2.56 Motivation

Motivation is defined as: the reasons for acting or behaving in a certain way

If employees are motivated:

  • Staff want to do well > increased productivity > labour costs down > can offer competitive prices > increase sales > more revenue
  • Retain staff > recruitment costs down
  • Offer better service > repeat customers
  • Good reputation > attract high quality job applicants

There are two ways to motivate employees:

  1. Financialremuneration (salary / wages), bonus (extra money when a target is met), commission (extra money received for each sale made), promotion (more money received for new job), fringe benefits (e.g. free gym membership, private health insurance)
  2. Non-financial job rotation (employees rotate between different jobs), job enrichment (employees are given more responsibility and jobs are made more challenging), autonomy (employees are allowed to manage themselves and make their own decisions)

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