2.2

• Motivation

  the factors that influence the behaviour of employees towards achieving set business goals.
• Labour productivity

  a measure of the efficiency of employees by calculating the output per worker.
• Absenteeism


  employee's not attending work without a good reason.
• Labour turnover


  the rate at which employees leave a business.
• Maslow's Hierarchy of Needs

  physiological, safety, social, esteem, self-actualization
• The theory of economic man

  the view that humans are motivated only by money.
• Piece-rate

  a payment to a worker for each unit produced.
• Hygiene Factors

  Parts of a job that do not increase job satisfaction but help to prevent dissatisfaction.
• Motivators


  Factors that influence a person to increase their efforts.
• Examples of hygiene factors (Herzberg)

  Working conditions, relationships with others, salary or wage, supervision, company policy and administration
• Examples of motivators

  Achievements, advancements, recognition, responsibilities, work itself
• Job dissatisfaction

  How unhappy and discontent a person is with their job.
• Financial rewards

  Cash and non-cash rewards paid to employees which are often used to motivate workers to increase their efforts
• Non-financial rewards

  methods used to motivate employees that do not involve giving any financial reward.
• Hourly wage rate

  payment to employees based on a fixed amount for each hour worked.
• Salary

  a fixed annual payment to certain grades and types of staff not based on hours worked or output
• Commission

  An amount paid to an employee based on the value of the items they sell.
• Bonus

  an additional reward paid to employees for achieving targets set by managers.
• Performance-related pay

  A bonus scheme used to reward staff for performing to the required standard.
• Fringe benefits

  non-cash rewards often used to recruit or retain employees and to recognize the status of certain employees.
• Profit sharing

  an additional payment to workers based on the profits of the business
• Job rotation

  Increasing variety in the workplace by allowing workers to switch from one task to another
• Job enlargement

  Increasing or widening tasks to increase variety for workers
• Job enrichment

  organizing work so that employees are encouraged to use their full abilities.
• Job satisfaction

  How happy and content a person is with their job
• Quality circles

  groups of workers who meet regularly to discuss work-related problems
• Team working

  organising production so that groups of employees complete the whole unit of work
• Delegation

  Passing responsibility to perform tasks to workers lower down in the organisation.