2.4 Motivation
Types of motivation in practice
Financial and non-financial rewards
State the two types of motivation
Intrinsic and extrinsic
Define organizational culture
The term organizational culture, or corporate culture, refers to the attitudes, experiences, beliefs, and values of an organization.
Define collective bargaining
The situation when the management team and workers have representatives who negotiate on the terms and conditions of employment.
Define CaPex
Capital expenditure is spending on a firm's fixed assets.
Capital expenditure is the long-term investment in these assets.
Capital expenditure is normally funded using long-term sources of finance.
Investment in capital expenditure allows a firm to grow in the future.
State 3 financial rewards
Salary Wages (time rates)
Wages (piece rates) Comission
Profit-related pay Performance-related pay (PRP)
Employee share-ownership scheme
Fringe payments (perks)
Describe what are the extrinsic motivators (include examples)
Motivation derived from external factors.
Money.
Grades.
Outside recognition / acknowledgement.
Promotion / reward.
Explain 2 changes in an organization that can affect corporate's culture. Justify your answer.
Merger.
Change in leadership.
Change in company's policies.
External factors (economy, political issues, etc.)
Others....
State three causes of conflict between employees and management
● Change
● Different interests
● Different values
● External factors
● Insufficient resources
● Poor communication
● Poor performance
Define Revenue expenditure and include 3 examples
Revenue expenditure is spending on a firm's general operational costs. It is best thought of as the day-to-day running costs of a firm; in other words, the cost a firm has to pay on a daily, weekly or monthly basis in order to keep trading. Examples of revenue expenditure include:
Describe "job rotation" and it purpose as a non-financial reward
Job rotation involves having an individual
employee rotated through different
divisions in a business over a period of
time. It is often used with young employees
as a form of training but can be used at
many different stages of a career.
State the name of the author of the scientific management theory
Frederick Winslow Taylor
State the four distinct organizational cultures described by Charles Handy
Power culture
Role culture
Task culture
Person culture
Describe how "conciliation and arbitration" can be an approach to solve a conflict
Sometimes the employer and employee representatives will seek help from a third party to resolve a dispute. The aim of conciliation is to bring together the groups in dispute and help them to find a resolution. An independent third party is usually called in to conciliate on the dispute. In this situation, both parties outline their positions by providing appropriate evidence. This evidence is then assessed and a judgment is made.
Outline the three main internal sources of finance
Describe Frederick Herberg's two-factor theory of motivation
Herzberg developed a two-factor theory of motivation based on hygiene needs and motivational needs.
Hygiene needs are those factors that provide dissatisfaction at work if they are not attended to.
Motivators are the things that get you working because you get some intrinsic reward from them.
Describe Jonh Adams' equity theory.
Is based upon the concepts of “inputs”, “outputs”, and “equity”.
His theory is that employees will be motivated when they perceive that a balance, or equity, exists between their inputs into the business and their
outputs from it.
Describe the Edgar Schein's three levels of organizational culture
Organizational attributes: what an outsider can sense about an organizational culture.
Professed culture: what the company says about their culture (mission, vision, statements, etc).
Organizational assumptions: how things really get done inside a company.
Outline 4 industrial actions that employees can take in order to force the employer to meet their demand.
•Collective bargaining. Unions negotiate on behalf of their members with employers' representatives on pay and conditions of employees.
•Go-slows - this means workers deliberately work below their potential.
•Work-to-rule - which involves working strictly by the company rule book and following every rule in the organization.
•Overtime ban - employees refuse to work overtime.
•Strike - employees stop working to force an employer to meet their demands.
Outline the four areas into which external sources of finance can be grouped
Outline Abraham Maslow hierarhy of needs theory and state the 5 levels of needs included in his pyramid.
He argued that people have a number of needs and
arranged these in terms of their importance.
Basic needs
Safety needs
Love / Belonging
Esteem
Self-Actualization
According to Daniel Pink, how can a punishment-reward model can affect employees performance?
Promises of rewards or the threats of punishment actually narrow the focus and intellectual range of employees (employees focus on the reward rather than solving the problem), which diminishes their capacity to innovate or be creative.
Outline 4 reasons for culture clashes
Reasons for culture clashes include: different degrees of formality, different leadership styles, different languages, different senses of time, different practices, different comfort levels with diversity, orientation to task and people.
Contrast strike and employees lock-out concepts.
•Strike - employees stop working to force an employer to meet their demands.
•Lock-outs - employers prevent employees from entering the premises to do their work.
Define overdraft including the length of the loan and the drawbacks of using this type of external source of finance
An overdraft can be thought of as a high-cost, short-term loan. An overdraft is attached to a bank account. It allows the account holder to withdraw an amount of money that is greater than they currently hold.