as business studies. aim: understand methods of motivation objectives: define motivation describe...
TRANSCRIPT
Aims and Objectives
Aim:• Understand methods of motivation
Objectives:• Define motivation• Describe financial and non financial
methods of motivation• Analyse methods of motivation
Starter
• What motivates you to go to school?
• What motivates you to work part time?
• What things do you think will motivate you in your future careers?
Definition
• The factors that inspire an employee to complete a task at work.
• Will affect both quantity (output) and quality of a businesses products.
John Lewis & Motivation
• http://www.youtube.com/watch?v=2tX2GiDm5Ug
Financial Methods of Motivation
• Paying employees based on the number of units they produce.Piece Rate
• Payment based on the number of units sold.Commission
• Options include a company car, medical insurance etc.Fringe Benefits
• Percentage of companies profits distributed between employees
Profit-Sharing Scheme
• Salary is reviewed based on the contribution made in terms of the standards achieved
Quality Related Bonus Schemes
Analysing Financial Motives
• In your groups decide on the advantages and disadvantages of each financial motivation method.
Piece Rate Analysis
- Increases output per person.- Useful when production is running below the required level.
- Quality may drop which may damage brand image.- May have knock on effect on future sales/profits
Commission
- Increased revenue
- Employees may be tempted to use unethical practices leading to poor customer relations
Fringe Benefits
- Often valued more highly than wage increases by employees.
- Represent a long term commitment by the firm so could reduce flexibility.- Could be expensive
Profit Sharing Scheme
- Individuals can see their efforts making a difference- Encourages team working
- Divisive if some members of the team work harder than others but get the same rewards
Quality Related Bonus Scheme
- Employees motivated to work to highest possible standard
- In service sector difficult to measure quality
Non-Financial Motivational Methods
• Expanding the number of tasks completed by an employee.
Job Enlargement
• Varying an employee’s job on a regular basis, leading to multi skilling.Job Rotation
• Increasing the level of responsibility within a job to make work more challenging or rewarding.
Job Enrichment
Analysing Financial Motives
• In your groups decide on the advantages and disadvantages of each non-financial motivation method.
Job Enlargement
- Mistakes less likely, which reduces costs
- Training costs involved and employees expect more pay
Job Rotation
- Staff shortages can be covered more easily
- Can be complicated to organise- Employees may not develop skills evenly resulting in quality variations
Job Enrichment
- Allows employees to develop managerial skills- May lead to internal recruitment opportunities
- High training costs- May be difficult for employee to manage new workload