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.