T3 Business : concept of motivation & incentives

concept of motivation (scasa)

rewards, benefits & penalties

employee incentives

a system of rewarding success and effort in the workplace by allowing employees to be recognised for their loyalty and efforts in meeting goals and objectives.

motivation

the driving force which causes employees to achieve goals. the motivation factors are intrinsic and extrinsic

extrinsic motivatiors

praise from peers, managers or leadership, career growth (raises, promotion, increase responsibilities), employee rewards and incentivies

intrinsic motivators

connection to the organisation (mission, values and culture), learning opportunities and development, ownership

rewards

Employee reward systems refer to programs set up by a company to reward performance and motivate employees on individual and/or group levels.

benefits

a form of compensation paid by employers to employees over and above regular salary or wages. eg, Company car, credit cards, discounted products, child care, medical benefits, gym membership, counselling services

penelties

Negative factors that motivate an employee to perform their job & meet goals and objectives.

purpose of employee incentives

1. Attract and retain staff

2. Increase sales and profit

3. Achieve business goals

4. Motivate staff to improve performance

financial incentives

sales bonuses and share schemes

non- financial incentives

skill improvement training, recognition and reward

reasons for employee incentives

1. attract and retain staff

2. increase sales and profit

3. achieve business goals

4. motivate staff to improve their performance

types of leadership styles

autocratic, participative, situational

outline/describe autocratic leader

autocratic leaders drive people under their command, perform at their best and accomplish tasks without making mistakes.

features of autocratic leadership

one person makes all the decisions, one-way communication only, limits crativity and out of box thinking.

advantages of autocratic leadership

meet goals and objectives with set deadlines, complete jobs accurately and efficiently as they insists all employees follow orders and instructions.

disadvantages of autocratic leadership

leaders have no people skills therefore employees feel demotivated, limits creativity and efficent ways of completing a job.

where autocratic may be used

apprentices as a managers must supervise and be autocratic in how job is complete, business import goods from overseas, employees are handling explosives, chemicals, money, and safety of products.

outline/describe a participative leadership

leaders achieve through people, through teamwork, and through collective involvement in the task.

features of participative leadership

make people feel valued as an integral part of the team, make the group itself the focus for the team, achieved through relationships and cooperative teamwork.

advantages of participative leadership

employees feel valued and included, high morale and productivity, reduced staff turnover and absences, plenty of ideas and input, working with industry leaders helps participative leaders acquire funding, important licenses

disadvantages of participative leadership

too many ideas can be confusing and delay work, inefficient for employees who need guidance and teaching, become too friendly and make it difficult to control situations

where participative may be used

in team structure where employees work together to complete projects, when business is operating in global environment.

outline/describe situational leadership

combines an autocratic and or participative leadership style to cater to different people and situations within the same organisation.

features of situational leadership

viewed as task relevant, can adapt their leadership styles across a broad range of varying maturity levels within the organisation. choice for leadership style are the individual employees’ willingness and ability to take responsibility for the task as well as their applicable education and experience.

advantages of situational leadership

adapts to the situation, employees respond better to a situational leader, trust the leader can perform under stress and high pressure and at the same can relax and allow the employees to make their own decisions           

disadvantages of situational leadership

the leader swings between 2 styles and therefore employees may find it hard to adapt to their leader who can swiftly change from one to the other.

where situational may be used

Trainee, apprentices, unqualified employees, foreign employees – Autocratic

Employees experienced, skills and qualifications – Participative

Sourcing products overseas – Autocratic to make products to Australian standards

Employing people overseas – Participative - to work with local cultures and religion