financial motivation Flashcards
1
Q
what are financial incentives used for ?
A
used to overcome resistance to change within a business and to also help a firm meet their short-term goals
2
Q
what may be an impact of financial motivation in the future ?
A
staff might sacrifice quality for quantity and any rewards that are based on individual performance can create conflict amongst the staff
3
Q
examples of financial motivation methods :
A
salary, bonuses, commission, piece rate, profit sharing, share ownership, performance related pay
4
Q
benefits of performance-related pay :
A
- helps retain staff
- encourages good performance
- self-financing as higher pay cancelled out by gains in productivity
5
Q
negatives of performance-related pay :
A
- targets might not be challenging enough
- inconsistency
- unfairness amongst staff
- assumes pay to be a significant motivator
