22 Methods of motivation at work

Question 1

Define renumeration

Answer 1

Money paid to employees for their work and services

Question 2

Define time rate

Answer 2

Payment system based on the amount of time employees spend at work

Question 3

Define gross pay

Answer 3

Pay before deduction such as tax

Question 4

Define net pay

Answer 4

Pay after deductions

Question 5

Define overtime

Answer 5

Rate of pay above the normal rate to compensate employees for working extra hours

Question 6

Define salary

Answer 6

Pay, usually to non-manual workers, expressed as a yearly figure but paid monthly

Question 7

When would using time rates be suitable

Answer 7

When it is difficult to measure output of workers

Question 8

Explain one advantage of using time rates

Answer 8

Results in better output

Because workers may require a high level of skill, care and accuracy
Leads to avoiding rush
Therefore preventing danger and costly errors

Question 9

Explain one disadvantage of using time rates

Answer 9

Productivity is not rewarded

Because pay is just based on time spent at work
Leads to some workers possibly being unproductive and inefficient
Therefore waste in labour costs for those who don’t do work

Question 10

Define piece rate

Answer 10

Payment system where workers receive an amount of money for each unit produced

Question 11

Explain one advantage of using piece rates

Answer 11

Rewards productive workers

Because those who produce more, earn more
Leads to workers being more focused and determined to finish tasks
Therefore more output created in a shorter time

Question 12

Explain one disadvantage of using piece rates

Answer 12

Quality of output may suffer

Because workers my work too fast
Leads to possibly making mistakes
Therefore an increase in costs for the business

Question 13

Define performance-related pay

Answer 13

Payment system designed for non-manual workers where pay increases are given if performance targets are met

Question 14

When would using performance-related pay be suitable

Answer 14

Workers whose output is difficult to measure

Question 15

Explain one advantage of performance-related pay

Answer 15

Motivates workers

Because they are paid more as a reward for meeting targets
Leads to workers putting more effort in working hard
Therefore better output produced

Question 16

Explain one disadvantage of performance-related pay

Answer 16

Some workers may feel that it is unfair

Because some appraisers may be inconsistent (e.g. giving rewards to close friends)
Leads to staff feeling less motivated to put effort
Therefore decrease in quality of output

Question 17

Define bonus systems

Answer 17

Payment in addition to basic wage for reaching targets or in recognition for service

Question 18

Explain one advantage of bonus systems

Answer 18

Saves on labour costs

Because bonuses are only paid more if targets are met
Leads to money only being paid if it is earned
Therefore motivates employees to work hard to reach targets

Question 19

Explain one disadvantage of bonus systems

Answer 19

Can create unrealistic expectations among employees

Because substantial bonuses can only paid when profits are high
Leads to employees feeling dissapointed if they earn bonuses for 1 year, and don’t a next year
Therefore lack of motivation to put effort

Question 20

Define commision

Answer 20

Payment based on the value of sales, usually a percentage of sales made

Question 21

When would using commisions be suitable

Answer 21

To reward sales staff

Question 22

Explain one advantage of using commisions

Answer 22

Encourages employees to work harder

Because income is nothing if no sales are made
Leads to no money being wasted on employees who aren’t improving the business
Therefore saving costs

Question 23

Explain one disadvantage of using commisions

Answer 23

It takes time to build up to livable wages

Because employees are paid based on sales
Leads to employees feeling possibly demotivated to work
Therefore less quality output produced

Question 24

Explain one advantage of using promotion to motivate employees

Answer 24

Employees will work focus on working harder

Because they want to have a higher pay
Leads to better output and efficiency
Therefore more sales made

Question 25

Explain one disadvantage of using promotion to motivate employees

Answer 25

Business must use internal recruitment Because employees need opportunities to have better job roles Leads to possible increase in failure rates as internal promotion means less outside knowledge Therefore damaged output and efficiency

Question 26

Define fringe benefits

Answer 26

Perks over and above the normal wage or salary

Question 27

Explain one advantage of using fringe benefits

Answer 27

Productivity may improve Because there is less staff absence Leads to workers looking forward to coming to work to enjoy their perks Therefore employees working well and all tasks being complete in time

Question 28

Define job rotation

Answer 28

To allow employees to change jobs from time to time

Question 29

Explain one advantage of using job rotation

Answer 29

Prevents employees from feeling bored Because they can change jobs from time to time Leads to being more engaged and focused at work Therefore better efficiency and output

Question 30

Explain one disadvantage of using job rotation

Answer 30

Training costs will rise Because business has to train employees to do a range of different jobs Leads to less money to be reinvested into the business to improve Therefore a disadvantage over competitors

Question 31

Define job enrichment

Answer 31

Way of making job more challenging and rewarding by assigning tasks that require more responsiblity and creativity

Question 32

Explain one advantage of job enrichment

Answer 32

Makes job less boring and unfulfilling Because employees get to do tasks that require creativity and responsiblity Leads to employees feeling more valued Therefore better output and labour productivity

Question 33

Explain one disadvantage of job enrichment

Answer 33

May leave employees displeased Because they may have extra work without resources and training Leads to feeling unmotivated Therefore a negative impact on labour productivity

Question 34

Define autonomy

Answer 34

Giving workers the authority to make choices and decisions about the way they work

Question 35

Explain one advantage of using autonomy

Answer 35

Makes employees feel more valuable Because they are trusted to make decisions for themselves Leads to commitment in doing tasks in the best way possible Therefore better output and productivity

Question 36

Explain one disadvantage of using autonomy

Answer 36

Some employees may respond negatively Because it may seem as a way of squeezing more out of workers Leads to feeling unmotivated to do tasks themselves Therefore less productivity