Motivating a Workforce

Motivation

Motivation is defined as the reasons for acting or behaving in a certain way. For businesses, it means the reasons employees have for acting in the best interests of the business. Motivation is important because of:

Productivity

If employees are motivated to act in the interests of the business then they will attempt to produce as much output as possible and so increased motivation will lead to more productive employees.

Staff retention

Increased motivation to act in the best interest of the business will mean staff stay for longer as they are more attached to the business.
It is in the interests of business to retain their staff for as long as possible as it reduces costs involved with training employees.
Furthermore, it means employees become more knowledgeable about the industry the business is in and how the business operates and this can mean better quality output customer service.

Financial Methods of Motivation

There are many ways that businesses try to motivate their employees. Often, money is used to achieve this.

Salary

Increasing the amount a worker is paid may increase their motivation. The more they get paid, the more workers will value the job, and so the more they will want to keep it and do well for the business.
It can also mean that employees enjoy the work more if there is a higher financial reward. This can also lead to motivation.
However, a salary isn’t linked to an employee’s job performance. This means that an employee will be paid the same regardless of their quality of work and quantity of output.

Commission

Commission is paid out as a percentage of the sales that staff make.
It helps to motivate employees to do what the business want to do. If they sell more, they are happy because they earn more money and the business is happy because they make more sales.

Possibility for promotion

A business that frequently promotes employees and uses internal recruitment is likely to motivate employees to perform well and stay at the business for a longer period of time.
The possibility of getting more opportunity may motivate some employees.
Promotions often lead to salary increases.

Bonuses

Bonuses are similar to commission but they are not just linked to sales.
Bonuses can depend on the quality of the work the employees have done.
Again, employees may be more motivated to act in the way that the business wants.

Non-Financial Methods of Motivation

Non-financial methods of motivation increase motivation but give employees benefits that are not financial. Management style, fringe benefits, autonomy, job rotation and job enrichment can all increase motivation.

Management style

The style of management affects how much an employee enjoys their work and how much they feel valued by the business. If they feel valued and enjoy their work they are usually more motivated to act in the interests of the business.
Different management styles give employees different amounts of responsibility.

Fringe benefits

Fringe benefits are benefits that are not financial (non-monetary) but can be included in an employment contract.
- Company cars, health insurance and sick pay are all examples of fringe benefits.
- Audi gives all the graduates managing its stores an Audi A4 as part of their employment package.

Job rotation

Job rotation describes an employee moving jobs within an organisation. Some employees enjoy the variety that this provides.
Organisations like IAC, which owns Tinder and Expedia, is famous for moving employees around in the businesses that it owns.

Autonomy

Autonomy is the amount of freedom to do your job that your manager or employer provides. High levels of autonomy can motivate employees.
- For example, companies like Netflix trust employees to take an appropriate amount of holiday and do not enforce a fixed amount of holiday each year.

Job enrichment

Job enrichment involves creating jobs that are challenging for employees and that aren’t very repetitive.
Specialisation and working on production lines, although efficient and cost effective may not be the most enjoyable thing for the employee.

1Enterprise & Entrepreneurship

1.1The Dynamic Nature of Businesses

1.1.1The Dynamic Nature of Businesses

1.1.2Risk & Reward

1.1.3The Role of Business Enterprise

1.1.4The Role of Business Enterprise 2

1.1.5The Role of the Entrepreneur

1.1.6End of Topic Test - Dynamic Nature of Business

1.1.7Grade 9 - Dynamic Nature of Business

1.2Spotting a Business Opportunity

1.2.1Customer Needs

1.2.2Market Research

1.2.3Market Segmentation

1.2.4The Competitive Environment

1.2.5Primary & Secondary Market Research

1.2.6End of Topic Test - Business Opportunities

1.2.7Application Questions - Business Opportunities

1.2.8Exam-Style Questions - Market Segmentation

1.3Putting a Business Idea into Practice

1.3.1Business Aims

1.3.2Business Objectives

1.3.3Business Revenues & Costs

1.3.4Costs - Calculations

1.3.5Revenue - Calculations

1.3.6Business Profits & Break-Even Analysis

1.3.7Profits & Losses - Calculations

1.3.8Interest - Calculations

1.3.9Cash & Cash Flow

1.3.10Cash & Cash Flow 2

1.3.11Cash Flow - Calculations

1.3.12Sources of Business Finance

1.3.13End of Topic Test - Business in Practice

1.3.14Grade 9 - Business in Practice

1.3.15Exam-Style Questions - Business in Practice

1.4Making the Business Effective

1.4.1The Options for Start-Up & Small Businesses

1.4.2Limited Liability

1.4.3Franchising & Not-For-Profits

1.4.4Business Location

1.4.5The Marketing Mix

1.4.6Business Plans

1.4.7End of Topic Test - Effective Business

1.4.8Application Questions - Effective Business

1.4.9Exam-Style Questions - Business Plans

1.5Business Stakeholders

1.5.1Business Stakeholders

1.5.2Technology & Business

1.5.3Legislation & Business

1.5.4Legislation & Business 2

1.5.5The Economy & Business

1.5.6External Influences

1.5.7End of Topic Test - Business Stakeholders

1.5.8Grade 9 - Business Stakeholders

2Building a Business

2.1Growing the Business

2.1.1Business Growth

2.1.2Finance

2.1.3Changes in Business Aims & Globalisation

2.1.4Ethics & Business

2.1.5The Environment & Business

2.1.6End of Topic Test - Growing a Business

2.1.7Application Questions - Growing a Business

2.1.8Exam-Style Questions - Business Growth

2.2Making Marketing Decisions

2.2.1Product

2.2.2Product Life Cycle

2.2.3Price

2.2.4Pricing Methods

2.2.5End of Topic Test - Product & Price

2.2.6Grade 9 - Product & Price

2.2.7Promotion & Advertising

2.2.8PR & Sales Promotions

2.2.9Sponsorship & Product Placement

2.2.10Promotional Mix

2.2.11End of Topic Test - Promotion

2.2.12Application Questions - Promotion

2.2.13Exam-Style Questions - Promotional Mix

2.2.14Place & Wholesalers

2.2.15Direct to Consumer

2.2.16E-commerce & M-commerce

2.3Making Operational Decisions

2.3.1Job Production

2.3.2Batch & Flow Production

2.3.3Working with Suppliers

2.3.4Effective Supply Chains

2.3.5Just In Time & Just In Case

2.3.6Managing Quality

2.3.7Total Quality Management

2.3.8The Sales Process

2.3.9End of Topic Test - Operational Decisions

2.3.10Grade 9 - Operational Decisions

2.3.11Exam-Style Questions - Managing Stock

2.4Making Financial Decisions

2.4.1Gross Profit & Net Profit - Definitions

2.4.2Gross Profit - Calculations

2.4.3Net Profit - Calculations

2.4.4Rate of Return

2.4.5Rate of Return - Calculations

2.4.6Research & Financial Data

2.4.7Marketing Data

2.4.8Percentage Change - Calculations

2.5Making Human Resource Decisions

2.5.1Organisational Structures

2.5.2Organisational Structures 2

2.5.3Recruitment

2.5.4Effective Recruitment

2.5.5Training a Workforce

2.5.6Motivating a Workforce

2.5.7End of Topic Tests - Human Resources

2.5.8Application Questions - Human Resources

2.5.9Exam-Style Questions - Human Resources

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