2.4 Motivation & Demotivation (SL)

Commission

a type of financial reward that pays workers a certain percentage of the sale of each good or service that they are responsible for

Differentiated Piecework

an incentive scheme that rewards more productive workers who exceed a pre-determined benchmark

Division of Labor

the process of breaking down different aspects of a job or task and assigning different people to each particular part of the work in order to improve efficiency and output

Empowerment

a non-financial motivator that involves developing the potential of workers or teams to achieve the best they can by granting them the authority to make various decisions and to execute their own ideas to solve business problems

Employee Share Ownership Schemes

a type of payment system that rewards staff by giving them shares in the company or by selling the shares at a discounted price

Esteem Needs

refers to the desire of people to feel respected, having value and having self-respect; in Maslow's Hierarchy of Needs

External Recruitment

the process of hiring people from outside the business

Fringe Payments

the financial rewards paid in addition to a worker's wages or salaries such as subsidized meals, housing allowance and pension fund contributions

Herzberg's Motivation-Hygiene Theory

this theory looks at the factors that motivate employees, namely hygiene factors (that must be met to prevent dissatisfaction) and the factors that actually motivate employees

Hygiene Factors

parts of a job that do not increase job satisfaction but help to remove dissatisfaction, such as reasonable wages and working conditions

Induction Training

a type of training aimed at introducing new employees to the organization

Internal Recruitment

hiring people who already work for the business to fill a vacant post

Job Enlargement

increasing the number of tasks that an employee performs, thereby reducing or eliminating the monotony of repetitive tasks

Job Enrichment

given workers more responsibilities and more challenging jobs

Job Rotation

a form of job enlargement where workers are given different tasks, but of the same level of complexity, to help reduce the problems caused by performing repetitive tasks

Labor Turnover

measures the percentage of the workforce that leaves the organization in a given time period, usually a year.

Maslow's Hierarchy of Needs

this theory outlines 5 levels of needs, from satisfying physiological needs to slef-actualization.

Motivation

the inner desire or passion to do something; the driving forces can be intrinsic and/or extrinsic

Motivators

the factors that Herzberg considered to increase job satisfaction and motivation levels, such as praise and recognition

Movement

this occurs when people do something because they need to, so they feel obliged to do so; according to Herzberg

National Minimum Wage

the lowest hourly pay that all firms must remunerate their workers, as stipulated by the government

Non-financial Rewards

non-monetary factors that motivate people by offering psychological and intangible benefits (i.e. factors not directly linked to money)

Off the Job Training

training conducted off-site, such as at a tertiary college or hotel conference center

On the Job Training

training carried out while at the workplace. For example, the training can be delivered by a manager, supervisor, or other specialist

Performance-related Pay (PRP)

a payment system that rewards people who meet set targets over a period of time

Piece Rate

a payment system that rewards people based on the amount that they produce or sell

Physiological Needs (Basic Needs)

the requirements for human survival, including food, water, shelter and warmth; according to Maslow's Hierarchy of Needs

Productivity

this measures the level of output per worker

Profit-related Pay

a type of financial reward system which remunerates workers a certain percentage or amount of the annual profits that the firm earns

Purpose

a non-financial reward that refers to the opportunity to make a difference

Remuneration

the overall package of pay and benefits offered to an employee

Safety Needs (Security Needs)

the requirements that make people feel safe, such as job security; according to Maslow's Hierarchy of Needs

Salary

a type of financial payment that rewards workers a fixed annual amount of money, usually paid per month

Self-actualization

the highest level of needs, which occurs when people become the very best that they can be and fulfil their potential; according to Maslow's Hierarchy of Needs

Scientific Management

this theory suggests that specialization and division of labor help to increase the level of prodcutivity

Social Needs (Love & Belonging Needs)

the requirement to be accepted by others; according to Maslow's Hierarchy of Needs

Teamwork

a form of non-financial motivation, which involves the combined efforts of a group of workers to achieve organizational goals

Time Rate

this payment system rewards staff for the time (rather than output) that they put into work.

Training

the process of providing opportunities for workers to learn and acquire employment-related skills and knowledge

Wages

a type of financial reward payment system based on time or output. Either paid as time rate (hours) or piece rate (output)