financial rewards

Question 1

define remuneration

Answer 1

every type of financial reward received by someone who works for a company

Question 2

list the types of financial rewards

Answer 2

• bonus
• commissions
• piece rate
• share ownership
• profit share
• performance related pay
• salary
• fringe benefits

Question 3

what are the advantages and disadvantages of fringe benefits

Answer 3

+encourage the right applicants for certain types of vacancies
- might not relate to peoples preferences

Question 4

what are the advantages and disadvantages of salaries

Answer 4

+safer to pay

- doesn’t mean they will work extra and be paid

Question 5

what are the advantages and disadvantages of performance related pay

Answer 5

+ gives incentives to improve efficiency and productivity

- profitability of firm may be out of control of manager

Question 6

what are the advantages and disadvantages of profit share

Answer 6

+ encourages to work towards common goals

- focus of employee maybe profit over quality

Question 7

what are the advantages and disadvantages of share ownership

Answer 7

+ motivate

- effect morale and retention, employee over exposed to shares

Question 8

what are the advantages and disadvantages of piece rate

Answer 8

+ workers work faster to max income

- need great deal of supervision and quality checking

Question 9

what are the advantages and disadvantages of commission

Answer 9

+encourage to make more sales

- miss selling , make people pressure customers

Question 10

what are the advantages and disadvantages of bonuses

Answer 10

+ employee appreciation

- costly, demotivate if someone gets more