Motivation is about the ways a business can encourage staff to give their best. Motivated staff care about the success of the business and work better.
Maslows Hierarchy of needs
Maslow suggests there are five hierarchies or levels of need that explain why people work. Staff first want to meet their survival needs by earning a good wage. Safety needs such as job security then become important, followed by social, self-esteem and self-fulfilment needs. Moving staff up a Maslow level is motivational.
Non-pay methods of motivation
Managers can motivate staff using factors other than pay through:
- Job rotation: staff are switched between different tasks to reduce monotony.
- Job enlargement: staff are given more tasks to do of similar difficulty.
- Job enrichment: staff are given more interesting and challenging tasks.
- Empowerment: staff are given the authority to make decisions about how they do their job.
- Putting groups of workers in a team who are responsible together for completing a certain task
Managers can motivate staff by paying a fair wage.
- Time rate: staff are paid for the number of hours worked.
- Overtime: staff are paid extra for working beyond normal hours.
- Piece rate: staff are paid for the number of items produced.
- Commission: staff are paid for the number of items they sell.
- Performance related pay: staff get a bonus for meeting a target set by their manager.
- Profit sharing: staff receive a part of any profits made by the business.
- Salary: staff are paid monthly no matter how many hours they work.
- Fringe benefits: are payments in kind, eg a company car or staff discounts
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