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Business Studies As Levels > UNIT 2. Chapter 9: Motivation > Flashcards

UNIT 2. Chapter 9: Motivation Flashcards

1
Q

Def. Motivation

A

Motivation is the internal and external factors that stimulate people to take actions that lead to achieving a goal.

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2
Q

What are the benefits of motivated workers? (5)

A
  • Low labour turnover
  • High productivity
  • Enthusiasm to make suggestions for improvements
  • Low absenteeism
  • Prepared to accept responsibility
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3
Q

What is scientific management?

A

A method F.W. Taylor has used as establishing ideas or hypothesis, studying and recording performance at work.

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4
Q

What was Taylor’s scientific approach on finding out how to improve output per worker or general productivity? (7)

A

1) Select workers to perform the task
2) Observe and note key elements
3) Record time taken to complete tasks
4) Identify the quickest method to complete the task
5) Train all workers in this method and do not allow any alternations
6) Observe workers to see if the time is being exceeded
7) Pay workers on the basis of results - the theory of economic man

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5
Q

What is the theory of economic man and how did this affect Taylor’s research?

A

The view is that man are driven or motivated by money alone. This formed basis of Taylor’s motivational suggestion and he used ‘piece rate’ system.

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6
Q

What were the results of Taylor’s work?

A

Taylor’s approach was widely taken up in the early 20th century when flow production was being introduced, where people only had to do 1 task.

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7
Q

What was Elton Mayo’s human relation theory?

A
  • Best known for ‘Hawthorne effect’ which is research over 5 year period at Hawthorn factory.
  • Based on assumption that working conditions affected worker’s productivity
  • There was a group that experienced improvement in working conditions and a group that didn’t (control group).
  • The results were that the productivity rose in both groups so conclusion was that -> Working conditions themselves are not important in determining productivity levels, there were other motivational factors to explore.
  • Changes to rest periods, payment systems, canteen food were made at 12-week intervals.
  • Output rose far above original level => there are other factors than working conditions that increase productivity.
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8
Q

What were the conclusions of Mayo’s work? (5)

A
  • Changes in working conditions and financial rewards have little or no effect on productivity
  • When managemers consult with workers, motivation is improved.
  • Developing team spirit improves productivity
  • When workers are given some control, such as deciding on break times, motivation is improved.
  • Informal leaders of the groups can help establish goals for motivation.
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9
Q

How does Mayo’s research affect businesses today? (3)

A
  • Employee participation is now encouraged.
  • Team working can be applied in many types of modern businesses
  • Consulting with workers has opened up new fields of research for industrial psychologist.
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10
Q

What is Maslow’s hierarchy of human needs?

A

• Maslow was concerned with identifying the main needs that humans have.
• The needs from lowest to highest are:
1) Physical needs e.g food, shelter
2) Safety needs e.g Health
3) Social needs e.g Friendship
4) Esteem needs e.g Respect and status
5) Self-actualisation, reaching full potential

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11
Q

What are the limitations of Maslow’s approach? (4)

A
  • Not everyone has the same needs
  • In practice it is hard to identify whether the needs has been met.
  • Money is necessary to satisfy physical needs, but may also satisfy esteem needs
  • Self-actualisation is never permanently achieved.
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12
Q

How was the Herzberg’s ‘two factor theory’ concluded?

A

• Herzberg made research on 200 professional workers
• His research was based on questionnaires and interviews with employees to discover:
=> Factors that led employees to having good feelings about their job
=> Factors that led employees to having bad feelings about their job

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13
Q

What was the conclusion of Herzberg’s research? (5 5)

A 
'Two factor theory'
• Job satisfaction result from 5 main factors, which are called 'motivators':
1) Achievement
2) Recognition
3) The work itself
4) Responsibility
5) Advancement
• Job dissatisfaction resulted from 5 main factors, which are called 'hygiene factors', these were the factors that surrounded the job (extrinsic factors) or the work itself (intrinsic factors):
1) Company policies and administration
2) Supervision
3) Salary
4) Relationships with other workers
5) Working conditions
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14
Q

How does Herzberg’s two factor theory affect businesses today?

A

1) Better pay and working conditions do not affect motivation on their own.
2) Herzberg suggests ‘job enrichment’ for motivation because:
• Provide complete units of work for a group of people to work on 1 part of the project instead of just 1 repetitive boring job for 1 person.
• Feedback on performance - provides recognition
• A range of tasks to provide challenge and ‘self actualisation’ from Maslow.
3) Higher pay may be quickly taken for granted if the job is not rewarding.

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15
Q

What is McClelland’s motivational needs theory?

A

The motivational needs theory contains 3 types of motivational needs:
• Achievement motivation (n-ach): This person will seek for challenging goals and job advancement, has a constant need for feedback, and a need for accomplishment.
• Power motivation (n-pow): This person is authority motivated, has the desire to control others, the need to be influential and have an impact.
• Affiliation motivation (n-affil): This person has a need for friendly relationships, and tend to be good team members.

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16
Q

What is the Vroom’s expectancy theory?

A

• Vroom believes that individuals choose to behave in ways they believe will lead to outcomes they want.
• Expectancy theory is based on 3 beliefs:
1) ‘valence’ - the depth of want for an extrinsic award (e.g money) or intrinsic award (e.g satisfaction).
2) ‘expectancy’ - the degree to which people believe that putting effort will lead to high level of performance
3) ‘instrumentality’- the confidence of employees of getting what they desire.
• If one of the beliefs is missing, the employees will not be motivated.

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17
Q

What are the financial reward systems? (7)

A
  • Hourly wage rate
  • Piece rate
  • Salary
  • Commission
  • Performance related pay
  • Profit sharing
  • Fringe benefits.
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18
Q

Def. Hourly wage rate

A

Payment to a worker made for each hour worked.

This method is not linked to the level of output or effort.

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19
Q

Def. Piece rate

A

Payment to a worker for each unit produced.

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20
Q

Benefits of piece rate payment? (2)

A
  • It encourages greater effort and faster working

* The labour cost for each unit is determined in advance and this helps to set a price for the product.

21
Q

What are the disadvantages of piece rate payment? (5)

A
  • Output must be measurable and standardised.
  • May lead to falling quality and safety levels because of the rush
  • Workers may settle for a certain level of pay and may not be motivated for higher levels.
  • It provides little security over pay level, for example in the event of a production breakdown.
  • Worker are discouraged from accepting change at work as this might result in loss of pay.
22
Q

Def. Salary

A

Annual income that is usually paid on a monthly basis.

23
Q

What are the advantages of salaries? (4)

A
  • It gives security of income
  • It gives status
  • It aids in costing as salaries may not vary
  • It’s suitable for jobs when output is not measurable
24
Q

What are the disadvantages of salaries? (2)

A
  • Income is not related to productivity

* May lead to complacency of the salary earner

25
Q

Def. Commission

A

A payment to a sales person for each sale made. This method is similar to piece rate, however it has drawbacks when there’s ‘low quality production’. Team work is not induced.

26
Q

Def. Performance related pay (PRP)

A

A bonus scheme to reward staff for above average work performance. This is done by setting targets, and having annual appraisals of worker’s performance against set targets by paying bonuses.

27
Q

What are the advantages of PRP? (2)

A
  • Staff are motivated if they are seeking increases in financial rewards.
  • Target setting provides purpose and direction for employees
28
Q

What are the disadvantages of PRP? (3)

A
  • Fails to motivate staff who are not driven by financial rewards
  • Team spirit can be damaged due to competition
  • Claims of manager favouritism
  • Can lead to repressive style of management, the managers may not pay bonus if employees don’t follow.
29
Q

Def. Profit sharing

A

A bonus for staff based on the profits of the business - usually paid as a proportion of basic salary.

30
Q

What are the advantages of profit sharing? (3)

A
  • Workers want the business to succeed, reduce of conflict with managers
  • Employees are more accepting of changes that would benefit the business.
  • Does not add to business cost
31
Q

What the disadvantages of profit sharing? (5)

A
  • The reward is not directly linked to individual effort
  • May be hard to operate with firms with many employees
  • Small profit shares paid are not motivating
  • Reduces profits paid to owners and investors
  • Reduces the value of shares on the market.
32
Q

Def. Fringe Benefits

A

They are non-cash forms of rewards e.g Company cars , free insurance, private health insurance…

33
Q

What are the non-financial methods of motivation? (9)

A
  • job rotation
  • job enlargement
  • job enrichment
  • team working
  • quality circles
  • target setting
  • delegation
  • empowerment
  • participation
34
Q

Def. Job rotation

A

Increasing flexibility of the workforce and the variety of work they do by switching from one job to another. It relieves the boredom of doing one task and it can give the worker multi-skills.

35
Q

Def. Job enlargement

A

Attempting to increase the scope of a job by broadening or deepening the tasks undertaken. It is increasing the load of tasks may be due to shortage of staff, however may not achieve long term motivation.

36
Q

Def. Job enrichment

A

The three key features would be:
• Complete units of work - more challenging work offered.
• Direct feedback on performance to allow employees to see progress.
• Some tasks beyond experience that require training may be offered, to gain more skills and recognition.

37
Q

Def. Job redesign

A

Involves the restructuring of a job - usually with employees’ involvement and agreement - to make work more interesting, satisfying and challenging. It is closely linked to job enrichment. E.g Hairdressers may be given opportunity to add beauty therapy as part of the job.

38
Q

Def. Quality circles

A

They are voluntary groups of workers who meet regularly to discuss work-related problems and issues. They tend to be informal and all employees are encouraged to contribute. This induces participation and sense of involvement of employees with the business.

39
Q

Def. Worker participation

A

Workers are actively encouraged to become involved in decision making within the organisation. It gives workers opportunities to be elected as a ‘worker director’ - a representative at council meetings. However this process is time consuming.

40
Q

Def. Team working

A

Production is organised so that groups of workers undertake complete units of work.

41
Q

What are the advantages of team working? (3)

A
  • Social and esteem needs are satisfied (Maslow) and job enrichment may be achieved (Herzberg)
  • Reduction of labour turnover -> Reduction of business cost
  • Makes use of all the talents and better solutions are found
42
Q

What are the disadvantages of team working? (2)

A
  • Not everyone is a team player, these people may require training to be able to work collaboratively -> adds to business cost.
  • Teams can develop attitude that contrast the organisation’s
43
Q

Def. Target setting

A

Enables direct feedback so employees can see their progress, and it makes work more interesting and rewarding.

44
Q

Def. Delegation and Empowerment

A

Involve passing down authority and may allow workers some degree of control on how the tasks are supposed to be performed.

45
Q

The type suitable to motivating workers depends on which factors?

A
  • The type of workers
  • The profitability of the business
  • The availability of jobs
46
Q

Def. CSR

A

Corporate Social Responsibility: The concept that regards that businesses should consider the interests of society in its activities and decisions, beyond the legal obligations.

47
Q

What are the benefits and limitations of CSR projects?

A

Benefits:
• Could be used as a marketing strategy
• Adds to public relations
• Contributes to employee motivation

Disadvantages:
• Expensive -> Lower profits -> less return to the owners
• Business could use to mask their unethical or even illegal activities

48
Q

Def. Social Audit

A

A report on the impact a business has on society, usually produced annually. This can cover pollution levels, health and safety record, sources of supplies etc.

49
Q

What are the benefits and limitation of Social Audits?

A

Benefits:
• Identifies if the social responsibilities have been met
• Sets targets for improvements in social performance by comparing with other firms
• Improves business’s public image

Limitations
• It’s not independently checked, therefore might not be taken seriously by stakeholders
• It’s time consuming and expensive to produce
• Many consumers don’t care.

Business Studies As Levels (23 decks)

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