WEILAI Online Academic assistant
WEILAI Online Academic assistant
Back to 课程

Business AS CIE

0% Complete
0/0 Steps
  1. enterprise as
    6 主题
  2. business-structure as
    6 主题
  3. size-of-business as
    3 主题
  4. business-objectives as
    3 主题
  5. stakeholders-in-a-business as
    2 主题
  6. human-resource-management as
    8 主题
  7. motivation as
    4 主题
  8. management as
    2 主题
  9. the-nature-of-marketing as
    7 主题
  10. market-research as
    3 主题
  11. the-marketing-mix as
    6 主题
  12. the-nature-of-operations as
    3 主题
  13. inventory-management as
    2 主题
  14. capacity-utilisation-and-outsourcing as
    1 主题
  15. business-finance as
    2 主题
  16. sources-of-finance as
    3 主题
  17. forecasting-and-managing-cash-flows as
    1 主题
  18. costs as
    4 主题
  19. budgets as
    1 主题
  1. Business AS CIE
  2. motivation as
  3. motivation motivation-methods-in-practice
课 7, 主题 4
In Progress

motivation motivation-methods-in-practice

课 Progress
0% Complete

Exam code:9609

Financial motivators

  • Financial incentives are rewards or payments given to employees in return for their labour or improved performance

Financial incentives and motivation theory

Financial incentive

Explanation

Link to motivation theory

Piece rate

  • Employees are paid according to the number of units or pieces they produce

  • Commonly used in manufacturing or assembly line settings to encourage workers to produce more

  • Taylor’s Scientific Management

  • Focused on output and financial reward as the main motivator

Time rate

  • Employees are paid based on the number of hours they work, often at an hourly wage

  • This method values time over output

  • A hygiene Factor in Herzberg’s Theory

  • Provides financial security but doesn’t directly motivate higher performance

Salary

  • A fixed monthly or annual payment not based on hours worked or output

  • Offers stability and is often linked to professional or office-based roles

  • A hygiene Factor in Herzberg’s Theory

  • Removes dissatisfaction (e.g. worrying about pay), but does not itself motivate employees to achieve more

Commission

  • A percentage of sales revenue is paid to workers who sell products or services

  • Commonly used in sales roles and motivates staff to sell more

  • A hygiene factor in Herzberg’s theory because it provides financial reward but doesn’t always lead to long-term motivation on its own

  • When combined with public recognition (like ‘Salesperson of the Month’), it can meet esteem needs in Maslow’s hierarchy, making employees feel valued and respected for their achievements

Bonus

  • An additional payment is given to staff as a reward for achieving specific goals, completing projects on time, or exceeding expectations

  • Connects to Esteem Needs in Maslow’s Hierarchy (achievement) but
    Herzberg warned using bonuses as main pay can harm motivation and behaviour (e.g. banking crisis example)

Profit share

  • A portion of the company’s profits are shared with employees, encouraging them to work as a team and support the business’s success

  • A motivator in Herzberg’s Theory

  • Linked to increased responsibility and recognition (staff feel like part-owners)

Performance-related pay

  • Staff are paid based on how well they meet targets or performance goals

  • Criticised for being open to bias and demotivation if unfair

  • A hygiene Factor in Herzberg’s Theory

  • May cause dissatisfaction and is often viewed as unfair, especially if targets are unclear or subjective

Fringe benefits

  • Extra non-cash rewards such as company cars, health insurance, gym membership, or staff discounts

  • Designed to improve employee satisfaction and retention

  • A hygiene Factor in Herzberg’s Theory

  • Makes the work environment more comfortable but does not directly motivate improved performance

Advantages of using financial motivators

  1. Quickly boosts performance

    • Financial rewards like bonuses or commissions can lead to an immediate increase in effort and output

  2. Easy to measure and manage

    • Targets linked to pay, such as volume of sales or units produced, are clear and simple to monitor

  3. Attracts skilled employees

    • High pay and incentives can help a business compete for top talent in the job market

Disadvantages of using financial motivators

  1. Can reduce teamwork

    • If pay is based on individual results, employees may compete instead of working together

  2. Short-term focus

    • Employees may focus only on rewards and ignore quality, customer service or long-term goals

  3. Costly for the business

    • Bonuses, commission and other financial rewards can become expensive, especially if not linked to overall profit

Non-financial motivators

  • Many people want challenge, recognition and opportunities for development from their work

  • According to Herzberg, motivators like job enrichment, promotion, and recognition increase job satisfaction by giving responsibility and purpose

    • Empowerment and participation in decision-making help employees feel trusted, which boosts motivation

  • According to Maslow, non-financial rewards meet higher-level needs like belonging, esteem and self-fulfilment

Examples of non-financial motivators

Diagram showing non-financial motivators: training, promotion, status, redesign, teamwork, empowerment, decision-making, and job enrichment.
Non-financial motivators include improved status, opportunities for promotion and job enrichment

  • Training and development help employees improve their skills and grow in confidence, making them feel more capable and valued

  • Opportunities for promotion encourage employees to work harder by offering a clear path to higher-level roles and responsibilities

  • Improved status gives employees a higher job title or position, increasing their sense of importance and recognition

  • Job redesign involves changing job roles to make them more interesting or meaningful, which can reduce boredom and boost motivation

  • Team working encourages collaboration and a sense of belonging, helping employees feel supported and connected

  • Empowerment means giving employees the freedom to make decisions, which increases trust, confidence, and motivation

  • Participation in decision-making involves employees in business decisions, making them feel respected and more committed to the outcomes

  • Job enrichment adds more challenging or meaningful tasks to a role, giving employees a sense of achievement and purpose

Motivation theories in practical situations

  • Businesses use motivation theories to understand what motivates their staff and then apply these ideas to improve performance, job satisfaction, and staff retention

Applying Taylor’s theory

  • Taylor suggested that workers should be given simple tasks and paid based on how much they produce

  • Businesses may use performance-based pay systems

    • For example, factory workers are paid per unit made

    • Tasks are often simplified and repeated to improve speed and efficiency

    • Close supervision and clear instructions are given to employees

Case Study

Dhaka Stitchworks Ltd is a clothing manufacturer based in Bangladesh that supplies T-shirts to international fashion brands

Logo of Dhaka Stitchworks Ltd., featuring a spool of thread with a needle in a dotted circle, alongside bold text on a beige background.

The business employs over 200 factory workers and follows a piece-rate payment system, where each worker is paid £2 for every completed T-shirt

This system encourages workers to sew as many garments as possible each day, as their earnings depend on how much they produce

Supervisors monitor the production line closely and give clear instructions, in line with Frederick Taylor’s idea that efficiency improves when tasks are simple and output is rewarded

The factory has achieved high productivity levels using this approach. However, some workers feel their work is repetitive and physically tiring. A few have left the job due to the lack of variety and long hours

Applying Herzberg’s two-factor theory

  • Businesses make sure basic hygiene factors, such as fair pay and a clean and safe environment, are in place

  • Then they focus on motivators by giving employees responsibility, chances for promotion or by recognising achievements

Case Study

KrakSoft Technologies is a software company based in Kraków, Poland, specialising in developing mobile apps and digital solutions for clients across Europe. The business employs over 80 software developers, designers and project managers

Logo for Kraksoft Technologies in blue, featuring a stylised "K" with circuit-like design on a dark background. Includes text "KRAKSOFT TECHNOLOGIES".

Hygiene factors

  • Employees receive competitive salaries and enjoy modern, comfortable offices

  • They also benefit from flexible working arrangements and remote work options

Motivators

  • Staff are regularly praised for achievements, with monthly recognition awards and performance bonuses

  • They are encouraged to lead projects and attend international technology conferences

  • They also take part in career development programmes tailored to their goals

Outcomes

  • Employees are engaged, creative and willing to take on responsibility

  • Staff turnover is low, and the work environment is known for being both productive and positive

Employee participation

  • Employee participation means involving workers in decisions that affect the running of the business

Responses

您的邮箱地址不会被公开。 必填项已用 * 标注