Motivating Employees Flashcards
All 19 cards in this deck
Give two benefits to a business of a motivated workforce.
High productivity and high staff retention (loyal employees keep recruitment costs low).
Give three consequences for a business of a demotivated workforce.
High absenteeism, high labour turnover and poor quality work.
What is the difference between a salary and a wage?
A salary is a fixed yearly payment for doing the job; a wage is paid according to the hours worked.
What is a bonus?
Extra payment made to staff for meeting targets.
What is commission?
Payment on top of a wage or salary that is paid when sales are made, usually a percentage of each sale.
Give one drawback of paying employees commission.
Pay is unpredictable, so staff can be demotivated when sales are slow — and it may encourage pressure selling.
What is profit sharing?
A financial method where employees are rewarded with a share of the business's profits when it is successful.
Give one drawback of profit sharing as a method of motivation.
Profits can fall for reasons outside employees' control, so the reward disappears and staff feel demotivated.
What are fringe benefits?
Additional employment perks, e.g. gym membership, a company car or extra holiday allowance, which save employees money and make them feel valued.
True or false? Fringe benefits such as a company car or staff discounts count as a financial method of rewarding employees.
False. They are a non-financial method — financial methods are salary, wage, bonus, commission and profit sharing.
What is an autocratic management style, and what is its main effect on motivation?
The manager makes all decisions and rarely consults staff; no freedom or autonomy can demotivate employees and lead to them leaving.
What is a democratic management style?
The manager consults employees and involves them in decisions, so staff feel valued and the business benefits from their ideas.
What is a laissez-faire management style?
The manager gives employees a high degree of autonomy to make their own day-to-day decisions with little supervision.
Why does delegating greater responsibility motivate employees?
It makes the job more interesting and shows employees are trusted, so they work harder and more efficiently.
Give one benefit to the business of using delegation rather than higher pay to motivate staff.
The business does not have to pay higher wages, keeping costs and prices lower so it stays competitive.
Why does training and development act as a non-financial motivator?
Employees gain extra skills and qualifications and feel more valued, so they are more likely to stay.
What does a low labour turnover figure suggest about motivation in a business?
Employees are motivated and satisfied, so the reward/motivation method being used is working.
True or false? Financial rewards are always the most effective way to motivate employees.
False. Money motivates some staff, but non-financial methods such as responsibility, autonomy or training can motivate without raising costs.
What is meant by 'motivation' in a business?
An employee's willingness and drive to work hard in their job.