Motivation in a business can be defined as the “will to work”. It is the desire by an individual to work hard and carry out a job as effectively and efficiently as possible.
Benefits of employing a highly motivated workforce :
Staff retention rates will increase - Staff will feel happier at work and therefore will not be tempted to look or change jobs if they see a vacant post advertised at a firm.
Lower levels of absenteeism - employees will be less likely to take a day off as they will be keen to always attend work.
Easier to recruit new staff - Having a motivated workforce willl give the business a good reputation as employer. This means that when job vacancies can arise in the future there will be a large amount of applicants applying for positions. This gives the business a greater range of choices when selecting a candidate making it easier to recruit the best staff.
Financial methods of motivation :
Salary - A fixed yearly payment to an employee for doing their jobs
Wages - Money given to employees on an hourly basis, staff are paid an hourly rate multiplied by the number of hours they have worked.
Piece rate - When payment is paid according to how much each member of staff produces. This encourages each member of staff to work quickly, increasing output levels and labour productivity.
Commision - A payment method where staff are paid a set percentage of the value of sales that they have made. This encourages employees to try and make more sales.
Non financial methods of motivation :
Training - This allows staff to develop new skills which enables them to perform jobs better. Staff feel more motivated from this as they feel the business is investing time into them personally therefore will feel more valued.
Greater responsibility - Job enrichment involves employees being given a role through delegation. This can motivate staff as the ability to take on more challenging roles will result in them feeling a sense of achievment.
Styles of management
Autocratic - This is where managers tell others what to do. Staff may prefer this style of management if they are unskilled or are new therefore will be unsure of the job requirements.
Democratic - Where managers give junior managers more freedom to take part in the decision making process. This means that staff will feel more involved helping them develop their skills and gain future promotions.
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