Chapter 22 (Methods of motivation at work) Flashcards
What is remuneration?
Money paid to employees for their work or services.
What is time rate?
Payment system based on the amount of time employees spend at work.
What is gross pay?
Pay before deductions, such as tax.
What is net pay?
take home pay which is pay after deductions, such as tax, pension.
What is overtime?
Rate of pay above the normal rate to compensate employees for extra hours.
What is the advantage of time rates?
- It can be used when it is difficult to measure the output of the workers
- It can be used if the work involves high skill, care and accurancy
What is the disadvantage of time rates?
Productivity is not rewarded.
What is salary?
Pay, usually to non-manual workers expressed as a yearly figure but paid monthly.
What is piece rates?
Payment system where workers receive an amount of money for each unit produced.
What is the main benefit of piece rates?
It rewards productive workers.
What are problems of piece rates?
- It cannot be used if work cannot be measured
- The quality of output may suffer if people work too fast
- Workers might use dangerous practices trying to work too fast
What is performance-related pay?
payment system designed for non-manual workers where pay increases are given if performances targets are met.
What is PRP designed to?
To reward workers whose output is difficult to measure.
What does appraisal system involve?
- Discuss progress at work
- Access whether targets have been met
- Set new targets for next year
What are some disadvantage of PRP?
- Some workers feel unfair because appraisers may be inconsistent.
- The financial incentives may not be high enough to motivate employees
- Some workers feel that performance targets are too demanding
- Some workers may blame other factors if target are missed
What is bonus system?
Payment in addition to wage for reaching targets or in recognition for service.
What is main advantage of bonus payment?
They are only paid if target are met meaning that money is only paid when it has been earned.
Bonus payment may help to motivate workers.
True
What is commission?
Payment based on the value of sales, usually percentage of sales made.
Chance of promotion at work cannot motivate workes.
False
Why promotions come with higher pay?
To reward employees for taking on additional responsibilities.
How should business recruit staff to use promotion as a means of motivation?
Internal recruitment
What is fringe benefits?
Perks over and above the normal wage of salary.
What are some examples of fringe benefits?
- Free counselling services
- Discounts when buying the employer’s product
- Subsidized meals
-Free or subsidized accommodation - Free private health insurance
- Employee pension contributions
- Company car
- Use of company’s facitilies
What are reasons to provide fringe benefits?
- Cheaper for business to provide fringe benefits rather in cash
- Productivity may improve with less staffs absentee
- Some benefits can attract better qualified workers at work
- May benefits provide protection and security for workers and their families which can improve worker satisfaction
- If some fringe benefits are performance related, it will help to motivate staffs.
Why do business use non-financial factors?
- Some employees are not motivated by money
- Some workers prioritize non-financial rewards
- As people work in teams, individual financial rewards are less appropriate
- Non-financial rewards can act as motivators at work
What are non-financial ways that businesses use to motivate workers?
- Job rotation
- Job enrichment
- Autonomy
What is the benefit of job rotation?
- Employees can avoid feeling bored
- It provide business with more flexibility
What is the disadvantage of job rotation?
- High training cost
- Benefits of specialization are lost
What is job enrichment?
Job enrichment is where employees are given jobs which are more challenging and rewarding.
What are benefits of job enrichment?
- Provide employees with opportunity to develop unused skills
- Help staffs feel valued
What are disadvantages of job enrichment?
Some workers may be displeased as they feel that they are forced to take extra work without resource and training.
What is giving autonomy to employee mean?
Employees are given the authority to make more choices and decisions about the way they work.
What are benefits of autonomy?
- Give workers more control
- Feel more valued
- Boost their self-confidence
- Higher productivity
- May reduce the number of managers and supervisors
What are disadvantages of autonomy?
Some workers may displeased as they don’t receive extra pay for their additional work and some might not be confident taking on more responsibility.
