Business motivation

Introduction to business motivation

100

What is the definition of business motivation?

^{Motivation is the process of encouraging employees to work efficiently and effectively by fulfilling their needs and desires}

200

Name two financial and two non-financial methods of motivating employees.

• Financial methods: Bonuses, performance-related pay.
• Non-financial methods: Job enrichment, employee recognition programs

300

What is Herzbergs Theory

states that job satisfaction is influenced by motivators (e.g., achievement, recognition) and hygiene factors (e.g., salary, working conditions).

400

How can motivation improve business performance?

• Higher productivity – Motivated employees work harder and more efficiently.
• Better employee retention – Employees are less likely to leave if they are satisfied.
• Increased innovation – Motivated employees are more likely to contribute creative ideas.
• Better customer service – Happy employees tend to provide better service, improving customer satisfaction.
• Lower absenteeism – Employees who feel valued are less likely to take unnecessary sick days.

500

Compare and contrast financial and non-financial motivation methods.

• Financial Motivation: Includes bonuses, salaries, and commission. These provide immediate incentives but may not create lasting motivation if employees feel unfulfilled in their roles.
• Non-Financial Motivation: Includes job enrichment, recognition, and career development. These foster long-term engagement and job satisfaction.

Theories of Motivation

100

What is meant by a motivation theory?

A motivation theory explains what drives individuals to work harder and be more productive. These theories help businesses understand how to encourage employees effectively.

200

Name and briefly describe two motivation theories.

• Maslow’s Hierarchy of Needs – Suggests employees are motivated by a five-level hierarchy, starting from basic needs (e.g., salary, job security) to higher needs (e.g., self-actualization).
• Herzberg’s Two-Factor Theory – Divides workplace factors into hygiene factors (prevent dissatisfaction but don’t motivate, e.g., salary) and motivators (increase motivation, e.g., recognition).

300

A business wants to improve motivation among its employees. Should it use Maslow’s or Herzberg’s theory? Justify your answer.

A combination of both is ideal: use Maslow’s hierarchy to address basic needs first, then apply Herzberg’s motivators for long-term engagement.

400

Herzberg’s Two-Factor Theory

Ensuring hygiene factors (good working conditions, fair pay) while offering motivators (recognition, career development) is essential for remote workers.

500

What is Maslow’s motivation theory

employees are driven by a hierarchy of needs, which they must fulfill in order. Physiological Needs, Safety Needs, Social needs, Self actualization needs, Esteem needs

Financial Motivation Methods

100

3 examples of financial methods

bonuses, Stock options, Profit-sharing

200

What is financial motivation and why is it important for employees?

Financial motivation refers to the use of monetary rewards to encourage employees to perform well. It is important because it can increase productivity, enhance job satisfaction, and foster loyalty by meeting employees' financial needs and desires.

300

How do bonuses differ from commissions in terms of motivating employees?

• Bonuses are typically lump-sum payments given for achieving certain milestones or performance targets, regardless of the employee's specific sales or efforts.
• Commissions, on the other hand, are typically a percentage of sales or deals closed, directly tied to an employee's individual performance, providing ongoing motivation for employees to increase their sales.

400

Explain the advantages and disadvantages of offering profit-sharing schemes as a financial motivation method.

Encourages teamwork as employees feel they all benefit from the company's success.

500

How can businesses ensure that financial rewards such as salary increases or performance

Setting clear, achievable performance goals so that employees can work toward tangible targets.

Non-Financial Motivation Methods

100

What is job rotation, and how does it motivate employees?

Job rotation is when employees switch between different tasks or roles to reduce boredom and increase engagement. It motivates workers by making their jobs more interesting and helping them develop new skills.

200

How does job enrichment differ from job enlargement?

Job enrichment involves adding more challenging and meaningful tasks to a worker’s role to improve motivation. In contrast, job enlargement simply increases the number of tasks without necessarily making them more interesting or complex.

300

Explain how Maslow’s Hierarchy of Needs relates to non-financial motivation in the workplace.

Maslow’s theory suggests that employees need to satisfy different levels of needs to stay motivated. Employers can use non-financial methods like job security

400

Why might some employees not respond well to non-financial motivation methods like empowerment?

Some employees may prefer clear instructions rather than taking on more responsibility. Others may feel stress or pressure if they lack the necessary skills or confidence to handle extra decision-making. This can reduce motivation instead of increasing it.

500

A company introduces team-based incentives to improve motivation. What potential problems could arise, and how can they be solved?

Conflict: Disagreements may arise. Solution: Strong leadership and clear roles.