Topic: Employee Motivation in Practice

What are some reasons people work?

To earn money, for a sense of achievement/job satisfaction, to belong to a group, for a sense of security, to obtain a feeling of self-worth.

Who emphasized financial rewards as the key motivator?

Taylor emphasized pay, particularly piece-rate, as the best way to motivate employees.

Who believed non-financial rewards were better motivators?

Mayo, Maslow, and Herzberg emphasized non-financial rewards like team working, empowerment, and job enrichment.

What are the main types of financial incentives and rewards?

Wages, Salaries, Bonus systems, Commission, Profit-sharing, Performance-related pay, Share options, Fringe benefits.

What are wages?

Wages are paid per hour worked, with pay typically received at the end of each week. Often for lower-skilled or temporary workers.

What are salaries?

Salaries are usually paid annually and distributed monthly. They are typically given to managers and senior employees.

What are fringe benefits?

Additional items given to employees apart from wages or salary, e.g., company cars, private health insurance, free meals.

What is overtime pay?

Pay for additional hours worked beyond regular working hours, often paid at a higher rate (1.5 or 2 times the normal hourly rate).

What is a bonus pay system?

A bonus is paid when specific performance targets are met, often used at managerial levels.

What is profit-sharing?

Employees receive a share of the company’s profits, linking pay to performance and fostering team spirit.

What is Performance-Related Pay (PRP)?

Employees are paid based on achieving certain targets, helping align individual performance with company goals.

What are the disadvantages of Performance-Related Pay (PRP)?

Discourages team-based work, can be difficult to measure performance accurately, incentives may not be significant enough to motivate employees.

What is piece-rate payment?

Employees are paid per item produced within a set time period.

What are the advantages of piece-rate payments?

Low supervision required, encourages high-speed production, good incentive for workers motivated by pay.

What are the disadvantages of piece-rate payments?

Focus on quantity, not quality, can be repetitive and demotivating, workers may resist change.

What is commission-based pay?

Employees are paid based on a percentage of sales, linking compensation to performance.

What are non-financial incentives and rewards?

Empowerment, Praise, Promotion, Job enrichment and enlargement, Better communication, Working environment, Team working.

What is empowerment?

Giving employees the power to make decisions and take ownership of their work.

What is job enrichment?

Giving employees more challenging and interesting tasks to improve job satisfaction.

What is job enlargement?

Giving employees more tasks of a similar level of complexity to prevent monotony and increase job satisfaction.

What role does recognition play in employee motivation?

Recognition for good work boosts morale, increases motivation, and improves performance.

What is the importance of a safe and comfortable working environment?

A clean, safe, and comfortable working environment improves employee satisfaction and productivity.