Summary Motivating employees Section 2 Topic 1

Section 2:

Topic 1:
Motivating Employees

, Methods of motivation : Times rates :
Financial and Non-financial awards : Employees get paid for the rate of time they work.
Hourly rate/weekly wage or overtime.
Financial awards : More quality products are produce, less quantity
Wages - products.
Piece rates :
Pays employees for each unit of output they Salary :
produce. Employees are paid a sum for year’s work.
No level of basic pay, or sickness/holiday It does not provide incentive for hard work.
pay.
Used in manufacturing industries Incentive schemes :
= the harder a person works, the more he Bonuses :
gets paid. Additional financial reward.
Disadvantages : Example : piece-rate bonus -
● The person works faster, for more Get paid to produce products above a target
pay, not good quality work. A lump sum paid for effort
● Employees that work hard are not If employees expect bonuses then effort for working
guaranteed to get good pay. will be less.
● Employees resist changes in the
workplace. Commission :
● It only motivates employees with Fee paid because of sale made.
money…