Motivating & Rewarding Employees

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Motivating & Rewarding Employees

IGCSE Business Studies
Revision Presentations 2004
Jamoliddinov Biloliddin


  • What is it?
    • Motivation is will to work
    • Comes from enjoyment of work itself and/or from desire to achieve certain goals e.g. earn more money or achieve promotion
  • Methods available to motivate employees
    • Financial methods (e.g. salary, bonus)
    • Non-financial methods (passing on responsibility or praise)

Advantages of a Well Motivated Workforce

  • Better productivity (amount produced per employee)
  • Better quality
  • Lower levels of absenteeism
  • Lower levels of staff turnover (number of employees leaving business)
  • Lower training and recruitment costs

Four Main Motivational Theorists

  • Taylor
  • Mayo
  • Maslow
  • Herzberg

Taylor’s Theory of Motivation

  • Managers should maintain close control and supervision over their employees.
  • Autocratic style of management- managers make all decisions themselves
  • Theory X approach to workers- believe workers are lazy and are only motivated by money
  • Motivate by pay via piece-rate.

Mayo’s Theory of Motivation

  • Workers are not just motivated by money but by having their human/social needs met
  • Concluded that increase motivation by:
  • Better communication between managers and workers
  • Greater manager involvement in employees working lives
  • Working in groups
  • In practice therefore businesses should introduce team working and personnel departments to look after employees interests

Maslow’s Theory of Motivation

  • Maslow put forward a theory that there are five levels of human needs which employees need to have fulfilled at work.
  • Only once a lower level of need has been fully met, would a worker be motivated by the opportunity of having the next need up in the hierarchy satisfied.
  • A business should therefore offer different incentives to workers in order to help them fulfill each need in turn and progress up the hierarchy

Herzberg’s Theory of Motivation

  • Believed in two-factor theory
  • Motivators
    • Factors that directly motivate employees to work harder
    • Giving responsibility, recognition for good work, sense of achievement, opportunities for promotion
  • Hygiene factors
    • Factors that can de-motivate if not present but do not actually motivate employees to work harder
    • Pay, working conditions, job security
  • Motivate by using motivators plus ensuring hygiene factors are met
  • Use job enrichment and empowerment (delegating more power to employees to make their own decisions).

Democratic Management Style

Reasons Why People Go To Work

  • To earn money
  • To feel a sense of achievement or job satisfaction
  • To feel a sense of belonging to a group
  • To achieve a sense of security
  • To obtain a feeling of self-worth

Gross and Net Pay

  • Gross pay:
    • Pay each month or week before any deductions have been removed
    • E.g. before income tax, national insurance contributions
  • Net pay:
    • Pay after deductions have been taken off
    • Sometimes known as take-home pay

Thank you attention
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