6.4b Financial vs Non-Financial Rewards Flashcards Preview

Business Studies AS > 6.4b Financial vs Non-Financial Rewards > Flashcards

Flashcards in 6.4b Financial vs Non-Financial Rewards Deck (20):
1

Ways to improve engagement and motivation

- Good quality environmental conditions
- Appropriate training, development and support
- Good communication

2

Financial incentives examples

- Wages
- Salaries
- Bonus system

3

Non-financial incentives

- Promotion
- Job enrichment
- Job enlargement

4

How does piece rate payment work?

It is based on the number of items produced

5

Advantage of piece rate payment

- Requires low levels of manager supervision
- Encourages high speed production

6

Disadvantages of piece rate payment

- Workers are focused on quantity not quality
- Repetitive

7

Commission definition

Financial incentive linked to achievement of sales

8

Typical set up of commission

- % commission for £value of sale achieved
- Higher rate offered once sales targets are achieved

9

How are wages paid?

By hour with the pay packet received at the end of the week

10

Advantages of performance related pay

- Employees can easily be monitored and assessed
- Targets can be set

11

Disadvantages of performance related pay

- Discourages a team based approach
- Difficult to accurately measure performance
- Incentives may not be enough to motivate employees

12

Profit sharing definition

A system whereby employees receive a proportion of business profits

13

Advantages of profit sharing

- Creates direct link between pay and performance
- Team spirit
- Improve employee's loyalty

14

Share ownership definition

Companies give shares to their employees or sell them at favourable rates below market price

15

Job enlargement definition

Giving workers more tasks to do of a similar nature or complexity

16

Job rotation definition

Systematic programme of switching jobs to provide greater variety

17

Job enrichment definition

Giving workers more interesting and challenging tasks

18

Empowerment definition

Giving employees the means by which they can exercise power over their working lives

19

Advantages of team working

- Productivity
- Flexible workforce
- Improved quality

20

Influences on the choice of rewards

- Organisational design
- Size of business
- PESTLE

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