Chapter 6

• motivation: the factors affecting the behaviour of workers towards achieving set business goals
• Labour productivity: a measure of the efficiency of workers by calculating the output per employee
• Absenteeism: employee's non attendance at work without a valid reason
• Labour turnover: the rate at which employees leave a business
• the theory of economic man: the view that humans are only motivated by money
• Hygiene factors: the factors that must be present in the workplace to prevent job dissatisfaction.
• motivators: the factors that influence a person to increase their efforts.
• Job dissatisfaction: how unhappy and discontent a person is with their job
• financial reward: cash and non-cash rewards paid to workers which are often used to motivate workers to increase their efforts.
• Non-financial rewards: methods used to motivate employees that do not involve any financial reward.
• Hourly wage rate: a payment to employees on a fixed amount for each hour worked.
• Salary: a fixed annual payment to certain grades and staff not based on hours worked or output.
• Piece-rate: a payment to employees for each unit produced
• Commission: a payment to sales staff 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 requires standards.
• Fringe Benefits: non-cash rewards often used to recruit or retain employees and to recognise the status of certain employees
• Profit sharing: an additional payment to employees based on the profits of the business
• Job rotation: increasing the variety in the workplace by allowing employees to switch from one task to another.
• Job enlargement: increasing or widening tasks to increase variety for workers
• Job enrichment: organising work so that employees are encouraged to use their full abilities.
• Job satisfaction: how happy and content a person is with their job.
• Quality circle: groups of employees 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 employees lower down in the organisation.