Motivation

Benefits of a Motivated workforce

  • Higher rates of output for the organisation so more products to sell;
  • More consistent quality of output – less waste, greater customer satisfaction;
  • Staff taking fewer days off for ill health;
  • Lower staff turnover – reduced recruitment, selection and induction training;
  • A happier and healthier working environment for all.

Common Methods of a Motivating Employees

  • Recognising strengths and weaknesses through the Appraisal process;
  • Using a payments system which recognises and rewards successful working;
  • Offering attractive working conditions and flexible working practices;
  • Reducing employee dissatisfaction by promoting good employee relations;
  • Creating opportunities for employee participation and successful team working.

Staff Appraisal

Appraisal is the process of reviewing and supporting the progress of an employee.  It should take place annually between an employee and their line manager.   The purpose of formal appraisal is to:

  • Recognise and praise achievements over the previous year;
  • Agree rewards for targets met since the last appraisal meeting;
  • Identify future training needs over the coming year;
  • Set targets to aim for before the next appraisal interview.

Advantages

  • Employee strengths and weaknesses are identified and acknowledged.
  • Employee achievements are valued, giving job satisfaction and higher motivation.
  • Opportunity for the employee to ask questions and make suggestions.
  • Weaknesses can be overcome by identifying training needs.
  • Helps identify employees who are ready for promotion.

Disadvantages

  • Employee may feel threatened and try to hide weaknesses.
  • Employee may expect a pay rise if they have met their targets.
  • Employee may become resentful if targets are unrealistic.
  • The organisation must be willing to provide resources to fulfil training needs.

Payment Systems

Most employees will be motivated by the prospect of gaining a financial reward as they will see it as a measure of their value to the organisation.  Common payments systems include:

  • Flat Rate (Salary) – the employee is paid an annual salary divided into 12 monthly payments. This gives the employee a stable year round income, which can make them feel more secure.  This method does not reward employees for working harder or producing work of higher quality.
  • Time Rate – the employee is paid an hourly rate for the number of hours they work each week.  Employees are rewarded for the exact number of hours they work which is easy to calculate.
  • Overtime Rate – the employee is paid a higher hourly rate – eg time and a half – for hours worked over their normal weekly hours. This allows employers to meet deadlines, or cover absences, without having to recruit new staff.
  • Piece Rate – this method is used in manufacturing where the employee is paid per unit of output produced. Employees have an incentive to work hard and produce more, thus increasing output.
  • Commission – paid to employees working in sales. Employee receives a percentage of the value of their sales.  Employees are motivated to meet sales targets and wage costs are linked to sales income.
  • Bonus – an additional payment made to employees who reach a target. Targets relate to level of sales, level of output, overall company profits.  Workers feel valued in return for success.

Fringe Benefits

These rewards do not involve a direct payment but still have a financial value eg company car, health insurance, cheap canteen, gym membership, opportunities to lease items such as computers or bikes, free parking.  Fringe benefits are motivating as they are seen as ‘perks’, however, they require more administration and can lead to resentment if not all employees receive them.

 

Flexible Working Practices

Employers can offer different types of job contract and flexible working practices to motivate their employees.

    • Full-Time Contract – employees are employed around 35 hours a week. This provides continuity of service and steady income for the employee.
    • Part-Time Contract – employees are working for less than 35 hours so can fit work round other commitments eg child care or studying.
    • Permanent Contract – employment with no pre-set end date. Employees benefit from job security. Employers benefit from employee continuity.
    • Temporary Contract – employees are taken on for a limited period of and can be laid off without redundancy payments.
    • Fixed Term Contract is a temporary contract which gives the employee a specified end date eg 23 months. This gives more security to the employee and increases the chances of retaining an employee throughout the contract term.
    • Home-working – allows employees to complete tasks in their own homes. Home-working reduces the cost and stress of commuting and saves the employer office space costs.
    • Tele-working allows workers to work away from the office but remain connected to the office network. Technical support and meetings can take place over the Internet, thus saving travel costs.
    • Hot-desking allows staff that work at home to book a work station in an office on an adhoc basis. Hot-desking saves the organisation space and means that staff can stay in touch with colleagues and have access to specialist equipment when they need it.

Positive Employee Relations

Employee relations refer to the way in which employers deal with their employees as a group or as individuals.  Positive employee relations can reduce conflict, thus improving employee job satisfaction and motivation.  The key players involved in building good employee relations are employees, trade unions, managers and ACAS.

The role of the Manager in building relations

  • Negotiate with trade union leaders.
  • Consult with employees before making decisions.
  • Involve (empower) employees in the decision making process.

The role of the Employee in building relations

  • Respond to managers in the consultation process.
  • Inform trade union representatives of their wishes.
  • Cooperate with managers to remain within the law.

The role of the ACAS in building relations

  • Prevent or resolve disputes between employers and employees by offering:
  • Advice – on how to work within employment law.
  • Conciliation – keeping both sides talking to resolve disputes.
  • Arbitration – passing judgement if employers and employees cannot agree.

The role of the Trade Unions in building relations

  • Negotiate better pay and conditions of employment on behalf of employees.
  • Represent employees in grievance or disciplinary matters with employers.
  • If necessary, organise industrial action involving employees.

Industrial Action

Disagreements between employees and managers may be solved by discussion between Trade Union representatives and managers.  If an agreement cannot be reached however, the Trade Union might call for employees to take industrial action to influence employer decisions.

  • Strike Action – employees refuse to enter the work place and to carry out work. Strikes leads to lost output and missed deadlines which can result in damage to reputation or financial penalties.  Employees lose income during strike action.
  • Go Slow – employees work as slowly as possible whilst remaining within their contract. Organisations may miss deadlines causing production costs to increase.  Employees lose income if on piece rates, and may miss out on an end of year bonus.
  • Overtime Ban – the employee refuses to work additional hours eg to complete a contract. Employers may have to hire extra staff to meet a deadline or cover absence. Employees will miss out on the enhanced rates of pay that go with working overtime.
  • Work to Rule – employees work to the letter of their contract of employment. This removes flexibility for the employer eg to offer an enhanced service to their customers. Employee may lose job satisfaction as they don’t like to let their customers or clients down.

Advantages

  • Grievances are aired so employer / employee relations can improve in the future.
  • New procedures can be introduced to avoid conflict in the future.
  • Management objectives can be altered to include more consultation with and participation by the workforce.

Disadvantages

  • Sales are lost and the organisation might fail.
  • Output is lost resulting in missed deadlines.
  • The reputation of the organisation may be damaged.
  • Employee/employer relations may become strained for the future.
  • Future employees may be put off applying for a job.

Participation and Team Building

Employee teams and/or participation in decision-making helps employees gain skills, prepare for promotion and may lead to higher job satisfaction and motivation.  Employers who build effective teams and involve employees in decision making benefit from more the generation of more ideas, reduced likelihood of industrial action, and more stable staffing.

  • Project Teams – may bring together staff with similar expertise eg a marketing team or bring together staff with different skills eg design, marketing and finance.
  • Works Councils – employees are elected to work with management. Employers benefit better relationships and more ideas.  Works council members may not have the overall aims of the organisation in mind however.
  • Quality Circles – workers meet to discuss and make recommendations to management on how to improve product quality. They can be motivating to employees as they feel valued, and employers benefit from ideas of people who are directly involved with manufacturing or customers.  Quality circles workers have to have paid time away from their regular job and it can create tension if management do not take up their recommendations.

 

 

 

 

Drawbacks of Team-Working

Teams may have different objectives resulting in conflict within the organisation.  It may be time consuming for teams to come to a decision.