3.5 Motivation strategies - financial

Question 1

Performance related pay

Answer 1

An employer can provide motivation with direct payments to employees, such as pay increases, bonuses and commissions.

Question 2

Award

Answer 2

Is a legally binding agreement that sets out minimum wages and conditions for a group of employees in a given industry

Question 3

Pay increase

Answer 3

It is open to the employer to offer pay rises to any employee who works hard, or who makes a significant contribution to the achievement of business objectives.

Question 4

Bonus

Answer 4

Is a one-off payment given to a particular employee or group of employees as a reward for meeting particular targets, or for some other special effort.

Question 5

Commission

Answer 5

Is an amount paid for accomplishing a sale, paid to the salesperson who accomplished the sale, and usually calculated as a fixed percentage of the sale price.

Question 6

Share plans

Answer 6

A registered company can offer shares in the ownership of the business to it’s employees. If the business is successful, the profit is paid as a dividend to its shareholders, so the employees will gain additional income.

Question 7

Profit sharing

Answer 7

A company can offer a percentage of the profits to its employees as an incentive to work hard and raise the level of those profits.

Question 8

Gainsharing

Answer 8

Is a method of rewarding employees for making suggestions that improve productivity in a business. The savings achieved from these improvements are distributed to the employees

Question 9

Productivity

Answer 9

Is a measure of efficiency - the amount of output compared with the amount of input in production