3.6.4 Making human resource decisions: improving motivation and engagement

Question 1

Piece rate pay

Answer 1

A system whereby employees are paid according to the quantity of a product they produce

Question 2

Commission

Answer 2

A method of payment in which the amount paid is related to the value of goods or services that an employee sells

Question 3

Salary schemes

Answer 3

The salary offered to the employees. These may vary as the employee becomes more experienced in their job role

Question 4

Performance related pay

Answer 4

Where some or part of an employees pay is linked to the achievement of targets at work

Question 5

The benefits of motivated and engaged employees?

Answer 5

• Improved labour productivity
• Improved working atmosphere
• Improved quality
• Improved customer service
• Reduced labour turnover and reduced labour absenteeism

Question 6

Non-financial methods of motivation

Answer 6

• Job design
• Appraisal
• Team working

Question 7

Influences on the choice and assessment of the effectiveness of financial and non-financial reward systems

Answer 7

• The costs involved
• The attitude of the management team
• The training given to the management team
• The skill level of the workforce
• The importance of the public’s perception of the business
• The effectiveness of the communication within and outside of the business