Section A: Key terms and recall
Define the term 'motivation' in the context of business. [2 marks]
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Motivation is the drive or enthusiasm that makes employees want to perform their jobs well and achieve business objectives. [2 marks]
List two benefits of having a well-motivated workforce. [2 marks]
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Two benefits are: 1. Increased labour productivity 2. Reduced absenteeism and labour turnover [2 marks]
Briefly explain Maslow's hierarchy of needs. [2 marks]
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Maslow's hierarchy of needs is a theory that suggests people have different levels of needs, ranging from basic physical needs to self-fulfilment needs, and that these needs motivate behaviour. [2 marks]
Identify two financial methods of motivation. [2 marks]
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Two financial methods of motivation are: 1. Bonuses 2. Profit sharing [2 marks]
Identify two non-financial methods of motivation. [2 marks]
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Two non-financial methods of motivation are: 1. Job enrichment 2. Training [2 marks]
Section B: Applying your knowledge
A company wants to reduce the number of employees leaving. Suggest one financial and one non-financial method of motivation they could use. [2 marks]
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One financial method is giving bonuses. One non-financial method is offering training opportunities. [2 marks]
A business wants to increase productivity. Suggest one method of motivation they could use and explain why. [3 marks]
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They could use job enrichment. This method makes jobs more interesting and challenging, which can increase productivity. [3 marks]
A company wants to motivate employees who are at the lower levels of Maslow's hierarchy. Suggest one method of motivation and explain why. [3 marks]
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They could provide a salary increase. This method addresses basic physical needs, such as food and shelter, which are at the lower levels of Maslow's hierarchy. [3 marks]
A business wants to motivate employees who are at the higher levels of Maslow's hierarchy. Suggest one method of motivation and explain why. [3 marks]
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They could offer opportunities for promotion. This method addresses self-fulfilment needs, such as personal growth and achievement, which are at the higher levels of Maslow's hierarchy. [3 marks]
A company wants to motivate employees who are working in teams. Suggest one method of motivation and explain why. [3 marks]
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They could use teamworking. This method can improve communication and collaboration, which can motivate employees to work together more effectively. [3 marks]
Section C: Explain and analyse
Explain why a well-motivated workforce is important for a business. [4 marks]
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A well-motivated workforce is important for a business because it can: 1. Increase labour productivity, which can lead to higher profits 2. Reduce absenteeism and labour turnover, which can save the business money on recruitment and training 3. Improve the quality of products or services, which can enhance the business's reputation 4. Encourage innovation and creativity, which can help the business to stay competitive [4 marks]
Compare and contrast two different methods of motivation. [6 marks]
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One method of motivation is financial rewards, such as bonuses or profit sharing. These methods can provide employees with extra money, which can motivate them to work harder. However, they can also be expensive for the business and may not always be sustainable. Another method of motivation is non-financial rewards, such as job enrichment or training. These methods can make jobs more interesting and challenging, which can motivate employees to perform better. However, they may not always be as effective as financial rewards in motivating employees, especially those who are at the lower levels of Maslow's hierarchy. [6 marks]
Analyse the factors that a business should consider when choosing a method of motivation. [6 marks]
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When choosing a method of motivation, a business should consider: 1. The needs of the employees, such as their level in Maslow's hierarchy 2. The budget of the business, such as whether it can afford financial rewards 3. The culture of the business, such as whether it values teamworking or individual performance 4. The goals of the business, such as whether it wants to increase productivity or reduce absenteeism 5. The legal and ethical considerations, such as whether the method of motivation is fair and compliant with labour laws [6 marks]
Section D: Challenge
A business is experiencing high levels of absenteeism and labour turnover. Suggest and justify two methods of motivation that the business could use to address these issues. [6 marks]
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One method of motivation that the business could use is offering flexible working arrangements. This method can help employees to balance their work and personal lives, which can reduce stress and improve job satisfaction. It can also make the business more attractive to potential employees, which can help to reduce labour turnover. Another method of motivation that the business could use is providing career development opportunities. This method can help employees to see a future with the business, which can motivate them to stay and perform well. It can also help the business to retain talented employees, which can save money on recruitment and training. [6 marks]