Chap 2.6: Motivation strategies

Front

MOTIVATION STRATEGIES include:

Back

P.I.C.S.S
1 - Performance-related pay
2 - Investment in training
3 - Career advancement
4 - Support
5 - Sanction

Front

Define PERFORMANCE RELATED PAY

Back

Performance-related pay is a financial reward that employees receive for reaching or exceeding a set business goal.

Front

Effects of PERFORMANCE-RELATED PAY on short- and long-term employee motivation

Back

• a/ Short-term motivation:

  • - Financial benefits: Pay increases, bonuses, commissions.

  • - Immediate and tangible rewards.

  • - Most effective when rewards are consistent.
    

• b/ Long-term motivation:

  • - Share plans: Value may fluctuate, but generally increases over time.

  • - Profit sharing: Requires employees to consider long-term business success.

  • - Gainsharing: Rewards for productivity improvements may take time to materialize.

Front

Advantages of PERFORMANCE RELATED PAY

Back

• 1/ Performance-Linked Financial Rewards:

  • Direct financial incentives tied to improved employee performance.

• 2/ Expected Outcomes:

  • Increased productivity levels.

  • Enhanced employee engagement and commitment.

• 3/ Reward Characteristics:

  • Generally predictable and easily calculable.

  • Contingent on demonstrable performance improvements.

Front

Disadvantages of PERFORMANCE RELATED PAY

Back

• 1/ Equity Concerns: Similar work, differing performance = potential jealousy, conflict, and low morale.

• 2/ Financial Constraints: Performance-related pay may be unaffordable for the business.

• 3/ Reward Sustainability: Stagnant or decreasing reward value leads to employee dissatisfaction.

• 4/ Base Pay Adequacy: Insufficient base pay results in low earnings, high staff turnover.

• 5/ Individual Motivation: Pay is not a universal motivator for all employees.

Front

Define CAREER ADVANCEMENT

Back

Career advancement is the upwards progression of an employee’s job position. This can be achieved through promoting employees or giving them more challenging tasks.

Front

Effects of CAREER ADVANCEMENT on short- and long-term employee motivation

Back

• a/ Increased short-term motivation: Encourages daily performance

• b/ Increased long-term motivation: Reduces employee turnover

Front

Advantages of CAREER ADVANCEMENT

Back

• 1/ Employee Retention: Promotes loyalty, reducing turnover.

• 2/ Performance Reward & Future Incentive: Recognizes past work and motivates future contributions.

• 3/ Increased Productivity & Engagement: Empowers employees, boosting performance and commitment.

• 4/ Employee Satisfaction: Fulfills desires for achievement and responsibility.

Front

Disadvantages of CAREER ADVANCEMENT

Back

• 1/ Purposeful Promotion: Promotion positions must serve a defined organizational need.

• 2/ Competition and Conflict: Limited promotion opportunities can lead to employee competition and rivalry.

• 3/ Resentment: Promotions can generate resentment among overlooked employees.

• 4/ Incompetence Risk: Employees may be promoted beyond their skill level, leading to poor performance.

Front

Define INVESTMENT IN TRAINING

Back

Investment in training refers to the allocation of resources to improve employee skills and knowledge