Motivation and Rewards

Study Notes

Motivation and rewards are crucial in the workplace to attract and retain employees, and increase productivity. Businesses use financial and non-financial methods to motivate employees, guided by theories from Herzberg, Maslow, and Taylor.

• Motivation — the reason(s) why employees want to work effectively for the business.
  Example: Employees may be motivated by money, job security, or social needs.
• Remuneration — payment for work, usually on a regular basis.
  Example: Wages or salaries paid to employees.
• Bonus — additional payment above basic pay as a reward for good work.
  Example: A lump sum paid when employees meet targets.
• Commission — payment related to the number of sales made.
  Example: Sales staff earning more based on sales performance.
• Fringe benefits — perks given alongside financial rewards.
  Example: Company car or health care.
• Job rotation — workers swapping tasks for variety.
  Example: Employees changing roles periodically to learn new skills.
• Job enrichment — adding tasks that require more skill and responsibility.
  Example: Employees receiving additional training to handle complex tasks.
• Autonomy — giving employees authority to make decisions about their work.
  Example: Employees choosing how to achieve set objectives.

Exam Tips

Key Definitions to Remember

• Motivation
• Remuneration
• Bonus
• Commission
• Fringe benefits
• Job rotation
• Job enrichment
• Autonomy

Common Confusions

• Confusing financial rewards with non-financial rewards
• Misunderstanding the difference between job rotation and job enrichment

Typical Exam Questions

• What is motivation in the workplace?
  Motivation is the reason(s) why employees want to work effectively for the business.
• How do financial rewards differ from non-financial rewards?
  Financial rewards involve direct payments like wages, while non-financial rewards include perks like job satisfaction.
• Explain Maslow's hierarchy of needs in the context of employee motivation.
  Maslow's hierarchy suggests that employees must satisfy basic needs before being motivated by higher-level needs.

What Examiners Usually Test

• Understanding of different motivational theories
• Ability to explain financial and non-financial methods of motivation
• Application of motivational concepts to business scenarios