Please enable JavaScript.
Coggle requires JavaScript to display documents.
financial and non-financial methods of motivation - Coggle Diagram
financial and non-financial methods of motivation
Salary schemes
Salary schemes are a fixed wage based on the job role and calculated as an annual fee. This is a motivator as the pay is easily comparable so the workforce will feel they are being paid fairly.
Piece rate
Piece-rate pay gives a payment for each item produced so therefore motivates employees, particularly in production jobs, to increase output. However, if not managed properly (which can be difficult) employees may feel that the pay is not fair
Commission
Commission is a bonus paid based on achieving a target, particularly in sales jobs as it ill provide an incentive to increase sales and therefore revenue for the business they are working for. A disadvantage of this would be that it may take away from the quality of customer service.
Performance related pay
PRP is linked to achieving job related targets that are usually reviewed every 6 months or year, therefore showing how productively they have worked on pre-agreed objectives.
Bonus schemes/profit sharing
Profit sharing is when a percentage of net profit is distributed so therefore the employees feel the effects of there work as they are payed depending on the success of the business.
Job rotation
Job rotation involves the movement of employees through a range of jobs in order to increase interest and motivation and has additional benefits such as making it easier to cover for absent colleagues.
Employee recognition
Employee recognition can include initiatives such as employee of the month as it gives employees a direct goal to work towards, specifically if there is a reward or appraisal of some form.
Teamworking
This is when the workforce is organised into teams in order to benefit from the social aspects of motivation, become a more multi-skilled workforce and have shared responsibility
Delegation
Delegation is when authority or responsibility is passed down to employees. It leads to increased motivation as it contributes towards an employee’s esteem needs and can also contribute towards self-actualisation.
Job enlargement
Job enlargement works by widening the range of tasks that need to be performed in hope that employees will experience less repetition and monotony within the job. Despite this, employees rarely needs to acquire new skills to carry out the additional task, therefore it is beneficial for the employer as no additional training will be needed.