9609 · 2.2.4
Motivation methods in practice: financial motivators, non-financial motivators flashcards
Revision flashcards for Cambridge 9609 Motivation methods in practice: financial motivators, non-financial motivators (syllabus 2.2.4). Flip, recall, then mark a real past-paper question.
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Piece rate?
Pay per unit produced — Taylor; risk of quality sacrifice.
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Commission?
% of sales value — motivates sales staff; income variability.
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Profit sharing?
Share of firm profits — aligns interests; delayed reward.
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Fringe benefits?
Pension, car, insurance — hygiene factors (Herzberg).
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Job enrichment?
More planning, control, variety in same role — Herzberg motivator.
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Job enlargement?
More tasks at same level — may reduce boredom.
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Empowerment?
Decision authority delegated to front-line staff.
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Best practice?
Match methods to job type and workforce needs — not one-size-fits-all.
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Piece-rate Pay
A financial motivator where employees are paid for each unit produced. Advantage: encourages high output. Disadvantage: may lead to a fall in quality as workers rush to produce more units.
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Job Enrichment
A non-financial motivator involving giving employees a wider range of more complex and challenging tasks with greater responsibility (vertical loading). It aims to increase intrinsic satisfaction and links to Herzberg's 'motivators'.
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Profit Sharing
A financial incentive scheme where a proportion of the firm's profits is distributed to employees. Advantage: aligns employee and company goals, encouraging a sense of collective responsibility for the firm's success.
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Empowerment
A non-financial motivator that involves delegating decision-making power to employees lower down the hierarchy. It increases autonomy and responsibility, meeting higher-level needs, but requires significant management trust and employee training.
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Fringe Benefits (Perks)
Non-cash rewards given to employees, such as a company car, private health insurance, or staff discounts. They can help attract and retain staff but may not directly motivate higher productivity on a day-to-day basis.
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What is Job Rotation?
A non-financial motivator where employees are moved between different jobs of similar complexity for a period of time. It reduces boredom and increases skill flexibility but does not increase responsibility.
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What is a potential downside of performance-related pay (PRP)?
It can create unhealthy competition among employees, discourage teamwork, and lead to a focus on easily measured quantitative targets at the expense of qualitative aspects like quality or customer service.
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Distinguish between Job Enlargement and Job Enrichment.
Job Enlargement (horizontal loading) adds more tasks at the same level of skill and responsibility. Job Enrichment (vertical loading) adds tasks that involve more skill, responsibility, and autonomy.