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Business Management

Motivation and payment methods

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What is motivation?

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motivation, drive, ambition, hunger, get up and go, etc

Companies can motivate employees to do a better job than they otherwise would. Incentives that can be offered to staff include increased pay or improved working conditions. Motivational theories suggest ways to encourage employees to work harder.

Motivation is about the ways a business can encourage staff to give their best. Motivated staff care about the success of the business and work better. A motivated workforce results in:

  • Increased output caused by extra effort from workers.
  • Improved quality as staff take a greater pride in their work.
  • A higher level of staff retention. Workers are keen to stay with the firm and also reluctant to take unnecessary days off work.

Managers can influence employee motivation in a variety of ways:

  • Monetary factors: some staff work harder if offered higher pay.
  • Non-monetary factors: other staff respond to incentives that have nothing to do with pay, eg improved working conditions or the chance to win promotion.
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