and loyalty.
-can help get the best out of its employees.

Question 21

Disadvantages of Support Stratgies

Answer 21

-hard to provide approrpiate support for nall employees
-can be costly
-Employees don’t take advantage of supports available

Question 22

Sanction Strategies

Answer 22

-A form of penalty or discipline imposed on an employee for poor performance

Question 23

What does Sanction include?

Answer 23

-Verbal warning
- Reassignment of duties
-demotion
-reduction in salary
-termination

Question 24

Sanction effect on short and long-term motivation

Answer 24

Fear of sanction can be a motivating factor for some employees, but will only generally influence lower-order needs of Maslow hierarchy, such as physiological or safety and security needs.

Question 25

Advantages of Sanction

Answer 25

-Can deter negative behaviours and reinforce positive ones
-Creates a sense of accountability around expectations
-Can change behaviour quickly

Question 26

Disadvantages of Sanction

Answer 26

Can create a culture around fear and mistrust

may cause resentment among employees

Can create a negative environment over the long term