Methods of motivation

• What is piece rate pay?

  A fixed rate paid per quantity of work
• How does commission-based pay work?

  Employees earn based on their performance
• What determines salary schemes?

  Qualifications, experience, and job role
• What is performance-related pay?

  Pay linked to individual performance and targets
• What is profit sharing?

  Sharing business profits with employees
• What do share ownership/share options provide?

  Percentage of ownership in a company
• What are the advantages of financial methods of motivation?

  • Reduced labour costs
  • Clear incentives for efficiency
  • Unlimited earning potential
  • Aligns motives with company goals
  • Improved financial flexibility
  • Reduces taxable income
  • Improves morale and productivity
  • Increases job satisfaction
  • Retains employees
  • Reduces unemployment
  • Provides business funding
• What are the disadvantages of financial methods of motivation?

  • No guaranteed minimum wage
  • Pressure on employees
  • Financial unpredictability
  • Stress during slow periods
  • Lack of motivation for extra effort
  • Demotivation for non-incremental pay
  • Focus on individual over teamwork
  • High added costs
  • Issues of entitlement
  • Equal pay for unequal performance
  • Dividend payments
  • Loss of decision-making control
• What is job enlargement?

  Extending the range of job duties
• What is job rotation?

  Movement of employees between departments
• What does job enrichment involve?

  Enhancing a job role with more responsibilities
• What does empowering employees mean?

  Giving employees more control and responsibility
• What are the advantages of non-financial methods of motivation?

  • Employee growth through diverse tasks
  • Reduced turnover from job variety
  • Highlights employee specialties
  • Prevents boredom and increases engagement
  • Opportunities for new skills
  • Better customer service
  • High employee satisfaction
  • Teamwork improves efficiency
  • Better ideas and feedback
• What are the disadvantages of non-financial methods of motivation?

  • Increased workload and stress
  • Training and development needs
  • Disruption of workflow
  • Costly training for new roles
  • Demotivation from inability to perform tasks
  • Additional workload issues
  • Lack of experience increases risk
  • Potential for decreased efficiency
  • Unequal contributions causing disputes
  • Interpersonal conflicts among employees