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

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

3. 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”.

4. 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?

5. 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)

6. 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

7. Maslow’s Hierarchy of Needs

8. 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

9. 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

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

11.   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 

12. 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

13. 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

14. 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

15. Past paper