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Unit 16 Human Resource Management in Business - P3 outline how an organisation motivate its employees

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P3 outline how an organisation motivate its employees. BTEC Business Level 3 Extended Diploma. Please leave a review if you found this useful, thank you

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Sadia Hussain Unit 16



Motivation and Rewards System

Introduction
What is motivation?
A motivation is a person’s energy that drives them to act as they do to achieve something; it
is what keeps them doing what they need to do to succeed in something, for example, one
would work hard cause they are motivated by success and the career that they want, so
they will put all the effort that they can to achieve what they desire. Anyone that works
hard is motivated by something, something that will be the result of their hard work.
Why motivation is important
Motivation is important because it keeps people going, For example employees that are
motivated are more likely to perform better because they are motivated by something that
they want to achieve, so they work harder to their full potential to achieve what they desire,
which is why businesses try and keep their employees motivated by offering them rewards,
because if the employees are happy and work harder this leads to happier customers and
overall success for the business. Employees that are motivated will also work more in a
short given time, this means businesses need fewer employees this will help reduce labour
costs. Motivated employees will also be more likely to stay loyal to the company, they will
be more likely to stay long term which will benefit the business as they will not need to
recruit new employees all the time, and the employees that stay with the business longer
will have better knowledge and experience which will help the overall performance of the
business.
Motivated employees will also be less likely to make mistakes and engage in conflict, due to
high concentration because they are so eager to achieve what they want to. If the
employees are not motivated, this will result in an opposite effect, they will not perform
very well which will affect the overall businesses performance because they will not work
hard to make the customers happy, and without happy customers that business will result in
a loss.
How do managers/organisations motivate their workers? - Rewards system

Businesses motivate their employees by using financial and non - financial rewards.
Financial rewards are rewards that the employee earns for a good performance. ‘’Employees
receive financial payment from employers in the form of a salary or commission. This
payment is expected as a result of the work the individual was hired to complete.’’

Financial rewards - Pay

One of the financial rewards is pay. These are the wages and salaries that the employees get
and the reason most people work so they are able to cover all the bills and expenses that
they have and their overall living costs. Some businesses use pay to motivate the
employees, for example, they get paid for each hour they work this motivated them to work
more hours. Businesses also raise the employees pay each year which motivates them to
continue working for the company and continue performing well because they know that

1

Connected book
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Catherine Richards, Rob Dransfield BTEC Level 3 National Business Student Book 2
Publisher: september 2010 ISBN: 9781846905629 Edition: Unknown

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