Improving Motivation Flashcards
What are 4 methods that can be used to reward and motivate?
Piece rate
Salary Schemes
Commission
Performance-related pay
What is piece rate?
Workers are paid per unit produced. No fixed salary
What are salary schemes?
Workers paid according to a given time period
What is commission?
Workers paid a bonus on top of their salary.
What is performance-related pay?
Workers are paid based on their performance or performance of the business
When is piece rate used?
When the quantity produced can be measured easily
What is an advantage of piece rate?
Can motivate employees to produce more
What is 2 disadvantages of piece rate?
Quality and morale can decrease
Where is piece rate often used for?
Production/assembly line workers
What must employees do for salary schemes?
Employees must work a minimum number of hours and produce a certain amount of work
What is the downside to salary schemes?
Can’t earn money by working harder or producing better quality work
When is commission often used?
In sales roles
What can commission do to employees?
Motivate them and increase the productivity.
What is a disadvantage of commission for the business?
Could lead to overselling and business doesn’t know how much its labour costs are a month.
How can performance-related pat be used?
To reward your best workers
