Page 75 - Cambridge IGCSE Business Studies

ting w
o
5: Business objectives and stakeholder objectivess
6: Motiva
r
er
k
Questionnaire: Factors that motivate people at work
On a scale of 1 to 5, with 5 being very important
and 1 being not important, how would the following Results of survey of five people
factors increase your motivation at work?
A B C D E
Increased pay
Chance of promotion

Recognition by managers for a job well done
Option to work from home
Training to help improve job prospects

Longer holidays, better pensions, staff discounts
Improved work environment – cleaner and safer
Option to work flexible hours

Bonus based on targets
Increased variety of tasks

Benefits of a well-motivated workforce
KEY TERMS 73
A well-motivated workforce will help a business to achieve its objectives. Well-

Labour productivity: a measure motivated workers will want to work efficiently and produce quality goods and
of the efficiency of workers by services for customers. Motivated workers will increase labour productivity and this

calculating the output per worker.
will help a business to reduce average costs and increase competitiveness. Workers
Absenteeism: workers’ non- who are motivated will enjoy going to work, are less likely to take days off – ensuring

attendance at work without a low rate of absenteeism – or to leave the business. A lower labour turnover will
good reason.
reduce recruitment costs. A well-motivated workforce is easier to manage and will
Labour turnover: the rate at

which workers leave a business. want to work with management to help improve the business. Th e main benefits to a
business of having a well-motivated workforce are shown in Fig 6.2.

Improved
productivity

Recruitment costs: see
Chapter 8, page 107.
More Low rate of
competitive absenteeism
Benefits of
having a
well‐motivated
workforce

Better Low rate of
quality goods labour
and services turnover

Figure 6.2 The benefits to business of a well-motivated workforce.