Chapter 22 (Methods of motivation at work)

Question 1

What is remuneration?

Answer 1

Money paid to employees for their work or services.

Question 2

What is time rate?

Answer 2

Payment system based on the amount of time employees spend at work.

Question 3

What is gross pay?

Answer 3

Pay before deductions, such as tax.

Question 4

What is net pay?

Answer 4

take home pay which is pay after deductions, such as tax, pension.

Question 5

What is overtime?

Answer 5

Rate of pay above the normal rate to compensate employees for extra hours.

Question 6

What is the advantage of time rates?

Answer 6

• It can be used when it is difficult to measure the output of the workers
• It can be used if the work involves high skill, care and accurancy

Question 7

What is the disadvantage of time rates?

Answer 7

Productivity is not rewarded.

Question 8

What is salary?

Answer 8

Pay, usually to non-manual workers expressed as a yearly figure but paid monthly.

Question 9

What is piece rates?

Answer 9

Payment system where workers receive an amount of money for each unit produced.

Question 10

What is the main benefit of piece rates?

Answer 10

It rewards productive workers.

Question 11

What are problems of piece rates?

Answer 11

• It cannot be used if work cannot be measured
• The quality of output may suffer if people work too fast
• Workers might use dangerous practices trying to work too fast

Question 12

What is performance-related pay?

Answer 12

payment system designed for non-manual workers where pay increases are given if performances targets are met.

Question 13

What is PRP designed to?

Answer 13

To reward workers whose output is difficult to measure.

Question 14

What does appraisal system involve?

Answer 14

• Discuss progress at work
• Access whether targets have been met
• Set new targets for next year

Question 15

What are some disadvantage of PRP?

Answer 15

• Some workers feel unfair because appraisers may be inconsistent.
• The financial incentives may not be high enough to motivate employees
• Some workers feel that performance targets are too demanding
• Some workers may blame other factors if target are missed

Question 16

What is bonus system?

Answer 16

Payment in addition to wage for reaching targets or in recognition for service.

Question 17

What is main advantage of bonus payment?

Answer 17

They are only paid if target are met meaning that money is only paid when it has been earned.

Question 18

Bonus payment may help to motivate workers.

Answer 18

True

Question 19

What is commission?

Answer 19

Payment based on the value of sales, usually percentage of sales made.

Question 20

Chance of promotion at work cannot motivate workes.

Answer 20

False

Question 21

Why promotions come with higher pay?

Answer 21

To reward employees for taking on additional responsibilities.

Question 22

How should business recruit staff to use promotion as a means of motivation?

Answer 22

Internal recruitment

Question 23

What is fringe benefits?

Answer 23

Perks over and above the normal wage of salary.

Question 24

What are some examples of fringe benefits?

Answer 24

• Free counselling services
• Discounts when buying the employer’s product
• Subsidized meals
  -Free or subsidized accommodation
• Free private health insurance
• Employee pension contributions
• Company car
• Use of company’s facitilies

Question 25

What are reasons to provide fringe benefits?

Answer 25

- Cheaper for business to provide fringe benefits rather in cash - Productivity may improve with less staffs absentee - Some benefits can attract better qualified workers at work - May benefits provide protection and security for workers and their families which can improve worker satisfaction - If some fringe benefits are performance related, it will help to motivate staffs.

Question 26

Why do business use non-financial factors?

Answer 26

- Some employees are not motivated by money - Some workers prioritize non-financial rewards - As people work in teams, individual financial rewards are less appropriate - Non-financial rewards can act as motivators at work

Question 27

What are non-financial ways that businesses use to motivate workers?

Answer 27

- Job rotation - Job enrichment - Autonomy

Question 28

What is the benefit of job rotation?

Answer 28

- Employees can avoid feeling bored - It provide business with more flexibility

Question 29

What is the disadvantage of job rotation?

Answer 29

- High training cost - Benefits of specialization are lost

Question 30

What is job enrichment?

Answer 30

Job enrichment is where employees are given jobs which are more challenging and rewarding.

Question 31

What are benefits of job enrichment?

Answer 31

- Provide employees with opportunity to develop unused skills - Help staffs feel valued

Question 32

What are disadvantages of job enrichment?

Answer 32

Some workers may be displeased as they feel that they are forced to take extra work without resource and training.

Question 33

What is giving autonomy to employee mean?

Answer 33

Employees are given the authority to make more choices and decisions about the way they work.

Question 34

What are benefits of autonomy?

Answer 34

- Give workers more control - Feel more valued - Boost their self-confidence - Higher productivity - May reduce the number of managers and supervisors

Question 35

What are disadvantages of autonomy?

Answer 35

Some workers may displeased as they don't receive extra pay for their additional work and some might not be confident taking on more responsibility.