human resources - strategies

Question 1

financial reward

Answer 1

• Commission – sales jobs e.g. car sales
• Overtime (on an hourly/weekly wage) & Bonuses (on a salaried wage – could be for loyalty)
• Piece rate – paid by results e.g. per garment knitted (Taylor’s Scientific approach)
• Fees – one off payment for work completed, for example editing a book
• BUT costs, require monitoring

Question 2

employee share ownership

Answer 2

• Gives employees a stake in the business by allowing them to purchase shares
• This links their performance to the financial gain of share ownership
• Encourages long term service and motivation to support the business
• BUT only useful if business issues shares

Question 3

consultation strategies

Answer 3

• E.g. quality circles, working groups
• Employees are motivated by being consulted (asked for their opinion) on matters relating to work, e.g. pay, conditions, business decisions
• Engagement reduces turnover / absenteeism through involvement
• BUT time consuming, subjective

Question 4

empowerment strategies

Answer 4

• Giving power/authority to people (increasing trust)
  Herzberg’s two factor theory – develop the motivators
• Examples:
  Training staff
  Delegation of responsibility
  Flexible working
  Feedback / Effective communication
• Increases employee sense of worth BUT cost, requires skill / balance to get right