4.3 Motivating employees

Question 1

Importance of motivating staff

Answer 1

• Higher productivity.
• Improved quality
• Higher staff retention.
• Better customer service.

Question 2

Financial methods of motivation.

Answer 2

• Salary
• Wage
• Profit sharing
• Commission

Question 3

Non-financial methods of motivation.

Answer 3

• Management styles (e.g. authoritarian/autocratic vs democratic).
• Training (feel more important).
• Delegation (feel more responsible).
• Fringe benefits (goods/services provided with the business e.g. car for delivery).