Motivating Workers

Definitions to learn Motivation is the reason why employees want to work hard and work effectively for the business

Why people work? Why Work? Money Security Social needs Self-esteem Job satisfaction Why Work?

Motivating Theories F.W Taylor If the workers are paid more, they will work more effectively

Motivating Theories Maslow Social needs

Motivating Theories Herzberg Motivators Achievement Recognition Personal growth/ development Advancement/ promotion Work itself Hygiene (maintenance) factors Status, Security, Work Conditions, Company policies and administration Relationship with supervisors Relationship with subordinates Salary

Motivating factors Financial Rewards/ Motivators Non-Financial Rewards/ Motivators

Financial Factors Definitions to learn Wage is payment for work, usually paid weekly

Financial Factors Wages Advantages: Paid regularly Work longer, pay overtime (OT) Disadvantages: Paid weekly, have to calculated every week Employ wages clerk

Time Rate- payment for time period Financial Factors Time Rate- payment for time period Advantages: 1) Easy to calculate Disadvantages: Needs to record on time-sheet. Good and bad workers get same paid. Supervisor needs to monitor workers. A clocking-in system is needed.

Financial Factors Definitions to learn A salary is payment for work, usually paid monthly. Commission is payment relating to the number of sales made. Profit sharing is a system whereby a proportion of the company’s profits is paid out to employees. Bonus is an additional amount of payment above basic pay as a reward for good work.

Financial Factors Definitions to learn Performance-related pay is pay which is related to the effectiveness of the employee where their output can easily be measured. Share ownership is where shares in the company are given to employees so that they become part owners in the company.

Piece Rate- paid depending on the quantity of products made. Financial Factors Piece Rate- paid depending on the quantity of products made. Advantages: 1) Encourages workers to work faster. Disadvantages: May ignore the quality of products. Workers who are careful will not earn as much. Conflict among workers will happen. If machinery breaks down, employee will earn less money.

Salaries- are paid monthly Financial Factors Salaries- are paid monthly Advantages: 1) It is paid for the job monthly basis Disadvantages: Extra work will not usually paid for. It is fixed amount.

Financial Factors Other rewards added to basic salary Commission Profit sharing Bonus Performance-related pay Share ownership

Non-Financial Factors Definitions to learn Fringe benefits are non-financial rewards given to employees

Non-Financial Factors Example Company vehicle Discount on the firm’s products Health care paid for Children’s education fees paid Free accommodation Share options (where company shares are given to employees) Pension paid for by the business Free trips abroad/ holidays

Definitions to learn Job satisfaction is the enjoyment derived from feeling that you have done a good job

Definitions to learn Job rotation involves workers swapping round and doing each specific task for only a limited time changing round again

Definitions to learn Job enlargement is where extra tasks of a similar level of work are added to a worker’s job description.

Definitions to learn Job enrichment involves looking at jobs and adding tasks that require more skill and/ or responsibility

Definitions to learn Autonomous work groups/ team working is where the worker is given a responsibility for a particular process, product or development. They should work in a team.