Motivating Employees (Copy)
2 People in Business
2.1 Motivating Employees
2.1.1 Importance of a Well-Motivated Workforce
Why People Work
- Earn income to satisfy needs and wants.
- Job satisfaction, social belonging, self-esteem.
- Security and career growth.
Motivation = the desire/drive to work hard to achieve personal + business goals.
Benefits of Motivation
- Higher labour productivity → more output per worker.
- Reduced absenteeism → fewer missed days.
- Lower labour turnover → staff stay longer, reduces recruitment costs.
- Improved customer service.
Maslow’s Hierarchy of Needs
| Level | Example at Work |
|---|---|
| Physiological | Fair wages to afford food/shelter |
| Safety | Job security, safe workplace |
| Social | Teamwork, friendly colleagues |
| Esteem | Recognition, promotions |
| Self-actualisation | Opportunities for creativity, challenging work |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course
Taylor’s Theory (Scientific Management)
- People motivated mainly by money.
- Workers paid by output (piece rate).
- Criticism: ignores social + non-financial motivators.
Herzberg’s Two-Factor Theory
- Hygiene factors (pay, working conditions, job security) prevent dissatisfaction but don’t motivate.
- Motivators (achievement, responsibility, recognition) create motivation.
2.1.2 Methods of Motivation
Financial Rewards
| Method | Description | Example |
|---|---|---|
| Wage | Paid weekly, based on hours | Factory workers |
| Salary | Fixed annual payment | Office staff |
| Bonus | Extra reward for performance | End-of-year cash bonus |
| Commission | % of sales earned | Real estate agent |
| Profit Sharing | Employees share company profit | John Lewis (UK retailer) |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course
Non-Financial Methods
| Method | Description | Example |
|---|---|---|
| Job Enrichment | More responsibility + challenge | Supervising a project |
| Job Rotation | Switching roles to reduce boredom | Assembly line workers rotating tasks |
| Teamworking | Group projects for belonging | Sales team collaboration |
| Training | Improves skills + motivation | IT training for staff |
| Promotion Opportunities | Career growth motivates staff | Managerial promotions |
Choosing Appropriate Motivation Methods
- For sales staff → commission, bonuses.
- For skilled professionals → training, enrichment, recognition.
- For factory workers → wages, job rotation, teamworking.
- Best strategy = mix of financial + non-financial rewards depending on job type.
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course
Quick Recap Keywords
- Motivation = drive to work well.
- Benefits = productivity ↑, absenteeism ↓, turnover ↓.
- Maslow = needs hierarchy.
- Taylor = money = main motivator.
- Herzberg = hygiene vs motivators.
- Financial methods = wage, salary, bonus, commission, profit share.
- Non-financial methods = enrichment, rotation, teamwork, training, promotion.