Motivational Strategies Flashcards
Performance Related pay
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.
what does performance-related pay come in?
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
Factors of performance-related pay: pay rise
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.
Performance related pay-Impact on short-term motivation
-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.
Performance related pay-Impact on long-term
-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
Advantages of performance related pay
-improves employees performance as they chase higher income
-best performers are rewarded
-can attract higher quality staff
Disadvantages of performance related pay
-May develop a competitive culture, undermining teamwork.
-can be expensive
-challenging to create a fair/equitable system of rewards.
Factors of performance related pay: Bonus
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.
factors of performance related pay: Commission
an amount paid for accomplishing a sale- usally a fixed percentage of the sale price and paid to the salesperson who accomplished the sale.
Performance related pay: Share plan
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.
factors of Performance related pay: Profit sharing
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.
factors of performance related strategies: Gainsharing
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.
Career Advancement
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.
Career Advancment- effect on short term motivation
-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
Career Advancement- effect on long term motivation
-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.
Advantages of career advancement
-Helps attract and retain quality employees
-create motivation for others as they see colleagues promoted
-Business has knowledge on the stability of the employee
Disadvantages of Career Advancment
-hard to provide opportunities for all employees
-Resentment of overlooked employees
-if opportunities are limited, employees may leave
Support Strategies
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.
Support Strategies: Short and long term motivation
-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.
Advantages of Support strategies
-create positive work environment
-Can improve wellbeing, job satisfaction and loyalty.
-can help get the best out of its employees.
Disadvantages of Support Stratgies
-hard to provide approrpiate support for nall employees
-can be costly
-Employees don’t take advantage of supports available
Sanction Strategies
-A form of penalty or discipline imposed on an employee for poor performance
What does Sanction include?
-Verbal warning
- Reassignment of duties
-demotion
-reduction in salary
-termination
Sanction effect on short and long-term motivation
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.
Advantages of Sanction
-Can deter negative behaviours and reinforce positive ones
-Creates a sense of accountability around expectations
-Can change behaviour quickly
Disadvantages of Sanction
Can create a culture around fear and mistrust
may cause resentment among employees
Can create a negative environment over the long term
