A level Business Revision - Financial Motivators

In this revision tutorial for students studying A level Business we examine some of the different methods of financial rewarding and motivating employees. Financial methods of motivating employees is a topic on the A level Business syllabus for Edexcel, AQA, OCR (known as monetary and non-monetary rewards on the OCR syllabus) and Cambridge International exam boards.
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DISCLAIMER: The methods of financial motivation students are required to know about can vary slightly between each exam board so be sure to research which methods you need to understand using the specification of the qualification you are studying.

[@FanyusAnonymous]

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[@jamie._.bullen]

Got my exam on next monday, thankful for how helpful these videos are and how much they have made me understand most topics!

[@preccious.a]

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[@samgadsdon1524]

Your videos are really helping my business revision so thank you!!

[@TakingTheBiz]

Thank you so much for taking the time to leave a comment. I'm glad you are finding the videos helpful - good luck with revision!

[@ChsonlineOrgUkinternetschool]

Good video

[@Adam-hf7hn]

financial motivation ultimately requires a firm dishing out money to employees (who worked for it and met criteria). this means that a firm which is heavily invested in financial motivation will have typically high labour costs relative to a rival who doesn't use such money value motivators. this can be particularly troubling for a firm if they use piece rate/commission etc as their costs are potentially unpredictable. I would be grateful if you could tell me if this is right. ?

[@TakingTheBiz]

Yes - but it might be a little more nuanced than that. For example, a firm using commission or piece rates may save money by paying lower basic wages or salaries. If it is effective, it may also reduce labour turnover, lowering recruitment costs. In addition, non - financial motivation may still have financial costs attached. Job enrichment or rotation for example might require greater investment in training. Furthermore, if labour costs of firms using financial motivators are higher, this might be offset by greater rates of productivity, offsetting some of the bonuses paid out. In essence, financial motivational techniques may increase labour costs, but non-financial methods may also increase costs and financial motivation may create benefits elsewhere in the organisation Hope this helps

[@Adam-hf7hn]

TakingTheBiz yes. I get you ! Financial motivation whilst does involve costs directly paid to employee it’s not to say non financial motivators doesn’t mean added costs. Perhaps even more than momentary motivators as non financial motivation means a lot of investment and training.

[@raiyanzubair1200]

sir can you explain on MUFC uses financial and non financial method to motivate its employees and reduce labour turnover evaluate which of these methods is likely to be the most effective for MUFC sir please explain my question ?

[@TakingTheBiz]

Raiyan - I'm guessing MUFC refers to Manchester United (terrible team)???!!!??? If so, financial motivators would include competitive salaries (e.g. Alexis Sanchez), win bonuses, goal bonuses, clean sheet bonuses, competition bonuses (e.g. for winning a trophy), percentages of revenue made from image rights etc. Non-financial might include things such as empowerment (allowing players to make more decisions, such as tactical decisions or decisions relating to training, travel, nutrition etc) or maybe even the career progression opportunities (e.g Giggs became assistant manager, Carrick became first team coach). You could link it to Elton Mayo through references to teamworking and good dressing room spirit. When evaluating which is best, it depends which motivational theorist you believe. Taylor would say financial, Herzberg would say non-financial, Maslow would say both, depending on the stage of the hierarchy someone was at. I was also wondering whether I could ask a favour in return - could you post this exact same question again in the comments of the video I'm releasing at 6pm (UK) on Monday?

[@raiyanzubair1200]

@@TakingTheBiz sir which vedio i will post my question

[@TakingTheBiz]

@@raiyanzubair1200 the one i am releasing in 2 days time thanks for your help

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