Questions Part 1 What does the law say you cannot do when employing staff? What is a decentralised structure? What is delayering?

Questions Part 2 How can we improve cash flow? Give 3 sources of finance How can a business increase profit?

What if I give you £5? Will you work harder if I pay you? What if the hard workers ONLY get £5 how do the rest of you feel? What kind of organisation pays you more for working harder? The “Carrot”.

What about if I shout at you will you work harder? How should I decide who to shout at? How would you react? What kind of organisation Uses the “stick” ? Is the only motivator money?

Motivation What is it? Methods available to motivate employees Motivation is will to work Comes from enjoyment of work itself and/or from desire to achieve certain goals e.g. earn more money or achieve promotion Methods available to motivate employees Financial methods (e.g. salary, bonus) Non-financial methods (passing on responsibility or praise)

Reasons why people go to work To earn money (“earn a living”) For job satisfaction To belong to a group For a sense of security To obtain a feeling of self-worth

Maslow’s Hierarchy of Needs

Maslow’s Hierarchy of Needs Self-actualisation Intellectual needs, fulfilling potential, achieving targets Esteem / Status Self-respect, level of status Social Feeling wanted, sense of belonging, part of team Safety, security Safe working environment; job security Psychological Basic needs – e.g. food, shelter

Applications of Maslow Money alone is not enough to motivate employees Non-financial rewards are better incentives as employees work up the needs hierarchy Job security is seen as an important motivator, as is being part of a team at work It is important for businesses to recognise employee achievements and status

Can you show how having motivated workers can lead to more profit?

  Increased output Higher Profits Motivated workers Unhappy workers Higher productivity (employees work more effectively) Increased output Higher Profits  Unhappy workers Do not work effectively Low output Lower/no profit 

Main financial incentives at work Wages Normally paid per hour worked – part of “basic pay” Salaries An annual salary paid monthly Bonuses Paid when certain targets have been achieved Commission Staff paid according to number or value of products they sell Fringe benefits Often known as ‘perks’, these are items an employee receives in addition to their normal wage or salary e.g. company car, private health insurance, free meals

Some key non-financial incentives to support motivation Empowerment Delegating responsibility to employees Praise Recognition for good work Promotion Promoting staff to a position of higher responsibility Job enrichment Giving staff more challenging and interesting tasks Job enlargement Giving employees more tasks of a similar level of complexity Working environment Providing a safe, clean, comfortable environment to work in Team working Provide opportunities to work in teams

Can you think of the other advantages of having a motivated workforce? Better productivity Better quality Lower levels of absenteeism Lower levels of staff turnover Lower recruitment and training costs

Past paper