Business Steve - People And Organisations - Motivation In Pr

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  • Created on: 25-03-08 16:29
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Business Steve ­ Notes Emma Rudd BMA
People and Organisations
Motivation in Practice
Why put theory into Practice?
Businesses have come under pressure to supply high quality goods at low prices, and
markets have become extremely competitive. A highly motivated workforce can give
a business a competitive edge over its rivals.
Monetary forms of motivation
Managers and organisations use a variety of pay systems in an attempt to improve
motivation / performance within their workforce. It appears that money seems to
still be a major incentive.
Under this pay system, employees are paid according to the quantity they produce.
Thus an employee on a production line might receive an agreed amount for each unit
of production they complete. Piecework is common in a number of industries in the
Advantages Disadvantages
Little supervision is required as The system can lead to low quality
employees complete tasks as quickly products as employees strive to
as possible maximise their output
Helps to keep wage costs under A high proportion or output may be
control ­ if workers output falls so scrapped if it fails to meet quality
will their wages standards
Piecework employees are frequently Employees may ignore health and
not entitled holiday and sick pay which safety regulations in their attempts
reduces employment costs to increased their output.
Since the implementation of the minimum wage employers have faced additional
problems in using piecework systems. Employers using piecework have to ensure
that their employees earn at least the minimum wage rate per hour.
Salaries and Wages
Most employees in the UK receive their payment in the form of wages or salaries.
Salaries are expressed in annual terms (e.g. £30000 per year) and are normally paid
monthly. Salaried employees are not normally required to work a set number of
hours per week though their contract of employment may state a minimum number
of hours.
On the other hand wages are normally paid weekly and employees are required to
work for a specified number of hours. Employees are normally paid a higher rate
(overtime) for any additional hours worked.
Fringe Benefits
Fringe benefits are often referred to as `perks'. Fringe benefits are extras that an
employee receives as part of their reward package. Examples include:

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Business Steve ­ Notes Emma Rudd BMA
A company car
Luncheon vouchers
Private health insurance
Employers contributions to pension schemes
Discounts for company products
Firms tend to use fringe benefits to encourage an employee to be loyal and to
reduce the proportion of employees leaving the firm. A danger of the widespread
use of fringe benefits is that costs can increase quickly, reducing profits.
Performancerelated Pay (PRP)
Performance related pay is only paid to those employees who meet or exceed some
agreed targets.…read more

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Business Steve ­ Notes Emma Rudd BMA
This can be a development of profit sharing schemes. Some businesses pay their
employees share of the profits in the form of company shares. Share ownership
schemes vary enormously in their operation. Some businesses offer employees the
opportunity to purchase shares after saving for a period of time. For example after
5 years employees can purchase shares at the price they were at the start of the
savings scheme.…read more

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Business Steve ­ Notes Emma Rudd BMA
Job Enlargement
Job enlargement does not increase the complexity of tasks carried out by an
employee. Instead it increases the number of similar duties. Job enlargement offers
benefits to the employee in that carrying out a range of duties, rather than a single
one repeatedly, may stimulate their interest. The business gains an advantage form
having an employee able to carry out a wider range of duties, possibly reducing their
labour costs.…read more

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Business Steve ­ Notes Emma Rudd BMA
some of the higher needs identified by Maslow such as esteem needs. Similarly team
working offers some of the Herzberg's motivators e.g. achievement.
Which Motivators are Best?
The type of nonmonetary forms of motivation used by businesses depends upon a
number of factors:
They Style of Leadership
Some managers are content to give employees greater freedom in organising
their working lives in an attempt to motivate them.…read more


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