Please enable JavaScript.
Coggle requires JavaScript to display documents.
Methods of motivations - Coggle Diagram
Methods of motivations
Non-Financial Motivators
Job rotation
Definition:
a motivation technique where a worker moves between different but similar jobs and completing tasks into those jobs
Advantage:
-Reduces boredom
-Enables a variety of skills and experience to be gained
-Business gets a better trained workforce
Disadvantages:
-It takes time for new skills to be learned,
-mistakes can happen
-Some workers prefer certainty in their jobs
Job Enrichment
Definition:
Job enrichment is a method of motivating employees where a job is designed to have interesting and challenging tasks which can require more skill and can increase pay.
-
-
Flexible Working
Employee Involvement
Allowing staff to take part in decision-making makes them feel trusted and important, which boosts their motivation and commitment.
Offering options such as flexible hours or remote work improves work–life balance and increases satisfaction without financial rewards.
-
Providing opportunities to learn new skills or attend courses motivates employees by supporting their personal growth and career progress.
Benefits that the business pays workers that does not directly involve incomes. They can enhance job satisfaction, foster a positive work environment, and contribute to a sense of belonging within the company.
Delegation
Advantages:
-Subordinates feel they are trusted, and therefore get motivated
-
-
Job enlargement
-
Advantages:
-Workers may complete the entire process.
-Reduces boredom
-Encourage employee satisfaction
-
Consultation
-
Advantages:
-Employees feel they are valued
-Change is less likely to be resisted
-Workers may have good ideas
Disadvantages:
-Views of workers might be heard, but later ignored, therefore demotivating staff
-It makes the process more time consuming
-
Financial motivations
Salaries
Commision
Disadvantages:
-Short-term sales increases if staff pressure customers into unwanted purchases
-Motivates them to increase sales
-Potentially damaging the business's reputation.
-Sales staff may experience stress due to fluctuating pay based on sales performance.
Advantages:
-Often paid to sale staffs
-Motivates them to increase sales
-Get paid extra amount with each sale
Definition:
An amount of money given to workers after completing a task or selling a certain amount of goods or services
Bonuses
-
Definition:
Bonuses are lump-sum payments awarded to employees for good performance. This can be distributed at the end of the year.
-
Profit sharing
Definition:
It allows employees to receive a portion of the company’s profit in addition to their salaries
-
Disadvantages:
-Hardworking staff may earn less if profits are low -> demotivating
-Individual performance is not rewarded equally.
Share ownership
-
-
Disadvantages:
-Share prices can fall
-Employees may worry too much about the stock market instead of work.
-Can be expensive
Performance related pay
-
Advantages:
-Strong motivation to work harder
-Rewards high achievers fairly
-Can increase productivity
Disadvantages:
-Can cause stress and pressure
-May create unhealthy competition and reduce teamwork
-Hard to measure fairly
Salaries are fixed monthly payments based on an annual amount, don’t usually include extra pay for extra work, and often come with benefits like paid leave or health insurance.
Financial rewards can serve as incentives to encourage employees to enhance their productivity and effectiveness.
Wages
Time rate system
Definition:
Time rate system pays employees based on how many hours they work. For example if an employee earns $5 per hour they work and works 15 hours then they would earn a total of $75 that day. This method simplifies wage calculations and provides clarity to workers regarding their earnings.
Advantages:
-Time rates are simple for a business to calculate and administer
-It is easy to understand from an employee's perspective
-The employee can budget personal finance with some certainty
Disadvantages:
-Time-sheets must be filled out to record hours worked, which can be time-consuming.
-Both high and low performers receive the same pay, which may not incentivize productivity.
-Supervisors are often required to ensure quality and productivity, increasing operational costs.
Employees who work beyond their standard hours are usually compensated with overtime pay, which includes their regular hourly rate plus an additional amount.
Piece rate
Definition:
Piece rate is a compensation system where workers are paid based on the quantity of products they produce. This means that the more products a worker makes, the higher their earnings will be.
This structure incentivizes workers to increase their productivity, as their pay directly correlates with their output.
Advantage:
-Workers are motivated to produce more to earn higher wages.
-Compensation is directly linked to individual performance, rewarding efficient workers.
-Workers can manage their time and output according to their personal goals and needs.
Disadvantages:
-Workers may prioritize quantity over quality, leading to subpar products.
-Earnings can fluctuate significantly based on the employers requirement, making financial planning difficult for workers.
-The drive to produce more can create a high-pressure work, which may lead to lower productivity