Ways to Motivate Employees (AQA GCSE Business)
Revision Note
Written by: Lisa Eades
Reviewed by: Steve Vorster
The Benefits of a Motivated Workforce
Motivation refers to the inner desire or willingness that drives a person to take action and achieve a specific goal or outcome
Motivation plays a critical role in business success:
Employees are more productive and efficient
They are likely to be engaged in their work and use their initiative to solve problems
They generate higher levels of output and quality
Increased productivity results in higher profits for the business
Labour turnover rates are often lower
Motivated employees are more likely to stay with the company long-term
Lower turnover rates reduce the need for costly recruitment and training
Long-serving staff are likely to be productive
The reliability and loyalty of workers are high
Motivated employees take pride in their work, show up on time, meet deadlines and take fewer sick days
This leads to increased trust between the business and its employees and encourages a positive organisational culture
Financial Motivation
Financial incentives are rewards or payments given to employees in return for their labour or improved performance
Diagram: Financial Incentives
Financial incentives motivate some employees, depending upon the importance that they place on monetary items/money as a reward
Comparison of Financial Incentives
Incentive | Explanation |
---|---|
Remuneration |
|
Commission |
|
Bonus |
|
Profit sharing |
|
Promotion |
|
Fringe benefits |
|
Non-financial Motivation
Non-financial incentives are rewards that are not directly related to money
These incentives may be intangible and include methods that lead to recognition, praise or job satisfaction
Businesses commonly use a mixture of financial and non-financial methods to motivate workers
This helps to meet the individual needs of different workers they employ and helps avoid wasting financial rewards on those for whom it would be unlikely to improve their performance
Types of Non-financial Incentives
Incentive Type | Explanation |
---|---|
Training |
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Autonomy |
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Job enrichment |
|
Job rotation |
|
The style of management used by leaders can have a significant impact on motivation in the workplace
Autocratic managers make most of the decisions in a workplace
This provides clear direction for employees
For some employees, this lack of autonomy can cause frustration and dissatisfaction
Democratic managers involve workers when making decisions
Workers who feel that they have a say are likely to be more engaged at work
Decision making may be less efficient
Examiner Tips and Tricks
In evaluation questions, remember that there is no right or wrong way to motivate workers. Rewards that are closely linked to the individual needs of workers are most likely to be successful. This is an excellent 'it depends' point to make in your conclusion.
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