1. Motivation Thursday 6th March 2014
Year 11 Business
Motivation
Thursday 6th March 2014

2. Objectives
To consider how a business can motivate staff within a business.

3. Let’s get our minds warmed up…

4. Solution…

5. First off… Catch up sessions available. Homework due next week.
Coursework next week – ensure you have ALL research complete ready.

6. Today - Motivation What do we mean by the term motivation?
Motivation is how a business can encourage staff to give their best.
In business – companies can motivate employees to do a better job than they otherwise might.

7. Motivation Why motivate our staff?
Increased Output – if workers work harder, the business will achieve more.
Improved Quality – staff take greater pride in their work.
Higher level of staff retention – workers will stay with the business as they’ll be motivated to be there.

8. How? Motivation can be influenced in a variety of ways:
Monetary Factors – workers might work harder if they are offered higher pay.
Non-monetary Factors – this could be things such as improved working conditions, or the chance to win a competition/promotion

9. Question… Exam Question – 8 Marks:
What might the advantages and disadvantages of different sorts of motivation within a business be? Provide examples to back up your answer.

10. Theories… There are two theories we need to be aware of:
1). Taylorism – argues that staff do not enjoy work and are only motivated by threats and pay. Managers motivate staff by organising employees’ work and paying be results, eg – piece rate pay – payment per item produced.

11. Theories
2). Maslow – suggests that there are five hierarchies/levels of need that explain why people work. Staff first want to meet their survival needs by earning a good wage. Safety needs such as job security then become important, followed by social, self-esteem and self-fulfilment needs. In theory – through offering staff the various levels of Maslows Hierarchy of Needs – we motivate them.

12. Motivation… Monetary: Time Rate – paying staff for the hours worked.
Overtime – paid extra for working beyond normal hours.
Piece Rate – paid per item produced.
Commission – paid for items they sell.
Performance Related Pay – bonus for meeting a target.
Profit Sharing – staff receiving a share of the profits.
Salary – paying staff monthly regardless of hours worked.
Fringe Benefits – staff are paid in kind (company car etc)

13. Motivation… Non-monetary:
Job Rotation – switching staff between different tasks to reduce monotony.
Job Enlargement – staff are given more tasks to do.
Job Enrichment – staff are given more challenging and interesting tasks.
Empowerment – staff are given the authority to make decisions.
Putting Groups of Workers In A Team – gives them responsibility for tasks.

14. Summary Why is motivation important?
What impact can it potentially have on the performance of a business?
How might a business motivate their staff?
What might some of the advantages of monetary motivation be?
What might some of the disadvantages be?