1. GCSE Business Studies Unit 2 Developing a Business
Motivation

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Learning Outcomes
Explain the importance of motivation for employees, referring to (lower labour turnover, higher quality work, fewer accidents and less absenteeism)
Identify and evaluate the suitability in various circumstances of these methods of financial motivation (bonus, commission, fringe benefits and profit sharing)
Identify and evaluate the suitability in various circumstances of these methods of non-financial motivation (job rotation, team working, quality circles and flexible working)
Analyse the following factors affecting job satisfaction (wages/salaries, responsibility, success, enjoyment, working conditions and praise)
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3. Importance of Motivation
Lower labour turnover
Higher quality work
Fewer accidents
Less absenteeism
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4. Financial Methods of Motivation
Bonus – extra payment usually for reaching a target
Commission – percentage of sales made by a sales person
Fringe benefits – perks of the job e.g. company car, pension schemes
Profit Sharing – employee receives a share of the profit
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5. Non-financial Methods of Motivation
Job Rotation – move around different jobs to prevent boredom
Team Working – teams of workers with different skills and abilities responsible for organising and carrying out the job
Quality Circles – like team working but with a focus on improving quality
Flexible working – a way of working that suits an employee’s needs e.g. flexible starting time/finishing time.
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6. Factors Affecting Job Satisfaction
Wages/Salaries – Usually the more an employee gets paid the more motivated they become.
Responsibility – If employees are given tasks which involve responsibility, then they tend to become more motivated
Success – Employees like to work for a successful business, this is rewarding and helps to motivate them.
Enjoyment – If employees enjoy what they are doing they work better and there is usually less absenteeism.
Good Working Conditions – Employees will be better motivated if their working environment is clean, tidy and modern.
Praise – Employees tend to respond well to praise for work that has been well done.
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7. Images © thinkstockphotos.co.uk
Check List
Learning Check – Do you know . . .
1. The importance of motivation for employees?
The advantages and disadvantages and suitability in various
circumstances of methods of financial motivation?
circumstances of methods of non-financial motivation?
4. Factors affecting job satisfaction?
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