Motivation & Incentives
What is motivation in business?
Motivation is the internal/external forces that encourage employees to act or work toward business goals.
Which theory arranges employee needs into a hierarchy?
Maslow
Which leadership style gives the leader most decision-making control?
Autocratic
What does IP stand for?
Intellectual property.
What is the main purpose of IP laws in Australia?
To provide legal protection for eligible intellectual property and encourage innovation/creation by giving creators or owners rights over its use.
Name one financial and one non-financial incentive a business could provide employees.
e.g. sales bonus/share scheme + training/recognition.
In Herzberg’s theory, what are the two categories of factors affecting employees?
Hygiene factors and motivators.
Which leadership style involves employees in the decision-making process?
Participative
Which type of IP protects a business name, logo or symbol used to distinguish a brand?
Trademark
Which Australian government agency administers patents, trademarks and registered designs?
IP Australia.
Explain how a sales bonus could increase employee motivation.
Links improved sales performance with a financial reward, encouraging effort.
According to Adams’ Equity Theory, what comparison can influence an employee’s motivation?
Employees compare their inputs and outcomes with those of others and consider whether treatment is equitable.
A manager changes their leadership approach depending on the employees and circumstances. Identify the leadership style and explain why.
Situational; the leader adapts their approach to the circumstances and employees.
Match the IP protection: new invention, company logo, original photograph, unique product appearance.
Patent, trademark, copyright, registered design.
Put these general IP registration stages in a logical order: application, examination/assessment, registration/grant, search/research.
Search/research → application → examination/assessment → registration/grant (the exact process varies by IP right).
Explain how skill improvement training could benefit both an employee and the business.
Employee develops skills/capability; business may gain productivity, quality and flexibility.
An employee values a $1,000 bonus but believes the sales target is impossible. Using Vroom’s Expectancy Theory, explain why motivation may remain low.
Low expectancy: the employee does not believe effort will lead to the required performance, despite valuing the reward.
A business must make an urgent decision during a major safety incident. Which leadership style may be most appropriate? Justify your answer.
Autocratic may be suitable because rapid, decisive action is required.
A company develops a new coffee machine mechanism and a distinctive visual shape for the machine. Which two types of IP protection could be relevant? Explain.
Patent for the mechanism; registered design for visual appearance.
Explain two ways IP protection could give an Australian business a competitive advantage.
e.g. restricts copying, creates differentiation, protects innovation/branding, supports licensing and strengthens market position.
A business introduces a share scheme, employee-of-the-month award and penalties for repeated lateness. Analyse how these methods could influence employee motivation differently.
Share schemes can create ownership/long-term motivation; recognition provides non-financial acknowledgement; penalties may discourage undesirable behaviour but could negatively affect morale if perceived as unfair.
Employees receive competitive pay and safe conditions but still feel unmotivated because their jobs offer little responsibility or recognition. Use Herzberg’s theory to explain the problem and recommend a solution.
Pay/safety are hygiene factors and may prevent dissatisfaction, but responsibility and recognition are motivators; increase responsibility, achievement and/or recognition.
A manager normally uses participative leadership but switches to autocratic leadership during a crisis and returns to participative leadership afterwards. Explain how this demonstrates situational leadership and why it could be effective.
The manager adapts leadership to circumstances, demonstrating situational leadership; this allows participation when appropriate but quick centralised decisions during a crisis.
An SME develops a new reusable bottle with a new filtration mechanism, distinctive logo, unique external appearance and original advertising photographs. Identify the relevant IP protection for each element.
Filtration mechanism = patent; logo = trademark; external appearance = registered design; photographs = copyright.
Analyse how registering IP could have both positive and negative effects on an SME, considering competitive advantage, time and financial cost.
Protection may create competitive advantage and protect investment in innovation, but registration, professional advice and enforcement can require significant money and time, which may be particularly challenging for an SME.