MOTIVATION - FINANCIAL Flashcards
what is piece work? and the advantages and disadvantages
Paid per unit produced
+ Incentive to be productive
+ Can create flexibility around when work is down
- Mistakes, quality issues
- Must not fall below minimum wage
what is commission? and the advantages and disadvantages
- Money earned on top of basic salary
- Paid based on achieving sales target
+ Incentivises staff, sees pay link to performance
- Income isn’t consistent, pressure selling
- Focus taken away from areas such as customer service
what is a bonus? and the advantages and disadvantages
paid for meeting targets, quality performance
+ Incentive to produce over a period of time
-Scale of bonus can negatively impact behaviour
what is profit share? and the advantages and disadvantages
Paid annual dividend based on businesses level of profit
+ Encourages team work and efficiently, creates loyalty
- Long term; does it create high enough incentive? Depends on profitability of business
what is performance related pay? and the advantages and disadvantages
Reward for job-related targets; if staffs work is above average
+ Reward for good performance
+ Encourages review of employee performance
- Inconsistency of awards, scope to be subjective
- Can be demotivating
- Can be expensive
