Unit 2: Chapter 6

Question 1

Why do people work?

Answer 1

money, security, social needs, esteem needs, job satisfaction

Question 2

What is motivation?

Answer 2

why employees want to work hard and effectively for the business

Question 3

What are the benefits of well motivated workforces?

Answer 3

high productivity, willingness to accept change, better communication (two-way communication with management), low labour turnover, lower rates of absenteeism, lower rates of strike action

Question 4

What do well motivated workers lead to compared to demotivated workers?

Answer 4

motivated workers - high productivity - increased output - higher profits

demotivated workers - ineffective work - lower output - lower/no profit

Question 5

What are the 5 stages of Maslow’s Hierarchy of Needs

Answer 5

physiological needs, security needs, social needs, esteem needs, self actualisation

Question 6

What does Maslow’s Hierarchy of Needs state?

Answer 6

in order to motivate employees you must work from the bottom of the pyramid then upwards. you cannot pass a level without fulfilling the one below it. no one will care about esteem needs when their basic physiological needs aren’t met.

Question 7

What was FW Taylor’s Theory?

Answer 7

employees can be motivated by personal gain, money is motivation. in factory workers. if you pay more money, you get more productivity.

Question 8

What are the criticisms of Taylor’s theory?

Answer 8

ideas too simplistic, if employee is unfulfilled in other ways they won’t care about money, practical problems (can’t always measure some employees output)

Question 9

What are the advantages of Taylor’s theory?

Answer 9

it broke jobs into tasks and time, set targets to achieve. it was successful as higher pay led to higher productivity.

Question 10

What are the disadvantages of Taylor’s theory?

Answer 10

it may diminish quality over quantity, designed for factory workers and won’t work in other scenarios

Question 11

What was Herzberg’s theory?

Answer 11

hygiene factors must be met before motivators are given.

Question 12

What are the 2 sets of need said by Herzberg?

Answer 12

basic needs - hygiene factors

grow psychologically - motivators

Question 13

What are the motivators in Herzberg’s theory?

Answer 13

achievement, recognition, personal growth/development, advancement/promotion, work itself

Question 14

What are the hygiene factors in Herzberg’s theory?

Answer 14

status, security, work conditions, company policies and administrations, relationship with supervisor, relationship with subordinates, salary

Question 15

What are the 3 motivation theories?

Answer 15

Taylor (1911) - Money is the Main Motivator
Herzberg (1959) - Hygiene and Motivation
Maslow (1954) - Hierarchy of Needs

Question 16

What are the two types of motivation?

Answer 16

financial and non-financial motivation

Question 17

What are wages and their pros and cons?

Answer 17

payment for work, usually paid weekly

paid on a regular basis, overtime gets extra money which acts as an incentive to work more

you have to calculate it every week and it takes time so normally hire a wage clerk

Question 18

What are the two ways to calculate wage?

Answer 18

time rate and piece rate

Question 19

What is time rate and its pros and cons?

Answer 19

amount paid to an employee for one hour of work

easy to calculate and worker knows how much they’ll be paid

have to be recorded and calculated on timesheet, good and bad workers paid same, supervisors needed, clock-in system needed

Question 20

When is time rate used?

Answer 20

when it is difficult to measure the output of a worker

Question 21

What is piece rate and its pros and cons?

Answer 21

the amount paid for each unit of output

encourages workers to work harder and faster

quantity over quality and can damage business reputation with poor products, careful workers wont make as much, if machinery breaks down then employees can’t make money

Question 22

What are salaries and their pros and cons?

Answer 22

payment for work, usually paid monthly. (office staff/management) a calculated amount of money per year divided into 12 monthly amounts

easy to calculate, employer keeps money until given each month, only calculated once a month unlike wages

workers may prefer to be paid more often, no overtime pay so workers won’t work as longer

Question 23

What are bonuses and their pros and cons?

Answer 23

an additional lump sum of money given on top of your wage/salary as a reward for good work.

gives a positive motivating effect and makes workers feel recognised

it can become expected and if not paid can cause disappointment. other workers may feel jealous.

Question 24

What is commission and their pros and cons?

Answer 24

payment in addition to salary/wage related to the number of sales made

encourages sales staff to make as many sales possible and increase revenue/commission for business and employee

only short-term revenues, pay will fall when its bad month, too much competition to get next customer

Question 25

What is profit sharing and their pros and cons?

Answer 25

system whereby a proportion of the company’s profits are paid out to employees in addition to wage/salary

it is used in service sector as it’s hard to measure outcome/contribution to shared profits

when low revenue and don’t profit share then employees disappointed, calculated based on the workers salary so higher paid workers get more profit share which is unfair to low paid workers who work just as high

Question 26

What are fringe benefits?

Answer 26

perks based on the status of your job (non-financial rewards) in order to keep your employees loyal

Question 27

What are some examples of fringe benefits?

Answer 27

company car, discounts, healthcare + student school fee + accommodation paid for, share options, expense accounts, free trips and pension paid

Question 28

What does financial motivation do?

Answer 28

provide incentives to employees to work harder through money and pay

Question 29

What does non-financial motivation do?

Answer 29

increase job satisfaction (the enjoyment derived from feeling you have done a good job), however this only occurs when employees are treated fairly first. they make jobs more interesting in hopes to motivate workers.

Question 30

What is job rotation and its pros and cons?

Answer 30

workers swapping around tasks and doing them for a specific amount of time in order to increase variety.

good for covering when workers are ill as everyone knows how to do all jobs

doesn’t make the tasks more interesting

Question 31

What is job enrichment and its pros and cons?

Answer 31

looking at jobs and adding tasks that require more skills/responsibility

workers become more committed as they get more satisfaction from their job

training may be provided which increases costs

Question 32

What is teamworking and its pros?

Answer 32

using groups of workers and allocating specific tasks and responsibilities

gives workers responsibility which increases job satisfaction and leads to job rotation and enrichment, increase sense of belonging in team

Question 33

What is training and its pros?

Answer 33

the process of improving a worker’s skills

increases motivation and a gives a sense of achievement and recognition. gives job enrichment

Question 34

What is promotion and its pros?

Answer 34

advancement of an employee in an organisation to a higher job/managerial level.

internal recruitment, people already know how business works, employees feel recognised and motivated. follows views of Maslow and Herzberg

Question 35

What is job enlargement?

Answer 35

giving someone more responsibility to make them more motivated. however this may just make them feel as they are getting extra work on their plate.