unit 8 - sustainability 2

Question 1

what are signs of motivation

Answer 1

• higher productivity
• higher quality of good or service
• employees stay longer
• lower levels of absenteeism

Question 2

signs of demotivation

Answer 2

• employees leaving
• poor customer service
• lower productivity

Question 3

what are the types of financial rewards (8)

Answer 3

• salary
• wage (piece/time rate)
• commission
• performance related pay (PRP)
• profit-related pay
• employee share ownership schemes
• fringe benefits (perks)

Question 4

salary definition

Answer 4

fixed annual income that is usually paid monthly

Question 5

wage (piece/time rate)

Answer 5

an employee is paid per __

time rate - period of time worked
piece rate - unit of production

Question 6

piece rate pros and cons

Answer 6

pros
- rewards hard workers
- encourages higher productivity
cons
- encourages speed over quality
- less income stability for employees

Question 7

commission definition

Answer 7

an amount of money paid to an employee as a fee or percentage for a task or for bringing a new business

Question 8

commissions pros and cons

Answer 8

pros
- encourages employees to sell more
- rewards hard work and selling skill
- helps business control expenses
cons
- aggressive selling techniques
- might worsen team spirit - competing for the same customers
- less income stability for employees

Question 9

performance related pay (PRP) definition

Answer 9

employees are rewarded financially according to meeting certain objectives at work

requires target-setting and appraisal (eg. good = 5% bonus excellent = 10% bonus etc. )

Question 10

Performance-related pay (PRP) pros and cons

Answer 10

pros
- rewards higher performers
- can identify lower performers
cons
- performance might be difficult to measure
- might worsen team spirit

Question 11

profit-related pay definition

Answer 11

employees are financially rewarded according to the financial performance of the business

Question 12

employee share ownership schemes definition

Answer 12

employees are financially awarded by being given shares or share options in the business

• share options mean that shares can be bought at a certain price

Question 13

profit-related pay and share ownership pros and cons

Answer 13

pros
- employees feel connected to the success of the business
- encourages employees to stay longer to receive benefits
cons
- dilutes ownership of the business
- does not identify individual high performance

Question 14

fringe benefits (perks) definition

Answer 14

non-cash forms of financial rewards
- financial benefits to employees beyond salaries and wages
- eg. company car, insurance, pensions, low-interest loans

Question 15

what are the non-financial rewards (6)

Answer 15

• job enrichment
• job enlargement
• job rotation
• empowerment
• purpose/the opportunity to make a difference
• teamwork

Question 16

non-financial rewards definition

Answer 16

method of motivating employees that do not involve monetary payments

Question 17

job enrichment definition

Answer 17

changing an employee’s job to include more challenging and demanding tasks (adding new and more complex tasks)

Question 18

job enlargement definition

Answer 18

changing an employee’s job by adding more tasks similar to what they are already doing

Question 19

job rotation definition

Answer 19

moving an employee to different jobs in the business at a similar level of complexity

Question 20

empowerment definition

Answer 20

allowing employees some autonomy over their jobs - what they do and how they do it

Question 21

what are the different types of training (3)

Answer 21

• induction training
  the training recieved when starting a new job
• on-the-job training
  training of employees that takes place in the workplace
• off-the-job training
  training of employees that takes place away from the workplace

Question 22

motivational theories (7)

Answer 22

• Taylor
• Maslow’s heirarchy of needs
• Hertzberg’s Motivation Theory
• McClelland’s Motivation Theory
• Deci and Ryan’s Motivation Theory
• Adam’s Equity Theory
• Vroom’s Expectancy Theory

Question 23

Taylor Motivation Theory

Answer 23

• people are motivated by money

1. based on maximising productivity by experimenting with different ways to perform a task known as ‘scientific management’
2. Belief in the ‘economic man’ - man is solely motivated by money
3. payment should be linked directly to output through a piece rate system (paid per piece of production)

Question 24

Maslow’s Motivation Theory
(Maslow’s Hierarchy of Needs)

Answer 24

1. based on the theory that we are motivated by what we need
2. after a need has been satisfied it will no longer motivate us so we must aim higher
3. once all needs on a level have been met - we start to aim for needs at the next level

(beyond Taylor and just money)