22: Developing and retaining an effective workforce: motivating employees.

Question 1

Motivation

Answer 1

The factors that inspire an employee to complete a task at work.

Question 2

Financial methods of motivation:

Answer 2

• Piece rate: Paying employees based on the number of units they produce.
• Commission: Payment based on the number of units sold.
• Fringe benefits: options include a company car, private medical insurance or a subsidised canteen.
• Profit-sharing scheme: a percentage of the company’s profits are distributed to employees.
• Quality-related bonus schemes: salary is reviewed based on the contribution made in terms of the standards achieved.

Question 3

Non-financial methods of motivation: Improving job design.

Answer 3

• Job enlargement: expanding the number of tasks completed by an employee.
• Job rotation: varying an employees job on a regular basis.
• Job enrichment: increase the level of responsibility within a job to make work more challenging and rewarding.

Question 4

Empowerment

Answer 4

Giving employees the power to do their job: trusting them, giving them the authority to make decisions and encouraging feedback from them.

Question 5

Advantages of empowerment can be:

Answer 5

• Enhances motivation.
• It increases employee commitment, thereby reducing labour turnover and absenteeism.
• Increases team spirit and a goal-orientated approach to working.
• It frees the time of senior management so they can focus on more strategic decisions.

Question 6

Disadvantages of empowerment can be:

Answer 6

• Employees may need to be trained and educated in decision making, which can take time and money.
• Processes cannot be standardised so there ma be wide variations in the effectiveness of individual employees and how they respond to empowerment.
• The role of the manager becomes less clear which can lead to different motivational problems.

Question 7

Frederick Taylor:

Answer 7

His theory was based on an assumption that the only motivator was money.
Taylor believed that any pay scheme should reward those who produced the most, that is, piece rate.
He also advocated the close supervision of workers.

Question 8

Elton Mayo:

Answer 8

Believed workers are motivated by having social needs met.
Conducted a study known as the ‘Hawthorne Effect’.
Conclusions:
- Managers & Employees communicating motivates.
- Managers taking interest motivates.
- Working in teams motivates.

Question 9

Abraham Maslow:

Answer 9

‘Hierarchy of needs’. He suggested that within each person there is a hierarchy of needs and the individual must satisfy each level before they move onto the next. These are (bottom to top):
Physiological needs, safety needs, social needs, esteem needs, and self actualisation (fulfilment).

Question 10

Fredrick Herzberg:

Answer 10

Hygiene factors: according to Herzberg, these are factors such as pay levels and conditions of work which can lead to wrier dissatisfaction, but which, even if they are adequate, will not load to motivation.
Motivations: according to Herzberg, these are factors that can lead to motivation of workers, and include recognition, achievement and responsibility. (job enlargement, job enrichment, empowerment)

Question 11

The role of delegation as a business grows in size and complexity:

Answer 11

Delegating authority to subordinates can be seen as threatening at any level in the organisation, and as a business grows many managers, having been given authority to make decisions, may resist further empowerment of subordinates - they have responsibility for the decision made after all. This is most likely in a traditional hierarchical organisational structure, where job roles are clearly defined and therefore delegation is limited.