Business 2.4

What is motivation?

The desire to achieve a goal.

How can a business influence motivation?

They have the opportunity to provide for a number of human needs.

What are social needs?

Human needs to communicate, develop friendships and belong.

What does Maslow’s hierarchy of needs state?

That people must fulfill basic physiological needs like food and shelter before progressing to higher needs such as safety, love and belongingness, esteem, and self-actualization.

What is Maslow’s hierarchy of needs from most important to least.

Psychological needs → Safety and security → Love and belonging → Esteem needs → Self - actualisation

What does Herzeberg’s two factor theory state?

Suggests that job satisfaction is influenced by motivational factors within the job itself, while dissatisfaction is influenced by external hygiene factors in the work environment.

What are some things included in Herzeberg’s theory?

What does Taylor’s theory of scientific management state?

That by making work more efficient, training workers, and giving them incentives, productivity can be increased.

What is performance related pay?

Designed for non-manual workers where pay increases are given if performance targets are met

What is piece rate?

Workers recieve an amount of money for each unit produced

What is time rate?

Based on the amount of time employees spend at work

What are bonus payments?

Paid in addition to the basic wage or salary - paid if targets are met

What is commission?

Payment for reaching a target

What are some fringe benefits?

Free counselling services

Discounts when buying the employer’s product

Subsided meals

Free or subsided accommodation

Free private health insurance

Employee pension contributions

Company car

Use of company’s facilites such as a gym

What is job rotation?

Employees are rotated between different jobs to avoid the repetition and boredom

What is job enrichment?

Employees are given redesigned jobs that have more challenge and are more rewarding - Also given more responsibility and creativity

What is autonomy?

Allowing the employees to make their own decisions

What are some advantages of job rotation?

Gives more variety

Stops workers from being bored

Motivates workers

Provides business with more flexibility

What are some disadvantages of job rotation?

Training costs will rise

Benefits of specialisation may be lost

Could be simply a great number of boring tasks with less social benefits due to constant changing of groups

What are the advantages of job enrichment?

Gives employees opportunity to develop unused skills and challenges them

Makes work more interesting

Encourages staff to aim for promotion

Allows employees to contribute to the decision making process

Staff may feel valued

Increased feelings of achievement

What are the disadvantages of job enrichment?

If employees forced to take on extra work without resources and training, some of them may be displeased which could have a negative impact on labour productivity

Some may feel under pressure and not simply challenged

Not all jobs can be enriched

What are the advantages of autonomy?

Employees feel more ownership of their own work and so are more motivated.

Employees are able to use their own thinkinf skills to compete their work at their pace

What are the disadvantages of autonomy?

Some employees may become unhappy as they need more direction in their work and want recognition from their boss.

Some employees may want to make more decisions than they are entitled to