1.4.4 Motivation - Financial incentives

Question 1

4 financial incentives

Answer 1

• commission
  -piecework
• Performance related pay
• profit sharing/bonus scheme

Question 2

Commission

pros - 2

cons - 1

Answer 2

A bonus paid based on achieving a sales target

pros :
- Incentive to increase sales revenue for business
- appropriate for sales jobs

cons
- Focus taken away from other areas of the job e.g customer service, explaining product properly. - too focused on just selling

Question 3

Piecework

pros - 2

cons - 1

Answer 3

Payment based on the number of units of output produced

pros :
- Incentive to increase output
- Appropriate for production jobs

cons :
may ignore factors such as quality