• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

What are the most effective ways of motivating employees?

Extracts from this document...

Introduction

Hamish Dunn Unit 2 Coursework March 2003 What are the most effective ways of motivating employees? Motivation is likely to increase productivity. Different people require different incentives to achieve their maximum potential and increase productivity. There is controversy as to which are the most effective types of motivation. The most common types of person are those whose incentive is money, those whose incentive is job enrichment (makes a job more rewarding by adding responsibility) and those who thrive on recognition of achievement. Abraham H. Maslow, 1954, produced a "Hierarchy of Needs" which depicts the most influential things to a human being. The hierarchy of needs was later put into a pyramid form (appendix 1.1). The most influential are at the bottom of the pyramid. For example, a person needs water to survive; these are called 'Body Needs'. The second is 'Security Needs' these include safety and are more dominant in young children. These can include the need for a friend or a parent to keep an eye out for you. The 3rd row up is 'Social Needs,' these include wanting interaction with other human beings for example teamwork would fulfill this need. ...read more.

Middle

Pay structures also allow room for a pay increase therefore motivating staff. (Appendix 1.2) shows a typical graded pay structure of for example a teacher. The lower paid jobs have lower differentials and the higher paid jobs have higher differentials and a broader band allowing more room for improvement. In every pay structure there is a trend line which most employees find themselves following (Appendix 1.3). However as with every company there are high performers and low performers that do not fit the trend. The productivity of a shopfloor employee (a labourer in the manufacturing industry) can be measured using a BSI (British Standard Institution) formula (Appendix 1.4). This formula can also be used to test the success of an incentive on an employee. The answer given by the formula is usually expressed out of 133. 100/133 being the average performance of an employee without an incentive and 133 being that of a fully motivated operator. Humans have many different needs. These could include Pension schemes or a company car. Pension schemes are good for employees as they offer good rates and motivate staff to earn more on top of their pension scheme; they also fulfill a human's need for security. ...read more.

Conclusion

The advantage of contribution related pay is that it promotes continuous improvement, therefore making the employee eligible for a higher pay and a higher status. This will also increase a company's productivity in the long-term. At 'Bass Brewers' pay is calculated on an overall contribution rating of 50% competency and 50% achievement. Using contribution related pay makes employees more aware of the importance of skills in the modern day world. This could also mean employees will take advantage of training opportunities in future in order to increase their; in the long term this will lead to a more skilled workforce. I have found that there is not one definite motivator, as 'Maslow' understood, but a variety of different incentives must be used, for every employee to reach their maximum potential. However some factors are more influential than others for example money. Many of 'Maslow's ideas rely on finance, a new car boosts a person's ego, but at the cost of the car. I have therefore concluded that if one sole incentive were to be used it should be 'Contribution-Related Pay,' as it not only takes into account your past performance and productivity but it also considers one's skills (competence) which will benefit the company in the long term. Appendices Appendix 1. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE People in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE People in Business essays

  1. Why did the Weimar regime survive between 1918-24?

    Having an equal opportunities policy means that more staff and teacher from the minorities will be attracted to the school. If the HR planning is successful the school staff employed are fully utilised to the benefit of the school. This may lead to good exam results.

  2. METHODS FOR MOTIVATING EMPLOYEES

    Experts say one year is the limit" (Cummings, 2002). If employees go for more than one year without receiving a raise or a bonus, their productivity is likely to decline, and valuable employees may be tempted to look for other employment, which can be costly in rehiring expenses.

  1. If the company does not have an effective process of hiring staff then they ...

    They can then use their expertise with presentations software such as PowerPoint to create existing presentations. Settings up IT systems - IT workers are also expected to trouble shoot and set up IT systems within the organisation. * Administrators- administrators play an important role in modern organisations by creating a

  2. Find out how 2 companies; Brean Leisure Park and Wilsher and Quick motivate their ...

    Training can be done either on site or off site (by an outside company). Commonly, In House is the preferred option. In house training involves people currently doing the job, or supervisors, training the employee in the workplace. This is adequate for simple jobs, but for more complicated jobs, offsite training which is more thorough, is necessary.

  1. Study and compare the wage incentive schemes prevalent in the service sector.

    course there are others such as payment by results or bonus schemes, suggestion schemes, profit sharing schemes, etc. Goods and services are created by the use of three things only - the real resources of any kind of industry namely * Manpower (brain and brawn)

  2. Gulf States Metals Inc. (GSM)

    The core assumptions are that people and organisations need each other, and that poor fit results in frustrated individuals and organisations missing out on the talent of individuals who have withdrawn, resisted or rebelled. If the fit is good, organisations receive the talent and energy to succeed and individuals have satisfying work.

  1. Research the German Car Industry - BMW

    of refugees into Germany, the flow of East Germans leaving to West Germany, and the poor economic conditions left in East Germany by the Communists. In the East, the unemployment rate remains at about 18%, despite efforts to lower it.

  2. Building Effective Teams.

    STAGES OF TEAM DEVELOPMENT Team Building is a planned change intervention that focuses on the dynamics of a team's functioning. The purpose of team building is to improve the team's capacity to adapt, allow members to function at their most productive resourceful levels, and to achieve the teams goals.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work