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Money – People need money to buy food, water and other items they need to
live.
Social needs – People just like us likes to feel part of a team, socialise and
make friends.
Esteem needs – Feeling important, feeling that they are contributing to a
business.
Job satisfaction – enjoyment from the work and achievements they
have accomplished.
Security – Feeling of having a secure job with a stable income. (not likely to
lose job etc…)
Criticisms
These needs to not apply to all employees (all humans are different)
Difficult for managers to determine which needs their employees need
Criticisms
There are 2 factors Hygiene & Motivation factors. Workers expect hygiene
factors to be available to them otherwise they will become demotivated. Hygiene
factors will not motivate the workers only motivation factors will make the
employees work harder.
2.1.2 – Methods of motivation
3 Ways to motivate employees
Financial rewards
Non-financial rewards
Job satisfaction
Financial Rewards
Wages (time rate) – Payment for a period of time such as amount per hour
e.g. $10 per hour.
Cons – Good & bad workers get paid the same, Recording every employee’s
working hours may be complicated, costs business to hire an employee to
calculate each workers’ wage.
Cons – Workers may rush and produced bad quality products, Workers that
make slow high-quality products will get paid less.
Commission – Sales staff are often paid a small percentage of the selling
price of the product they are selling e.g. If a car salesman sells a car, the
salesman might get 20% of the selling price of the car which is added to his
salary.
Profit sharing – Employees receive share of the company’s profit. This
benefits the company because employees will want the company to have a
higher profit.
Bonus – Money paid to workers when they work well usually at the end of the
year.
Performance related pay – Employee’s pay is linked to the effectiveness of
their work. This is often used with jobs where output cannot be easily
measured.
Share ownership – Employees are given some of the company’s shares. This
makes them work hard as prices of shares may increase if the business is
doing well. + This also makes the employee feel that they are part of the
company.
Non-Financial Rewards
Non-financial rewards given to employees are also called perks or fringe
benefits.
Job Satisfaction
Pay
Promotion
Working conditions
The work itself
Status of the job
Job Rotation – Workers swap roles to do different tasks. This stops the
employee from getting bored.
Job Enlargement – More extra tasks are given to the worker so they have a
variety of things to do. However, these tasks should not be more difficult. e.g.
supermarket cashier now adds price label on items.
Job Enrichment – Adding tasks that require more skill and responsibility. e.g.
receptionist employed to greet clients now deal with telephone enquiries.
Autonomous work groups & team working – Working in teams make
employees more interested in the tasks since they can organise themselves.