10/10 Key term tests
- Motivation - the will to work due to the enjoyment of the work itself
- Intrinsic motivation - Motivation that comes from within the individual emnployee
- Extrinsic motivituion - Motivation that comes from outside the employee, motivated by others through incentives and rewards
- Retaining staff - keeping exhisting staff within the business which cuts down the costs of recruitment selection and training which all impact on PROFIT
- Autocratic - Managers who believe in taking all the decisions and just passing instructions to workers.
- Democratic - Managers who involve workers and less senior managers and supervisors in decision making.
- Hygiene factors - People work for different reasons, some to ensure that they have secured their basic needs of shelter, food, warmth and security where others may be motivated by belonging to something bigger and better than themselves. Others may be motivated by their self esteem and as their career grows may be excited about working for nothing for the benefit of others. These factors are known as hygiene factors
- Induction and training - Initial and ongoing training that familiarise new recruits with the systems of a business. Ongoing training will develop essential and desirable skills needed to be more effective at their job.
- Monetary (financial) motivation - Motivation that is generated through being paid more money for working harder e.g. profit share, bonus, incentives, piece rate.
- Non financial motivation - Methods of motivating people which do not involve cash or financial incentives e.g. free uniform, discounted shopping, subsidised transport, childcare, additional holidays, meals on duty, private medical cover,
In the news: Egg banking and their 10:10 approach to motivation. Egg Banking plc is the largest internet - only bank in world employing 2500 people in three UK locations. The bank makes its money by encouraging savers to deposit money in one of its internet accounts and then issuing loans to customers. Egg is owned by the pensions and financial services giant Prudential. or the Pru as it is often called. Banking is a very competitive business with customers willing to deal with foreign banks to get the best deals. about half of Eggs employees deal with customers. If customers have a query they either email or call one of the contact centres to have their questions answered. Another quarter of the staff are involved in IT work within the business. It is very important that the IT is functioning properly all the time for an internet bank. Egg also has to ensure that criminals do not succeed in drawing money out of their customers accounts. The remaining staff are all finance specialists.
Egg realises that demotivated staff are not loyal and the only way to keep customers happy is to keep the staff motivated. 10:10 is how Egg describes the way in which employees and the company all benefit from working together. Each employee and Egg itself aim to achieve 10/10. By enabling its employees to be motivated so they can reach their personal goals, Egg reaps the rewards of increased profits. The secret is that the managers need to make sure that they know what makes their employees tick. Like in school people learn in different ways. Employees are similar and managers need to work out how people prefer to work, train and learn so they can personalise their development.
Motivation is about getting people to work effectively because they want to. To help motivate people Egg makes sure that employees operate in an environment where they are able to:
- plan for themselves
- work well with managers
- enjoy their work
- be rewarded for their efforts
- feel that they have the power to create change
Egg refers to this as the power of 'unleashing the power of people'
Hygiene Factors & renumeration
- The internet is bec
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Group activity Pu
Typical exam questions on motivation
- What type of bank is Egg
- What type of work takes place at Egg's contact centres?
- What is meant my employees motivation?
- What is meant by hygiene factors?
- What is phising?
- How can regular appraisals raise an employee's motivation?
- Give an example of how the style of management can motivate an employee?
- Give two reasons why businesses want to keep employees from leaving.
- Give two reasons why people can work better in a team than individually.
- Explain how Egg's 10:10 system works
Nine mark question