Exam code: 8132
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Define motivation.
Motivation is the inner desire or willingness that drives a person to take action and achieve a specific goal or outcome.

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How does a motivated workforce affect labour turnover?
Motivated employees are more likely to stay with the business, so labour turnover is lower and there is less need for costly recruitment and training.
True or False?
Motivated employees tend to take fewer sick days.
True.
Motivated employees take pride in their work, so they are more reliable: they arrive on time, meet deadlines and take fewer sick days.
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Define motivation.
Motivation is the inner desire or willingness that drives a person to take action and achieve a specific goal or outcome.
How does a motivated workforce affect labour turnover?
Motivated employees are more likely to stay with the business, so labour turnover is lower and there is less need for costly recruitment and training.
True or False?
Motivated employees tend to take fewer sick days.
True.
Motivated employees take pride in their work, so they are more reliable: they arrive on time, meet deadlines and take fewer sick days.
Define financial incentives.
Financial incentives are rewards or payments given to employees in return for their labour or improved performance.
Define commission.
Commission is a percentage of sales revenue paid to workers who sell products or services.
In some businesses, employees are paid _________ for each item they produce.
In some businesses, employees are paid piece rates for each item they produce.
Define bonus.
A bonus is an additional payment given to staff for achieving specific goals or exceeding performance expectations.
True or False?
Promotion is not a financial incentive, because it is about responsibility rather than money.
False.
Promotion counts as a financial incentive. It brings a higher level of responsibility, and higher pay is usually offered to reflect this.
How does profit sharing motivate employees?
Employees receive a proportion of the business's profits, so they are motivated by the chance to benefit from its overall success.
Why might fringe benefits motivate employees to work hard?
Employees work hard to keep their job and the extra benefits that come with it, such as a company car, private healthcare or gym membership.
Define non-financial incentives.
Non-financial incentives are rewards that are not directly related to money, such as recognition, praise or job satisfaction.
Define autonomy.
Autonomy means giving staff the authority and resources to make decisions and take action without first receiving management approval.
What does job enrichment involve?
Job enrichment involves adding more challenging or meaningful tasks to a job, which makes staff feel more motivated and engaged.
__________ involves moving staff between broadly similar but varied roles in the business.
Job rotation involves moving staff between broadly similar but varied roles in the business.
How can a democratic management style improve motivation?
Democratic managers involve workers in decisions, and workers who feel they have a say are likely to be more engaged at work.
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