(e) Briefly provide five reasons to the management of Bailey’s why financial rewards could
(e) Briefly provide five reasons to the management of Bailey’s why financial rewards could be considered to improve motivation. (5 marks)
(e) There are issues at Bailey’s as a consequence of poor pay. Although non-financial motivation has an important role to play in encouraging commitment, the fact remains that financial rewards act as a strong motivating factor, especially in what has been a low pay business. Financial rewards are all encompassing and apply to all employees at all levels, are universally applicable, able to satisfy all types of need and simple to apply and understand. At Bailey’s, financial rewards have a greater effect because they can provide recognition and prestige if pay is improved, are seen as the most important hygiene factor(especially in a business with a history of low pay and low morale) and are a measure of achievement against goals, especially if some form. of bonus or performance related pay is introduced by the new management at Bailey’s. In addition, financial rewards are a basis for satisfaction and are often used as a form. of professional or social comparison outside the organisation.
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