Performance-related pay
Performance related pay is when a business increases the pay given to workers by the amount of effort put in, for example if an individual or a groupof orkers meet all their targets and improve the quality of their work. they will be rewarded with a bonus.Marks and Spencer’s have three-month bonus periods in which if a store makes a higher profit than what is predicted they will receive a bonus. Marks and Spencer's also gives gift vouchers for hard work, staff discount scheme of 20%
Motivational Theories C3
In Marks and Spencer's the use motivational theories in order to motivate staff. Here is the list of them below:
1.Maslow and the Hierarchy of needs
Abraham Maslow said that all motivation comes from a person's hierarchy of needs. A person is motivated by his or her own needs. Maslow defined the needs in a pyramid as he thought that once a person had fulfilled one level of needs, he or she would try to move onto the next level, therefore giving them motivation. Maslow proposed that the basic needs are the same for everybody and that they could be fulfilled in a specific order like the diagram:
2.Douglas Macgregor - Theory X and Theory Y
Macgrego said that many managers generalised the people that worked for them. They would put all of their employees into either a theory x category or a theory y category and then manage their company using the appropriate management style.
3.Frederick Herzberg - Two Factor theory
In 1957, Herzberg devised his ' motivation hygiene' theory which stated that two groups of factors affect employee motivation. Herzberg said that certain elements in a job motivate people to do better. He called these elements 'Satisfiers'. They include:
· Achievement
· Recognition
· Responsibility
· Advancement
· Personal growth
· Actual work itself
Other elements do not motivate people to work harder. These are referred to as hygiene factors. They are:
· Pay and conditions
· Status within the company
· Job security
· Benefits
· Relationships with fellow workers
· Quality of the company's managers
4.Frederic Taylor- Scientific Management
Taylor was born in 1856 and died in 1915. He worked as a factory superintendent in a locomotive factory in the USA. From carrying out studies of how people worked making axles, he concluded that:
· Employees were successful in getting jobs there because they knew the managers, not because they were good at the job.
· Employees did not work hard enough for fear of their friends losing their job
· Employers paid their employees as little as they could possibly get away with
· Employees were given little instruction of how to do their job and it was often done badly. The amount and quality of products produced was very poor.
Taylor said that his ideas would improve matters:
· Money was the only thing that motivated employees to work hard. If the workers were paid per item made, they would want to make more and would work harder.
· Trained managers should run the company and supervise employees with firm but fair discipline procedures.
· Employees must be properly trained to do their job
· Employee should be properly and fairly selected for jobs through tests and interviews. This is to make sure that the right person gets the job.
How Marks and Spencer's performance management/training and development systems have been influenced by the motivational theories
M&S use Maslow's theory by helping staff set and reach their goals at work, they encourage their staff and praise them when they are doing well and staff also receive rewards for good work. M&S use Herzberg’s two factor theory by treated their employees well by giving them a good salary, good working conditions and by giving them sick pays and pension’s schemes, they also give their staff responsibilities to make them feel like there are important to the company and motivate them. M&S use Mcgregor’s theory by having managers who have trust in the workers and help them improve and do their best and also by giving managers bonuses to motivate them. Marks and Spencer's also use Taylor’s Scientific Management theory by paying its employees in order to work and by having able managers control the staff.
