Unit 2: Chapter 6 Flashcards
Why do people work?
money, security, social needs, esteem needs, job satisfaction
What is motivation?
why employees want to work hard and effectively for the business
What are the benefits of well motivated workforces?
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
What do well motivated workers lead to compared to demotivated workers?
motivated workers - high productivity - increased output - higher profits
demotivated workers - ineffective work - lower output - lower/no profit
What are the 5 stages of Maslow’s Hierarchy of Needs
physiological needs, security needs, social needs, esteem needs, self actualisation
What does Maslow’s Hierarchy of Needs state?
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.
What was FW Taylor’s Theory?
employees can be motivated by personal gain, money is motivation. in factory workers. if you pay more money, you get more productivity.
What are the criticisms of Taylor’s theory?
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)
What are the advantages of Taylor’s theory?
it broke jobs into tasks and time, set targets to achieve. it was successful as higher pay led to higher productivity.
What are the disadvantages of Taylor’s theory?
it may diminish quality over quantity, designed for factory workers and won’t work in other scenarios
What was Herzberg’s theory?
hygiene factors must be met before motivators are given.
What are the 2 sets of need said by Herzberg?
basic needs - hygiene factors
grow psychologically - motivators
What are the motivators in Herzberg’s theory?
achievement, recognition, personal growth/development, advancement/promotion, work itself
What are the hygiene factors in Herzberg’s theory?
status, security, work conditions, company policies and administrations, relationship with supervisor, relationship with subordinates, salary
What are the 3 motivation theories?
Taylor (1911) - Money is the Main Motivator
Herzberg (1959) - Hygiene and Motivation
Maslow (1954) - Hierarchy of Needs
What are the two types of motivation?
financial and non-financial motivation
What are wages and their pros and cons?
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
What are the two ways to calculate wage?
time rate and piece rate
What is time rate and its pros and cons?
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
When is time rate used?
when it is difficult to measure the output of a worker
What is piece rate and its pros and cons?
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
What are salaries and their pros and cons?
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
What are bonuses and their pros and cons?
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.
What is commission and their pros and cons?
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
What is profit sharing and their pros and cons?
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
What are fringe benefits?
perks based on the status of your job (non-financial rewards) in order to keep your employees loyal
What are some examples of fringe benefits?
company car, discounts, healthcare + student school fee + accommodation paid for, share options, expense accounts, free trips and pension paid
What does financial motivation do?
provide incentives to employees to work harder through money and pay
What does non-financial motivation do?
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.
What is job rotation and its pros and cons?
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
What is job enrichment and its pros and cons?
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
What is teamworking and its pros?
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
What is training and its pros?
the process of improving a worker’s skills
increases motivation and a gives a sense of achievement and recognition. gives job enrichment
What is promotion and its pros?
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
What is job enlargement?
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.
