Motivation

Question 1

Methods of financial motivation

Answer 1

Salary
Commission
Piece rate
Performance related pay
Profit sharing

Question 2

What is a Salary

Answer 2

set income based on the job role as an annual fee

Question 3

Pros/Cons of a salary

Answer 3

Not linked to performance
No increase motivation/performance

Question 4

What is a Commission

Answer 4

A bonus paid based on achieving a sales target. Rewards for the quantity or value of work achieved

Question 5

Pro/Con of a commission

Answer 5

increases motivation (for more sales)
Misinform customers to make a sale (reputation)

Question 6

What is a Piece rate

Answer 6

pay based on the number of units of output produced

Question 7

Pros/Cons of piece rate

Answer 7

Increases output
Reduced quality

Question 8

What is Performance related pay

Answer 8

bonuses achieved by reaching a target

Question 9

Pros/Cons of performance related pay

Answer 9

Does not encourage teamwork
Not significantly increasing motivation (as it is just a small bonus)

Question 10

What is profit sharing

Answer 10

Distributing a percentage of net profit across the workforce

Question 11

Pros/Cons of profit sharing

Answer 11

Reward linked to the overall success of the business
Depends on businesses profitability

Question 12

Methods of non-financial motivation

Answer 12

Job design
Appraisal system
Teamworking
Employee recognition

Question 13

What is Job design

Answer 13

Designing the role, tasks and responsibilities so it improves motivation

Question 14

Pros/Cons of job design

Answer 14

Challenging work is interesting
Always some aspect of job that staff don’t like/repetition

Question 15

What is appraisal

Answer 15

review of performance and recognising achievement

Question 16

Pros/Cons of appraisal

Answer 16

feel recognised
receive feedback
promotion opportunities
meet needs of staff
appraisal time reduces time doing actual job

Question 17

What is teamworking

Answer 17

workforce in teams to meet social aspect of motivation

Question 18

Pros/Cons of teamworking

Answer 18

Sense of belonging
Connection to the business through peers
Difficult to identify workers who are less productive

Question 19

Factors affecting if we use financial/non-financial methods

Answer 19

Skill level of managers
Use of Soft or Hard HRM
Skilled workforces (more job enrichment)
Nature of the business

Question 20

What method would a competitive sales environment use

Answer 20

financial method, such as commissions

Question 21

Benefits of motivation?

Answer 21

Better customer service
High labour productivity
High employee engagement
Better quality product
Better manager-employee relations
Lower labour turnover
lower labour cost per unit