Motivational Methods

Motivational Methods

1. Non-Financial

   • Job Enlargement
     • The addition of extra, similar tasks to a job.
       • The job itself remains essentially unchanged.
     • Avoids the employees experiencing lots of repetition and monotomy.
     • Advantage = Doesn't require training
       • Disadvantage = Sometimes viewed by employees as a requirement to carry out more work for the same amount of pay
   • Job Rotation
     • The movement of employees through a range of jobs in order to increase interest and motivation.
     • Advantage = Improves employees multi-skilling, so absences can be covered.
       • Disadvantage = Training is time consuming and expensive.
         • And productivity may decrease in the short-term as employees are unfamiliar with tasks.
   • Job Enrichment
     • Giving employees greater responsibility by increasing the range and complexity of tasks and giving them the necessary authority.
     • Disadvantage = Requires training.
   • Empowerment
     • Giving people greater control over their working lives.
       • Organising people into teams with a higher degree of autonomy can achieve this.
       • Employees plan their own work, take their own decisions and solve their own problems.
       • Provides the opportunities to achieve Maslow's high levels of needs.
       • Disadvantage = Training and opposition from employees.
   • Quality Cicles
     • Small groups of people who meet regularly to discuss and solve production problems. Members are drawn from all levels and areas within the firm.
       • Advantage = As well as motivating, it can provide the business with valuable ideas.

2. Financial

   • Wages
     • Paid per hour worked and receive money at the end of week/month.
   • Salaries
     • An annual salary which is paid at the end of each month.
   • Bonus System
     • Usually paid when targets have been achieved.
   • Commission
     • (Usually salesmen) partly paid according to the number of products they sell, as well as a salary.
   • Profit Sharing
     • A system whereby employees receive a proportion of company's profits.
   • Performance Related Pay
     • Paid to those employees who meet certain targets.
   • Share Options
     • Common incentive for senior managers who are given shares in company rather than a straightforward bonus or membership of a profit sharing scheme so that when they retire then can sell them, but it is a long-term motivation until then.
   • Fringe Benefits
     • Items an employee receives in addition to their wage/salary. For example a company car.