Motivation Thursday 6th March 2014 Year 11 Business Motivation Thursday 6th March 2014

Objectives To consider how a business can motivate staff within a business.

Let’s get our minds warmed up…

Solution…

First off… Catch up sessions available. Homework due next week. Coursework next week – ensure you have ALL research complete ready.

Today - Motivation What do we mean by the term motivation? Motivation is how a business can encourage staff to give their best. In business – companies can motivate employees to do a better job than they otherwise might.

Motivation Why motivate our staff? Increased Output – if workers work harder, the business will achieve more. Improved Quality – staff take greater pride in their work. Higher level of staff retention – workers will stay with the business as they’ll be motivated to be there.

How? Motivation can be influenced in a variety of ways: Monetary Factors – workers might work harder if they are offered higher pay. Non-monetary Factors – this could be things such as improved working conditions, or the chance to win a competition/promotion

Question… Exam Question – 8 Marks: What might the advantages and disadvantages of different sorts of motivation within a business be? Provide examples to back up your answer.

Theories… There are two theories we need to be aware of: 1). Taylorism – argues that staff do not enjoy work and are only motivated by threats and pay. Managers motivate staff by organising employees’ work and paying be results, eg – piece rate pay – payment per item produced.

Theories 2). Maslow – suggests that there are five hierarchies/levels of need that explain why people work. Staff first want to meet their survival needs by earning a good wage. Safety needs such as job security then become important, followed by social, self-esteem and self-fulfilment needs. In theory – through offering staff the various levels of Maslows Hierarchy of Needs – we motivate them.

Motivation… Monetary: Time Rate – paying staff for the hours worked. Overtime – paid extra for working beyond normal hours. Piece Rate – paid per item produced. Commission – paid for items they sell. Performance Related Pay – bonus for meeting a target. Profit Sharing – staff receiving a share of the profits. Salary – paying staff monthly regardless of hours worked. Fringe Benefits – staff are paid in kind (company car etc)

Motivation… Non-monetary: Job Rotation – switching staff between different tasks to reduce monotony. Job Enlargement – staff are given more tasks to do. Job Enrichment – staff are given more challenging and interesting tasks. Empowerment – staff are given the authority to make decisions. Putting Groups of Workers In A Team – gives them responsibility for tasks.

Summary Why is motivation important? What impact can it potentially have on the performance of a business? How might a business motivate their staff? What might some of the advantages of monetary motivation be? What might some of the disadvantages be?