Exam code: 7132
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Define motivation.
Motivation is the inner desire or willingness that propels a person to take action and achieve a goal.

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Define intrinsic motivation.
Intrinsic motivation comes from within a person — their values and beliefs.
Define extrinsic motivation.
Extrinsic motivation comes from external factors — rewards or punishments.
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Define motivation.
Motivation is the inner desire or willingness that propels a person to take action and achieve a goal.
Define intrinsic motivation.
Intrinsic motivation comes from within a person — their values and beliefs.
Define extrinsic motivation.
Extrinsic motivation comes from external factors — rewards or punishments.
Give two benefits of a motivated workforce.
Higher productivity and output and greater reliability (also lower labour turnover).
What does Taylor's scientific management focus on?
Breaking complex tasks into simpler ones, standardising processes and training workers for maximum efficiency.
What form of pay is linked to Taylor's theory?
Piece-rate pay (and bonuses).
Give one disadvantage of Taylor's approach.
Overemphasis on efficiency reduces satisfaction and creativity (workers may disengage, and it risks exploitation).
How many tiers are in Maslow's hierarchy of needs?
Five tiers of human needs.
Name Maslow's five needs in order.
Physiological → safety → love/belonging → esteem → self-actualisation.
How can a business meet employees' esteem needs?
By recognising accomplishments and building a culture that values individual contributions.
How can a business meet self-actualisation needs?
By offering opportunities to pursue passions and interests and reach full potential.
Define hygiene factors (Herzberg).
Hygiene factors do not create satisfaction, but their absence causes dissatisfaction — e.g. pay and working conditions.
Define motivators (Herzberg).
Motivators lead to job satisfaction and motivation — e.g. increased responsibility and recognition.
Give two examples of Herzberg's hygiene factors.
Fair pay and good working conditions (also job security).
Give two examples of Herzberg's motivators.
Recognition/reward and growth and development (also challenging work).
Taylor's scientific management breaks complex tasks into ones to achieve maximum efficiency.
Taylor's scientific management breaks complex tasks into simpler ones to achieve maximum efficiency.
True or False?
According to Herzberg, improving hygiene factors will actively motivate employees.
False.
Hygiene factors only prevent dissatisfaction; it is the motivators that actively create satisfaction.
True or False?
Taylor's scientific management works well for highly creative, problem-solving roles.
False.
It has limited applicability to roles needing creativity, problem-solving or interpersonal skills.
Define financial rewards.
Financial rewards are payments given to employees in return for their labour or improved performance.
Define piecework.
Piecework pays employees according to the number of units they produce.
Which motivational theory is piecework linked to?
Taylor's scientific management.
Define commission.
Commission is a percentage of sales revenue paid to workers who sell products or services.
Define a bonus (financial reward).
A bonus is an additional payment for achieving specific goals or exceeding performance expectations.
What did Herzberg believe about bonuses as the main form of pay?
That they would negatively influence behaviour — part of the problem in banking before the 2008 financial crash.
Define profit share.
Profit share distributes a portion of the company's profits among staff.
Why can profit sharing motivate staff?
It encourages them to think like owners, work collaboratively and focus on the company's overall goals.
Define performance-related pay.
Performance-related pay pays staff based on their performance to encourage them to work harder.
Why has performance-related pay been criticised?
It is seen as discriminatory and open to abuse by managers, and acts as a hygiene factor that can cause dissatisfaction.
Define fringe benefits.
Fringe benefits are financial rewards other than wages/salary — e.g. medical insurance, a company car or a pension.
What is the difference between wages and salaries?
Wages are paid on hours worked or items produced; salaries are annual, paid in periodic (usually monthly) instalments.
In Maslow's hierarchy, which need do wages and salaries connect to?
Safety needs — and they act as a hygiene factor in Herzberg's theory.
Salaries are usually expressed on an basis and paid monthly.
Salaries are usually expressed on an annual basis and paid monthly.
True or False?
Herzberg regarded performance-related pay as a reliable motivator.
False.
He classed it as a hygiene factor that has been proven to cause significant dissatisfaction.
Define non-financial rewards.
Non-financial rewards are motivators not directly related to money — e.g. recognition, job satisfaction and work-life balance.
Define empowerment.
Empowerment gives staff the authority and resources to make decisions without first getting management approval.
Which motivational needs does empowerment link to?
Maslow's esteem needs and a Herzberg motivator (increased responsibility).
Define job enrichment.
Job enrichment means adding more challenging or meaningful tasks to a job.
Define job rotation.
Job rotation means moving staff between different roles in the business.
Define job enlargement.
Job enlargement means expanding staff's job duties to include additional tasks or responsibilities.
What is the difference between job enrichment and job enlargement?
Enrichment adds more challenging/meaningful tasks; enlargement adds more tasks for greater variety.
Define flexible working.
Flexible working gives employees greater control over when, where or how they work — e.g. remote work, flexitime or compressed hours.
How does flexible working motivate staff?
It improves work-life balance, reducing stress and absenteeism and increasing motivation and loyalty.
How does teamworking motivate staff?
It lets staff collaborate and share ideas/expertise, improving productivity and innovation (Maslow's love/belonging and esteem needs).
Whose human relations theory is linked to job enlargement?
Mayo's human relations theory, as it encourages the development of staff.
Give two examples of non-financial rewards.
Empowerment and flexible working (also teamworking, job enrichment, job rotation and job enlargement).
Non-financial rewards are motivators not directly related to .
Non-financial rewards are motivators not directly related to money.
True or False?
Non-financial rewards are usually tangible payments made to staff.
False.
They are usually intangible — recognition, job satisfaction and work-life balance rather than money.
Is there a single motivational method that works for every team?
No. The best strategies depend on the workforce, industry and strategic goals.
Name two factors influencing the choice of rewards package.
The nature of the work/workforce and the cost/financial position (also demographics, culture and industry norms).
What rewards tend to suit labour-intensive or production roles?
Piece-rate pay or bonuses, to boost output.
What rewards tend to suit creative or professional roles?
Non-financial rewards like flexible working and job enrichment.
How might a business's financial position affect its rewards?
Tight budgets favour non-financial methods; strong cash flow allows bonuses or profit sharing.
How do workforce demographics affect what motivates staff?
Younger workers may value progression and flexibility; older workers may value job security and pensions.
How do industry norms influence rewards?
Businesses align with competitors to attract and retain talent; falling behind raises staff turnover.
Name two measures used to assess a rewards package's effectiveness.
Productivity/output and staff turnover rates (also absenteeism, satisfaction surveys and customer service).
What should an effective motivation scheme lead to?
Higher engagement, lower recruitment costs and better business performance.
The best rewards package depends on the workforce, industry and strategic .
The best rewards package depends on the workforce, industry and strategic goals.
True or False?
One rewards package works equally well for every business and workforce.
False.
There is no single method — the package must fit the workforce, industry and strategic goals.
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