motivation: financial

Question 1

profit share

Answer 1

employees paid annual dividend based on profit levels
encourages teamwork
could make staff competitive
employees keep costs low to maximize profit
employees become loyal to firm
incentive to sell

Question 2

performance related pay

Answer 2

in banking and public sector
line manager sits with employees and sets goals
further appraisal depends how well employee has done e.g 10% bonus pay
could cause jealousy

Question 3

delegation

Answer 3

allocating tasks to employees
gives managers empowerment
managers can delegate with overload
employees may see it as extra work

Question 4

commission

Answer 4

salesperson paid commission+basic salary
%of unit price or per unit sold
employer not paying for down time
OTE (opportunity to earn)
motivates selling
risky in recession
unstable
selling rather than meeting customer needs
could pressure or oversell

Question 5

bonus

Answer 5

lump sum paid on top of salary
for meeting sales targets
meeting output, quality targets
christmas bonus