Business 2.1:Motivating Employees

• Motivation = The desire to achieve a certain result or outcome
• Time-based Wages = Wages can be calculated per hour, this makes it easy to calculate pay (bus driver, waiter) (financial)
• Piece rate = Workers will be paid depending on the amount of product they make (production/factory workers) (financial)
• Commission = A percentage of sales made by an employee is given as their wage (salesperson) (financial)
• Salary = Workers are paid in timed intervals like months (office staff, teachers) (financial)
• Profit sharing = Paid a share of profits in a addition to their basic salary, paid as a dividend (financial)
• Performance related pay = Pay linked to effectiveness, used when output is hard to measure (teacher, manager) (financial)
• Share ownership = Employees are given the opportunity to buy some shares of the business - this should encourage them to work harder to help the business succeed. (financial)
• Job enrichment = Giving employees more responsibility and tasks so that they feel valued (Non-financial)
• Fringe benefits = non-financial awards given to employees, many of these are valuable but no actual cash is paid (company car, free lunch, free child education, employee discount)
• job satisfaction = the enjoyment derived from feeling that you have done a good job.
• Job rotation = Job rotation involves swapping jobs and doing specific tasks for a period of time (Non-financial) (teacher teach diff subjects)
• Job enlargement = involves doing more tasks of a similar skill and responsibility (non-financial)
• Team working = involves giving a group of workers responsibility for particular process of task (non-financial)
• Taylors scientific management

  Thought biggest motivator were financial motivators (money)
• Maslows hierarchy of needs

  Thought there were more factors to motivate

  Maslows hierarchy: (sessp)

  1.Self actualisation (Promotion)

  2.Esteem needs (recognition & praise)

  3.Social needs (supportive work colleuges)

  4.Safety needs (job security)

  5.Physiological needs (food, rest)
• Herzbergs 2-factor theory

  Thought humans have 2 sets of needs = Hygiene factors 'basic animal needs', motivators

  Motivations: Achievement, recognition, personal growth, promotion

  Hygiene factors: Job status, Job security, Working conditions, Salary
• Financial motivators

  1. Wages
  2. Time rate
  3. Piece rate
  4. Profit sharing
  5. Performance related pay
  6. Share ownership
  7. Salaries
  8. Bonus
  9. Commission
• Impacts of motivational strategies - Boost employees moral, cause less stress
• Non-financial motivators: workers are motivated by more than just money