Motivation Theories
Motivation theory that identifies four key drivers that influence employee behavior and decision-making
Lawrence and Nohria’s Four Drive Theory
What strategy involves paying employees based on their output or achievements?
Performance-related pay
Performance management strategy where goals are set collaboratively between manager and employee
Management by objectives (MBO)
Two legal entitlements an employee must receive when being made redundant
Annual/Long Service Leave and Redundancy Package
The independent government body that oversees workplace relations in Australia.
Fair Work Commission
Dispute resolution process where a third party assists in negotiations but does not impose a decision
Mediation
What is the highest level of need in Maslow’s Hierarchy?
Self-actualisation
What are two advantages of using performance-related pay as a motivation strategy?
(1) Encourages higher productivity, (2) Rewards high performers; (e.g., increases motivation, aligns effort with business goals)
A structured review of an employee’s performance over a set period
Performance Appraisals
What voluntary exit occurs when an employee chooses to leave, and what legal obligation must employers meet upon this exit?
Resignation; must pay accrued entitlements (e.g., leave).
The group that represents employees in workplace negotiations
Unions
What are the two reasons workplace disputes occur
Pay disputes and poor working conditions
Two limitations of Maslow’s Hierarchy of Needs when applied to workplace motivation
Employees may not follow the hierarchy in order; Cultural and individual differences may affect which needs are prioritized
What are two disadvantages of using investment in training as a motivation strategy for a business with a high staff turnover rate?
High turnover means trained employees leave, wasting resources, (2) Short-term staff may not fully utilize skills, reducing return on investment.
Strength and limitation of employee self-evaluation
Strength: Promotes accountability; Limitation: Risk of inaccurate self-assessment
What are two disadvantages of poorly managed dismissal processes for a business?
(1) Legal risks (e.g., unfair dismissal claims), (2) Damage to reputation.
What are two advantages of using awards to regulate employee wages and conditions?
(1) Ensures fair minimum standards, (2) Reduces negotiation costs for employers.
Compare negotiation vs. arbitration in industrial disputes
Negotiation = flexible, cooperative; Arbitration = legally binding, may damage relationships
Key difference between Maslow’s and Lawrence and Nohria’s motivation theories.
Maslow’s theory follows a hierarchy of needs, while Lawrence and Nohria’s Four Drive Theory suggests four independent motivators
Two motivation strategies that help retain employees in the long term
Career advancement and investment in training
Which is more effective solution for absenteeism and poor performance: performance-related pay or training. Explain
Training (addresses skill gaps and long-term performance issues)
Two reasons a business might offer transition services to employees being terminated
Maintains business reputation and reduces the risk of legal action
Key difference between an award and an enterprise agreement
Awards set minimum conditions for a whole industry, while enterprise agreements are negotiated at a business level
Why low-risk dispute resolution strategies (like negotiation and mediation) are preferred over high-risk strategies (like strikes or legal action).
Preserve relationships, reduce business disruptions, and minimize legal costs
How does the Four Drive Theory’s “learn” drive influence employee engagement, and why might it conflict with the “acquire” drive in practice?
“Learn” drives learning and mastery, but “acquire” (material rewards) may prioritize competition, reducing collaboration.
Evaluate the effectiveness of investment in training versus performance-related pay in achieving long-term business objectives, providing two reasons for your conclusion
Training enhances skills and retention, while pay boosts short-term output; training is better long-term due to capability growth and engagement.
Effectiveness of appraisals vs. employee observation in remote work
Appraisals = structured feedback, but lacks real-time assessment; Observation = difficult due to lack of direct supervision
Business and employee impact of involuntary redundancy
Business = reduces costs; Employees = decreases morale, job insecurity
Ethical and legal implications of lowering wages for new employees through an enterprise agreement.
Legal: Must be approved by Fair Work Commission, Ethical: May reduce motivation, create resentment
Compare the use of mediation and arbitration in resolving a wage dispute, and justify which is more suitable for a small business facing a tight deadline.
Mediation is collaborative but slow, arbitration is decisive but rigid; arbitration suits tight deadlines for its speed and certainty.