2.1 Motivating employees

Question 1

What is motivation?

Answer 1

Motivation is the reason or drive that makes workers behave in certain ways to achieve business goals.

Question 2

What are the benefits of a well-motivated workforce?

Answer 2

Improved productivity, lower absenteeism, lower labour turnover, better-quality work.

Question 3

What is labour productivity?

Answer 3

The output produced per worker.

Question 4

What is absenteeism?

Answer 4

When workers do not attend work without a good reason.

Question 5

What is labour turnover?

Answer 5

The rate at which workers leave a business.

Question 6

What is Maslow’s hierarchy of needs?

Answer 6

A theory that states humans are motivated by five levels of needs: physiological, safety, social, esteem, and self-actualization.

Question 7

What is Taylor’s theory of motivation?

Answer 7

Taylor believed money is the main motivator and introduced the piece-rate system to increase worker output.

Question 8

What is Herzberg’s Two-Factor Theory?

Answer 8

A theory that says motivation is influenced by hygiene factors (to avoid dissatisfaction) and motivators (to increase effort).

Question 9

Advantages of Maslow’s hierarchy of needs:

Answer 9

Managers can use it to meet workers’ different needs

Helps set goals and objectives

Explains different types of motivation (not just money)

Question 10

Disadvantages of Maslow’s hierarchy of needs:

Answer 10

Hard to know which level a worker is on

Doesn’t include money as a motivator

Self-actualisation is hard to achieve

Not all needs are always relevant

Question 11

Advantages of Taylor’s theory:

Answer 11

Increases productivity by rewarding output

Helps businesses reduce waste and save time

Question 12

Disadvantages of Taylor’s theory:

Answer 12

Too simple – money isn’t the only motivator

Boring, repetitive tasks reduce satisfaction

Hard to measure output in some jobs

Question 13

Advantages of Herzberg’s theory:

Answer 13

Separates what causes satisfaction and dissatisfaction

Helps create a more motivating work environment

Can improve employee engagement

Question 14

Disadvantages of Herzberg’s theory:

Answer 14

Not all workers are motivated by the same things

Some hygiene factors are costly

Can be hard to measure or apply practically

Question 15

What is time rate?

Answer 15

Pay based on the number of hours worked.

Question 16

Advantages of time rate:

Answer 16

Workers are paid fairly for time given

Easy to calculate wages

Question 17

Disadvantages of time rate:

Answer 17

Doesn’t reward productivity

Workers may work slowly and still get paid the same

Question 18

What is salary?

Answer 18

Fixed yearly pay given in equal monthly parts.

Question 19

Advantages of salary:

Answer 19

Encourages job stability

No need to clock in/out

Predictable income

Question 20

Disadvantages of salary:

Answer 20

Not linked to performance

No extra pay for overtime

Question 21

What is piece rate?

Answer 21

Pay based on number of items made.

Question 22

Advantages of piece rate:

Answer 22

Encourages high output

Workers are rewarded directly for their effort

Question 23

Disadvantages of piece rate:

Answer 23

Quality may suffer

Unfair if machines/tools vary

Stressful if output is hard to measure

Question 24

What is commission?

Answer 24

Pay based on value of sales made.

Question 25

Advantages of commission:

Answer 25

Encourages sales effort Workers are rewarded based on performance

Question 26

Disadvantages of commission:

Answer 26

Uncertain income May pressure workers to oversell Can cause competition between workers

Question 27

What is a bonus scheme?

Answer 27

Extra payment for achieving a target.

Question 28

Advantages of bonus scheme:

Answer 28

Encourages goal achievement Links reward to performance

Question 29

Disadvantages of bonus scheme:

Answer 29

Demotivating if target is unrealistic Can cause jealousy among workers

Question 30

What are fringe benefits?

Answer 30

Non-cash rewards like company car or health insurance.

Question 31

Advantages of fringe benefits:

Answer 31

Help attract and retain staff Make workers feel valued Improves status

Question 32

Disadvantages of fringe benefits:

Answer 32

Not linked to performance Costly to the business May cause jealousy

Question 33

What is profit sharing?

Answer 33

A share of the business’s profit is paid to employees.

Question 34

Advantages of profit sharing

Answer 34

Encourages teamwork Motivates staff to help the business succeed

Question 35

Disadvantages of profit sharing:

Answer 35

Less profit available for reinvestment May reduce dividends for shareholders Unfair if not all workers contribute equally

Question 36

What is job rotation?

Answer 36

Moving workers between tasks to reduce boredom.

Question 37

Advantages of job rotation:

Answer 37

Adds variety Increases skills Reduces boredom

Question 38

Disadvantages of job rotation:

Answer 38

Can be disruptive Some workers prefer routine Takes time to train for new tasks

Question 39

What is job enlargement?

Answer 39

Giving more tasks to a worker to add variety.

Question 40

Advantages of job enlargement:

Answer 40

Makes jobs more interesting Develops worker skills

Question 41

Disadvantages of job enlargement:

Answer 41

Can overwhelm staff Not always motivating if tasks are repetitive

Question 42

What is job enrichment?

Answer 42

Giving workers more challenging tasks to use their full abilities.

Question 43

Advantages of job enrichment:

Answer 43

Makes work more satisfying Helps workers grow and learn Increases motivation

Question 44

Disadvantages of job enrichment:

Answer 44

Some workers may feel stressed Requires training Hard to apply in all jobs

Question 45

What is job redesign?

Answer 45

Changing a job to make it more interesting or challenging.

Question 46

Advantages of job redesign:

Answer 46

Increases motivation Encourages new skills May improve performance

Question 47

Disadvantages of job redesign:

Answer 47

Costly Not all jobs can be redesigned easily

Question 48

What are quality circles?

Answer 48

Small groups of workers who meet to solve problems and suggest improvements.

Question 49

Advantages of quality circles:

Answer 49

Improves teamwork Involves workers in decisions Can improve efficiency

Question 50

Disadvantages of quality circles:

Answer 50

Takes time Needs training Ideas may not be used

Question 51

What is team working?

Answer 51

Groups of employees work together to complete a task.

Question 52

Advantages of team working:

Answer 52

Builds cooperation Shares skills and ideas More job satisfaction

Question 53

Disadvantages of team working:

Answer 53

Conflict may arise Some workers prefer working alone Not all teams work well

Question 54

What is delegation?

Answer 54

Giving a task to a lower-level worker.

Question 55

Advantages of delegation:

Answer 55

Builds trust Frees up managers Develops workers’ skills

Question 56

Disadvantages of delegation:

Answer 56

Tasks may be done poorly Workers may feel pressured Manager loses some control

Question 57

When is financial motivation most effective?

Answer 57

When workers are in lower-skilled jobs or are motivated by money (e.g. factory workers, salespeople).

Question 58

When is non-financial motivation better?

Answer 58

When employees are skilled, creative, or value recognition, variety, and responsibility (e.g. designers, teachers, managers).

Question 59

Why would a business use both financial and non-financial motivators?

Answer 59

Because different employees are motivated by different things, and a mix keeps the whole workforce motivated.

Question 60

What motivation method would suit a supermarket cashier?

Answer 60

Time rate or piece rate (financial), with job rotation or team working (non-financial).

Question 61

What motivation method would suit a salesperson?

Answer 61

Commission or bonuses to reward sales.

Question 62

What motivation method would suit a software developer?

Answer 62

Job enrichment, job redesign, and fringe benefits like flexible hours or remote work.

Question 63

What motivation method would suit factory workers?

Answer 63

Piece rate or bonuses, possibly job rotation to reduce boredom.

Question 64

Why might a business prefer non-financial motivation over financial?

Answer 64

It’s cheaper long-term Builds loyalty and teamwork Improves job satisfaction Reduces dependence on money as a motivator

Question 65

Why can relying only on financial motivation be risky?

Answer 65

Workers may only work for money Can increase costs May not create long-term loyalty Might ignore other needs like recognition and variety

Question 66

What happens when workers are not motivated?

Answer 66

Lower productivity Higher absenteeism More mistakes High labour turnover Poor customer service