3.5 motivation and retention

  • Created by: hanfa
  • Created on: 05-11-20 21:54
View mindmap
  • 3.5
    • financial methods of motivations
      • pay(wage or salary) paid workers for their work, extra time equals to more. regular income but paid on how long not on output.
      • fringe-benefit: benefits on top of pay like health insurance. motivates workers as it provides an attractive package of pay and benefits, motivates against leaving. cost to business so reduces profits
      • profit sharing: workers are paid a part of the profits of the business so motivates them to increase input as more output means more profit.
      • bonus: an extra payment for improved or better output, improves productivity, targets need to be fair and realistic or workers will not feel motivated
    • non financial methods of motivation:
      • award scheme: workers presented with rewards like holidays or certificates. makes workers feel valued and aren't expensive, but need to be given fairly to avoid others getting upset
      • praise: workers thanked either publicly or privately, makes workers feel appreciated and doesn't cost business, no financial reward makes workers feel unvalued
      • working environment: improving workspace can be physical or just by managers being nicer, makes workers feel well looked after and valued, but if its renovation its expensive
    • importance of employee motivation and retention:
      • higher worker productivity, helping the business make more output which is more profit
      • reduced level of employee supervision, reduces business costs.
      • low worker absenteeism, workers wont be willing to take days off
      • improved quality: workers will produce to a higher quality as it fills their pride and it results in less waste which reduces costs


No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all human resources resources »