Area of study 2 = Human Resource Management = motivation strategies

performance related pay

monetary compensation provided from employers to employees

types of performance related pay

1. bonus = one off payment for meeting business targets
2. pay increase= employee who makes significant contributions their pay may rise
3. share plan = registered company offers shares to employees of ownership to the business = profit is payed through dividends

PRP short term effects on motivation

= internal rewards more effective in short term as it boost employees motivation because of financial reward

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PRP long term effects on motivation

negative impact on motivation = financial comfort of increased wages can result in disappointment if receive lower pay due to not meeting targets

2 adv and 2 dis of PRP

adv= financial rewards improves performance and financial incentive can improve engagement in business activities

dis = cause conflict to arise due to jealousy and a business might not be able to afford this

career advancement

person takes on a job with greater responsibilities and receive an increase in pay

CA short term effects on motivation

leads to job security and increased pay = which motivates employees in the short term

CA long term effects on motivation

= primarily long term motivator as it is an intrinsic motivator where an employee is motivated to enhance their career and perform better which therefore leads to long term motivation

CA adv and dis

adv= reward past performance and increases the contribution of employees to the business, also increases levels of feeling valued = increases levels of productivity

dis = can cause conflict to arise = jealousy as there are a limited number of positions, employees can be promoted beyond their ability

Investment in training

direction of financial resources to benefit the business as it aims to teach skills and equip employees with the expertise to perform at a higher level

examples of investment in training

1. mentoring
2. training programs
3. paying for employees to be trained by professional outside of the business

Inv in Training short term effects on motivation

= boost skills and confidence and improve performance which motivates employees

Inv in Training long term effects in motivation

employees are encouraged to continuously improve skills which can help with the performance of the job = long term motivator

adv and dis int in Training

adv = shows employees business values their contribution and support by advancing their careers , and benefits business by improving skill level which can help achieve business objectives

dis= higher level skills may be wasted on employees, and it’s expensive business may not be able to cover the cost

support strategies

providing employees with any assistance that helps employees cope with difficulties that affect their performance

examples of support strategies

employee assistance program = confidential counselling

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mentoring programs = support new employees to be familiarised with new work place and builds relationship

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accommodating for out of work obligations = supports employees by considering life out of work and taking into considerations obligations outside of work

SS short term effects on motivation

= feel valued by business = pushes employees to strive to work at a higher level

SS long term effects on motivation

= supportive environment creates workplace culture where employees feel supported = creates long term motivation

adv and dis of SS

adv = Support strategies such as encouragement have little to no cost, and Counselling and mentoring can help develop meaningful relationships

dis= It may be difficult to find reasons to support and encourage some employees, and Requires the business to have a positive corporate culture

Sanction strategy

= employers penalise employees for poor performance or breaching business policies= employees are motivated through punishment

examples of sanctions

verbal warnings, written warnings, pay cuts, demotion or termination

short term effects on motivation sanction strategy

often seen as a short term motivator as sanctions can get an employee motivated to do the right thing IMMEDIATLEY

long term effects on motivation sanction strategy

can cause poor work culture, where employees don’t feel valued = demotivation 

adv and dis of sanction strategies

adv = Sanctions for poor behaviour can motivate employees to improve performance and Can stop inappropriate behaviour quickly

dis= Excessive emphasis on sanctions can reduce employee sense of belonging and decrease motivation and May cause resentment in employees causing manager and employee conflicts to arise