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2.1 Motivating Workers (Non-financial Rewards (:red_cross: Company Vehicle…
2.1 Motivating Workers
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1. Theories
F.W. Taylor
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Disadvantages
- His ideas are too simplistic, employees are not just motivated by money
- If workers are unfulfilled by their work, there will be no increase in effectiveness even with higher pay
- May be practical problems if you can't easily measure the output
Maslow
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- Each level must be achieved before an employee can be motivated by the next level.
- E.g. Once social needs are met, they will no longer motivate the worker. They need to move onto the next level
Disadvantages
- Some levels may not exist for some individuals
- Some rewards may fit into more than one level
(e.g higher pay can be give status and boost self esteem)
Herzberg
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- Hygiene factors must be satisfied; if not, they can act as demotivators.
- Hygiene factors are not motivators, they effects wear off once satisfied
- Only "Motivators" can truly motivate workers (motivators consist of growing psychologically)
2. Methods of Motivation
Financial Rewards
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:heavy_plus_sign: Bonus
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:+1: Encourages workers to work hard
:-1: Can cause resentment amongst workers if only one gets a bonus, leading to demotivation
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:red_cross: Commission
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:+1: Encouraged sales staff to sell as much as possible --> May increase sales
:-1: Can be only a short term increase in sales if customers don't buy something they really want, leading to a bad reputation and fall of sales in long term.
:-1: Can be stressful for sales staff if there's a bad month
:red_cross: Salaries
:pencil2: Paid annually but divided by 12. Fixed amount every month, usually straight into a bank account for white-collar workers.
:+1: Easy to calculate salary costs
:+1: Employer has money in their bank account longer
:+1: Less time consuming as they don't need to be calculated often
:star: They're a fixed amount but rewards (e.g. commission; profit sharing; bonus; performance related pay; shared ownership) can be added
:red_cross: Piece Rate
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:+1: Encourages workers to work faster and produce more goods
:-1: May be lack of quality as workers are focused on quantity
:-1: Workers who are careful will not earn as much as those who rush
:-1: If machinery breaks down, workers will earn less money
:red_cross: Time Rate
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:+1: Easy to calculate as workers know exactly what they'll be paid
:-1: The time sheet recording system takes time
:-1: Good and bad workers get paid the same
:-1: Expensive as more supervisors are needed to make sure workers are being productive
:red_cross: Wages
:+1: Worker gets paid on a regular basis and doesn't have to wait long for money
:+1: If employee works longer than normal hours, overtime can be paid --> Motivation
:-1: Takes time and money to calculate as it's a weekly process
:-1: Wages Clerks often employed to do this
:pencil2: Payment for work, usually paid weekly.
Tend to be paid to manual workers (warehouses)
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2. Methods of Motivation
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:red_cross: Job Rotation - Involves workers swapping round and doing each specific task for a limited time, then changing again.
:red_cross: Job Enlargement - Where extra tasks of a similar level of work are added to a worker's job description.
:red_cross: Job Enrichment - Involves adding tasks that require more skill and/ or responsibility to the original job
:red_cross: Teamworking - Where a group of workers are given responsibility for a particular task. They, as a group, can decide how to complete it.
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