3.5 motivation and retention
- Created by: hanfa
- Created on: 05-11-20 21:54
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- 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
- financial methods of motivations
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