financial and non financial methods of motivation

• Why do managers need to understand what motivates employees?

  To convince employees to work towards goals
• What is the purpose of non-financial motivation methods?

  To provide psychological benefits for workers
• What is piece rate pay?

  Payment for each item produced or task completed
• What is an advantage of piece rate pay?

  Workers maximize income by working faster
• What is a disadvantage of piece rate pay?

  It can lead to low-quality products
• Why do businesses prefer to pay salaries monthly in arrears?

  It improves cash flow for the business
• What is profit-related pay?

  Income linked to company profits
• What is a major problem with profit-related pay?

  Income is uncertain for employees
• What is a bonus scheme?

  Extra payments for employee contributions
• What is a sales bonus?

  Paid when a sales target is reached
• What is a performance bonus?

  Paid for reaching output and quality targets
• What is a Christmas bonus often referred to as?

  The 13th month salary
• What is share ownership in the context of motivation?

  Employees receive shares in the business
• What is commission pay?

  Payment as a percentage of sales value
• What are fringe benefits?

  Additional perks like company cars and discounts
• What is a disadvantage of financial methods of motivation?

  Can cause resentment among employees
• What is a potential issue with non-financial methods of motivation?

  They can be expensive to implement
• What is job enlargement?

  Giving additional similar work to employees
• What is job rotation?

  Changing jobs or tasks periodically
• What is job enrichment?

  Giving more responsibility and recognition
• What is consultation in the workplace?

  Asking employees for their views on issues
• What is empowerment in the workplace?

  Giving employees authority to make decisions
• What is teamworking?

  Employees collaborate to share skills and ideas
• What is flexible working?

  A way of working that suits employee needs
• What is a potential problem with non-financial motivation methods?

  They may not motivate all employees equally
• What factors affect the appropriateness of motivation methods?

  Cost, nature of business, and employees
• What is the definition of motivation?

  Desire to engage in specific behaviors
• How does motivation impact a business?

  It drives employees to meet goals
• What is the relationship between ability and motivation?

  Performance is a product of both
• How do financial and non-financial methods of motivation differ?

  Financial methods involve monetary rewards
• What is a potential disadvantage of financial incentives?

  They may only have short-term effects
• How can job rotation benefit employees?

  Encourages skill variety and experience
• What is the impact of a motivated workforce on a business?

  Improves productivity and employee satisfaction
• How can consultation affect employee motivation?

  Involves employees in decision-making processes
• What is the role of management in implementing motivation methods?

  To balance costs against increased output
• How does the structure of the workforce affect motivation methods?

  Not all methods suit temporary workers
• What is the impact of Theory X managers on motivation methods?

  They may reject expensive motivation methods
• How can financial and non-financial methods impact HMV's success?

  They can improve employee motivation and performance
• What is the significance of employee views on rewards?

  They influence motivation and satisfaction levels
• How can financial success of colleagues affect motivation?

  It may cause jealousy among employees