Chap 11- motivation Flashcards
what is time based wage rate?
payment made to worker for each period of time worked, eg. one hour.
advantages of time based wage rate?
- easy to calculate
- worker knows exactly what they will be paid for.
disadvantages of time rate?
- will take time to calculate wages.
- might have to employ wage clerks
- good and bad workers get paid same
- clocking in system
- more supervisers
what is piece rate?
payment made to worker for each unit produced.
advantages of piece rate?
- work faster, more output
- helps n costing. labour cost for each unit is set in advance and this helps to set a price for product.
disadvantages of piece rate?
- wont focus on quality. might damage reputation
- quality control and standardisation needed.
- good workers wont earn as much as bad workers
- if machine breaks down, goods wont be produced but workers will still gave to be paid.
what is salary?
annual income usually paid on a monthly basis.
advantages of salary?
- security of income
- helps in costing
- status
- suitable for jobs where output is measurable
- suitable for management positions where staff is expected to stay overtime.
disadvantages of salary?
- income is not related to effort levels or productivity.
- employee might get complacent.
- appraisal will be needed regularly to see if salary should be increased.
what is commission?
payment made to salesperson for each sale made.
what is bonus?
a payment made in addition to actual wage/salary.
what is performance related pay?
a bonus scheme to reward staff for above average work performance.
why is it important to have a motivated workforce?
- productivity
- low labour turnover
- less absenteeism
- prepared to take responsibility
- suggestions for improvement
benefits of job enrichment?
- motivation
- training
- decision making and responsibility
what are the three key features of job enrichment?
- complete units of work so that the contribution of each worker can be identified.
- direct feedback on performance so workers can be aware of their progress.
- challenging new tasks, training and new skills. a form of gaining status and recognition.
what are fringe benefits?
benefits given to workers apart from pay, eg. company cars, free insurance etc.
what are the advantages of performance related pay?
1-motivated staff
2-target setting helps give direction
3-appraisal gives feedback and opportunity to workers to improve.
what are the disadvatages of performance related pay?
1- if workers dont need financial rewards it might fail to motivate them
2- team spirit can be damaged
3- claims of manager favouritism can ruin reationships
what is profit sharing?
a bonus for workers based on the profits of the business. usually paid as proportion fo basic salary.
what are the advantages of profit sharing?
- motivation
- increase in overall profitability
- team spirit, less behes, more focus on profits
- accept cost reduction measures
what are the disadvantages of proft sharing?
- isnt related to individual effort. why bother if all are getting share?
- unlikely to motivate as small profit share is paid at end of year.
- reduce retained profits.
- costly to set up.
what are non financial rewards of motivation?
- job rotation
- job enlargement
- job enrichment
- job redesign
- team work
- training
- delegation
- quality circles
what is job rotation?
increasing the flexibility of employees by switching them from one job to another.
what is job enlargement?
increasing the scope of a job by increasing the tasks and responsibilities.
what is job redesign?
involves the restructuring of a job, usually with worker’s agreement, to make it more rewarding, challenging etc.
what are quality circles?
voluntary groups of workers who meet regularly to discuss work related problems and issues.
what is worker participation?
when workers are encouraged to be involved in decision making.
what is team working?
working in groups
benefits of team working?
- motivated as social needs will be fulfilled
- more productivity, less labour turnover
- better solutions to problems
- less managers needed
disadvantages of team working?
- not the best for introverts
- conflicts
- need for training
