UNIT 6: MOTIVATING WORKERS
Motivation is the reason why the employees want to work hard and work effectively for the business.
WHY PEOPLE WORK
People work for a variety of reasons.
The main reason why most people work because they need to earn money to buy food and the basic necessities for life. BUT some work is voluntary and doesn't yield any money.
=> The employees need motivation
The main reason why most people work because they need to earn money to buy food and the basic necessities for life. BUT some work is voluntary and doesn't yield any money.
=> The employees need motivation
WHY WORK?
+ Money: to pay for necessities and some luxuries.
+ Security: a sense of security, i.e. knowing that your job and pay are safe-you aren't likely to lose your job.
+ Social needs (affiliation): feeling part pf a group or organization, meeting people, making friend at work.
+ Esteem needs (self-importance): feeling important, feeling that the job you do is important.
+ Job satisfaction: enjoyment is derived from feeling that you have done a good job.
+ Money: to pay for necessities and some luxuries.
+ Security: a sense of security, i.e. knowing that your job and pay are safe-you aren't likely to lose your job.
+ Social needs (affiliation): feeling part pf a group or organization, meeting people, making friend at work.
+ Esteem needs (self-importance): feeling important, feeling that the job you do is important.
+ Job satisfaction: enjoyment is derived from feeling that you have done a good job.
well-motivated =====> high productivity =====> increased =====> higher profits
workers (employees work more effectively) output
workers (employees work more effectively) output
unhappy =====> don't work very effectively =====> low =====> lower/no profit
workers output
workers output
MOTIVATION THEORIES
F.W. TAYLOR
+ His ideas were too simplistic-employees are motivated by many things and not just money.
+ You can pay an employee more money, but if they are unfulfilled by their work in some way, there will be no increase in their effectiveness at work and there will be no productivity gains.
+ A practical problem arises if you cannot easily measure an employee's output.
+ You can pay an employee more money, but if they are unfulfilled by their work in some way, there will be no increase in their effectiveness at work and there will be no productivity gains.
+ A practical problem arises if you cannot easily measure an employee's output.
MOTIVATORS
+ Achievement
+ Recognition + Personal growth/development + Advancement/promotion + work itself |
'HYGIENE' (OR'MAINTENANCE') FACTORS
+ Status
+ Security + Work conditions + Company policies and administration + relationship with supervisor + Relationship with subordinates + Salary |
motivating factors-financial rewards/motivators
There are three factors which can motivate employees
+ financial rewards
+ non-financial rewards
+ introducing ways to give job satisfaction
+ financial rewards
+ non-financial rewards
+ introducing ways to give job satisfaction
financial rewards
Wage is payment for work, usually paid weekly.
are often paid every week, sometimes in cash and sometimes into a bank account
+ Advantages:
. The worker gets paid on a regular basis and does not have to wait long for some money. Wages tend to be paid to manual workers, such as those who work in a warehouse
. If the employee works longer than their normal hours, they can usually be paid overtime. They can be paid how much, it depends on their overtime.
+ Disadvantages:
. Because the wages are paid weekly, you have to calculate every week, which will take times and money.
. Wage clerk are often employed to perform the risk.
=> When calculating the wages to be paid, they can work out in a number of different ways.
are often paid every week, sometimes in cash and sometimes into a bank account
+ Advantages:
. The worker gets paid on a regular basis and does not have to wait long for some money. Wages tend to be paid to manual workers, such as those who work in a warehouse
. If the employee works longer than their normal hours, they can usually be paid overtime. They can be paid how much, it depends on their overtime.
+ Disadvantages:
. Because the wages are paid weekly, you have to calculate every week, which will take times and money.
. Wage clerk are often employed to perform the risk.
=> When calculating the wages to be paid, they can work out in a number of different ways.
Time rate: this is payment by hour (payment for s period of time)
+ Advantages:
. This makes it easy to calculate the worker's wages and the worker knows exactly what they will be paid for working a certain period of time.
+ Disadvantages:
. The hours worked are often recorded on a time-sheet which must be filled in and used to calculate the wages by the Accounts department. This system takes time.
. Good and bad workers get paid the same amount of money.
. Often supervisors are needed to make sure the workers keep working and producing a good quality product. This is expensive because more supervisors are needed by the business.
. A clocking-in system is needed to determine the number of hours worked by the employees.
=> Time rate is often used where it is difficult to measure the output of the worker.
+ Advantages:
. This makes it easy to calculate the worker's wages and the worker knows exactly what they will be paid for working a certain period of time.
+ Disadvantages:
. The hours worked are often recorded on a time-sheet which must be filled in and used to calculate the wages by the Accounts department. This system takes time.
. Good and bad workers get paid the same amount of money.
. Often supervisors are needed to make sure the workers keep working and producing a good quality product. This is expensive because more supervisors are needed by the business.
. A clocking-in system is needed to determine the number of hours worked by the employees.
=> Time rate is often used where it is difficult to measure the output of the worker.
Piece rate: This is where the workers are paid depending on the quantity of products made-the more they make, the more they get paid.
+ The advantage with this system is that it encourages workers to work faster and produce more goods.
+ Disadvantages:
. Workers may concentrate on making a large number of products and ignore quality, producing goods that may not sell very well because they are of a poor quality.
. Workers who are careful in their work will not earn as much as those who rush, which may not be seen as fair
. If the machinery breaks down, the employees will earn less money. Because of this, workers are often paid a guaranteed minimum amount of money.
+ The advantage with this system is that it encourages workers to work faster and produce more goods.
+ Disadvantages:
. Workers may concentrate on making a large number of products and ignore quality, producing goods that may not sell very well because they are of a poor quality.
. Workers who are careful in their work will not earn as much as those who rush, which may not be seen as fair
. If the machinery breaks down, the employees will earn less money. Because of this, workers are often paid a guaranteed minimum amount of money.
salaries
Salaries is payment for work, usually paid monthly.
are paid monthly normally straight into a bank account.
+ A salary is calculated as an amount of money per year and is divided into 12 monthly amounts. This is easy to calculate salary costs for the business.
+ It is paid for the job and extra work isn't usually paid for-it is counted as part of the salary.
+ The employer has the money in their bank account for longer than if they were paying their workers wages, as salaries are paid only once a month.
+ The payment has to be calculated only once a month instead of at least four times a month-as with wages.
are paid monthly normally straight into a bank account.
+ A salary is calculated as an amount of money per year and is divided into 12 monthly amounts. This is easy to calculate salary costs for the business.
+ It is paid for the job and extra work isn't usually paid for-it is counted as part of the salary.
+ The employer has the money in their bank account for longer than if they were paying their workers wages, as salaries are paid only once a month.
+ The payment has to be calculated only once a month instead of at least four times a month-as with wages.
Workers may get more money if the following rewards are added to the basic salary:
+ Commission-is payment relating to the number of sales made.
+ Profit sharing-is a system whereby a proportion of the company's profits is paid out to employees.
+ Bonus-is an additional amount of payment above basic pay as a reward for good work.
+ Performance-related pay is pay which is related to the effectiveness of the employee where their output can easily be measured.
+ Share ownership-is where shares in the company are given to employees so that they become part owners in the company.
+ Commission-is payment relating to the number of sales made.
+ Profit sharing-is a system whereby a proportion of the company's profits is paid out to employees.
+ Bonus-is an additional amount of payment above basic pay as a reward for good work.
+ Performance-related pay is pay which is related to the effectiveness of the employee where their output can easily be measured.
+ Share ownership-is where shares in the company are given to employees so that they become part owners in the company.
An appraisal is a method of assessing the effectiveness of an employee.
Fringe benefits are non-financial rewards given to employees.
Fringe benefits are non-financial rewards given to employees.
Non-financial rewards may include:
+ Company vehicle (car)
+ Discounts on the firm's products
+ Health care paid for
+ Children's education fees paid
+ Free accommodation
+ Share options (where company shares are given to employees
+ Generous expense accounts (for food and clothing)
+ Pension paid for the business
+ Free trips abroad/holidays
+ Company vehicle (car)
+ Discounts on the firm's products
+ Health care paid for
+ Children's education fees paid
+ Free accommodation
+ Share options (where company shares are given to employees
+ Generous expense accounts (for food and clothing)
+ Pension paid for the business
+ Free trips abroad/holidays
Job satisfaction is the enjoyment derived from feeling that you have done a good job.
Employees have different ideas about what makes their jobs satisfying. They include:
+ Pay-the amount of money paid to an employee
+ Opportunities for promotion
+ Working conditions
+ Fringe benefits or non-financial rewards
+ The way that the employee is managed or treated
+ Working hours
+ Colleagues
+ The nature of the work itself
+ Level of responsibility
+ The sense of achievement derived from the job
+ Recognition for goof work
+ Chance for training
+ Status of the job
Employees have different ideas about what makes their jobs satisfying. They include:
+ Pay-the amount of money paid to an employee
+ Opportunities for promotion
+ Working conditions
+ Fringe benefits or non-financial rewards
+ The way that the employee is managed or treated
+ Working hours
+ Colleagues
+ The nature of the work itself
+ Level of responsibility
+ The sense of achievement derived from the job
+ Recognition for goof work
+ Chance for training
+ Status of the job
Job rotation involves workers swapping round and doing each specific task for only a limited time and then changing round again.
Job enlargement is where extra tasks of a similar level of work are added to a worker's job description
Job enrichment involves looking at jobs and adding tasks that require more and/or responsibility
REVIEW: