2.4.2 Methods of motivation (3)
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1.
Question 3: Describe how fringe benefits can be used as a method of financial motivation for employees. Provide three specific examples of fringe benefits and explain how each could motivate employees.
Answer:
Answer: Fringe benefits are non-wage payments offered to employees as part of their compensation package. They can be a valuable tool for financial motivation, as they provide additional financial or non-financial rewards that can improve employee morale and retention. Here are three examples:
| Benefit | How it Motivates Employees |
| Company Pension Scheme: | Provides financial security in retirement. Motivates employees to stay with the company long-term and contribute to its success, knowing they will benefit from the scheme. |
| Health Insurance: | Reduces employees' healthcare costs. Motivates employees by demonstrating the company's concern for their well-being and providing a valuable benefit. This can lead to increased loyalty and productivity. |
| Employee Discount: | Allows employees to purchase goods or services from the company at a reduced price. Motivates employees by providing a tangible financial benefit and fostering a sense of connection to the business. |
Fringe benefits can be a cost-effective way to motivate employees and improve employee satisfaction. The key is to offer benefits that are valued by employees and that align with the company's overall goals.
2.
Question 1: Explain how job enrichment can motivate employees. Provide examples of how job enrichment can be implemented in a real-world business.
Job enrichment involves increasing the scope and responsibility of a job, giving employees more autonomy and control over their work. This can be highly motivating because it provides a sense of achievement, purpose, and skill development. Employees feel valued and trusted when given more responsibility.
How it motivates:
- Increased responsibility: Employees feel more important and valued.
- Greater autonomy: Allows employees to make decisions and take ownership.
- Skill development: Provides opportunities to learn new skills and use existing ones.
- Sense of achievement: Completing challenging tasks leads to a feeling of accomplishment.
Real-world example: A supermarket might enrich the job of a checkout assistant by allowing them to manage stock levels, train new colleagues, and handle customer complaints. This goes beyond simply scanning items and provides a more varied and challenging role.
3.
Question 2: Describe the advantages and disadvantages of using 'Employee of the Month' schemes as a method of motivation. Consider both the impact on individual employees and the wider impact on the workforce.
Advantages of 'Employee of the Month' schemes:
- Increased morale: Recognizing employees boosts morale and creates a positive work environment.
- Performance improvement: Provides a clear goal and encourages employees to strive for excellence.
- Positive role modelling: The 'Employee of the Month' can serve as a role model for others.
- Simple to implement: Relatively easy and inexpensive to set up.
Disadvantages of 'Employee of the Month' schemes:
- Can create demotivation amongst others: Employees who are not chosen may feel discouraged and undervalued.
- Subjectivity: The selection process can be perceived as unfair or biased.
- Short-term focus: May encourage employees to focus on short-term gains rather than long-term goals.
- Potential for competition: Can foster unhealthy competition between employees.
Wider impact on the workforce: The scheme's effectiveness depends on how it's implemented. If not carefully managed, it can create a divisive atmosphere. Transparency in the selection criteria is crucial to avoid resentment.