6

Motivating workers
Revision answers
1 They are more productive, that is, they produce more output and the quality is
better.
2 i) B
ii) A
iii) C
3 i) Money
ii) Security
iii) Job satisfaction
iv) Esteem needs
v) Social needs
4 i) Financial rewards
ii) Non-financial rewards
iii) Introducing ways to give job satisfaction
5 Joe is paid a salary – a set amount per month – and Kiran is paid a wage as it is
an amount per hour and overtime is paid.
6 Sarah is paid by time rate, as the payment is for a specific amount of time, and
Selina is paid piece-rate as her pay depends on how many components she
produces.
7 Advantage: it is easy to calculate an employee’s pay.
Disadvantage: good and bad workers get paid the same; there is no additional
reward to an employee for working harder.
8 Advantage: it is an incentive for the workers to work harder.
Disadvantage: the workers may concentrate on producing a lot of products and
not worry about the quality of the products.
9 Examples include: discounts on the company’s products; company vehicle; free
accommodation; expense accounts; share options; free trips abroad; health care;
subsidised meals; housing; children’s education; ‘prizes’ for good performance
(such as paid holiday).
10 a) Job enlargement: to give workers a greater variety of tasks, for example,
arranging displays, serving customers.
b) Job enrichment: to add more responsibility to the job, for example, making
up the menu, ordering the ingredients, being responsible for hiring new
staff.
c) Job rotation: to move between jobs to give workers greater variety.

Answers to activities
Activity 6.1
a) A car production worker, baker and possibly a waiter could all have their output
measured.
b) A shop assistant would give difficulties as some consumers may not buy
any goods; this could be true for a waiter too! Some waiters may be paid
commission based on sales, though.
For a teacher, police officer and soldier it is very difficult to measure what they
produce. The difficulties arise when they provide a service and not a measurable
output.

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 6 Motivating workers

c) Alternative ways of rewarding efficient employees will have to be found, for

example, sharing bonuses or sharing profits.
d) It does present problems for modern economies because, as economies develop,
more and more employees work in the service sector.

Activity 6.2
Miguel: physical needs and security needs.
Pierre: physical needs, security needs and social needs.
Anya: physical needs, security needs, social needs, esteem needs and self-
actualisation.

Activity 6.3
a) The workers’ efforts are not recognised; no opportunity for promotion; no
opportunity to plan their own work.
b) Introduce ways to allow the workers to plan their own work; contribute to
the decision making; have an employee of the month; reward for hard work;
introduce opportunities for promotion.

Activity 6.4
a) Car production worker: probably piece rate because where the output is
measurable it is easier to implement pay related to the output produced; non-
monetary reward would be discounts on new cars purchased.
b) Hotel receptionist would probably be paid a salary, it would be difficult to pay
by the number of bookings taken. They could be given a share of the profits
or some scheme in the hotel for sharing out money when they have had a
successful year. Free accommodation at other hotels if they are in a chain,
discounts on meals are the possible non-monetary benefits.
c) Teacher: paid a salary as output is not really measurable. Non-monetary rewards
depend on the country the school is in; they may include free accommodation,
free education at the school for their own children, pension, health care paid for,
limited free trips home if working at a foreign school.
d) Shop assistant: would probably be paid a salary, but pay could be related to
the number of sales made. Non-monetary rewards would most likely be staff
discounts on purchases.
e) Managing Director: paid a salary, profit-related pay, bonus if a good year. Non-
monetary rewards include share options, free health care, company vehicle,
generous expense account.
f) The taxi driver would just get paid by the number of journeys made, also
possibly use of the taxi for their own use if the car belongs to a taxi firm.
There needs to be explanation of the above: discussion of whether output can be
measured, seniority of the job, whether non-monetary rewards are expected in
certain jobs.

Activity 6.5
Suggestions could include: job enlargement for Duncan; job rotation and/or job
enlargement for Sita; job rotation for Tim. Students should explain the reason for
each of their choices.

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 6 Motivating workers

Sample answers to exam-style

questions – Paper 1
1 a) This is where the workers are paid depending on the quantity of products
made.
b) Examples:
i) Discounts on the furniture the company produces
ii) Health care
iii) Subsidised meals
iv) ‘Prizes’ for good performance.
c) Examples:
i) Got another job that pays piece rate so can potentially earn more.
ii) Finds the job boring, found a more interesting job making furniture.
iii) Doesn’t feel motivated at work: finds another business that makes
furniture which makes the employee feel appreciated.
d) Examples:
i) Increased wage rates, as increase in pay will make the worker feel
appreciated, especially if has been making furniture for Joe for many years.
ii) Change to piece rate from time rate, as the workers will be more
motivated as the more furniture they make the more they get paid.
iii) Job enlargement: add jobs to the work so that the job becomes more
interesting; perhaps carry out more than one process in making the
furniture.
e) Yes, because it will give workers an incentive to work harder and will be
motivating in order to reduce the labour turnover.
No, because it may lead to lower quality furniture being made as workers are
only concerned with quantity and not quality.
Overall conclusion/judgement needed.
Sample answers to Question 2 on the Teacher’s CD-ROM.

Cambridge IGCSE Business Studies 4th edition © Hodder & Stoughton Ltd 2013 3