Making HR decision: improving motivation and engagement

Benefits of motivated and engaged employees

Improved productivity, reduced costs, improved work ethic, improved reputation for the organisation, competitive advantage, and improved likelihood of meeting company objectives.

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What is Taylor's theory of motivation

Believes that employees don't naturally enjoy work+need close supervision. Money is main motivational factor, so he emphasises the benefits of piecework. Beliefs in extreme division of labour, piece rate + tight management control.

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What is Maslow's hierarchy of needs

5 categories of needs: Physiological needs, safety needs (security+freedom), social needs (desire for friendship+sense of belonging), esteem needs (self-respect+feedback+respect from others+promos), Self-actualisation (fulfil ones potential).

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What is Herzberg's two factor theory

Believes that these factors motivate+give job satisfaction:sense of achievement, recognition for effort+achievement,responsibility etc. Factors that reduce job dissatisfaction are hygiene+maintenance factors, i.e. pay, working conditions+supervision.

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How can you improve employee engagement and motivation?

Clearly defined vision that employees understand+identify with, good environmental conditions, appropriate training, good communication, good planning+decision making.

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Define piece rate and what motivational theorist focuses on it

Paying workers a rate for each item produced gives them an incentive to work hard. Favoured by Taylor as an important motivator.

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Define commission

A sum of money paid to employee upon completion of a task, usually selling a certain number of products. Two types- flat rate (% depended on amount of effort involved)+ramped commission (% rises as certain targets are met).

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Advantages and disadvantages of piece rate

Workers do not waste time, encourages employees to think of better working methods,+workers set themselves deadlines. But focus on quantity not quality, puts intense pressure on employees,+increase employee supervision as more scrutiny on products.

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Advantages and disadvantages of commission-based pay

For employees it enables high performing sales, for employers it is an incentive to work hard. But, not a reliable+regular source of income, can invite dishonesty in order to earn more.

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Define salary schemes

Basic rate payment system where employees are paid an annual salary. Often known as time-based payment salary. Worker is paid according to a given time period.

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Advantages and disadvantages of salary schemes

Simple+cheap to administer, lead to stability in pay+easily understood by workforce, may be fewer disputes+individual grievances. But, doesn't provide direct incentives, for input rather than output (effort is not guaranteed).

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Define performance-related pay

Rewards individual employees receive based on an assessment of their individual performance+usually measured against pre-agreed objectives; generally takes the form of bonuses or salary increase.

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Advantages and disadvantages of performance-related pay

Direct links between effort+pay, gets staff to work towards company objectives by establishing individual targets at appraisal, may reduce absenteeism+labour turnover. But, source of conflict among staff, only represents a small % of salary.

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Define profit sharing

Financial incentives in which a proportion of a firm's profit is divided among its employees in the form of a bonus paid on top of their salary.

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Advantages and disadvantages of profit sharing

Reduce problems of feeling 'them and us between hierarchies, lessen resistance to change, if its large it can provide personal incentive. But, little or no effect on motivation if small, not linked to individual performance (free rider problem).

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Define job enlargement and the two elements with in it

Increasing the scope for a job, either through rotation or enrichment.

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Define job rotation

Where the job is expanded horizontally by giving the workers more tasks, but at the same level of responsibility. Switching roles to provide greater variety.

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Advantages and disadvantages of job rotation

Intends to relieve boredom by offering more varied working days, may increase motivation due to creating a wider skill set. But, retaining costs will increase+may be fall in output due to less specialisation, could just involve more boring tasks.

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Define empowering employees

Giving employees the means by which they can exercise power over their working lives. Implies a degree of self-regulation+freedom about decisions. It is different to delegation (which might provide authority to a subordinate).

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Advantages and disadvantages of empowering employees

Likely to improve motivation, reduce labour turnover+absenteeism, + increase productivity. But, cost of training for responsibility+decision making could be high, risky as employees actions are difficult to check, could be seen as a way of delayering

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Define working in teams

Production is organised into large units of work+a group of employees work together to meet shared objectives. Can be linked to Maslow's (social needs). When accompanied by other techniques - rotation +/or enrichment - can enhance motivation.

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What are the influences on the choice and assessment of the effectiveness of financial and non-financial reward systems.

Organisational design (span of control, levels of hierarchy, delegation+empowerment, lines of accountability), nature of job+employees, quality of communication, clarity+nature of business objectives, size of organisation.

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Define job enrichment

Where the job is expanded vertically by giving workers more responsibility+offering them challenges that allow them to utilise their skills fully. Closely based on Herzberg's ideas that only job enrichment provides LT job satisfaction.

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Advantages and disadvantages of job enrichment

Develops workers unused skills+presents them with challenges, increases contributions to decision making, motivating+enhances promo prospects. But, may be intimidating for some+increases pressure, way of delayering (workers do more for same salary).

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What are the criticisms of Maslow's hierarchy of needs

Not everyone has the same needs, our perception of what is important may vary, and not realistic that most employees will reach the top of the hierarchy. `

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What are the criticisms and value of Herzberg's two factor theory of motivation

Job enrichment stemmed from his work. But, he drew conclusions about workers from a limited sample of 200 accountants+engineers, makes too little on the role of groups+teams in the workplace+motivational influence they have on individuals.

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What are the criticism and value of Taylor's money theory of motivation

Influenced mass production processes such as at Ford. But, less successful for motivation as made jobs repetitive+boring, therefore low morale+poor industrial relations influence trade union growth.

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Making HR decision: improving motivation and engagement

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