Financial and Non Financial Motivators Essay Example

is the use of piece-rate. This is when a company pays its employee/employer for every piece of work they get in on time.

An example of an industry which specializes in this area is the sewing industry. For each piece of item of clothing that an employee makes in time for an order the higher quantity they receive. An advantage of using this technique to help motivate employees is that it increases the speed of how fast the employers work and as a result of this the amount of work that they produce will also be increased. Another advantage is that workers do not be allowed to have sick pay or holiday pay so this will reduce the expenditure costs for the company.

However there are also disadvantages o this financial motivation such as work on the quality of the work that they are producing as they will be too anxious about getting the job finished and handing in the overall product in on time. Another disadvantage is that due to the eagerness of getting the task finished workers may fail to remember the rules and regulation of the company such as the health and safety policy. In addition, another motivation via the use of financial motivation is fringe benefits. These are objects that an employee receives a reward for all their hard work.

This can include items such as a company car, private health insurance, free meals etc. an advantage of using this procedure is that encourages company loyalty so that the workers may be persuaded to stay on for longer. It also helps to meet an employee’s human and social need. However there is also a

downside to using this method which is that due to high numbers of employees it may cost the company quite a lot of money. An example of a job that uses this is a driving instructor as they get to drive a company car. Furthermore, a company could also use the method of profit sharing to help motivate their employees even further.

This is when employees receive a proportion of the business’s profits. This means that staffs would hold the same position as the shareholders. An advantage of using this procedure is that it should break down the barrier between an employee and an employer as their will be as sense of equalisation. However, on the other hand there are also disadvantages to suing this method. One of them is that sometimes the share that is given to the employee may not be enough for them and this may not motivate them enough. So consequently they may not work to the best of their ability.

Another negative point to this method is that the workers may feel that no matter how hard they may work it will not have a massive effect of the income of the company so this may lead to the employee slacking and producing a poor level of work. Non-financial Job enrichment Job enrichment is when a company gives its employees a much more motivating, demanding and compound tasks. There are many reasons as to why this is motivating. One of them is that it enables the workers to be able to see their full potential and see what they are capable of producing.

It makes the task as a whole more interesting so

the employee will less likely to lose interest quickly and due to the fact that it is complex it will make the employee more determined to finish the task as they will want to complete the challenge. Once they have completed a difficult they will feel more proud of their self. Also it shows that their manager has faith in them that they can manage tricky or hard situations with the greatest of ease and this therefore creates a higher sense of achievement.

However, a careful decision that manager has to make is when deciding which employee is suitable for the complex task. If they pick someone who cannot work well under pressure then as a result of this the company could lose a great deal of revenue. For example Tesco may promote a cashier to a higher job role such as a department manager as they think they could handle a more challenging job. The managers need to judge carefully however what an appropriate task is for a worker to handle- if it is too complex for the workers or they do not possess the correct skill level, and then expensive mistakes could be made.

Job enlargement Job enlargement is when the employer gives the employee a greater deal of tasks to do which are of similar complexity. This will help to reduce the chance of an employee becoming bored and having to repeat certain tasks over and over again. However, over a certain period of time this will not fulfil a person needs and satisfaction as it will not give them a sense of achievement. An example of this is when a business teacher has

been given they duty to take cover for a maths lesson.

It will involve similar complexity as it both consists of teaching but maths requires more brain work and it a harder task. Teamworking Teamworking is when employers cooperate together in a group or a team. This can meet workers social needs as it helps people to make new friends and get to know their fellow work colleagues better. It also gives them a sense of belonging as they feel as though they play a part in making the team run successfully. An organisation can make a number of different types of teams such as: production teams, quality circles, and management teams.

There are many advantages to teamworking. One of them is that it can result to greater flexibility of the work that they produce. The reason as to why it may lead to this is because it may improve the skills of the employers due to the fact that they have learnt from the other team members that they have worked with. This means that if there is an absence due to a certain reason then they are able to cover the absent worker. An example if this is when car manufacturers have to work as part of a team to be able to build a good working car and produce good quality merchandise.

Empowerment Empowerment is like delegation. It is when responsibility and control is handed out to employees so that they can make their own decisions that affect their working life. For example, the employers will have authority to organise their time and how they use it affectively. They have to come up with solutions

to dilemmas that they are faced with. To make sure that empowerment is a success, workers must have enough training and/or a good quality level of skills so that they can be dependable to make the correct decisions.

If this does not happen then this could result into the business losing a great deal of money and therefore this could financially affect the whole company. It is the managers’ task to review whether the employer that hols a lower position in the job can handle the power and the task of decision-making. Even though the managers pass down the authority to the employer below them they are still held responsible for all the work that is carried out by them. An example of this is in a school when a head teacher enables the deputy/acting head teacher to make decisions which affects their working life.