people in business Flashcards
reasons why people work
- Have a better standard of living: by earning incomes they can satisfy their needs and wants
2.Be secure: having a job means they can always maintain or grow that standard of living
3.Gain experience and status: work allows people to get better at the job they do and earn a reputable status in society
4.Have job satisfaction: people also work for the satisfaction of having a job
benefits of a well -motivated workforce
- high productivity
- high output per worker
- willingness
- two-way communications with management
- low labour turnover
- lower rate of absenteeism
- lower rate of strikes
the three motivation theories
1.F. W. Taylor
2.Maslow’s Hierarchy
3.Herzberg’s Two-Factor Theory
explain .F. W. Taylor theory
Taylor based his ideas on the assumption that workers were motivated by personal gains, mainly money and that increasing pay would increase productivity (amount of output produced). Therefore he proposed the piece-rate system, whereby workers get paid for the number of output they produce
explain Maslow’s Hierarchy theory
ierarchy of needs shows that employees are motivated by each level of the hierarchy going from bottom to top. Mangers can identify which level their workers are on and then take the necessary action to advance them onto the next level.
One limitation of this theory is that it doesn’t apply to every worker. For some employees, for example, social needs aren’t important but they would be motivated by recognition and appreciation for their work from seniors.
hierachy of needs
lastly - physicological needs ; wages high enough to provide weekly bills ,food , rest , recreation, shelter
fourthly- safety / security needs ; job security also safety against poverty and danger & protection on fair treatment .
thirdly - work colleagues that supports at work , friendship and sence of belonging in the team
secondly - esteem needs ; being given recognition for job welldone , having high status , independence .
firstly- self actualisation ; being promoted and given more responsibility.
what is Herzberg’s Two-Factor Theory
- first factor :hygiene factors’:
status
securitwork conditions
company policies and administration
relationship with superiors
relationship with subordinates
salary - second factor -psychologically, called the ‘motivators’:
achievement
recognition
personal growth/development
promotion
work itself
examples of financial motivators
- wages
- time rate
- piece rate
- salary
- commission
- bonus
- performance -related pay
- profit sharing
- share ownership
what is time rate
Time-Rate: pay based on the number of hours worked. Although output may increase, it doesn’t mean that workers will work sincerely use the time to produce more- they may simply waste time on very few output since their pay is based only on how long they work.
define piece rate
Piece-Rate: pay based on the no. of output produced. Same as time-rate, this doesn’t ensure that quality output is produced.
what is commission
Commission: paid to salesperson, based on a percentage of sales they’ve made. The higher the sales, the more the pay.
what is bonus
Bonus: additional amount paid to workers for good work
define Performance-related pay
Performance-related pay: paid based on performance
what is profit sharing
Profit-sharing: a scheme whereby a proportion of the company’s profits is distributed to workers. Workers will be motivated to work better so that a higher profit is made.
define share ownership
Share ownership: shares in the firm are given to employees so that they can become part owners of the company. This will increase employees’ loyalty to the company, as they feel a sense of belonging.