3.4.3 - Motivation

• what is motivation?

  refers to how driven and happy an employee is in their role
• employees are more likely to...

  feel valued by a business that invests in their training and development
• what is training and development?

  processes in which employees are provided with knowledge, qualifications and additional skills
• what is the likely output of motivated staff?

  • more likely to stay with a company
  • perform better - leading to higher productivity and lower turnover
• how does high productivity from high motivation benefit the business?

  • work harder, more focused, and often produce higher quality work
  • can lead to increased output and improved customer service
• financial methods of motivation:

  • salary
  • wage
  • profit share
  • commission
  • bonus
  • remuneration
  • promotion
  • fringe benefits
• non-financial methods of motivation:

  • job rotation
  • autonomy
  • job enrichment
  • job enlargement
  • training
  • management style
• what is a salary?

  • fixed amount paid to an employee on a regular basis
  • usually monthly - expressed as an annual sum
• what is a wage?

  • employee paid weekly or monthly by the hour according to the time worked
  • additional hours on top of the contracte hours = overtime - may be paid at a higher hourly rate
• what is profit share?

  employees recieve their usual wage or salary but additional payment is made linked to the performance of the business
• what is commission?

  payment to an employee based on the value of sales achieved over a specific period of time
• what is a bonus?

  • employees receive additional payment on top of salary or wage. 
  • typically awarded for achieving specific targets, exceeding performance expectations
• what is a remuneration?

  money employees are paid in return for working in a business e.g salary, wage, bonus
• what are promotions?

  when workers are promoted they are provided with a higher ranking job and more responsibility in a business
• what are fringe benefits?

  additional perks awarded to employees e.g fre gym membership, company car, compnay phone, free parking, additional holiday allowance
• what is job rotation?

  employees have a number of different job roles and a range of different duties within the role
• what is autonomy?

  employees are able to make decisions about their day to day roles
• what is job enrichment?

  workers are given greater responsibility and a wider range of more complex and challenging tasks
• what is job elargement?

  gives staff a greater variety of tasks to perform (but not necessary more challenging)
• what is training?

  process of acquiring knowledge and skills to work more efficiently in the business - employees will feel more valued and loyal to the business
• what is management style?

  approach to leading and directing a team
• what is autocratic management?

  employees are not involved in decision making - autocratic leaders make all the decisions without input from anyone else
• what is democratic management?

  giving more freedom to workers and more say in decision making