Page 85 - Cambridge IGCSE Business Studies
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                                                                    5: Business objectives and stakeholder objectivess
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                                                                                                6: Motiva
                1  Identify the pay systems the businesses are using to recruit workers for these two jobs.
                2  How much will the receptionist earn in a week if they work 40 hours?
                3  Using Advert A, identify and explain the meaning of the term ‘fringe benefits’.
                4  Why do you think the business in Advert A is offering fringe benefits, but the business in Advert B is not?


                5  Choose one fringe benefit you think the company can offer to attract better quality applications for the receptionist
                   post? Explain your choice.




                                               Non-financial rewards and methods
                                               If Maslow and Herzberg are correct about money not being enough to motivate
                                               workers, then managers need to consider non-financial methods of motivation.


                                               The methods listed in Figure 6.6 are explained below.
                 KEY TERMS
                 Job rotation:  increasing variety   Job rotation, enlargement and enrichment
                 in the workplace by allowing   ■  Job rotation – instead of doing the same task, workers switch from one job to
                 workers to switch from one task to
                                                  another. This makes the work more interesting and helps prevent boredom.
                 another.
                                                  Workers become multi-skilled, which helps create a more flexible workforce.
                 Job enlargement:  increasing or
                 widening tasks to increase variety   ■  Job enlargement – workers are given a greater variety of similar-level tasks
                 for workers.                     to do. Their jobs become more interesting and, as with job rotation, this
                                                  reduces boredom.
                                               ■  Job enrichment – this method was developed from Herzberg’s research. Work is
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                 KEY TERMS                        organised so that workers are able to use more of their skills and abilities. They


                                                  often become more involved in decisions affecting their job. Workers feel more
                 Job enrichment:  organising
                                                  valued by their employer and this increases their job satisfaction, eff iciency and
                 work so that workers are
                                                  motivation.
                 encouraged to use their full
                 abilities.

                                               Increasing the variety or difficulty of tasks workers do, using any of the above

                 Job satisfaction:  how happy

                                               methods, is known as job redesign. The aim of job redesign is to make the work
                 and content a person is with
                 their job.                    more interesting and more challenging for workers. It can also help them to learn
                                               new skills which may help their chances of promotion.
                ACTIVITY 6.6
                Ever since the management of Company X increased automation and introduced new technology into the workplace,
                production line workers have not been happy. Many have left and those that remain are less productive than they used
                to be and absenteeism is much higher. Many of the workers no longer use their skills. The work is boring and does not
                have the same level of interest or challenge for workers.
                   Company X has appointed a new operations manager, Eduardo. He has been told by the directors that he ‘must improve
                productivity and reduce absenteeism and recruitment costs’. Eduardo thinks that job redesign is the solution to these
                problems.

                1  Identify two factors that may have caused motivation problems at Company X.
                2  Identify and explain two benefits to Company X of improving worker motivation.
                3  Do you think that Eduardo is right in thinking job redesign is the solution to the problems at Company X? Justify
                   your answer.
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