1. Motivation

2. What is motivation? Motivation is concerned with the desire to do something or achieve a particular result. Having motivated employees results in: Greater productivity Better quality products or service Lower staff turnover Reduced absenteeism

3. Monetary methods of motivation Fringe benefits Examples include company cars and discount vouchers. May not encourage greater productivity but often build company loyalty. BonusesA payment usually related to the achievement of a target. Usually easier to apply to sales or production rather than the provision of a service. Profit share Employees are encouraged to ensure that the business is profitable. However it is usually spread evenly between both hard-working and less hard-working staff.

4. Monetary methods of motivaiton CommissionPayments are made in relation to the number or value of sales made. Encourages increased sales but may lead to heavy-handed selling techniques. Piece ratePayments are made per item produced. Encourages productivity but sometimes at the expense of quality. OvertimeAdditional payment made for extra hours worked. Can provide greater flexibility to the workforce but may result in lower productivity during normal working hours if employees know they can access overtime payments.

5. Non-monetary methods of motivation Job rotationEmployees move between different jobs, e.g. on a production line. Results in flexible, multi-skilled staff but ultimately workers may just be moving from one boring job to another. Job enlargement Workers are given a wider variety of different tasks to carry out although there is no increase in the level of responsibility. This is sometimes called horizontal loading. Job enrichment Giving employees the chance to fully utilise their abilities through, for example, providing a range of challenges, training workers and allowing them to demonstrate their skills.

6. Non-monetary methods of motivation EmpowermentAllowing workers greater autonomy. They have greater freedom and power to control their own working lives. Team-workingInvolves organising workers into groups, setting team goals and awarding team rewards for achieving targets. Team-working fits with Mayo’s findings. ParticipationEmployees participate in organisational decision- making through such things as quality circles and works councils.

7. Motivational theorists It is useful to know 2 or 3 motivational theories from the following list: Maslow’s hierarchy of needs Taylor’s theory of scientific management Mayo’s theory of human relations Herzberg’s two-factor theory