Unit 2 - People in business (Importance of motivation)

Question 1

Motivation

Answer 1

Desire to achieve a goal. Some people are self-motivated but some need encouragement.

Question 2

Why employee motivation is important

Answer 2

Workers are motivated to work hard and therefore business output and profit increases. Three reasons why it is important:
- Easier to attract employees
- Easier to retain employees
- Higher labour productivity

Question 3

Easier to attract employees

Answer 3

If employees motivated and workplace is cheerful then good job candidates are likely to accept a job there which gives the business a competitive edge. Can also increase business reputation.

Question 4

Easier to retain employees

Answer 4

More likely to profit if the business keeps it’s workers. If turnover (rate at which employees leave a business) is lower it can reduce costs.

Question 5

Higher labour productivity

Answer 5

Staff need to be motivated because they will be cooperative and produce higher output. If not employees might take time off work which decreases the productivity.

Question 6

How business can influence motivation

Answer 6

Business can change the motivation of employees by supplying a number of humans needs.

Question 7

Herzberg two-factory theory

Answer 7

Herzberg discovered that certain factors at work would help give employees job satisfaction (motivators). Other factors could also leave workers with dissatisfaction (Hygiene factors). Said that businesses must find ways to motivate workers.
Motivators:
- Achieving aims
- Chance of promotion
- Responsibility
- Interesting work
- Recognition
- Personal development

Hygiene factors:
- Pay
- Working conditions
- Job security
- Quality of supervision
- Staff relationship
- Company policy

Question 8

Maslow’s hierarchy of needs

Answer 8

Shows the needs of employees. In a pyramid/hierarchy to show some things more important than others.
Hierarchy:
- Physiological needs
- Safety
- Social needs
- Esteem needs
- Self-actualisation

Question 9

Physiological needs

Answer 9

At the bottom, basic human needs to survive and the lack of physical or physiological threats.

Question 10

Safety and security

Answer 10

Need protection from threats and need a routine and familiarity.

Question 11

Social needs

Answer 11

People are social animals so they needed to socialise in groups.

Question 12

Esteem needs

Answer 12

People need to be recognised, respected and their achievements praised.

Question 13

Self-actualisation

Answer 13

At the top, people want to develop skills and develop as people. They want to reach their full potential.

Question 14

Needs and work can provide

Answer 14

Needs:
- Physiological
- Safety and security
- Love and belonging
- Esteem
- Self-actualisation
Work can provide:
- Adequate pay - subsidised meals and accommodation
- Job security and safe working conditions
- Teamworking, good communication systems and social facilities
- Praise for doing a good job; awards and rewards for achievement
- Opportunities to be challenged, be creative, solve problems and make decisions.

Question 15

Businesses should recognise

Answer 15

• Once a set of needs is satisfied it is no longer a motivator. To motivate further a new motivator must be chosen.
• If lower needs are not satisfied, then higher ones cannot be.
• If a business fails to meet a particular need then workers are not likely to be motivated.

Question 16

Taylor theory of scientific management

Answer 16

Workers were motivated by pay alone. Jobs should be broken down into simple tasks and workers should:
- Use specialist tools and equipment
- Follow a strict working procedure
- Receive proper training
- Get breaks to recover from the physical strain of work
- Be paid according to what they produce