Learning Objectives: To be able to identify different types of financial and non financial motivation (E) To be able to analyse why motivation is important for a business (C) To be able to evaluate the best way of motivating employees (A)

 Why do people go to work?  Can employees be encouraged to work harder?  How?

 Abraham Maslow developed his hierarchy of needs which details the different levels of needs that show peoples satisfaction and motivation at work. Each level of need must be satisfied before the employee can move up to the next.

Self Actualisation Self Esteem Social Needs Safety Needs Physiological Needs

 At which level of the hierarchy would you place the following: ◦ Friendship ◦ Recognition ◦ Drink (Water) ◦ Achievement ◦ Respect ◦ Control ◦ Fellowship

 Draw out a hierarchy of needs.  Annotate this with parts of your life which fulfil each level to work out which stage of Maslow’s theory you are at.

 These are monetary incentives for the completion of work.  What different monetary incentives can you think of?

Monetary Incentives Time RateOvertime PaySalaryPiece RateCommissionBonus Profit Sharing Fringe Benefits

 Which type of financial motivation would make you work the hardest?  Where might commission be used as a monetary incentive?  What are the implications to the business of offering financial motivation?

 Show the pay that a person receives along with any deductions.  It shows GROSS PAY which is pay without any deductions.  The deductions such as pension, National Insurance and tax.  Then NET PAY which is the amount the employee actually receives.  See the example handed out.

 Complete the sheet about key terms to do with financial motivation

 These are methods of motivating employees by using non-monetary incentives.  Much of the time this motivation is dependent on the nature of the job being carried out.  Can you think of any types of non-financial motivation?

Non- financial Motivation FearJob Rotation Job Enlargement Job Enrichment Team Working Award Schemes PromotionLeadership The Environment

 Job rotation – moving between jobs in order to reduce boredom.  Job enlargement – increasing the number of tasks to be completed normally at the same level of responsibility.  Job enrichment – giving the worker more responsibility, where training is often given to deal with this.

 Which type of non-financial motivation would make you work the hardest?  Where might job rotation be used as an incentive?  What are the implications to the business of offering non-financial motivation?

 Autocratic – Leader makes all of the decisions with little or no discussion with other employees. Workers are expected to carry out the orders.  Democratic – Workers and leaders discuss plans to influence the decisions made about what to do and how to do it.  Laissez-faire – Leader decides main objectives of the business, but then leaves workers with the responsibility for deciding how they are to achieve them. (French for ‘leave to do’)

 Name 3 leadership styles  List 3 methods of financial motivation.  List 3 methods of non financial motivation.  Which method of leadership is most effective in a business and why?

 Complete the ‘Trouble in Paradise’ task.  EXTENSION: ◦ Using the white OCR textbook complete the exam questions on page

 List 3 things you know now that you didn’t at the start of the topic.  State one thing you would still wish to know more about.