financial methods of motivations

Question 1

piece rate

Answer 1

pay per number of items produced in a certain period of time

• encourages staff
• but rushes them, therefore, more mistakes, lower quality
• Taylor’s view of workers
• work where output is relatively easy to measure
• repetitive and demotivating

Question 2

commission

Answer 2

• sell as much as they can
• miss-selling
• only focused on one task

Question 3

performance-related pay

Answer 3

• employees focused on business objectives
• some feel unfair or biased
• feel more valued
• incentives not large enough to motivate employees

Question 4

profit sharing

Answer 4

staff goals

- staff argue as some don’t put in as much effort

Question 5

bonus

Answer 5

• extra thank you

- need to rush to bonus