S ae 7» People in busineObjectives Pe ect eras Saas Sd Ce Cs ene ee Motivating workers Introduction ‘Why do you come to school? Do you use both your time and resources well? How hard 0 you work at your studies? What will make you work harder? Do you work harder in some subjects than you do in others? Why do you work harder and more efficiently in come subjects than in others? If you know the reasons why, then could this help to improve the way you work in all of your subjects? These questions are similar to {questions that may be asked of people at work. Just as your teachers want you to ‘work hard and efficiently, so too do the managers of workers. Managers want to be able to motivate workers sothat they produce as many good quality products as they «an during their time at work Jn this chapter you will study why people work and what motivates them to work. A.well-motivated employee is likely to work harder and more efficiently and enjoy what they do than an employee who has no interest in their job. So you will also learn about people who have studied motivation at work and how this can help managers and businesses achieve a well-motivated workforce People working in an office jon of factors such as money, job Motivation at work results from a combi security, how interesting the work is and promotion prospects. These factors encourage workers to be interested and committed to their job so that they work: harder and more efficiently. If you ask people why they work, most will answer ‘to earn money” so they can buy what they ned to live. Bu there are many other reasons that mativate people to work, Some of the most important factors to influence motivation at work are shown in Figure 6.1irene Petal ann Cone ees Peceieemenetrarete Giionto werk rom home snd produce qual goods and ‘ted workers wil tras labor prodctity this flace verge sors nd creme compettienes Woes he to work are es ely tolake day fener, rate af abseteco oo lee he busines A lower ibour turnover ll inet cons. A wlll work ores ease to manage ad wll the business The main tee oa Figures2 The bensits to busines ofa welmotatedworktoesaoe eee em Ce ysusecinteca ; I naPent Autorotste std (AF) 4 Chinese manutactue of electronic component Besteotiorner te eens tracer en eenencnns ppuyecieeeotcgete eae Sonat ee trasnrenrdon oanencraceueero tue tehonmmnten hier is barr, Teather een Nest Rowan Or coe npr Thaw at VKF nah wage hatha ore year ‘havd-working employees. He introduced a newoy system. Mary workers fd Nol receive a pay tse. However, they Can een areas ieee ee 1 stator nat sep wanes HA heebece essed sce Booch oe cota he bases 3 (Decree at ne cviad 8 Wt doeti case tou abou ns and abst at ae Ine gy Precis Figure 6:3 Masiows Hierarchy of Needs“Maslow believed that humans have five lev of ned: 15 Physical needs - these ae the basicneeds we must have tbe ablete survive, They f= Safety needs -werieedto be safe fiom physical danger and indviduals need to ‘= Social needs - ost people want to be accepted by others and to feel that they {and ruse is important to have ends and belongto a group where = Estoem needs recognise by others. For some people having certain status also an important vals want be respected and to have thir achievements ‘= Salactualiation-not everyone wil reach their fall potential, but for some achieve self actulisation because theyll always set themselves another According to Maslow all humans start atthe lowest level of need ~ physical needs ‘Oce they have stisied ther physical needs then they are motivated fo try to each the next evel - safety neds ~ and soon, until they each the top level of n. Oncea need has been satisfied itis nolonger a motivator. veto organise works that individuals are able fo a & werker motivations improve, then will produce more, better quality, will improve competitiveness and help t of Maslow’stheory of motivation f= itisoften dificult identifyhow muchot each need has been metand which evel 1& None might also satis esteem reedsas well as thoselowerdown the Oo fSelkacuasator ray, fever achieved. hero, ness mor chalengng Contract of employment achoftefollewingcoule helpan individual to achieve one ofthe needs identified by Maslow, Copy and complete etal below by entering each ofthese ito your table aginst the correct ev 1. Pay received is tgh enough to buy bosic needs 2 The manager praises workers '3 Workers are given a contract of employment setting ox thet pay and working conditions,Combridge GCSE Gusiness Studies _Seetion 2 Peoplein business 4 Norte are oan itteamor poses 5 orem ar pees wh tet orig © orkischtengng 47 Thebes very rota | ores shen nino fs compton a abs ° ational th for and Herzberg eds You hie already te hee Madow' researc described theese ou FW. Toylor-scentficmanagement theory yo shen management theory int educe infin inthe workplace ng the quickest mod af perfrming cach task and then aig all workers tou this ethod. The cent management prone atl wedi !may countries ody for ear woke ivave nw patonspecalse In perfringone tak realy ae increase thefts they ha tobe ewarded wth mae money. Ths pe from Taylors resetch, Workers ae pad hy willwork harder Deane the more units they rode theme heythat noted pene at work Hit sh alle pene ators an compan pocjandrintraian | w) Resgnten ol ativenent | able 1 Herber' tweactortheor Halen factors o = 1 Workingcondionsncs things uch as ow lean nd af the woe i serrate proied kr woes fr example woos iks oe tiuhinsand citen or mal entanewmethatinincree | alatnmsips ih others histor conker he inportane 3 work Trinrase nous sng nships ih her errs the ne fen Tu ago ation wah manager fo bette ay td wih epee 1 Salary ad wage - Harber argued that people ha be pid ough Shourg them o doa jobjbut mney vas notenouph for tems want. go aaad x aicenedby Methods of motivation Tvovards snd non-financial erardsasshown in gure 6. pee #0 Financial rewards and methods The heoriss we boked at ere agree ron wor Hoveve hey d ntl gre on how important money i388 reertor Taylors view of econom ma or example ges nk money whereas Heber theory ony ses money a8 rportan br preventing ob issatsactien, Bo motieee ue ur Figure 6.6 Financial and non-financial rethods of motivation Ifmoney isan important motivator then managers need to consider how best to ase s10 achievea well mowvated workforce. The methods of nancial rewaads dlentified in Figure 6( areexplained below Hourly wage rate An hourly wage rate mea that workers are paid fixed amount per hour worked se main adivantsge of this method is thatthe business only pays workers for | 1e numberof hours they are at work However, the disadvantage isthat worker pay fs not lined tohow much they produce. For example one worker might preduce an average of 20 unit per hour J another may produce 28 unis per hour, but both workers wil receive exactly the same pay. salary ‘With «salary, workers are paid «fixed amount per yer, which usually paid ‘monthly. This method is best use for workers whose work efforts not directly linked to production, for example supervisors, managers and professional staff The advantage ofthis payment method is that workers do otrecele more pay ‘they haveto work langer hous to complete a task. The main disadvantage is that sount produced. salary: no inked to worker effort orth Plece-rate te mean that pay based on the number of wnlts of output workers, For example fa worker is paid $025 for every unit they produce, and they Produce 600 units in aweeh, then thei wage will be $0.25 x 600 = $150. Piece-rte ‘ystems are only use to reward production workers, ‘Themain advantage of this method is that workers are only paid forthe number ‘ofitems they produce. Uhe main disadvantage is that the quality of goods produced may be poor because workers try to work too quickly to increase their output andpay.With comin aunt va a mide ys Title veniam tt tke tv ole nin Gnvanage ths payment math io worker ita ty ate heer certain aout hw md they wlan Se “ nove sah hil aT a et ey ay Tot apt sieey¢ corps ve ere ects PE he sine bec the wil cin sa wethod of performance related poy. Workes Colca the seage wey 28 22 Bazeson youre 10 cuiinpememe | = | , = 2 1s. Fringe benefits Fringe benef arean ern to ca prymens: They sine dnc eae tutecommny cr hah sac and pensions rss Me ‘vrkers fa business re acon igs Bnei ese aul dient PS igs ene eink tthe indvias aos eka ————————ee reamed nee Sue ee eee inf the want bythe ems al orhersmightrecevea di frag a ge bees that they can help inthe redrlimert sadvantapes tat ine tenets are fen sa tse on he ro he sth rm ocak pment cuter ry be en resin the empany ating woreward workers lon worker = ha conte The mal claadhntay ides Director of Cemmuntcati ond Monating ; emt anaey |p| Noererwostacsay hava ecase one inge rt you thnk the company oto act ater ay pao fe the een Ui Mtasdow and Here are correct abet money at Benge tomate 1 and envichment Jb etalon Iniend ol doing the se tak, wither Schon te tistiled, hlchbelpscreate amore Nee wero. slons affecting the jb. hsrreass tej stsacion, eiciescy and ary of tasks worker do, sing any of the above k jo tedsign. The am fob edeiga to mae the Work rc ntcestirg ané mot challenging for workers Itcan also elp them tleara sl whith may belp thee chances of romotion ver Ky Many have and thos thaemain af ess product thas they aed Tignes unre! the workers no lenger vi thesis. The work bong ansdoesnot Company Xhes appointed apes opeston 4 \cenubytwo actosthat iy have cused tivation prblens a Campany% 2 lent and explalntwo benefits to Compary Xol mproring worker motivation, 2 coyou tink nat Ecvre's ght inttokingjo ede thesoluon tothe problems at COMRSAYA? HD Top Euardo We has bege oy the Brecon roe mentconsEduada thks at job edess the soon totes ——————————————————peer Oe ee ed eer eof who ets cs orate Choosing methods of motivation ‘We have seem hat managers an ie een mets o motvate Work. Horeve theres nest method of motistion, Managers mast choose the tho tha they think esto motrat dered type of workce They may ‘sider the flowing factors when choosing which method use * Whatisthecost tothe busines of ung a paticar method? Everymethed we havediscused ove wilinreane cists, Can the business afd Wl he bene the business f motvating workers be great thantheincteasein cospeer Oe ee ed eer eof who ets cs orate Choosing methods of motivation ‘We have seem hat managers an ie een mets o motvate Work. Horeve theres nest method of motistion, Managers mast choose the tho tha they think esto motrat dered type of workce They may ‘sider the flowing factors when choosing which method use * Whatisthecost tothe busines of ung a paticar method? Everymethed we havediscused ove wilinreane cists, Can the business afd Wl he bene the business f motvating workers be great thantheincteasein cosExam practice que! buses his a wllmotate nr ndiced y tha werrce aurng the pa fos b. Calcuet Aare workers, (a © dently an oxpan payment 4. ently anc exotin two Francia methods Cary ho. a o ‘© The managomert of Company B believes that money + the oly way to mothate workers, Do you agree? Joi your arene 6Section 2People in busine! ce eee candy manufacturer employe £0 wo + cone 8150 per woekcbased on a 40our wa wepeds production targets aor i they 2 Pe xcoives a salary ot $90,000 per year a eee ear, Ak managers at ABC 2°@ part ofa pro ‘ ars alow They lave the tb What is meant by a zi sy and expen two Bene © offer Total available marks 40