1.4.4 motivation in theory and practice Flashcards
motivation
the desire, interest or drive to want to work
factors effecting an employees motivation
- the right pay
- the work itself
- working conditions
- promotion prospects
- recognition
- colleagues
- working hours
- location
effects of low-motivated staff
- high staff turnover
- high recruitment costs
- poor quality goods/services
- low productivity
- decreased revenue and profit
financial motivators
- piecework
- commission
- bonus
- profit share
- fringe benefits
- PRP
Bonus. F
A sum of money added to a persons wages as a reward for Good performance
- why motivating for the employees: More of an incentive to work hard, as it will help improve their living standards and could afford luxury items and experiences e.g. a luxury holiday.
- Benefits to the business: The employee will have more of an incentive and be willing to work harder and increase productivity and efficiency to be able to earn extra money.
- Drawbacks to the business: Revenue will decrease because they are spending their extra profits on their employees. Once an employee receives a bonus once they may expect it again the next time they get a chance to earn a bonus
Commission. F
Payment based on sales made for non-manual workers
- why motivating for the employees: Because it means they will get more money, so they want to make more sales in order to get more money
- benefits to the business: Increase sales as people want commission. Less expensive not everyone gets commission
- drawbacks to the business: May effect team dynamic as people become too focused on earning commission
Fringe benefits. F
It is any non wage payment or benefit such as a company car, health insurance, vacation pay etc.
- why motivating for the employees: The employee gets multiple benefits for free that would have cost them money. This will give them the incentive to work hard to keep the benefits.
- benefits for the business: Effective, builds employee loyalty and makes employees want to work their way up the levels of the business.
- drawbacks for the business: It can be expensive with cars, health car etc. Employees may not need some of the benefits and they will have to cancel there original plans and this may decrease productivity.
PRP (performance related pay). F
Sum of money added to someone’s wages as a reward for good performance.
Why motivating for the employee: They will want to do their work to the best of their ability in order to get this add to their wages.
Benefits for the business: It will encourage their employees to do great work - so better quality goods or services
- drawbacks for the business: It may cost them a lot of money if a lot of people are reaching their target, reducing profit margins
Profit sharing. F
Distributing a percentage of the profits to employees
Why motivating for employees: They will have more money given to them on top of their wages, giving them more disposable income
Benefits for the business: Increase the business productivity so there are more goods and services sold
Drawbacks for the business: Reduces the profit margin for a business and less can then be distributed to shareholders
Piecework. F
Manual workers paid based on amount of units produced
Why motivating for employees: If they have a sick day they will not get paid as much so they will want to work as much as possible. It will also encourage them to produce more products
Benefits for the business: There workers will work harder to get as much done as they can. They will be more efficient, so productivity will be high.
Drawbacks for the business: Poor quality goods and more wastage if the worker is rushing to complete goods, resulting in a poor reputation for quality
Non-financial motivators:
- delegation
- empowerment
- consultation
- Team working
- flexible working
- job enrichment
- job enlargement
- job rotation
Delegation. Nf
Passing authority down the hierarchy but not responsibility
why motivating for employee: Gives them more responsibility as well as more jobs to do and makes them feel trusted by the line manager, so care is taken to do the job well
Benefits for the business: More jobs are done at once, get more done in less time, increased productivity, using slack in the workforce
Drawbacks for the business: Not their responsibility if it goes wrong so might not do such a good job
Empowerment. Nf
The passing of authority and responsibility down the chain of command.
why motivating for employee: It will give them more responsibility meaning they will want to do a good job in order to impress their superiors and help them realise the employee is ready for extra responsibilities.
Benefits for the business: Little/no costs, less people required as one employee has more responsibilities and more authority.
Drawbacks for the business: They could not perform their job well resulting in the responsibilities not being handled well
Consultation. Nf
Consultation is taking into account and asking employees their ideas before making any decisions.
Why motivating for employee: Because employees will feel more heard and included within decisions made in the business.
benefits for business: Employees will feel more confident and more appreciated by colleagues as well as different points of views which will help gain the best outcome for the business.
Drawbacks for the business: Depending on how big the business is, it may be time- consuming to gather all the employees ideas.
Flexible working. Nf
It is a way of working that suits an employee’s needs, for example having flexible start and finish times, or working from home.
Why motivation for employee: Because the employee will have more freedom and therefore feel more valued by the business.
Benefits for the business: Staff will feel more valued by the firm therefore will be more driven to help the firm succeed therefore increasing productivity and increasing sales, revenue and eventually profit which will also increase the firms market share.
Drawbacks for the business: This can result in lower productivity as some staff will not take working from home as-well as in office so therefore may get distracted which will reduce productivity and reduce sales, revenue and profit.
