6 Motivation and Engagement in practice 47

Question 1

What are the 4 types of financial methods of motivation?

Answer 1

Piece rate
Performance-related pay
Comisión
Salary scheme

Question 2

What is Piece Rate?

Answer 2

Piece rate mens working in return for payment per unit produced. It is used in small-scale manufacturing.

Question 3

What are the disadvantages of Piece Rate?

Answer 3

– Scarp levels may be high, if workers are focused entirely on speed of output

– There is an incentive to provide acceptable quality, but not the best possible quality.

– Workers will work hardest when they want higher earnings (before Christmas & summer), this may not coincide with the seasonal patterns of customers demand

Question 4

What is Performance-related pay (PRP) ?

Answer 4

Performance-related pay (PRP) is a financial reward to staff whose work is considered above average.

Question 5

Disadvantages of PRP ?

Answer 5

– Doesn’t promote team work

– It could create rivalry between managers