1.4.4 Motivation in Theory & Practice

Question 1

Define ‘motivation’

Answer 1

Refers to the inner desire or willingness a person has to succeed

Question 2

What impact does motivation have on productivity?

Answer 2

• Motivated employees are more productive and efficient as they are more likely to be engaged in their work and take initiative to meet or exceed their goals
• They will generate higher levels of output and quality
• Increased productivity results in higher profits for the business

Question 3

What impact does motivation have on the reliability of workers?

Answer 3

• Motivated employees are more likely to be reliable and dependable
• They take pride in their job, show up on time, meet deadlines, and take fewer sick days
• This leads to increased trust between the business and its employees and higher productivity

Question 4

What impact does motivation have on turnover rates?

Answer 4

• Motivated employees are more likely to stay with the company long-term which reduces the turnover rate
• Lower turnover rates reduce the need for costly recruitment and training

Question 5

What type of financial incentives are there to help improve performance & productivity?

Answer 5

• Piecework- Employees are paid according to the number of units or pieces they produce-
  Commonly used in manufacturing
• Commission
  A percentage of sales revenue paid to workers who sell products or services
• Bonus
  An additional payment is given to staff as a reward for achieving specific goals etc.
• Profit share
  A portion of the company’s profits are distributed among staff
• Performance-related pay
  Staff are paid based on their performance which (theoretically) motivates staff to work harder

Question 6

What non-financial incentives are there to improve performance?

Answer 6

Delegation
* Involves transferring responsibility from a manager to their staff
Consultation
* Involves seeking the input of staff on decisions that affect their work
This inclusion can increase staff engagement and commitment
Empowerment
* Involves giving staff the authority and resources to make decisions and take action without first receiving management approval
**Team Working **
* Involves creating opportunities for staff to work collaboratively
Flexible Working
* Involves providing staff with the option to work remotely, or to adjust their hours to suit their lifestyle
**Job enrichment **
* Involves adding more challenging or meaningful tasks to a job
* Staff feel more motivated and engaged, leading to improved productivity
Job rotation
* Involves moving staff between different roles in the business
Job enlargement
* Involves expanding staff’s job duties to include additional tasks or responsibilities