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Friday 13 May 2016

Motivating Employees: Financial vs Non Financial

Motivation in Practice
Motivation is what makes a person do something. Motivation at work is employees performing their tasks to the best of their ability.

If you were an employer how would you motivate your staff?


'Happy people sell':



Financial methods of motivation include:

(You will need to know at least one advantage / disadvantage of each technique)

1. Piecework or payment for each item you produce.

Work paid for according to the amount produced.


"Workers did piecework at home".

2. Commission

commission is a sum of money that is paid to an employee upon completion of a task, usually the task of selling a certain amount of goods or services.

3. A bonus

Bonus pay is compensation that is over and above the amount of pay specified as a base salary or hourly rate of pay.

Example 1:


Example 2:


4. Profit share

Profit sharing refers payments to employees that depend on company's profitability in addition to employees' regular salary and bonuses.



5.Performance related pay

A financial reward system for employees where some or all of their monetary compensation is related to how their performance is assessed relative to stated criteria.


Non-financial techniques to improve employee performance:

1. Delegation

This means passing power down the hierarchy.

Advantages and disadvantages of delegation?

2. Consultation

Asking employees for their views on possible change.

Much will depend on how valid this consultation is.


3. Empowerment

Giving employees control over decision making and their working lives.

Making employees feel trusted.

4.Team working

Co-operation between those who are working on a task.

Why can working in a team be motivating?

Will this always be the case?

What does this picture suggest about teamwork at this office?


5. Flexible working

Flexible working is the name given to any type of working pattern which is different from your existing one. 

Flexible working arrangements may include: 

Changing from full-time to part-time work.

Changing the part-time hours that you work, for example, from weekends to week days



6. Job enrichment

Giving employees more responsibility by 'vertically' extending their role.

It may involve ordering stock, the production of a complete item and quality control.

Will all workers respond positively to this?

7. Job enlargement

Giving employees more responsibility by 'horizontally' extending their role.

Giving employees more work to do of a similar nature.

8. Job rotation

Doing a variety of tasks in a workplace.

What types of tasks could these workers be asked to do?