Unit 4: HR

• What does non-financial motivation refer to?

  Methods of encouraging employees that don’t involve monetary rewards or incentives
• What are the main goals of non-financial motivation strategies?

  To improve job satisfaction, morale, and commitment
• Why is it important to recognize that different employees may value different types of non-financial motivation?

  Because it affects the effectiveness of motivation strategies
• What is job rotation?

  Moving employees between different tasks to reduce monotony and increase skills
• How does job enlargement differ from job rotation?

  Job enlargement allows an employee to undertake more tasks at the same level
• What is the purpose of job enrichment?

  To make jobs more interesting by giving workers more challenging tasks and greater responsibility
• How can training and development serve as a non-financial motivation method?

  By improving skills, increasing job satisfaction, and providing career progression opportunities
• What forms can recognition and praise take?

  Verbal praise, awards, or public acknowledgement
• How do autonomy and responsibility contribute to non-financial motivation?

  They can increase senses of ownership, motivation, and job satisfaction
• What is the benefit of flexible working as a non-financial motivation method?

  It can balance work-life demands and lead to increased job satisfaction
• What is a key advantage of non-financial motivation compared to monetary rewards?

  They can increase long-term job satisfaction more than temporary monetary rewards
• How do non-financial motivation methods fulfill employees’ psychological needs?

  By making employees feel valued or appreciated
• What commitment and loyalty benefits can arise from non-financial motivation methods?

  They can encourage greater commitment and loyalty to the business
• Why are non-financial motivation methods often considered more sustainable for businesses?

  They are often lower cost than continued financial incentives
• What is a major disadvantage of non-financial motivation methods?

  Their effectiveness relies heavily on individual employee’s preferences and values
• What problems can arise from methods like job enlargement or job rotation?

  They can lead to workload increase or unfamiliarity with new tasks
• Why might certain non-financial methods not be sufficient to motivate all employees?

  Because some employees may still require additional financial incentives
• What is essential for a business to implement effective non-financial motivation methods?

  Understanding its employees’ needs, values, and preferences
• Why are effective communication and feedback mechanisms important in non-financial motivation?

  They help understand what non-financial motivators will work best
• What role does consistency and fairness play in non-financial motivation?

  They are important to maintain staff morale and motivation
• Why is it important to review and revise non-financial motivation methods regularly?

  To ensure they continue to meet changing employee needs and aspirations
• What is financial motivation?

  Financial motivation refers to the use of monetary incentives to encourage employees to perform better.
• Why is financial motivation based on the principle that everyone works primarily for money?

  Because financial rewards can directly affect an employee’s job performance and satisfaction.
• What is the basic form of financial motivation?

  A salary or wage is the basic form of financial motivation.
• What is a bonus in the context of financial motivation?

  A bonus is an additional amount paid over and above the standard salary, often to reward achievement of specific targets.
• How does commission motivate employees?

  Commission is money paid to an employee on each sale, motivating them to sell more products or services.
• What is profit-sharing in financial motivation?

  Profit-sharing involves giving employees a percentage of the company’s net profit, motivating them to work towards the company’s profitability.
• What do share ownership schemes entail?

  Share ownership schemes mean employees own a part of the company, incentivising them to work for the company’s success.
• What are some advantages of financial motivation?

  Financial rewards can lead to increased productivity, help retain talented employees, and create a competitive environment for business growth.
• How can financial motivation help in retaining talented employees?

  By offering attractive financial incentives.
• What is a potential disadvantage of financial motivation?

  Overreliance on financial motivation can neglect the impact of non-financial motivators.
• How can financial motivation negatively affect teamwork?

  If not managed correctly, it can cause competition between employees which might damage teamwork or the working environment.
• What is a financial risk for companies regarding financial motivation?

  It can become costly for the company if large bonuses are given frequently.
• How does the effectiveness of financial motivation vary?

  The effectiveness can vary among individuals and situations.
• What might some individuals value more than financial motivation?

  Some individuals may value aspects like career growth, job security, or work-life balance.
• What is the balance needed for effective motivation in the workplace?

  • A balance between financial and non-financial motivation methods is most effective.
  • Financial motivation includes salaries, bonuses, commissions, profit-sharing, and share ownership.
  • Non-financial motivation includes job satisfaction, company culture, and personal development opportunities.
• What is the primary purpose of staff training?

  To improve the skills and knowledge of employees to perform their jobs more effectively
• Why is staff training important for employees?

  It helps employees keep up with the increasing complexity of their roles and adapt to changes
• What are the two main types of training methods?

  On-the-job training and off-the-job training
• What factors influence the choice of training method?

  The nature of the job, required skill level, and available budget