Examples of Maslows Levels

• Basic needs – a fair wage• Safety needs – a pension plan, safe working

environment• Social needs – Xmas party, team working• Self esteem – praise, company car, promotion• Self actualisation – reaching full potential /

fulfilling all ambitions

Maslows Hierarchy of Needs

• A theory which states that individuals can be motivated by 5 broad things.

• However, a person can not move up the hierarchy unless each level is satisfied– Eg, if a persons safety needs have been met, the

next level for them is to be motivated by social needs.

When answering a question on motivation, if possible try to link your

answer in to Maslow's Hierarchy

Why motivate

staff?

To work harder and Increase productivity

Increase in efficiency

Low levels of labour turnover

Keep costs down = more

competitive

Better quality goods/service

Low levels of absenteeism

Time based payment methods

• Wages – paid weekly based on the number of hours worked. Can also get overtime for additional hours worked. Only pay staff for the hours they work (therefore this can change from week to week BUT is not classed as variable)

• Salaries –amount earned per year, paid monthly. No overtime usually

Results based payment methods• Piece rate – paid per item the worker makes,

common in factories (can increase productivity but may result in poor quality) Classed as VARIABLE COST

• Commission – employees paid a percentage of the sales they made, common for sales people

• Bonus – Can be paid along with any other system as a reward for meeting targets

• Profit related pay – Paid as a % of the profits the business makes

Fringe benefits (perks)

In addition to payment these are benefits such as company cars, products discounts and pension

schemes

Which system is best and why?

Each system suits different types of work.

It depends on the type of work undertaken

Also it depends on whether quality or speed is most important

FINANCIALMonetary rewards such as good wage, bonus payments for meeting targets

NON FINANCIAL(Perks / fringe benefits)Additional non monetary rewards

Financial (monetary) Non financial (non monetary)

Commission Responsibility

Piece rate company car

Time rate profit sharing

Salary Employee of the month

Overtime team work

Flexi time

Staff canteen

Promotion opportunities