Chapter 9 Flashcards Preview

Business studies (A levels) > Chapter 9 > Flashcards

Flashcards in Chapter 9 Deck (40):

What is motivation?

Motivation means the internal and external factors that stimulate people to take actions that lead to achieving a goal


why are Motivated workers important?

1 They work more effectively and productively
2 They seem to enjoy their work and want to stay in their jobs
3 They are more willing to contribute positively to the business


How to improve output per worker? (productivity) – Taylor's scientific approach

1 Select workers to perform a task
2 Observe them performing the task and note the key elements of it
3 Record the time taken to do each part of the task
4 Identify the quickest method time
5 Train all workers in this quickest method and do not allow them to make any changes to it
6 Supervise workers to ensure that this ‘best way’ is being carried out and time them to check that the set time is not being exceeded
7 Pay workers on the basis of results based on the theory of economic man


what was The theory of ‘economic man’?

Taylor supported the view that man was driven or motivated by money alone and the only factor that could stimulate further effort was the chance of earning extra money

Taylor’s main motivational suggestion was to pay workers according to the amount of output they have produced, known as ‘piece rate’


what were the results of Taylor's work?

Taylor recommended,
1 Extreme division of labour (with workers specializing in one very narrow task)
2 Payment by piecework
3 Tight management control


what was Mayo's work based on?

Mayo’s work was initially based on the assumptions that working conditions – lighting, heating, rest periods and so on – had a significant effect on worker’s productivity


what is The Hawthorne effect?

Mayo drew the following conclusions from his work,

1 Changes in working conditions and financial rewards have little or no effect on productivity
2 When management consult with workers and take an interest in their work, the motivation is improved
3 Working in teams and developing a team spirit can improve productivity


What is Abraham Maslow's hierarchy of human needs?

1 Physical Needs:
Food; shelter; water; rest
2 Safety Needs:
Protection from threats; job security; health and safety at work
3 Social Needs:
Trust; acceptance; friendship; belonging to a group; social facilities
4 Esteem Needs:
Respect from others; status recognition of achievement
5 Self- Actualisation:
Reaching one’s full potential


how was the hierarchy interpreted?

1 Individuals 'needs start on the lowest level
2 Once one level of need has been satisfied, humans will strive to achieve the next level
3 Self- actualisation is not reached by many people, but everyone is capable of reaching their potential
4 Once a need has been satisfied, it will no longer motivate individuals to action – thus, when material needs have been satisfied, the offer of more money will not increase productivity
5 Reversion is possible – it is possible for satisfaction at one level to be withdrawn, for example a loss of job security, and for individuals to move down to the next level


how to achieve Physical needs

Income from employment high enough to meet essential needs


how to achieve Safety needs

A contract of employment with some job security – a structured organisation that gives clear lines of authority to reduce uncertainty; ensuring health and safety conditions are met


how to achieve Social needs

Working in teams or groups and ensuring good communication to make workers feel involved


how to achieve Esteem needs

Recognition for work done well – status, advancement and responsibility will gain the respect of others


how to achieve Self- actualisation

Challenging work that stretches the individual – this will give a sense of achievement; opportunities to develop and apply new skills and increase potential


Frederick Herzberg’?

Frederick Herzberg’s research was based around questionnaires and interviews with employees with the intention of discovering,

1 Those factors that led to them having very good feelings about their jobs and
2 Those factors that led to them having very negative feelings about their jobs


Herzberg’s conclusions were?

1 Job satisfaction resulted from five main factors – achievement, recognition from achievement, the work itself, responsibility and advancement. He called these ‘motivators’.
2 Job dissatisfaction also resulted from five main factors – company policy and administration, supervision, salary, relationships with others and working conditions. He termed these ‘hygiene factors’


Herzberg: The ‘two-factor’ theory 1 Motivators?

1 Sense of Achievement
2 Recognition for effort & achievement
3 Nature of the work itself
4 Responsibility
5 Promotion & improvement opportunities


Herzberg: The ‘two-factor’ theory 2 Hygiene / maintenance factors?

1 Working Conditions
2 Supervision
3 Pay
4 Interpersonal relations
5 Company policy and Admin, inc paperwork, rules, red tape


Job Enrichment?

Job enrichment aims to use the full capabilities of workers by giving them the opportunity to do more challenging and fulfilling work

The main features of job enrichment include,
1 Complete units of work
2 Feedback on performance
3 A range of tasks


The consequences of Herzberg’s two-factor theory for today’s businesses?

Pay and working conditions can be improved and these will help to remove dissatisfaction about work; but they will not, on their own, provide conditions for motivation to exist

The motivators need to be in place for workers to be prepared to work willingly and to always give of their best

Herzberg argued that motivators could be provided by adopting the principles of ‘job enrichment’.



McClelland is best known for describing three types of motivational need, which he identified in his book, The Achieving Society (1961).

1 Achievement motivation
2 Authority/power motivation
3 Affiliation motivation



Vroom suggested that individuals choose to behave in ways that they believe will lead to outcomes they value. His expectancy theory is based upon on the following three beliefs:

1 ‘Valence’ – the depth of the want of an employee for an extrinsic reward, such as money, or an intrinsic reward such as satisfaction
2 ‘Expectancy’ – the degree to which people believe that putting effort into work will lead to a given level of performance
3 ‘Instrumentality’ – the confidence of employees that they will actually get what they desire, even if it has promised by the manager


The most common payment systems are?

Hourly wage rate
Piece rate
Performance-related pay
Profit sharing
Fringe benefits


Hourly wage rate?

The hourly wage rate is payment to a worker made for each hour worked
Benefit = This payment method offers some security to workers
Drawback = This payment is not directly linked to the level of output or effort


Piece rate?

The piece rate is a payment to a worker for each unit produced

Benefit = This payment method encourages greater effort and faster working
Drawback = It may lead to falling quality and safety levels as workers rush to complete units



A salary is annual income that is usually paid on a monthly basis

Benefit = This payment method offers status and security to employees
Drawback = Income is not related to effort levels or productivity



Commission is a payment to a sales person for each sales made

Benefit = This payment method offers some security to employees
Drawback = There is a risk that sales staff could try too hard to convince a customer to buy and put so much pressure on them that they have a bad view of the whole company


Performance-related pay (PRP)?

Performance-related pay is a bonus scheme to reward staff for above-average work performance

Benefit = Staff are motivated to improve performance if they are seeking increases in financial rewards
Drawback = It can fail to motivate staff if staff are not driven by the need to earn additional financial reward


Profit sharing?

Profit sharing is a bonus for staff based on the profits of the business – usually paid as a proportion of basic salary

Benefit = They are designed to lead to higher worker effort levels
Drawback = The reward is not closely related to individual effort – why should one worker put in greater effort when everyone will be benefiting


what are Fringe benefits?

A fringe benefit is a non-cash form of reward

Examples of fringe benefits include,
1 Health insurance
2 Housing allowance
3 Pension schemes


Non-financial reward system methods?

Job rotation
Job enlargement
Job enrichment
Team working
Quality circles
Target setting


Job rotation

Job rotation means increasing the flexibility of the workforce and the variety of work they do by switching from one job to another

Benefit = Rotation may relieve boredom
Drawback = Rotation does not increase empowerment or responsibility for the work being performed


Job enlargement

Job enlargement is attempting to increase the scope of a job by broadening or deepening the tasks undertaken

Benefit = Enlargement may reduce boredom
Drawback = Enlargement does not increase empowerment or responsibility for the work being performed


Job enrichment

Job enrichment involves the principle of organising work so that employees are encouraged and allowed to use their full abilities – not just physical effort

Benefit = Enrichment raises worker’s motivation levels
Drawback = Can the principles of job enrichment be applied to all varieties of workers’ jobs?


Job redesign

Job redesign involves the restructuring of a job – usually with employees’ involvement and agreement – to make work more interesting, satisfying and challenging

Benefit = Redesign can lead to improved recognition by management for the work undertaken by workers
Drawback = Is it possible to redesign a job?


Quality circles

Quality circles are voluntary groups of workers who meet regularly to discuss work-related problems and issues

Benefit = Quality circles are a successful method of allowing the participation of all staff


Worker participation

Worker participation involves workers that are actively encouraged to become involved in decision making within the organisation

Benefit = Job enrichment, improved motivation and greater opportunities for workers to show responsibility
Drawback = It may be time consuming to involve workers in every decision


Team working

Team working production is organised so that groups of workers undertake complete units of work

Benefit = Workers are likely to be motivated as social and esteem needs are more likely to be met
Drawback = Not everyone is a team player – some individuals are more effective working alone


what is Target setting?

The purpose of target setting is to enable direct feedback to workers on how their performance compares with agreed objectives


what Delegation and empowerment?

Delegation means the passing down of authority to perform tasks to workers, although empowerment goes further, by allowing workers some degree of control over how the task should be undertaken