2.4.3

Non-Financial Methods of Motivation

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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

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.
An example is the laissez-faire management style, where employees have high levels of freedom to make decisions about their work.
- This can increase motivation for skilled and experienced employees.

Fringe benefits

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.
- Aldi gives all the graduates managing its stores an Audi A4 as part of their employment package.

Job rotation

Job rotation

Job rotation describes an employee moving jobs within an organisation. Some employees enjoy the variety that this provides.
Organisations like Alphabet (which owns Google, YouTube, and other subsidiaries) are known for rotating employees across different parts of the business to share skills and experience.

Autonomy

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

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.

Training

Training

Providing training can motivate employees because it increases their skills, competence, and confidence.
Employees are more likely to feel valued and perform better.

Praise and recognition

Praise and recognition

Recognition of achievements and regular praise can motivate employees.
Feeling appreciated increases job satisfaction and encourages continued good performance.

Methods for Different Situations

Methods for Different Situations

Certain methods of motivation are more suitable depending on the type of employee or job.
Commission works well for sales staff.
Job rotation may motivate employees in creative or varied roles.
Fringe benefits may motivate highly skilled or senior staff.
Praise and recognition are effective for all employees.
- Especially for roles where output is less measurable.

1

Understanding Business Activity

1.1

Business Activity

1.1.1Purpose of Business Activity 1.1.2Customer Needs 1.1.3Why are Businesses Set Up?1.1.4Specialisation & Division of Labour

1.2

Classification of Businesses

1.2.1The 3 Sectors of Economic Activity 1.2.2Public & Private Sector

1.3

Enterprise, Business Growth & Size

1.4

Types of Business Organisation

1.4.1Sole Traders 1.4.2Partnerships 1.4.3Limited Companies 1.4.4Private Limited Companies 1.4.5Public Limited Companies 1.4.6Unlimited vs Limited Liability 1.4.7Not For Profit 1.4.8Franchising 1.4.9End of Topic Test - Business Ownership 1.4.10Application Questions - Business Ownership 1.4.11Diagnostic Misconceptions - Company vs Business

1.5

Business Objectives & Stakeholder Objectives

1.5.1The Main Stakeholders in a Business 1.5.2The Impact & Influence of Stakeholders on Business 1.5.3Diagnostic Misconceptions - Profit 1.5.4Diagnostic Misconceptions - Owners vs Shareholders

2

People in Business

2.1

Human Resource Management (HRM)

2.1.1Contracts of Employment 2.1.2Recruitment 2.1.3Benefits of an Effective Recruitment Process 2.1.4Reducing the Workforce 2.1.5Legal Controls Over Employment 2.1.6Training 2.1.7End of Topic Test - The Workforce 2.1.8Application Questions - The Workforce 2.1.9Diagnostic Misconceptions - Recruitment

2.2

Organisation & Management

2.2.1Internal Organisational Structures 2.2.2Business Functions & Definitions 2.2.3Centralised vs. Decentralised Structures 2.2.4Tall & Flat Organisations 2.2.5The Impact of Organisational Structure on Managing 2.2.6Leadership Styles 2.2.7Trade Unions 2.2.8End of Topic Test - Org Structure

2.3

Methods of Communication

2.3.1Communication in Businesses

2.4

Motivating Employees

2.4.1Motivation in the Workplace 2.4.2Financial Methods of Motivation 2.4.3Non-Financial Methods of Motivation 2.4.4Diagnostic Misconceptions - Money

3

Marketing

3.1

Marketing & the Market

3.1.1Customer Needs 3.1.2Identifying and Satisfying Customer Needs 3.1.3The Market 3.1.4The Market-Driven Approach 3.1.5Competition 3.1.6The Impact of High Competition 3.1.7Diagnostic Misconceptions - Competition 3.1.8Market Segmentation 3.1.9Methods of Market Segmentation

3.2

Market Research

3.2.1Market Research 3.2.2Qualitative & Quantitative Research 3.2.3Primary Market Research 3.2.4Secondary Market Research 3.2.5Analyse Market Research Data 3.2.6Application Questions - Marketing 3.2.7End of Topic Test - Marketing

3.3

Marketing Mix

3.3.1The Product Life Cycle 3.3.2Product Design 3.3.3Product Portfolio & The Boston Matrix 3.3.4Benefits & Risks of New Products 3.3.5Extension Strategies 3.3.6Price 3.3.7Pricing - Skimming & Penetration 3.3.8Competitive and Cost-Plus Pricing 3.3.9Market Mapping - Price vs Quality 3.3.10Place 3.3.11Manufacturer-Wholesalers-Retailers-Customers 3.3.12Manufacturer-Retailers-Customers 3.3.13Direct to Customers 3.3.14Promotional Methods 3.3.15Reasons for Promotion 3.3.16Advertising 3.3.17Advertisement - Product Placement 3.3.18Public Relations 3.3.19Sales Promotion 3.3.20Sponsorship 3.3.21Social Media 3.3.22Promotional Mix 3.3.23E-Commerce and M-Commerce 3.3.24Benefits & Drawbacks of E-Commerce and M-Commerce 3.3.25End of Topic Test - Marketing Mix 3.3.26Grade 9 - Marketing Mix 3.3.27Diagnostic Misconceptions - Decreasing Price 3.3.28Diagnostic Misconceptions - Advertise vs Promote 3.3.29Diagnostic Misconceptions - Social Media 3.3.30Marketing Strategy 3.3.31Entering Foreign Markets

3.4

Legal Controls

3.4.1Legal Controls on Marketing

4

Operations Management

4.1

Production of Goods & Services

4.1.1Production Processes Overview 4.1.2Job Production 4.1.3Flow Production 4.1.4Batch Production 4.1.5Production Efficiency - Lean Production 4.1.6Managing Stock - Just in Time 4.1.7Technology & Production 4.1.8Factors of Production 4.1.9Diagnostic Misconceptions - JIT vs JIC

4.2

Cost, Scale of Production & Break-Even Analysis

4.2.1Costs 4.2.2Costs - Calculations 4.2.3Economies of Scale 4.2.4Diseconomies of Scale 4.2.5Break-Even Analysis 4.2.6Profits and Losses - Calculations 4.2.7Diagnostic Misconceptions - Fixed Costs 4.2.8Diagnostic Misconceptions - Economies of Scale 4.2.9Diagnostic Misconceptions - Break-Even

4.3

Achieving Quality Production

4.3.1Importance of Quality 4.3.2Measuring Quality 4.3.3Quality control 4.3.4Total Quality Management 4.3.5Benefits of Maintaining High Product/Service Qual.4.3.6Costs of Maintaining High Quality/Service 4.3.7End of Topic Test - Operational Decisions

4.4

Location Decisions

4.4.1Business Location 4.4.2Nature of Business Activity

5

Financial Information & Decisions

6

External Influences on Business Activity

6.1

Economic Issues

6.1.1Business Cycle 6.1.2Objectives of Government Economic Policy 6.1.3Provision of Public Services 6.1.4Taxation & Constraints on Public Spending 6.1.5The Government & Business Activity 6.1.6Interest Rates 6.1.7Interest Rates - Calculations 6.1.8Diagnostic Misconceptions - Recession

6.2

Business & the International Economy

6.2.1Multinational Companies 6.2.2Exchange Rates

6.3

Business & the Environment

6.3.1Globalisation 6.3.2Environmental Issues 6.3.3Business and Sustainability

6.4

Business & Ethical Issues

6.4.1Ethical Considerations for Businesses 6.4.2Benefits of Being Ethical

6.5

Pressure Groups

6.5.1Pressure Groups

Jump to other topics

1

Understanding Business Activity

1.1

Business Activity

1.1.1Purpose of Business Activity 1.1.2Customer Needs 1.1.3Why are Businesses Set Up?1.1.4Specialisation & Division of Labour

1.2

Classification of Businesses

1.2.1The 3 Sectors of Economic Activity 1.2.2Public & Private Sector

1.3

Enterprise, Business Growth & Size

1.4

Types of Business Organisation

1.4.1Sole Traders 1.4.2Partnerships 1.4.3Limited Companies 1.4.4Private Limited Companies 1.4.5Public Limited Companies 1.4.6Unlimited vs Limited Liability 1.4.7Not For Profit 1.4.8Franchising 1.4.9End of Topic Test - Business Ownership 1.4.10Application Questions - Business Ownership 1.4.11Diagnostic Misconceptions - Company vs Business

1.5

Business Objectives & Stakeholder Objectives

1.5.1The Main Stakeholders in a Business 1.5.2The Impact & Influence of Stakeholders on Business 1.5.3Diagnostic Misconceptions - Profit 1.5.4Diagnostic Misconceptions - Owners vs Shareholders

2

People in Business

2.1

Human Resource Management (HRM)

2.1.1Contracts of Employment 2.1.2Recruitment 2.1.3Benefits of an Effective Recruitment Process 2.1.4Reducing the Workforce 2.1.5Legal Controls Over Employment 2.1.6Training 2.1.7End of Topic Test - The Workforce 2.1.8Application Questions - The Workforce 2.1.9Diagnostic Misconceptions - Recruitment

2.2

Organisation & Management

2.2.1Internal Organisational Structures 2.2.2Business Functions & Definitions 2.2.3Centralised vs. Decentralised Structures 2.2.4Tall & Flat Organisations 2.2.5The Impact of Organisational Structure on Managing 2.2.6Leadership Styles 2.2.7Trade Unions 2.2.8End of Topic Test - Org Structure

2.3

Methods of Communication

2.3.1Communication in Businesses

2.4

Motivating Employees

2.4.1Motivation in the Workplace 2.4.2Financial Methods of Motivation 2.4.3Non-Financial Methods of Motivation 2.4.4Diagnostic Misconceptions - Money

3

Marketing

3.1

Marketing & the Market

3.1.1Customer Needs 3.1.2Identifying and Satisfying Customer Needs 3.1.3The Market 3.1.4The Market-Driven Approach 3.1.5Competition 3.1.6The Impact of High Competition 3.1.7Diagnostic Misconceptions - Competition 3.1.8Market Segmentation 3.1.9Methods of Market Segmentation

3.2

Market Research

3.2.1Market Research 3.2.2Qualitative & Quantitative Research 3.2.3Primary Market Research 3.2.4Secondary Market Research 3.2.5Analyse Market Research Data 3.2.6Application Questions - Marketing 3.2.7End of Topic Test - Marketing

3.3

Marketing Mix

3.3.1The Product Life Cycle 3.3.2Product Design 3.3.3Product Portfolio & The Boston Matrix 3.3.4Benefits & Risks of New Products 3.3.5Extension Strategies 3.3.6Price 3.3.7Pricing - Skimming & Penetration 3.3.8Competitive and Cost-Plus Pricing 3.3.9Market Mapping - Price vs Quality 3.3.10Place 3.3.11Manufacturer-Wholesalers-Retailers-Customers 3.3.12Manufacturer-Retailers-Customers 3.3.13Direct to Customers 3.3.14Promotional Methods 3.3.15Reasons for Promotion 3.3.16Advertising 3.3.17Advertisement - Product Placement 3.3.18Public Relations 3.3.19Sales Promotion 3.3.20Sponsorship 3.3.21Social Media 3.3.22Promotional Mix 3.3.23E-Commerce and M-Commerce 3.3.24Benefits & Drawbacks of E-Commerce and M-Commerce 3.3.25End of Topic Test - Marketing Mix 3.3.26Grade 9 - Marketing Mix 3.3.27Diagnostic Misconceptions - Decreasing Price 3.3.28Diagnostic Misconceptions - Advertise vs Promote 3.3.29Diagnostic Misconceptions - Social Media 3.3.30Marketing Strategy 3.3.31Entering Foreign Markets

3.4

Legal Controls

3.4.1Legal Controls on Marketing

4

Operations Management

4.1

Production of Goods & Services

4.1.1Production Processes Overview 4.1.2Job Production 4.1.3Flow Production 4.1.4Batch Production 4.1.5Production Efficiency - Lean Production 4.1.6Managing Stock - Just in Time 4.1.7Technology & Production 4.1.8Factors of Production 4.1.9Diagnostic Misconceptions - JIT vs JIC

4.2

Cost, Scale of Production & Break-Even Analysis

4.2.1Costs 4.2.2Costs - Calculations 4.2.3Economies of Scale 4.2.4Diseconomies of Scale 4.2.5Break-Even Analysis 4.2.6Profits and Losses - Calculations 4.2.7Diagnostic Misconceptions - Fixed Costs 4.2.8Diagnostic Misconceptions - Economies of Scale 4.2.9Diagnostic Misconceptions - Break-Even

4.3

Achieving Quality Production

4.3.1Importance of Quality 4.3.2Measuring Quality 4.3.3Quality control 4.3.4Total Quality Management 4.3.5Benefits of Maintaining High Product/Service Qual.4.3.6Costs of Maintaining High Quality/Service 4.3.7End of Topic Test - Operational Decisions

4.4

Location Decisions

4.4.1Business Location 4.4.2Nature of Business Activity

5

Financial Information & Decisions

6

External Influences on Business Activity

6.1

Economic Issues

6.1.1Business Cycle 6.1.2Objectives of Government Economic Policy 6.1.3Provision of Public Services 6.1.4Taxation & Constraints on Public Spending 6.1.5The Government & Business Activity 6.1.6Interest Rates 6.1.7Interest Rates - Calculations 6.1.8Diagnostic Misconceptions - Recession

6.2

Business & the International Economy

6.2.1Multinational Companies 6.2.2Exchange Rates

6.3

Business & the Environment

6.3.1Globalisation 6.3.2Environmental Issues 6.3.3Business and Sustainability

6.4

Business & Ethical Issues

6.4.1Ethical Considerations for Businesses 6.4.2Benefits of Being Ethical

6.5

Pressure Groups

6.5.1Pressure Groups

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Financial Methods of Motivation

Diagnostic Misconceptions - Money