Unit 2.3

Question 1

Importance of Motivation

Answer 1

Lower labour turnover

Higher quality work

Fewer accidents

Less absenteeism

Question 2

Explain Financial Methods of Motivation

Answer 2

Bonus – extra payment usually for reaching a target

Commission – percentage of sales made by a sales person

Fringe benefits – perks of the job e.g. company car, pension schemes

Profit Sharing – employee receives a share of the profit

Question 3

Explain Non-Financial Methods of Motivation

Answer 3

Job Rotation – move around different jobs to prevent boredom

Team Working – teams of workers with different skills and abilities responsible for organising and carrying out the job

Quality Circles – like team working but with a focus on improving quality

Flexible working – a way of working that suits an employee’s needs e.g. flexible starting time/finishing time.

Question 4

Evaluate Bonus

Answer 4

+ Helps employees be more motivated, increased productivity

• When CEOs and managers get paid large bonuses, employees might feel it is not fair, causing conflict

Question 5

Evaluate Commision

Answer 5

+ Motivates workers to make more sales to earn more commission

• Salespeople might cut corners to make sales

Question 6

Evaluate Profit Sharing

Answer 6

+It can motivate employees to work harder because the more profit the business makes, the higher their pay

• If the business doesn’t achieve high, employees might get paid little to nothing even if they worked hard

Question 7

Evaluate Fringe Benifits

Answer 7

+Boosts morale and increases loyalty and helps attract better qualifies employees

• Expensive for the business

Question 8

Evaluated Team Working

Answer 8

+ Problems can be solved quickly

• Meetings regarding team work can slow down productivity

Question 9

Evaluate Quality Circles

Answer 9

+Improves Communication skills, builds trusts,

-Distraction from main duties and may impact impact productivity