BUSINESS AS LEVEL Chapter 11 - Motivation

Motivation

the internal and external factors that stimulate people to take actions that lead to achieving a goal

Performance related pay

reward staff for above average work

Herzberg and the 'two factor theory'

Motivating factors: aspects of a workers job that can lead to positive job satisfaction, such as achievement, recognition, meaningful and interesting work and advancement in work Hygiene Factors: Aspects of a workers job that have potential to cause dissatisfaction, such as pay, working conditions, status and over-supervision by managers

Profit sharing

a bonus for staff based on the profits of the business - usually paid as a proportion of basic salary

Bonus

a payment made in addition to the contracted wage or salary

Commission

a payment to a sales person for each sale made

Salary

annual income that is usually paid monthly

Fringe benefits

benefits given separate from money

Piece rate

payment per unit produced

Job Enrichment

aims to use the full capabilities of workers by giving them the opportunity to do more challenging and fulfilling work

Maslow and the hierarchy of human needs

-1: Physical needs -2: Safety needs -3: Social needs -4: Esteem needs -5: Self actualization

McClelland and the motivational needs theory

-Achievement motivation -Authority motivation -Affiliation motivation

Mayo and the human relations theories

-Changes in working conditions and financial rewards have no effect on productivity -When managers consult, it improves motivation -Working in teams improves motivation -Workers need some control over their work place

Taylor and the scientific management

-Economic man: money is not the only way to motivate staff and there are other factors -Select the right people for each job -Observe and record performance -method study -Piece work payment system

Vroom and the expectancy theory

Valence: employee wants a reward Expectancy: putting effort will lead to a given level of performance Instrumentality: they will get what the desire

Time based wage rate

e.g payment per hour