Chapter 6 Flashcards
Motivation
Workers want to work hard and effectively for their employer.
Wage
Payment for work, usually paid weekly.
Time rate
Wage based on number of hours worked
Piece rate
Wage based on number of units of output produced.
Salary
Payment for work, usually paid monthly.
Commission
Payment based on number of units sold.
Profit sharing
Payment to employees based on a share of the profits of the business.
Bonus
Additional payment to workers, above the basic wage/salary, as a reward for good work
Performance-related pay
Pay is related to the performance of an employee, e.g. meeting pre-set objectives.
Share ownership scheme
Giving employees shares in a company to encourage a sense of belonging and ownership
Appraisal
Assessing the effectiveness of employees (important for performance-related pay).
Fringe benefits
Non-financial rewards.
Job satisfaction
Enjoyment employees can derive from work if they feel they have done a
good/rewarding job.
Job rotation
Workers are asked to switch different tasks with other workers (but at the same level
of responsibility).
Job enlargement
Tasks of a similar level of difficulty/responsibility are added to a worker’s job description.
