MONETARY AND NON-MONETARY MOTIVATION

MONETARY AND NON-MONETARY MOTIVATION

1. FINANCIAL

   • Piece rate
     • Based on the no. of items produced by each worker.
     • Encourages quantity, but this may reduce the levels of quality, and workers may need supervision to ensure standards are maintained.
   • Commission
     • Addition to a salary, A payment for an amount of service, often to sales staff.
     • Encourages employees to work hard, and the pay is linked to the skill and performance of the employee.
   • Salary schemes
     • paid for the time an employee works
     • Cheap and simple, workers can predict their pay, security may motivate (Maslow)
     • No direct incentive, special efforts no recognised, not related to performance.
   • PRP
     • Usually after and appraisal
     • May receive a pay rise, for hard work.
     • Usually reduces turnover, self-funding, performance and pay should correlate, motivates staff to work towards company objectives.
     • May cause conflict, difficult to measure performance.

2. OTHER FINANCIAL METHODS

   • Profit sharing
     • less distance between employees and stakeholders, incentive to work efficiently
   • Share ownership and share options
     • companies may allow employees to buy shares at a reduced price.

3. VALUE OF THE USE OF MONEY

   • Employees may depend on rewards, and this may cause uncertainty
   • May mean that quality suffers.
   • Can cause conflict between employees.
   • Bonuses paid to learn new systems, will reduce reluctance to change.
   • success in meeting short-term goals.

4. NON-FINANCIAL

   • Enlargement
     • Increasing scope of job.
     • Rotation
       • More varied.
       • Retraining costs will increase.
     • Enrichment
       • Greater responsibility
   • Empowerment
     • Means to exercise power over their working lives.
   • Team-working

5. INFLUENCES

   • To match what employees want; are they interested in money, or becoming more skilled?
   • Organisational design
     • level of delegation
     • Clear who is accountable for hard work?
     • communication
   • Nature of job and employees.
     • Low skilled jobs- money is often most important
     • Creative jobs- workers seek autonomy
   • Clarity of business objectives
     • Communication
   • Time scale
   • Size
     • Distance between managers and employees, can be put into groups.
   • Economy