Financial and non financial motivations

• What is the goal of using financial and non-financial methods of motivation?

  To impact motivation and employee engagement
• Which theorists' ideas do financial methods of motivation support?

  Taylor and Maslow
• What basic needs do financial methods address according to Maslow?

  Physiological and safety needs
• What is Taylor's preferred financial method of motivation?

  Piece rate
• What is a positive of piece rate pay?

  Alignment between output and pay
• What is a potential downside of piece rate pay?

  It may lead to shortcuts and defects
• In which sectors is piece rate pay usually seen?

  Primary and secondary sectors
• How does commission pay work?

  Pay based on the number of sales made
• What is a potential issue with commission-based pay?

  It may lead to aggressive sales tactics
• What are salary schemes designed to provide?

  Benefits like childcare and pension contributions
• What is a downside of administering salary schemes?

  They can be costly to manage
• What does performance-related pay (PRP) reward?

  Meeting or exceeding targets
• What is a challenge of implementing PRP?

  Difficulty in quantifying targets
• What theory do non-financial methods of motivation support?

  Herzberg's theory
• What are the higher needs according to Maslow that non-financial methods address?

  Social, esteem, and self-actualization needs
• What does empowerment in the workplace provide to employees?

  Autonomy and resources to control their work
• In what type of organizational structure is empowerment most effective?

  Flatter, more organic structures
• What does teamwork contribute to motivation according to Herzberg?

  Good team spirit and opportunities for growth
• What can poor management of teamwork lead to?

  Failure of team motivation strategies
• What is flexible working?

  Control over when and where employees work
• What is job enrichment?

  Making jobs more interesting and fulfilling
• How does job enrichment increase motivation?

  By providing growth and development opportunities
• What is job rotation?

  Assigning employees to different roles or areas
• What is a benefit of job rotation for employees?

  Gaining diverse skills and strategic oversight
• How can job rotation affect recruitment costs?

  It may reduce recruitment costs in the long term
• What are the financial methods of motivation?

  • Piece rate pay
  • Commission
  • Salary schemes
  • Performance-related pay (PRP)
• What are the non-financial methods of motivation?

  • Empowerment
  • Teamworking
  • Flexible working
  • Job enrichment
  • Job rotation