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Non-Financial Methods of Motivation

OCR F292: Business Functions

Simon Hanks

on 23 January 2013

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Transcript of Non-Financial Methods of Motivation

How can an organisation assess how motivated their employees are? In this session you will learn about non-financial methods the organisations use to motivate their employees Personnel Performance Indicators

Methods of assessing how content a workforce is. Absenteeism
Labour Turnover
Productivity of labour Apart from money, list as many ways an organisation could motivate their employees Job Enrichment
Cell Production
Job Rotation
Empowerment Job Enrichment

Offering a range of tasks to an employee in order to add interest to the job. Job Rotation

Widening the activities of a worker by switching him or her around a number of work tasks. Job Rotation benefits:
Relieve boredom
Multi-skilled workforce
Absence can be covered easily Job Enrichment is based on Herzberg's work, who suggests it should contain:
Range of tasks and challenges at different ability levels, some to stretch their current abilities.
A complete task, making it meaningful not just repetitive.
Direct feedback to inform employee how they are doing. Job Enlargement

Increasing the number of tasks and possibly responsibilities involved in a job. Not necessarily a motivating factor in itself, it can have the opposite effect. Charles Handy coined the phrase Teamworking in 1990.

It involved:

Groups of multi-skilled workers.
Common objectives
Kaizen (continuous improvement)

Increases employee accountability and pride in own work. Empowerment

Delegation of a task and the decision-making process about how the task is done.

(see Herzberg and Mayo) Discuss the methods of non-financial motivation you have seen in work experience and school.
How successful have they been?
What could have been improved? Team Working Study the Times100 case study on Enterprise Rent-A-Car.

How effective are their strategies for motivation?

http://businesscasestudies.co.uk/enterprise-rent-a-car/motivation-in-action/introduction.html Cell production

Cell production has the flow production line split into a number of self-contained units. Each team or ‘cell’ is responsible for a significant part of the finished article and, rather than each person only carrying out only one very specific task, team members are skilled at a number of roles, so it provides a means for job rotation

ref: http://tutor2u.net/business/production/cell-production.html Non-financial methods of Motivation Absenteeism Labour Turnover Labour Productivity Absenteeism measures the rate of deliberate staff absence. Usually excludes sick days. Causes of absenteeism:
poor welfare
poor working conditions What possible solutions could be used by an organisation to lower absenteeism? Labour turnover is a measurement of the rate at which employees leave an organisation. Causes of high labour turnover:
low levels of pay
low morale
ineffective leadership
other opportunities elsewhere Effects of high labour turnover:
costs of recruiting replacements
lower productivity of new staff
team building issues due to new staff Is high labour turnover always a bad thing? Labour Productivity is a measure of output per worker. It can be used as an indication of the efficiency of an organisation. High Productivity = Low Labour Cost per Unit Rising productivity can lead to job losses (if demand doesn't rise to meet productivity) Case Study, page 239

Motivation Methods

Qs 1-4
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