Motivating Workers

Question 1

People work for several reasons:

Answer 1

• Have a better standard of living: by earning incomes they can satisfy their needs and wants
• Be secure: having a job means they can always maintain or grow that standard of living
• Gain experience and status: work allows people to get better at the job they do and earn a reputable status in society
• Have job satisfaction: people also work for the satisfaction of having a job

Question 2

what is Motivation

Answer 2

the reason why employees want to work hard and work effectively for the business

Question 3

how workers get motivated?

Answer 3

1. Money
2. social needs (need to communicate and work with others)
3. esteem needs (to feel important, worthwhile)
4. job satisfaction (to enjoy good work)
5. security (knowing that your job and pay are secure- that you will not lose your job).

Question 4

Motivation Theories (3)

Answer 4

F. W. Taylor: workers were motivated by personal gains, mainly money and that increasing pay would increase productivity
Maslow’s Hierarchy: Abraham Maslow’s hierarchy of needs shows that employees are motivated by each level of the hierarchy going from bottom to top.
Herzberg’s Two-Factor Theory: Frederick Herzberg’s two-factor theory, wherein he states that people have two sets of needs:
‘hygiene factors’:
1. status
1. security
1. work conditions
1. company policies and administration
1. relationship with superiors
1. relationship with subordinates
1. salary
motivators:
1. achievement
1. recognition
1. personal growth/development
1. promotion
1. work itself

Question 5

benefites of a well motivated workforce

Answer 5

highly productive and effective in their work, become absent less often, and less likely to leave the job, thus increasing the firm’s efficiency and output, leading to higher profits.

Question 6

methods of Motivation

Answer 6

Financial Motivators and Non-Financial Motivators

Question 7

Motivating Factors
Financial Motivators

Answer 7

Wages: often paid weekly. They can be calculated in two ways:
1. Time-Rate: pay based on the number of hours worked.
1. Piece-Rate: pay based on the no. of output produced

Salary: paid monthly or annually.

Commission: paid to salesperson, based on a percentage of sales they’ve made.

Bonus: additional amount paid to workers for good work.

Profit-sharing: a scheme whereby a proportion of the company’s profits is distributed to workers.

Question 8

Motivating Factors
Non-Financial Motivators

Answer 8

Fringe benefits like
1. Company vehicle/car
1. Free healthcare
1. Children’s education fees paid for
1. Free accommodation
1. Free holidays/trips
1. Discounts on the firm’s products

Job Satisfaction: the enjoyment derived from the feeling that you’ve done a good job.

Job Rotation: involves workers swapping around jobs and doing each specific task for only a limited time and then changing round again.

Job Enlargement: where extra tasks of similar level of work are added to a worker’s job description.

Job Enrichment: involves adding tasks that require more skill and responsibility to a job.

Team-working: a group of workers is given responsibility for a particular process, product or development.

Opportunities for training: providing training will make workers feel that their work is being valued