Motivating employees
- Cambridge IGCSE Business Studies
- Theme 2: People in Business
Speaker notes: Introduce the topic and its relevance to the syllabus.
Learning Objectives
- Understand the importance of a well-motivated workforce
- Examine methods of motivation
- Apply motivational theories to business scenarios
Speaker notes: Outline what students will learn during the lesson.
Starter Question
- Why do you think some employees are more productive than others?
Speaker notes: Encourage students to think about the factors that influence employee motivation.
The Importance of Motivation
- Increases labour productivity
- Reduces absenteeism and labour turnover
- Helps meet human needs (Maslow’s hierarchy)
Speaker notes: Explain how motivation benefits both employees and employers. Ask students for examples of motivated and unmotivated workplaces.
Motivational Theories
- Taylor’s Scientific Management: Efficiency and rewards
- Herzberg’s Two-Factor Theory: Satisfaction and dissatisfaction
Speaker notes: Introduce key motivational theories and discuss their relevance in modern businesses. Ask students which theory they think is more effective.
Financial Rewards
- Wages, salaries, bonuses, commission, profit sharing
Speaker notes: Explain how financial incentives can motivate employees. Discuss the pros and cons of each method.
Non-Financial Methods
- Job enrichment, job rotation, teamworking, training, promotion opportunities
Speaker notes: Highlight the importance of non-financial rewards in motivating employees. Ask students to share their experiences with these methods.
Choosing Motivation Methods
- Consider employee needs and preferences
- Align with business objectives
- Balance financial and non-financial rewards
Diagram explained
This chart shows total revenue, total costs and fixed costs. The break-even point is where total revenue equals total costs. Below this point, the business makes a loss, and above it, the business makes a profit. The gap between actual output and break-even output is the margin of safety.
- Identify the break-even point where total revenue meets total costs.
- Note the margin of safety, the difference between actual output and break-even output.
- Understand that above the break-even point, the business makes a profit, and below it, a loss.
Speaker notes: Discuss how businesses can tailor motivation methods to their specific context. Encourage students to think critically about the best approaches.
Worked Example
- Scenario: A company wants to motivate its sales team
- Option 1: Offer a bonus for meeting sales targets
- Option 2: Provide training and promotion opportunities
- Recommendation: Choose the method that aligns with the company’s goals and employee preferences
Speaker notes: Guide students through a scenario to apply what they have learned about motivation methods.
Common Mistakes and Exam Tips
- Avoid assuming all employees are motivated by the same things
- Remember to consider both financial and non-financial rewards
- Always relate your answers to the business context in exam questions
Speaker notes: Highlight common pitfalls and provide tips for exam success.
Key Terms
- Motivation, Labour productivity, Absenteeism, Labour turnover, Maslow’s hierarchy, Taylor’s Scientific Management, Herzberg’s Two-Factor Theory, Financial rewards, Non-financial rewards
Speaker notes: Ensure students are familiar with these key terms and their meanings.
Plenary Questions
- What are the benefits of a well-motivated workforce?
- How can financial and non-financial rewards be combined effectively?
- Which motivational theory do you think is most relevant today?
Speaker notes: Encourage students to reflect on what they have learned and discuss their thoughts.
Summary
- A motivated workforce is crucial for business success
- Use a mix of financial and non-financial rewards to motivate employees
- Always consider the specific needs and context of your business
Speaker notes: Summarise the key points of the lesson and reinforce learning.